Income Tax Provision

3 Months Ended

Sep. 30, 2012

Income Tax Provision [Abstract]

Income Tax Provision

Note 13 – Income Taxes

Our effective tax rate was 38 percentand 37 percent for the three and six months ended September 30, 2012, respectively, and 38 percent for both the three and six months endedSeptember 30, 2011. Our provision for income taxes for the first half of fiscal 2013 was $479 million compared to $562 million for the same period in fiscal 2012.  Thedecrease in the provision is consistent with the decrease in our income before tax for the first half of fiscal 2013 compared to the same period in fiscal 2012.

Tax-Related Contingencies

As of September 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 September 30, 2012, our assessment did not result in a material change in unrecognized tax benefits.

Our deferred tax assets at September 30, 2012were $1.5 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 September 30, 2012, net of these deferred tax assets, was $5.9 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.