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Income Taxes (Tables) | 12 Months Ended
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Mar. 31, 2025
Income Tax Disclosure [Abstract] |
Sources of Income Before Income Taxes Classified Between Domestic And Foreign Entities | The sources of income (loss) from continuing operations, before income taxes, classified between domestic entities and those entities domiciled outside of the United States, are as follows:
|  | Fiscal Years Ended
(in millions) |  | March 31, 2025 |  | March 31, 2024 |  | March 31, 2023
Domestic entities |  | $ | (84) |  |  | $ | 53 |  |  | $ | (206) |
Entities outside the United States |  | 714 |  |  | 56 |  |  | (679) |
Total |  | $ | 630 |  |  | $ | 109 |  |  | $ | (885) |
Components of Income Tax Provision | The income tax expense (benefit) on income (loss) from continuing operations is comprised of:
|  | Fiscal Years Ended
(in millions) |  | March 31, 2025 |  | March 31, 2024 |  | March 31, 2023
Current: |  |  |  |  |  |
Federal |  | $ | 104 |  |  | $ | 94 |  |  | $ | 96 |
State |  | (14) |  |  | 57 |  |  | 39 |
Foreign |  | 179 |  |  | 288 |  |  | 155 |
|  | 269 |  |  | 439 |  |  | 290 |
Deferred: |  |  |  |  |  |
Federal |  | (102) |  |  | (186) |  |  | (192) |
State |  | (28) |  |  | (38) |  |  | (47) |
Foreign |  | 95 |  |  | (192) |  |  | (370) |
|  | (35) |  |  | (416) |  |  | (609) |
Total income tax expense (benefit) |  | $ | 234 |  |  | $ | 23 |  |  | $ | (319) |
Federal Statutory Tax Rate To Effective Tax Rate Reconciliation | The major elements contributing to the difference between the U.S. federal statutory tax rate and the effective tax rate ("ETR") for continuing operations is below.
|  | Fiscal Years Ended
|  | March 31, 2025 |  | March 31, 2024 |  | March 31, 2023
Statutory rate |  | 21.0 | % |  | 21.0 | % |  | (21.0) | %
State income tax, net of federal tax |  | 0.3 |  |  | 3.7 |  |  | (1.4) |
Foreign tax rate differential |  | 23.0 |  |  | (152.3) |  |  | (2.3) |
Change in valuation allowances |  | (3.5) |  |  | 146.8 |  |  | (1.3) |
Income tax and foreign tax credits |  | (13.3) |  |  | (92.7) |  |  | (8.0) |
Change in uncertain tax positions |  | (8.3) |  |  | — |  |  | 1.2 |
Withholding taxes |  | 2.1 |  |  | 58.7 |  |  | 3.5 |
U.S. tax on foreign income |  | 9.4 |  |  | 35.8 |  |  | 5.8 |
Excess tax benefit or expense for stock compensation |  | 1.1 |  |  | (0.9) |  |  | 0.6 |
Capitalized transaction costs |  | — |  |  | 0.9 |  |  | 0.2 |
Base erosion and transition taxes |  | 0.3 |  |  | (26.6) |  |  | (9.1) |
Impact of business divestitures |  | 0.2 |  |  | (5.5) |  |  | (7.6) |
Indemnification costs |  | 0.5 |  |  | 3.7 |  |  | 1.2 |
Interest on tax receivables |  | (2.5) |  |  | — |  |  | — |
Tax audits |  | 1.9 |  |  | 22.0 |  |  | — |
Other items, net |  | 4.9 |  |  | 6.5 |  |  | 2.2 |
Effective tax rate |  | 37.1 | % |  | 21.1 | % |  | (36.0) | %
Components of Deferred Tax Assets and Liabilities | The deferred tax assets (liabilities) were as follows:
|  | As of
(in millions) |  | March 31, 2025 |  | March 31, 2024
Deferred tax assets |  |  |  |
Tax loss/credit carryforwards |  | 2,477 |  |  | 2,535 |
Accrued interest |  | 19 |  |  | 24 |
Operating lease liabilities |  | 132 |  |  | 172 |
Contract accounting |  | 122 |  |  | 127 |
Depreciation and amortization |  | 252 |  |  | 129 |
