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v3.26.1

Income Taxes (Tables) | 12 Months Ended
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Mar. 31, 2026
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense | The components of income tax expense were as follows:
|  | Fiscal Year Ended March 31,
|  | 2026 |  | 2025 |  | 2024
Current |  |  |  |  |  |
U.S. Federal |  | $ | (94) |  |  | $ | 280 |  |  | $ | 229 |
State and local |  | 67 |  |  | 90 |  |  | 117 |
Foreign |  | 3 |  |  | 5 |  |  | 3 |
Total current |  | (24) |  |  | 375 |  |  | 349 |
Deferred |  |  |  |  |  |
U.S. Federal |  | 61 |  |  | (73) |  |  | (94) |
State and local |  | (26) |  |  | (18) |  |  | (6) |
Foreign |  | — |  |  | — |  |  | (1) |
Total deferred |  | 35 |  |  | (91) |  |  | (101) |
Total income tax expense |  | $ | 11 |  |  | $ | 284 |  |  | $ | 248 |
Schedule of Reconciliation of Effective Income Tax Rate | Differences between the effective income tax rate and the statutory U.S. federal income tax rate are as follows:
|  | 2026
|  | Amount |  | Rate
Income tax expense computed at U.S. Federal statutory rate |  | $ | 181 |  |  | 21.0%
State and local income taxes, net of federal income tax effect (1) |  | 31 |  |  | 3.6%
Effect of Cross Border Taxation: |  |  |  |
Foreign Derived Intangible Income (FDII) |  | (29) |  |  | (3.4)%
Other |  | (3) |  |  | (0.3)%
Research and development and other federal credits |  | (103) |  |  | (12.0)%
Nontaxable and non-deductible items |  | 10 |  |  | 1.2%
Changes in uncertain tax positions |  | (80) |  |  | (9.3)%
Other adjustments |  | 4 |  |  | 0.5%
Income tax expense at the effective income tax rate |  | $ | 11 |  |  | 1.3%
(1) State taxes in Virginia and Maryland made up the majority (greater than 50%) of the tax effect in this category for fiscal 2026. The reconciliation from federal income tax expense computed using the statutory federal income tax rate to federal income tax expense at our effective income tax rate, prior to the adoption of ASU 2023-09, is shown below for the comparative periods:
|  | 2025 |  | 2024
Income tax expense computed at U.S. Federal statutory rate |  | $ | 256 |  |  |  |  | $ | 179 |  |  |
Increases (reductions) resulting from: |  |  |  |  |  |  |  |
State and local income taxes, net of federal income tax effect |  | 55 |  |  |  |  | 85 |  |  |
Foreign income taxes, net of federal tax |  | — |  |  |  |  | (8) |  |  |
Non-deductible expenses, including non-deductible penalties |  | 7 |  |  |  |  | 5 |  |  |
Excess tax benefits from stock-based compensation |  | (6) |  |  |  |  | (10) |  |  |
Research and development and other federal credits |  | (40) |  |  |  |  | (31) |  |  |
Executive compensation - 162(m) |  | 7 |  |  |  |  | 6 |  |  |
Foreign Derived Intangible Income (FDII) |  | (13) |  |  |  |  | (14) |  |  |
Changes in uncertain tax positions (including indirect effects) |  | 27 |  |  |  |  | 38 |  |  |
Other |  | (9) |  |  |  |  | (2) |  |  |
Income tax expense at the effective income tax rate |  | $ | 284 |  |  |  |  | $ | 248 |  |  |
Schedule of Cash Paid for Taxes | The amount of cash income taxes paid by the Company were as follows:
|  | Fiscal Year Ended March 31,
|  | 2026 |  |  |  |
U.S. Federal |  | $ | — |  |  |  |  |
State and local: |  |  |  |  |  |
District of Columbia |  | 24 |  |  |  |  |
Maryland |  | 17 |  |  |  |  |
Virginia |  | 37 |  |  |  |  |
All other states |  | 20 |  |  |  |  |
Foreign |  | 5 |  |  |  |  |
Total income taxes paid, net of refunds received |  | $ | 103 |  |  |  |  |
Schedule of Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred income tax assets and liabilities consisted of the following on the dates below:
|  | March 31,
|  | 2026 |  | 2025
Deferred tax assets: |  |  |  |
Accrued expenses |  | $ | 68 |  |  | $ | 66 |
Deferred compensation |  | 60 |  |  | 59 |
Stock-based compensation |  | 12 |  |  | 12 |
Postretirement benefits |  | 46 |  |  | 47 |
Net operating loss and other carryforwards |  | 206 |  |  | 9 |
Research and development expenditures and indirect effects |  | 98 |  |  | 335 |
State tax credits |  | 45 |  |  | 1 |
Operating lease liabilities |  | 52 |  |  | 62 |
Other |  | 6 |  |  | 12 |
Total gross deferred tax assets |  | 593 |  |  | 603 |
Less: valuation allowance |  | (10) |  |  | (9) |
Total net deferred income tax assets |  | 583 |  |  | 594 |
Deferred tax liabilities: |  |  |  |
Unbilled receivables |  | (90) |  |  | (89) |
Intangible assets |  | (112) |  |  | (100) |
Property and equipment |  | (33) |  |  | (25) |
Operating lease right-of-use assets |  | (38) |  |  | (46) |
Other |  | (16) |  |  | (2) |
Total deferred tax liabilities |  | (289) |  |  | (262) |
Net deferred tax asset |  | $ | 294 |  |  | $ | 332 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of potential tax benefits for the periods presented is as follows:
|  | March 31,
|  | 2026 |  | 2025 |  | 2024
Beginning of year |  | $ | 125 |  |  | $ | 104 |  |  | $ | 548 |
Increases in prior year position |  | 21 |  |  | 4 |  |  | 41 |
Increases in current year position |  | 17 |  |  | 17 |  |  | 13 |
Decreases in prior year position |  | (20) |  |  | — |  |  | (474) |
Settlements with taxing authorities |  | (63) |  |  | — |  |  | (24) |
Lapse of statute of limitations |  | (9) |  |  | — |  |  | — |
End of year |  | $ | 71 |  |  | $ | 125 |  |  | $ | 104 |

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