v3.26.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Before Provision for Income Taxes
The components of income before provision for income taxes are as follows:
Fiscal Year Ended March 31,
(in millions)202620252024
United Kingdom$828 $526 $139 
Foreign329 194 73 
Income before provision for income taxes$1,157 $720 $212 
Schedule of Benefit (Expense) for Income Taxes
The benefit (expense) for income taxes consists of the following:
Fiscal Year Ended March 31,
(in millions)202620252024
Current:
United Kingdom$— $(1)$2 
Foreign(238)(145)(178)
Total current tax benefit (expense)$(238)$(146)$(176)
Deferred:
United Kingdom$27 $97 $114 
Foreign(42)121 156 
Total deferred tax benefit (expense)$(15)$218 $270 
Total income tax benefit (expense)$(253)$72 $94 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the United Kingdom statutory income tax rate to our effective tax rate after the prospective adoption of ASU 2023-09 is as follows:
Fiscal Year Ended March 31,
2026
(in millions, except percentages)AmountPercent
United Kingdom statutory income tax rate$(289)25.0 %
Foreign tax effects
United States
State and local income taxes, net of federal income tax effect30 (2.6)%
Research and development tax credits35 (3.0)%
Share-based compensation25 (2.2)%
Withholding tax(15)1.3 %
Other3 (0.3)%
China
Withholding tax(81)7.0 %
Singapore
Withholding tax(18)1.6 %
South Korea
Withholding tax(30)2.6 %
Taiwan
Withholding tax(51)4.4 %
Other foreign jurisdictions(33)2.9 %
Tax credits
Research and development tax credits25 (2.2)%
Foreign tax credit62 (5.4)%
Nontaxable or nondeductible items
Share-based compensation34 (2.9)%
Foreign tax deduction36 (3.1)%
Other(6)0.5 %
Changes in unrecognized tax benefits(66)5.7 %
Other Adjustments
Patent box benefit86 (7.4)%
Income tax benefit (expense)$(253)21.9 %
A reconciliation of the tax benefit (expense) at the United Kingdom statutory income tax rate to the actual tax benefit (expense) prior to the adoption of ASU 2023-09 is as follows:
Fiscal Year Ended March 31,
(in millions)20252024
Income tax benefit (expense) at statutory rate$(180)$(53)
Foreign tax rate differential(10)(14)
Research and development tax credits85 94 
Change in valuation allowance— (4)
Non-deductible/non-taxable items(10)(3)
Patent box benefit38 (4)
Contingency reserve19 — 
Impact of U.K. rate change(22)(3)
Withholding tax(97)(122)
Gains exempt from U.K. tax(2)(3)
Windfall tax benefit associated with share-based compensation251 206 
Income tax benefit (expense)$72 $94 
Schedule of Components of Deferred Tax Assets and Liabilities
The significant components of deferred tax assets and liabilities are as follows:
As of
(in millions)March 31, 2026March 31, 2025
Tax losses and research and development tax credits$522 $549 
Share-based compensation58 41 
Lease liabilities28 25 
Fixed assets 25 21 
Other28 38 
Total gross deferred tax assets 661 674 
Less: Valuation allowance(11)(26)
Total deferred tax assets, net of valuation allowance650 648 
Deferred income(213)(206)
Outside basis differences(44)(52)
Right-of-use assets(23)(23)
Acquired intangibles(6)(6)
Other(28)(1)
Total deferred tax liabilities(314)(288)
Net deferred tax assets (liabilities)336 360 
Schedule of Changes in Gross Unrecognized Tax Benefits
The following table reflects changes in gross unrecognized tax benefits:
Fiscal Year Ended March 31,
(in millions)202620252024
Gross unrecognized tax benefits—April 1$101 $83 $62 
Gross increases—tax positions in prior period88 — 5 
Gross decreases—tax positions in prior period(12)(11)(1)
Gross increases—tax positions in current period23 31 19 
Settlements— (2)— 
Lapse of statute of limitations— — (1)
Foreign exchange— — (1)
Gross unrecognized tax benefits— March 31$200 $101 $83 
Schedule of Cash Paid for Income Taxes, Net of Refunds
Supplemental disclosures of cash flow information related to leases are as follows:
Fiscal Year Ended March 31,
(in millions)202620252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases$(44)$(37)$(35)
Operating cash flows used for finance leases$3 $1 $— 
Financing cash flows used for finance leases$(26)$(23)$(10)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$98 $146 $28 
Finance leases$56 $33 $21 
Cash paid for income taxes (net of refunds received) by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the fiscal year ended March 31, 2026 is as follows:
Fiscal Year Ended March 31,
(in millions)2026
United Kingdom$— 
Foreign
China81 
Taiwan51 
South Korea30 
United States17 
Singapore18 
India12 
Other14 
Total cash paid for income taxes$223