Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 28, 2024
Income Tax Disclosure [Abstract]  
Schedule of Loss before Income Tax
Income before income taxes consists of the following:
Year Ended
December 28, 2024 December 30, 2023 December 31, 2022
  (In millions)
U.S. $ 2,369  $ 454  $ 2,093 
Non-U.S. (347) 54  (895)
Total pre-tax income including equity income in investee $ 2,022  $ 508  $ 1,198 
Provision (Benefit) for Income Taxes
The income tax provision (benefit) consists of:
Year Ended
December 28, 2024 December 30, 2023 December 31, 2022
  (In millions)
Current:
U.S. federal $ 1,338  $ 496  $ 1,191 
U.S. state and local 64  27  31 
Non-U.S. 142  150  161 
Total 1,544  673  1,383 
Deferred:
U.S. federal (311) (860) (1,365)
U.S. state and local 6  (29) (26)
Non-U.S. (858) (130) (114)
Total (1,163) (1,019) (1,505)
Income tax provision (benefit) $ 381  $ (346) $ (122)
Schedule of Effective Income Tax Rate Reconciliation
The table below displays the reconciliation between statutory federal income taxes and the total income tax provision (benefit).
Year Ended
December 28, 2024 December 30, 2023 December 31, 2022
  (In millions)
Statutory federal income tax expense at 21% $ 425  $ 107  $ 252 
Tax effect from intercompany integration transaction 373  —  — 
Foreign rate detriment (benefit)
 153  (11) 195 
Interest and penalty
 136  53  33 
State income taxes, net of federal benefit
 22  (2) (3)
Foreign-Derived Intangible Income (FDII) deduction (275) (185) (261)
Research credits (232) (169) (241)
GILTI and other foreign inclusion (133) (138) (96)
Stock-based and non-deductible compensation (101) (17) (6)
Other 13  16  5 
Income tax provision (benefit) $ 381  $ (346) $ (122)
Schedule of Deferred Tax Assets and Liabilities
Deferred income taxes reflect the net tax effects of tax carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the balances for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 28, 2024 and December 30, 2023 were as follows:
December 28,
2024		 December 30,
2023
  (In millions)
Deferred tax assets:
Capitalized R&D $ 2,892  $ 1,753 
Net operating loss carryovers 962  992 
Accruals and reserves not currently deductible 829  574 
Federal and state tax credit carryovers 679  660 
Foreign R&D and investment tax credits 579  597 
Employee benefits not currently deductible 334  302 
Lease liability 182  181 
Foreign tax credits
 77  71 
Other 111  96 
Total deferred tax assets 6,645  5,226 
Less: valuation allowance (2,136) (2,124)
Total deferred tax assets, net of valuation allowance 4,509  3,102 
Deferred tax liabilities:
Acquired intangibles (3,614) (3,104)
GILTI (222) (524)
Right-of-use assets (182) (175)
Other (152) (135)
Total deferred tax liabilities (4,170) (3,938)
Net deferred tax assets (liabilities) $ 339  $ (836)

During 2024, the Company executed an intercompany integration transaction and remeasured associated deferred taxes, resulting in increases to the deferred tax liability for acquisition-related intangibles and the deferred tax asset for Capitalized R&D, partially offset by a decrease in the deferred tax liability for GILTI.
The movement in the deferred tax valuation allowance was as follows:
December 28, 2024 December 30, 2023 December 31, 2022
  (In millions)
Balance at beginning of year $ 2,124  $ 2,078  $ 1,735 
Charges to income tax expense and other accounts
 9  41  112 
Acquisition-related 3  5  231 
Balance at end of year $ 2,136  $ 2,124  $ 2,078 
Schedule of Unrecognized Tax Benefits Roll Forward reconciliation of the Company's gross unrecognized tax benefits was as follows:
December 28, 2024 December 30, 2023 December 31, 2022
  (In millions)
Balance at beginning of year $ 1,463  $ 1,361  $ 275 
Increases for tax positions taken in the current year 57  53  748 
Increases for tax positions taken in prior years 24  57  104 
Decreases for tax positions taken in prior years (18) (8) (12)
Increases to tax positions taken in prior years through acquisitions —  —  252 
Decreases for settlements with taxing authorities and statute of limitation lapses (28) —  (6)
Balance at end of year $ 1,498  $ 1,463  $ 1,361