v3.26.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense
The components of income tax expense were as follows: 
 Fiscal Year Ended March 31,
 202620252024
Current
U.S. Federal$(94)$280 $229 
State and local67 90 117 
Foreign3 5 3 
Total current(24)375 349 
Deferred
U.S. Federal61 (73)(94)
State and local(26)(18)(6)
Foreign— — (1)
Total deferred35 (91)(101)
Total income tax expense$11 $284 $248 
Schedule of Reconciliation of Effective Income Tax Rate Differences between the effective income tax rate and the statutory U.S. federal income tax rate are as follows:
2026
AmountRate
Income tax expense computed at U.S. Federal statutory rate$181 21.0%
State and local income taxes, net of federal income tax effect (1)
31 3.6%
Effect of Cross Border Taxation:
Foreign Derived Intangible Income (FDII)(29)(3.4)%
Other(3)(0.3)%
Research and development and other federal credits(103)(12.0)%
Nontaxable and non-deductible items10 1.2%
Changes in uncertain tax positions(80)(9.3)%
Other adjustments4 0.5%
Income tax expense at the effective income tax rate$11 1.3%
(1) State taxes in Virginia and Maryland made up the majority (greater than 50%) of the tax effect in this category for fiscal 2026.
The reconciliation from federal income tax expense computed using the statutory federal income tax rate to federal income tax expense at our effective income tax rate, prior to the adoption of ASU 2023-09, is shown below for the comparative periods:
20252024
Income tax expense computed at U.S. Federal statutory rate$256 $179 
Increases (reductions) resulting from:
State and local income taxes, net of federal income tax effect55 85 
Foreign income taxes, net of federal tax — (8)
Non-deductible expenses, including non-deductible penalties7 5 
Excess tax benefits from stock-based compensation(6)(10)
Research and development and other federal credits(40)(31)
Executive compensation - 162(m)7 6 
Foreign Derived Intangible Income (FDII)(13)(14)
Changes in uncertain tax positions (including indirect effects)27 38 
Other(9)(2)
Income tax expense at the effective income tax rate$284 $248 
Schedule of Cash Paid for Taxes
The amount of cash income taxes paid by the Company were as follows:
Fiscal Year Ended March 31,
2026
U.S. Federal$— 
State and local:
District of Columbia24 
Maryland17 
Virginia37 
All other states20 
Foreign5 
Total income taxes paid, net of refunds received$103 
Schedule of Components of Deferred Tax Assets and Liabilities
The significant components of the Company’s deferred income tax assets and liabilities consisted of the following on the dates below:
 March 31,
 20262025
Deferred tax assets:
Accrued expenses$68 $66 
Deferred compensation60 59 
Stock-based compensation12 12 
Postretirement benefits46 47 
Net operating loss and other carryforwards206 9 
Research and development expenditures and indirect effects98 335 
State tax credits45 1 
Operating lease liabilities52 62 
Other6 12 
Total gross deferred tax assets593 603 
Less: valuation allowance(10)(9)
Total net deferred income tax assets583 594 
Deferred tax liabilities:
Unbilled receivables(90)(89)
Intangible assets(112)(100)
Property and equipment(33)(25)
Operating lease right-of-use assets(38)(46)
Other(16)(2)
Total deferred tax liabilities(289)(262)
Net deferred tax asset$294 $332 
Schedule of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of potential tax benefits for the periods presented is as follows: 
 March 31,
 202620252024
Beginning of year$125 $104 $548 
Increases in prior year position21 4 41 
Increases in current year position17 17 13 
Decreases in prior year position(20)— (474)
Settlements with taxing authorities(63)— (24)
Lapse of statute of limitations(9)— — 
End of year$71 $125 $104