BALANCE SHEET ITEMS

9 Months Ended

Dec. 31, 2024

Balance Sheet Related Disclosures [Abstract]

Inventories

The components of inventories, net of applicable lower of cost and net realizable value write-downs, were as follows:


	As of December 31, 2024		As of March 31, 2024
	(In millions)
Raw materials	$	4,332	$	5,045
Work-in-progress	465		623
Finished goods	473		537
	$	5,270	$	6,205

Goodwill and Other Intangible Assets

The Company completed the acquisitions of Crown Technical Systems (“Crown”) and JETCOOL Technologies Inc. (“JetCool”) in the Industrial and CEC reporting units, respectively. Crown’s goodwill is deductible for tax purposes, while JetCool’s is non-deductible. Refer to Note 13 for further details.

The following table summarizes the activity in the Company's goodwill during the nine-month period ended December 31, 2024:


	FAS		FRS		Total
	(In millions)
Balance at March 31, 2024	$	371	$	764	$	1,135
Acquisitions (1)	38		170		208
Foreign currency translation adjustments	(1)		(10)		(11)
Balance at December 31, 2024	$	408	$	924	$	1,332

(1) Represents goodwill of $170 million from the Crown acquisition, $30 million from the JetCool acquisition and $8 million from an acquisition completed in the first quarter of fiscal year 2025.

The components of acquired intangible assets are as follows:


	As of December 31, 2024						As of March 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)
Intangible assets:
Customer-related intangibles	$	405	$	(173)	$	232	$	316	$	(186)	$	130
Licenses and other intangibles	313		(202)		111		298		(183)		115
Total	$	718	$	(375)	$	343	$	614	$	(369)	$	245

The gross carrying amounts of intangible assets are removed when fully amortized. During the nine-month period ended December 31, 2024, the total value of intangible assets increased by $147 million as a result of the Company's estimated value of intangible assets from the acquisitions. Refer to Note 13 for further details.

The estimated future annual amortization expense for intangible assets is as follows:


Fiscal Year Ending March 31,	Amount
	(In millions)
2025 (1)	$	24
2026	72
2027	61
2028	45
2029	42
Thereafter	99
Total amortization expense	$	343

____________________________________________________________

(1)Represents estimated amortization for the remaining fiscal three-month period ending March 31, 2025.

Customer Working Capital Advances

Customer working capital advances were $1.6 billion and $2.2 billion as of December 31, 2024 and March 31, 2024, respectively. The customer working capital advances are not interest-bearing, do not generally have fixed repayment dates and are generally reduced as the underlying working capital is consumed in production or the customer working capital advance agreement is terminated.

Other Non-Current Assets

Other non-current assets include deferred tax assets of $662 million and $644 million as of December 31, 2024 and March 31, 2024, respectively.

Other Current Liabilities

Other current liabilities include customer-related accruals of $226 million and $277 million as of December 31, 2024 and March 31, 2024, respectively.

Supplier Finance Programs

The Company has four supplier finance programs, all of which have substantially similar characteristics, with various financial institutions that act as the paying agent for certain payables of the Company. The Company established these programs through agreements with the financial institutions to enable more efficient payment processing to our suppliers while also providing our suppliers a potential source of liquidity to the extent they choose to sell their receivables to the financial institutions in advance of the due dates. Our suppliers’ participation in the programs is voluntary, the Company is not involved in negotiations of the suppliers’ arrangements with the financial institutions to sell their receivables, and our rights and obligations to our suppliers are not impacted by our suppliers’ decisions to sell amounts under these programs. Under these supplier finance programs, the Company pays the financial institutions the stated amount of confirmed invoices from its participating suppliers on the original maturity dates of the invoices. All payment terms are short-term in nature and are not dependent on whether the suppliers participate in the supplier finance programs or if the suppliers elect to receive early payment from the financial institutions. No guarantees are provided by the Company under the supplier finance programs and the Company incurs no costs related to the programs. We have no economic interest in a supplier’s decision to participate in the supplier finance programs.

Obligations under these programs are classified within accounts payable on the condensed consolidated balance sheets, with the associated payments reflected in the operating activities section of the condensed consolidated statement of cash flows. The Company's outstanding obligations confirmed as valid under its supplier finance programs as of December 31, 2024 and March 31, 2024 were $127 million and $123 million, respectively.