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Income Taxes (Tables)

12 Months Ended

Apr. 26, 2024

Income before income taxes is as follows (in millions):


	Year Ended
	April 26, 2024		April 28, 2023		April 29, 2022
Domestic	$	472	$	420	$	546
Foreign		791		646		549
Total	$	1,263	$	1,066	$	1,095

Provision for Income Taxes

The provision (benefit) for income taxes consists of the following (in millions):


	Year Ended
	April 26, 2024		April 28, 2023			April 29, 2022
Current:
Federal	$	89	$	209		$	187
State		25		39			55
Foreign		110		150			60
Total current		224		398			302
Deferred:
Federal		24		(44	)		(125	)
State		6		(3	)		(27	)
Foreign		23		(559	)		8
Total deferred		53		(606	)		(144	)
Provision (benefit) for income taxes	$	277	$	(208	)	$	158

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate as follows (in millions):


	Year Ended
	April 26, 2024			April 28, 2023			April 29, 2022
Tax computed at federal statutory rate	$	265		$	224		$	230
State income taxes, net of federal benefit		22			24			15
Foreign earnings in lower tax jurisdictions		(40	)		(43	)		(46	)
Stock-based compensation		12			25			(8	)
Research and development credits		(22	)		(24	)		(18	)
Benefit for foreign derived intangible income		—			—			(49	)
Global minimum tax on intangible income		46			61			1
Transition tax and related reserves		—			—			1
Tax charges (benefits) from integration of acquired companies		4			(27	)		23
Tax benefit due to IP Transfer		—			(524	)		—
Resolution of income tax matters (1)		(4	)		71			(3	)
Other		(6	)		5			12
Provision (benefit) for income taxes	$	277		$	(208	)	$	158

(1)

During fiscal 2024, we recognized a tax benefit related to the lapse of statute of limitations for certain issues in our fiscal 2020 U.S. tax returns. During fiscal 2023, we recognized tax expense related to a Danish Supreme Court decision related to

withholding tax on a 2005 distribution as well as tax expense related to the currently in progress IRS audit of our fiscal 2018 and 2019 U.S. tax returns. During fiscal 2022, we recognized a tax benefit related to the lapse of statute of limitations for certain issues in our fiscal 2012 and 2013 state income tax returns.

Deferred Tax Assets and Liabilities

The components of our deferred tax assets and liabilities are as follows (in millions):


	April 26, 2024			April 28, 2023
Deferred tax assets:
Reserves and accruals	$	126		$	189
Net operating loss and credit carryforwards		129			124
Stock-based compensation		25			23
Deferred revenue and financed unearned services revenue		252			264
Acquired intangibles		499			523
Capitalized research and development (1)		141			111
Other		12			10
Gross deferred tax assets		1,184			1,244
Valuation allowance		(121	)		(113	)
Deferred tax assets, net of valuation allowance		1,063			1,131
Deferred tax liabilities:
Prepaids and accruals		90			94
Acquired intangibles		68			66
Property and equipment		36			50
Other		3			2
Total deferred tax liabilities		197			212
Deferred tax assets, net of valuation allowance and deferred tax liabilities	$	866		$	919

(1)

As required under the Tax Cuts and Jobs Act of 2017, research and development expenditures are capitalized and amortized beginning in our fiscal 2023.

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):


	Year Ended
	April 26, 2024			April 28, 2023			April 29, 2022
Balance at beginning of period	$	222		$	220		$	221
Additions based on tax positions related to the current year		7			9			11
Additions for tax positions of prior years		—			1			—
Decreases for tax positions of prior years		(2	)		(5	)		(2	)
Settlements		(7	)		(3	)		(10	)
Balance at end of period	$	220		$	222		$	220

Summary of Tax Years Remain Subject to Examinations under Major Tax Jurisdictions

The tax years that remain subject to examination for our major tax jurisdictions are shown below:

Fiscal Years Subject to Examination for Major Tax Jurisdictions at April 26, 2024


2018 — 2024		United States — federal income tax
2018 — 2024		United States — state and local income tax
2020 — 2024		Australia
2018 — 2024		Germany
2007 — 2024		India
2018 — 2024		The Netherlands
2017 — 2024		Canada
2020 — 2024		Japan
2014 — 2024		Hong Kong
2022 — 2024		United Kingdom
2021 — 2024		France
2022 — 2024		Ireland