Income Taxes (Tables)

12 Months Ended

Mar. 31, 2020

Schedule of Provisions (Benefit) for Taxes

The provision (benefit) for taxes were as follows:



	Fiscal Years Ended
(in millions)	March 31, 2020			March 31, 2019		March 31, 2018
U.S. federal taxes:
Current	$	(14	)	$	13	$	16
Deferred	(30		)	8		(38		)
State taxes:
Current	15			19		3
Deferred	(25		)	—		10
Total income tax expense (benefit)	$	(54	)	$	40	$	(9	)

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:



	Fiscal Years Ended
	March 31, 2020		March 31, 2019		March 31, 2018
U.S. federal statutory rate	21	%	21	%	32	%
State income taxes, net of federal impact	1	%	5	%	4	%
Non-deductible transaction costs	—	%	3	%	4	%
Goodwill impairment	(18	)%	—	%	—	%
Remeasurement of state deferred income tax items	—	%	5	%	—	%
State valuation allowance	—	%	3	%	—	%
Research and development credit	—	%	(3	)%	—	%
Unrecognized tax benefits	4	%	1	%	—	%
Interest on federal tax refund, net of tax expense	—	%	(2	)%	—	%
Impact of Tax Act	—	%	1	%	(44	)%
Other items, net	(1	)%	2	%	(1	)%
Effective tax rate	7	%	36	%	(5	)%

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, 2020			March 31, 2019
Deferred tax assets:
Loss carryovers	$	83		$	91
Employee and retiree benefits	105			54
Accrued liabilities	15			22
Finance lease obligations	2			16
Operating lease obligations	45			—
Interest expense carryforward	11			11
Other	1			4
Deferred tax assets, gross	262			198
Valuation allowance	(18		)	(13		)
Deferred tax assets, net of valuation allowance	244			185
Deferred tax liabilities:
Purchased intangible assets	233			312
Fixed assets	53			30
Operating lease assets	42			—
Other	3			1
Deferred tax liabilities	331			343
Net deferred tax liabilities	$	87		$	158

Summary of Unrecognized Tax Benefits

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



	Fiscal Years Ended
(in millions)	March 31, 2020			March 31, 2019			March 31, 2018
Balance at beginning of year	$	52		$	8		$	8
Decrease for prior-year tax positions	(25		)	—			—
Decrease for transfers to Parent	—			(2		)	—
Increase for prior-year tax positions	12			45			—
Increase for current year tax positions	—			1			—
Balance at end of year	$	39		$	52		$	8