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Income Taxes (Tables)

12 Months Ended

Apr. 01, 2023

Income Tax Disclosure [Abstract]

Domestic and foreign pretax income (loss)

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

						Fiscal Years Ended
						April 1, 2023						April 2, 2022						March 27, 2021
						(millions)
Domestic						$	74.3					$	180.7					$	(285.0)
Foreign						617.6						573.9						210.2
Total income (loss) before income taxes						$	691.9					$	754.6					$	(74.8)

Benefits (provisions) for current and deferred income taxes

Provisions for current and deferred income taxes are as follows:

						Fiscal Years Ended
						April 1, 2023						April 2, 2022						March 27, 2021
						(millions)
Current:
Federal						$	(35.7)					$	(24.2)					$	38.5
State and local						1.4						(21.6)						1.5
Foreign						(131.0)						(154.8)						(50.7)
						(165.3)						(200.6)						(10.7)
Deferred:
Federal						14.3						53.8						(19.2)
State and local						(8.0)						8.2						3.5
Foreign						(10.2)						(15.9)						(19.9)
						(3.9)						46.1						(35.6)
Total income tax provision						$	(169.2)					$	(154.5)					$	(46.3)

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 1, 2023						April 2, 2022						March 27, 2021
						(millions)
Benefit (provision) for income taxes at the U.S. federal statutory rate						$	(145.3)					$	(158.5)					$	15.7
Change due to:
State and local income taxes, net of federal benefit						(6.3)						(14.5)						6.1
Foreign income taxed at different rates, net of U.S. foreign tax credits						(2.7)						(2.6)						(4.8)
Deferred tax adjustments						—						8.0						—
Non-creditable foreign taxes						(8.8)						—						—
Foreign-derived intangible income benefit						—						20.3						—
Changes in valuation allowance on deferred tax assets						(0.2)						3.6						(34.9)
Unrecognized tax benefits and settlements of tax examinations						(1.2)						(11.5)						(4.6)
Swiss Tax Act expense						—						—						(13.8)
Compensation-related adjustments						(7.7)						(9.4)						(12.9)
Charitable contributions						2.8						3.7						7.4
Transfer pricing adjustments						—						—						(4.1)
Other						0.2						6.4						(0.4)
Total income tax provision						$	(169.2)					$	(154.5)					$	(46.3)
Effective tax rate(a)						24.5		%				20.5		%				(61.9		%)

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

Deferred taxes

Significant components of the Company's deferred tax assets and liabilities are as follows:

						April 1, 2023						April 2, 2022
						(millions)
Lease liabilities						$	334.9					$	349.5
Deferred income						69.8						96.0
Deferred compensation						47.4						34.5
Property and equipment						39.2						15.7
Unrecognized tax benefits						34.2						31.7
Receivable allowances and reserves						31.4						31.2
Inventory basis difference						30.4						27.5
Capitalized software						14.5						—
Net operating loss carryforwards						11.7						58.9
GILTI-related carryforwards						5.8						10.6
Accrued expenses						5.5						7.3
Transfer pricing						—						4.1
Lease ROU assets						(259.3)						(273.1)
Goodwill and other intangible assets						(60.2)						(53.9)
Cumulative translation adjustment and hedges						(23.1)						(11.3)
Undistributed foreign income						(19.5)						(4.0)
Other						(3.2)						11.7
Valuation allowance						(11.6)						(45.1)
Net deferred tax assets(a)						$	247.9					$	291.3

(a)Net deferred tax balances as of April 1, 2023 and April 2, 2022 were comprised of non-current deferred tax assets of $255.1 million and $303.8 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $7.2 million and $12.5 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 2023, Fiscal 2022, and Fiscal 2021 are presented below:

						Fiscal Years Ended
						April 1, 2023						April 2, 2022						March 27, 2021
						(millions)
Unrecognized tax benefits beginning balance						$	75.4					$	71.4					$	72.7
Additions related to current period tax positions						13.3						21.6						3.2
Additions related to prior period tax positions						0.6						8.1						8.8
Reductions related to prior period tax positions						(4.3)						(7.6)						(4.2)
Reductions related to expiration of statutes of limitations						(2.9)						(1.1)						(2.1)
Reductions related to settlements with taxing authorities						(4.5)						(14.8)						(9.6)
Additions (reductions) related to foreign currency translation						(0.5)						(2.2)						2.6
Unrecognized tax benefits ending balance						$	77.1					$	75.4					$	71.4

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 2023, Fiscal 2022, and Fiscal 2021 are presented below:

						Fiscal Years Ended
						April 1, 2023						April 2, 2022						March 27, 2021
						(millions)
Accrued interest and penalties beginning balance						$	16.5					$	20.0					$	16.2
Net additions charged to expense						2.6						2.6						5.5
Reductions related to prior period tax positions						(1.9)						(0.9)						(1.7)
Reductions related to settlements with taxing authorities						(0.4)						(5.0)						(0.3)
Additions (reductions) related to foreign currency translation						(0.1)						(0.2)						0.3
Accrued interest and penalties ending balance						$	16.7					$	16.5					$	20.0

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