Income Tax Provision (Tables)

12 Months Ended

Mar. 31, 2013

Income Tax Provision [Abstract]

Provision for Income Taxes

Note 13 – Income Tax Provision
The provision for income taxes consisted of the following:
		Years ended March 31,
(Dollars in millions)		2013		2012		2011
Current
Federal	$	(15)	$	(33)	$	(26)
State		41		7		30
Foreign		6		9		10
Total current		32		(17)		14
Deferred
Federal		721		830		981
State		69		123		151
Foreign		2		1		4
Total deferred		792		954		1,136
Provision for income taxes	$	824	$	937	$	1,150

Reconciliation Between U.S. Federal Statutory Tax Rate and Effective Tax Rate

	Years ended March 31,
	2013		2012		2011
Provision for income taxes at U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%
State and local taxes (net of federal tax benefit)	3.2	%	3.4	%	3.4	%
Other	-	%	0.3	%	(0.1)	%
Effective tax rate	38.2	%	38.7	%	38.3	%

Deferred Federal and State Income Tax Liabilities

Note 13 – Income Tax Provision (Continued)
The net deferred income tax liabilities, by tax jurisdiction, are as follows:
		March 31,
(Dollars in millions)		2013		2012
Federal	$	5,763	$	5,009
State		475		406
Foreign		(2)		(3)
Net deferred income tax liability	$	6,236	$	5,412

Deferred Tax Liabilities and Assets

Our net deferred income tax liability consists of the following deferred tax liabilities and assets:
		March 31,
(Dollars in millions)		2013		2012
Liabilities:
Lease transactions	$	6,509	$	6,379
State taxes		446		429
Mark-to-market of investments in marketable securities		210		48
Other		295		296
Deferred tax liabilities	$	7,460	$	7,152
Assets:
Provision for credit and residual value losses		347		369
Deferred costs and fees		167		155
Net operating loss and tax credit carryforwards		679		1,168
Other		47		52
Deferred taxassets		1,240		1,744
Valuation allowance		(16)		(4)
Net deferred tax assets	$	1,224	$	1,740
Net deferred income tax liability	$	6,236	$	5,412

Change in Unrecognized Tax Benefits

		March 31,
(Dollars in millions)		2013		2012		2011
Balance at beginning of the period	$	8	$	6	$	39
Increases related to positions taken during the prior years		-		2		-
Increases related to positions taken during the current year		1		-		-
Settlements		(2)		-		(33)
Balance at end of period	$	7	$	8	$	6