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Income Taxes (Tables) | 12 Months Ended
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Sep. 26, 2020
Income Tax Disclosure [Abstract] |
Provision for Income Taxes | The provision for income taxes for 2020, 2019 and 2018, consisted of the following (in millions):
| 2020 |  | 2019 |  | 2018
Federal: |  |  |  |  |
Current | $ | 6,306 |  |  | $ | 6,384 |  |  | $ | 41,425 |
Deferred | (3,619) |  |  | (2,939) |  |  | (33,819) |
Total | 2,687 |  |  | 3,445 |  |  | 7,606 |
State: |  |  |  |  |
Current | 455 |  |  | 475 |  |  | 551 |
Deferred | 21 |  |  | (67) |  |  | 48 |
Total | 476 |  |  | 408 |  |  | 599 |
Foreign: |  |  |  |  |
Current | 3,134 |  |  | 3,962 |  |  | 3,986 |
Deferred | 3,383 |  |  | 2,666 |  |  | 1,181 |
Total | 6,517 |  |  | 6,628 |  |  | 5,167 |
Provision for income taxes | $ | 9,680 |  |  | $ | 10,481 |  |  | $ | 13,372 |
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 2020 and 2019; 24.5% in 2018) to income before provision for income taxes for 2020, 2019 and 2018, is as follows (dollars in millions):
| 2020 |  | 2019 |  | 2018
Computed expected tax | $ | 14,089 |  |  | $ | 13,805 |  |  | $ | 17,890 |
State taxes, net of federal effect | 423 |  |  | 423 |  |  | 271 |
Impacts of the Act | (582) |  |  | — |  |  | 1,515 |
Earnings of foreign subsidiaries | (2,534) |  |  | (2,625) |  |  | (5,606) |
Research and development credit, net | (728) |  |  | (548) |  |  | (560) |
Excess tax benefits from equity awards | (930) |  |  | (639) |  |  | (675) |
Other | (58) |  |  | 65 |  |  | 537 |
Provision for income taxes | $ | 9,680 |  |  | $ | 10,481 |  |  | $ | 13,372 |
Effective tax rate | 14.4 | % |  | 15.9 | % |  | 18.3 | %
Significant Components of Deferred Tax Assets and Liabilities | As of September 26, 2020 and September 28, 2019, the significant components of the Company’s deferred tax assets and liabilities were (in millions):
| 2020 |  | 2019
Deferred tax assets: |  |  |
Amortization and depreciation | $ | 8,317 |  |  | $ | 11,645 |
Accrued liabilities and other reserves | 4,934 |  |  | 5,196 |
Lease liabilities | 2,038 |  |  | — |
Deferred revenue | 1,638 |  |  | 1,372 |
Other | 2,409 |  |  | 2,174 |
Total deferred tax assets | 19,336 |  |  | 20,387 |
Less: Valuation allowance | (1,041) |  |  | (747) |
Total deferred tax assets, net | 18,295 |  |  | 19,640 |
Deferred tax liabilities: |  |  |
Minimum tax on foreign earnings | 7,045 |  |  | 10,809 |
Right-of-use assets | 1,862 |  |  | — |
Unrealized gains | 526 |  |  | 186 |
Other | 705 |  |  | 600 |
Total deferred tax liabilities | 10,138 |  |  | 11,595 |
Net deferred tax assets | $ | 8,157 |  |  | $ | 8,045 |
Aggregate Changes in Gross Unrecognized Tax Benefits | The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for 2020, 2019 and 2018, is as follows (in millions):
| 2020 |  | 2019 |  | 2018
Beginning balances | $ | 15,619 |  |  | $ | 9,694 |  |  | $ | 8,407 |
Increases related to tax positions taken during a prior year | 454 |  |  | 5,845 |  |  | 2,431 |
Decreases related to tax positions taken during a prior year | (791) |  |  | (686) |  |  | (2,212) |
Increases related to tax positions taken during the current year | 1,347 |  |  | 1,697 |  |  | 1,824 |
Decreases related to settlements with taxing authorities | (85) |  |  | (852) |  |  | (756) |
Decreases related to expiration of the statute of limitations | (69) |  |  | (79) |  |  | — |
Ending balances | $ | 16,475 |  |  | $ | 15,619 |  |  | $ | 9,694 |

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