Income Taxes (Tables)

12 Months Ended

Jan. 30, 2022

Schedule of income tax expense (benefit)

The income tax expense (benefit) applicable to income before income taxes consists of the following:


	Year Ended
	January 30, 2022		January 31, 2021		January 26, 2020

	(In millions)
Current income taxes:
Federal	$	482	$	197	$	65
State	42		1		4
Foreign	71		161		87
Total current	595		359		156
Deferred taxes:
Federal	(420)		(246)		2

Foreign	14		(36)		16
Total deferred	(406)		(282)		18

Income tax expense	$	189	$	77	$	174

Schedule of income before income tax

Income before income tax consists of the following:


	Year Ended
	January 30, 2022		January 31, 2021		January 26, 2020

	(In millions)
Domestic (1)	$	8,446	$	1,437	$	620
Foreign	1,495		2,972		2,350
Income before income tax	$	9,941	$	4,409	$	2,970

(1)Fiscal year 2022 domestic income before income tax increased as compared to fiscal years 2021 and 2020 due to the Domestication in the second quarter of fiscal year 2022.

Schedule of effective income tax rate reconciliation

The income tax expense (benefit) differs from the amount computed by applying the U.S. federal statutory rate of 21% to income before income taxes as follows:


	Year Ended
	January 30, 2022		January 31, 2021		January 26, 2020

	(In millions)
Tax expense computed at federal statutory rate	$	2,088	$	926	$	624
Expense (benefit) resulting from:
State income taxes, net of federal tax effect	42		10		12
Foreign-derived intangible income	(520)		—		—
Foreign tax rate differential	(497)		(561)		(301)
Stock-based compensation	(337)		(136)		(60)
U.S. federal R&D tax credit	(289)		(173)		(110)
IP domestication	(244)		—		—



Other	(54)		11		9
Income tax expense	$	189	$	77	$	174

Schedule of deferred tax assets and liabilities

The tax effect of temporary differences that gives rise to significant portions of the deferred tax assets and liabilities are presented below:


	January 30, 2022		January 31, 2021

	(In millions)
Deferred tax assets:
Research and other tax credit carryforwards	$	798	$	650
Property, equipment and intangible assets	530		32
GILTI deferred tax assets	378		709
Accruals and reserves, not currently deductible for tax purposes	258		59
Operating lease liabilities	125		120
Net operating loss carryforwards	118		100
Stock-based compensation	86		36
Other deferred tax assets	22		—
Gross deferred tax assets	2,315		1,706
Less valuation allowance	(907)		(728)
Total deferred tax assets	1,408		978
Deferred tax liabilities:
Acquired intangibles	(169)		(191)
Unremitted earnings of foreign subsidiaries	(150)		(111)
Operating lease assets	(113)		(111)
Gross deferred tax liabilities	(432)		(413)
Net deferred tax asset (1)	$	976	$	565

(1) Net deferred tax asset includes long-term deferred tax assets of $1.22 billion and $806 million and long-term deferred tax liabilities of $245 million and $241 million for fiscal years 2022 and 2021, respectively. Long-term deferred tax liabilities are included in other long-term liabilities on our Consolidated Balance Sheets.

Summary of gross unrecognized tax benefits

A reconciliation of gross unrecognized tax benefits is as follows:


	January 30, 2022		January 31, 2021		January 26, 2020

	(In millions)
Balance at beginning of period	$	776	$	583	$	477
Increases in tax positions for current year	246		158		104
Increases in tax positions for prior years (1)	14		60		7
Decreases in tax positions for prior years	(4)		(11)		—
Settlements	(8)		(5)		—
Lapse in statute of limitations	(11)		(9)		(5)
Balance at end of period	$	1,013	$	776	$	583

(1) The fiscal year 2021 balance represents prior year gross unrecognized tax benefits recorded as a result of the Mellanox acquisition.