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Income Taxes | 6 Months Ended
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Oct. 28, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | 12. Income Taxes Our effective tax rates for the periods presented were as follows:
|  | Six Months Ended |
|  | October 28, 2016 |  |  | October 30, 2015 |
Effective tax rates |  |  | 26.1 | % |  |  | 31.1 | %
Our effective tax rates reflect the impact of a significant amount of our earnings, primarily income from our European operations which are headquartered in the Netherlands, being taxed in foreign jurisdictions at rates below the U.S. statutory tax rate. The differences in effective tax rates for the six months ended October 28, 2016 and October 30, 2015 were primarily a result of differences in year-to-date profits before tax and the impacts of discrete events as described below. During the first quarter of fiscal 2017, we adopted a new accounting standard that simplifies stock-based compensation income tax accounting and presentation within the financial statements. During the six months ended October 28, 2016, we recorded discrete charges of $17 million following the post-adoption rules which require that all excess tax benefits and deficiencies from stock-based compensation be recognized as a component of income tax expense. See Note 1 – Description of Business and Significant Accounting Policies for more details regarding the adoption of this accounting standard. In June 2015, the Internal Revenue Service (IRS) signed a closing agreement on our fiscal 2008 to 2010 transfer pricing arrangements and, in October 2015, completed the examination of our fiscal 2008 to 2010 income tax returns. During the six months ended October 30, 2015, we recorded discrete charges totaling $23 million, attributable to the audit settlements and related re-measurement of uncertain tax positions for tax years subject to future audits. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
|  | Six Months Ended |
|  | October 28, 2016 |  |  | October 30, 2015 |
Balance at beginning of period |  | $ | 216 |  |  | $ | 272 |
Additions based on tax positions related to the current year |  |  | 3 |  |  |  | 7 |
Additions for tax positions of prior years |  |  | 5 |  |  |  | 20 |
Decreases for tax positions of prior years |  |  | — |  |  |  | (38 | )
Settlements |  |  | (12 | ) |  |  | (52 | )
Balance at end of period |  | $ | 212 |  |  | $ | 209 |
As of October 28, 2016, we had $212 million of gross unrecognized tax benefits, of which $154 million has been recorded in other long-term liabilities. Unrecognized tax benefits of $156 million, including penalties, interest and indirect benefits, would affect our provision for income taxes if recognized. We are currently undergoing income tax audits in the United States (U.S.) and several foreign tax jurisdictions. Transfer pricing calculations are key issues under audits in various jurisdictions, and are often subject to dispute and appeals. The IRS has concluded the examination of our federal income tax returns for our fiscal years through 2010. The IRS commenced the examination of our federal income tax returns for our fiscal years 2012 and 2013 in August 2016. On September 17, 2010, the Danish Tax Authorities issued a decision concluding that distributions declared in 2005 and 2006 from our Danish subsidiary were subject to Danish at-source dividend withholding tax. We do not believe that our Danish subsidiary is liable for withholding tax and filed an appeal with the Danish Tax Tribunal to that effect. On December 19, 2011, the Danish Tax Tribunal issued a ruling that our Danish subsidiary was not liable for Danish withholding tax. The Danish tax examination agency appealed to the Danish High Court in March 2012. In February 2016, the Danish High Court referred the case to the European Court of Justice. We continue to monitor the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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