XML 60 R45.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Mar. 31, 2018
Income Tax Disclosure [Abstract] |
Schedule of income from continuing operations before income taxes |
| Years Ended March 31,
(In millions) | 2018 |  | 2017 |  | 2016
Income from continuing operations before income taxes |  |  |  |  |
U.S. | $ | 1,175 |  |  | $ | 5,772 |  |  | $ | 2,319 |
Foreign | (936 | ) |  | 1,119 |  |  | 931 |
Total income from continuing operations before income taxes | $ | 239 |  |  | $ | 6,891 |  |  | $ | 3,250 |
Schedule of income tax expense related to continuing operations | Income tax expense related to continuing operations consists of the following:
| Years Ended March 31,
(In millions) | 2018 |  | 2017 |  | 2016
Current |  |  |  |  |
Federal | $ | 577 |  |  | $ | 524 |  |  | $ | 658 |
State | 33 |  |  | 86 |  |  | 96 |
Foreign | 205 |  |  | 122 |  |  | 90 |
Total current | 815 |  |  | 732 |  |  | 844 |
Deferred |  |  |  |  |
Federal | (767 | ) |  | 767 |  |  | 95 |
State | 17 |  |  | 164 |  |  | 42 |
Foreign | (118 | ) |  | (49 | ) |  | (73 | )
Total deferred | (868 | ) |  | 882 |  |  | 64 |
Income tax (benefit) expense | $ | (53 | ) |  | $ | 1,614 |  |  | $ | 908 |
Schedule of reconciliation between effective tax rate on income from continuing operations and statutory tax rate | The reconciliation of income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate of 31.6% for 2018 and 35% for 2017 and 2016 to the income before income taxes is as follows:
| Years Ended March 31,
(In millions) | 2018 |  | 2017 |  | 2016
Income tax expense at federal statutory rate | $ | 75 |  |  | $ | 2,411 |  |  | $ | 1,137 |
State income taxes net of federal tax benefit | 50 |  |  | 153 |  |  | 92 |
Tax effect of foreign operations | (146 | ) |  | (326 | ) |  | (295 | )
Unrecognized tax benefits and settlements | 454 |  |  | 57 |  |  | (14 | )
Non-deductible goodwill | 585 |  |  | 106 |  |  | — |
Share-based compensation | (8 | ) |  | (54 | ) |  | — |
Net tax benefit on intellectual property transfer | (178 | ) |  | (137 | ) |  | — |
Rate differential on gain from Change Healthcare Net Asset Exchange | — |  |  | (587 | ) |  | — |
Remeasurement of U.S. deferred taxes | (1,324 | ) |  | — |  |  | — |
Transition tax on foreign earnings | 457 |  |  | — |  |  | — |
Other, net (1) | (18 | ) |  | (9 | ) |  | (12 | )
Income tax (benefit) expense | $ | (53 | ) |  | $ | 1,614 |  |  | $ | 908 |
(1) | Our 2018 effective tax rate was impacted by other favorable U.S. federal permanent differences including research and development credits of $11 million.
Schedule of deferred tax balances | Deferred tax balances consisted of the following:
| March 31,
(In millions) | 2018 |  | 2017
Assets |  |  |
Receivable allowances | $ | 58 |  |  | $ | 124 |
Compensation and benefit related accruals | 345 |  |  | 593 |
Net operating loss and credit carryforwards | 811 |  |  | 594 |
Long-term contractual obligations | 59 |  |  | 107 |
Other | 279 |  |  | 241 |
Subtotal | 1,552 |  |  | 1,659 |
Less: valuation allowance | (751 | ) |  | (503 | )
Total assets | 801 |  |  | 1,156 |
Liabilities |  |  |
Inventory valuation and other assets | (1,869 | ) |  | (2,818 | )
Fixed assets and systems development costs | (158 | ) |  | (224 | )
Intangibles | (644 | ) |  | (921 | )
Change Healthcare Equity Investment | (814 | ) |  | (773 | )
Other | (71 | ) |  | (70 | )
Total liabilities | (3,556 | ) |  | (4,806 | )
Net deferred tax liability | $ | (2,755 | ) |  | $ | (3,650 | )
Long-term deferred tax asset | 49 |  |  | 28 |
Long-term deferred tax liability | (2,804 | ) |  | (3,678 | )
Net deferred tax liability | $ | (2,755 | ) |  | $ | (3,650 | )
Schedule of gross unrecognized tax benefits | The following table summarizes the activity related to our gross unrecognized tax benefits for the last three years:
| Years Ended March 31,
(In millions) | 2018 |  | 2017 |  | 2016
Unrecognized tax benefits at beginning of period | $ | 486 |  |  | $ | 555 |  |  | $ | 616 |
Additions based on tax positions related to prior years | 47 |  |  | 7 |  |  | 116 |
Reductions based on tax positions related to prior years | (124 | ) |  | (67 | ) |  | (62 | )
Additions based on tax positions related to current year | 778 |  |  | 105 |  |  | 28 |
Reductions based on settlements | (7 | ) |  | (113 | ) |  | (141 | )
Reductions based on the lapse of the applicable statutes of limitations | — |  |  | — |  |  | (6 | )
Exchange rate fluctuations | 3 |  |  | (1 | ) |  | 4 |
Unrecognized tax benefits at end of period | $ | 1,183 |  |  | $ | 486 |  |  | $ | 555 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for 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 and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration