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Income Taxes (Tables) | 12 Months Ended
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Dec. 01, 2023
Income Tax Disclosure [Abstract] |
Income Before Income Taxes, Domestic and Foreign | Income before income taxes for fiscal 2023, 2022 and 2021 consisted of the following:
(in millions) |  | 2023 |  | 2022 |  | 2021
Domestic |  | $ | 3,465 |  |  | $ | 1,958 |  |  | $ | 1,736 |
Foreign |  | 3,334 |  |  | 4,050 |  |  | 3,969 |
Income before income taxes |  | $ | 6,799 |  |  | $ | 6,008 |  |  | $ | 5,705 |
Provision for (Benefit from) Income Taxes, Current and Deferred | The provision for income taxes for fiscal 2023, 2022 and 2021 consisted of the following:
(in millions) |  | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |  |
United States federal |  | $ | 1,198 |  |  | $ | 465 |  |  | $ | 391 |
Foreign |  | 335 |  |  | 329 |  |  | 197 |
State and local |  | 260 |  |  | 132 |  |  | 103 |
Total current |  | 1,793 |  |  | 926 |  |  | 691 |
Deferred: |  |  |  |  |  |
United States federal |  | (556) |  |  | (45) |  |  | (148) |
Foreign |  | 227 |  |  | 360 |  |  | 359 |
State and local |  | (93) |  |  | 11 |  |  | (19) |
Total deferred |  | (422) |  |  | 326 |  |  | 192 |
Provision for income taxes |  | $ | 1,371 |  |  | $ | 1,252 |  |  | $ | 883 |
Reconciliation of Provision for Income Taxes | Total income tax expense differed from the income tax expense computed at the U.S. federal statutory rate of 21% as a result of the following:
(in millions) |  | 2023 |  | 2022 |  | 2021
Tax expense computed at U.S. federal statutory rate |  | $ | 1,428 |  |  | $ | 1,262 |  |  | $ | 1,198 |
Tax credits |  | (130) |  |  | (116) |  |  | (149) |
Effects of non-U.S. operations |  | (116) |  |  | (7) |  |  | (23) |
Tax settlements |  | (14) |  |  | (14) |  |  | (58) |
State tax expense, net of federal benefit |  | 132 |  |  | 113 |  |  | 66 |
Stock-based compensation |  | 29 |  |  | — |  |  | (157) |
Other |  | 42 |  |  | 14 |  |  | 6 |
Provision for income taxes |  | $ | 1,371 |  |  | $ | 1,252 |  |  | $ | 883 |
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 1, 2023 and December 2, 2022 were as follows:
(in millions) |  | 2023 |  | 2022
Deferred tax assets: |  |  |  |
Capitalized expenses |  | $ | 984 |  |  | $ | 298 |
Intangible assets |  | 320 |  |  | 653 |
Credit carryforwards |  | 366 |  |  | 333 |
Reserves and accruals |  | 125 |  |  | 98 |
Operating lease liabilities |  | 97 |  |  | 104 |
Stock-based compensation |  | 65 |  |  | 108 |
Net operating loss carryforwards of acquired companies |  | 44 |  |  | 88 |
Benefits relating to tax positions |  | 68 |  |  | 56 |
Other |  | 48 |  |  | 41 |
Total gross deferred tax assets |  | 2,117 |  |  | 1,779 |
Valuation allowance |  | (405) |  |  | (402) |
Total deferred tax assets |  | 1,712 |  |  | 1,377 |
Deferred tax liabilities: |  |  |  |
Acquired intangible assets |  | 263 |  |  | 354 |
Prepaid expenses |  | 107 |  |  | 110 |
Operating lease right-of-use assets |  | 89 |  |  | 97 |
Depreciation and amortization |  | 77 |  |  | 67 |
Total deferred tax liabilities |  | 536 |  |  | 628 |
Net deferred tax assets |  | $ | 1,176 |  |  | $ | 749 |
Gross Amount of Unrecognized Tax Benefits | During fiscal 2023 and 2022, the aggregate changes in our total gross amount of unrecognized tax benefits were as follows:
(in millions) |  | 2023 |  | 2022
Beginning balance |  | $ | 321 |  |  | $ | 289 |
Gross increases in unrecognized tax benefits – prior year tax positions |  | 103 |  |  | 20 |
Gross decreases in unrecognized tax benefits – prior year tax positions |  | (9) |  |  | (18) |
Gross increases in unrecognized tax benefits – current year tax positions |  | 108 |  |  | 53 |
Lapse of statute of limitations |  | (14) |  |  | (4) |
Tax settlements |  | (13) |  |  | (18) |
Foreign exchange gains and losses |  | 5 |  |  | (1) |
Ending balance |  | $ | 501 |  |  | $ | 321 |

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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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 19 -SubTopic 10 -Topic 740 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-19 + Details
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