Income Taxes (Tables)

12 Months Ended

Sep. 03, 2015



For the year ended	2015			2014			2013
Income before income taxes, net income attributable to noncontrolling interests and equity in net income (loss) of equity method investees:
Foreign	$	2,431		$	2,619		$	839
U.S.	178			114			446
	$	2,609		$	2,733		$	1,285

Income tax (provision) benefit:
Current:
Foreign	$	(93	)	$	(46	)	$	(17	)
State	(1		)	(2		)	—
U.S. federal	6			(3		)	—
	(88		)	(51		)	(17		)
Deferred:
Foreign	(85		)	(81		)	9
U.S. federal	15			4			—
State	1			—			—
	(69		)	(77		)	9
Income tax (provision) benefit	$	(157	)	$	(128	)	$	(8	)

Income tax (provision) benefit computed using the U.S. federal statutory rate reconciled to income tax (provision) benefit

Income tax (provision) benefit computed using the U.S. federal statutory rate reconciled to income tax (provision) benefit was as follows:



For the year ended	2015			2014			2013
U.S. federal income tax (provision) benefit at statutory rate	$	(913	)	$	(956	)	$	(450	)
Change in unrecognized tax benefits	(118		)	(152		)	2
Foreign tax rate differential	515			474			339
Change in valuation allowance	260			544			(418		)
Noncontrolling investment transactions	57			—			—
Tax credits	53			11			36
State taxes, net of federal benefit	19			(39		)	6
Gain on MMJ Acquisition	—			(11		)	520
Transaction costs related to the MMJ Acquisition	—			—			(38		)
Other	(30		)	1			(5		)
Income tax (provision) benefit	$	(157	)	$	(128	)	$	(8	)

Deferred tax assets and liabilities

Deferred tax assets and liabilities consist of the following:



As of	2015			2014
Deferred tax assets:
Net operating loss and tax credit carryforwards	$	2,869		$	3,162
Accrued salaries, wages and benefits	143			152
Other accrued liabilities	97			113
Property, plant and equipment	—			284
Other	86			104
Gross deferred tax assets	3,195			3,815
Less valuation allowance	(2,051		)	(2,443		)
Deferred tax assets, net of valuation allowance	1,144			1,372

Deferred tax liabilities:
Debt discount	(207		)	(291		)
Unremitted earnings on certain subsidiaries	(162		)	(115		)
Product and process technology	(43		)	(29		)
Other	(57		)	(67		)
Deferred tax liabilities	(469		)	(502		)

Net deferred tax assets	$	675		$	870

Reported as:
Current deferred tax assets (included in other current assets)	$	104		$	228
Noncurrent deferred tax assets	597			816
Current deferred tax liabilities (included in accounts payable and accrued expenses)	(4		)	(4		)
Noncurrent deferred tax liabilities (included in other noncurrent liabilities)	(22		)	(170		)
Net deferred tax assets	$	675		$	870

Net operating loss carryforwards

As of September 3, 2015, our federal, state, and foreign net operating loss carryforward amounts and expiration periods as reported to tax authorities, were as follows:



Year of Expiration	U.S. Federal		State		Japan		Other Foreign		Total
2016 - 2020	$	—	$	103	$	1,311	$	1,011	$	2,425
2021 - 2025	—		265		2,499		294		3,058
2026 - 2030	2,022		1,028		—		—		3,050
2031 - 2035	1,999		652		—		—		2,651
Indefinite	—		—		—		30		30
	$	4,021	$	2,048	$	3,810	$	1,335	$	11,214

Federal and state tax credit carryforwards

As of September 3, 2015, our federal and state tax credit carryforward amounts and expiration periods as reported to tax authorities, were as follows:



Year of Tax Credit Expiration	Federal		State		Total
2016 - 2020	$	20	$	65	$	85
2021 - 2025	99		43		142
2026 - 2030	65		61		126
2031 - 2035	119		—		119
Indefinite	—		39		39
	$	303	$	208	$	511

Reconciliation of beginning and ending amount of unrecognized tax benefits

Below is a reconciliation of the beginning and ending amount of unrecognized tax benefits:



For the year ended	2015			2014			2013
Beginning unrecognized tax benefits	$	228		$	78		$	77
Increases related to tax positions taken during current year	119			152			4
Increases related to tax positions from prior years	17			—			—
Foreign currency translation increases (decreases) to tax positions	(6		)	1			4
Lapse of statute of limitations	(6		)	(1		)	—
Settlements with tax authorities	(1		)	(1		)	(8		)
Decreases related to tax positions from prior years	—			(1		)	—
Unrecognized tax benefits acquired in current year	—			—			1
Ending unrecognized tax benefits	$	351		$	228		$	78