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INCOME TAXES | 12 Months Ended
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Apr. 29, 2012
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) consists of the following:
|  | Fiscal Years
|  | 2012 |  | 2011 |  | 2010
|  | (in millions)
Current income tax expense (benefit): |  |  |  |  |  |
Federal |  | $ | 72.7 |  |  | $ | 57.6 |  |  | $ | (150.2 | )
State |  | 8.4 |  |  | 17.2 |  |  | 2.5 |
Foreign |  | 1.1 |  |  | 3.1 |  |  | (0.8 | )
|  | 82.2 |  |  | 77.9 |  |  | (148.5 | )
Deferred income tax expense (benefit): |  |  |  |  |  |  |  |  |
Federal |  | 82.1 |  |  | 128.3 |  |  | 55.0 |
State |  | 11.2 |  |  | 24.2 |  |  | (23.1 | )
Foreign |  | (3.1 | ) |  | 5.7 |  |  | 3.4 |
|  | 90.2 |  |  | 158.2 |  |  | 35.3 |
Total income tax expense (benefit) |  | $ | 172.4 |  |  | $ | 236.1 |  |  | $ | (113.2 | )
A reconciliation of taxes computed at the federal statutory rate to the provision for income taxes is as follows:
|  | Fiscal Years
|  | 2012 |  | 2011 |  | 2010
Federal income taxes at statutory rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal tax benefit |  | 2.1 |  |  | 3.4 |  |  | 6.5 |
Foreign income taxes |  | (0.2 | ) |  | (1.2 | ) |  | 9.6 |
Unremitted earnings |  | 2.6 |  |  | — |  |  | — |
Net change in uncertain tax positions |  | (2.4 | ) |  | (0.3 | ) |  | (1.3 | )
Net change in valuation allowance |  | (0.9 | ) |  | (3.4 | ) |  | (0.4 | )
Tax credits |  | (1.0 | ) |  | (1.1 | ) |  | 2.3 |
Manufacturer's deduction |  | (1.7 | ) |  | (1.8 | ) |  | — |
Adjustment to goodwill |  | — |  |  | 2.0 |  |  | 1.0 |
Other |  | (1.2 | ) |  | (1.4 | ) |  | — |
Effective tax rate |  | 32.3 | % |  | 31.2 | % |  | 52.7 | %
The unremitted earnings impact to the effective tax rate resulted primarily from the CFG Consolidation Plan. We had income taxes receivable of $101.7 million as of April 29, 2012 in prepaid expenses and other current assets and income taxes payable of $18.8 million as of May 1, 2011 in accrued expenses and other current liabilities. The tax effects of temporary differences consist of the following:
|  | April 29, 2012 |  | May 1, 2011
|  | (in millions)
Deferred tax assets: |  |  |  |
Pension liabilities |  | $ | 256.4 |  |  | $ | 138.6 |
Tax credits, carryforwards and net operating losses |  | 85.6 |  |  | 96.8 |
Accrued expenses |  | 53.2 |  |  | 41.7 |
Employee benefits |  | — |  |  | 11.1 |
Other |  | 30.8 |  |  | 39.6 |
|  | 426.0 |  |  | 327.8 |
Valuation allowance |  | (54.6 | ) |  | (66.8 | )
Total deferred tax assets |  | $ | 371.4 |  |  | $ | 261.0 |
Deferred tax liabilities: |  |  |  |
Property, plant and equipment |  | $ | 385.6 |  |  | $ | 337.4 |
Intangible assets |  | 125.8 |  |  | 108.5 |
Derivatives |  | 31.9 |  |  | 44.7 |
Employee benefits |  | 13.7 |  |  | — |
Investments in subsidiaries |  | 44.6 |  |  | 53.5 |
Total deferred tax liabilities |  | $ | 601.6 |  |  | $ | 544.1 |
The following table presents the classification of deferred taxes in our balance sheets as of April 29, 2012 and May 1, 2011:
|  | April 29, 2012 |  | May 1, 2011
|  | (in millions)
Other current assets |  | $ | 57.4 |  |  | $ | 39.3 |
Other assets |  | 3.2 |  |  | 5.6 |
Accrued expenses and other current liabilities |  | — |  |  | 3.9 |
Other liabilities |  | 290.8 |  |  | 324.1 |
Management makes an assessment to determine if its deferred tax assets are more likely than not to be realized. Valuation allowances are established in the event that management believes the related tax benefits will not be realized. The valuation allowance primarily relates to state credits, state net operating loss carryforwards and losses in foreign jurisdictions for which no tax benefit was recognized. During fiscal 2012, the valuation allowance decreased by $12.2 million resulting primarily from currency translation and deferred tax adjustments with an immaterial amount impacting the effective tax rate. The tax credits, carryforwards and net operating losses expire from fiscal 2013 to 2032. There were foreign subsidiary net earnings that were considered permanently reinvested of $123.6 million and $97.8 million as of April 29, 2012 and May 1, 2011, respectively. It is not reasonably determinable as to the amount of deferred tax liability that would need to be provided if such earnings were not reinvested. A reconciliation of the beginning and ending liability for unrecognized tax benefits is as follows:
|  | (in millions)
Balance, May 2, 2010 |  | $ | 43.2 |
Additions for tax positions taken in the current year |  | 4.9 |
Additions for tax positions taken in prior years |  | 0.9 |
Settlements with taxing authorities |  | (7.3 | )
Lapse of statute of limitations |  | (8.1 | )
Balance, May 1, 2011 |  | 33.6 |
Additions for tax positions taken in the current year |  | 2.4 |
Reduction for tax positions taken in prior years |  | (10.8 | )
Settlements with taxing authorities |  | (9.3 | )
Lapse of statute of limitations |  | (0.6 | )
Balance, April 29, 2012 |  | $ | 15.3 |
We operate in multiple taxing jurisdictions, both within the U.S. and outside of the U.S., and are subject to examination from various tax authorities. The liability for unrecognized tax benefits included $4.7 million and $10.4 million of accrued interest as of April 29, 2012 and May 1, 2011, respectively. We recognized $3.5 million and $0.1 million of net interest income during fiscal 2012 and 2011, respectively, and $0.4 million of net interest expense during fiscal 2010 in income tax expense (benefit). The liability for unrecognized tax benefits included $14.1 million as of April 29, 2012 and $32.6 million as of May 1, 2011, that if recognized, would impact the effective tax rate. We are currently being audited in several tax jurisdictions and remain subject to examination until the statute of limitations expires for the respective tax jurisdiction. Within specific countries, we may be subject to audit by various tax authorities, or subsidiaries operating within the country may be subject to different statute of limitations expiration dates. We have concluded all U.S. federal income tax matters through fiscal 2010. We are currently in appeals for the 2011 tax year and under U.S federal examination for the 2012 tax year. Based upon the expiration of statutes of limitations and/or the conclusion of tax examinations in several jurisdictions as of April 29, 2012, we believe it is reasonably possible that the total amount of previously unrecognized tax benefits may decrease by up to $2.0 million within twelve months of April 29, 2012.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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