INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Components of income from continuing operations before income taxes

The domestic (Singapore) and foreign components of income before income taxes were comprised of the following:

	Fiscal Year Ended March 31,
	2022		2021		2020
	(In millions)
Domestic	$	352	$	242	$	(2)
Foreign	693		472		161
Total	$	1,045	$	714	$	159

Schedule of provision for income taxes

The provision for income taxes consisted of the following:

	Fiscal Year Ended March 31,
	2022		2021		2020
	(In millions)
Current:
Domestic	$	3	$	1	$	2
Foreign	146		105		62
	149		106		64
Deferred:
Domestic	—		1		—
Foreign	(44)		(6)		7
	(44)		(5)		7
Provision for income taxes	$	105	$	101	$	71

Schedule of reconciliation of the income tax expense from continuing operations expected based on domestic statutory income tax rates to the expense for income taxes

The reconciliation of the income tax expense expected based on domestic statutory income tax rates to the expense for income taxes included in the consolidated statements of operations is as follows:

	Fiscal Year Ended March 31,
	2022		2021		2020
	(In millions)
Income taxes based on domestic statutory rates	$	178	$	121	$	27
Effect of jurisdictional tax rate differential	(114)		(82)		(81)
Change in unrecognized tax benefit	12		11		(1)
Change in valuation allowance	12		35		93
Foreign exchange movement on prior year taxes recoverable	(9)		5		13
Tax impacts related to sale of Nextracker Series A Preferred Units	13		—		—
APB23 tax liability	1		1		9
Other	12		10		11
Provision for income taxes	$	105	$	101	$	71

Components of deferred income taxes

The components of deferred income taxes are as follows:

	As of March 31,
	2022		2021
	(In millions)
Deferred tax liabilities:
Fixed assets	$	(49)	$	(69)
Intangible assets	(89)		(45)
Others	(14)		(13)
Total deferred tax liabilities	(152)		(127)
Deferred tax assets:
Fixed assets	72		66
Intangible assets	6		8
Deferred compensation	22		20
Inventory valuation	26		28
Provision for doubtful accounts	5		5
Net operating loss and other carryforwards	1,542		1,641
Others	201		190
Total deferred tax assets	1,874		1,958
Valuation allowances	(1,631)		(1,726)
Total deferred tax assets, net of valuation allowances	243		232
Net deferred tax asset	$	91	$	105
The net deferred tax asset is classified as follows:
Long-term asset	$	177	$	165
Long-term liability	(86)		(60)
Total	$	91	$	105

Schedule of tax losses and other carryforwards on a tax return basis, which will expire at various dates

These tax losses and other carryforwards will expire at various dates as follows:

Expiration dates of deferred tax assets related to operating losses and other carryforwards
Fiscal year	(In millions)
2023 - 2028	$	555
2029 - 2034	274
2035 and post	120
Indefinite	706
	$	1,655

Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Fiscal Year Ended March 31,
	2022		2021
	(In millions)
Balance, beginning of fiscal year	$	266	$	246
Additions based on tax position related to the current year	27		16
Additions for tax positions of prior years	15		14
Reductions for tax positions of prior years	(7)		(8)
Reductions related to lapse of applicable statute of limitations	(16)		(16)
Impact from foreign exchange rates fluctuation	(3)		14
Balance, end of fiscal year	$	282	$	266