Other assets |  | 310 |  |  | 298 |
Total deferred tax assets |  | 3,312 |  |  | 3,285 |
Valuation allowance |  | (2,242) |  |  | (2,264) |
Net deferred tax assets |  | 1,070 |  |  | 1,021 |
Deferred tax liabilities |  |  |  |
Operating right-of-use asset |  | (127) |  |  | (161) |
Investment basis differences |  | (10) |  |  | (13) |
Employee benefits |  | (82) |  |  | (7) |
Other liabilities |  | (133) |  |  | (166) |
Total deferred tax liabilities |  | (352) |  |  | (347) |
Total net deferred tax assets (liabilities) |  | $ | 718 |  |  | $ | 674 |
Schedule of Deferred Tax Assets and Liabilities | Income tax related assets are included in the accompanying balance sheets as follows:
|  | As of
(in millions) |  | March 31, 2025 |  | March 31, 2024
Current: |  |  |  |
Income tax receivables and prepaid taxes |  | $ | 43 |  |  | $ | 44 |
|  | $ | 43 |  |  | $ | 44 |
Non-current: |  |  |  |
Income taxes receivable and prepaid taxes |  | $ | 264 |  |  | $ | 258 |
Deferred tax assets |  | 819 |  |  | 804 |
|  | $ | 1,083 |  |  | $ | 1,062 |
Total |  | $ | 1,126 |  |  | $ | 1,106 |
Income tax related liabilities are included in the accompanying balance sheet as follows:
|  | As of
(in millions) |  | March 31, 2025 |  | March 31, 2024
Current: |  |  |  |
Income taxes payable |  | $ | (64) |  |  | $ | (134) |
|  | $ | (64) |  |  | $ | (134) |
Non-current: |  |  |  |
Deferred taxes |  | $ | (101) |  |  | $ | (130) |
Income taxes payable |  | (55) |  |  | (32) |
Liability for uncertain tax positions |  | (339) |  |  | (394) |
|  | $ | (495) |  |  | $ | (556) |
Total |  | $ | (559) |  |  | $ | (690) |
Summary of Operating Loss Carryforwards | The following table provides information on the Company's various tax carryforwards:
|  | As of March 31, 2025 |  | As of March 31, 2024
(in millions) |  | Total |  | With No Expiration |  | With Expiration |  | Expiration Dates Through |  | Total |  | With No Expiration |  | With Expiration |  | Expiration Dates Through
Net operating loss carryforwards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | N/A |  | $ | 62 |  |  | $ | 62 |  |  | $ | — |  |  | N/A
State |  | $ | 332 |  |  | $ | 161 |  |  | $ | 171 |  |  | 2045 |  | $ | 387 |  |  | $ | 191 |  |  | $ | 196 |  |  | 2044
Foreign |  | $ | 10,369 |  |  | $ | 5,402 |  |  | $ | 4,967 |  |  | 2042 |  | $ | 10,211 |  |  | $ | 5,359 |  |  | $ | 4,852 |  |  | 2041
Tax credit carryforwards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 0 |  | $ | 3 |  |  | $ | — |  |  | $ | 3 |  |  | 2044
State |  | $ | 5 |  |  | $ | — |  |  | $ | 5 |  |  | 2040 |  | $ | 5 |  |  | $ | — |  |  | $ | 5 |  |  | 2034
Foreign |  | $ | 2 |  |  | $ | — |  |  | $ | 2 |  |  | 2038 |  | $ | 2 |  |  | $ | — |  |  | $ | 2 |  |  | 2037
Capital loss carryforwards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 42 |  |  | $ | 42 |  |  | $ | — |  |  | N/A |  | $ | 42 |  |  | $ | 42 |  |  | $ | — |  |  | N/A
State |  | $ | 47 |  |  | $ | 47 |  |  | $ | — |  |  | N/A |  | $ | 46 |  |  | $ | 46 |  |  | $ | — |  |  | N/A
Foreign |  | $ | 34 |  |  | $ | 34 |  |  | $ | — |  |  | N/A |  | $ | 30 |  |  | $ | 30 |  |  | $ | — |  |  | N/A
Summary of Tax Credit Carryforwards | The following table provides information on the Company's various tax carryforwards:
|  | As of March 31, 2025 |  | As of March 31, 2024
