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Income Taxes (Tables)

12 Months Ended

Mar. 28, 2015

Income Tax Disclosure [Abstract]

Domestic and foreign pretax income

Domestic and foreign pretax income are as follows:

		Fiscal Years Ended
		March 28, 2015				March 29, 2014				March 30, 2013
		(millions)
Domestic		$	620			$	710			$	672
Foreign		367				386				417
Total income before provision for income taxes		$	987			$	1,096			$	1,089

Provisions (benefits) for current and deferred income taxes

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

		Fiscal Years Ended
		March 28, 2015				March 29, 2014				March 30, 2013
		(millions)
Current:
Federal(a)		$	161			$	211			$	189
State and local(a)		35				51				42
Foreign		78				57				94
		274				319				325
Deferred:
Federal		22				(4		)		9
State and local		3				1				5
Foreign		(14		)		4				—
		11				1				14
Total provision for income taxes		$	285			$	320			$	339

^(a)  Excludes federal, state, and local tax benefits of approximately $8 million, $34 million, and $41 million in Fiscal 2015, Fiscal 2014, and Fiscal 2013, 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 28, 2015				March 29, 2014				March 30, 2013
		(millions)
Provision for income taxes at the U.S. federal statutory rate		$	346			$	384			$	381
Increase (decrease) due to:
State and local income taxes, net of federal benefit		21				29				28
Foreign income taxed at different rates, net of U.S. foreign tax credits		(96		)		(89		)		(75		)
Unrecognized tax benefits and settlements of tax examinations		11				(5		)		6
Other		3				1				(1		)
Total provision for income taxes		$	285			$	320			$	339
Effective tax rate(a)		28.9		%		29.2		%		31.1		%

^(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 28, 2015				March 29, 2014
		(millions)
Current deferred tax assets:
Receivable allowances and reserves		$	64			$	70
Deferred compensation		32				31
Inventory basis difference		24				30
Other		15				20
Valuation allowance		—				(1		)
Net current deferred tax assets(a)		135				150
Non-current deferred tax assets (liabilities):
Goodwill and other intangible assets		(209		)		(219		)
Property and equipment		(86		)		(90		)
Cumulative translation adjustment and hedges		(1		)		(8		)
Lease obligations		86				92
Deferred compensation		76				79
Unrecognized tax benefits		30				46
Net operating loss carryforwards		19				17
Deferred rent		18				19
Transfer pricing		14				16
Deferred income		12				18
Other		7				(1		)
Valuation allowance		(8		)		(11		)
Net non-current deferred tax liabilities(b)		(42		)		(42		)
Net deferred tax assets		$	93			$	108

^(a)  The net current deferred tax balance as of March 28, 2015 included current deferred tax liabilities of $10 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 28, 2015 and March 29, 2014 were comprised of non-current deferred tax assets of $45 million and $39 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $87 million and $81 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 2015, Fiscal 2014, and Fiscal 2013 are presented below:

		Fiscal Years Ended
		March 28, 2015				March 29, 2014				March 30, 2013
		(millions)
Unrecognized tax benefits beginning balance		$	83			$	100			$	129
Additions related to current period tax positions		5				6				4
Additions related to prior period tax positions		10				12				12
Reductions related to prior period tax positions		(1		)		(13		)	(b)	(32		)	(c)
Reductions related to expiration of statutes of limitations		(1		)		(2		)		(1		)
Reductions related to settlements with taxing authorities		(25		)	(a)	(23		)	(b)	(10		)	(c)
Additions (reductions) related to foreign currency translation		(2		)		3				(2		)
Unrecognized tax benefits ending balance		$	69			$	83			$	100

^(a)  Includes a $20 million decline in unrecognized tax benefits as a result of the Company's tax settlement agreement reached in Fiscal 2015 for the taxable years ended April 2, 2011 and April 3, 2012.

^(b)   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.

^(c)   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 2015, Fiscal 2014, and Fiscal 2013 are presented below:

		Fiscal Years Ended
		March 28, 2015				March 29, 2014				March 30, 2013
		(millions)
Accrued interest and penalties beginning balance		$	49			$	50			$	39
Net additions charged to expense		6				6				22			(a)
Reductions related to prior period tax positions		(1		)		(4		)		(10		)
Reductions related to settlements with taxing authorities		(5		)		(5		)		(1		)
Additions (reductions) related to foreign currency translation		(2		)		2				—
Accrued interest and penalties ending balance		$	47			$	49			$	50

^(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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