v3.25.1
INCOME TAXES (Tables)
 12 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of (Loss) Income from Continuing Operations Before Income Taxes Components of Loss before income taxes are as follows:
 Fiscal Year Ended March 31,
202520242023
Domestic$(2,471.1)$(2,081.8)$(937.0)
Foreign(2,020.2)(1,621.0)(401.1)
Loss before income taxes$(4,491.3)$(3,702.8)$(1,338.1)
Schedule of Provision for Current and Deferred Income Taxes
(Benefit from) provision for current and deferred income taxes consists of the following:
 Fiscal Year Ended March 31,
202520242023
Current:   
U.S. federal$0.2 $23.0 $70.2 
U.S. state and local11.5 12.4 3.3 
Foreign115.0 107.5 98.0 
Total current income taxes126.7 142.9 171.5 
Deferred:   
U.S. federal(55.3)24.6 (175.4)
U.S. state and local— (22.6)(31.4)
Foreign(83.8)(103.5)(178.1)
Total deferred income taxes(139.1)(101.5)(384.9)
(Benefit from) provision for income taxes$(12.4)$41.4 $(213.4)
Schedule of Reconciliation of Effective Tax Rate to the U.S. Statutory Federal Income Tax Rate A reconciliation of our effective tax rate to the U.S. statutory federal income tax rate is as follows:
 Fiscal Year Ended March 31,
202520242023
U.S. federal statutory rate21.0 %21.0 %21.0 %
State and local taxes, net of U.S. federal benefit0.4 %0.6 %2.0 %
Foreign tax rate differential(1)
(0.2)%0.2 %(0.3)%
Foreign earnings(2)
(0.5)%(1.5)%(1.3)%
Tax credits(3)
1.2 %1.7 %5.7 %
Excess tax benefits from stock-based compensation0.2 %(0.1)%(0.5)%
Earn-out adjustments— %0.1 %(0.4)%
Valuation allowance—domestic(4)
(5.0)%(9.1)%(6.3)%
Valuation allowance—foreign(4)
(0.6)%(1.1)%(0.1)%
Nondeductible compensation(0.1)%(0.1)%(0.9)%
Global intangible low-taxed income(0.5)%(1.0)%(3.1)%
Foreign-derived intangible income0.3 %0.5 %1.8 %
Change in reserves— %0.9 %(0.1)%
Goodwill impairment(16.0)%(12.8)%— %
Other(5)
0.1 %(0.4)%(1.6)%
Effective tax rate0.3 %(1.1)%15.9 %
(1) The foreign rate differentials in relation to foreign earnings, for all periods presented, are primarily driven by changes in the mix of our foreign earnings and the difference between the foreign and U.S. income tax rates.
(2) Fiscal year ended March 31, 2024 includes tax expense of $29.2 from a decrease in the deferred tax assets related to Switzerland's Federal Act on Tax Reform and AVH Financing ("TRAF") enacted on January 1, 2020. Fiscal year ended March 31, 2023 includes a tax benefit of $5.6 from the effects of an increase in the deferred tax asset.
(3) Tax benefits were recorded for fiscal years ended March 31, 2025, 2024, and 2023 attributable to certain tax credits related to software development activities.
(4) The change in domestic and foreign valuation allowance includes an increase in our valuation allowance on deferred tax assets as a result of a determination in the fiscal years ended March 31, 2025 and 2024 that it was more likely than not that such deferred tax assets would not be realized.
(5) For the fiscal year ended March 31, 2023, includes nondeductible expense of $8.2 relating to loss on the redemption of convertible debt
Schedule of Effects of Temporary Differences that Gave Rise to Deferred Tax Assets and Liabilities The effects of temporary differences that gave rise to our deferred tax assets and liabilities were as follows:
 March 31,
20252024
Deferred tax assets:  
Capitalized development costs, software and depreciation$440.6 $365.1 
Tax credit carryforward232.5 174.4 
Equity-based compensation158.3 143.0 
Tax basis step up related to TRAF131.1 131.1 
Net operating loss carryforward104.1 63.2 
Operating lease liabilities 100.2 101.9 
Accrued compensation expense79.7 72.6 
Disallowed interest20.8 — 
Deferred revenue2.8 — 
Business reorganization1.1 1.0 
Other10.7 1.7 
Total deferred tax assets1,281.9 1,054.0 
Less: Valuation allowance(1,127.0)(799.1)
Net deferred tax assets$154.9 $254.9 
Deferred tax liabilities: 
Intangible amortization$(338.1)$(513.2)
Right-of-use assets(76.3)(75.7)
Deferred revenue— (5.0)
Total deferred tax liabilities(414.4)(593.9)
Net deferred tax liability(1)
$(259.5)$(339.0)
(1) As of March 31, 2025, $0.1 is included in Deferred tax assets, included within Prepaid expenses and other on our Consolidated Balance Sheets, and $259.6 is included in Deferred tax liabilities, net. As of March 31, 2024, $1.9 is included in Deferred tax assets, included within Other asset on our Consolidated Balance Sheets, and $340.9 is included in Deferred tax liabilities, net.
Schedule of Aggregate Changes to the Liability for Gross Uncertain Tax Positions, Excluding Interest and Penalties The aggregate changes to the liability for gross uncertain tax positions, excluding interest and penalties, were as follows:
 Fiscal Year Ended March 31,
202520242023
Balance, beginning of period$242.8 $274.7 $164.8 
Additions:   
Current year tax positions63.6 41.4 26.5 
Prior year tax positions(1)
— 2.3 109.7 
Reduction of prior year tax positions(60.3)— (26.3)
Lapse of statute of limitations(28.1)(76.2)— 
Other0.6 0.6 — 
Balance, end of period$218.6 $242.8 $274.7 
(1) For the fiscal year ended March 31, 2023, the increase in prior year tax positions of $109.7 related to purchase accounting for the Zynga acquisition.