v3.22.2
Income Taxes (Details) - USD ($)
$ in Millions |
3 Months Ended |
6 Months Ended |
|
|
|
|
|
|
|
|
| Income Tax Disclosure [Abstract] |
|
|
|
|
|
|
| Income tax provision |
$ 54
|
$ 113
|
$ 167
|
$ 202
|
|
|
| Effective tax rate |
10.80%
|
13.70%
|
11.90%
|
13.80%
|
|
|
| Deferred Tax Liabilities, Net |
$ 4,300
|
|
$ 4,300
|
|
|
|
| Income Taxes |
|
|
Income TaxesThe Company recorded an income tax provision of $54 million and $167 million for the three and six months ended June 25, 2022, representing effective tax rates of 10.8% and 11.9%, respectively. The Company recorded an income tax provision of $113 million and $202 million for the three and six months ended June 26, 2021, respectively, representing effective tax rates of 13.7% 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 and six months ended June 25, 2022 was primarily due to U.S. reduced tax on foreign-derived intangible income benefit (FDII) and research credits. The difference between the U.S. federal statutory tax rate of 21% and the Company's effective tax rate for the three and six months ended June 26, 2021 was primarily due to U.S. reduced tax on FDII and research credits. As of June 25, 2022, 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 the six months ended June 25, 2022, the liability for uncertain tax positions increased by $361 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 Xilinx 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.
|
|
|
|
| Deferred tax liabiilty |
2,805
|
|
$ 2,805
|
|
|
$ 12
|
| Taxes Payable |
|
|
|
|
$ 147
|
|
| Unrecognized Tax Benefits that Would Impact Effective Tax Rate |
|
|
|
|
204
|
|
| Unrecognized Tax Benefits, Period Increase (Decrease) |
$ 361
|
|
|
|
|
|
| Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Noncurrent |
|
|
|
|
$ 321
|
|
| Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent |
21.00%
|
21.00%
|
|
|
|
|
| X |
- DefinitionAmount, after deferred tax asset, of deferred tax liability attributable to taxable differences without jurisdictional netting.
| Name: |
us-gaap_DeferredTaxLiabilities |
| Namespace Prefix: |
us-gaap_ |
| Data Type: |
xbrli:monetaryItemType |
| Balance Type: |
credit |
| Period Type: |
instant |
|
| X |
- DefinitionThe 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.
| Name: |
us-gaap_IncomeTaxDisclosureTextBlock |
| Namespace Prefix: |
us-gaap_ |
| Data Type: |
dtr-types:textBlockItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAmount of tax liability from transition tax on accumulated earnings of controlled foreign corporation deemed repatriated pursuant to Tax Cuts and Jobs Act, classified as noncurrent.
| Name: |
us-gaap_TaxCutsAndJobsActOf2017TransitionTaxForAccumulatedForeignEarningsLiabilityNoncurrent |
| Namespace Prefix: |
us-gaap_ |
| Data Type: |
xbrli:monetaryItemType |
| Balance Type: |
credit |
| Period Type: |
instant |
|
| X |
- DefinitionCarrying value as of the balance sheet date of obligations incurred and payable for statutory income, sales, use, payroll, excise, real, property and other taxes.
| Name: |
us-gaap_TaxesPayableCurrentAndNoncurrent |
| Namespace Prefix: |
us-gaap_ |
| Data Type: |
xbrli:monetaryItemType |
| Balance Type: |
credit |
| Period Type: |
instant |
|
| X |
- DefinitionAmount of increase (decrease) in unrecognized tax benefits attributable to uncertain tax positions taken in tax returns.
| Name: |
us-gaap_UnrecognizedTaxBenefitsPeriodIncreaseDecrease |
| Namespace Prefix: |
us-gaap_ |
| Data Type: |
xbrli:monetaryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate.
| Name: |
us-gaap_UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate |
| Namespace Prefix: |
us-gaap_ |
| Data Type: |
xbrli:monetaryItemType |
| Balance Type: |
credit |
| Period Type: |
instant |
|
|
