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Taxes (Tables) | 12 Months Ended
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Mar. 28, 2020
Income Tax Disclosure [Abstract] |
Income Before Provision for Income Taxes | (Loss) income before provision for income taxes consisted of the following (in millions):
| Fiscal Years Ended |  |  |  |
| March 28, 2020 |  | March 30, 2019 |  | March 31, 2018
U.S. | $ | (28) |  |  | $ | 191 |  |  | $ | 124 |
Non-U.S. | (187) |  |  | 430 |  |  | 618 |
Total (loss) income before provision for income taxes | $ | (215) |  |  | $ | 621 |  |  | $ | 742 |
Provision for Income Taxes | The provision for income taxes was as follows (in millions):
| Fiscal Years Ended |  |  |  |  |
| March 28, 2020 |  | March 30, 2019 |  | March 31, 2018 |
Current |  |  |  |  |  |
U.S. Federal | $ | 4 |  | (3) |  | $ | 82 |  | (2) | $ | 48 |  |
U.S. State | 19 |  |  | 24 |  |  | 16 |  |
Non-U.S. | 60 |  |  | 44 |  |  | 77 |  |
Total current | 83 |  |  | 150 |  |  | 141 |  |
Deferred |  |  |  |  |  |
U.S. Federal | (22) |  |  |  | (34) |  | (2) | 24 |  | (1)
U.S. State | (3) |  |  | (4) |  |  | 1 |  |
Non-U.S. | (48) |  |  | (33) |  |  | (16) |  |
Total deferred | (73) |  |  | (71) |  |  | 9 |  |
Total provision for income taxes | $ | 10 |  |  | $ | 79 |  |  | $ | 150 |  |
(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 provision and equal deferred tax benefit related to the U.S. Tax Act impact to business interest disallowance provisions. (3)Includes a $35 million current tax benefit due to a release of income tax reserves in the U.S.
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 28, 2020, March 30, 2019 and March 31, 2018 was different from the amount computed by applying the statutory U.K. income tax rate to the underlying (loss) income from operations before income taxes as a result of the following:
| Fiscal Years Ended |  |  |  |  |
| March 28, 2020 |  | March 30, 2019 |  | March 31, 2018 |
Provision for income taxes at the U.K. statutory tax rate | 19.0 | % |  | 19.0 | % |  | 19.0 | % |
State and local income taxes, net of federal benefit | (1.9) | % |  | 0.9 | % |  | 0.5 | % |
Effects of global financing arrangements | 21.7 | % | (4) |  | (8.1) | % |  | (15.6) | % |
U.S. tax reform | — | % |  | — | % |  | 2.0 | % | (1)
Differences in tax effects on foreign income | 1.2 | % |  |  | (1.8) | % | (2) | 6.7 | % |
Liability for uncertain tax positions | 5.7 | % |  | 1.3 | % |  | 6.6 | % |
Effect of changes in valuation allowances on deferred tax assets | (30.9) | % | (5) |  | 2.8 | % | (3) | 0.3 | % |
Excess tax benefits related to stock-based compensation | (4.2) | % |  | (2.6) | % |  | (0.8) | % |
Transaction costs | — | % |  | 1.5 | % |  | 0.9 | % |
Withholding tax | (1.6) | % |  | 0.6 | % |  | 1.2 | % |
Nondeductible goodwill impairment | (15.1) | % | (6) |  | — | % |  | — | % |
Other | 1.4 | % |  | (0.9) | % |  | (0.6) | % |
Effective tax rate | (4.7) | % |  | 12.7 | % |  | 20.2 | % |
(1)Includes an $18 million expense related to the re-measurement of certain net deferred tax assets in connection with U.S. Tax Act. (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 provision related to a United Kingdom capital loss. (4)Mainly attributable to pre-tax loss position in Fiscal 2020 (5)Mainly attributable to valuation allowances established on a portion of Non-US deferred tax assets (6)Attributable to the Jimmy Choo brand intangible that was impaired in Fiscal 2020
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 28, 2020 |  | March 30, 2019
Deferred tax assets |  |  |
Operating lease liabilities | 521 |  |  | — |
Net operating loss carryforwards | 109 |  |  | 61 |
Accrued Interest | 40 |  |  | 41 |
Sales allowances | 37 |  |  | 26 |
Inventories | 34 |  |  | 22 |
Depreciation | 33 |  |  | 18 |
Stock compensation | 13 |  |  | 13 |
Payroll related accruals | 3 |  |  | 2 |
Deferred rent | — |  |  | 34 |
Other | — |  |  | 31 |
| 790 |  |  | 248 |
Valuation allowance | (134) |  |  | (40) |
Total deferred tax assets | 656 |  |  | 208 |
Deferred tax liabilities |  |  |
Goodwill and intangibles | (481) |  |  | (534) |
Operating lease right-of-use-assets | (401) |  |  | — |
Other | (14) |  |  | — |
Total deferred tax liabilities | (896) |  |  | (534) |
Net deferred tax liabilities | $ | (240) |  |  | $ | (326) |
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 2020, Fiscal 2019 and Fiscal 2018, are presented below (in millions):
| Fiscal Years Ended |  |  |  |
| March 28, 2020 |  | March 30, 2019 |  | March 31, 2018
Unrecognized tax benefits beginning balance | $ | 192 |  |  | $ | 101 |  |  | $ | 27 |
Additions related to prior period tax positions | 29 |  |  |  | 81 |  | (1) | 30 |
Additions related to current period tax positions | 4 |  |  | 21 |  |  | 45 |
Decreases in prior period positions due to lapses in statute of limitations | (3) |  |  | (1) |  |  | (1) |
Decreases related to prior period tax positions | (99) |  | (2) |  | (3) |  |  | — |
Decreases related to audit settlements | (24) |  | (3) |  | (7) |  |  | — |
Unrecognized tax benefits ending balance | $ | 99 |  |  | $ | 192 |  |  | $ | 101 |
(1)Primarily relates to the Versace acquisition. (2)Primarily relates to releases of North American and European tax reserves (3)Primarily relates to US audit effective settlement

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