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Income Taxes (Tables)

12 Months Ended

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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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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