Income Taxes (Tables)

12 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes consisted of the following:

	Years ended March 31,
	2025			2024			2023
Current
Federal	$	706		$	769		$	(1,859	)
State		115			114			(1	)
Foreign		3			12			16
Total		824			895			(1,844	)
Deferred
Federal		(258	)		(376	)		2,100
State		(47	)		(72	)		78
Foreign		3			(5	)		(5	)
Total		(302	)		(453	)		2,173
Provision for income taxes	$	522		$	442		$	329

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,
	2025	2024	2023
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)	3.6%	3.4%	4.2%
Changes in unrecognized tax benefits	0.4%	0.5%	1.3%
Effect of state tax law changes	0.1%	(1.2)%	(0.3)%
State tax refund accrual (net of federal tax benefit)	(0.9)%	(0.6)%	(0.6)%
Other, net 1	(0.8)%	0.1%	(0.4)%
Effective tax rate	23.4%	23.2%	25.2%

1.The amounts in Other, net include tax benefits from foreign tax credits and research and development credits for fiscal 2025, 2024, and 2023, and tax benefits from plug-in vehicle credits and qualified commercial clean vehicle credits for fiscal 2023.

Deferred Tax Liabilities and Assets

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

	March 31,
	2025		2024
Liabilities:
Lease transactions	$	3,181	$	3,493
Voluntary protection dealer commissions		485		439
State taxes, net of federal tax benefit		237		271
Other		101		73
Deferred tax liabilities	$	4,004	$	4,276
Assets:
Provision for credit and residual value losses		503		517
Deferred costs and fees		235		210
Mark-to-market of investments in marketable securities and derivatives		171		186
Lease obligations		38		19
Accrued expenses		26		40
Net operating loss and tax credit carryforwards		15		14
Other		43		19
Deferred tax assets		1,031		1,005
Valuation allowance		-		(1	)
Net deferred tax assets	$	1,031	$	1,004
Net deferred income tax liability 1	$	2,973	$	3,272

Balance includes deferred tax assets of $15 million and $18 million at March 31, 2025 and 2024, 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 changes in unrecognized tax benefits are as follows:

	March 31,
	2025			2024			2023
Balance at beginning of the year	$	52		$	43		$	22
Increases related to positions taken during the current year		14			3			2
Increases recorded in current year related to positions taken     during prior years		-			11			19
Decreases recorded in current year related to positions taken during prior years		(1	)		-			-
Settlements		-			(3	)		-
Expirations due to lapse of statute		(2	)		(2	)		-
Balance at end of the year	$	63		$	52		$	43