v3.25.3
Income Taxes (Tables)
 12 Months Ended
Sep. 28, 2025
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense (Benefit)
The components of the income tax provision from continuing operations were as follows (in millions):
202520242023
Current provision:   
Federal$1,682 $1,306 $1,229 
State7 3 10 
Foreign (1)981 805 491 
2,670 2,114 1,730 
Deferred provision (benefit):
   
Federal4,373 (1,553)(1,475)
State(5)(4)(8)
Foreign (1)84 (331)(143)
4,452 (1,888)(1,626)
$7,122 $226 $104 
(1) The foreign component of the income tax provision included foreign withholding taxes on royalty revenues included in U.S. earnings.
Income before Income Tax, Domestic and Foreign
The components of income from continuing operations before income taxes by U.S. and foreign jurisdictions were as follows (in millions):
202520242023
United States$11,174 $9,169 $6,400 
Foreign1,489 1,167 1,043 
$12,663 $10,336 $7,443 
Effective Income Tax Rate Reconciliation
The following is a reconciliation of the expected statutory federal income tax provision to our actual income tax provision from continuing operations (in millions, except percentages). A significant portion of our U.S. income qualifies for preferential treatment as FDII at a 13% effective tax rate.
202520242023
Expected income tax provision at federal statutory tax rate$2,659 $2,171 $1,563 
Valuation allowance on federal deferred tax assets resulting from OBBB
5,724 — — 
Benefit from FDII deduction, excluding the impact of capitalizing research and development expenditures(735)(596)(447)
Benefit from FDII deduction related to capitalizing research and development expenditures(492)(585)(598)
Benefit related to research and development tax credits(237)(259)(235)
Excess tax (benefit) deficiency associated with share-based awards(120)(176)3 
Foreign currency losses (gains) related to Korean withholding tax receivable98 (21)(66)
Benefit related to the transfer of intellectual property between foreign subsidiaries
(8)(317)— 
Benefit from fiscal 2021 and 2022 FDII deductions related to a change in sourcing of research and development expenditures— — (126)
Benefit from releasing valuation allowance on unutilized foreign loss carryforwards— — (114)
Other233 9 124 
$7,122 $226 $104 
Effective tax rate56%2%1%
Deferred Tax Assets and Liabilities
We had deferred tax assets and deferred tax liabilities as follows (in millions):
September 28,
2025		September 29,
2024
Capitalized research and development expenditures
$4,194 $3,015 
Unused tax credits2,527 2,172 
Customer incentives790 769 
Unused net operating losses708 719 
Accrued liabilities and reserves410 397 
Other1,069 1,039 
Total gross deferred tax assets9,698 8,111 
Valuation allowance(8,016)(2,061)
Total net deferred tax assets1,682 6,050 
Intangible assets(367)(388)
Operating lease assets(256)(248)
Unrealized gains on other investments and marketable securities(212)(169)
Other(235)(197)
Total deferred tax liabilities(1,070)(1,002)
Net deferred tax assets$612 $5,048 
Reported as:  
Non-current deferred tax assets$743 $5,162 
Non-current deferred tax liabilities (1)
(131)(114)
$612 $5,048 
(1) Non-current deferred tax liabilities were included in other liabilities in the consolidated balance sheets.
Unrecognized Tax Benefits Roll Forward
A summary of the changes in the amount of unrecognized tax benefits for fiscal 2025, 2024 and 2023 follows (in millions):
202520242023
Beginning balance of unrecognized tax benefits$2,450 $2,296 $2,191 
Additions based on prior year tax positions158 2 10 
Reductions for prior year tax positions and lapse in statute of limitations(93)(1)(63)
Additions for current year tax positions153 153 158 
Ending balance of unrecognized tax benefits$2,668 $2,450 $2,296