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Income Taxes (Tables)

12 Months Ended

Mar. 31, 2022

Components Of Income Before Provision For (Benefit From) Income Taxes

The components of our income before provision for (benefit from) income taxes for the fiscal years ended March 31, 2022, 2021 and 2020 are as follows (in millions):


	Year Ended March 31,
	2022		2021		2020
Domestic	$	204	$	299	$	380
Foreign	877		718		1,128
Income before provision for (benefit from) income taxes	$	1,081	$	1,017	$	1,508

Provision For (Benefit From) Income Taxes

Provision for (benefit from) income taxes for the fiscal years ended March 31, 2022, 2021 and 2020 consisted of (in millions):


	Current		Deferred		Total
Year Ended March 31, 2022
Federal	$	203	$	(190)	$	13
State	36		(26)		10
Foreign	381		(112)		269
	$	620	$	(328)	$	292
Year Ended March 31, 2021
Federal	$	251	$	(26)	$	225
State	24		(2)		22
Foreign	47		(114)		(67)
	$	322	$	(142)	$	180
Year Ended March 31, 2020
Federal	$	258	$	(14)	$	244
State	39		(2)		37
Foreign	48		(1,860)		(1,812)
	$	345	$	(1,876)	$	(1,531)

Schedule Of Differences Between Statutory Tax Rate And Effective Tax Rate

The differences between the statutory tax rate and our effective tax rate, expressed as a percentage of income before provision for (benefit from) income taxes, for the fiscal years ended March 31, 2022, 2021 and 2020 were as follows:


	Year Ended March 31,
	2022		2021		2020
Statutory federal tax expense rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	1.9	%	1.7	%	1.0	%
Differences between statutory rate and foreign effective tax rate	6.8	%	7.0	%	(8.4)	%


Excess tax benefit from equity compensation	(1.2)	%	(2.7)	%	(0.1)	%
Research and development credits	(2.8)	%	(2.4)	%	(1.2)	%

Swiss Deferred Tax Asset	2.7	%	(10.1)	%	(122.1)	%

Acquired IP intra-entity sales	(5.9)	%	—	%	—	%
The Altera opinion	—	%	—	%	5.4	%
Non-deductible stock-based compensation	3.8	%	3.3	%	2.3	%
Other	0.7	%	(0.1)	%	0.6	%
Effective tax rate	27.0	%	17.7	%	(101.5)	%

Deferred Tax Assets And Liabilities

The components of net deferred tax assets, as of March 31, 2022 and 2021 consisted of (in millions):


	As of March 31,
	2022		2021
Deferred tax assets:
Accruals, reserves and other expenses	$	185	$	158
Tax credit carryforwards	198		161
Stock-based compensation	43		43


Net operating loss and capital loss carryforwards	349		258
Swiss intra-entity tax asset	1,782		1,781
Total	2,557		2,401
Valuation allowance	(296)		(230)
Deferred tax assets, net of valuation allowance	2,261		2,171
Deferred tax liabilities:
Amortization and depreciation	(13)		(140)
ASC 606 Revenue Recognition	—		(21)
Other	(7)		(8)
Total	(20)		(169)
Deferred tax assets, net of valuation allowance and deferred tax liabilities	$	2,241	$	2,002

Schedule Of Unrecognized Tax Benefits


Balance as of March 31, 2019	$	417
Increases in unrecognized tax benefits related to prior year tax positions	111
Decreases in unrecognized tax benefits related to prior year tax positions	(4)
Increases in unrecognized tax benefits related to current year tax positions	468
Decreases in unrecognized tax benefits related to settlements with taxing authorities	—
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(5)
Changes in unrecognized tax benefits due to foreign currency translation	(4)
Balance as of March 31, 2020	983
Increases in unrecognized tax benefits related to prior year tax positions	12
Decreases in unrecognized tax benefits related to prior year tax positions	(444)
Increases in unrecognized tax benefits related to current year tax positions	55
Decreases in unrecognized tax benefits related to settlements with taxing authorities	(2)
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(27)
Changes in unrecognized tax benefits due to foreign currency translation	7
Balance as of March 31, 2021	584
Increases in unrecognized tax benefits related to prior year tax positions	5
Decreases in unrecognized tax benefits related to prior year tax positions	(21)
Increases in unrecognized tax benefits related to current year tax positions	139
Decreases in unrecognized tax benefits related to settlements with taxing authorities	(50)
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(18)
Changes in unrecognized tax benefits due to foreign currency translation	(3)
Balance as of March 31, 2022	$	636