Income Taxes (Tables)

12 Months Ended

Dec. 29, 2019

Income Tax Disclosure [Abstract]

Summary of Income before Income Taxes by Region

Income before income taxes summarized by region was as follows:

In millions	2019		2018		2017
United States	$	242	$	54	$	458
Foreign	876		840		585
Total income before income taxes	$	1,118	$	894	$	1,043

Summary of Provision for Income Taxes

The provision for income taxes consisted of the following:

In millions	2019			2018			2017
Current:
Federal	$	32		$	47		$	259
State	7			15			21
Foreign	84			68			51
Total current provision	123			130			331
Deferred:
Federal	1			—			36
State	(1		)	(16		)	—
Foreign	5			(2		)	(2		)
Total deferred expense (benefit)	5			(18		)	34
Total tax provision	$	128		$	112		$	365

Summary of Reconciliation of Provision for Income Taxes to Amount Computed by Applying the Federal Statutory Rate

The provision for income taxes reconciles to the amount computed by applying the federal statutory rate to income before taxes as follows:

In millions	2019			2018			2017
Tax at federal statutory rate	$	235		$	188		$	365
State, net of federal benefit	18			13			19
Research and other credits	(37		)	(23		)	(12		)
Change in valuation allowance	(2		)	(12		)	12
Impact of foreign operations	(57		)	(59		)	(130		)
Investments in consolidated variable interest entities	(5		)	9			(3		)
Impact of U.S. Tax Reform	—			11			150
Stock compensation	(20		)	(24		)	(41		)
Other	(4		)	9			5
Total tax provision	$	128		$	112		$	365

Summary of Significant Components of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities were as follows:

In millions	December 29, 2019			December 30, 2018
Deferred tax assets:
Net operating losses	$	21		$	26
Tax credits	63			63
Other accruals and reserves	12			28
Stock compensation	20			20
Deferred rent	—			30
Cost sharing adjustment	21			21
Other amortization	16			13
Obligations under financing leases	—			70
Operating lease liabilities	158			—
Investments	2			1
Other	45			28
Total gross deferred tax assets	358			300
Valuation allowance on deferred tax assets	(13		)	(15		)
Total deferred tax assets	345			285
Deferred tax liabilities:
Purchased intangible amortization	(27		)	(32		)
Convertible debt	(30		)	(41		)
Property and equipment	(47		)	(94		)
Operating lease right-of-use assets	(111		)	—
Investments	(62		)	(45		)
Other	(5		)	(3		)
Total deferred tax liabilities	(282		)	(215		)
Deferred tax assets, net	$	63		$	70

Summary of the Gross Amount of Uncertain Tax Positions

The following table summarizes the gross amount of our uncertain tax positions:

In millions	December 29, 2019			December 30, 2018			December 31, 2017
Balance at beginning of year	$	88		$	79		$	65
Increases related to prior year tax positions	1			1			2
Decreases related to prior year tax positions	—			(1		)	—
Increases related to current year tax positions	12			12			14
Decreases related to lapse of statute of limitations	(22		)	(3		)	(2		)
Balance at end of year	$	79		$	88		$	79