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Share-Based Compensation (Tables)
 12 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]  
Schedule of components of share-based compensation expense and related tax benefits
The components of share-based compensation expense and related tax benefits are as follows:
Years Ended March 31,
(In millions)202120202019
Restricted stock unit awards (1)
$137 $104 $75 
Stock options4 7 12 
Employee stock purchase plan10 8 8 
Share-based compensation expense
151 119 95 
Tax benefit for share-based compensation expense (2)
(23)(18)(12)
Share-based compensation expense, net of tax
$128 $101 $83 
(1)Includes compensation expense recognized for RSUs, PeRSUs, and PSUs.
(2)Income tax benefit is computed using the tax rates of applicable tax jurisdictions. Additionally, a portion of compensation expense is not tax-deductible. Income tax expense for 2021, 2020, and 2019 included discrete income tax expense of $2 million, $2 million, and $4 million, respectively.
Schedule of assumptions used to estimate fair value of PSUs
The weighted-average assumptions used in the Monte Carlo valuations are as follows:
Years Ended March 31,
202120202019
Expected stock price volatility36 %30 %31 %
Expected dividend yield
1.1 %1.3 %0.9 %
Risk-free interest rate0.2 %2.2 %2.6 %
Expected life (in years)
333
Summary of restricted stock unit award activity
The following table summarizes activity for restricted stock unit awards (RSUs, PSUs, and PeRSUs) during 2021:
(In millions, except per share data)SharesWeighted-
Average
Grant Date Fair
Value Per Share
Nonvested, March 31, 20203$135.57 
Granted1155.47 
Cancelled—133.70 
Vested(1)147.63 
Nonvested, March 31, 20213$142.13 
Schedule of data related to restricted stock unit award activity
The following table provides data related to restricted stock unit award activity:
Years Ended March 31,
(In millions)202120202019
Total fair value of shares vested$79 $67 $59 
Total compensation cost, net of estimated forfeitures, related to nonvested restricted stock unit awards not yet recognized, pre-tax
$147 $155 $119 
Weighted-average period in years over which restricted stock unit award cost is expected to be recognized
232
Schedule of weighted-average assumptions used to estimate the fair value
Weighted-average assumptions used to estimate the fair value of employee stock options were as follows: (1)
Year Ended
March 31, 2019
Expected stock price volatility (2)
26 %
Expected dividend yield (3)
0.9 %
Risk-free interest rate (4)
2.8 %
Expected life (in years) (5)
4.6
(1)The Company did not grant any stock options during the years ended March 31, 2021 and 2020.
(2)The computation of expected volatility was based on a combination of the historical volatility of the Company’s common stock and implied market volatility. The Company believes this market-based input provides a reasonable estimate of its future stock price movements and is consistent with employee stock option valuation considerations.
(3)Expected dividend yield is based on historical experience and investors’ current expectations.
(4)The risk-free interest rate for periods within the expected life of the option is based on the constant maturity U.S. Treasury rate in effect at the grant date.
(5)The expected life of the options is based primarily on historical employee stock option exercises and other behavioral data and reflects the impact of changes in the contractual life of current option grants compared to the Company’s historical grants.
Summary of options outstanding
The following is a summary of stock options outstanding at March 31, 2021:
Options OutstandingOptions Exercisable
Range of Exercise
Prices		Number of
Options
Outstanding
at Year End
(In millions)		Weighted-
Average
Remaining
Contractual
Life (Years)		Weighted-
Average
Exercise Price		Number of
Options
Exercisable at
Year End
(In millions)		Weighted-
Average
Exercise Price
$118.41 –$183.201 3$166.18 1 $171.38 
183.20 –237.861 1216.23 1 216.23 
2 2 
Summary of stock option activity
The following table summarizes stock option activity during 2021:
(In millions, except per share data)SharesWeighted-
Average
Exercise
Price		Weighted-
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic
Value (2)
Outstanding, March 31, 20202$180.48 3$1 
Granted—— 
Cancelled—187.12 
Exercised—153.51 
Outstanding, March 31, 20212$183.29 2$36 
Vested and expected to vest (1)
2$183.38 2$35 
Vested and exercisable, March 31, 20212189.20 224 
(1)The number of options expected to vest takes into account an estimate of expected forfeitures.
(2)The intrinsic value is calculated as the difference between the period-end market price of the Company’s common stock and the exercise price of “in-the-money” options.
Summary of data related to stock option activity
The following table provides data related to stock option activity:
Years Ended March 31,
(In millions, except per share data)202120202019
Weighted-average grant date fair value per stock option$— $— $34.98 
Aggregate intrinsic value on exercise$5 $17 $16 
Cash received upon exercise$38 $66 $29 
Tax benefits realized related to exercise$4 $4 $4 
Total fair value of stock options vested$10 $16 $16 
Total compensation cost, net of estimated forfeitures, related to unvested stock options not yet recognized, pre-tax
$2 $6 $15 
Weighted-average period in years over which stock option compensation cost is expected to be recognized
222