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Income Taxes (Tables) | 12 Months Ended
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Apr. 24, 2020
Income Tax Disclosure [Abstract] |
Income Before Income Taxes | Income before income taxes is as follows (in millions):
|  | Year Ended |
|  | April 24, 2020 |  |  | April 26, 2019 |  |  | April 27, 2018 |
Domestic |  | $ | 379 |  |  | $ | 678 |  |  | $ | 589 |
Foreign |  |  | 565 |  |  |  | 590 |  |  |  | 610 |
Total |  | $ | 944 |  |  | $ | 1,268 |  |  | $ | 1,199 |
Provision for Income Taxes | The provision for income taxes consists of the following (in millions):
|  | Year Ended |
|  | April 24, 2020 |  |  | April 26, 2019 |  |  | April 27, 2018 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 83 |  |  | $ | 26 |  |  | $ | 764 |
State |  |  | 9 |  |  |  | 27 |  |  |  | 10 |
Foreign |  |  | 50 |  |  |  | 49 |  |  |  | 39 |
Total current |  |  | 142 |  |  |  | 102 |  |  |  | 813 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (26 | ) |  |  | 35 |  |  |  | 239 |
State |  |  | (6 | ) |  |  | (6 | ) |  |  | 27 |
Foreign |  |  | 15 |  |  |  | (32 | ) |  |  | 4 |
Total deferred |  |  | (17 | ) |  |  | (3 | ) |  |  | 270 |
Provision for income taxes |  | $ | 125 |  |  | $ | 99 |  |  | $ | 1,083 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate as follows (in millions):
|  | Year Ended |
|  | April 24, 2020 |  |  | April 26, 2019 |  |  | April 27, 2018 |
Tax computed at federal statutory rate |  | $ | 198 |  |  | $ | 266 |  |  | $ | 366 |
State income taxes, net of federal benefit |  |  | 10 |  |  |  | 16 |  |  |  | 18 |
Foreign earnings in lower tax jurisdictions (1) |  |  | (40 | ) |  |  | (84 | ) |  |  | (108 | )
Stock-based compensation |  |  | (4 | ) |  |  | (19 | ) |  |  | (23 | )
Research and development credits |  |  | (16 | ) |  |  | (17 | ) |  |  | (10 | )
Global minimum tax on intangible income |  |  | 32 |  |  |  | 22 |  |  |  | — |
Transition tax and related reserves |  |  | 15 |  |  |  | (5 | ) |  |  | 732 |
Tax rate changes |  |  | — |  |  |  | — |  |  |  | 108 |
Resolution of income tax matters (2) |  |  | (61 | ) |  |  | (48 | ) |  |  | — |
Non-taxable gain on joint venture formation |  |  | — |  |  |  | (14 | ) |  |  | — |
Domestic production activities deduction |  |  | — |  |  |  | (13 | ) |  |  | (7 | )
Other |  |  | (9 | ) |  |  | (5 | ) |  |  | 7 |
Provision for income taxes |  | $ | 125 |  |  | $ | 99 |  |  | $ | 1,083 |
| (1) | For fiscal 2020, 2019 and 2018, we generated foreign earnings in lower tax jurisdictions primarily related to income from our European operations.
| (2) | During fiscal 2020, we recognized a tax benefit related to the lapse of statutes of limitations on our fiscal 2014 and 2015 federal income tax returns. During fiscal 2019, the Internal Revenue Service completed the examination of our fiscal 2012 to fiscal 2013 federal income tax returns, and we recognized a tax benefit attributable to the effective settlement and the release of related tax reserves.
Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities are as follows (in millions):
|  | April 24, 2020 |  |  | April 26, 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Reserves and accruals |  | $ | 72 |  |  | $ | 50 |
Net operating loss and credit carryforwards |  |  | 113 |  |  |  | 139 |
Stock-based compensation |  |  | 15 |  |  |  | 16 |
Deferred revenue |  |  | 242 |  |  |  | 205 |
Other |  |  | 14 |  |  |  | 16 |
Gross deferred tax assets |  |  | 456 |  |  |  | 426 |
Valuation allowance |  |  | (104 | ) |  |  | (123 | )
Deferred tax assets, net of valuation allowance |  |  | 352 |  |  |  | 303 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Prepaids and accruals |  |  | 49 |  |  |  | 31 |
Acquired intangibles |  |  | 40 |  |  |  | 32 |
Property and equipment |  |  | 33 |  |  |  | 31 |
Other |  |  | 20 |  |  |  | 10 |
Total deferred tax liabilities |  |  | 142 |  |  |  | 104 |
Deferred tax assets, net of valuation allowance and deferred tax liabilities |  | $ | 210 |  |  | $ | 199 |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
|  | Year Ended |
|  | April 24, 2020 |  |  | April 26, 2019 |  |  | April 27, 2018 |
Balance at beginning of period |  | $ | 296 |  |  | $ | 348 |  |  | $ | 218 |
Additions based on tax positions related to the current year |  |  | 5 |  |  |  | 11 |  |  |  | 131 |
Additions for tax positions of prior years |  |  | 1 |  |  |  | 26 |  |  |  | — |
Decreases for tax positions of prior years |  |  | (10 | ) |  |  | (35 | ) |  |  | (1 | )
Settlements |  |  | (81 | ) |  |  | (54 | ) |  |  | — |
Balance at end of period |  | $ | 211 |  |  | $ | 296 |  |  | $ | 348 |
Summary of Tax Years Remain Subject to Examinations under Major Tax Jurisdictions | The tax years that remain subject to examination for our major tax jurisdictions are shown below: Fiscal Years Subject to Examination for Major Tax Jurisdictions at April 24, 2020
2016 — 2020 |  | United States — federal income tax
2011 — 2020 |  | United States — state and local income tax
2013 — 2020 |  | Australia
2015 — 2020 |  | Germany
2007 — 2020 |  | India
2013 — 2020 |  | Japan
2014 — 2020 |  | The Netherlands
2017 — 2020 |  | United Kingdom
2016 — 2020 |  | Canada

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- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320 + Details
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