Income Taxes (Tables)

12 Months Ended

Apr. 26, 2019

Income Tax Disclosure [Abstract]

Income Before Income Taxes

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

	Year Ended
	April 26, 2019		April 27, 2018		April 28, 2017
Domestic	$	678	$	589	$	166
Foreign		590		610		455
Total	$	1,268	$	1,199	$	621

Provision for Income Taxes

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

	Year Ended
	April 26, 2019			April 27, 2018		April 28, 2017
Current:
Federal	$	26		$	764	$	22
State		27			10		3
Foreign		49			39		41
Total current		102			813		66
Deferred:
Federal		35			239		61
State		(6	)		27		17
Foreign		(32	)		4		(4	)
Total deferred		(3	)		270		74
Provision for income taxes	$	99		$	1,083	$	140

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, 2019			April 27, 2018			April 28, 2017
Tax computed at federal statutory rate	$	266		$	366		$	218
State income taxes, net of federal benefit		16			18			8
Foreign earnings in lower tax jurisdictions		(84	)		(108	)		(100	)
Stock-based compensation		(19	)		(23	)		16
Research and development credits		(17	)		(10	)		(8	)
Resolution of income tax examinations		(48	)		—			—
Domestic production activities deduction		(13	)		(7	)		(4	)
Global minimum tax on intangible income		22			—			—
Tax rate changes		—			108			5
Non-taxable gain on joint venture formation		(14	)		—			—
Transition tax		(5	)		732			—
Other		(5	)		7			5
Provision for income taxes	$	99		$	1,083		$	140

Deferred Tax Assets and Liabilities

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

	April 26, 2019			April 27, 2018
Deferred tax assets:
Reserves and accruals	$	50		$	57
Net operating loss and credit carryforwards		139			131
Stock-based compensation		16			22
Deferred revenue		205			156
Other		16			29
Gross deferred tax assets		426			395
Valuation allowance		(123	)		(109	)
Deferred tax assets, net of valuation allowance		303			286
Deferred tax liabilities:
Prepaids and accruals		31			21
Acquired intangibles		32			29
Property and equipment		31			25
Other		10			14
Total deferred tax liabilities		104			89
Deferred tax assets, net of valuation allowance and deferred tax liabilities	$	199		$	197

Unrecognized Tax Benefits

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

	Year Ended
	April 26, 2019			April 27, 2018			April 28, 2017
Balance at beginning of period	$	348		$	218		$	216
Additions based on tax positions related to the current year		11			131			7
Additions for tax positions of prior years		26			—			7
Decreases for tax positions of prior years		(35	)		(1	)		—
Settlements		(54	)		—			(12	)
Balance at end of period	$	296		$	348		$	218

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, 2019

2014 — 2019	United States — federal income tax
2011 — 2019	United States — state and local income tax
2013 — 2019	Australia
2013 — 2019	Germany
2007 — 2019	India
2013 — 2019	Japan
2014 — 2019	The Netherlands
2016 — 2019	United Kingdom
2016 — 2019	Canada