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Income Taxes (Tables)

12 Months Ended

Mar. 31, 2014

Income from continuing operations before income taxes attributable to domestic and foreign operations

The amounts of income from continuing operations before income taxes attributable to domestic and foreign operations were as follows:



	Year Ended March 31,
(in millions)	2014		2013		2012
Domestic	$	699	$	903	$	809
Foreign	340		390		521
Income from continuing operations before income taxes	$	1,039	$	1,293	$	1,330

Income tax expense (benefit) from continuing operations

Income tax expense (benefit) from continuing operations consisted of the following:



	Year Ended March 31,
(in millions)	2014			2013			2012
Current:
Federal	$	190		$	271		$	267
State	33			39			37
Foreign	(14		)	31			119
Total current	$	209		$	341		$	423
Deferred:
Federal	$	(82	)	$	(18	)	$	4
State	(12		)	3			(22		)
Foreign	25			28			2
Total deferred	$	(69	)	$	13		$	(16	)
Total:
Federal	$	108		$	253		$	271
State	21			42			15
Foreign	11			59			121
Total income tax expense from continuing operations	$	140		$	354		$	407

Schedule of effective income tax rate reconciliation

The income tax expense from continuing operations was reconciled to the tax expense computed at the U.S. federal statutory tax rate as follows:



	Year Ended March 31,
(in millions)	2014			2013			2012
Tax expense at U.S. federal statutory tax rate	$	364		$	452		$	465
Effect of international operations	(144		)	(128		)	(89		)
U.S. federal and state tax contingencies	(123		)	(8		)	23
Domestic manufacturing deduction	(24		)	(21		)	(19		)
State taxes, net of U.S. federal tax benefit	19			23			17
Valuation allowance	23			11			(15		)
Other, net	25			25			25
Income tax expense from continuing operations	$	140		$	354		$	407

Schedule of deferred tax assets and liabilities

The tax effects of the temporary differences from continuing operations were as follows:



	At March 31,
(in millions)	2014			2013
Deferred tax assets:
Modified accrual basis accounting for revenue	$	373		$	379
Share-based compensation	30			38
Accrued expenses	36			42
Net operating losses	131			158
Intangible assets amortizable for tax purposes	4			7
Deductible state tax and interest benefits	20			51
Other	65			55
Total deferred tax assets	$	659		$	730
Valuation allowances	(87		)	(83		)
Total deferred tax assets, net of valuation allowance	$	572		$	647
Deferred tax liabilities:
Purchased software	$	76		$	95
Depreciation	6			13
Other intangible assets	34			43
Capitalized development costs	158			209
Total deferred tax liabilities	$	274		$	360
Net deferred tax asset	$	298		$	287

Roll-forward of uncertain tax positions

A roll-forward of the Company’s uncertain tax positions for all U.S. federal, state and foreign tax jurisdictions was as follows:



	At March 31,
(in millions)	2014			2013
Balance at beginning of year	$	382		$	523
Additions for tax positions related to the current year	20			30
Additions for tax positions from prior years	70			60
Reductions for tax positions from prior years	(233		)	(158		)
Settlement payments	(61		)	(55		)
Statute of limitations expiration	(11		)	(15		)
Translation and other	3			(3		)
Balance at end of year	$	170		$	382

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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