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Income Taxes (Tables) | 12 Months Ended
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Nov. 27, 2020
Income Tax Disclosure [Abstract] |
Income before income taxes, domestic and foreign | Income before income taxes for fiscal 2020, 2019 and 2018 consisted of the following:
(in millions) |  | 2020 |  | 2019 |  | 2018
Domestic |  | $ | 1,090 |  |  | $ | 438 |  |  | $ | 543 |
Foreign |  | 3,086 |  |  | 2,767 |  |  | 2,251 |
Income before income taxes |  | $ | 4,176 |  |  | $ | 3,205 |  |  | $ | 2,794 |
Provision for (benefit from) income taxes, current and deferred | The provision for (benefit from) income taxes for fiscal 2020, 2019 and 2018 consisted of the following:
(in millions) |  | 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |  |
United States federal |  | $ | 119 |  |  | $ | 7 |  |  | $ | 501 |
Foreign |  | 222 |  |  | 211 |  |  | 140 |
State and local |  | 79 |  |  | 31 |  |  | 29 |
Total current |  | 420 |  |  | 249 |  |  | 670 |
Deferred: |  |  |  |  |  |
United States federal |  | (123) |  |  | 23 |  |  | (466) |
Foreign |  | (1,313) |  |  | (12) |  |  | (10) |
State and local |  | (68) |  |  | (6) |  |  | 9 |
Total deferred |  | (1,504) |  |  | 5 |  |  | (467) |
Provision for (benefit from) income taxes |  | $ | (1,084) |  |  | $ | 254 |  |  | $ | 203 |
Reconciliation of provision for income taxes | Total income tax expense differs from the expected tax expense, computed by multiplying the U.S. federal statutory rate of 21% in both fiscal 2020 and 2019 and 22.2% in fiscal 2018 by income before income taxes, as a result of the following:
(in millions) |  | 2020 |  | 2019 |  | 2018
Computed “expected” tax expense |  | $ | 877 |  |  | $ | 673 |  |  | $ | 620 |
State tax expense, net of federal benefit |  | 10 |  |  | 24 |  |  | 25 |
Impacts of intra-entity IP transfers |  | (1,360) |  |  | — |  |  | — |
Tax credits |  | (101) |  |  | (100) |  |  | (111) |
Effects of non-U.S. operations |  | (337) |  |  | (224) |  |  | (384) |
Stock-based compensation, net of tax deduction |  | (154) |  |  | (86) |  |  | (95) |
Resolution of income tax examinations |  | (23) |  |  | (39) |  |  | (42) |
Impacts of the U.S. Tax Act |  | — |  |  | 3 |  |  | 186 |
Other |  | 4 |  |  | 3 |  |  | 4 |
Provision for (benefit from) income taxes |  | $ | (1,084) |  |  | $ | 254 |  |  | $ | 203 |
Deferred tax assets and liabilities | The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of November 27, 2020 and November 29, 2019 are presented below:
(in millions) |  | 2020 |  | 2019
Deferred tax assets: |  |  |  |
Intangible assets |  | $ | 1,368 |  |  | $ | 5 |
Reserves and accruals |  | 71 |  |  | 54 |
Stock-based compensation |  | 92 |  |  | 107 |
Net operating loss carryforwards of acquired companies |  | 54 |  |  | 137 |
Credit carryforwards |  | 218 |  |  | 252 |
Capitalized expenses |  | 292 |  |  | 45 |
Benefits relating to tax positions |  | 44 |  |  | 47 |
Operating lease liabilities |  | 131 |  |  | — |
Other |  | 37 |  |  | 45 |
Total gross deferred tax assets |  | 2,307 |  |  | 692 |
Valuation allowance |  | (276) |  |  | (245) |
Total deferred tax assets |  | 2,031 |  |  | 447 |
Deferred tax liabilities: |  |  |  |
Depreciation and amortization |  | 52 |  |  | 36 |
Undistributed earnings of foreign subsidiaries |  | 51 |  |  | 52 |
Prepaid expenses |  | 107 |  |  | 86 |
Acquired intangible assets |  | 330 |  |  | 413 |
Operating lease right-of-use assets |  | 131 |  |  | — |
Total deferred tax liabilities |  | 671 |  |  | 587 |
Net deferred tax assets (liabilities) |  | $ | 1,360 |  |  | $ | (140) |
Gross amount of unrecognized tax benefits | During fiscal 2020 and 2019, our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows:
(in millions) |  | 2020 |  | 2019
Beginning balance |  | $ | 173 |  |  | $ | 196 |
Gross increases in unrecognized tax benefits – prior year tax positions |  | 14 |  |  | 15 |
Gross decreases in unrecognized tax benefits – prior year tax positions |  | — |  |  | (2) |
Gross increases in unrecognized tax benefits – current year tax positions |  | 44 |  |  | 18 |
Gross decreases in unrecognized tax benefits – current year tax positions |  | — |  |  | (3) |
Settlements with taxing authorities |  | (11) |  |  | — |
Lapse of statute of limitations |  | (23) |  |  | (50) |
Foreign exchange gains and losses |  | 4 |  |  | (1) |
Ending balance |  | $ | 201 |  |  | $ | 173 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: 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 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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