Income Taxes (Tables)

12 Months Ended

Sep. 28, 2019

Income Tax Disclosure [Abstract]

Income Before Income Taxes

Income Before Income Taxes	2019		2018		2017
Domestic (including U.S. exports)	$	12,389	$	12,914	$	12,611
Foreign subsidiaries	1,555		1,815		1,177
Total income from continuing operations	13,944		14,729		13,788
Income from discontinued operations	706		—		—
	$	14,650	$	14,729	$	13,788

Income Tax Expense / (Benefit)

Income Tax Expense/(Benefit)
Current
Federal	$	14		$	2,240		$	3,229
State	112			362			360
Foreign (1)	824			642			489
	950			3,244			4,078
Deferred
Federal (2)	1,829			(1,577		)	370
State	259			(20		)	5
Foreign	(7		)	16			(31		)
	2,081			(1,581		)	344
Income tax expense from continuing operations	3,031			1,663			4,422
Income tax expense from discontinued operations	35			—			—
	$	3,066		$	1,663		$	4,422

⁽¹⁾ Includes foreign withholding taxes

⁽²⁾ Includes the Tax Act Deferred Remeasurement in fiscal 2018

Deferred Tax Assets and Liabilities

Components of Deferred Tax Assets and Liabilities	September 28, 2019			September 29, 2018
Deferred tax assets
Net operating losses and tax credit carryforwards	$	(2,181	)	$	(1,437	)
Accrued liabilities	(2,598		)	(1,214		)
Other	(540		)	(328		)
Total deferred tax assets	(5,319		)	(2,979		)
Deferred tax liabilities
Depreciable, amortizable and other property	7,647			3,678
Investment in U.S. entities	2,258			189
Licensing revenues	573			265
Investment in foreign entities	146			351
Other	212			88
Total deferred tax liabilities	10,836			4,571
Net deferred tax liability before valuation allowance	5,517			1,592
Valuation allowance	1,975			1,383
Net deferred tax liability	$	7,492		$	2,975

Reconciliation of Effective Income Tax Rate to Federal Rate

A reconciliation of the effective income tax rate to the federal rate for continuing operations is as follows: 

	2019		2018		2017
Federal income tax rate	21.0	%	24.5	%	35.0	%
State taxes, net of federal benefit	2.2		1.9		1.7
Foreign derived income	(1.1	)	—		—
Domestic production activity deduction	—		(1.4	)	(2.1	)
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate	0.1		(1.1	)	(1.6	)
Tax Act(1)	(0.3	)	(11.5	)	—
Other, including tax reserves and related interest	(0.2	)	(1.1	)	(0.9	)
	21.7	%	11.3	%	32.1	%

⁽¹⁾ 

Reflects the impact from the Deferred Remeasurement, net of the Deemed Repatriation Tax

Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits, Excluding Related Accrual for Interest

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding the related accrual for interest, is as follows: 

	2019			2018			2017
Balance at the beginning of the year	$	648		$	832		$	844
Increases due to business acquisitions	2,728			—			—
Increases for current year tax positions	84			64			61
Increases for prior year tax positions	143			48			13
Decreases in prior year tax positions	(61		)	(135		)	(55		)
Settlements with taxing authorities	(590		)	(161		)	(31		)
Balance at the end of the year	$	2,952		$	648		$	832