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Income Taxes (Tables)

12 Months Ended

Mar. 29, 2014

Income Tax Disclosure [Abstract]

Domestic and foreign pretax income

Domestic and foreign pretax income are as follows:

		Fiscal Years Ended
		March 29, 2014				March 30, 2013				March 31, 2012
		(millions)
Domestic		$	710			$	672			$	618
Foreign		386				417				397
Total income before provision for income taxes		$	1,096			$	1,089			$	1,015

Provisions (benefits) for current and deferred income taxes

Provisions (benefits) for current and deferred income taxes are as follows:

		Fiscal Years Ended
		March 29, 2014				March 30, 2013				March 31, 2012
		(millions)
Current:
Federal(a)		$	211			$	189			$	203
State and local(a)		51				42				51
Foreign		57				94				95
		319				325				349
Deferred:
Federal		(4		)		9				4
State and local		1				5				(2		)
Foreign		4				—				(17		)
		1				14				(15		)
Total provision for income taxes		$	320			$	339			$	334

^(a)  Excludes federal, state, and local tax benefits of approximately $34 million, $41 million, and $40 million in Fiscal 2014, Fiscal 2013, and Fiscal 2012, respectively, resulting from stock-based compensation arrangements. Such amounts were recorded within equity.

Tax rate reconciliation

The differences between income taxes expected at the U.S. federal statutory income tax rate of 35% and income taxes provided are as set forth below:

		Fiscal Years Ended
		March 29, 2014				March 30, 2013				March 31, 2012
		(millions)
Provision for income taxes at the U.S. federal statutory rate		$	384			$	381			$	355
Increase (decrease) due to:
State and local income taxes, net of federal benefit		29				28				28
Foreign income taxed at different rates, net of U.S. foreign tax credits		(89		)		(75		)		(56		)
Unrecognized tax benefits and settlements of tax examinations		(5		)		6				12
Other		1				(1		)		(5		)
Total provision for income taxes		$	320			$	339			$	334
Effective tax rate(a)		29.2		%		31.1		%		32.9		%

^(a) Effective tax rate is calculated by dividing the provision for income taxes by income before provision for income taxes.

Deferred taxes

Significant components of the Company's net deferred tax assets (liabilities) are as follows:

		March 29, 2014				March 30, 2013
		(millions)
Current deferred tax assets:
Receivable allowances and reserves		$	70			$	69
Deferred compensation		31				21
Inventory basis difference		30				19
Other		20				11
Valuation allowance		(1		)		(1		)
Net current deferred tax assets(a)		150				119
Non-current deferred tax assets (liabilities):
Goodwill and other intangible assets		(219		)		(211		)
Property and equipment		(90		)		27
Cumulative translation adjustment and hedges		(8		)		(4		)
Lease obligations		92				—
Deferred compensation		79				68
Unrecognized tax benefits		46				35
Deferred rent		19				20
Deferred income		18				33
Net operating loss carryforwards		17				16
Transfer pricing		16				20
Other		(1		)		—
Valuation allowance		(11		)		(12		)
Net non-current deferred tax liabilities(b)		(42		)		(8		)
Net deferred tax assets		$	108			$	111

^(a)  The net current deferred tax balance as of March 30, 2013 included current deferred tax liabilities of $1 million recorded within accrued expenses and other current liabilities in the consolidated balance sheets.

^(b)  The net non-current deferred tax balances as of March 29, 2014 and March 30, 2013 were comprised of non-current deferred tax assets of $39 million and $22 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $81 million and $30 million, respectively, recorded within other non-current liabilities in the consolidated balance sheets.

Reconciliation of unrecognized tax benefits, excluding interest and penalties

Reconciliations of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for Fiscal 2014, Fiscal 2013, and Fiscal 2012 are presented below:

		Fiscal Years Ended
		March 29, 2014				March 30, 2013				March 31, 2012
		(millions)
Unrecognized tax benefits beginning balance		$	100			$	129			$	125
Additions related to current period tax positions		6				4				4
Additions related to prior period tax positions		12				12				8
Reductions related to prior period tax positions		(13		)	(a)	(32		)	(b)	(4		)
Reductions related to expiration of statutes of limitations		(2		)		(1		)		(2		)
Reductions related to settlements with taxing authorities		(23		)	(a)	(10		)	(b)	—
Additions (reductions) related to foreign currency translation		3				(2		)		(2		)
Unrecognized tax benefits ending balance		$	83			$	100			$	129

^(a)   Includes a $29 million decline in unrecognized tax benefits as a result of the Company's tax settlement agreement reached in Fiscal 2014 for the taxable years ended April 3, 2004 and April 2, 2005.

^(b)   Includes a $34 million decline in unrecognized tax benefits as a result of the Company's tax settlement agreement reached in Fiscal 2013 in connection with a tax examination for the taxable years ended March 29, 2008 through April 3, 2010.

Reconciliation of accrued interest and penalties related to unrecognized tax benefits

Reconciliations of the beginning and ending amounts of accrued interest and penalties related to unrecognized tax benefits for Fiscal 2014, Fiscal 2013, and Fiscal 2012 are presented below:

		Fiscal Years Ended
		March 29, 2014				March 30, 2013				March 31, 2012
		(millions)
Accrued interest and penalties beginning balance		$	50			$	39			$	31
Net additions charged to expense		6				22			(a)	8
Reductions related to prior period tax positions		(4		)		(10		)		—
Reductions related to settlements with taxing authorities		(5		)		(1		)		—
Additions related to foreign currency translation		2				—				—
Accrued interest and penalties ending balance		$	49			$	50			$	39

^(a)  Includes a reserve of $17 million for an interest assessment on a prior year withholding tax. No underlying tax exposure exists. The interest assessed was not material to the Company's consolidated financial statements in any period.

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