Income Taxes (Tables)

12 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes consisted of the following:

	Years ended March 31,
	2023			2022			2021
Current
Federal	$	(1,859	)	$	1,774		$	2,756
State		(1	)		281			386
Foreign		16			22			11
Total		(1,844	)		2,077			3,153
Deferred
Federal		2,100			(1,166	)		(2,243	)
State		78			(123	)		(276	)
Foreign		(5	)		1			(2	)
Total		2,173			(1,288	)		(2,521	)
Provision for income taxes	$	329		$	789		$	632

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

A reconciliation between the U.S. federal statutory tax rate and the effective tax rate is as follows:

	Years ended March 31,
	2023	2022	2021
Provision for income taxes at U.S. federal statutory tax rate	21.0%	21.0%	21.0%
State and local taxes (net of federal tax benefit)	4.2%	3.7%	3.9%
Changes in unrecognized tax benefits	1.3%	-	-
Federal tax credits 1	(1.0)%	(1.0)%	(0.5)%
Other, net	(0.3)%	-	(0.5)%
Effective tax rate	25.2%	23.7%	23.9%

1.The amounts in Federal tax credits include tax benefits from foreign tax credits, plug-in vehicle credits, and research and development credits for fiscal 2023, 2022, and 2021. The amounts in Federal tax credits also include credits for qualified commercial clean vehicles for fiscal 2023 and alternative fuel vehicle credits for fiscal 2022 and 2021.

Deferred Tax Liabilities and Assets

Our net deferred income tax liability consisted of the following deferred tax liabilities and assets:

	March 31,
	2023			2022
Liabilities:
Lease transactions	$	4,786		$	1,504
Voluntary protection dealer commissions		403			348
State taxes, net of federal tax benefit		356			275
Mark-to-market of investments in marketable securities and derivatives		-			24
Other		72			82
Deferred tax liabilities	$	5,617		$	2,233
Assets:
Net operating loss and tax credit carryforwards		1,007			14
Provision for credit and residual value losses		478			394
Deferred costs and fees		197			179
Mark-to-market of investments in marketable securities and derivatives		150			-
Accrued expenses		23			45
Lease obligations		20			23
Other		17			14
Deferred tax assets		1,892			669
Valuation allowance		(2	)		-
Net deferred tax assets	$	1,890		$	669
Net deferred income tax liability 1	$	3,727		$	1,564

Balance includes deferred tax assets of $16 million and $6 million at March 31, 2023 and 2022, respectively, attributable to unrealized losses included in accumulated other comprehensive loss. The change in this balance is not included in the total deferred tax expense.

Change in Unrecognized Tax Benefits

The change in unrecognized tax benefits are as follows:

	March 31,
	2023		2022		2021
Balance at beginning of the year	$	22	$	15	$	19
Increases related to positions taken during the current year		2		1		1
Increases recorded in current year related to positions taken     during prior years		19		6		2
Expirations due to lapse of statute		-		-		(7	)
Balance at end of year	$	43	$	22	$	15