Income Tax Provision

3 Months Ended

Sep. 30, 2013

Income Tax Provision [Abstract]

Income Tax Provision

Note 13 – Income Taxes

Our effective tax rate was 38 percent for both the three and six months ended September 30, 2013 and 38 and 37 percent for the three and six months endedSeptember 30, 2012, respectively. Our provision for income taxes for the three and six months endedSeptember 30, 2013was $149 million and $202 million, respectively, compared to $200 million and$479 million for the same periods in fiscal 2013.  The decrease in the provision is consistent with the decrease in our income before tax for the three and six months ended September 30, 2013compared to the same periods in fiscal 2013.

Tax-related Contingencies

As of September 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 September 30, 2013, our assessment did not result in a material change in unrecognized tax benefits.

Our deferred tax assets were $1.2 billion at September 30, 2013andMarch 31, 2013, and were primarily due to the deferred deduction of allowance for credit losses and cumulative federal and state tax loss carryforwards that expire in varying amounts through fiscal 2034. The deferred tax asset related to the capital loss carryforward was reduced by a valuation allowance of $1 million during the quarter ended September 30, 2013. Realization with respect to the federal and state tax loss carryforwards is dependent on generating sufficient income prior to expiration of the loss carryforwards. Although realization is not assured, management believes that apart from the valuation allowance 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. A valuation allowance was previously established for a portion of the state tax loss carryforward that management had determined would not be realizable. The total deferred tax liability at September 30, 2013, net of these deferred tax assets, was $6.5 billion compared with $6.2 billion at March 31, 2013.