v3.26.1
TAXES (Tables)
12 Months Ended
Mar. 31, 2026
TAXES.  
Income (loss) before income taxes by geography

Year Ended March 31,

(Dollars in millions)

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

Income (loss) before income taxes:

U.S. operations

$

(54)

$

(158)

$

(678)

Non-U.S. operations

468

593

510

Total income (loss) before income taxes

$

414

$

435

$

(168)

Components of the provision for income taxes by taxing jurisdiction

Year Ended March 31,

(Dollars in millions)

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

U.S. federal:

Current

$

$

1

$

39

Deferred

(2)

(18)

(10)

$

(2)

$

(17)

$

29

U.S. state and local:

Current

$

1

$

4

$

2

Deferred

2

1

$

1

$

6

$

3

Non-U.S.:

Current

$

238

$

177

$

142

Deferred

(22)

18

(2)

$

216

$

195

$

140

Total provision for income taxes

$

215

$

184

$

172

Effective income tax rate reconciliation

Year Ended March 31,

2026

Adjusted

(Dollars in millions)

  ​ ​ ​

Amount

Percent

U.S. federal statutory tax rate

$

87

21.0

%

State and local income taxes, net of federal income tax effect*

1

0.2

%

Foreign tax effects:

Argentina

Changes in valuation allowances

13

3.2

%

Other

(12)

(2.9)

%

Australia

Changes in valuation allowances

(21)

(5.0)

%

Other

2

0.5

%

Brazil

Changes in valuation allowances

(18)

(4.3)

%

Other

(4)

(1.0)

%

Colombia

10

2.4

%

Denmark

Changes in valuation allowances

(11)

(2.7)

%

Other

1

0.2

%

Germany

Changes in valuation allowances

(21)

(5.1)

%

Other

(3)

(0.7)

%

India

17

4.1

%

Japan

15

3.6

%

Peru

Withholding taxes

9

2.2

%

Other

7

1.7

%

Other foreign jurisdictions

(1)

(0.2)

%

Effect of cross-border tax laws:

Branch income

21

5.1

%

Other

5

1.2

%

Tax credits:

Foreign tax credits

(55)

(13.3)

%

Other

(2)

(0.5)

%

Changes in valuation allowances

133

32.3

%

Nontaxable or nondeductible items:

Equity-based compensation

(11)

(2.7)

%

Other

2

0.5

%

Changes in unrecognized tax benefits

51

12.3

%

Effective tax rate

$

215

52.1

%

*The states that contribute to the majority (greater than 50%) of the tax effect in this category include New York, California, New Jersey, Illinois, Georgia, and Texas.

Year Ended March 31,

  ​ ​ ​

2025

  ​ ​ ​

2024

Statutory rate

21.0

%

21.0

%

Tax differential on foreign income

4.5

%

(17.4)

%

State and local taxes

0.7

%

17.8

%

Valuation allowances

(4.1)

%

(67.7)

%

Reserves for uncertain tax positions

14.2

%

(7.8)

%

Global Intangible Low-Taxed Income (GILTI)

1.5

%

%

Undistributed foreign earnings

(2.5)

%

2.2

%

Impact of foreign operations

20.9

%

(43.6)

%

Basis adjustment

%

(6.2)

%

Tax credits

(13.1)

%

28.7

%

Return to provision

(3.1)

%

(19.3)

%

Nondeductible items

1.9

%

(8.6)

%

Other

%

(1.4)

%

Effective tax rate

41.9

%

(102.2)

%

Summary of income taxes paid by jurisdiction

Year Ended March 31,

(Dollars in millions)

  ​ ​ ​

2026

Cash paid during the period for income taxes, net of refunds:

Federal

$

1

State and local

4

Foreign:

Colombia

11

Germany

8

India

35

Japan

23

Netherlands

8

Peru

15

Spain

10

All other foreign

36

Total cash paid for taxes

$

151

Components of deferred tax assets and liabilities

March 31,

(Dollars in millions)

  ​ ​ ​

2026

  ​ ​ ​

2025

Deferred tax assets

Retirement benefits

$

103

$

106

Leases

253

253

Stock-based and other compensation

45

75

U.S. tax loss/credit carryforwards

676

520

Deferred income

58

38

Foreign tax loss/credit carryforwards

29

75

Allowance for credit losses

4

9

Goodwill and intangible assets

49

61

Workforce rebalancing charges

2

8

Limitation on deductibility of interest

106

88

Accruals

109

99

Other

24

52

Gross deferred tax assets

$

1,458

$

1,384

Less: valuation allowance

(782)

(749)

Net deferred tax assets

$

676

$

634

Deferred tax liabilities

Fixed assets and depreciation

$

125

$

97

Leases and right-of-use assets

255

242

Undistributed foreign earnings

7

5

Deferred transition costs

127

121

Prepaids

3

2

Other

3

15

Gross deferred tax liabilities

$

520

$

482

Reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:

Year Ended March 31,

(Dollars in millions)

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

Balance at beginning of period

$

168

$

108

$

104

Additions based on tax positions related to the current year

64

35

36

Additions for tax positions of prior years

71

28

Reductions for tax positions of prior years (including impacts due to a lapse of statute)

(9)

(3)

(32)

Balance at end of period

$

294

$

168

$

108