2022
2021
2020
Computed expected tax
$
25,012
$
22,933
$
14,089
State taxes, net of federal effect
1,518
1,151
423
Impacts of the Act
542
—
(582)
Earnings of foreign subsidiaries
(4,366)
(4,715)
(2,534)
Foreign-derived intangible income deduction
(296)
(1,372)
(169)
Research and development credit, net
(1,153)
(1,033)
(728)
Excess tax benefits from equity awards
(1,871)
(2,137)
(930)
Other
(86)
(300)
111
Provision for income taxes
$
19,300
$
14,527
$
9,680
Effective tax rate
16.2%
13.3%
14.4%
Deferred Tax Assets and Liabilities
As of September 24, 2022 and September 25, 2021, the significant components of the Company’s deferred tax assets and
liabilities were (in millions):
2022
2021
Deferred tax assets:
Amortization and depreciation
$
1,496 $
5,575
Accrued liabilities and other reserves
6,515
5,895
Lease liabilities
2,400
2,406
Deferred revenue
5,742
5,399
Unrealized losses
2,913
53
Tax credit carryforwards
6,962
4,262
Other
1,596
1,639
Total deferred tax assets
27,624
25,229
Less: Valuation allowance
(7,530)
(4,903)
Total deferred tax assets, net
20,094
20,326
Deferred tax liabilities:
Minimum tax on foreign earnings
1,983
4,318
Right-of-use assets
2,163
2,167
Unrealized gains
942
203
Other
469
565
Total deferred tax liabilities
5,557
7,253
Net deferred tax assets
$
14,537 $
13,073
As of September 24, 2022, the Company had $4.4 billion in foreign tax credit carryforwards in Ireland and $2.5 billion in
California R&D credit carryforwards, both of which can be carried forward indefinitely. A valuation allowance has been recorded
for the credit carryforwards and a portion of other temporary differences.
Apple Inc. | 2022 Form 10-K | 42
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