Income Taxes (Tables)

12 Months Ended

Dec. 25, 2021

Dec. 26, 2020

Income Tax Disclosure [Abstract]

Schedule of Loss before Income Tax

Income before income taxes consists of the following:

	December 25, 2021		December 26, 2020		December 28, 2019
	(In millions)
U.S.	$	3,528	$	1,213	$	334
Non-U.S.	147		67		38
Total pre-tax income including equity income (loss) in investee	$	3,675	$	1,280	$	372

Provision (Benefit) for Income Taxes

The income tax provision (benefit) consists of:

	December 25, 2021		December 26, 2020		December 28, 2019
	(In millions)
Current:
U.S. Federal	$	112	$	—	$	(13)
U.S. State and Local	11		5		1
Non-U.S.	82		8		50
Total	205		13		38
Deferred:
U.S. Federal	320		(1,193)		—
U.S. State and Local	(7)		(28)		—
Non-U.S.	(5)		(2)		(7)
Total	308		(1,223)		(7)
Income tax provision (benefit)	$	513	$	(1,210)	$	31

Schedule of Effective Income Tax Rate Reconciliation

The table below displays the reconciliation between statutory federal income taxes and the total income tax provision (benefit).

	December 25, 2021		December 26, 2020		December 28, 2019
	(In millions)
Statutory federal income tax expense at 21%	$	772	$	269	$	78
State taxes (benefit)	1		(6)		1
Foreign withholding taxes	7		10		22
Foreign rate detriment / (benefit)	71		(3)		2
Valuation allowance change	3		(1,301)		(59)
Research credits	(78)		(57)		—
Excess tax benefits relating to share-based compensation	(125)		(116)		—
Tax Reform Act	—		—		(13)
Foreign Derived Intangible Income deduction	(147)		—		—
Other	9		(6)		—
Income tax provision (benefit)	$	513	$	(1,210)	$	31

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of tax carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the balances for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 25, 2021 and December 26, 2020 were as follows:

	December 25, 2021		December 26, 2020
	(In millions)
Deferred tax assets:
Net operating loss carryovers	$	920	$	1,029
Accruals and reserves not currently deductible	631		514
Employee benefits not currently deductible	164		122
Federal and state tax credit carryovers	319		569
Foreign research and development ITC credits	547		489
Capitalized costs	121		174
Lease liability	124		72
Other	27		29
Total deferred tax assets	2,853		2,998
Less: valuation allowance	(1,735)		(1,576)
Total deferred tax assets, net of valuation allowance	1,118		1,422
Deferred tax liabilities:
Acquired intangibles and goodwill	(50)		(1)
Right-of-use assets	(110)		(62)
Discount of convertible notes	—		(2)
Undistributed foreign earnings	(24)		(114)
Other	(15)		(9)
Total deferred tax liabilities	(199)		(188)
Net deferred tax assets	$	919	$	1,234

The movement in the deferred tax valuation allowance was as follows:

	December 25, 2021		December 26, 2020		December 28, 2019
	(In millions)
Balance at beginning of year	$	1,576	$	2,867	$	2,443
Charges (reductions) to income tax expense/other accounts*	3		(1,301)		(61)
Net (deductions) recoveries+	156		10		485
Balance at end of year	$	1,735	$	1,576	$	2,867

*	Amounts recorded against other accounts are not material
+	The 2019 and 2021 net recoveries were primarily related to net originating deferred tax assets and newly generated tax credits

Deferred tax liabilities are included in Other long-term liabilities on the consolidated balance sheets. The breakdown between deferred tax assets and deferred tax liabilities as of December 25, 2021 and December 26, 2020 is as follows:

	December 25, 2021		December 26, 2020
	(In millions)
Deferred tax assets	$	931	$	1,245
Deferred tax liabilities	(12)		(11)
Net deferred tax assets	$	919	$	1,234

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the Company's gross unrecognized tax benefits was as follows:

	December 25, 2021		December 26, 2020		December 28, 2019
	(In millions)
Balance at beginning of year	$	119	$	65	$	49
Increases for tax positions taken in prior years	14		41		5
Decreases for tax positions taken in prior years	(9)		(15)		—
Increases for tax positions taken in the current year	156		30		15
Decreases for settlements with taxing authorities	(5)		(1)		(3)
Decreases for lapsing of the statute of limitations	—		(1)		(1)
Balance at end of year	$	275	$	119	$	65