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Income Taxes (Tables)

12 Months Ended

Mar. 31, 2013

Income from continuing operations before taxes attributable to domestic and foreign operations

The amounts of income from continuing operations before income taxes attributable to domestic and foreign operations are as follows:



	Year Ended March 31,
(in millions)	2013		2012		2011
Domestic	$	924	$	830	$	751
Foreign	394		524		458
Income from continuing operations before income taxes	$	1,318	$	1,354	$	1,209

Income tax expense (benefit) from continuing operations

Income tax expense (benefit) from continuing operations consists of the following:



	Year Ended March 31,
(in millions)	2013			2012			2011
Current:
Federal	$	279		$	275		$	110
State	39			37			48
Foreign	32			120			88
Total current	$	350		$	432		$	246
Deferred:
Federal	$	(18	)	$	4		$	65
State	3			(22		)	5
Foreign	28			2			70
Total deferred	$	13		$	(16	)	$	140
Total:
Federal	$	261		$	279		$	175
State	42			15			53
Foreign	60			122			158
Total income tax expense from continuing operations	$	363		$	416		$	386

Schedule of effective income tax rate reconciliation

The income tax expense from continuing operations is reconciled to the tax expense computed at the U.S. federal statutory tax rate as follows:



	Year Ended March 31,
(in millions)	2013			2012			2011
Tax expense at U.S. federal statutory tax rate	$	461		$	474		$	423
Effect of international operations	(128		)	(89		)	(129		)
U.S. federal and state tax contingencies	(8		)	23			61
Domestic manufacturing deduction	(21		)	(19		)	(19		)
State taxes, net of U.S. federal tax benefit	23			17			13
Valuation allowance	11			(15		)	(2		)
Other, net	25			25			39
Income tax expense from continuing operations	$	363		$	416		$	386

Schedule of deferred tax assets and liabilities

The tax effects of the temporary differences from continuing operations are as follows:



	At March 31,
(in millions)	2013			2012
Deferred tax assets:
Modified accrual basis accounting for revenue	$	379		$	447
Share-based compensation	38			48
Accrued expenses	42			30
Net operating losses	158			173
Intangible assets amortizable for tax purposes	7			11
Deductible state tax and interest benefits	51			56
Other	55			53
Total deferred tax assets	$	730		$	818
Valuation allowances	(75		)	(68		)
Total deferred tax assets, net of valuation allowance	$	655		$	750
Deferred tax liabilities:
Purchased software	$	93		$	133
Depreciation	21			31
Other intangible assets	41			56
Capitalized development costs	209			206
Total deferred tax liabilities	$	364		$	426
Net deferred tax asset	$	291		$	324

Roll-forward of uncertain tax positions

A roll-forward of the Company’s uncertain tax positions for all U.S. federal, state and foreign tax jurisdictions is as follows:



	At March 31,
(in millions)	2013			2012
Balance at beginning of year	$	523		$	522
Additions for tax positions related to the current year	30			26
Additions for tax positions from prior years	60			21
Reductions for tax positions from prior years	(158		)	(17		)
Settlement payments	(55		)	(19		)
Statute of limitations expiration	(15		)	(6		)
Translation and other	(3		)	(4		)
Balance at end of year	$	382		$	523

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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