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v3.22.1

Income Taxes (Tables) | 12 Months Ended
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Apr. 02, 2022
Income Tax Disclosure [Abstract] |
Domestic and foreign pretax income (loss) | Domestic and foreign pretax income (loss) are as follows:
|  | Fiscal Years Ended
|  | April 2, 2022 |  | March 27, 2021 |  | March 28, 2020
|  | (millions)
Domestic |  | $ | 180.7 |  |  | $ | (285.0) |  |  | $ | (82.9) |
Foreign |  | 573.9 |  |  | 210.2 |  |  | 409.3 |
Total income (loss) before income taxes |  | $ | 754.6 |  |  | $ | (74.8) |  |  | $ | 326.4 |
Benefits (provisions) for current and deferred income taxes | Benefits (provisions) for current and deferred income taxes are as follows:
|  | Fiscal Years Ended
|  | April 2, 2022 |  | March 27, 2021 |  | March 28, 2020
|  | (millions)
Current: |  |  |  |  |  |
Federal |  | $ | (24.2) |  |  | $ | 38.5 |  |  | $ | 1.5 |
State and local |  | (21.6) |  |  | 1.5 |  |  | (19.8) |
Foreign |  | (154.8) |  |  | (50.7) |  |  | (92.6) |
|  | (200.6) |  |  | (10.7) |  |  | (110.9) |
Deferred: |  |  |  |  |  |
Federal |  | 53.8 |  |  | (19.2) |  |  | 18.0 |
State and local |  | 8.2 |  |  | 3.5 |  |  | 5.6 |
Foreign |  | (15.9) |  |  | (19.9) |  |  | 145.2 |
|  | 46.1 |  |  | (35.6) |  |  | 168.8 |
Total income tax benefit (provision) |  | $ | (154.5) |  |  | $ | (46.3) |  |  | $ | 57.9 |
Tax rate reconciliation | The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes provided are as follows:
|  | Fiscal Years Ended
|  | April 2, 2022 |  | March 27, 2021 |  | March 28, 2020
|  | (millions)
Benefit (provision) for income taxes at the U.S. federal statutory rate |  | $ | (158.5) |  |  | $ | 15.7 |  |  | $ | (68.5) |
Change due to: |  |  |  |  |  |
State and local income taxes, net of federal benefit |  | (14.5) |  |  | 6.1 |  |  | (1.5) |
Foreign income taxed at different rates, net of U.S. foreign tax credits |  | (2.6) |  |  | (4.8) |  |  | 24.7 |
Deferred tax adjustments |  | 8.0 |  |  | — |  |  | — |
Foreign-derived intangible income benefit |  | 20.3 |  |  | — |  |  | — |
Changes in valuation allowance on deferred tax assets |  | 3.6 |  |  | (34.9) |  |  | (1.7) |
Unrecognized tax benefits and settlements of tax examinations |  | (11.5) |  |  | (4.6) |  |  | (9.2) |
Swiss Tax Act benefit (expense) |  | — |  |  | (13.8) |  |  | 125.3 |
Compensation-related adjustments |  | (9.4) |  |  | (12.9) |  |  | (10.7) |
Charitable contributions |  | 3.7 |  |  | 7.4 |  |  | 0.2 |
Transfer pricing adjustments |  | — |  |  | (4.1) |  |  | — |
Other |  | 6.4 |  |  | (0.4) |  |  | (0.7) |
Total income tax benefit (provision) |  | $ | (154.5) |  |  | $ | (46.3) |  |  | $ | 57.9 |
Effective tax rate(a) |  | 20.5 | % |  | (61.9 | %) |  | (17.7 | %)
(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 deferred tax assets and liabilities are as follows:
|  | April 2, 2022 |  | March 27, 2021
|  | (millions)
Lease liabilities |  | $ | 349.5 |  |  | $ | 406.6 |
Deferred income |  | 96.0 |  |  | 1.2 |
Net operating loss carryforwards |  | 58.9 |  |  | 59.6 |
Deferred compensation |  | 34.5 |  |  | 49.7 |
Unrecognized tax benefits |  | 31.7 |  |  | 23.3 |
Receivable allowances and reserves |  | 31.2 |  |  | 30.5 |
Inventory basis difference |  | 27.5 |  |  | 44.9 |
Property and equipment |  | 15.7 |  |  | 22.8 |
GILTI-related carryforwards |  | 10.6 |  |  | 34.1 |
Accrued expenses |  | 7.3 |  |  | 13.0 |
Transfer pricing |  | 4.1 |  |  | 4.1 |
Charitable contribution carryforwards |  | 0.4 |  |  | 18.4 |
Lease right-of-use assets |  | (273.1) |  |  | (322.0) |
Goodwill and other intangible assets |  | (53.9) |  |  | (48.2) |
Cumulative translation adjustment and hedges |  | (11.3) |  |  | 4.0 |
Other |  | 7.3 |  |  | 3.2 |
Valuation allowance |  | (45.1) |  |  | (72.0) |
Net deferred tax assets(a) |  | $ | 291.3 |  |  | $ | 273.2 |
(a)Net deferred tax balances as of April 2, 2022 and March 27, 2021 were comprised of non-current deferred tax assets of $303.8 million and $283.9 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $12.5 million and $10.7 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 2022, Fiscal 2021, and Fiscal 2020 are presented below:
|  | Fiscal Years Ended
|  | April 2, 2022 |  | March 27, 2021 |  | March 28, 2020
|  | (millions)
Unrecognized tax benefits beginning balance |  | $ | 71.4 |  |  | $ | 72.7 |  |  | $ | 65.2 |
Additions related to current period tax positions |  | 21.6 |  |  | 3.2 |  |  | 6.0 |
Additions related to prior period tax positions |  | 8.1 |  |  | 8.8 |  |  | 30.5 |
Reductions related to prior period tax positions |  | (7.6) |  |  | (4.2) |  |  | (18.7) |
Reductions related to expiration of statutes of limitations |  | (1.1) |  |  | (2.1) |  |  | (1.2) |
Reductions related to settlements with taxing authorities |  | (14.8) |  |  | (9.6) |  |  | (8.8) |
Additions (reductions) related to foreign currency translation |  | (2.2) |  |  | 2.6 |  |  | (0.3) |
Unrecognized tax benefits ending balance |  | $ | 75.4 |  |  | $ | 71.4 |  |  | $ | 72.7 |
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 2022, Fiscal 2021, and Fiscal 2020 are presented below:
|  | Fiscal Years Ended
|  | April 2, 2022 |  | March 27, 2021 |  | March 28, 2020
|  | (millions)
Accrued interest and penalties beginning balance |  | $ | 20.0 |  |  | $ | 16.2 |  |  | $ | 13.6 |
Net additions charged to expense |  | 2.6 |  |  | 5.5 |  |  | 7.0 |
Reductions related to prior period tax positions |  | (0.9) |  |  | (1.7) |  |  | (1.9) |
Reductions related to settlements with taxing authorities |  | (5.0) |  |  | (0.3) |  |  | (2.5) |
Additions (reductions) related to foreign currency translation |  | (0.2) |  |  | 0.3 |  |  | — |
Accrued interest and penalties ending balance |  | $ | 16.5 |  |  | $ | 20.0 |  |  | $ | 16.2 |

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