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Income Taxes (Tables)

12 Months Ended

Apr. 02, 2016

Income Tax Disclosure [Abstract]

Domestic and foreign pretax income

Domestic and foreign pretax income are as follows:

		Fiscal Years Ended
		April 2, 2016				March 28, 2015				March 29, 2014
		(millions)
Domestic		$	275			$	620			$	710
Foreign		277				367				386
Total income before provision for income taxes		$	552			$	987			$	1,096

Provisions (benefits) for current and deferred income taxes

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

		Fiscal Years Ended
		April 2, 2016				March 28, 2015				March 29, 2014
		(millions)
Current:
Federal(a)		$	88			$	161			$	211
State and local(a)		(3		)		35				51
Foreign		79				78				57
		164				274				319
Deferred:
Federal		(5		)		22				(4		)
State and local		(1		)		3				1
Foreign		(2		)		(14		)		4
		(8		)		11				1
Total provision for income taxes		$	156			$	285			$	320

^(a)  Excludes federal, state, and local tax benefits of approximately $10 million, $8 million, and $34 million in Fiscal 2016, Fiscal 2015, and Fiscal 2014, 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
		April 2, 2016				March 28, 2015				March 29, 2014
		(millions)
Provision for income taxes at the U.S. federal statutory rate		$	193			$	346			$	384
Increase (decrease) due to:
State and local income taxes, net of federal benefit		11				21				29
Foreign income taxed at different rates, net of U.S. foreign tax credits		(33		)		(96		)		(89		)
Unrecognized tax benefits and settlements of tax examinations		(13		)		11				(5		)
Other		(2		)		3				1
Total provision for income taxes		$	156			$	285			$	320
Effective tax rate(a)		28.2		%		28.9		%		29.2		%

^(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:

		April 2, 2016				March 28, 2015
		(millions)
Current deferred tax assets:
Receivable allowances and reserves		$	—			$	64
Deferred compensation		—				32
Inventory basis difference		—				24
Other		—				15
Valuation allowance		—				—
Net current deferred tax assets(a)		—				135
Non-current deferred tax assets (liabilities):
Goodwill and other intangible assets		(217		)		(209		)
Property and equipment		(89		)		(86		)
Deferred compensation		126				76
Lease obligations		88				86
Receivable allowances and reserves		66				—
Inventory basis difference		29				—
Unrecognized tax benefits		21				30
Net operating loss carryforwards		21				19
Deferred rent		17				18
Deferred income		15				12
Accrued expenses		9				—
Cumulative translation adjustment and hedges		8				(1		)
Transfer pricing		6				14
Other		12				7
Valuation allowance		(10		)		(8		)
Net non-current deferred tax assets (liabilities)(b)		102				(42		)
Net deferred tax assets		$	102			$	93

^(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 April 2, 2016 and March 28, 2015 were comprised of non-current deferred tax assets of $119 million and $45 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $17 million and $87 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 2016, Fiscal 2015, and Fiscal 2014 are presented below:

		Fiscal Years Ended
		April 2, 2016				March 28, 2015				March 29, 2014
		(millions)
Unrecognized tax benefits beginning balance		$	69			$	83			$	100
Additions related to current period tax positions		5				5				6
Additions related to prior period tax positions		7				10				12
Reductions related to prior period tax positions		(12		)		(1		)		(13		)	(b)
Reductions related to expiration of statutes of limitations		(7		)		(1		)		(2		)
Reductions related to settlements with taxing authorities		(12		)		(25		)	(a)	(23		)	(b)
Additions (reductions) related to foreign currency translation		—				(2		)		3
Unrecognized tax benefits ending balance		$	50			$	69			$	83

^(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.

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 2016, Fiscal 2015, and Fiscal 2014 are presented below:

		Fiscal Years Ended
		April 2, 2016				March 28, 2015				March 29, 2014
		(millions)
Accrued interest and penalties beginning balance		$	47			$	49			$	50
Net additions charged to expense		4				6				6
Reductions related to prior period tax positions		(15		)		(1		)		(4		)
Reductions related to settlements with taxing authorities		(5		)		(5		)		(5		)
Additions (reductions) related to foreign currency translation		—				(2		)		2
Accrued interest and penalties ending balance		$	31			$	47			$	49

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