

	Fiscal Year Ended
(in thousands)	March 28, 2020			March 30, 2019			March 31, 2018
Current:
Federal	$	15,794		$	(1,199	)	$	82,523
State	2,310			2,550			4,274
Foreign	9,526			(1,550		)	6,860
Total current provision for (benefit from) income taxes	27,630			(199		)	93,657
Deferred:
Federal	(15,606		)	(37,577		)	9,002
State	1,939			(4,160		)	(1,585		)
Foreign	(83,364		)	(8,195		)	22
Total deferred income tax expense (benefit)	(97,031		)	(49,932		)	7,439
Income tax expense (benefit)	$	(69,401	)	$	(50,131	)	$	101,096



	Fiscal Year Ended
(in thousands)	March 28, 2020			March 30, 2019			March 31, 2018
United States	$	(756,095	)	$	(179,387	)	$	17,654
Foreign	(140,488		)	(6,305		)	82,573
Income (loss) before income taxes	$	(896,583	)	$	(185,692	)	$	100,227



	Fiscal Year Ended
(in thousands)	March 28, 2020			March 30, 2019			March 31, 2018
Tax expense at statutory rate	$	(188,282	)	$	(38,995	)	$	31,631
Foreign operations taxed at different rates	2,497			(4,965		)	(17,970		)
State taxes, net of federal benefit	(14,326		)	(1,610		)	2,689
Research and development credit	(6,498		)	(4,288		)	(2,023		)
US tax on foreign earnings	10,889			4,398			—
Impact of Tax Act	—			(3,728		)	87,790
Goodwill impairment	101,604			—			—
Stock based compensation	7,369			(1,196		)	(1,771		)
Internal restructuring related benefit	(65,069		)	—			—
Withholding tax	2,657			—			—
Deferred tax valuation allowance	68,486			—			—
Altera accrual	9,467			—			—
Other, net	1,805			253			750
Income tax expense (benefit)	$	(69,401	)	$	(50,131	)	$	101,096

Deferred tax assets and liabilities represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes.



(in thousands)	March 28, 2020			March 30, 2019
Accruals and other reserves	$	29,788		$	24,167
Deferred compensation	277			2,980
Net operating loss carry forward	11,810			16,921
Stock compensation	10,867			9,484
Interest expense	10,676			11,550
Tax credits	12,437			7,072
Engineering costs	41,123			31,015
Intangible assets	94,809			—
Other deferred tax assets	3,826			635
Valuation allowance⁽¹⁾	(81,436		)	(15,787		)
Total deferred tax assets	134,177			88,037
Deferred gains on sales of properties	(1,128		)	(1,155		)
Purchased intangibles	(55,586		)	(92,544		)
Unearned revenue	6,521			(5,054		)
Unremitted earnings of certain subsidiaries	(7,123		)	(17,879		)
Fixed asset depreciation	818			(7,881		)
Right of use assets	(5,316		)	—
Total deferred tax liabilities	(61,814		)	(124,513		)
Net deferred tax assets⁽²⁾	$	72,363		$	(36,476	)

The Company evaluates its deferred tax assets, including a determination of whether a valuation allowance is necessary, based upon its ability to utilize the assets using a more likely than not analysis. Deferred tax assets are only recorded to the extent that they are realizable based upon past and future income. Based on the Company’s results for Fiscal Year 2019 and 2020 together with the Fiscal Year 2021 forecast, the Company recorded a 100% valuation allowance against its US Federal and State deferred tax assets of $71.6 million.

In the period ended March 28, 2020, the Company completed the reorganization of its foreign businesses in conjunction with the Polycom Acquisition in Fiscal Year 2018 and recognized a deferred tax asset relating to the book and tax basis difference of certain intangible assets of $76.5 million

The impact of an uncertain income tax position on income tax expense must be recognized at the largest amount that is more likely than not to be sustained. An uncertain income tax position will not be recognized unless it has a greater than 50% likelihood of being sustained. As of March 28, 2020, March 30, 2019, and March 31, 2018, the Company had $152.3 million, $26.5 million, and $12.6 million, respectively, of unrecognized tax benefits. The increase of uncertain tax positions when compared to the prior year is predominantly due to uncertain tax benefits related to the reorganization of its foreign business and uncertain tax position related to Altera Corp. v. Commissioner IRC Section 482 requiring related-party participants in a cost sharing arrangement to share stock-based compensation costs. The unrecognized tax benefits as of March 28, 2020 would favorably impact the effective tax rate in future periods if recognized.



(in thousands)	March 28, 2020			March 30, 2019			March 31, 2018
Balance at beginning of period	$	26,458		$	12,612		$	12,854
Increase (decrease) of unrecognized tax benefits related to prior fiscal years	11,226			254			(1,310		)
Increase of unrecognized tax benefits related to business combinations	89			13,329			—
Increase of unrecognized tax benefits related to current year income statement	115,824			2,069			3,085
Reductions to unrecognized tax benefits related to settlements with taxing authorities	(995		)	—			(115		)
Reductions to unrecognized tax benefits related to lapse of applicable statute of limitations	(295		)	(1,806		)	(1,902		)
Balance at end of period	$	152,307		$	26,458		$	12,612

The Company's continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The interest related to unrecognized tax benefits was $4.0 million and $2.0 million as of March 28, 2020 and March 30, 2019, respectively. No penalties have been accrued.

The Company and its subsidiaries are subject to taxation in various foreign and state jurisdictions, including the U.S. The Company is currently being audited by the Internal Revenue Service for Fiscal Year 2017. The Company anticipates a reduction in liabilities for uncertain tax positions that may impact the statement of operations in the next 12 months of approximately $7.3 million relating to the Altera Corp. v. Commissioner IRS assessment and research and development tax credit. All federal tax matters have been concluded for tax years prior to Fiscal Year 2016. Foreign and State income tax matters for material tax jurisdictions have been concluded for tax years prior to Fiscal Year 2013.

The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations; however, the outcome of such examinations cannot be predicted with certainty. If any issues addressed in the tax examinations are resolved in a manner inconsistent with the Company's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs.

As of March 28, 2020, after applying Internal Revenue Code (“IRC”) Section 382 limitations, we had $11.8 million of federal and state operating loss carryforwards, with which to offset our future taxable income. The federal and state net operating loss carryforwards will begin to expire in the year 2021.

We experienced an “ownership change” within the meaning of Section 382(g) of the Internal Revenue Code of 1986, as amended, during the second quarter of Fiscal Year 2019. This ownership change has and will continue to subject our net operating loss carryforwards to an annual limitation, which will significantly restrict our ability to use them to offset our taxable income in periods following the ownership change. In general, the annual use limitation equals the aggregate value of our stock at the time of the ownership change multiplied by a specified tax-exempt interest rate.