Income Tax Provision

3 Months Ended

Jun. 30, 2012

Income Tax Provision [Abstract]

Income Tax Provision

Note 13 – Income Taxes

Our effective tax rate was 37percent for the first quarter of fiscal 2013 and 38 percent for the first quarter of fiscal 2012. Our provision for income taxes for the first quarter of fiscal 2013 was $279 million compared to $283 million for the same period in fiscal 2012.  This decrease in provision resulted from the recognition of a provision benefit related to state audit settlements, notwithstanding an increase in income before tax and an increase in the income tax provision before consideration of the state tax provision benefit.

Tax-Related Contingencies

As of June 30, 2012,we remain under IRS examination for the fiscal years ended March 31, 2011 andMarch 31, 2012, as well as the current fiscal year.

We periodically review our uncertain tax positions. Our assessment is based on many factors including the ongoing IRS audits. For the quarter ended June 30, 2012, our assessment did not result in a material change in unrecognized tax benefits.

Our deferred tax assets at June 30, 2012were $1.6 billion compared to $1.7 billion at March 31, 2012, and were primarily due to the deferred deduction of allowance for credit losses and cumulative federal tax loss carryforwards that expire in varying amounts through fiscal year 2032. The total deferred tax liability at June 30, 2012, net of these deferred tax assets, was $5.7 billion compared with $5.4 billion at March 31, 2012. Realization with respect to the federal tax loss carryforwards is dependent on generating sufficient income prior to expiration of the loss carryforwards. Although realization is not assured, management believes it is more likely than not that the deferred tax assets will be realized. The amount of the deferred tax assets considered realizable could be reduced if management's estimates change.