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Income Taxes (Tables)

12 Months Ended

Apr. 01, 2017

Income Tax Disclosure [Abstract]

Domestic and foreign pretax income (loss)

Domestic and foreign pretax income (loss) are as follows:

		Fiscal Years Ended
		April 1, 2017				April 2, 2016				March 28, 2015
		(millions)
Domestic		$	(155.3	)		$	274.8			$	620.5
Foreign		50.4				277.0				366.9
Total income (loss) before income taxes		$	(104.9	)		$	551.8			$	987.4

Benefits (provisions) for current and deferred income taxes

Benefits (provisions) for current and deferred income taxes are as follows:

		Fiscal Years Ended
		April 1, 2017				April 2, 2016				March 28, 2015
		(millions)
Current:
Federal(a)		$	29.1			$	(87.9	)		$	(161.2	)
State and local(a)		2.3				3.2				(35.1		)
Foreign		(64.7		)		(78.6		)		(78.4		)
		(33.3		)		(163.3		)		(274.7		)
Deferred:
Federal		25.1				4.6				(21.5		)
State and local		2.9				1.4				(2.6		)
Foreign		10.9				1.9				13.6
		38.9				7.9				(10.5		)
Total income tax benefit (provision)		$	5.6			$	(155.4	)		$	(285.2	)

^(a)  Excludes federal, state, and local tax provisions of $17.3 million in Fiscal 2017 and federal, state, and local tax benefits of $10.2 million and $7.7 million in Fiscal 2016 and Fiscal 2015, 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 1, 2017				April 2, 2016				March 28, 2015
		(millions)
Benefit (provision) for income taxes at the U.S. federal statutory rate		$	36.7			$	(193.2	)		$	(345.6	)
Change due to:
State and local income taxes, net of federal benefit		2.7				(10.9		)		(20.9		)
Foreign income taxed at different rates, net of U.S. foreign tax credits		(25.4		)		33.6				96.1
Unrecognized tax benefits and settlements of tax examinations		0.5				12.7				(11.5		)
Changes in valuation allowance on deferred tax assets		(7.3		)		—				—
Other		(1.6		)		2.4				(3.3		)
Total income tax benefit (provision)		$	5.6			$	(155.4	)		$	(285.2	)
Effective tax rate(a)		5.3		%		28.2		%		28.9		%

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

Deferred taxes

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

		April 1, 2017				April 2, 2016
		(millions)
Goodwill and other intangible assets		$	(217.1	)		$	(217.0	)
Property and equipment		(61.6		)		(89.4		)
Cumulative translation adjustment and hedges		(10.8		)		7.6
Deferred compensation		141.6				126.2
Lease obligations		80.7				87.9
Receivable allowances and reserves		65.8				66.1
Net operating loss carryforwards		64.1				21.4
Inventory basis difference		21.8				29.5
Unrecognized tax benefits		16.0				20.9
Deferred rent		14.3				17.4
Accrued expenses		9.8				8.8
Deferred income		9.0				15.2
Excess foreign tax credits		7.9				—
Transfer pricing		5.6				5.9
Other		5.1				11.9
Valuation allowance		(38.1		)		(10.0		)
Net deferred tax assets (liabilities)(a)		$	114.1			$	102.4

^(a)  The net deferred tax balances as of April 1, 2017 and April 2, 2016 were comprised of non-current deferred tax assets of $125.9 million and $118.7 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $11.8 million and $16.3 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 2017, Fiscal 2016, and Fiscal 2015 are presented below:

		Fiscal Years Ended
		April 1, 2017				April 2, 2016				March 28, 2015
		(millions)
Unrecognized tax benefits beginning balance		$	49.7			$	68.0			$	82.6
Additions related to current period tax positions		5.3				5.0				4.7
Additions related to prior period tax positions		15.3				6.9				10.0
Reductions related to prior period tax positions		(3.4		)		(11.3		)		(1.1		)
Reductions related to expiration of statutes of limitations		(4.1		)		(7.2		)		(0.7		)
Reductions related to settlements with taxing authorities		(12.0		)		(12.0		)		(25.0		)	(a)
Additions (reductions) related to foreign currency translation		(0.9		)		0.3				(2.5		)
Unrecognized tax benefits ending balance		$	49.9			$	49.7			$	68.0

^(a)   Includes a $20.0 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.

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 2017, Fiscal 2016, and Fiscal 2015 are presented below:

		Fiscal Years Ended
		April 1, 2017				April 2, 2016				March 28, 2015
		(millions)
Accrued interest and penalties beginning balance		$	30.9			$	47.6			$	49.7
Net additions charged to expense		2.3				4.0				6.3
Reductions related to prior period tax positions		(18.3		)	(a)	(15.4		)		(1.3		)
Reductions related to settlements with taxing authorities		(0.8		)		(5.3		)		(5.3		)
Additions (reductions) related to foreign currency translation		(1.3		)		—				(1.8		)
Accrued interest and penalties ending balance		$	12.8			$	30.9			$	47.6

^(a)   Includes a $15.9 million reversal of an income tax reserve resulting from a change in tax law that impacted an interest assessment on a prior year withholding tax.

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