v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Income From Continuing Operations Before Income Taxes
The domestic (Singapore) and foreign components of income from continuing operations before income taxes were comprised of the following:
Fiscal Year Ended March 31,
202620252024
(In millions)
Domestic$(459)$94 $(165)
Foreign1,602 929 831 
Total$1,143 $1,023 $666 
Schedule of Provision for Income Taxes From Continuing Operations
The (benefit from) provision for income taxes from continuing operations consisted of the following:
Fiscal Year Ended March 31,
202620252024
(In millions)
Current:
Domestic$2 $2 $3 
Foreign223 128 161 
225 130 164 
Deferred:
Domestic— 3 (1)
Foreign38 52 (369)
38 55 (370)
(Benefit from) provision for income taxes$263 $185 $(206)
Schedule of Effective Income Tax Rate Reconciliation
Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in note 2 "Summary of Significant Accounting Policies," the reconciliation of taxes at the Singapore statutory rate of 17.0% to the Company's provision for (benefit from) income taxes for the year ended March 31, 2026 was as follows (in millions, except percentages):
Fiscal Year Ended March 31, 2026
AmountsPercent
Income taxes based on domestic statutory rates$194 17 %
Effect of jurisdictional tax rate differential:
China:
Liability for Undistributed Earnings10 1 %
Other12 1 %
Brazil:
Statutory tax rate difference between Brazil and Singapore15 1 %
Nontaxable or nondeductible items(78)(7)%
Foreign exchange gain or loss on deferred tax asset(42)(4)%
  Change in valuation allowance 93 8 %
Other(12)(1)%
Hungary:
Local business Tax11 1 %
Other(7)(1)%
Luxembourg:
Statutory tax rate difference between Luxembourg and Singapore22 2 %
Change in valuation allowance(70)(6)%
Other(6)— %
Netherlands:
Nontaxable or nondeductible items(17)(1)%
Other7 1 %
Malaysia:
Statutory tax rate difference between Malaysia and Singapore12 1 %
Other(5)— %
Mexico:
Statutory tax rate difference between Mexico and Singapore47 4 %
Nontaxable or nondeductible items(45)(4)%
Other(8)(1)%
United States:
Statutory tax rate difference between United States and Singapore23 2 %
   State and local income tax10 1 %
Global intangible low-taxed income17 2 %
   Excess compensation (Section 162(m))21 2 %
Stock-based compensation(30)(3)%
   Other1 — %
Other Foreign Jurisdictions:
Nontaxable or nondeductible items(9)(1)%
Other2 — %
Nontaxable or nondeductible items61 5 %
Change in unrecognized tax benefits33 3 %
Other1 — %
Provision for income taxes$263 23 %
The reconciliation of taxes at the federal statutory rate to the Company's provision for (benefit from) income taxes for the years ended March 31, 2025 and 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows:
Fiscal Year Ended March 31,
20252024
(In millions)
Income taxes based on domestic statutory rates$174 $113 
Effect of jurisdictional tax rate differential13 68 
Change in unrecognized tax benefit(19)(10)
Change in valuation allowance(37)(685)
Foreign exchange movement on prior year taxes recoverable4 (1)
Liability for undistributed earnings6 135 
Global intangible low-taxed income (GILTI) / Subpart F income9 13 
Nextracker related transactions gains— 115 
Earnings from partnership— 47 
U.S. state taxes10 10 
Excess compensation (Section 162(m))16 15 
Other9 (26)
(Benefit from) provision for income taxes$185 $(206)
Schedule of Income Tax Paid
The following table represents supplemental cash flow disclosures and non-cash investing and financing activities:
Fiscal Year Ended March 31,
202620252024
(In millions)
Net cash paid for:
Interest$212 $214 $226 
Income taxes323 184 243 
Non-cash investing and financing activity:
Unpaid purchases of property and equipment$174 $136 $97 
Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 2, Summary of Significant Accounting Policies, cash paid for income taxes, net of refunds, during the fiscal year ended March 31, 2026 was as follows:
Fiscal Year Ended March 31, 2026
(In millions)
Domestic$— 
Foreign:
Mexico84 
China82 
Malaysia41 
Mauritius20 
United States18 
Other countries78 
Total cash paid for income taxes, net of refunds$323 
Schedule of Components of Deferred Income Taxes
The components of deferred income taxes are as follows:
As of March 31,
20262025
(In millions)
Deferred tax liabilities:
Fixed assets$(39)$(44)
Intangible assets(45)(52)
Others(92)(128)
Total deferred tax liabilities(176)(224)
Deferred tax assets:
Fixed assets76 76 
Intangible assets1 3 
Deferred compensation44 37 
Inventory valuation29 32 
Provision for doubtful accounts2 3 
Net operating loss and other carryforwards943 1,022 
Tax receivable agreement70 74 
Others235 186 
Total deferred tax assets1,400 1,433 
Valuation allowances(797)(781)
Total deferred tax assets, net of valuation allowances603 652 
Net deferred tax asset$427 $428 
The net deferred tax asset is classified as follows:
Long-term asset $538 $577 
Long-term liability(111)(149)
Total$427 $428 
Schedule of Expiration Dates of Deferred Tax Assets Related to Operating Losses and Other Carryforwards 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)
2027 - 2032$89 
2033 - 2038171 
2039 and thereafter9 
Indefinite704 
$973 
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,
20262025
(In millions)
Balance, beginning of fiscal year$180 $197 
Additions based on tax position related to the current year13 10 
Additions for tax positions of prior years29 1 
Reductions for tax positions of prior years(5)(5)
Reductions related to lapse of applicable statute of limitations(13)(23)
Settlements(52)— 
Impact from foreign exchange rates fluctuation7 — 
Balance, end of fiscal year$159 $180