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Taxes (Tables)

12 Months Ended

Mar. 30, 2019

Income Tax Disclosure [Abstract]

Income Before Provision for Income Taxes

Income before provision for income taxes consisted of the following (in millions):

	Fiscal Years Ended
	March 30, 2019				March 31, 2018				April 1, 2017
U.S.	$	191			$	124			$	229
Non-U.S.	430				618				460
Total income before provision for income taxes	$	621			$	742			$	689

Provision for Income Taxes

The provision for income taxes was as follows (in millions):

	Fiscal Years Ended
	March 30, 2019				March 31, 2018				April 1, 2017
Current
U.S. Federal	$	82		(2)	$	48			$	131
U.S. State	24				16				20
Non-U.S.	44				77				46
Total current	150				141				197
Deferred
U.S. Federal	(34		)	(2)	24			(1)	(34		)
U.S. State	(4		)		1				(5		)
Non-U.S.	(33		)		(16		)		(21		)
Total deferred	(71		)		9				(60		)
Total provision for income taxes	$	79			$	150			$	137

⁽¹⁾  Includes an $18 million provision related to the U.S. Tax Act one time revaluation of deferred tax assets.

⁽²⁾  Includes a $25 million current tax detriment and equal deferred tax benefit related to the U.S. Tax Act impact to business interest disallowance provisions.

Significant Differences Between the Statutory Tax Rates and Company's Effective Tax Rate

The Company’s provision for income taxes for the years ended March 30, 2019, March 31, 2018 and April 1, 2017 was different from the amount computed by applying the statutory U.K. income tax rate to the underlying income from continuing operations before income taxes and equity in net income of affiliates as a result of the following:

	Fiscal Years Ended
	March 30, 2019				March 31, 2018				April 1, 2017
Provision for income taxes at the U.K. statutory tax rate	19.0	%			19.0	%			20.0	%
State and local income taxes, net of federal benefit	0.9	%			0.5	%			1.3	%
Effects of global financing arrangements	(8.1	)%			(15.6	)%			(13.7	)%
U.S. tax reform	—	%			2.0	%	(1	)	—	%
Differences in tax effects on foreign income	(1.8	)%	(2	)	6.7	%			11.1	%
Liability for uncertain tax positions	1.3	%			6.6	%			—	%
Effect of changes in valuation allowances on deferred tax assets	2.8	%	(3	)	0.3	%			0.5	%
Excess tax benefits related to stock-based compensation	(2.6	)%			(0.8	)%			—	%
Transaction costs	1.5	%			0.9	%			—	%
Withholding tax	0.6	%			1.2	%			—	%
Other	(0.9	)%			(0.6	)%			0.7	%
Effective tax rate	12.7	%			20.2	%			19.9	%

⁽¹⁾  Includes an $18 million expense related to the re-measurement of certain net deferred tax assets in connection with U.S. tax reform.

⁽²⁾  Mainly attributable to the United States statutory federal income tax rate change from a blended rate for Fiscal 2018 of 31.54% to 21% in Fiscal 2019.

⁽³⁾  Includes an $11 million detriment related to a United Kingdom capital loss.

Significant Components of Deferred Tax Assets (Liabilities)

Significant components of the Company’s deferred tax assets (liabilities) consist of the following (in millions):

	Fiscal Years Ended
	March 30, 2019				March 31, 2018
Deferred tax assets
Inventories	$	22			$	4
Payroll related accruals	2				2
Deferred rent	34				24
Net operating loss carryforwards	61				31
Stock compensation	13				17
Sales allowances	26				6
Accrued interest	41				—
Other	31				27
	230				111
Valuation allowance	(40		)		(14		)
Total deferred tax assets	190				97
Deferred tax liabilities
Goodwill and intangibles	(534		)		(241		)
Depreciation	18				14
Total deferred tax liabilities	(516		)		(227		)
Net deferred tax liabilities	$	(326	)		$	(130	)

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits Excluding Accrued Interest

A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding accrued interest, for Fiscal 2019, Fiscal 2018 and Fiscal 2017, are presented below (in millions):

	Fiscal Years Ended
	March 30, 2019					March 31, 2018				April 1, 2017
Unrecognized tax benefits beginning balance	$	101				$	27			$	17
Additions related to prior period tax positions	81			(1	)	30				2
Additions related to current period tax positions	21					45				10
Decreases in prior period positions due to lapses in statute of limitations	(1		)			(1		)		(2		)
Decreases related to prior period tax positions	(3		)			—				—
Decreases related to audit settlements	(7		)			—				—
Unrecognized tax benefits ending balance	$	192				$	101			$	27

⁽¹⁾  Primarily relates to the Versace acquisition.

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