(in millions) |  | Total |  | With No Expiration |  | With Expiration |  | Expiration Dates Through |  | Total |  | With No Expiration |  | With Expiration |  | Expiration Dates Through
Net operating loss carryforwards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | N/A |  | $ | 62 |  |  | $ | 62 |  |  | $ | — |  |  | N/A
State |  | $ | 332 |  |  | $ | 161 |  |  | $ | 171 |  |  | 2045 |  | $ | 387 |  |  | $ | 191 |  |  | $ | 196 |  |  | 2044
Foreign |  | $ | 10,369 |  |  | $ | 5,402 |  |  | $ | 4,967 |  |  | 2042 |  | $ | 10,211 |  |  | $ | 5,359 |  |  | $ | 4,852 |  |  | 2041
Tax credit carryforwards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 0 |  | $ | 3 |  |  | $ | — |  |  | $ | 3 |  |  | 2044
State |  | $ | 5 |  |  | $ | — |  |  | $ | 5 |  |  | 2040 |  | $ | 5 |  |  | $ | — |  |  | $ | 5 |  |  | 2034
Foreign |  | $ | 2 |  |  | $ | — |  |  | $ | 2 |  |  | 2038 |  | $ | 2 |  |  | $ | — |  |  | $ | 2 |  |  | 2037
Capital loss carryforwards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 42 |  |  | $ | 42 |  |  | $ | — |  |  | N/A |  | $ | 42 |  |  | $ | 42 |  |  | $ | — |  |  | N/A
State |  | $ | 47 |  |  | $ | 47 |  |  | $ | — |  |  | N/A |  | $ | 46 |  |  | $ | 46 |  |  | $ | — |  |  | N/A
Foreign |  | $ | 34 |  |  | $ | 34 |  |  | $ | — |  |  | N/A |  | $ | 30 |  |  | $ | 30 |  |  | $ | — |  |  | N/A
Liabilities For Uncertain Tax Positions | In accordance with ASC 740, the Company’s liability for uncertain tax positions was as follows:
|  | Fiscal Years Ended
(in millions) |  | March 31, 2025 |  | March 31, 2024 |  |
Tax |  | $ | 291 |  |  | $ | 361 |  |  |
Interest |  | 117 |  |  | 103 |  |  |
Penalties |  | 3 |  |  | 4 |  |  |
Reduction of receivables |  | (71) |  |  | (72) |  |  |
Net of tax attributes |  | (1) |  |  | (2) |  |  |
Total |  | $ | 339 |  |  | $ | 394 |  |  |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the activity related to the Company’s uncertain tax positions (excluding interest and penalties and related tax attributes):
|  | Fiscal Years Ended
(in millions) |  | March 31, 2025 |  | March 31, 2024 |  | March 31, 2023
Balance at beginning of fiscal year |  | $ | 361 |  |  | $ | 399 |  |  | $ | 422 |
Gross increases related to prior year tax positions |  | 37 |  |  | 14 |  |  | 31 |
Gross decreases related to prior year tax positions |  | (54) |  |  | (55) |  |  | (17) |
Gross increases related to current year tax positions |  | 15 |  |  | 8 |  |  | 8 |
Gross decreases related to current year tax positions |  | (12) |  |  | — |  |  | — |
Settlements and statute of limitation expirations |  | (55) |  |  | (5) |  |  | (43) |
Foreign exchange and others |  | (1) |  |  | — |  |  | (2) |
Balance at end of fiscal year |  | $ | 291 |  |  | $ | 361 |  |  | $ | 399 |
Tax Examination Status | A summary of the tax years that remain subject to examination in certain of the Company’s major tax jurisdictions are:
Jurisdiction: |  | Tax Years that Remain Subject to Examination (Fiscal Year Ending):
Australia |  | 2021 and forward
United States – Federal |  | 2009 and forward
United States – Various States |  | 2009 and forward
Canada |  | 2010 and forward
France |  | 2019 and forward
Germany |  | 2010 and forward
India |  | 2001 and forward
United Kingdom |  | 2018 and forward

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