Income Taxes (Tables)

12 Months Ended

Mar. 31, 2019

Schedule of Provisions (Benefit) for Taxes

The provision (benefit) for taxes were as follows:



	Successor					Predecessor
	Fiscal Years Ended					Five Months Ended			Fiscal Year Ended
(in millions)	March 31, 2019		March 31, 2018			March 31, 2017			October 31, 2016
U.S. federal taxes:
Current	$	13	$	16		$	(15	)	$	54
Deferred	8		(38		)	35			(12		)

State taxes:
Current	19		3			—			9
Deferred	—		10			3			(2		)
Total income tax expense (benefit)	$	40	$	(9	)	$	23		$	49

Schedule of Difference Between the U.S. Statutory Tax Rate and the Effective Tax Rate Used

The differences between the U.S. federal statutory income tax rate and our effective tax rate were as follows:



	Successor				Predecessor
	Fiscal Years Ended				Five Months Ended		Fiscal Year Ended
	March 31, 2019		March 31, 2018		March 31, 2017		October 31, 2016
U.S. federal statutory rate	21	%	32	%	35	%	35	%
State income taxes, net of federal impact	5	%	4	%	4	%	4	%
Non-deductible transaction costs	3	%	4	%	—	%	—	%
Remeasurement of state deferred income tax items	5	%	—	%	—	%	—	%
State valuation allowance	3	%	—	%	—	%	—	%
Research and development credit	(3	)%	—	%	(1	)%	(1	)%
Unrecognized tax benefits	1	%	—	%	—	%	—	%
Interest on federal tax refund, net of tax expense	(2	)%	—	%	—	%	—	%
Impact of Tax Act	1	%	(44	)%	—	%	—	%
Other items, net	2	%	(1	)%	1	%	—	%
Effective tax rate	36	%	(5	)%	39	%	38	%

Schedule of Components of Deferred Tax Assets and Deferred Tax Liabilities

The significant components of deferred tax assets and deferred tax liabilities were as follows:



(in millions)	March 31, 2019			March 31, 2018
Deferred tax assets:
Loss carryovers	$	91		$	—
Employee and retiree benefits	54			1
Accrued liabilities	22			8
Capital lease obligations	16			41
Interest expense carryforward	11			—
Deferred service revenue	2			16
Restructuring	1			2
Other	1			—
Deferred tax assets, gross	198			68
Valuation allowance	(13		)	—
Deferred tax assets, net of valuation allowance	185			68
Deferred tax liabilities:
Purchased intangible assets	312			224
Fixed assets	30			12
Deferred service cost	1			4
Other receivables	—			4
Deferred tax liabilities	343			244
Net deferred tax liabilities	$	158		$	176

Summary of Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s uncertain tax benefits (excluding interest and penalties and related tax attributes), included in other long-term liabilities on the accompanying balance sheets:



	Successor					Predecessor
	Fiscal Years Ended					Five Months Ended		Fiscal Year Ended
(in millions)	March 31, 2019			March 31, 2018		March 31, 2017		October 31, 2016
Balance at beginning of year	$	8		$	8	$	7	$	7
Decrease for transfers to Parent	(2		)	—		—		—
Increase for transfers from Parent	45			—		—		—
Increase for current year tax positions	1			—		1		—
Balance at end of year	$	52		$	8	$	8	$	7