v3.25.4

INCOME TAXES | 12 Months Ended
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Nov. 28, 2025
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income before income taxes for fiscal 2025, 2024 and 2023 consisted of the following:
(in millions) |  | 2025 |  | 2024 |  | 2023
Domestic |  | $ | 6,721 |  |  | $ | 4,160 |  |  | $ | 3,465 |
Foreign |  | 2,013 |  |  | 2,771 |  |  | 3,334 |
Income before income taxes |  | $ | 8,734 |  |  | $ | 6,931 |  |  | $ | 6,799 |
The provision for income taxes for fiscal 2025, 2024 and 2023 consisted of the following:
(in millions) |  | 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |  |
United States federal |  | $ | 1,509 |  |  | $ | 1,292 |  |  | $ | 1,198 |
Foreign |  | 348 |  |  | 315 |  |  | 335 |
State and local |  | 261 |  |  | 232 |  |  | 260 |
Total current |  | 2,118 |  |  | 1,839 |  |  | 1,793 |
Deferred: |  |  |  |  |  |
United States federal |  | (499) |  |  | (580) |  |  | (556) |
Foreign |  | 40 |  |  | 179 |  |  | 227 |
State and local |  | (55) |  |  | (67) |  |  | (93) |
Total deferred |  | (514) |  |  | (468) |  |  | (422) |
Provision for income taxes |  | $ | 1,604 |  |  | $ | 1,371 |  |  | $ | 1,371 |
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) |  | 2025 |  | 2024 |  | 2023
Tax expense computed at U.S. federal statutory rate |  | $ | 1,834 |  |  | $ | 1,456 |  |  | $ | 1,428 |
Effects of non-U.S. operations |  | (300) |  |  | (198) |  |  | (116) |
Tax credits |  | (154) |  |  | (150) |  |  | (130) |
Tax settlements |  | (55) |  |  | (85) |  |  | (14) |
State tax expense, net of federal benefit |  | 171 |  |  | 139 |  |  | 132 |
Stock-based compensation |  | 90 |  |  | (23) |  |  | 29 |
Acquisition termination fee |  | — |  |  | 210 |  |  | — |
Other |  | 18 |  |  | 22 |  |  | 42 |
Provision for income taxes |  | $ | 1,604 |  |  | $ | 1,371 |  |  | $ | 1,371 |
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 28, 2025 and November 29, 2024 were as follows:
(in millions) |  | 2025 |  | 2024
Deferred tax assets: |  |  |  |
Capitalized expenses |  | $ | 2,065 |  |  | $ | 1,625 |
Credit carryforwards |  | 477 |  |  | 343 |
Net operating loss and capital loss carryforwards |  | 306 |  |  | 308 |
Accrued liabilities |  | 202 |  |  | 174 |
Intangible assets |  | 93 |  |  | 117 |
Stock-based compensation |  | 70 |  |  | 66 |
Operating lease liabilities |  | 68 |  |  | 79 |
Benefits relating to tax positions |  | 59 |  |  | 64 |
Total gross deferred tax assets |  | 3,340 |  |  | 2,776 |
Valuation allowance |  | (806) |  |  | (725) |
Total deferred tax assets |  | 2,534 |  |  | 2,051 |
Deferred tax liabilities: |  |  |  |
Acquired intangible assets |  | 144 |  |  | 180 |
Prepaid expenses |  | 112 |  |  | 112 |
Depreciation and amortization |  | 62 |  |  | 70 |
Operating lease right-of-use assets |  | 45 |  |  | 52 |
Other |  | 16 |  |  | 11 |
Total deferred tax liabilities |  | 379 |  |  | 425 |
Net deferred tax assets |  | $ | 2,155 |  |  | $ | 1,626 |
Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for tax loss and credit carryforwards. As of November 28, 2025, we had federal and state tax credit carryforwards of approximately $146 million and $412 million, respectively, as well as state net operating loss carryforwards of approximately $410 million. The majority of the state tax credits can be carried forward indefinitely, and the remaining net operating loss and credit carryforwards will expire in various years from fiscal 2026 through 2039. We also had federal and state capital loss carryforwards of $1.13 billion, most of which will expire in 2029. Certain tax loss and credit carryforwards are subject to limitations and/or are reduced by a valuation allowance. The net carrying amount of such assets is expected to be fully realized. In assessing the realizability of deferred tax assets, management determined that it is more likely than not that we will not fully realize certain available tax assets. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. As of November 28, 2025, we continue to maintain a valuation allowance of $806 million primarily related to certain U.S. state and federal credits and capital loss carryforwards. For fiscal 2025, the increase in the valuation allowance was $81 million. As we repatriate foreign earnings for use in the United States, the distributions will generally be exempt from federal income taxes. As of November 28, 2025, the cumulative amount of foreign earnings considered permanently reinvested upon which taxes have not been provided, and the corresponding unrecognized deferred tax liability, was not material. Accounting for Uncertainty in Income Taxes During fiscal 2025 and 2024, the aggregate changes in our total gross amount of unrecognized tax benefits were as follows:
(in millions) |  | 2025 |  | 2024
Beginning balance |  | $ | 683 |  |  | $ | 501 |
Gross increases in unrecognized tax benefits – prior year tax positions |  | 12 |  |  | 6 |
Gross decreases in unrecognized tax benefits – prior year tax positions |  | (50) |  |  | (10) |
Gross increases in unrecognized tax benefits – current year tax positions |  | 108 |  |  | 269 |
Lapse of statute of limitations |  | (60) |  |  | (63) |
Tax settlements |  | — |  |  | (20) |
Ending balance |  | $ | 693 |  |  | $ | 683 |
Our policy is to record interest and penalties related to uncertain tax positions within the provision for income taxes. As of November 28, 2025 and November 29, 2024, the combined amounts of accrued interest and penalties included in long-term income taxes payable related to tax positions taken on our tax returns were not material. While we file federal, state and local income tax returns globally, our major tax jurisdictions are the United States, California and Ireland. We are subject to the examination of our income tax returns by various domestic and foreign tax authorities with 2021 being the earliest fiscal year open for examination in our major tax jurisdictions. We regularly assess the likelihood of outcomes resulting from examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result. While we believe our tax estimates are reasonable, we cannot provide assurance that the final determination of any of these examinations will not have an adverse effect on our financial position and results of operations. The timing of the resolution of income tax examinations is highly uncertain as are the amounts and timing of tax payments that are part of any audit settlement process. These events could cause large fluctuations in the balance sheet classification of our tax assets and liabilities. We believe that within the next 12 months, it is reasonably possible that either certain audits will conclude or statutes of limitations on certain income tax examination periods will expire, or both. Although the timing of resolution, settlement and closing of audits is not certain, it is reasonably possible that the underlying unrecognized tax benefits may decrease by up to $40 million over the next 12 months.

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