Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 26, 2022 |
Mar. 27, 2021 |
Dec. 31, 2022 |
Feb. 14, 2022 |
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| Income Tax Disclosure [Abstract] | ||||
| Income tax provision | $ 113 | $ 89 | ||
| Effective tax rate | 12.60% | 13.80% | ||
| Deferred Tax Liabilities, Net | $ 4,300 | |||
| Income Taxes | Income Taxes The Company recorded an income tax provision of $113 million and $89 million for the three months ended March 26, 2022 and March 27, 2021, representing effective tax rates of 12.6% and 13.8%, respectively.
The difference between the U.S. federal statutory tax rate of 21% and the Company's effective tax rate for the three months ended March 26, 2022 was primarily due to the geographic mix of income taxed in lower tax rate jurisdictions, research credits and the beneficial rate impact from the foreign-derived intangible income tax benefit (FDII), which was partially offset by the U.S. tax on GILTI.
The difference between the U.S. federal statutory tax rate of 21% and the Company's effective tax rate for the three months ended March 27, 2021 was primarily due to the excess tax benefits with respect to stock-based compensation and the beneficial rate impact from the FDII tax benefit.
As of March 26, 2022, the Company continues to maintain a valuation allowance for certain federal, state, and foreign tax attributes. The federal valuation allowance maintained is due to limitations under Internal Revenue Code Section 382 or 383, separate return loss year rules, or dual consolidated loss rules. Certain state and foreign valuation allowance maintained is due to a lack of sufficient sources of taxable income.
During the quarter ended March 26, 2022, the liability for uncertain tax positions increased by $212 million primarily due to the utilization of certain tax attributes that may be subject to additional limitation. As a result of the acquisition of Xilinx, the Company recorded $4.3 billion of net deferred tax liabilities primarily on the excess of book basis over the tax basis of the acquired intangible assets, including $863 million of GILTI net deferred tax liability. The Company also recorded $147 million of current tax payable as of the Acquisition Date. Additionally, the Company assumed $204 million of liability for uncertain tax positions and $321 million of long-term liability for transition-tax, which is payable over the next three years.
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| Deferred tax liabiilty | $ 3,109 | $ 12 | ||
| Taxes Payable | $ 147 | |||
| Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 204 | |||
| Unrecognized Tax Benefits, Period Increase (Decrease) | $ 212 | |||
| Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Noncurrent | $ 321 | |||