BALANCE SHEET ITEMS

6 Months Ended

Sep. 30, 2022

Balance Sheet Related Disclosures [Abstract]

Inventories

The components of inventories, net of applicable lower of cost and net realizable value write-downs, were as follows:


	As of September 30, 2022		As of March 31, 2022
	(In millions)
Raw materials	$	6,196	$	5,290
Work-in-progress	737		602
Finished goods	793		688
	$	7,726	$	6,580

Goodwill and Other Intangible Assets

During the six-month period ended September 30, 2022, there was no material activity in the Company's goodwill account for each of its reportable segments, other than foreign currency translation adjustments of $15 million, which primarily impacted its FRS segment.

The components of acquired intangible assets are as follows:


	As of September 30, 2022						As of March 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)
Intangible assets:
Customer-related intangibles	$	349	$	(168)	$	181	$	385	$	(157)	$	228
Licenses and other intangibles	270		(123)		147		319		(136)		183
Total	$	619	$	(291)	$	328	$	704	$	(293)	$	411

The gross carrying amounts of intangible assets are removed when fully amortized.

The estimated future annual amortization expense for intangible assets is as follows:


Fiscal Year Ending March 31,	Amount
	(In millions)
2023 (1)	$	38
2024	64
2025	58
2026	39
2027	33
Thereafter	96
Total amortization expense	$	328

____________________________________________________________

(1)Represents estimated amortization for the remaining fiscal six-month period ending March 31, 2023.

Customer Working Capital Advances

Customer working capital advances were $2.0 billion and $1.4 billion, as of September 30, 2022 and March 31, 2022, respectively. The customer working capital advances are not interest-bearing, do not generally have fixed repayment dates and are generally reduced as the underlying working capital is consumed in production.

Other Current Liabilities

Other current liabilities include customer-related accruals of $236 million and $227 million as of September 30, 2022 and March 31, 2022, respectively.

Redeemable Noncontrolling Interest

As a result of the sale by a subsidiary of the Company of redeemable preferred units (“Series A Preferred Units”), representing a 16.67% interest in the Company's subsidiary, Nextracker LLC ("Nextracker"), to TPG Rise Flash, L.P. ("TPG Rise") on February 1, 2022, the Company recognized approximately $6 million and $12 million of a payable-in-kind dividend due to TPG Rise during the three and six-month periods ended September 30, 2022, respectively, based on a dividend rate of 5% per annum.

At TPG Rise’s election, the Company is required to purchase all of the outstanding Series A Preferred Units at their liquidation preference, which shall include all contributed but unreturned capital plus accrued but unpaid dividends, at the earlier of certain change in control events and February 1, 2028. Additionally, if Nextracker has not completed a qualified initial public offering (a "Qualified Public Offering") prior to February 1, 2027, then TPG Rise may cause the Company to purchase all of the outstanding Series A Preferred Units at their fair market value. The Company has determined that a Qualified Public Offering is likely and that the change in control is not probable as of September 30, 2022 and, as such, it is not probable that the noncontrolling interest will become redeemable.