XML 59 R41.htm IDEA: XBRL DOCUMENT
v3.25.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Mar. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) From Continuing Operations Before Income Taxes |
| Years Ended March 31,
(In millions) | 2025 |  | 2024 |  | 2023
Income from continuing operations before income taxes |  |  |  |  |
U.S. | $ | 3,735 |  |  | $ | 2,597 |  |  | $ | 3,308 |
Foreign | 624 |  |  | 1,192 |  |  | 1,322 |
Income from continuing operations before income taxes | $ | 4,359 |  |  | $ | 3,789 |  |  | $ | 4,630 |
Schedule of Income Tax Expense (Benefit) Related to Continuing Operations | Income tax expense related to continuing operations consists of the following:
| Years Ended March 31,
(In millions, except percentages) | 2025 |  | 2024 |  | 2023
Current |  |  |  |  |
Federal | $ | 552 |  |  | $ | 867 |  |  | $ | 619 |
State | 182 |  |  | 231 |  |  | 126 |
Foreign | 254 |  |  | 134 |  |  | 180 |
Total current | 988 |  |  | 1,232 |  |  | 925 |
Deferred |  |  |  |  |
Federal | 102 |  |  | (360) |  |  | (46) |
State | 5 |  |  | (133) |  |  | 36 |
Foreign | (217) |  |  | (110) |  |  | (10) |
Total deferred | (110) |  |  | (603) |  |  | (20) |
Income tax expense | $ | 878 |  |  | $ | 629 |  |  | $ | 905 |
Reported income tax rate | 20.1 | % |  | 16.6 | % |  | 19.5 | %
Schedule of Reconciliation Between Effective Tax Rate on Income From Continuing Operations and Statutory Tax Rate | The reconciliation of income tax expense and the amount computed by applying the statutory federal income tax rate of 21.0% to income before income taxes was as follows:
| Years Ended March 31,
(In millions) | 2025 |  | 2024 |  | 2023
Income tax expense at federal statutory rate | $ | 915 |  |  | $ | 796 |  |  | $ | 972 |
State income taxes, net of federal tax benefit | 145 |  |  | 104 |  |  | 134 |
Tax effect of foreign operations | (25) |  |  | (16) |  |  | (85) |
Foreign-derived intangible income | (83) |  |  | (67) |  |  | (60) |
Unrecognized tax benefits and settlements | 91 |  |  | 116 |  |  | 6 |
Net tax benefit on intellectual property repatriation and sales | (258) |  |  | (104) |  |  | — |
Canadian disposal transaction loss | 140 |  |  | — |  |  | — |
Valuation allowance release | — |  |  | (157) |  |  | — |
Share-based compensation | (42) |  |  | (37) |  |  | (58) |
Other, net | (5) |  |  | (6) |  |  | (4) |
Income tax expense | $ | 878 |  |  | $ | 629 |  |  | $ | 905 |
Schedule of Deferred Tax Balances | Deferred tax balances consisted of the following:
| March 31,
(In millions) | 2025 |  | 2024
Assets |  |  |
Receivable allowances | $ | 136 |  |  | $ | 244 |
Opioid-related litigation and claims | 680 |  |  | 680 |
Compensation and benefit-related accruals | 287 |  |  | 277 |
Net operating loss and credit carryforwards | 847 |  |  | 751 |
Lease obligations | 423 |  |  | 438 |
Capitalized research and development cost | 68 |  |  | 60 |
Intangibles | 66 |  |  | 5 |
Other | 170 |  |  | 147 |
Subtotal | 2,677 |  |  | 2,602 |
Less: valuation allowance | (644) |  |  | (653) |
Total assets | 2,033 |  |  | 1,949 |
Liabilities |  |  |
Inventory valuation and other assets | (2,139) |  |  | (2,092) |
Fixed assets | (72) |  |  | (16) |
Lease right-of-use assets | (434) |  |  | (431) |
Other | (50) |  |  | (10) |
Total liabilities | (2,695) |  |  | (2,549) |
Net deferred tax liability | $ | (662) |  |  | $ | (600) |
Long-term deferred tax asset | $ | 367 |  |  | $ | 317 |
Long-term deferred tax liability | (1,029) |  |  | (917) |
Net deferred tax liability | $ | (662) |  |  | $ | (600) |
Schedule of Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the last three fiscal years:
| Years Ended March 31,
(In millions) | 2025 |  | 2024 |  | 2023
Unrecognized tax benefits at beginning of period | $ | 1,463 |  |  | $ | 1,399 |  |  | $ | 1,523 |
Additions based on tax positions related to prior years | 33 |  |  | 10 |  |  | — |
Reductions based on tax positions related to prior years | (43) |  |  | (2) |  |  | (26) |
Additions based on tax positions related to current year | 97 |  |  | 64 |  |  | 21 |
Reductions based on settlements | (13) |  |  | (8) |  |  | (96) |
Reductions based on the lapse of the applicable statutes of limitations | (7) |  |  | (2) |  |  | (16) |
Exchange rate fluctuations | 2 |  |  | 2 |  |  | (7) |
Unrecognized tax benefits at end of period | $ | 1,532 |  |  | $ | 1,463 |  |  | $ | 1,399 |

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/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration