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Taxes (Tables) | 12 Months Ended
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Apr. 02, 2022
Income Tax Disclosure [Abstract] |
Income Before Provision for Income Taxes | Income (loss) before provision for income taxes consisted of the following (in millions):
| Fiscal Years Ended
| April 2, 2022 |  | March 27, 2021 |  | March 28, 2020
United States | $ | 247 |  |  | $ | (56) |  |  | $ | (28) |
Non-United States | 668 |  |  | 59 |  |  | (187) |
Total income (loss) before provision for income taxes | $ | 915 |  |  | $ | 3 |  |  | $ | (215) |
Provision for Income Taxes | The provision for income taxes was as follows (in millions):
| Fiscal Years Ended |
| April 2, 2022 |  | March 27, 2021 |  | March 28, 2020 |
Current |  |  |  |  |  |
United States - Federal | $ | 36 |  |  | $ | 35 |  |  | $ | 4 |  | (1)
United States - State | 16 |  |  | 20 |  |  | 19 |  |
Non-United States | 98 |  |  | 81 |  |  | 60 |  |
Total current | 150 |  |  | 136 |  |  | 83 |  |
Deferred |  |  |  |  |  |
United States - Federal | 24 |  | (2) | (37) |  |  | (22) |  |
United States - State | 7 |  |  | (4) |  |  | (3) |  |
Non-United States | (89) |  | (3) | (29) |  |  | (48) |  |
Total deferred | (58) |  |  | (70) |  |  | (73) |  |
Total provision for income taxes | $ | 92 |  |  | $ | 66 |  |  | $ | 10 |  |
(1)Includes a $35 million current tax benefit due to a release of income tax reserves in the United States. (2)Impact of United States tax accounting method change filed during Fiscal 2022 with respect to cost capitalization. (3)Includes an Italian valuation allowance reversal during Fiscal 2022.
Significant Differences Between the Statutory Tax Rates and Company's Effective Tax Rate | The Company’s provision for income taxes for the years ended April 2, 2022, March 27, 2021 and March 28, 2020 was different from the amount computed by applying the statutory U.K. income tax rates to the underlying income (loss) before provision for income taxes as a result of the following (amounts in millions):
| Fiscal Years Ended |
| April 2, 2022 |  | March 27, 2021 |  | March 28, 2020 |
| Amount |  | % (1) |  | Amount |  | % (1) |  | Amount |  | % (1) |
Provision for income taxes at the U.K. statutory tax rate | $ | 174 |  |  | 19.0 | % |  | $ | 1 |  |  | 19.0 | % |  | (41) |  |  | 19.0 | % |
Effect of changes in valuation allowances on deferred tax assets | (67) |  |  | (7.3) | % |  | 24 |  |  | 955.7 | % |  | 67 |  |  | (30.9) | % | (2)
Effects of global financing arrangements | (56) |  |  | (6.1) | % |  | (24) |  |  | (953.4) | % |  | (41) |  |  | 21.7 | % | (3)
Brand tax basis step-up | (46) |  |  | (5.0) | % |  | — |  |  | — | % |  | — |  |  | — | % |
CARES Act tax loss carryback | (43) |  |  | (4.6) | % |  | — |  |  | — | % |  | — |  |  | — | % |
Liability for uncertain tax positions | 91 |  |  | 9.9 | % |  | 11 |  |  | 414.2 | % |  | (12) |  |  | 5.7 | % |
Tax rate change impact on deferred items | 21 |  |  | 2.1 | % |  | 9 |  |  | 351.3 | % |  | — |  |  | — | % |
State and local income taxes, net of federal benefit | 12 |  |  | 1.3 | % |  | 5 |  |  | 201.5 | % |  | 4 |  |  | (1.9) | % |
Differences in tax effects on foreign income | 10 |  |  | 1.1 | % |  | 13 |  |  | 522.4 | % |  | (7) |  |  | 1.2 | % |
Withholding tax | 5 |  |  | 0.6 | % |  | 4 |  |  | 165.0 | % |  | 3 |  |  | (1.6) | % |
Share based compensation | 3 |  |  | 0.4 | % |  | 6 |  |  | 247.7 | % |  | 9 |  |  | (4.2) | % |
Non-deductible goodwill impairment | — |  |  | — | % |  | 18 |  |  | 700.2 | % | (4) | 32 |  |  | (15.1) | % | (4)
Other | (12) |  |  | (1.3) | % |  | (1) |  |  | (33.1) | % | (5) | (4) |  |  | 1.4 | % |
Effective tax rate | $ | 92 |  |  | 10.1 | % |  | $ | 66 |  |  | 2,590.5 | % |  | $ | 10 |  |  | (4.7) | % |
(1)Tax rates are calculated using unrounded numbers. (2)Mainly attributable to valuation allowances established on a portion of non-United States deferred tax assets. (3)Mainly attributable to pre-tax loss position in Fiscal 2020. (4)Attributable to goodwill impairment charges related to Jimmy Choo reporting units in Fiscal 2021 and Fiscal 2020. (5)Primarily relates to individually immaterial United States and foreign permanent adjustments.
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
| April 2, 2022 |  | March 27, 2021
Deferred tax assets |  |  |
Operating lease liabilities | $ | 465 |  |  | $ | 501 |
Net operating loss carryforwards | 108 |  |  | 139 |
Depreciation | 53 |  |  | 54 |
Sales allowances | 34 |  |  | 50 |
Inventories | 26 |  |  | 25 |
Accrued interest | 20 |  |  | 44 |
Stock compensation | 7 |  |  | 12 |
Payroll related accruals | 3 |  |  | 3 |
Derivative financial instruments | — |  |  | 32 |
Other | 46 |  |  | 42 |
Total deferred tax assets | 762 |  |  | 902 |
Valuation allowance | (92) |  | (1) | (159) |
Net deferred tax assets | 670 |  |  | 743 |
Deferred tax liabilities |  |  |
Goodwill and intangibles | (449) |  | (2) | (495) |
Operating lease right-of-use-assets | (340) |  |  | (367) |
Derivative financial instruments | (73) |  |  | — |
Total deferred tax liabilities | (862) |  |  | (862) |
Net deferred tax liabilities | $ | (192) |  |  | $ | (119) |
(1)Includes an Italian valuation allowance reversal during Fiscal 2022. (2)Includes a reversal of a Italian brand intangible deferred tax liability.
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 2022, Fiscal 2021 and Fiscal 2020, are presented below (in millions):
| Fiscal Years Ended |
| April 2, 2022 |  | March 27, 2021 |  | March 28, 2020 |
Unrecognized tax benefits beginning balance | $ | 107 |  |  | $ | 99 |  |  | $ | 192 |  |
Additions related to prior period tax positions | 105 |  | (1) | 12 |  |  | 29 |  |
Additions related to current period tax positions | 29 |  | (2) | 9 |  |  | 4 |  |
Decreases related to audit settlements | (13) |  | (3) | (6) |  |  | (24) |  | (3)
Decreases in prior period positions due to lapses in statute of limitations | (3) |  |  | (4) |  |  | (3) |  |
Decreases related to prior period tax positions | (4) |  |  | (3) |  |  | (99) |  | (4)
Unrecognized tax benefits ending balance | $ | 221 |  |  | $ | 107 |  |  | $ | 99 |  |
(1)Primarily relates to incremental reserves in North America and Europe. (2)Primarily relates to European tax reserves established in Fiscal 2022. (3)Primarily relates to the effective settlement of a United States audit. (4)Primarily relates to releases of North American and European tax reserves.

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