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VARIABLE INTEREST ENTITIES | 3 Months Ended
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Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The Company controls Nextracker Inc. ("Nextracker") through its holding of Class B common stock that does not participate in the earnings of Nextracker. As such, the shareholders of the equity at risk in Nextracker (the Class A common stock shareholders) do not have the power to direct the key activities of Nextracker and consequently Nextracker is a variable interest entity ("VIE"). The Company has the ability to control Nextracker's activities through its control of 61.2% and 61.4% of the voting rights of Nextracker as of June 30, 2023 and March 31, 2023, respectively. The Company also has the ability to receive significant benefits from the VIE (through its ability to convert its investments in Nextracker and Nextracker LLC into Class A common stock of Nextracker or cash) and as such the Company has been determined to be the primary beneficiary of the VIE. As such, the Company continues to consolidate Nextracker and the interests in Nextracker held by third parties are presented as a noncontrolling interest. Evaluation of the VIE model and identification of the primary beneficiary requires significant judgements to be made regarding which entities can control the activities of a VIE, who can receive benefits or absorb losses from the VIE and the significance of those benefits and losses to the VIE. As of June 30, 2023 and March 31, 2023, noncontrolling interest was $380 million and $355 million, respectively. Net income attributable to noncontrolling interest was $25 million and zero for the three-month periods ended June 30, 2023 and July 1, 2022, respectively. As a result of the Nextracker's February 13, 2023 initial public offering ("IPO"), the noncontrolling interest previously determined to be redeemable prior to the IPO did not exist as of June 30, 2023. Net income attributable to redeemable noncontrolling interest was zero and $6 million for the three-month periods ended June 30, 2023 and July 1, 2022, respectively. The carrying amounts and classification of the VIE's external assets and liabilities as of June 30, 2023 and March 31, 2023 are included in the condensed consolidated balance sheets as follows:
| As of June 30, 2023 |  | As of March 31, 2023
| (In millions) (Unaudited)
Assets |  |  |
Current assets: |  |  |
Cash | $ | 355 |  |  | $ | 130 |
Accounts receivable, net | 223 |  |  | 271 |
Contract assets | 320 |  |  | 298 |
Inventories | 137 |  |  | 138 |
Other current assets | 82 |  |  | 35 |
Total current assets | 1,117 |  |  | 872 |
Property and equipment, net | 7 |  |  | 7 |
Goodwill | 265 |  |  | 265 |
Other intangible assets, net | 1 |  |  | 1 |
Other assets | 267 |  |  | 275 |
Total assets | $ | 1,657 |  |  | $ | 1,420 |
Liabilities |  |  |
Current liabilities: |  |  |
Accounts payable | $ | 293 |  |  | $ | 211 |
Accrued expenses | 57 |  |  | 60 |
Deferred revenue | 251 |  |  | 176 |
Other current liabilities | 53 |  |  | 49 |
Total current liabilities | 654 |  |  | 496 |
Long-term debt | 147 |  |  | 147 |
Other liabilities | 277 |  |  | 280 |
Total liabilities | $ | 1,078 |  |  | $ | 923 |

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//810/tableOfContent + Details
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