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Income Taxes (Tables) | 12 Months Ended
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Apr. 24, 2020
Income Tax Disclosure [Abstract] |
Components of Income Before Income Taxes, Based on Jurisdiction | The components of income before income taxes, based on tax jurisdiction, are as follows:
| Fiscal Year |  |  |  |
(in millions) | 2020 |  | 2019 |  | 2018
U.S. | $ | 466 |  |  | $ | 877 |  |  | $ | (958) |
International | 3,589 |  |  | 4,320 |  |  | 6,633 |
Income before income taxes | $ | 4,055 |  |  | $ | 5,197 |  |  | $ | 5,675 |
Income Tax (Benefit) Provision | The income tax (benefit) provision consists of the following:
| Fiscal Year |  |  |  |
(in millions) | 2020 |  | 2019 |  | 2018
Current tax expense: |  |  |  |  |
U.S. | $ | 151 |  |  | $ | 579 |  |  | $ | 2,899 |
International | 375 |  |  | 406 |  |  | 796 |
Total current tax expense | 526 |  |  | 985 |  |  | 3,695 |
Deferred tax expense (benefit): |  |  |  |  |
U.S. | (138) |  |  | (310) |  |  | 45 |
International | (1,139) |  |  | (128) |  |  | (1,160) |
Net deferred tax benefit | (1,277) |  |  | (438) |  |  | (1,115) |
Income tax (benefit) provision | $ | (751) |  |  | $ | 547 |  |  | $ | 2,580 |
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 24, 2020 |  | April 26, 2019
Deferred tax assets: |  |  |
Net operating loss, capital loss, and credit carryforwards | $ | 6,432 |  |  | $ | 6,574 |
Other accrued liabilities | 390 |  |  | 389 |
Accrued compensation | 285 |  |  | 315 |
Pension and post-retirement benefits | 350 |  |  | 300 |
Stock-based compensation | 136 |  |  | 162 |
Other | 338 |  |  | 339 |
Inventory | 191 |  |  | 194 |
Lease obligations | 101 |  |  | — |
Federal and state benefit on uncertain tax positions | 96 |  |  | 83 |
Interest limitation | 236 |  |  | 111 |
Unrealized loss on available-for-sale securities and derivative financial instruments | — |  |  | 17 |
Gross deferred tax assets | 8,555 |  |  | 8,484 |
Valuation allowance | (5,482) |  |  | (6,300) |
Total deferred tax assets | 3,073 |  |  | 2,184 |
Deferred tax liabilities: |  |  |
Intangible assets | (1,017) |  |  | (1,614) |
Realized loss on derivative financial instruments | (65) |  |  | (70) |
Other | (110) |  |  | (152) |
Right of use leases | (97) |  |  | — |
Unrealized gain on available-for-sale securities and derivative financial instruments | (12) |  |  | — |
Accumulated depreciation | (87) |  |  | (38) |
Outside basis difference of subsidiaries | (77) |  |  | (119) |
Total deferred tax liabilities | (1,465) |  |  | (1,993) |
Prepaid income taxes | 449 |  |  | 363 |
Income tax receivables | 381 |  |  | 335 |
Tax assets, net | $ | 2,438 |  |  | $ | 889 |
Reported as (after valuation allowance and jurisdictional netting): |  |  |
Other current assets | $ | 780 |  |  | $ | 648 |
Tax assets | 2,832 |  |  | 1,519 |
Deferred tax liabilities | (1,174) |  |  | (1,278) |
Tax assets, net | $ | 2,438 |  |  | $ | 889 |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s effective income tax rate varied from the U.S. federal statutory tax rate as follows:
| Fiscal Year |  |  |  |
| 2020 |  | 2019 |  | 2018
U.S. federal statutory tax rate | 21.0 | % |  | 21.0 | % |  | 30.5 | %
Increase (decrease) in tax rate resulting from: |  |  |  |  |
U.S. state taxes, net of federal tax benefit | 0.5 |  |  | 0.9 |  |  | 0.8 |
Research and development credit | (2.1) |  |  | (1.2) |  |  | (0.8) |
Puerto Rico Excise Tax | (1.5) |  |  | (1.6) |  |  | (1.1) |
International | (10.0) |  |  | (10.7) |  |  | (18.9) |
U.S. Tax Reform | — |  |  | 0.2 |  |  | 43.0 |
Stock based compensation | (1.5) |  |  | (1.0) |  |  | (1.0) |
Other, net | 0.4 |  |  | (0.5) |  |  | 1.6 |
Interest on uncertain tax positions | 1.3 |  |  | 0.9 |  |  | 1.4 |
Base Erosion Anti-Abuse Tax | 2.6 |  |  | 0.1 |  |  | — |
Foreign Derived Intangible Income Benefit | (1.2) |  |  | (0.6) |  |  | — |
Divestiture-related | — |  |  | (0.4) |  |  | (3.8) |
Certain tax adjustments | (30.8) |  |  | (0.6) |  |  | (8.9) |
U.S. tax on foreign earnings | 2.8 |  |  | 4.0 |  |  | 2.7 |
Effective tax rate | (18.5) | % |  | 10.5 | % |  | 45.5 | %
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 2020, 2019, and 2018 is as follows:
| Fiscal Year |  |  |  |
(in millions) | 2020 |  | 2019 |  | 2018
Gross unrecognized tax benefits at beginning of fiscal year | $ | 1,836 |  |  | $ | 1,727 |  |  | $ | 1,896 |
Gross increases: |  |  |  |  |
Prior year tax positions | 12 |  |  | 34 |  |  | 13 |
Current year tax positions | 55 |  |  | 109 |  |  | 63 |
Gross decreases: |  |  |  |  |
Prior year tax positions | (9) |  |  | (14) |  |  | (120) |
Settlements | (5) |  |  | — |  |  | (80) |
Statute of limitation lapses | (27) |  |  | (20) |  |  | (45) |
Gross unrecognized tax benefits at end of fiscal year | 1,862 |  |  | 1,836 |  |  | 1,727 |
Cash advance paid to taxing authorities | (859) |  |  | (859) |  |  | (859) |
Gross unrecognized tax benefits at end of fiscal year, net of cash advance | $ | 1,003 |  |  | $ | 977 |  |  | $ | 868 |
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 |  | 2005
Australia |  | 2016
Brazil |  | 2015
Canada |  | 2012
China |  | 2009
Costa Rica |  | 2016
Dominican Republic |  | 2017
Germany |  | 2014
India |  | 2002
Ireland |  | 2012
Israel |  | 2010
Italy |  | 2005
Japan |  | 2017
Korea |  | 2017
Luxembourg |  | 2014
Mexico |  | 2007
Puerto Rico |  | 2011
Singapore |  | 2013
Switzerland |  | 2012
United Kingdom |  | 2016

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