Income Taxes (Tables)

12 Months Ended

Sep. 25, 2015

Income Taxes

Significant components of the income tax provision (benefit)

	Fiscal
	2015			2014			2013
	(in millions)
Current income tax provision (benefit):
U.S.:
Federal	$	(67	)	$	128		$	(296	)
State		12			(3	)		(85	)
Non-U.S.		352			302			292
		297			427			(89	)
Deferred income tax provision (benefit):
U.S.:
Federal		87			(311	)		31
State		5			(3	)		(4	)
Non-U.S.		(52	)		33			(13	)
		40			(281	)		14
Provision (benefit) for income taxes	$	337		$	146		$	(75	)

U.S. and non-U.S. components of income from continuing operations before income taxes

	Fiscal
	2015			2014			2013
	(in millions)
U.S.	$	(31	)	$	(133	)	$	(354	)
Non-U.S.		1,606			1,893			1,434
Income from continuing operations before income taxes	$	1,575		$	1,760		$	1,080

Reconciliation between U.S. federal income taxes at the statutory rate and provision (benefit) for income taxes on continuing operations

	Fiscal
	2015			2014			2013
	(in millions)
Notional U.S. federal income tax provision at the statutory rate	$	551		$	616		$	378
Adjustments to reconcile to the income tax provision (benefit):
U.S. state income tax provision (benefit), net		11			(4	)		(58	)
Other (income) expense—Tax Sharing Agreement		18			(23	)		64
Tax law changes		10			(1	)		—
Tax credits		(9	)		(8	)		(10	)
Non-U.S. net earnings(1)		(275	)		(287	)		(256	)
Nondeductible charges		2			3			—
Change in accrued income tax liabilities		(183	)		112			(164	)
Valuation allowance		(3	)		(239	)		(30	)
Legal entity restructuring		211			—			—
Other		4			(23	)		1
Provision (benefit) for income taxes	$	337		$	146		$	(75	)

(1) Excludes nondeductible charges and other items which are broken out separately in the table.

Components of net deferred income tax asset

	Fiscal Year End
	2015			2014
	(in millions)
Deferred tax assets:
Accrued liabilities and reserves	$	262		$	262
Tax loss and credit carryforwards		4,856			3,356
Inventories		57			52
Pension and postretirement benefits		295			282
Deferred revenue		17			12
Interest		394			358
Unrecognized income tax benefits		378			391
Other		4			27
		6,263			4,740
Deferred tax liabilities:
Intangible assets		(809	)		(835	)
Property, plant, and equipment		(1	)		(10	)
Other		(89	)		(73	)
		(899	)		(918	)
Net deferred tax asset before valuation allowance		5,364			3,822
Valuation allowance		(3,237	)		(1,706	)
Net deferred tax asset	$	2,127		$	2,116

Activity of unrecognized income tax benefits

	Fiscal
	2015			2014			2013
	(in millions)
Balance at beginning of fiscal year	$	1,595		$	1,617		$	1,794
Additions related to prior periods tax positions		24			22			88
Reductions related to prior periods tax positions		(291	)		(57	)		(271	)
Additions related to current period tax positions		97			32			87
Acquisitions		—			7			—
Settlements		(29	)		(14	)		(8	)
Reductions due to lapse of applicable statute of limitations		(28	)		(12	)		(73	)
Balance at end of fiscal year	$	1,368		$	1,595		$	1,617

Tax years subject to examination in major tax jurisdictions

Jurisdiction	Open Years
Belgium		2014 through 2015
Brazil		2010 through 2015
Canada		2008 through 2015
China		2005 through 2015
Czech Republic		2010 through 2015
France		2012 through 2015
Germany		2008 through 2015
Hong Kong		2009 through 2015
Hungary		2009 through 2015
India		2008 through 2015
Italy		2009 through 2015
Japan		2009 through 2015
Korea		2007 through 2015
Luxembourg		2010 through 2015
Mexico		2009 through 2015
Netherlands		2011 through 2015
Portugal		2012 through 2015
Singapore		2010 through 2015
Spain		2011 through 2015
Switzerland		2010 through 2015
United Kingdom		2013 through 2015
U.S.—federal and state and local		1997 through 2015