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INCOME TAXES
 12 Months Ended
Apr. 02, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income tax benefit for Fiscal Years 2022, 2021, and 2020 consisted of the following:
Fiscal Year Ended
(in thousands)April 2, 2022April 3, 2021March 28, 2020
Current   
Federal$(8,703)$(1,895)$15,794 
State465 1,780 2,310 
Foreign9,781 13,740 9,526 
Total current income tax expense1,543 13,625 27,630 
Deferred  
Federal— — (12,899)
State— — (768)
Foreign(121,698)(21,174)(83,364)
Total deferred income tax benefit(121,698)(21,174)(97,031)
Income tax benefit$(120,155)$(7,549)$(69,401)

The components of loss before income taxes for Fiscal Years 2022, 2021, and 2020 are as follows:
Fiscal Year Ended
(in thousands)April 2, 2022April 3, 2021March 28, 2020
United States$(114,124)$(137,433)$(756,095)
Foreign11,886 72,553 (140,488)
Loss before income taxes$(102,238)$(64,880)$(896,583)

The following is a reconciliation between statutory federal income taxes and the income tax benefit for Fiscal Years 2022, 2021, and 2020:
Fiscal Year Ended
 (in thousands)April 2, 2022April 3, 2021March 28, 2020
Tax benefit at statutory rate$(21,470)$(13,625)$(188,282)
Foreign operations taxed at different rates(3,376)(11,709)2,497 
State taxes, net of federal benefit(3,164)(5,077)(14,326)
Research and development credit(5,255)(9,725)(6,498)
U.S. tax on foreign earnings196 11,274 10,889 
Reserve expirations(6,570)— — 
Goodwill impairment— — 101,604 
Stock-based compensation6,829 6,751 7,369 
Internal restructuring related benefit(113,426)— (65,069)
Valuation allowance change29,902 23,928 68,486 
Altera accrual— — 9,467 
Tax rate change— (12,418)— 
Nondeductible compensation2,217 1,209 1,187 
Tax on unremitted earnings of certain subsidiaries(3,842)161 (787)
Nondeductible expenses1,216 — — 
Provision to return(3,068)2,707 1,717 
Other, net(344)(1,025)2,345 
Income tax benefit$(120,155)$(7,549)$(69,401)
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.  Significant components of the Company's deferred tax assets and liabilities as of April 2, 2022 and April 3, 2021 are as follows:
(in thousands)April 2, 2022April 3, 2021
Deferred tax assets
Accruals and other reserves$27,431 $36,503 
Deferred compensation4,453 3,717 
Net operating loss carry forward68,920 10,923 
Stock-based compensation5,573 9,939 
Interest expense8,398 23 
Tax credits22,220 13,858 
Capitalized R&D costs56,504 54,725 
Intangible assets164,182 101,362 
Other deferred tax assets7,827 4,610 
Unearned revenue15,583 9,043 
Property, plant, and equipment depreciation3,331 1,045 
Total deferred tax assets, before valuation allowance384,422 245,748 
Valuation allowance(1)
(131,642)(101,740)
Total deferred tax assets, net252,780 144,008 
Deferred tax liabilities
Deferred gains on sales of properties(1,147)(1,137)
Purchased intangibles(27,937)(42,255)
Unremitted earnings of certain subsidiaries(2,070)(889)
Right-of-use assets(6,599)(5,623)
Total deferred tax liabilities(37,753)(49,904)
Net deferred tax assets$215,027 $94,104 
(1) Valuation allowance on federal and state deferred tax assets is net of federal tax impact.

Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more-likely-than-not expected to be realized. Management evaluates and weighs all available positive and negative evidence such as historic results, projected future taxable income, future reversals of existing deferred tax liabilities, as well as prudent and feasible tax-planning strategies. On the basis of this evaluation, the Company maintains a 100% valuation allowance against its U.S. Federal and State deferred tax assets of $122.3 million.

In September 2021, the Company transferred certain non-Americas intellectual property (“IP”) rights between our wholly-owned subsidiaries ("IP transfer") to align with its evolving business operations, resulting in the derecognition of a deferred tax asset (DTA) of $91.1 million and the recognition of a new DTA of $204.5 million, which represents the book and tax basis difference in the IP and was based on the fair value of the IP, in the respective subsidiaries. This results in a net discrete deferred tax benefit of $113.4 million. The impact of the IP transfer to net cash flows on the consolidated statements of cash flows during Fiscal Year 2022 was not material.

Management has concluded that an impairment for local statutory and tax reporting to the aforementioned IP is likely however any impairment loss would be deductible for local tax purposes. As such, a DTA related to net operating loss carryforward of $48.0 million was recognized based on the expected impairment which was offset by a corresponding decrease in the DTA related to the intangible asset by the same amount as of April 2, 2022. Because the IP intangible asset is the result of an intercompany transfer, there is no intangible asset recognized in the consolidated balance sheets. Accordingly, the aforementioned IP impairment has no net impact to the Company’s consolidated statements of operations, balance sheet, or cash flows.

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. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation, or the change of an estimate. As of April 2, 2022 and April 3, 2021, the Company
had unrecognized tax benefits of $14.4 million and $149.5 million, respectively. The reduction in gross unrecognized tax benefits is primarily attributable to the aforementioned IP transfer between wholly owned subsidiaries. The unrecognized tax benefits as of April 2, 2022 would favorably impact the effective tax rate in future periods if recognized.

A reconciliation of the change in the amount of gross unrecognized income tax benefits for the periods is as follows:
Fiscal Year Ended
(in thousands)April 2, 2022April 3, 2021March 28, 2020
Balance at beginning of period$149,466 $152,307 $26,458 
Increase related to prior fiscal years220 8,827 11,226 
Increase related to business combinations— — 89 
Increase related to current year income statement— — 115,824 
Reductions related to settlements with taxing authorities(128,468)(9,668)(995)
Reductions related to lapse of applicable statute of limitations(6,842)(2,000)(295)
Balance at end of period$14,376 $149,466 $152,307 

The Company recognizes interest and penalties related to income tax matters in income tax expense. The interest related to unrecognized tax benefits was $3.7 million and $3.6 million as of April 2, 2022 and April 3, 2021, 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 Federal statute is open from Calendar Year 2015. Foreign and State income tax matters for material tax jurisdictions have been concluded for tax years prior to Fiscal Year 2015. Within the next twelve months, we believe that the resolution of certain U.S. and foreign tax examinations and negotiations is reasonably possible and that a change in estimate, reducing unrecognized tax benefits, may occur. It is not possible to provide a range of the potential change until the tax examinations and negotiations progress further or the related statutes of limitations expire.

The Company's U.S. federal and state net operating losses carryforwards as of April 2, 2022, were $0.3 million and $1.5 million, respectively. The U.S. federal net operating losses will expire between 2024 and 2026, and the state net operating losses will expire at various dates through 2042. The federal credit of $8.8 million will expire between 2031 and 2042. The state credits of $11.2 million are related to California R&D credits, which do not expire.
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 due to the acquisition of Polycom. This ownership change has and will continue to subject Polycom's net operating loss carryforwards to an annual limitation, which will restrict our ability to use them to offset our taxable income in periods following the ownership change. The annual limitation was determined to be $0.7 million.