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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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