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Income Taxes
6 Months Ended
Oct. 24, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company’s effective tax rates for the three and six months ended October 24, 2014 were 19.0 percent and 19.3 percent, respectively, compared to 19.2 percent and 18.2 percent for the three and six months ended October 25, 2013, respectively. The changes in the Company’s effective tax rate for the three and six months ended October 24, 2014 were primarily due to the tax impact of special charges, restructuring charges, net, certain litigation charges, net, acquisition-related items, the expiration of the U.S. federal research and development tax credit on December 31, 2013, and the impact from year-over-year changes in operational results by jurisdiction.
During the six months ended October 24, 2014, the Company’s gross unrecognized tax benefits increased from $1.172 billion to $1.293 billion. In addition, the Company has accrued gross interest and penalties of $171 million as of October 24, 2014. If all of the Company’s unrecognized tax benefits were recognized, approximately $1.173 billion would impact the Company’s effective tax rate. The Company has recorded the gross unrecognized tax benefits as a long-term liability, as it does not expect significant payments to occur or the total amount of unrecognized tax benefits to change significantly over the next 12 months.
The Company will continue to recognize interest and penalties related to income tax matters in the provision for income taxes in the condensed consolidated statements of earnings and record the liability in current or long-term accrued income taxes in the condensed consolidated balance sheets, as appropriate.
As of October 24, 2014, there were no changes to significant unresolved matters with the IRS or foreign tax authorities from what the Company disclosed in its Annual Report on Form 10-K for the year ended April 25, 2014.