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Income Taxes (Tables)

12 Months Ended

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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