Income Taxes (Tables)

12 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income from Continuing Operations before Income Taxes

	Years Ended March 31,
(In millions)	2015		2014		2013
Income from continuing operations before income taxes
U.S.	$	1,893	$	1,554	$	1,562
Foreign	764		617		388
Total income from continuing operations before income taxes	$	2,657	$	2,171	$	1,950

Components of Provision For Income Taxes Related to Continuing Operations

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

	Years Ended March 31,
(In millions)	2015			2014			2013
Current
Federal	$	453		$	484		$	(84	)
State	90			64			14
Foreign	101			193			46
Total current	644			741			(24		)
Deferred
Federal	195			24			538
State	53			10			80
Foreign	(77		)	(18		)	(7		)
Total deferred	171			16			611
Income tax expense	$	815		$	757		$	587

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

The reconciliation between our effective tax rate on income from continuing operations and statutory tax rate is as follows:

	Years Ended March 31,
(In millions)	2015			2014			2013
Income tax expense at federal statutory rate	$	930		$	760		$	683
State income taxes net of federal tax benefit	81			57			58
Foreign income taxed at various rates	(247		)	(177		)	(143		)
Canadian litigation	—			122			—
Controlled substance distribution reserve	58			—			—
Unrecognized tax benefits and settlements	10			(6		)	1
Tax credits	(10		)	(6		)	(13		)
Other, net	(7		)	7			1
Income tax expense	$	815		$	757		$	587

Components of Deferred Tax Assets and Liabilities

Deferred tax balances consisted of the following:

	March 31,
(In millions)	2015			2014
Assets
Receivable allowances	$	83		$	94
Deferred revenue	72			136
Compensation and benefit related accruals	681			632
Net operating loss and credit carryforwards	316			337
Other	266			287
Subtotal	1,418			1,486
Less: valuation allowance	(229		)	(200		)
Total assets	1,189			1,286
Liabilities
Inventory valuation and other assets	(2,333		)	(2,161		)
Fixed assets and systems development costs	(324		)	(320		)
Intangibles	(1,073		)	(1,477		)
Other	(61		)	(117		)
Total liabilities	(3,791		)	(4,075		)
Net deferred tax liability	$	(2,602	)	$	(2,789	)
Current net deferred tax asset	$	26		$	42
Current net deferred tax liability	(1,819		)	(1,588		)
Long-term deferred tax asset	50			19
Long-term deferred tax liability	(859		)	(1,262		)
Net deferred tax liability	$	(2,602	)	$	(2,789	)

Gross Unrecognized Tax Benefits

The following table summarizes the activity related to our gross unrecognized tax benefits for the last three years:

	Years Ended March 31,
(In millions)	2015			2014			2013
Unrecognized tax benefits at beginning of period	$	647		$	560		$	595
Additions based on tax positions related to prior years	62			106			46
Reductions based on tax positions related to prior years	(18		)	(23		)	(106		)
Additions based on tax positions related to current year	27			23			31
Reductions based on settlements	(65		)	(4		)	(2		)
Reductions based on the lapse of the applicable statutes of limitations	(12		)	(7		)	(2		)
Exchange rate fluctuations	(25		)	(8		)	(2		)
Unrecognized tax benefits at end of period	$	616		$	647		$	560