Income Taxes

9 Months Ended

Jan. 29, 2021

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

Our effective tax rates for the periods presented were as follows:

	Nine Months Ended
	January 29, 2021			January 24, 2020
Effective tax rates		24.7	%		10.2	%

Our effective tax rate reflects the impact of a significant amount of earnings being taxed in foreign jurisdictions at rates below the United States (U.S.) statutory rate. The effective tax rate for the nine months ended January 29, 2021 includes the impact of taxes resulting from the integration of acquired companies. The effective tax rate for the nine months ended January 24, 2020 included the impact of discrete tax benefits for lapses of statute of limitations. The remaining differences in effective tax rates for the first nine months of fiscal 2021 compared to the corresponding period of the prior year are primarily due to certain discrete expenses, including foreign audit results and differences in discrete tax benefits for stock-based compensation.

As of January 29, 2021, we had $224 million of gross unrecognized tax benefits, of which $133 million has been recorded in other long-term liabilities. Inclusive of penalties, interest and certain income tax benefits, $133 million would affect our provision for income taxes if recognized.

We are currently undergoing various income tax audits in the U.S. and audits in several foreign tax jurisdictions. Transfer pricing calculations are key topics under these audits and are often subject to dispute and appeals.

We continue to monitor the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. We engage in continuous discussion and negotiation with taxing authorities regarding tax matters in multiple jurisdictions. We believe that within the next 12 months, it is reasonably possible that either certain audits will conclude, certain statutes of limitations will lapse, or both. As a result of uncertainties regarding tax audits and their possible outcomes, an estimate of the range of possible impacts to unrecognized tax benefits in the next twelve months cannot be made at this time.