Income Taxes (Tables)

12 Months Ended

Mar. 31, 2024

Components of Income Tax Expense (Benefit)

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


	Fiscal Year Ended March 31,
	2024		2023		2022
Income before income taxes:
U.S.	$	555.5	$	674.7	$	132.2
Foreign	1,810.4		2,235.0		1,350.3
Total income before income taxes	$	2,365.9	$	2,909.7	$	1,482.5
Current provision (benefit):
U.S. Federal	$	347.5	$	389.5	$	191.6
State	20.0		5.0		3.7
Foreign	118.7		72.0		(6.2)
Total current provision	$	486.2	$	466.5	$	189.1
Deferred provision (benefit):
U.S. Federal	$	(106.4)	$	53.7	$	(78.7)
State	(12.3)		4.6		(9.1)
Foreign	91.5		147.2		95.7
Total deferred provision (benefit)	(27.2)		205.5		7.9
Income tax provision	$	459.0	$	672.0	$	197.0

Reconciliation of Expected Federal Income Tax Expense to Actual

The provision (benefit) 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,
	2024		2023		2022
Computed expected income tax provision	$	496.8	$	611.0	$	311.3
State income taxes, net of federal benefit	15.7		8.6		3.5
Effects of foreign operations - rate differential	(149.3)		(184.0)		(96.8)
Effects of foreign operations - other, net of foreign tax credits	212.2		258.9		139.9

Foreign-derived intangible income ("FDII")	(3.6)		—		(27.3)


Change in uncertain tax positions	5.8		50.6		(47.1)
Share-based compensation	(8.4)		(11.4)		(17.6)
R&D tax credits	(69.8)		(63.8)		(49.5)

Income tax holidays	(22.5)		(26.7)		(22.5)


Convertible debt settlement	0.7		0.7		(25.5)

Other	10.0		19.0		28.6
Change in valuation allowance	(28.6)		9.1		—
Income tax provision	$	459.0	$	672.0	$	197.0

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,
	2024		2023
Deferred tax assets:
Accrued expenses	$	50.2	$	64.7
Capital loss carryforward	10.5		11.0

Income tax credits	267.8		312.7
Intangible assets	1,374.8		1,328.7
Inventory valuation	72.0		40.0
Lease liabilities	36.2		35.8
Net operating loss carryforward	64.8		73.9
Property, plant and equipment	—		7.0
Share-based compensation	40.6		37.7
Other	15.5		4.0
Gross deferred tax assets	1,932.4		1,915.5
Valuation allowances	(270.8)		(299.4)
Deferred tax assets, net of valuation allowances	1,661.6		1,616.1
Deferred tax liabilities:

Intangible assets	(59.0)		(1.6)
ROU assets	(34.5)		(33.9)
Property, plant and equipment	(0.4)		—
Deferred tax liabilities	(93.9)		(35.5)
Net deferred tax asset	$	1,567.7	$	1,580.6

Reported as:

Non-current deferred tax assets	$	1,596.5	$	1,623.3
Non-current deferred tax liability	(28.8)		(42.7)
Net deferred tax asset	$	1,567.7	$	1,580.6

Summary of Valuation Allowance

Additions and deductions related to the valuation allowance for deferred tax assets for the three fiscal years ended March 31, 2024 were as follows (amounts in millions):


	Balance at Beginning of Year		Additions Charged to Costs and Expenses		Deductions		Balance at End of Year
Fiscal 2024	$	299.4	$	6.5	$	(35.1)	$	270.8
Fiscal 2023	$	290.3	$	19.3	$	(10.2)	$	299.4
Fiscal 2022	$	290.3	$	7.1	$	(7.1)	$	290.3

Rollforward of Unrecognized Tax Benefits

The following table summarizes the activity related to the Company's gross unrecognized tax benefits for the three fiscal years ended March 31, 2024 (amounts in millions):


	Fiscal Year Ended March 31,
	2024		2023		2022
Beginning gross unrecognized tax benefit	$	848.0	$	804.1	$	826.3

Decreases related to settlements with tax authorities	(5.8)		(0.4)		(0.4)
Decreases related to statute of limitation expirations	(3.3)		(11.7)		(12.6)
Increases related to current year tax positions	37.4		65.9		28.2
Decreases related to prior year tax positions	(83.9)		(9.9)		(37.4)
Ending gross unrecognized tax benefits	$	792.4	$	848.0	$	804.1