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Income Taxes (Tables) | 12 Months Ended
--- | ---
Mar. 30, 2024
Income Tax Disclosure [Abstract] |
Domestic and foreign pretax income (loss) | Domestic and foreign pretax income are as follows:
|  | Fiscal Years Ended
|  | March 30, 2024 |  | April 1, 2023 |  | April 2, 2022
|  | (millions)
Domestic |  | $ | 84.6 |  |  | $ | 74.3 |  |  | $ | 180.7 |
Foreign |  | 692.8 |  |  | 617.6 |  |  | 573.9 |
Total income before income taxes |  | $ | 777.4 |  |  | $ | 691.9 |  |  | $ | 754.6 |
Benefits (provisions) for current and deferred income taxes | Provisions for current and deferred income taxes are as follows:
|  | Fiscal Years Ended
|  | March 30, 2024 |  | April 1, 2023 |  | April 2, 2022
|  | (millions)
Current: |  |  |  |  |  |
Federal |  | $ | (17.6) |  |  | $ | (35.7) |  |  | $ | (24.2) |
State and local |  | (15.9) |  |  | 1.4 |  |  | (21.6) |
Foreign |  | (138.7) |  |  | (131.0) |  |  | (154.8) |
|  | (172.2) |  |  | (165.3) |  |  | (200.6) |
Deferred: |  |  |  |  |  |
Federal |  | 2.8 |  |  | 14.3 |  |  | 53.8 |
State and local |  | 2.6 |  |  | (8.0) |  |  | 8.2 |
Foreign |  | 35.7 |  |  | (10.2) |  |  | (15.9) |
|  | 41.1 |  |  | (3.9) |  |  | 46.1 |
Total income tax provision |  | $ | (131.1) |  |  | $ | (169.2) |  |  | $ | (154.5) |
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
|  | March 30, 2024 |  | April 1, 2023 |  | April 2, 2022
|  | (millions)
Provision for income taxes at the U.S. federal statutory rate |  | $ | (163.2) |  |  | $ | (145.3) |  |  | $ | (158.5) |
Change due to: |  |  |  |  |  |
State and local income taxes, net of federal benefit |  | (8.4) |  |  | (6.3) |  |  | (14.5) |
Foreign income taxed at different rates, net of U.S. foreign tax credits |  | 30.5 |  |  | (2.7) |  |  | (2.6) |
Deferred tax adjustments |  | 37.6 |  |  | — |  |  | 8.0 |
Non-creditable foreign taxes |  | (4.5) |  |  | (8.8) |  |  | — |
Foreign-derived intangible income benefit |  | — |  |  | — |  |  | 20.3 |
Changes in valuation allowance on deferred tax assets |  | 0.2 |  |  | (0.2) |  |  | 3.6 |
Unrecognized tax benefits and settlements of tax examinations |  | (21.1) |  |  | (1.2) |  |  | (11.5) |
Compensation-related adjustments |  | (7.1) |  |  | (7.7) |  |  | (9.4) |
Charitable contributions |  | 1.7 |  |  | 2.8 |  |  | 3.7 |
Other |  | 3.2 |  |  | 0.2 |  |  | 6.4 |
Total income tax provision |  | $ | (131.1) |  |  | $ | (169.2) |  |  | $ | (154.5) |
Effective tax rate(a) |  | 16.9 | % |  | 24.5 | % |  | 20.5 | %
(a)Effective tax rate is calculated by dividing the income tax provision by income before income taxes.
Deferred taxes | Significant components of the Company's deferred tax assets and liabilities are as follows:
|  | March 30, 2024 |  | April 1, 2023
|  | (millions)
Lease liabilities |  | $ | 300.0 |  |  | $ | 334.9 |
Goodwill and other intangible assets |  | 123.4 |  |  | (60.2) |
Deferred compensation |  | 54.8 |  |  | 47.4 |
Property and equipment |  | 48.5 |  |  | 39.2 |
Deferred income |  | 46.5 |  |  | 69.8 |
Unrecognized tax benefits |  | 38.6 |  |  | 34.2 |
Inventory basis difference |  | 31.2 |  |  | 30.4 |
Receivable allowances and reserves |  | 27.1 |  |  | 31.4 |
Capitalized software |  | 24.6 |  |  | 14.5 |
Net operating loss carryforwards |  | 9.7 |  |  | 11.7 |
Accrued expenses |  | 7.2 |  |  | 5.5 |
GILTI-related carryforwards |  | 3.4 |  |  | 5.8 |
Lease ROU assets |  | (232.8) |  |  | (259.3) |
Cumulative translation adjustment and hedges |  | (22.0) |  |  | (23.1) |
Undistributed foreign income |  | (16.7) |  |  | (19.5) |
Other |  | 6.5 |  |  | (3.2) |
Valuation allowance |  | (168.7) |  |  | (11.6) |
Net deferred tax assets(a) |  | $ | 281.3 |  |  | $ | 247.9 |
(a)Net deferred tax balances as of March 30, 2024 and April 1, 2023 were comprised of non-current deferred tax assets of $288.3 million and $255.1 million, respectively, recorded within deferred tax assets, and non-current deferred tax liabilities of $7.0 million and $7.2 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 2024, Fiscal 2023, and Fiscal 2022 are presented below:
|  | Fiscal Years Ended
|  | March 30, 2024 |  | April 1, 2023 |  | April 2, 2022
|  | (millions)
Unrecognized tax benefits beginning balance |  | $ | 77.1 |  |  | $ | 75.4 |  |  | $ | 71.4 |
Additions related to current period tax positions |  | 21.7 |  |  | 13.3 |  |  | 21.6 |
Additions related to prior period tax positions |  | 2.4 |  |  | 0.6 |  |  | 8.1 |
Reductions related to prior period tax positions |  | (0.9) |  |  | (4.3) |  |  | (7.6) |
Reductions related to expiration of statutes of limitations |  | (1.0) |  |  | (2.9) |  |  | (1.1) |
Reductions related to settlements with taxing authorities |  | (0.1) |  |  | (4.5) |  |  | (14.8) |
Reductions related to foreign currency translation |  | (0.8) |  |  | (0.5) |  |  | (2.2) |
Unrecognized tax benefits ending balance |  | $ | 98.4 |  |  | $ | 77.1 |  |  | $ | 75.4 |
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 2024, Fiscal 2023, and Fiscal 2022 are presented below:
|  | Fiscal Years Ended
|  | March 30, 2024 |  | April 1, 2023 |  | April 2, 2022
|  | (millions)
Accrued interest and penalties beginning balance |  | $ | 16.7 |  |  | $ | 16.5 |  |  | $ | 20.0 |
Net additions charged to expense |  | 3.9 |  |  | 2.6 |  |  | 2.6 |
Reductions related to prior period tax positions |  | (0.2) |  |  | (1.9) |  |  | (0.9) |
Reductions related to settlements with taxing authorities |  | — |  |  | (0.4) |  |  | (5.0) |
Reductions related to foreign currency translation |  | (0.1) |  |  | (0.1) |  |  | (0.2) |
Accrued interest and penalties ending balance |  | $ | 20.3 |  |  | $ | 16.7 |  |  | $ | 16.5 |

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