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v3.20.1

Income Taxes (Tables) | 12 Months Ended
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Mar. 31, 2020
Income Tax Disclosure [Abstract] |
Components of income tax expense (benefit) | The income tax provision consists of the following (amounts in millions):
| Year Ended March 31,
| 2020 |  | 2019 |  | 2018
Pretax (loss) income: |  |  |  |  |
U.S. | $ | (485.2 | ) |  | $ | (593.4 | ) |  | $ | (127.3 | )
Foreign | 635.6 |  |  | 797.9 |  |  | 864.6 |
| $ | 150.4 |  |  | $ | 204.5 |  |  | $ | 737.3 |
Current (benefit) expense: |  |  |  |  |
U.S. Federal | $ | 21.1 |  |  | $ | (98.0 | ) |  | $ | 369.4 |
State | 1.0 |  |  | (5.3 | ) |  | 0.5 |
Foreign | 48.0 |  |  | 14.1 |  |  | 60.8 |
Total current (benefit) expense | $ | 70.1 |  |  | $ | (89.2 | ) |  | $ | 430.7 |
Deferred expense (benefit): |  |  |  |  |  |  |  |
U.S. Federal | $ | (127.8 | ) |  | $ | 11.9 |  |  | $ | 82.5 |
State | (13.2 | ) |  | 0.6 |  |  | 0.1 |
Foreign | (349.3 | ) |  | (74.7 | ) |  | (31.4 | )
Total deferred (benefit) expense | (490.3 | ) |  | (62.2 | ) |  | 51.2 |
Total Income tax (benefit) provision | $ | (420.2 | ) |  | $ | (151.4 | ) |  | $ | 481.9 |
Reconciliation of expected federal income tax expense to actual | The sources and tax effects of the differences in the total income tax provision are as follows (amounts in millions):
| Year Ended March 31,
| 2020 |  | 2019 |  | 2018
Computed expected income tax provision | $ | 31.5 |  |  | $ | 43.0 |  |  | $ | 232.6 |
State income taxes, net of federal benefit | (5.4 | ) |  | (8.7 | ) |  | (1.3 | )
Foreign income taxed at lower than the federal rate | (78.8 | ) |  | (94.0 | ) |  | (208.8 | )
Impact of the Act - one-time transition tax, net of foreign tax credits | — |  |  | 13.1 |  |  | 653.7 |
Impact of the Act - deferred tax effects, net of valuation allowance | — |  |  | — |  |  | (136.7 | )
GILTI and foreign-derived intangible income ("FDII"), net of credits | 54.7 |  |  | 95.4 |  |  | — |
Business realignment of intellectual property rights | (334.8 | ) |  | (90.6 | ) |  | — |
Increases related to current year tax positions | 20.1 |  |  | 9.0 |  |  | 32.0 |
Decreases related to prior year tax positions (1) | (28.5 | ) |  | (75.1 | ) |  | (11.3 | )
Share-based compensation | (11.1 | ) |  | (13.3 | ) |  | (27.2 | )
Research and development tax credits | (40.8 | ) |  | (27.5 | ) |  | (17.0 | )
Intercompany prepaid tax asset amortization | — |  |  | 5.2 |  |  | 7.4 |
Foreign exchange | (0.9 | ) |  | 4.6 |  |  | (20.5 | )
Other | 2.4 |  |  | (2.6 | ) |  | (0.5 | )
Change in valuation allowance | (28.6 | ) |  | (9.9 | ) |  | (20.5 | )
Total income tax provision (benefit) | $ | (420.2 | ) |  | $ | (151.4 | ) |  | $ | 481.9 |
(1) The release of prior year tax positions during fiscal 2020 increased the basic and diluted net income per common share by $0.12 and $0.11, respectively. The release of prior year tax positions during fiscal 2019 increased the basic and diluted net income per common share by $0.32 and $0.30, respectively. The release of prior year tax positions during fiscal 2018 increased the basic and diluted net income per common share by $0.05.
