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Income Taxes (Tables) | 12 Months Ended
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Apr. 28, 2017
Income Tax Disclosure [Abstract] |
Components of Income from Continuing Operations before Income Taxes, Based on Tax Jurisdiction | The components of income before provision for income taxes, based on tax jurisdiction, are as follows:
| Fiscal Year
(in millions) | 2017 |  | 2016 |  | 2015
U.S. | $ | (234 | ) |  | $ | 333 |  |  | $ | 639 |
International | 4,836 |  |  | 4,003 |  |  | 2,847 |
Income before provision for income taxes | $ | 4,602 |  |  | $ | 4,336 |  |  | $ | 3,486 |
Provision for Income Taxes | The provision for income taxes consists of the following:
| Fiscal Year
(in millions) | 2017 |  | 2016 |  | 2015
Current tax expense: |  |  |  |  |  |  |  |
U.S. | $ | 614 |  |  | $ | 440 |  |  | $ | 1,128 |
International | 840 |  |  | 835 |  |  | 502 |
Total current tax expense | 1,454 |  |  | 1,275 |  |  | 1,630 |
Deferred tax (benefit) expense: |  |  |  |  |  |  |  |
U.S. | (399 | ) |  | (67 | ) |  | (705 | )
International | (477 | ) |  | (410 | ) |  | (114 | )
Net deferred tax benefit | (876 | ) |  | (477 | ) |  | (819 | )
Total provision for income taxes | $ | 578 |  |  | $ | 798 |  |  | $ | 811 |
Schedule of Deferred Tax Assets and Liabilities | Tax assets (liabilities), shown before jurisdictional netting of deferred tax assets (liabilities), are comprised of the following:
(in millions) | April 28, 2017 |  | April 29, 2016
Deferred tax assets: |  |  |  |  |
Net operating loss, capital loss, and credit carryforwards | $ | 6,800 |  |  | $ | 7,568 |
Other accrued liabilities | 658 |  |  | 619 |
Accrued compensation | 427 |  |  | 358 |
Pension and post-retirement benefits | 456 |  |  | 530 |
Stock-based compensation | 278 |  |  | 316 |
Other | 308 |  |  | 341 |
Inventory | 277 |  |  | 225 |
Federal and state benefit on uncertain tax positions | 191 |  |  | 308 |
Unrealized loss on available-for-sale securities and derivative financial instruments | — |  |  | 107 |
Gross deferred tax assets | 9,395 |  |  | 10,372 |
Valuation allowance | (6,311 | ) |  | (7,032 | )
Total deferred tax assets | 3,084 |  |  | 3,340 |
Deferred tax liabilities: |  |  |  |  |
Intangible assets | (4,943 | ) |  | (5,173 | )
Basis impairment | — |  |  | (230 | )
Realized loss on derivative financial instruments | (112 | ) |  | (112 | )
Other | (74 | ) |  | (179 | )
Accumulated depreciation | (149 | ) |  | (189 | )
Unrealized gain on available-for-sale securities and derivative financial instruments | (18 | ) |  | — |
Outside basis difference of subsidiaries | (112 | ) |  | — |
Total deferred tax liabilities | (5,408 | ) |  | (5,883 | )
Prepaid income taxes | 475 |  |  | 365 |
Income tax receivables | 218 |  |  | 529 |
Tax liabilities, net | $ | (1,631 | ) |  | $ | (1,649 | )
Reported as (after valuation allowance and jurisdictional netting): |  |  |  |  |
Prepaid expenses and other current assets | $ | 545 |  |  | $ | 697 |
Tax assets | 1,509 |  |  | 1,383 |
Deferred tax liabilities | (2,978 | ) |  | (3,729 | )
Noncurrent liabilities held for sale | (707 | ) |  | — |
Tax liabilities, net | $ | (1,631 | ) |  | $ | (1,649 | )
Schedule of Effective Income Tax Rate Reconciliation | The Company’s effective income tax rate from continuing operations varied from the U.S. federal statutory tax rate as follows:
| Fiscal Year
| 2017 |  | 2016 |  | 2015
U.S. federal statutory tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Increase (decrease) in tax rate resulting from: |  |  |  |  |  |  |  |
U.S. state taxes, net of federal tax benefit | 1.0 |  |  | 0.9 |  |  | 0.8 |
Research and development credit | (0.9 | ) |  | (1.2 | ) |  | (0.7 | )
Domestic production activities | (0.4 | ) |  | (0.3 | ) |  | (0.4 | )
International | (27.1 | ) |  | (23.4 | ) |  | (24.3 | )
Puerto Rico Excise Tax | (1.5 | ) |  | (1.6 | ) |  | (1.7 | )
Impact of adjustments(1) | 5.7 |  |  | 11.4 |  |  | 13.3 |
Valuation allowance release | (1.0 | ) |  | (0.9 | ) |  | — |
Other, net | 1.8 |  |  | (1.5 | ) |  | 1.3 |
Effective tax rate | 12.6 | % |  | 18.4 | % |  | 23.3 | %
(1) | Adjustments include the impact of inventory step-up, impact of product technology upgrade commitment, special charge (gain), net, restructuring charges, net, certain litigation charges, acquisition-related items, amortization of intangible assets, loss on previously held forward starting interest rate swaps, debt tender premium, impact of acquisition on interest expense, and certain tax adjustments, net.
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2017, 2016, and 2015 is as follows:
| Fiscal Year
(in millions) | 2017 |  | 2016 |  | 2015
Gross unrecognized tax benefits at beginning of fiscal year | $ | 2,703 |  |  | $ | 2,860 |  |  | $ | 1,172 |
Gross increases: |  |  |  |  |  |  |  |
Prior year tax positions | 147 |  |  | 36 |  |  | 331 |
Current year tax positions | 75 |  |  | 202 |  |  | 231 |
Acquisitions | 4 |  |  | — |  |  | 1,199 |
Gross decreases: |  |  |  |  |  |  |  |
Prior year tax positions | (538 | ) |  | (116 | ) |  | (40 | )
Settlements | (467 | ) |  | (275 | ) |  | (33 | )
Statute of limitation lapses | (28 | ) |  | (4 | ) |  | — |
Gross unrecognized tax benefits at end of fiscal year | 1,896 |  |  | 2,703 |  |  | 2,860 |
Cash advance paid in connection with proposed settlements | — |  |  | (384 | ) |  | (378 | )
Gross unrecognized tax benefits at end of fiscal year, net of cash advance | $ | 1,896 |  |  | $ | 2,319 |  |  | $ | 2,482 |
Major Tax Jurisdictions Which Remain Subject to Examination | The major tax jurisdictions where the Company conducts business which remain subject to examination are as follows:
Jurisdiction |  | Earliest Year Open
United States - federal and state |  | 1997
Brazil |  | 2012
Canada |  | 2008
China |  | 2009
Costa Rica |  | 2013
Dominican Republic |  | 2013
France |  | 2011
Germany |  | 2010
India |  | 2001
Ireland |  | 2011
Israel |  | 2010
Italy |  | 2005
Japan |  | 2010
Luxembourg |  | 2012
Mexico |  | 2005
Puerto Rico |  | 2009
Singapore |  | 2011
Switzerland |  | 2011
United Kingdom |  | 2014

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