Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | ||
|---|---|---|---|
Apr. 01, 2023 |
Mar. 26, 2022 |
Dec. 31, 2022 |
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| Income Tax Disclosure [Abstract] | |||
| Income tax provision | $ 13 | $ 113 | |
| Effective tax rate | (10.30%) | 12.60% | |
| Income Taxes | Income Taxes The Company recorded an income tax provision of $13 million and $113 million for the three months ended April 1, 2023, and March 26, 2022, respectively, representing effective tax rates of (10.3)% and 12.6%, 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 April 1, 2023 and March 26, 2022, was primarily due to a higher mix of income taxed in lower tax rate jurisdictions, research credits and the beneficial rate impact from the foreign-derived intangible income (FDII) tax benefit.
The lower tax provision for the three months ended April 1, 2023 was primarily due to the year-to-date pre-tax loss, which was more than offset by the impact of discrete interest and penalties on liabilities for uncertain tax positions.
The determination of the Company’s income taxes for the three months ended April 1, 2023 was based on applying the Company’s estimated annual effective tax rate to the year-to-date pre-tax book income adjusted for discrete tax items, such as excess tax benefits from stock-based compensation.
As of April 1, 2023, the Company continues to maintain valuation allowances 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 allowances maintained are due to a lack of sufficient sources of taxable income. As of April 1, 2023 and December 31, 2022, the Company had long-term income tax liabilities of $1.3 billion recorded under Other long-term liabilities in the balance sheet.
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| Deferred tax liabiilty | $ 1,641 | $ 1,934 | |
| Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
| Accrued Income Taxes, Noncurrent | $ 1,300 | ||
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- Definition Carrying amount as of the balance sheet date of the unpaid sum of the known and estimated amounts payable to satisfy all domestic and foreign income tax obligations due beyond one year or the operating cycle, whichever is longer. Alternate captions include income taxes payable, noncurrent. Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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- Definition Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences with jurisdictional netting. Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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- Definition Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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- Definition Percentage of domestic federal statutory tax rate applicable to pretax income (loss). Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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- References No definition available.
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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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- Definition Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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