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v3.20.1

Income Taxes (Tables) | 12 Months Ended
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Mar. 28, 2020
Income Tax Disclosure [Abstract] |
Domestic and foreign pretax income (loss) | Domestic and foreign pretax income are as follows:
|  | Fiscal Years Ended
|  | March 28, 2020 |  | March 30, 2019 |  | March 31, 2018
|  | (millions)
Domestic |  | $ | (82.9 | ) |  | $ | 66.6 |  |  | $ | 16.4 |
Foreign |  | 409.3 |  |  | 515.9 |  |  | 472.8 |
Total income before income taxes |  | $ | 326.4 |  |  | $ | 582.5 |  |  | $ | 489.2 |
Benefits (provisions) for current and deferred income taxes | Benefits (provisions) for current and deferred income taxes are as follows:
|  | Fiscal Years Ended
|  | March 28, 2020 |  | March 30, 2019 |  | March 31, 2018
|  | (millions)
Current: |  |  |  |  |  |
Federal |  | $ | 1.5 |  |  | $ | (37.3 | ) |  | $ | (154.6 | )
State and local |  | (19.8 | ) |  | (11.9 | ) |  | (5.0 | )
Foreign |  | (92.6 | ) |  | (93.9 | ) |  | (82.7 | )
|  | (110.9 | ) |  | (143.1 | ) |  | (242.3 | )
Deferred: |  |  |  |  |  |
Federal |  | 18.0 |  |  | (5.0 | ) |  | (64.1 | )
State and local |  | 5.6 |  |  | (6.9 | ) |  | (12.6 | )
Foreign |  | 145.2 |  |  | 3.4 |  |  | (7.4 | )
|  | 168.8 |  |  | (8.5 | ) |  | (84.1 | )
Total income tax benefit (provision) |  | $ | 57.9 |  |  | $ | (151.6 | ) |  | $ | (326.4 | )
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 28, 2020 |  | March 30, 2019 |  | March 31, 2018
|  | (millions)
Provision for income taxes at the U.S. federal statutory rate(a) |  | $ | (68.5 | ) |  | $ | (122.3 | ) |  | $ | (154.3 | )
Change due to: |  |  |  |  |  |
State and local income taxes, net of federal benefit |  | (1.5 | ) |  | (12.4 | ) |  | (1.6 | )
Foreign income taxed at different rates, net of U.S. foreign tax credits |  | 24.7 |  |  | 27.6 |  |  | 74.7 |
Unrecognized tax benefits and settlements of tax examinations |  | (9.2 | ) |  | (3.4 | ) |  | (14.4 | )
Changes in valuation allowance on deferred tax assets |  | (1.7 | ) |  | (1.4 | ) |  | 2.5 |
TCJA enactment-related charges |  | — |  |  | (27.6 | ) |  | (221.4 | )
Swiss Tax Act benefit |  | 125.3 |  |  | — |  |  | — |
Compensation-related adjustments |  | (10.7 | ) |  | (11.6 | ) |  | (15.4 | )
Other |  | (0.5 | ) |  | (0.5 | ) |  | 3.5 |
Total income tax benefit (provision) |  | $ | 57.9 |  |  | $ | (151.6 | ) |  | $ | (326.4 | )
Effective tax rate(b) |  | (17.7 | %) |  | 26.0 | % |  | 66.7 | %
(a) | The U.S. federal statutory income tax rate was 21.0% during Fiscal 2020 and Fiscal 2019. The previous statutory rate of 35.0% was reduced to 21.0% by the TCJA effective January 1, 2018, resulting 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 28, 2020 |  | March 30, 2019
|  | (millions)
Lease liabilities |  | $ | 428.9 |  |  | $ | 44.6 |
Inventory basis difference |  | 54.0 |  |  | 19.0 |
Deferred compensation |  | 50.2 |  |  | 53.4 |
Receivable allowances and reserves |  | 45.6 |  |  | 25.6 |
Net operating loss carryforwards |  | 42.6 |  |  | 48.9 |
Unrecognized tax benefits |  | 17.1 |  |  | 8.1 |
Accrued expenses |  | 10.5 |  |  | 11.8 |
Transfer pricing |  | 9.0 |  |  | 9.0 |
Property and equipment |  | 3.0 |  |  | (24.6 | )
Deferred income |  | 0.2 |  |  | 1.2 |
Deferred rent |  | — |  |  | 7.3 |
Lease right-of-use assets |  | (353.0 | ) |  | — |
Goodwill and other intangible assets |  | (30.0 | ) |  | (149.8 | )
Cumulative translation adjustment and hedges |  | (17.6 | ) |  | (7.8 | )
Undistributed foreign earnings |  | (3.3 | ) |  | (4.7 | )
Other |  | 15.3 |  |  | 13.2 |
Valuation allowance |  | (37.3 | ) |  | (38.4 | )
Net deferred tax assets(a) |  | $ | 235.2 |  |  | $ | 16.8 |
(a) Net deferred tax balances as of March 28, 2020 and March 30, 2019 were comprised of non-current deferred tax assets of $245.2 million and $67.0 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $10.0 million and $50.2 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 2020, Fiscal 2019, and Fiscal 2018 are presented below:
|  | Fiscal Years Ended
|  | March 28, 2020 |  | March 30, 2019 |  | March 31, 2018
|  | (millions)
Unrecognized tax benefits beginning balance |  | $ | 65.2 |  |  | $ | 64.2 |  |  | $ | 49.9 |
Additions related to current period tax positions |  | 6.0 |  |  | 4.9 |  |  | 6.8 |
Additions related to prior period tax positions |  | 30.5 |  |  | 11.7 |  |  | 9.5 |
Reductions related to prior period tax positions |  | (18.7 | ) |  | (5.5 | ) |  | (1.3 | )
Reductions related to expiration of statutes of limitations |  | (1.2 | ) |  | (4.1 | ) |  | (3.3 | )
Reductions related to settlements with taxing authorities |  | (8.8 | ) |  | (3.1 | ) |  | (0.7 | )
Additions (reductions) related to foreign currency translation |  | (0.3 | ) |  | (2.9 | ) |  | 3.3 |
Unrecognized tax benefits ending balance |  | $ | 72.7 |  |  | $ | 65.2 |  |  | $ | 64.2 |
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 2020, Fiscal 2019, and Fiscal 2018 are presented below:
|  | Fiscal Years Ended
|  | March 28, 2020 |  | March 30, 2019 |  | March 31, 2018
|  | (millions)
Accrued interest and penalties beginning balance |  | $ | 13.6 |  |  | $ | 15.0 |  |  | $ | 12.8 |
Net additions charged to expense |  | 7.0 |  |  | 3.0 |  |  | 3.8 |
Reductions related to prior period tax positions |  | (1.9 | ) |  | (3.4 | ) |  | (1.6 | )
Reductions related to settlements with taxing authorities |  | (2.5 | ) |  | (0.8 | ) |  | (0.3 | )
Additions (reductions) related to foreign currency translation |  | — |  |  | (0.2 | ) |  | 0.3 |
Accrued interest and penalties ending balance |  | $ | 16.2 |  |  | $ | 13.6 |  |  | $ | 15.0 |

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