INCOME TAXES (Tables)

12 Months Ended

Apr. 02, 2022

Provision for Income Taxes, Income Before Income Taxes

The provision for income taxes was computed based on the following amounts of income from continuing operations before income taxes:


	Year Ended March

(In thousands)	2022		2021		2020
Domestic	$	518,386	$	(152,073)	$	(91,063)
Foreign	1,004,864		608,545		818,271
Income before income taxes	$	1,523,250	$	456,472	$	727,208

Provision for Income Taxes

The provision for income taxes consisted of:


	Year Ended March

(In thousands)	2022		2021		2020
Current:
Federal	$	231,469	$	6,373	$	12,926
Foreign	196,540		109,543		157,052
State	36,461		25,462		2,583
	464,470		141,378		172,561
Deferred:
Federal and state	(177,381)		(24,133)		38,511
Foreign	19,892		(15,679)		(113,010)
	(157,489)		(39,812)		(74,499)
Income taxes	$	306,981	$	101,566	$	98,062

Differences Between Income Taxes Computed by Applying Statutory Federal Income Tax Rate and Income Tax Expense reported in Consolidated Financial Statements

The differences between income taxes computed by applying the statutory federal income tax rate and income tax expense reported in the consolidated financial statements are as follows:


	Year Ended March

(In thousands)	2022		2021		2020
Tax at federal statutory rate	$	319,882	$	95,859	$	152,714
State income taxes, net of federal tax benefit	16,641		13,771		14,363
Foreign rate differences	(62,928)		(5,605)		(22,038)
Tax reform	67,358		—		(93,598)
Goodwill impairment	—		2,631		45,613


Stock compensation (federal)	(1,977)		(4,783)		(12,245)
Non-taxable contingent consideration adjustments	(28,090)		—		—
Other	(3,905)		(307)		13,253
Income taxes	$	306,981	$	101,566	$	98,062

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consisted of the following:


(In thousands)	March 2022		March 2021
Deferred income tax assets:
Inventories	$	38,661	$	33,023
Deferred compensation	32,349		39,794
Other employee benefits	16,870		32,770
Stock compensation	27,610		25,258
Operating lease liabilities	327,668		354,747
Other accrued expenses	132,747		148,790
Outside basis difference on assets held-for-sale	—		228,735
Interest expense limitation carryforward	1,711		20,503
Capital loss carryforwards	166,622		2,458
Operating loss carryforwards	512,388		323,902
Gross deferred income tax assets	1,256,626		1,209,980
Valuation allowances	(616,533)		(500,601)
Net deferred income tax assets	640,093		709,379
Deferred income tax liabilities:
Depreciation	10,768		52,564
Intangible assets	361,182		414,321
Operating lease right-of-use assets	295,227		318,747
Other deferred tax liabilities	22,337		65,222
Deferred income tax liabilities	689,514		850,854
Net deferred income tax assets (liabilities)	$	(49,421)	$	(141,475)
Amounts included in the Consolidated Balance Sheets:
Other assets (Note 11)	$	100,980	$	201,237
Other liabilities (Note 15)	(150,401)		(342,712)
	$	(49,421)	$	(141,475)

Reconciliation of Change in Accrual for Unrecognized Income Tax Benefits

A reconciliation of the change in the accrual for unrecognized income tax benefits is as follows:


(In thousands)	Unrecognized Income Tax Benefits		Accrued Interest and Penalties		Unrecognized Income Tax Benefits Including Interest and Penalties
Balance, March 2019	$	188,225	$	26,565	$	214,790
Additions for current year tax positions	20,328		—		20,328
Additions for prior year tax positions	3,136		10,029		13,165
Reductions for prior year tax positions	(3,521)		(254)		(3,775)
Reductions due to statute expirations	(11,135)		(1,817)		(12,952)
Payments in settlement	(664)		(146)		(810)
Decrease due to divestiture	(11,619)		(3,723)		(15,342)
Currency translation	(27)		(42)		(69)
Balance, March 2020	184,723		30,612		215,335
Additions for current year tax positions	6,609		—		6,609
Additions for prior year tax positions	20,950		8,064		29,014
Reductions for prior year tax positions	(2,073)		(1,399)		(3,472)
Reductions due to statute expirations	(761)		(216)		(977)
Payments in settlement	(3,464)		(650)		(4,114)
Additions due to acquisitions	17,066		1,673		18,739

Currency translation	(40)		57		17
Balance, March 2021	223,010		38,141		261,151
Additions for current year tax positions	28,098		—		28,098
Additions for prior year tax positions (a)	112,850		32,642		145,492
Reductions for prior year tax positions	(895)		(532)		(1,427)
Reductions due to statute expirations	(5,803)		(840)		(6,643)
Payments in settlement	(21,278)		(730)		(22,008)

Decrease due to divestiture	(506)		(340)		(846)
Currency translation	186		(43)		143
Balance, March 2022	$	335,662	$	68,298	$	403,960

(a)The year ended March 2022 includes an increase resulting from updated estimates related to intellectual property transfers completed in a prior period.

Amounts Included in Consolidated Balance Sheets


(In thousands)	March 2022		March 2021
Amounts included in the Consolidated Balance Sheets:
Unrecognized income tax benefits, including interest and penalties	$	403,960	$	261,151
Less deferred tax benefits	126,179		70,954
Total unrecognized tax benefits	$	277,781	$	190,197