Income Taxes (Tables)

12 Months Ended

Mar. 31, 2021

Components of Income Tax Expense (Benefit)

The income tax provision consists of the following (amounts in millions):


	Fiscal Year Ended March 31,
	2021		2020		2019
Pretax (loss) income:
U.S.	$	(301.7)	$	(485.2)	$	(593.4)
Foreign	641.2		635.6		797.9
	$	339.5	$	150.4	$	204.5
Current expense (benefit):
U.S. Federal	$	54.8	$	21.1	$	(98.0)
State	2.0		1.0		(5.3)
Foreign	72.2		48.0		14.1
Total current expense (benefit)	$	129.0	$	70.1	$	(89.2)
Deferred expense (benefit):
U.S. Federal	$	(215.4)	$	(127.8)	$	11.9
State	(22.9)		(13.2)		0.6
Foreign	99.4		(349.3)		(74.7)
Total deferred benefit	(138.9)		(490.3)		(62.2)
Total income tax benefit	$	(9.9)	$	(420.2)	$	(151.4)

Reconciliation of Expected Federal Income Tax Expense to Actual

The provision for income taxes differs from the amount computed by applying the statutory federal tax rate to income before income taxes. The sources and tax effects of the differences in the total income tax provision are as follows (amounts in millions):


	Fiscal Year Ended March 31,
	2021		2020		2019
Computed expected income tax provision	$	71.3	$	31.5	$	43.0
State income taxes, net of federal benefit	(3.8)		(5.4)		(8.7)
Foreign income taxed at lower than the federal rate	(45.7)		(78.8)		(94.0)
Impact of the TCJA - one-time transition tax, net of foreign tax credits	—		—		13.1

GILTI and foreign-derived intangible income, net of credits	101.8		54.7		95.4
Business realignment of intellectual property rights	(63.8)		(334.8)		(90.6)
Net increases related to current year tax positions	49.8		20.1		9.0
Net decreases related to prior year tax positions (1)	(4.4)		(28.5)		(75.1)
Share-based compensation	(12.3)		(11.1)		(13.3)
Research and development tax credits	(48.4)		(40.8)		(27.5)

Intercompany prepaid tax asset amortization	—		—		5.2

Foreign exchange	(6.5)		(0.9)		4.6
Convertible debt settlement	(48.1)		—		—
Subpart-F income	6.4		4.1		10.7
Other	7.1		(1.7)		(13.3)
Change in valuation allowance	(13.3)		(28.6)		(9.9)
Total income tax benefit	$	(9.9)	$	(420.2)	$	(151.4)

(1) The release of prior year tax positions during fiscal 2021 increased each of the basic and diluted net income per common share by $0.02. The release of prior year tax positions during fiscal 2020 increased the basic and diluted net income per common share by $0.12 and $0.11, respectively. 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.

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,
	2021		2020
Deferred tax assets:

Inventory valuation	$	46.0	$	48.5
Net operating loss carryforward	68.0		74.8
Capital loss carryforward	6.3		9.4
Share-based compensation	46.5		39.8
Income tax credits	331.1		351.1
Property, plant and equipment	32.7		31.7
Accrued expenses	83.6		80.4
Intangible assets	1,581.5		1,694.8
Lease liabilities	37.1		20.2
Other	17.4		14.0
Gross deferred tax assets	2,250.2		2,364.7
Valuation allowances	(290.3)		(303.5)
Deferred tax assets, net of valuation allowances	1,959.9		2,061.2
Deferred tax liabilities:
Convertible debt	(53.9)		(228.7)
Intangible assets	(158.1)		(365.1)
ROU assets	(34.5)		(24.3)
Other	(8.1)		(13.1)
Deferred tax liabilities	(254.6)		(631.2)
Net deferred tax asset	$	1,705.3	$	1,430.0

Reported as:

Non-current deferred tax assets	$	1,749.2	$	1,748.5
Non-current deferred tax liability	(43.9)		(318.5)
Net deferred tax asset	$	1,705.3	$	1,430.0

Summary of Valuation Allowance

A summary of additions and deductions related to the valuation allowance for deferred tax asset accounts for the years ended March 31, 2021, 2020 and 2019 follows (amounts in millions):


	Balance at Beginning of Year		Additions Charged to Costs and Expenses		Additions Charged to Other Accounts		Deductions		Balance at End of Year
Fiscal 2021	$	303.5	$	8.1	$	—	$	(21.3)	$	290.3
Fiscal 2020	$	332.1	$	26.0	$	—	$	(54.6)	$	303.5
Fiscal 2019	$	204.5	$	16.2	$	175.8	$	(64.4)	$	332.1

Rollforward of Unrecognized Tax Benefits

The following table summarizes the activity related to the Company's gross unrecognized tax benefits from April 1, 2018 to March 31, 2021 (amounts in millions):


	Fiscal Year Ended March 31,
	2021		2020		2019
Beginning balance	$	757.3	$	763.4	$	436.0
Increases related to acquisitions	—		—		329.7
Decreases related to settlements with tax authorities	(6.0)		(1.2)		(8.3)
Decreases related to statute of limitation expirations	(10.9)		(30.9)		(16.2)
Increases related to current year tax positions	35.4		30.2		27.8
Increases (decreases) related to prior year tax positions	50.5		(4.2)		(5.6)
Ending balance	$	826.3	$	757.3	$	763.4