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Income Taxes (Tables)

12 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Domestic and foreign pretax income (loss)

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

		Fiscal Years Ended
		March 31, 2018				April 1, 2017				April 2, 2016
		(millions)
Domestic		$	16.4			$	(155.3	)		$	274.8
Foreign		472.8				50.4				277.0
Total income (loss) before income taxes		$	489.2			$	(104.9	)		$	551.8

Benefits (provisions) for current and deferred income taxes

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

		Fiscal Years Ended
		March 31, 2018				April 1, 2017				April 2, 2016
		(millions)
Current:
Federal(a)		$	(154.6	)		$	29.1			$	(87.9	)
State and local(a)		(5.0		)		2.3				3.2
Foreign		(82.7		)		(64.7		)		(78.6		)
		(242.3		)		(33.3		)		(163.3		)
Deferred:
Federal		(64.1		)		25.1				4.6
State and local		(12.6		)		2.9				1.4
Foreign		(7.4		)		10.9				1.9
		(84.1		)		38.9				7.9
Total income tax benefit (provision)		$	(326.4	)		$	5.6			$	(155.4	)

^(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 in Fiscal 2016 resulting from stock-based compensation arrangements. Such amounts were recorded within equity. In Fiscal 2018, the Company adopted ASU 2016-09, which requires such excess tax benefits and shortfalls be reflected prospectively in the income tax benefit (provision) in the statement of operations. See Note 4 for further discussion of the Company's adoption of ASU 2016-09.

Tax rate reconciliation

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

		Fiscal Years Ended
		March 31, 2018				April 1, 2017				April 2, 2016
		(millions)
Benefit (provision) for income taxes at the U.S. federal statutory rate(a)		$	(154.3	)		$	36.7			$	(193.2	)
Change due to:
State and local income taxes, net of federal benefit		(1.6		)		2.7				(10.9		)
Foreign income taxed at different rates, net of U.S. foreign tax credits		74.7				(25.4		)		33.6
Unrecognized tax benefits and settlements of tax examinations		(14.4		)		0.5				12.7
Changes in valuation allowance on deferred tax assets		2.5				(7.3		)		—
TCJA enactment-related charges		(221.4		)		—				—
Stock-based compensation		(15.4		)		—				—
Other		3.5				(1.6		)		2.4
Total income tax benefit (provision)		$	(326.4	)		$	5.6			$	(155.4	)
Effective tax rate(b)		66.7		%		5.3		%		28.2		%

^(a)  The U.S. federal statutory income tax rate for the Company's Fiscal 2017 and Fiscal 2016 was 35.0%. The TCJA reduced the statutory tax rate from 35.0% to 21.0%, effective January 1, 2018, and resulted in a blended statutory rate of 31.5% for the Company's Fiscal 2018.

^(b)  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 deferred tax assets and liabilities are as follows:

		March 31, 2018				April 1, 2017
		(millions)
Goodwill and other intangible assets		$	(149.2	)		$	(217.1	)
Property and equipment		(36.2		)		(61.6		)
Undistributed foreign earnings		(7.1		)		—
Net operating loss carryforwards		54.8				64.1
Lease obligations		49.6				80.7
Deferred compensation		45.7				141.6
Receivable allowances and reserves		38.5				65.8
Inventory basis difference		16.0				21.8
Cumulative translation adjustment and hedges		15.0				(10.8		)
Accrued expenses		12.1				9.8
Unrecognized tax benefits		10.8				16.0
Transfer pricing		9.0				5.6
Deferred rent		6.9				14.3
Deferred income		5.2				9.0
Excess foreign tax credits		—				7.9
Other		14.4				5.1
Valuation allowance		(35.4		)		(38.1		)
Net deferred tax assets(a)		$	50.1			$	114.1

^(a)  The net deferred tax balances as of March 31, 2018 and April 1, 2017 were comprised of non-current deferred tax assets of $86.6 million and $125.9 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $36.5 million and $11.8 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 2018, Fiscal 2017, and Fiscal 2016 are presented below:

		Fiscal Years Ended
		March 31, 2018				April 1, 2017				April 2, 2016
		(millions)
Unrecognized tax benefits beginning balance		$	49.9			$	49.7			$	68.0
Additions related to current period tax positions		6.8				5.3				5.0
Additions related to prior period tax positions		9.5				15.3				6.9
Reductions related to prior period tax positions		(1.3		)		(3.4		)		(11.3		)
Reductions related to expiration of statutes of limitations		(3.3		)		(4.1		)		(7.2		)
Reductions related to settlements with taxing authorities		(0.7		)		(12.0		)		(12.0		)
Additions (reductions) related to foreign currency translation		3.3				(0.9		)		0.3
Unrecognized tax benefits ending balance		$	64.2			$	49.9			$	49.7

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 2018, Fiscal 2017, and Fiscal 2016 are presented below:

		Fiscal Years Ended
		March 31, 2018				April 1, 2017				April 2, 2016
		(millions)
Accrued interest and penalties beginning balance		$	12.8			$	30.9			$	47.6
Net additions charged to expense		3.8				2.3				4.0
Reductions related to prior period tax positions		(1.6		)		(18.3		)	(a)	(15.4		)
Reductions related to settlements with taxing authorities		(0.3		)		(0.8		)		(5.3		)
Additions (reductions) related to foreign currency translation		0.3				(1.3		)		—
Accrued interest and penalties ending balance		$	15.0			$	12.8			$	30.9

^(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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