Income Tax Provision

3 Months Ended

Dec. 31, 2012

Income Tax Provision [Abstract]

Income Tax Provision

Note 13 – Income Taxes

Our effective tax rate was 36percentand 37percent for the three and nine months ended December 31, 2012, respectively, and 38 percent for both the three and nine months endedDecember 31, 2011. Our provision for income taxes for the first nine months of fiscal 2013 was $635 million compared to $828 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 nine months of fiscal 2013 compared to the same period in fiscal 2012.

Tax-related Contingencies

As of December 31, 2012,we remain under IRS examination for the fiscal years ended March 31, 2011 andMarch 31, 2012, as well as for 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 December 31, 2012, our assessment did not result in a material change in unrecognized tax benefits.

Our deferred tax assets at December 31, 2012were $1.3billion 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 2032. The total deferred tax liability at December 31, 2012, net of these deferred tax assets, was $6.1billion 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.