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Share-Based Compensation (Tables) | 12 Months Ended
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Mar. 31, 2021
Share-based Payment Arrangement [Abstract] |
Schedule of components of share-based compensation expense and related tax benefits | The components of share-based compensation expense and related tax benefits are as follows:
| Years Ended March 31,
(In millions) | 2021 |  | 2020 |  | 2019
Restricted stock unit awards (1) | $ | 137 |  |  | $ | 104 |  |  | $ | 75 |
Stock options | 4 |  |  | 7 |  |  | 12 |
Employee stock purchase plan | 10 |  |  | 8 |  |  | 8 |
Share-based compensation expense | 151 |  |  | 119 |  |  | 95 |
Tax benefit for share-based compensation expense (2) | (23) |  |  | (18) |  |  | (12) |
Share-based compensation expense, net of tax | $ | 128 |  |  | $ | 101 |  |  | $ | 83 |
(1)Includes compensation expense recognized for RSUs, PeRSUs, and PSUs. (2)Income tax benefit is computed using the tax rates of applicable tax jurisdictions. Additionally, a portion of compensation expense is not tax-deductible. Income tax expense for 2021, 2020, and 2019 included discrete income tax expense of $2 million, $2 million, and $4 million, respectively.
Schedule of assumptions used to estimate fair value of PSUs | The weighted-average assumptions used in the Monte Carlo valuations are as follows:
| Years Ended March 31,
| 2021 |  | 2020 |  | 2019
Expected stock price volatility | 36 | % |  | 30 | % |  | 31 | %
Expected dividend yield | 1.1 | % |  | 1.3 | % |  | 0.9 | %
Risk-free interest rate | 0.2 | % |  | 2.2 | % |  | 2.6 | %
Expected life (in years) | 3 |  | 3 |  | 3
Summary of restricted stock unit award activity | The following table summarizes activity for restricted stock unit awards (RSUs, PSUs, and PeRSUs) during 2021:
(In millions, except per share data) | Shares |  | Weighted- Average Grant Date Fair Value Per Share
Nonvested, March 31, 2020 | 3 |  | $ | 135.57 |
Granted | 1 |  | 155.47 |
Cancelled | — |  | 133.70 |
Vested | (1) |  | 147.63 |
Nonvested, March 31, 2021 | 3 |  | $ | 142.13 |
Schedule of data related to restricted stock unit award activity | The following table provides data related to restricted stock unit award activity:
| Years Ended March 31,
(In millions) | 2021 |  | 2020 |  | 2019
Total fair value of shares vested | $ | 79 |  |  | $ | 67 |  |  | $ | 59 |
Total compensation cost, net of estimated forfeitures, related to nonvested restricted stock unit awards not yet recognized, pre-tax | $ | 147 |  |  | $ | 155 |  |  | $ | 119 |
Weighted-average period in years over which restricted stock unit award cost is expected to be recognized | 2 |  | 3 |  | 2
Schedule of weighted-average assumptions used to estimate the fair value | Weighted-average assumptions used to estimate the fair value of employee stock options were as follows: (1)
|  |  |  | Year Ended March 31, 2019
Expected stock price volatility (2) |  |  |  | 26 | %
Expected dividend yield (3) |  |  |  | 0.9 | %
Risk-free interest rate (4) |  |  |  | 2.8 | %
Expected life (in years) (5) |  |  |  | 4.6
(1)The Company did not grant any stock options during the years ended March 31, 2021 and 2020. (2)The computation of expected volatility was based on a combination of the historical volatility of the Company’s common stock and implied market volatility. The Company believes this market-based input provides a reasonable estimate of its future stock price movements and is consistent with employee stock option valuation considerations. (3)Expected dividend yield is based on historical experience and investors’ current expectations. (4)The risk-free interest rate for periods within the expected life of the option is based on the constant maturity U.S. Treasury rate in effect at the grant date. (5)The expected life of the options is based primarily on historical employee stock option exercises and other behavioral data and reflects the impact of changes in the contractual life of current option grants compared to the Company’s historical grants.
Summary of options outstanding | The following is a summary of stock options outstanding at March 31, 2021:
|  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Number of Options Outstanding at Year End (In millions) |  | Weighted- Average Remaining Contractual Life (Years) |  | Weighted- Average Exercise Price |  | Number of Options Exercisable at Year End (In millions) |  | Weighted- Average Exercise Price
$ | 118.41 |  | – | $183.20 |  | 1 |  |  | 3 |  | $ | 166.18 |  |  | 1 |  |  | $ | 171.38 |
183.20 |  | – | 237.86 |  | 1 |  |  | 1 |  | 216.23 |  |  | 1 |  |  | 216.23 |
|  |  |  | 2 |  |  |  |  |  |  | 2 |  |  |
Summary of stock option activity | The following table summarizes stock option activity during 2021:
(In millions, except per share data) | Shares |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value (2)
Outstanding, March 31, 2020 | 2 |  | $ | 180.48 |  |  | 3 |  | $ | 1 |
Granted | — |  | — |  |  |  |  |
Cancelled | — |  | 187.12 |  |  |  |  |
Exercised | — |  | 153.51 |  |  |  |  |
Outstanding, March 31, 2021 | 2 |  | $ | 183.29 |  |  | 2 |  | $ | 36 |
Vested and expected to vest (1) | 2 |  | $ | 183.38 |  |  | 2 |  | $ | 35 |
Vested and exercisable, March 31, 2021 | 2 |  | 189.20 |  |  | 2 |  | 24 |
(1)The number of options expected to vest takes into account an estimate of expected forfeitures. (2)The intrinsic value is calculated as the difference between the period-end market price of the Company’s common stock and the exercise price of “in-the-money” options.
Summary of data related to stock option activity | The following table provides data related to stock option activity:
| Years Ended March 31,
(In millions, except per share data) | 2021 |  | 2020 |  | 2019
Weighted-average grant date fair value per stock option | $ | — |  |  | $ | — |  |  | $ | 34.98 |
Aggregate intrinsic value on exercise | $ | 5 |  |  | $ | 17 |  |  | $ | 16 |
Cash received upon exercise | $ | 38 |  |  | $ | 66 |  |  | $ | 29 |
Tax benefits realized related to exercise | $ | 4 |  |  | $ | 4 |  |  | $ | 4 |
Total fair value of stock options vested | $ | 10 |  |  | $ | 16 |  |  | $ | 16 |
Total compensation cost, net of estimated forfeitures, related to unvested stock options not yet recognized, pre-tax | $ | 2 |  |  | $ | 6 |  |  | $ | 15 |
Weighted-average period in years over which stock option compensation cost is expected to be recognized | 2 |  | 2 |  | 2

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