XML 64 R44.htm IDEA: XBRL DOCUMENT v3.19.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Components of income tax expense (benefit)
The income tax provision consists of the following (amounts in millions):

 
Year Ended March 31,
 
2019
 
2018
 
2017
Pretax (loss) income:
 
 
 
 
 
U.S.
$
(593.4
)
 
$
(127.3
)
 
$
(279.3
)
Foreign
797.9

 
864.6

 
369.1

 
$
204.5

 
$
737.3

 
$
89.8

Current (benefit) expense:
 
 
 
 
 
U.S. Federal
$
(98.0
)
 
$
369.4

 
$
21.3

State
(5.3
)
 
0.5

 
1.0

Foreign
14.1

 
60.8

 
23.8

Total current (benefit) expense
$
(89.2
)
 
$
430.7

 
$
46.1

Deferred expense (benefit):
 

 
 

 
 

U.S. Federal
$
11.9

 
$
82.5

 
$
(114.7
)
State
0.6

 
0.1

 
(5.4
)
Foreign
(74.7
)
 
(31.4
)
 
(6.8
)
Total deferred (benefit) expense
(62.2
)
 
51.2

 
(126.9
)
Total Income tax (benefit) provision
$
(151.4
)
 
$
481.9

 
$
(80.8
)
Reconciliation of expected federal income tax expense to actual The sources and tax effects of the differences in the total income tax provision are as follows (amounts in millions):
 
Year Ended March 31,
 
2019
 
2018
 
2017
Computed expected income tax provision
$
43.0

 
$
232.6

 
$
31.4

State income taxes, net of federal benefit
(8.7
)
 
(1.3
)
 
(4.6
)
Foreign income taxed at lower than the federal rate
(94.0
)
 
(208.8
)
 
(105.0
)
Impact of the Act - one-time transition tax, net of foreign tax credits
13.1

 
653.7

 
—

Impact of the Act - deferred tax effects, net of valuation allowance
—

 
(136.7
)
 
—

Global intangible low-taxed income
95.4

 
—

 
—

Business realignment
(90.6
)
 
—

 
—

Increases related to current year tax positions
9.0

 
32.0

 
53.7

Decreases related to prior year tax positions (1)
(75.1
)
 
(11.3
)
 
(36.3
)
Share-based compensation
(13.3
)
 
(27.2
)
 
(25.0
)
Research and development tax credits
(27.5
)
 
(17.0
)
 
(12.8
)
Intercompany prepaid tax asset amortization
5.2

 
7.4

 
7.9

Foreign exchange
4.6

 
(20.5
)
 
(1.7
)
Other
(2.6
)
 
(0.5
)
 
9.8

Change in valuation allowance
(9.9
)
 
(20.5
)
 
1.8

Total income tax provision (benefit)
$
(151.4
)
 
$
481.9

 
$
(80.8
)


(1) The release of prior year tax positions during fiscal 2019 increased the basic and diluted net income per common share by $0.32 and $0.30, respectively. The release of prior year tax positions during fiscal 2018 increased the basic and diluted net income per common share by $0.05. The release of prior year tax positions during fiscal 2017 increased the basic and diluted net income per common share by $0.17 and $0.15, respectively.
Schedule of deferred tax assets and liabilities
The tax effects of temporary differences that give rise to significant portions of the Company's deferred tax assets and deferred tax liabilities are as follows (amounts in millions):
 
March 31,
 
2019
 
2018
Deferred tax assets:
 
 
 
Deferred income on shipments to distributors
$
—

 
$
39.1

Inventory valuation
45.0

 
10.7

Net operating loss carryforward
94.3

 
101.1

Capital loss carryforward
9.6

 
10.6

Share-based compensation
42.4

 
31.4

Income tax credits
376.5

 
178.4

Property, plant and equipment
23.6

 
25.7

Accrued expenses and other
91.4

 
91.2

Intangible assets
1,608.1

 
—

Other
12.6

 
—

Gross deferred tax assets
2,303.5

 
488.2

Valuation allowances
(332.1
)
 
(204.5
)
Deferred tax assets, net of valuation allowances
1,971.4

 
283.7

Deferred tax liabilities:
 

 
 

Convertible debt
(279.3
)
 
(304.4
)
Intangible assets
(721.0
)
 
(66.6
)
Other
—

 
(18.3
)
Deferred tax liabilities
(1,000.3
)
 
(389.3
)
Net deferred tax asset (liability)
$
971.1

 
$
(105.6
)
 
 
 
 
Reported as:
 
 
 
Non-current deferred tax assets
$
1,677.2

 
$
100.2

Non-current deferred tax liability
(706.1
)
 
(205.8
)
Net deferred tax asset (liability)
$
971.1

 
$
(105.6
)
Rollforward of unrecognized tax benefits
The following table summarizes the activity related to the Company's gross unrecognized tax benefits from April 1, 2016 to March 31, 2019 (amounts in millions):
 
 
Year Ended March 31,
 
2019
 
2018
 
2017
Beginning balance
$
436.0

 
$
398.5

 
$
220.7

Increases related to acquisitions
329.7

 
—

 
193.3

Decreases related to settlements with tax authorities
(8.3
)
 
(0.1
)
 
(11.7
)
Decreases related to statute of limitation expirations
(16.2
)
 
(10.9
)
 
(7.6
)
Increases related to current year tax positions
27.8

 
30.3

 
26.3

Increases (decreases) related to prior year tax positions
(5.6
)
 
18.2

 
(22.5
)
Ending balance
$
763.4

 
$
436.0

 
$
398.5