XML 57 R38.htm IDEA: XBRL DOCUMENT v3.23.1

Income Taxes (Tables)

12 Months Ended

Apr. 28, 2023

Income Tax Disclosure [Abstract]

Income Before Income Taxes

Income before income taxes is as follows (in millions):

		Year Ended
		April 28, 2023				April 29, 2022				April 30, 2021
Domestic		$	420			$	546			$	433
Foreign			646				549				529
Total		$	1,066			$	1,095			$	962

Provision for Income Taxes

The (benefit) provision for income taxes consists of the following (in millions):

		Year Ended
		April 28, 2023				April 29, 2022				April 30, 2021
Current:
Federal		$	209			$	187			$	82
State			39				55				22
Foreign			150				60				134
Total current			398				302				238
Deferred:
Federal			(44	)			(125	)			6
State			(3	)			(27	)			2
Foreign			(559	)			8				(14	)
Total deferred			(606	)			(144	)			(6	)
(Benefit) provision for income taxes		$	(208	)		$	158			$	232

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 28, 2023				April 29, 2022				April 30, 2021
Tax computed at federal statutory rate		$	224			$	230			$	202
State income taxes, net of federal benefit			24				15				23
Foreign earnings in lower tax jurisdictions			(43	)			(46	)			(26	)
Stock-based compensation			25				(8	)			6
Research and development credits			(24	)			(18	)			(13	)
Benefit for foreign derived intangible income			—				(49	)			(2	)
Global minimum tax on intangible income			61				1				19
Transition tax and related reserves			—				1				1
Tax (benefits) charges from integration of acquired companies			(27	)			23				35
Tax benefit due to IP Transfer			(524	)			—				—
Resolution of income tax matters (1)			71				(3	)			(6	)
Other			5				12				(7	)
(Benefit) provision for income taxes		$	(208	)		$	158			$	232

(1)During fiscal 2023, we recognized tax expense related to a Danish Supreme Court decision related to withholding tax on a 2005 distribution as well as tax expense related to the currently in progress IRS audit of our fiscal 2018 and 2019 U.S. tax returns. During fiscal 2022, we recognized a tax benefit related to the lapse of statute of limitations for certain issues in our fiscal 2012 and 2013 state income tax returns. During fiscal 2021, we recognized a tax benefit related to the lapse of statutes of limitations for certain issues on our fiscal 2016 and 2017 federal income tax returns.

Deferred Tax Assets and Liabilities

The components of our deferred tax assets and liabilities are as follows (in millions):

		April 28, 2023				April 29, 2022
Deferred tax assets:
Reserves and accruals		$	189			$	267
Net operating loss and credit carryforwards			124				121
Stock-based compensation			23				23
Deferred revenue and financed unearned services revenue			264				235
Acquired intangibles			523				—
Capitalized research and development (1)			111				—
Other			10				6
Gross deferred tax assets			1,244				652
Valuation allowance			(113	)			(111	)
Deferred tax assets, net of valuation allowance			1,131				541
Deferred tax liabilities:
Prepaids and accruals			94				108
Acquired intangibles			66				48
Property and equipment			50				39
Other			2				7
Total deferred tax liabilities			212				202
Deferred tax assets, net of valuation allowance and deferred tax liabilities		$	919			$	339

(1)As required under the Tax Cuts and Jobs Act of 2017, research and development expenditures are capitalized and amortized beginning in our fiscal 2023.

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

		Year Ended
		April 28, 2023				April 29, 2022				April 30, 2021
Balance at beginning of period		$	220			$	221			$	211
Additions based on tax positions related to the current year			9				11				7
Additions for tax positions of prior years			1				—				11
Decreases for tax positions of prior years			(5	)			(2	)			—
Settlements			(3	)			(10	)			(8	)
Balance at end of period		$	222			$	220			$	221

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 28, 2023

2016 — 2023		United States — federal income tax
2018 — 2023		United States — state and local income tax
2020 — 2023		Australia
2018 — 2023		Germany
2007 — 2023		India
2017 — 2023		The Netherlands
2016 — 2023		Canada

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(1)(Note 1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI https://asc.fasb.org/extlink&oid=126976462&loc=d3e36027-109320

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=126976462&loc=d3e36027-109320

+ Details

Name:	us-gaap_SummaryOfIncomeTaxExaminationsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration