Income Taxes (Tables)

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes consisted of the following:

	Years ended March 31,
	2024			2023			2022
Current
Federal	$	769		$	(1,859	)	$	1,774
State		114			(1	)		281
Foreign		12			16			22
Total		895			(1,844	)		2,077
Deferred
Federal		(376	)		2,100			(1,166	)
State		(72	)		78			(123	)
Foreign		(5	)		(5	)		1
Total		(453	)		2,173			(1,288	)
Provision for income taxes	$	442		$	329		$	789

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,
	2024	2023	2022
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)	3.4%	4.2%	3.7%
Changes in unrecognized tax benefits	0.5%	1.3%	-
Federal tax credits 1	-	(1.0)%	(1.0)%
Effect of state tax law changes	(1.2)%	(0.3)%	0.3%
Other, net	(0.5)%	-	(0.3)%
Effective tax rate	23.2%	25.2%	23.7%

1.The amounts in Federal tax credits include tax benefits from foreign tax credits and research and development credits for fiscal 2024, 2023, and 2022, and tax benefits from plug-in vehicle credits for fiscal 2023 and 2022. The amounts in Federal tax credits also include tax benefits from qualified commercial clean vehicle credits for fiscal 2023 and alternative fuel vehicle credits for fiscal 2022.

Deferred Tax Liabilities and Assets

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

	March 31,
	2024			2023
Liabilities:
Lease transactions	$	3,493		$	4,786
Voluntary protection dealer commissions		439			403
State taxes, net of federal tax benefit		271			356
Other		73			72
Deferred tax liabilities	$	4,276		$	5,617
Assets:
Provision for credit and residual value losses		517			478
Deferred costs and fees		210			197
Mark-to-market of investments in marketable securities and derivatives		186			150
Accrued expenses		40			23
Lease obligations		19			20
Net operating loss and tax credit carryforwards		14			1,007
Other		19			17
Deferred tax assets		1,005			1,892
Valuation allowance		(1	)		(2	)
Net deferred tax assets	$	1,004		$	1,890
Net deferred income tax liability 1	$	3,272		$	3,727

Balance includes deferred tax assets of $18 million and $16 million at March 31, 2024 and 2023, 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,
	2024			2023		2022
Balance at beginning of the year	$	43		$	22	$	15
Increases related to positions taken during the current year		3			2		1
Increases recorded in current year related to positions taken     during prior years		11			19		6
Settlements		(3	)		-		-
Expirations due to lapse of statute		(2	)		-		-
Balance at end of the year	$	52		$	43	$	22