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v3.22.1

Income Taxes (Tables) | 12 Months Ended
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Mar. 31, 2022
Income Tax Disclosure [Abstract] |
Components of Income Tax Expense (Benefit) | The income tax provision consists of the following (amounts in millions):
| Fiscal Year Ended March 31,
| 2022 |  | 2021 |  | 2020
Pretax (loss) income: |  |  |  |  |
U.S. | $ | 132.2 |  |  | $ | (301.7) |  |  | $ | (485.2) |
Foreign | 1,350.3 |  |  | 641.2 |  |  | 635.6 |
| $ | 1,482.5 |  |  | $ | 339.5 |  |  | $ | 150.4 |
Current expense (benefit): |  |  |  |  |
U.S. Federal | $ | 191.6 |  |  | $ | 54.8 |  |  | $ | 21.1 |
State | 3.7 |  |  | 2.0 |  |  | 1.0 |
Foreign | (6.2) |  |  | 72.2 |  |  | 48.0 |
Total current expense (benefit) | $ | 189.1 |  |  | $ | 129.0 |  |  | $ | 70.1 |
Deferred expense (benefit): |  |  |  |  |
U.S. Federal | $ | (78.7) |  |  | $ | (215.4) |  |  | $ | (127.8) |
State | (9.1) |  |  | (22.9) |  |  | (13.2) |
Foreign | 95.7 |  |  | 99.4 |  |  | (349.3) |
Total deferred benefit | 7.9 |  |  | (138.9) |  |  | (490.3) |
Total income tax provision (benefit) | $ | 197.0 |  |  | $ | (9.9) |  |  | $ | (420.2) |
Reconciliation of Expected Federal Income Tax Expense to Actual | The provision for income taxes differs from the amount computed by applying the statutory federal tax rate to income before income taxes. The sources and tax effects of the differences in the total income tax provision are as follows (amounts in millions):
| Fiscal Year Ended March 31,
| 2022 |  | 2021 |  | 2020
Computed expected income tax provision | $ | 311.3 |  |  | $ | 71.3 |  |  | $ | 31.5 |
State income taxes, net of federal benefit | 3.5 |  |  | (3.8) |  |  | (5.4) |
Effects of foreign operations - rate differential | (96.8) |  |  | (37.7) |  |  | (67.4) |
Effects of foreign operations - other, net of foreign tax credits | 139.9 |  |  | 122.5 |  |  | 62.1 |
Foreign-derived intangible income ("FDII") | (27.3) |  |  | (10.5) |  |  | (10.8) |
Business realignment of intellectual property rights | (3.1) |  |  | (63.8) |  |  | (334.8) |
Change in uncertain tax positions | (47.1) |  |  | 28.1 |  |  | (8.4) |
Share-based compensation | (17.6) |  |  | (12.3) |  |  | (11.1) |
R&D tax credits | (49.5) |  |  | (47.6) |  |  | (40.8) |
Income tax holidays | (22.5) |  |  | (11.1) |  |  | (11.4) |
Convertible debt settlement | (25.5) |  |  | (48.1) |  |  | — |
Other | 31.7 |  |  | 16.4 |  |  | 4.9 |
Change in valuation allowance | — |  |  | (13.3) |  |  | (28.6) |
Total income tax provision (benefit) | $ | 197.0 |  |  | $ | (9.9) |  |  | $ | (420.2) |
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,
| 2022 |  | 2021
Deferred tax assets: |  |  |
Accrued expenses | $ | 81.6 |  |  | $ | 83.6 |
Capital loss carryforward | 9.8 |  |  | 6.3 |
Deferred revenue | 90.4 |  |  | — |
Income tax credits | 306.6 |  |  | 331.1 |
Intangible assets | 1,479.9 |  |  | 1,581.5 |
Inventory valuation | 26.8 |  |  | 46.0 |
Lease liabilities | 36.1 |  |  | 37.1 |
Net operating loss carryforward | 77.0 |  |  | 68.0 |
Property, plant and equipment | 40.8 |  |  | 32.7 |
Share-based compensation | 45.8 |  |  | 46.5 |
Other | 5.5 |  |  | 17.4 |
Gross deferred tax assets | 2,200.3 |  |  | 2,250.2 |
Valuation allowances | (290.3) |  |  | (290.3) |
Deferred tax assets, net of valuation allowances | 1,910.0 |  |  | 1,959.9 |
Deferred tax liabilities: |  |  |
Convertible debt | (22.7) |  |  | (53.9) |
Intangible assets | (92.4) |  |  | (158.1) |
ROU assets | (33.6) |  |  | (34.5) |
Other | (4.0) |  |  | (8.1) |
Deferred tax liabilities | (152.7) |  |  | (254.6) |
Net deferred tax asset | $ | 1,757.3 |  |  | $ | 1,705.3 |
Reported as: |  |  |
Non-current deferred tax assets | $ | 1,797.1 |  |  | $ | 1,749.2 |
Non-current deferred tax liability | (39.8) |  |  | (43.9) |
Net deferred tax asset | $ | 1,757.3 |  |  | $ | 1,705.3 |
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, 2022, 2021 and 2020 follows (amounts in millions):
| Balance at Beginning of Year |  | Additions Charged to Costs and Expenses |  |  |  | Deductions |  | Balance at End of Year
Fiscal 2022 | $ | 290.3 |  |  | $ | 7.1 |  |  |  |  | $ | (7.1) |  |  | $ | 290.3 |
Fiscal 2021 | $ | 303.5 |  |  | $ | 8.1 |  |  |  |  | $ | (21.3) |  |  | $ | 290.3 |
Fiscal 2020 | $ | 332.1 |  |  | $ | 26.0 |  |  |  |  | $ | (54.6) |  |  | $ | 303.5 |
Rollforward of Unrecognized Tax Benefits | The following table summarizes the activity related to the Company's gross unrecognized tax benefits from April 1, 2019, to March 31, 2022 (amounts in millions):
| Fiscal Year Ended March 31,
| 2022 |  | 2021 |  | 2020
Beginning balance | $ | 826.3 |  |  | $ | 757.3 |  |  | $ | 763.4 |
Decreases related to settlements with tax authorities | (0.4) |  |  | (6.0) |  |  | (1.2) |
Decreases related to statute of limitation expirations | (12.6) |  |  | (10.9) |  |  | (30.9) |
Increases related to current year tax positions | 28.2 |  |  | 35.4 |  |  | 30.2 |
Increases (decreases) related to prior year tax positions | (37.4) |  |  | 50.5 |  |  | (4.2) |
Ending balance | $ | 804.1 |  |  | $ | 826.3 |  |  | $ | 757.3 |

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