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Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of income from continuing operations before income taxes
 
Years Ended March 31,
(In millions)
2020
 
2019
 
2018
Income from continuing operations before income taxes
 
 
 
 
 
U.S.
$
216

 
$
1,512

 
$
1,175

Foreign
928

 
(902
)
 
(936
)
Total income from continuing operations before income taxes
$
1,144

 
$
610

 
$
239
Schedule of income tax expense (benefit) related to continuing operations
Income tax expense (benefit) related to continuing operations consists of the following:
 
Years Ended March 31,
(In millions)
2020
 
2019
 
2018
Current
 
 
 
 
 
Federal
$
170

 
$
(20
)
 
$
577

State
48

 
35

 
33

Foreign
142

 
152

 
205

Total current
360

 
167

 
815

 
 
 
 
 
 
Deferred
 
 
 
 
 
Federal
(204
)
 
223

 
(767
)
State
(105
)
 
44

 
17

Foreign
(33
)
 
(78
)
 
(118
)
Total deferred
(342
)
 
189

 
(868
)
Income tax expense (benefit)
$
18

 
$
356

 
$
(53
)
Schedule of reconciliation between effective tax rate on income from continuing operations and statutory tax rate
The reconciliation of income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate of 21% for 2020 and 2019 and 31.6% for 2018 to income before income taxes is as follows:
 
Years Ended March 31,
(In millions)
2020
 
2019
 
2018
Income tax expense at federal statutory rate
$
240

 
$
128

 
$
75

State income taxes, net of federal tax benefit
(41
)
 
70

 
50

Tax effect of foreign operations
(81
)
 
(86
)
 
(146
)
Unrecognized tax benefits and settlements
(7
)
 
20

 
454

Non-deductible goodwill
7

 
357

 
585

Share-based compensation
2

 
4

 
(8
)
Net tax benefit on intellectual property transfer
—

 
(42
)
 
(178
)
Tax-free gain on investment exit (1)
(87
)
 
—

 
—

Impact of change in U.S. tax rate on temporary differences
—

 
(81
)
 
(1,324
)
Transition tax on foreign earnings
—

 
(5
)
 
457

Capital loss carryback
(19
)
 
—

 
—

Other, net (2)
4

 
(9
)
 
(18
)
Income tax expense (benefit)
$
18

 
$
356

 
$
(53
)

(1)
Refer to Financial Note 2, “Investment in Change Healthcare Joint Venture,” for additional information regarding the separation of the Change Healthcare JV.
(2)
The Company’s effective tax rates were impacted by other favorable U.S. federal permanent differences including research and development credits of $7 million, $7 million and $11 million in 2020, 2019 and 2018.
Schedule of deferred tax balances
Deferred tax balances consisted of the following:
 
March 31,
(In millions)
2020
 
2019
Assets
 
 
 
Receivable allowances
$
72

 
$
70

Compensation and benefit related accruals
331

 
377

Net operating loss and credit carryforwards
828

 
885

Lease obligations
482

 
—

Other
109

 
216

Subtotal
1,822

 
1,548

Less: valuation allowance
(833
)
 
(870
)
Total assets
989

 
678

Liabilities
 
 
 
Inventory valuation and other assets
(1,947
)
 
(2,016
)
Fixed assets and systems development costs
(202
)
 
(170
)
Intangibles
(531
)
 
(513
)
Change Healthcare equity investment
—

 
(885
)
Lease right-of-use assets
(449
)
 
—

Other
(56
)
 
(34
)
Total liabilities
(3,185
)
 
(3,618
)
Net deferred tax liability
$
(2,196
)
 
$
(2,940
)
 
 
 
 
Long-term deferred tax asset
$
59

 
$
58

Long-term deferred tax liability
(2,255
)
 
(2,998
)
Net deferred tax liability
$
(2,196
)
 
$
(2,940
)
Schedule of gross unrecognized tax benefits
The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the last three years:
 
Years Ended March 31,
(In millions)
2020
 
2019
 
2018
Unrecognized tax benefits at beginning of period
$
1,052

 
$
1,183

 
$
486

Additions based on tax positions related to prior years
20

 
78

 
47

Reductions based on tax positions related to prior years
(168
)
 
(234
)
 
(124
)
Additions based on tax positions related to current year
82

 
68

 
778

Reductions based on settlements
(8
)
 
(13
)
 
(7
)
Reductions based on the lapse of the applicable statutes of limitations
(13
)
 
(25
)
 
—

Exchange rate fluctuations
(7
)
 
(5
)
 
3

Unrecognized tax benefits at end of period
$
958

 
$
1,052

 
$
1,183