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Income Taxes (Tables) | 12 Months Ended
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Dec. 03, 2021
Income Tax Disclosure [Abstract] |
Income before income taxes, domestic and foreign | Income before income taxes for fiscal 2021, 2020 and 2019 consisted of the following:
(in millions) |  | 2021 |  | 2020 |  | 2019
Domestic |  | $ | 1,736 |  |  | $ | 1,090 |  |  | $ | 438 |
Foreign |  | 3,969 |  |  | 3,086 |  |  | 2,767 |
Income before income taxes |  | $ | 5,705 |  |  | $ | 4,176 |  |  | $ | 3,205 |
Provision for (benefit from) income taxes, current and deferred | The provision for (benefit from) income taxes for fiscal 2021, 2020 and 2019 consisted of the following:
(in millions) |  | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |  |
United States federal |  | $ | 391 |  |  | $ | 119 |  |  | $ | 7 |
Foreign |  | 197 |  |  | 222 |  |  | 211 |
State and local |  | 103 |  |  | 79 |  |  | 31 |
Total current |  | 691 |  |  | 420 |  |  | 249 |
Deferred: |  |  |  |  |  |
United States federal |  | (148) |  |  | (123) |  |  | 23 |
Foreign |  | 359 |  |  | (1,313) |  |  | (12) |
State and local |  | (19) |  |  | (68) |  |  | (6) |
Total deferred |  | 192 |  |  | (1,504) |  |  | 5 |
Provision for (benefit from) income taxes |  | $ | 883 |  |  | $ | (1,084) |  |  | $ | 254 |
Reconciliation of provision for income taxes | Total income tax expense differed from the expected tax expense, computed by multiplying the U.S. federal statutory rate of 21% in fiscal 2021, 2020 and 2019 by income before income taxes, as a result of the following:
(in millions) |  | 2021 |  | 2020 |  | 2019
Computed “expected” tax expense |  | $ | 1,198 |  |  | $ | 877 |  |  | $ | 673 |
Impacts of intra-entity IP transfers |  | — |  |  | (1,360) |  |  | — |
Effects of non-U.S. operations |  | (23) |  |  | (337) |  |  | (224) |
Stock-based compensation |  | (157) |  |  | (154) |  |  | (86) |
Tax credits |  | (149) |  |  | (101) |  |  | (100) |
Resolution of income tax examinations |  | (58) |  |  | (23) |  |  | (39) |
State tax expense, net of federal benefit |  | 66 |  |  | 10 |  |  | 24 |
Other |  | 6 |  |  | 4 |  |  | 6 |
Provision for (benefit from) income taxes |  | $ | 883 |  |  | $ | (1,084) |  |  | $ | 254 |
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 December 3, 2021 and November 27, 2020 were as follows:
(in millions) |  | 2021 |  | 2020
Deferred tax assets: |  |  |  |
Intangible assets |  | $ | 997 |  |  | $ | 1,368 |
Capitalized expenses |  | 355 |  |  | 292 |
Credit carryforwards |  | 287 |  |  | 218 |
Operating lease liabilities |  | 122 |  |  | 131 |
Net operating loss carryforwards of acquired companies |  | 131 |  |  | 54 |
Stock-based compensation |  | 91 |  |  | 92 |
Reserves and accruals |  | 89 |  |  | 71 |
Benefits relating to tax positions |  | 39 |  |  | 44 |
Other |  | 46 |  |  | 37 |
Total gross deferred tax assets |  | 2,157 |  |  | 2,307 |
Valuation allowance |  | (335) |  |  | (276) |
Total deferred tax assets |  | 1,822 |  |  | 2,031 |
Deferred tax liabilities: |  |  |  |
Acquired intangible assets |  | 447 |  |  | 330 |
Operating lease right-of-use assets |  | 111 |  |  | 131 |
Prepaid expenses |  | 123 |  |  | 107 |
Depreciation and amortization |  | 49 |  |  | 52 |
Undistributed earnings of foreign subsidiaries |  | 12 |  |  | 51 |
Total deferred tax liabilities |  | 742 |  |  | 671 |
Net deferred tax assets |  | $ | 1,080 |  |  | $ | 1,360 |
Gross amount of unrecognized tax benefits | During fiscal 2021 and 2020, the aggregate changes in our total gross amount of unrecognized tax benefits were as follows:
(in millions) |  | 2021 |  | 2020
Beginning balance |  | $ | 201 |  |  | $ | 173 |
Gross increases in unrecognized tax benefits – prior year tax positions |  | 30 |  |  | 14 |
Gross increases in unrecognized tax benefits – current year tax positions |  | 86 |  |  | 44 |
Lapse of statute of limitations |  | (21) |  |  | (23) |
Settlements with taxing authorities |  | (4) |  |  | (11) |
Foreign exchange gains and losses |  | (3) |  |  | 4 |
Ending balance |  | $ | 289 |  |  | $ | 201 |

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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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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=121826272&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=121826272&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=121826272&loc=d3e32840-109319 + Details
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