Income Taxes

3 Months Ended

Jul. 03, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table summarizes our effective tax rate for the periods presented:

	Three Months Ended
(In millions, except percentages)	July 3, 2020			July 5, 2019
Income from continuing operations before income taxes	$	99		$	92
Income tax expense (benefit)	$	(50)		$	54
Effective tax rate	(51)		%	59		%

Our effective tax rate for income from continuing operations for the three months ended July 3, 2020 differs from the federal statutory income tax rate primarily due to a tax benefit related to a favorable tax ruling, the benefits of lower-taxed international earnings, and the research and development tax credit, partially offset by state taxes and various permanent differences.

Our effective tax rate for the three months ended July 5, 2019 differs from the federal statutory income tax rate primarily due to tax expense related to the Ninth Circuit's holding in Altera Corp. v. Commissioner (which the Supreme Court declined to review

in June 2020), various permanent differences, and state taxes, partially offset by the benefits of lower-taxed international earnings and the research and development tax credit.

The aggregate changes in the balance of gross unrecognized tax benefits for the three months ended July 3, 2020 were as follows:

(In millions)
Balance as of April 3, 2020	$	724
Lapse of statute of limitations	(12)
Increase related to prior period tax positions	5
Decrease related to prior period tax positions	(49)
Increase related to current year tax positions	4
Balance as of July 3, 2020	$	672

We continue to monitor the progress of ongoing income tax controversies and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.