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Income Taxes (Tables) | 12 Months Ended
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Sep. 28, 2019
Income Tax Disclosure [Abstract] |
Provision for Income Taxes | The provision for income taxes for 2019, 2018 and 2017, consisted of the following (in millions):
| 2019 |  | 2018 |  | 2017
Federal: |  |  |  |  |
Current | $ | 6,384 |  |  | $ | 41,425 |  |  | $ | 7,842 |
Deferred | (2,939 | ) |  | (33,819 | ) |  | 5,980 |
Total | 3,445 |  |  | 7,606 |  |  | 13,822 |
State: |  |  |  |  |
Current | 475 |  |  | 551 |  |  | 259 |
Deferred | (67 | ) |  | 48 |  |  | 2 |
Total | 408 |  |  | 599 |  |  | 261 |
Foreign: |  |  |  |  |
Current | 3,962 |  |  | 3,986 |  |  | 1,671 |
Deferred | 2,666 |  |  | 1,181 |  |  | (16 | )
Total | 6,628 |  |  | 5,167 |  |  | 1,655 |
Provision for income taxes | $ | 10,481 |  |  | $ | 13,372 |  |  | $ | 15,738 |
Reconciliation of Provision for Income Taxes | A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (21% in 2019; 24.5% in 2018; 35% in 2017) to income before provision for income taxes for 2019, 2018 and 2017, is as follows (dollars in millions):
| 2019 |  | 2018 |  | 2017
Computed expected tax | $ | 13,805 |  |  | $ | 17,890 |  |  | $ | 22,431 |
State taxes, net of federal effect | 423 |  |  | 271 |  |  | 185 |
Impacts of the Act | — |  |  | 1,515 |  |  | — |
Earnings of foreign subsidiaries | (2,625 | ) |  | (5,606 | ) |  | (6,135 | )
Research and development credit, net | (548 | ) |  | (560 | ) |  | (678 | )
Excess tax benefits from equity awards | (639 | ) |  | (675 | ) |  | — |
Other | 65 |  |  | 537 |  |  | (65 | )
Provision for income taxes | $ | 10,481 |  |  | $ | 13,372 |  |  | $ | 15,738 |
Effective tax rate | 15.9 | % |  | 18.3 | % |  | 24.6 | %
Significant Components of Deferred Tax Assets and Liabilities | As of September 28, 2019 and September 29, 2018, the significant components of the Company’s deferred tax assets and liabilities were (in millions):
| 2019 |  | 2018
Deferred tax assets: |  |  |
Amortization and depreciation | $ | 11,433 |  |  | $ | 137 |
Accrued liabilities and other reserves | 5,389 |  |  | 3,151 |
Deferred revenue | 1,372 |  |  | 1,141 |
Share-based compensation | 749 |  |  | 513 |
Unrealized losses | — |  |  | 871 |
Other | 697 |  |  | 797 |
Total deferred tax assets, net | 19,640 |  |  | 6,610 |
Deferred tax liabilities: |  |  |
Minimum tax on foreign earnings | 10,809 |  |  | — |
Earnings of foreign subsidiaries | 330 |  |  | 275 |
Other | 456 |  |  | 501 |
Total deferred tax liabilities | 11,595 |  |  | 776 |
Net deferred tax assets/(liabilities) | $ | 8,045 |  |  | $ | 5,834 |
Aggregate Changes in Gross Unrecognized Tax Benefits, Excluding Interest and Penalties | The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for 2019, 2018 and 2017, is as follows (in millions):
| 2019 |  | 2018 |  | 2017
Beginning balances | $ | 9,694 |  |  | $ | 8,407 |  |  | $ | 7,724 |
Increases related to tax positions taken during a prior year | 5,845 |  |  | 2,431 |  |  | 333 |
Decreases related to tax positions taken during a prior year | (686 | ) |  | (2,212 | ) |  | (952 | )
Increases related to tax positions taken during the current year | 1,697 |  |  | 1,824 |  |  | 1,880 |
Decreases related to settlements with taxing authorities | (852 | ) |  | (756 | ) |  | (539 | )
Decreases related to expiration of the statute of limitations | (79 | ) |  | — |  |  | (39 | )
Ending balances | $ | 15,619 |  |  | $ | 9,694 |  |  | $ | 8,407 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 + Details
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