Income Tax Provision

3 Months Ended

Jun. 30, 2013

Income Tax Provision [Abstract]

Income Tax Provision

Note 13 – Income Taxes

Our effective tax rate was 37 percent for both the three months ended June 30, 2013 andJune 30, 2012. Our provision for income taxes for the first quarter of fiscal 2014 was $53 million compared to $279 million for the same period in fiscal 2013.  The decrease in the provision is consistent with the decrease in our income before tax for the first three months of fiscal 2014 compared to the same period in fiscal 2013.

Tax-related Contingencies

As of June 30, 2013, we remain under IRS examination for the fiscal years ended March 31, 2012 and March 31, 2013, 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 June 30, 2013, our assessment did not result in a material change in unrecognized tax benefits.

Our deferred tax assetswere $1.2 billion at June 30, 2013andMarch 31, 2013, 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 2033. The total deferred tax liability at June 30, 2013, net of these deferred tax assets, was $6.3 billion compared with $6.2 billion at March 31, 2013. 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.