INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of (Loss) Income from Continuing Operations Before Income Taxes

Components of (Loss) income before income taxes are as follows:

	Fiscal Year Ended March 31,
	2023		2022		2021
Domestic	$	(937.0)	$	357.5	$	468.0
Foreign	(401.1)		107.9		209.8
(Loss) income before income taxes	$	(1,338.1)	$	465.4	$	677.8

Schedule of Provision for Current and Deferred Income Taxes

Provision for (benefit from) current and deferred income taxes consists of the following:

	Fiscal Year Ended March 31,
	2023		2022		2021
Current:
U.S. federal	$	70.2	$	12.0	$	18.4
U.S. state and local	3.3		(0.6)		6.0
Foreign	98.0		24.1		27.4
Total current income taxes	171.5		35.5		51.8
Deferred:
U.S. federal	(175.4)		34.8		43.6
U.S. state and local	(31.4)		2.9		1.1
Foreign	(178.1)		(25.8)		(7.6)
Total deferred income taxes	(384.9)		11.9		37.1
(Benefit from) provision for income taxes	$	(213.4)	$	47.4	$	88.9

Schedule of Reconciliation of Effective Tax Rate to the U.S. Statutory Federal Income Tax Rate

A reconciliation of our effective tax rate to the U.S. statutory federal income tax rate is as follows:

	Fiscal Year Ended March 31,
	2023		2022		2021
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State and local taxes, net of U.S. federal benefit	2.0	%	1.2	%	1.1	%
Foreign tax rate differential(1)	(0.3)	%	(1.8)	%	(2.9)	%
Foreign earnings(2)	(1.3)	%	(2.3)	%	(0.1)	%
Tax credits(3)	5.7	%	(6.6)	%	(4.3)	%
Excess tax benefits from stock-based compensation	(0.5)	%	(3.1)	%	(2.0)	%
Earn-out adjustments	(0.4)	%	2.2	%	—	%
Valuation allowance—domestic	(6.3)	%	(0.1)	%	0.1	%
Valuation allowance—foreign	(0.1)	%	0.4	%	—	%
Nondeductible compensation	(0.9)	%	0.4	%	0.3	%
Global intangible low-taxed income	(3.1)	%	0.1	%	0.3	%
Foreign-derived intangible income	1.8	%	(0.9)	%	(0.8)	%
Change in reserves	(0.1)	%	(0.9)	%	(0.4)	%
Other(4)	(1.6)	%	0.6	%	0.8	%
Effective tax rate	15.9	%	10.2	%	13.1	%

(1) The foreign rate differentials in relation to foreign earnings, for all periods presented, are primarily driven by changes in the mix of our foreign earnings and the difference between the foreign and U.S. income tax rates.

(2) Fiscal years ended March 31, 2023 and March 31, 2022 include effects of an increase of the deferred tax asset related to the Federal Act on Tax Reform and AVH Financing ("TRAF") enacted on January 1, 2020.

(3) Tax benefits were recorded for fiscal years ended March 31, 2023, 2022, and 2021 attributable to certain tax credits related to software development activities.

(4) Includes nondeductible expense of $8.2 relating to loss on the redemption of convertible debt for the fiscal year ended March 31, 2023.

Schedule of Effects of Temporary Differences that Gave Rise to Deferred Tax Assets and Liabilities

The effects of temporary differences that gave rise to our deferred tax assets and liabilities were as follows:

	March 31,
	2023		2022
Deferred tax assets:
Tax credit carryforward	$	159.5	$	71.6
Capitalized development costs, software and depreciation	157.8		—
Equity-based compensation	109.8		88.4
Accrued compensation expense	96.6		106.0
Operating lease liabilities	90.6		54.3
Tax basis step up related to TRAF	79.1		58.5
Net operating loss carryforward	50.3		10.3
Deferred revenue	—		13.0
Other	26.0		12.0
Total deferred tax assets	769.7		414.1
Less: Valuation allowance	(338.2)		(121.9)
Net deferred tax assets	$	431.5	$	292.2
Deferred tax liabilities:
Intangible amortization	$	(841.0)	$	(45.1)
Right of use assets	(64.7)		(50.0)
Deferred revenue	(15.0)		—
Capitalized software and depreciation	—		(145.1)
Total deferred tax liabilities	(920.7)		(240.2)
Net deferred tax asset (1)	$	(489.2)	$	52.0

(1) As of March 31, 2023, $44.8 is included in Deferred tax assets and $534.0 is included in Other long-term liabilities. As of March 31, 2022, $73.8 is included in Deferred tax assets and $21.8 is included in Other long-term liabilities.

Schedule of Aggregate Changes to the Liability for Gross Uncertain Tax Positions, Excluding Interest and Penalties

The aggregate changes to the liability for gross uncertain tax positions, excluding interest and penalties, were as follows:

	Fiscal Year Ended March 31,
	2023		2022		2021
Balance, beginning of period	$	164.8	$	158.3	$	127.5
Additions:
Current year tax positions	26.5		10.3		18.9
Prior year tax positions(1)	109.7		4.2		21.0
Reduction of prior year tax positions	(26.3)		—		(1.0)
Lapse of statute of limitations	—		(8.0)		(8.1)
Balance, end of period	$	274.7	$	164.8	$	158.3

(1) Increase in prior year tax positions of $109.9 relates to purchase accounting for the Zynga acquisition.