Income Taxes (Tables)

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) From Continuing Operations Before Income Taxes

	Years Ended March 31,
(In millions)	2024		2023		2022
Income from continuing operations before income taxes
U.S.	$	2,597	$	3,308	$	1,944
Foreign	1,192		1,322		(16)
Income from continuing operations before income taxes	$	3,789	$	4,630	$	1,928

Schedule of Income Tax Expense (Benefit) Related to Continuing Operations

Income tax expense related to continuing operations consists of the following:

	Years Ended March 31,
(In millions, except percentages)	2024			2023			2022
Current
Federal	$	867		$	619		$	233
State	231			126			129
Foreign	134			180			240
Total current	1,232			925			602
Deferred
Federal	(360)			(46)			88
State	(133)			36			(16)
Foreign	(110)			(10)			(38)
Total deferred	(603)			(20)			34
Income tax expense	$	629		$	905		$	636
Reported income tax rate	16.6		%	19.5		%	33.0		%

Schedule of Reconciliation Between Effective Tax Rate on Income From Continuing Operations and Statutory Tax Rate

The reconciliation of income tax expense and the amount computed by applying the statutory federal income tax rate of 21.0% to income before income taxes was as follows:

	Years Ended March 31,
(In millions)	2024		2023		2022
Income tax expense at federal statutory rate	$	796	$	972	$	405
State income taxes, net of federal tax benefit	104		134		85
Tax effect of foreign operations	(16)		(85)		(152)
Foreign-derived intangible income	(67)		(60)		(34)
Unrecognized tax benefits and settlements	116		6		(26)
Opioid-related litigation and claims	—		9		38
Net tax benefit on intellectual property repatriation and sale	(104)		—		—
E.U. disposal transaction loss	4		(8)		345
Valuation allowance release	(157)		—		—
Share-based compensation	(37)		(58)		(10)
Other, net (1)	(10)		(5)		(15)
Income tax expense	$	629	$	905	$	636

(1)The Company’s effective tax rates were impacted by other favorable U.S. federal permanent differences, including research and development credits of $10 million in fiscal 2024, and $4 million in each of fiscal 2023 and fiscal 2022.

Schedule of Deferred Tax Balances

Deferred tax balances consisted of the following:

	March 31,
(In millions)	2024		2023
Assets
Receivable allowances	$	244	$	51
Opioid-related litigation and claims	680		699
Compensation and benefit-related accruals	277		265
Net operating loss and credit carryforwards	751		760
Lease obligations	438		427
Capitalized research and development cost	60		35
Intangibles	5		—
Other	147		127
Subtotal	2,602		2,364
Less: valuation allowance	(653)		(696)
Total assets	1,949		1,668
Liabilities
Inventory valuation and other assets	(2,092)		(2,079)
Fixed assets	(16)		(67)
Intangibles	—		(267)
Lease right-of-use assets	(431)		(412)
Other	(10)		(19)
Total liabilities	(2,549)		(2,844)
Net deferred tax liability	$	(600)	$	(1,176)
Long-term deferred tax asset	$	317	$	211
Long-term deferred tax liability	(917)		(1,387)
Net deferred tax liability	$	(600)	$	(1,176)

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 fiscal years:

	Years Ended March 31,
(In millions)	2024		2023		2022
Unrecognized tax benefits at beginning of period	$	1,399	$	1,523	$	1,754
Additions based on tax positions related to prior years	10		—		14
Reductions based on tax positions related to prior years	(2)		(26)		(131)
Additions based on tax positions related to current year	64		21		14
Reductions based on settlements	(8)		(96)		(20)
Reductions based on the lapse of the applicable statutes of limitations	(2)		(16)		(102)
Exchange rate fluctuations	2		(7)		(6)
Unrecognized tax benefits at end of period	$	1,463	$	1,399	$	1,523