Income Taxes (Tables)

12 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of income from continuing operations before income taxes

	Years Ended March 31,
(In millions)	2017		2016		2015
Income from continuing operations before income taxes
U.S.	$	5,772	$	2,319	$	1,893
Foreign	1,119		931		764
Total income from continuing operations before income taxes	$	6,891	$	3,250	$	2,657

Schedule of income tax expense related to continuing operations

Income tax expense related to continuing operations consists of the following:

	Years Ended March 31,
(In millions)	2017			2016			2015
Current
Federal	$	524		$	658		$	453
State	86			96			90
Foreign	122			90			101
Total current	732			844			644
Deferred
Federal	767			95			195
State	164			42			53
Foreign	(49		)	(73		)	(77		)
Total deferred	882			64			171
Income tax expense	$	1,614		$	908		$	815

Schedule of reconciliation between effective tax rate on income from continuing operations and statutory tax rate

The reconciliation between our effective tax rate on income from continuing operations and statutory tax rate is as follows:

	Years Ended March 31,
(In millions)	2017			2016			2015
Income tax expense at federal statutory rate	$	2,411		$	1,137		$	930
State income taxes net of federal tax benefit	153			92			81
Foreign income taxed at various rates	(326		)	(295		)	(247		)
Unrecognized tax benefits and settlements	57			(14		)	10
Controlled substance distribution reserve	—			—			58
Non-deductible goodwill impairment	106			—			—
Share-Based Compensation excess tax deduction	(54		)	—			—
Net tax benefit on intellectual property transfer	(137		)	—			—
Rate differential on gain from Change Healthcare Net Asset Exchange	(587		)	—			—
Other, net	(9		)	(12		)	(17		)
Income tax expense	$	1,614		$	908		$	815

Schedule of deferred tax balances

Deferred tax balances consisted of the following:

	March 31,
(In millions)	2017			2016
Assets
Receivable allowances	$	124		$	110
Deferred revenue	19			77
Compensation and benefit related accruals	593			710
Net operating loss and credit carryforwards	594			367
Long-term contractual obligations	107			—
Other	222			275
Subtotal	1,659			1,539
Less: valuation allowance	(503		)	(267		)
Total assets	1,156			1,272
Liabilities
Inventory valuation and other assets	(2,818		)	(2,619		)
Fixed assets and systems development costs	(224		)	(326		)
Intangibles	(921		)	(981		)
Change Healthcare Equity Investment	(773		)	—
Other	(70		)	(21		)
Total liabilities	(4,806		)	(3,947		)
Net deferred tax liability	$	(3,650	)	$	(2,675	)
Long-term deferred tax asset	28			59
Long-term deferred tax liability	(3,678		)	(2,734		)
Net deferred tax liability	$	(3,650	)	$	(2,675	)

Schedule of gross unrecognized tax benefits

The following table summarizes the activity related to our gross unrecognized tax benefits for the last three years:

	Years Ended March 31,
(In millions)	2017			2016			2015
Unrecognized tax benefits at beginning of period	$	555		$	616		$	647
Additions based on tax positions related to prior years	7			116			62
Reductions based on tax positions related to prior years	(67		)	(62		)	(18		)
Additions based on tax positions related to current year	105			28			27
Reductions based on settlements	(113		)	(141		)	(65		)
Reductions based on the lapse of the applicable statutes of limitations	—			(6		)	(12		)
Exchange rate fluctuations	(1		)	4			(25		)
Unrecognized tax benefits at end of period	$	486		$	555		$	616