BALANCE SHEET ITEMS

9 Months Ended

Dec. 31, 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 December 31, 2022		As of March 31, 2022
	(In millions)
Raw materials	$	6,365	$	5,290
Work-in-progress	689		602
Finished goods	784		688
	$	7,838	$	6,580

Goodwill and Other Intangible Assets

During the nine-month period ended December 31, 2022, there was no material activity in the Company's goodwill account for each of its reportable segments.

The components of acquired intangible assets are as follows:


	As of December 31, 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	$	369	$	(189)	$	180	$	385	$	(157)	$	228
Licenses and other intangibles	294		(142)		152		319		(136)		183
Total	$	663	$	(331)	$	332	$	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)	$	21
2024	69
2025	62
2026	42
2027	35
Thereafter	103
Total amortization expense	$	332

____________________________________________________________

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

Customer Working Capital Advances

Customer working capital advances were $2.2 billion and $1.4 billion, as of December 31, 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 or the customer working capital advance agreement is terminated.

Other Current Liabilities

Other current liabilities include customer-related accruals of $275 million and $227 million as of December 31, 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 $7 million and $19 million of a payable-in-kind dividend due to TPG Rise during the three and nine-month periods ended December 31, 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 December 31, 2022 and, as such, it is not probable that the noncontrolling interest will become redeemable.