Income Taxes (Tables)

12 Months Ended

Apr. 03, 2020

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

The components of income tax expense (benefit) recorded in continuing operations are as follows:

	Year Ended
(In millions)	April 3, 2020			March 29, 2019			March 30, 2018
Current:
Federal	$	208		$	58		$	1,102
State	33			4			14
International	3			(14		)	(148		)
Total	244			48			968
Deferred:
Federal	(23		)	(35		)	(1,551		)
State	3			(3		)	(136		)
International	17			(7		)	(1		)
Total	(3		)	(45		)	(1,688		)
Income tax expense (benefit)	$	241		$	3		$	(720	)

Schedule of Difference Between Effective Income Tax and Federal Statutory Income Tax

The U.S. federal statutory income tax rates we have applied for fiscal 2020, 2019, and 2018 are as follows:

	Year Ended
	April 3, 2020		March 29, 2019		March 30, 2018
U.S. federal statutory income tax rate	21.0	%	21.0	%	31.6	%

The difference between our effective income tax and the federal statutory income tax is as follows:

	Year Ended
(In millions)	April 3, 2020			March 29, 2019			March 30, 2018
Federal statutory tax expense (benefit)	$	172		$	(23	)	$	77
State taxes, net of federal benefit	22			(11		)	(14		)
Foreign earnings taxed at other than the federal rate	4			(25		)	(154		)
Transition tax	—			(2		)	893
Federal research and development credit	(2		)	(4		)	(6		)
Valuation allowance increase (decrease)	(57		)	26			7
Change in uncertain tax positions	60			44			(3		)
Stock-based compensation	5			8			(23		)
Nondeductible goodwill	18			—			59
Effect of tax rate change on deferred taxes	—			—			(131		)
Re-assessment of deferred taxes on foreign earnings	—			—			(1,420		)
Return to provision adjustment	2			(16		)	—
Other, net	17			6			(5		)
Income tax expense (benefit)	$	241		$	3		$	(720	)

Principal Components of Deferred Tax Assets

The principal components of deferred tax assets and liabilities are as follows:

	As of
(In millions)	April 3, 2020			March 29, 2019
Deferred tax assets:
Tax credit carryforwards	$	6		$	54
Net operating loss carryforwards of acquired companies	21			51
Other accruals and reserves not currently tax deductible	46			64
Operating lease liabilities	12			—
Deferred revenue	2			54
Property and equipment	10			—
Intangible assets	117			384
Loss on investments not currently tax deductible	1			35
Stock-based compensation	21			87
Other	44			25
Gross deferred tax assets	280			754
Valuation allowance	(9		)	(105		)
Deferred tax assets, net of valuation allowance	$	271		$	649
Deferred tax liabilities:
Property and equipment	$	—		$	(17	)
Goodwill	—			(13		)
Operating lease assets	(10		)	—
Unremitted earnings of foreign subsidiaries	(17		)	(316		)
Prepaids and deferred expenses	(2		)	(43		)
Discount on convertible debt	(4		)	(7		)
Deferred tax liabilities	(33		)	(396		)
Net deferred tax assets (liabilities)	$	238		$	253

Schedule of Changes in Unrecognized Tax Benefits

The aggregate changes in the balance of gross unrecognized tax benefits were as follows:

	Year Ended
(In millions)	April 3, 2020			March 29, 2019			March 30, 2018
Balance at beginning of year	$	446		$	378		$	248
Settlements with tax authorities	(5		)	(3		)	(4		)
Lapse of statute of limitations	(15		)	(17		)	(3		)
Increase related to prior period tax positions	77			16			35
Decrease related to prior period tax positions	(11		)	(11		)	—
Increase related to current year tax positions	232			75			98
Increase due to acquisition	—			8			4
Balance at end of year	$	724		$	446		$	378