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Taxes (Tables) | 12 Months Ended
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Apr. 01, 2023
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 1, 2023 |  | April 2, 2022 |  | March 27, 2021
United States | $ | 85 |  |  | $ | 247 |  |  | $ | (56) |
Non-United States | 563 |  |  | 668 |  |  | 59 |
Total income before provision for income taxes | $ | 648 |  |  | $ | 915 |  |  | $ | 3 |
Provision for Income Taxes | The provision for income taxes was as follows (in millions):
| Fiscal Years Ended |
| April 1, 2023 |  | April 2, 2022 |  | March 27, 2021 |
Current |  |  |  |  |  |
United States - Federal | $ | 62 |  |  | $ | 36 |  |  | $ | 35 |  |
United States - State | 22 |  |  | 16 |  |  | 20 |  |
Non-United States | 46 |  | (1) | 98 |  |  | 81 |  |
Total current provision for income taxes | 130 |  |  | 150 |  |  | 136 |  |
Deferred |  |  |  |  |  |
United States - Federal | (40) |  |  | 24 |  | (2) | (37) |  |
United States - State | (6) |  |  | 7 |  |  | (4) |  |
Non-United States | (55) |  |  | (89) |  | (3) | (29) |  |
Total deferred provision for income taxes | (101) |  |  | (58) |  |  | (70) |  |
Total provision for income taxes | $ | 29 |  |  | $ | 92 |  |  | $ | 66 |  |
(1)Primarily relates to the remeasurement of an Asia income tax reserve. (2)Reflects the impact of a United States tax accounting method change 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 1, 2023, April 2, 2022 and March 27, 2021 was different from the amount computed by applying the statutory U.K. income tax rates to the underlying income before provision for income taxes as a result of the following (amounts in millions):
| Fiscal Years Ended |
| April 1, 2023 |  | April 2, 2022 |  | March 27, 2021 |
| Amount |  | % (1) |  | Amount |  | % (1) |  | Amount |  | % (1) |
Provision for income taxes at the U.K. statutory tax rate | $ | 123 |  |  | 19.0 | % |  | $ | 174 |  |  | 19.0 | % |  | 1 |  |  | 19.0 | % |
Effects of global financing arrangements (2) | (78) |  |  | (12.1) | % |  | (61) |  |  | (6.7) | % |  | (24) |  |  | (953.4) | % |
Effect of changes in valuation allowances on deferred tax assets | (37) |  |  | (5.8) | % |  | (67) |  |  | (7.3) | % |  | 24 |  |  | 955.7 | % |
Liability for uncertain tax positions | (3) |  |  | (0.4) | % |  | 91 |  |  | 9.9 | % |  | 11 |  |  | 414.2 | % |
Differences in tax effects on foreign income | (1) |  |  | (0.2) | % |  | 10 |  |  | 1.1 | % |  | 13 |  |  | 522.4 | % |
Non-deductible goodwill impairment | 15 |  |  | 2.4 | % | (3) | — |  |  | — | % |  | 18 |  |  | 700.2 | % | (3)
State and local income taxes, net of federal benefit | 10 |  |  | 1.5 | % |  | 12 |  |  | 1.3 | % |  | 5 |  |  | 201.5 | % |
Share based compensation | 6 |  |  | 0.9 | % |  | 3 |  |  | 0.4 | % |  | 6 |  |  | 247.7 | % |
Withholding tax | 3 |  |  | 0.5 | % |  | 5 |  |  | 0.6 | % |  | 4 |  |  | 165.0 | % |
Brand tax basis step-up | — |  |  | — | % |  | (46) |  |  | (5.0) | % |  | — |  |  | — | % |
CARES Act tax loss carryback | — |  |  | — | % |  | (43) |  |  | (4.6) | % |  | — |  |  | — | % |
Tax rate change impact on deferred items | — |  |  | — | % |  | 21 |  |  | 2.1 | % |  | 9 |  |  | 351.3 | % |
Other (4) | (9) |  |  | (1.3) | % |  | (7) |  |  | (0.7) | % |  | (1) |  |  | (33.1) | % |
Effective tax rate | $ | 29 |  |  | 4.5 | % |  | $ | 92 |  |  | 10.1 | % |  | $ | 66 |  |  | 2,590.5 | % |
(1)Tax rates are calculated using unrounded numbers. (2)Includes the tax related impacts of hedge terminations in conjunction with global financing arrangements. (3)Attributable to goodwill impairment charges related to Jimmy Choo reporting units in Fiscal 2023 and Fiscal 2021. (4)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 1, 2023 |  | April 2, 2022 |
Deferred tax assets |  |  |  |
Operating lease liabilities | $ | 442 |  |  | $ | 465 |  |
Net operating loss carryforwards | 115 |  |  | 108 |  |
Accrued interest | 70 |  |  | 20 |  |
Depreciation | 61 |  |  | 53 |  |
Sales allowances | 38 |  |  | 34 |  |
Inventories | 21 |  |  | 26 |  |
Stock compensation | 6 |  |  | 7 |  |
Payroll related accruals | 3 |  |  | 3 |  |
Other | 29 |  |  | 46 |  |
Total deferred tax assets | 785 |  |  | 762 |  |
Valuation allowance | (52) |  | (1) | (92) |  | (2)
Net deferred tax assets | 733 |  |  | 670 |  |
Deferred tax liabilities |  |  |  |
Goodwill and intangibles | (420) |  |  | (449) |  | (3)
Operating lease right-of-use-assets | (339) |  |  | (340) |  |
Derivative financial instruments | (186) |  |  | (73) |  |
Total deferred tax liabilities | (945) |  |  | (862) |  |
Net deferred tax liabilities | $ | (212) |  |  | $ | (192) |  |
(1)Includes a U.K. valuation allowance reversal during Fiscal 2023. (2)Includes an Italian valuation allowance reversal during Fiscal 2022. (3)Includes a reversal of an 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 2023, Fiscal 2022 and Fiscal 2021, are presented below (in millions):
| Fiscal Years Ended |
| April 1, 2023 |  | April 2, 2022 |  | March 27, 2021 |
Unrecognized tax benefits beginning balance | $ | 221 |  |  | $ | 107 |  |  | $ | 99 |  |
Additions related to prior period tax positions | 12 |  | (1) | 105 |  | (1) | 12 |  |
Additions related to current period tax positions | 14 |  | (2) | 29 |  |  | 9 |  |
Decreases related to audit settlements | (2) |  |  | (13) |  |  | (6) |  |
Decreases in prior period positions due to lapses in statute of limitations | (3) |  |  | (3) |  |  | (4) |  |
Decreases related to prior period tax positions | (42) |  | (3) | (4) |  |  | (3) |  |
Unrecognized tax benefits ending balance | $ | 200 |  |  | $ | 221 |  |  | $ | 107 |  |
(1)Primarily relates to incremental reserves in North America and Europe. (2)Primarily relates to North American and European tax reserves established in Fiscal 2023. (3)Primarily relates to Asia tax reserves.

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