Schedule of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the Company's deferred tax assets and deferred tax liabilities are as follows (amounts in millions):
| March 31,
| 2020 |  | 2019
Deferred tax assets: |  |  |
Inventory valuation | $ | 48.5 |  |  | $ | 45.0 |
Net operating loss carryforward | 74.8 |  |  | 94.3 |
Capital loss carryforward | 9.4 |  |  | 9.6 |
Share-based compensation | 39.8 |  |  | 42.4 |
Income tax credits | 351.1 |  |  | 376.5 |
Property, plant and equipment | 31.7 |  |  | 23.6 |
Accrued expenses and other | 80.4 |  |  | 91.4 |
Intangible assets | 1,694.8 |  |  | 1,608.1 |
Lease liabilities | 20.2 |  |  | — |
Other | 14.0 |  |  | 12.6 |
Gross deferred tax assets | 2,364.7 |  |  | 2,303.5 |
Valuation allowances | (303.5 | ) |  | (332.1 | )
Deferred tax assets, net of valuation allowances | 2,061.2 |  |  | 1,971.4 |
Deferred tax liabilities: |  |  |  |  |
Convertible debt | (228.7 | ) |  | (279.3 | )
Intangible assets | (365.1 | ) |  | (721.0 | )
ROU assets | (24.3 | ) |  | — |
Other | (13.1 | ) |  | — |
Deferred tax liabilities | (631.2 | ) |  | (1,000.3 | )
Net deferred tax asset | $ | 1,430.0 |  |  | $ | 971.1 |
Reported as: |  |  |
Non-current deferred tax assets | $ | 1,748.5 |  |  | $ | 1,677.2 |
Non-current deferred tax liability | (318.5 | ) |  | (706.1 | )
Net deferred tax asset | $ | 1,430.0 |  |  | $ | 971.1 |
Summary of Valuation Allowance | A summary of additions and deductions related to the valuation allowance for deferred tax asset accounts for the years ended March 31, 2020, 2019 and 2018 follows (amounts in millions):
| Balance at Beginning of Year |  | Additions Charged to Costs and Expenses |  | Additions Charged to Other Accounts |  | Deductions |  | Balance at End of Year
Valuation allowance for deferred tax assets: |  |  |  |  |  |  |  |  |
Fiscal 2020 | $ | 332.1 |  |  | $ | 26.0 |  |  | $ | — |  |  | $ | (54.6 | ) |  | $ | 303.5 |
Fiscal 2019 | $ | 204.5 |  |  | $ | 16.2 |  |  | $ | 175.8 |  |  | $ | (64.4 | ) |  | $ | 332.1 |
Fiscal 2018 | $ | 210.1 |  |  | $ | 36.2 |  |  | $ | — |  |  | $ | (41.8 | ) |  | $ | 204.5 |
Rollforward of unrecognized tax benefits | The following table summarizes the activity related to the Company's gross unrecognized tax benefits from April 1, 2017 to March 31, 2020 (amounts in millions):
| Year Ended March 31,
| 2020 |  | 2019 |  | 2018
Beginning balance | $ | 763.4 |  |  | $ | 436.0 |  |  | $ | 398.5 |
Increases related to acquisitions | — |  |  | 329.7 |  |  | — |
Decreases related to settlements with tax authorities | (1.2 | ) |  | (8.3 | ) |  | (0.1 | )
Decreases related to statute of limitation expirations | (30.9 | ) |  | (16.2 | ) |  | (10.9 | )
Increases related to current year tax positions | 30.2 |  |  | 27.8 |  |  | 30.3 |
Increases (decreases) related to prior year tax positions | (4.2 | ) |  | (5.6 | ) |  | 18.2 |
Ending balance | $ | 757.3 |  |  | $ | 763.4 |  |  | $ | 436.0 |

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- 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://fasb.org/us-gaap/role/ref/legacyRef -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
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