INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2023

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,
	2023		2022		2021
	(In millions)
Domestic	$	99	$	352	$	242
Foreign	875		693		472
Total	$	974	$	1,045	$	714

Schedule of provision for income taxes

The provision for income taxes consisted of the following:

	Fiscal Year Ended March 31,
	2023		2022		2021
	(In millions)
Current:
Domestic	$	6	$	3	$	1
Foreign	136		146		105
	142		149		106
Deferred:
Domestic	1		—		1
Foreign	(202)		(44)		(6)
	(201)		(44)		(5)
Provision for (benefit from) income taxes	$	(59)	$	105	$	101

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,
	2023		2022		2021
	(In millions)
Income taxes based on domestic statutory rates	$	166	$	178	$	121
Effect of jurisdictional tax rate differential	5		(114)		(82)
Change in unrecognized tax benefit	(7)		12		11
Change in valuation allowance	(47)		12		35
Foreign exchange movement on prior year taxes recoverable	4		(9)		5
Tax impacts related to sale of Nextracker	16		13		—
APB23 tax liability	—		1		1
Restructuring of Nextracker LLC interest	(195)		—		—
Other	(1)		12		10
Provision for (benefit from) income taxes	$	(59)	$	105	$	101

Components of deferred income taxes

The components of deferred income taxes are as follows:

	As of March 31,
	2023		2022
	(In millions)
Deferred tax liabilities:
Fixed assets	$	(63)	$	(49)
Intangible assets	(71)		(89)
Others	(38)		(14)
Total deferred tax liabilities	(172)		(152)
Deferred tax assets:
Fixed assets	77		72
Intangible assets	5		6
Deferred compensation	27		22
Inventory valuation	24		26
Provision for doubtful accounts	3		5
Net operating loss and other carryforwards	1,359		1,542
Investment in Nextracker LLC	249		—
Others	136		201
Total deferred tax assets	1,880		1,874
Valuation allowances	(1,373)		(1,631)
Total deferred tax assets, net of valuation allowances	507		243
Net deferred tax asset	$	335	$	91
The net deferred tax asset is classified as follows:
Long-term asset	$	412	$	177
Long-term liability	(77)		(86)
Total	$	335	$	91

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)
2024 - 2029	$	415
2030 - 2035	232
2036 and post	78
Indefinite	743
	$	1,468

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,
	2023		2022
	(In millions)
Balance, beginning of fiscal year	$	282	$	266
Additions based on tax position related to the current year	15		27
Additions for tax positions of prior years	8		15
Reductions for tax positions of prior years	(5)		(7)
Reductions related to lapse of applicable statute of limitations	(13)		(16)
Settlements	(7)		—
Impact from foreign exchange rates fluctuation	(12)		(3)
Balance, end of fiscal year	$	268	$	282