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Income Taxes (Tables)

12 Months Ended

Mar. 30, 2012

Sources of income before income taxes classified between domestic and foreign entities

The sources of (loss) income from continuing operations, before income taxes, classified between domestic entities and those entities domiciled outside of the United States, are as follows:



	Twelve Months Ended
(Amounts in millions)	March 30, 2012			April 1, 2011		April 2, 2010
Domestic entities	$	(1,701	)	$	582	$	447
Entities outside the United States	(2,646		)	386		575
Total	$	(4,347	)	$	968	$	1,022

Components of the income tax provision

The income tax (benefit) expense on (loss) income from continuing operations is comprised of:



	Twelve Months Ended
(Amounts in millions)	March 30, 2012			April 1, 2011		April 2, 2010
Current:
Federal	$	(121	)	$	19	$	85
State	16			23		(31		)
Foreign	99			101		130
	(6		)	143		184

Deferred:
Federal	(139		)	87		44
State	(21		)	7		(19		)
Foreign	45			6		(17		)
	(115		)	100		8
Total income tax expense (benefit)	$	(121	)	$	243	$	192

Federal statutory tax rate to effective tax rate reconciliation

The major elements contributing to the difference between the U.S. federal statutory tax rate of 35% and the effective tax rate (ETR) for continuing operations are as follows:



	Twelve Months Ended
	March 30, 2012		April 1, 2011		April 2, 2010
Statutory rate	(35.0	)%	35.0	%	35.0	%
State income tax, net of federal tax	(0.2	)	1.5		1.2
Change in uncertain tax positions	0.6		(2.5	)	(2.8	)
Foreign tax rate differential	(0.8	)	(4.6	)	(6.6	)
Income tax credits	(1.0	)	(8.7	)	(0.8	)
Valuation allowance	18.6		2.6		(5.6	)
Change in entity tax status	(2.6	)	—		—
Tax audit settlements	(2.6	)	—		—
Goodwill impairment	19.3		—		—
Other items, net	0.9		1.8		(1.6	)
Effective tax rate	(2.8	)%	25.1	%	18.8	%

Components of deferred tax assets and liabilities

The deferred tax assets (liabilities) are as follows:



(Amounts in millions)	March 30, 2012			April 1, 2011
Deferred Tax Assets
Employee benefits	$	705		$	601
Tax loss/credit carryforwards	899			246
Accrued interest	52			40
State taxes	13			17
Foreign gain/loss on exchange	6			4
Other assets	92			97
Total Deferred Tax Assets	1,767			1,005
Valuation allowance	(951		)	(96		)
Net Deferred Tax Assets	816			909

Deferred Tax Liabilities
Depreciation and amortization	(387		)	(495		)
Contract accounting	(90		)	(313		)
Investment basis differences	(128		)	(142		)
Other liabilities	(65		)	(30		)
Total Deferred Tax Liabilities	(670		)	(980		)

Total Deferred Tax Assets (Liabilities)	$	146		$	(71	)

Balance of uncertain tax positions (excluding interest and penalties and related tax carryforwards)

The following table summarizes the activity related to the Company’s uncertain tax positions (excluding interest and penalties and related tax attributes):



	Twelve Months Ended
(Amounts in millions)	March 30, 2012			April 1, 2011			April 2, 2010
Balance at Beginning of Fiscal Year	$	426		$	442		$	442
Gross increases related to prior year tax positions	27			22			47
Gross decreases related to prior year tax positions	(134		)	(41		)	(29		)
Gross increases related to current year tax positions	29			14			13
Settlements	(115		)	(15		)	(36		)
Current year acquisitions	56			—			—
Foreign exchange and others	(2		)	4			5
Balance at End of Fiscal Year	$	287		$	426		$	442

Tax Examination Status

The Company is currently under examination in several tax jurisdictions. A summary of the tax years that remain subject to examination in certain of the Company’s major tax jurisdictions are:



Jurisdiction:		Tax Years that Remain Subject to Examination (Fiscal Year Ending):
United States – Federal		2008 and forward
United States – Various States		2001 and forward
Australia		2007 and forward
Canada		2006 and forward
Denmark		2007 and forward
France		2005 and forward
Germany		2006 and forward
India		2006 and forward
United Kingdom		2010 and forward

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

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