XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 9 Months Ended
--- | ---
Jan. 29, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | 13. Income Taxes Our effective tax rates for the periods presented were as follows:
|  | Nine Months Ended |
|  | January 29, 2016 |  |  | January 23, 2015 |
Effective tax rates |  |  | 16.8 | % |  |  | 22.5 | %
Our effective tax rates reflect the impact of a significant amount of our earnings being taxed in foreign jurisdictions at rates below the U.S. statutory tax rate. In addition, our effective tax rates for the nine months ended January 29, 2016 and January 23, 2015 were impacted by extensions of the federal research credit and adjustments related to income tax audits as discussed below. In December 2015, the federal research credit, which had previously expired on December 31, 2014, was permanently extended. As a result, during the nine months ended January 29, 2016, we recorded a benefit of $7 million related to the current year research credit and a discrete benefit of $4 million related to a prior year credit that we retroactively claimed. In December 2014, the federal research credit was retroactively extended for amounts paid or incurred after December 31, 2013 and before January 1, 2015. As a result of the extension, during the nine months ended January 23, 2015, we recorded a benefit of $6 million related to the fiscal 2015 research credit and a discrete benefit of $4 million related to a prior year credit that we retroactively claimed. In June 2015, the Internal Revenue Service (IRS) signed a closing agreement on transfer pricing arrangements and, in October 2015, completed the examination of our fiscal 2008 to 2010 income tax returns. During the nine months ended January 29, 2016, we recorded discrete charges totaling $23 million attributable to transfer pricing and other audit settlements and the related re-measurement of uncertain tax positions for tax years subject to future audits. In July 2014, the IRS completed the examination of our fiscal 2005 to 2007 income tax returns upon approval by the Joint Committee of Taxation. During the nine months ended January 23, 2015, we recorded a discrete charge of $47 million attributable to the audit settlements and related re-measurements of uncertain tax positions for tax years subject to future audits. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
|  | Nine Months Ended |
|  | January 29, 2016 |  |  | January 23, 2015 |
Balance at beginning of period |  | $ | 272 |  |  | $ | 236 |
Additions based on tax positions related to the current year |  |  | 13 |  |  |  | 19 |
Additions for tax positions of prior years |  |  | 21 |  |  |  | 102 |
Decreases for tax positions of prior years |  |  | (38 | ) |  |  | (24 | )
Settlements |  |  | (52 | ) |  |  | (58 | )
Balance at end of period |  | $ | 216 |  |  | $ | 275 |
As of January 29, 2016, we had $216 million of gross unrecognized tax benefits, of which $160 million has been recorded in other long-term liabilities. Unrecognized tax benefits of $153 million, including penalties, interest and indirect benefits, would affect our provision for income taxes if recognized. We are currently undergoing income tax audits in the United States (U.S.) and several foreign tax jurisdictions. Transfer pricing calculations are key issues under audits in various jurisdictions, and are often subject to dispute and appeals. The IRS has concluded the examination of our income tax returns for our fiscal years through 2010. We expect the IRS to commence the examination of later years within the next twelve months. On September 17, 2010, the Danish Tax Authorities issued a decision concluding that distributions declared in 2005 and 2006 from our Danish subsidiary were subject to Danish at-source dividend withholding tax. We do not believe that our Danish subsidiary is liable for withholding tax and filed an appeal with the Danish Tax Tribunal to that effect. On December 19, 2011, the Danish Tax Tribunal issued a ruling that our Danish subsidiary was not liable for Danish withholding tax. The Danish tax examination agency appealed to the Danish High Court in March 2012. The Danish High Court hearing has not yet occurred. We continue to monitor the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was issued by the Tax Court in December 2015. In February 2016, the Commissioner appealed the Tax Court decision. At this time, the U.S. Department of the Treasury has not withdrawn the requirement to include stock-based compensation from its regulations. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits, and the risk of the Tax Court’s decision being overturned upon appeal, we have not recorded any benefit as of January 29, 2016. We will continue to monitor ongoing developments and potential impacts to our financial statements.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration