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Income Taxes	9 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 10 – Income Taxes Our effective tax rate was 24 percent for the three and nine months ended December 31, 2020, respectively, compared to 16 percent and 23 percent for the same periods in fiscal 2020. Our provision for income taxes was $215 million and $546 million for the three and nine months ended December 31, 2020, respectively, compared to $34 million and $296 million for the same periods in fiscal 2020. The increase in the provision for income taxes for the three and nine months ended December 31, 2020, compared to the same periods in fiscal 2020, was primarily due to the increase in income before income taxes. The higher effective tax rate for the three and nine months ended December 31, 2020, compared to the same periods in fiscal 2020 was primarily attributable to the tax benefit from the federal tax credit recognized in the third quarter of fiscal 2020. The federal tax credit for fuel cell vehicles was extended by the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (H.R.1865) in December 2019 and applied retroactively to fuel cell vehicles purchased on or after January 1, 2018. Tax-related Contingencies As of December 31, 2020, we remain under IRS examination for fiscal 2021, 2020, 2019 and 2018. We periodically review our uncertain tax positions. Our assessment is based on many factors including any ongoing IRS audits. For the three months ended December 31, 2020, our assessment did not result in a material change in unrecognized tax benefits. Our deferred tax assets include the deferred deduction of allowance for credit losses and residual value loss estimates and other deferred costs. The total deferred tax liability, net of these deferred tax assets, was $3.6 billion and $5.5 billion at December 31, 2020 and March 31, 2020, respectively. The decrease in our net deferred tax liability was primarily due to the reversal of the temporary difference between depreciation expense reported for financial statement and that reported for income tax purposes. Although realization of the deferred tax assets 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.

Income Taxes

9 Months Ended

Dec. 31, 2020

Note 10 – Income Taxes

Our effective tax rate was 24 percent for the three and nine months ended December 31, 2020, respectively, compared to 16 percent and 23 percent for the same periods in fiscal 2020. Our provision for income taxes was $215 million and $546 million for the three and nine months ended December 31, 2020, respectively, compared to $34 million and $296 million for the same periods in fiscal 2020. The increase in the provision for income taxes for the three and nine months ended December 31, 2020, compared to the same periods in fiscal 2020, was primarily due to the increase in income before income taxes. The higher effective tax rate for the three and nine months ended December 31, 2020, compared to the same periods in fiscal 2020 was primarily attributable to the tax benefit from the federal tax credit recognized in the third quarter of fiscal 2020. The federal tax credit for fuel cell vehicles was extended by the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (H.R.1865) in December 2019 and applied retroactively to fuel cell vehicles purchased on or after January 1, 2018.

Tax-related Contingencies

As of December 31, 2020, we remain under IRS examination for fiscal 2021, 2020, 2019 and 2018.

We periodically review our uncertain tax positions. Our assessment is based on many factors including any ongoing IRS audits. For the three months ended December 31, 2020, our assessment did not result in a material change in unrecognized tax benefits.

Our deferred tax assets include the deferred deduction of allowance for credit losses and residual value loss estimates and other deferred costs. The total deferred tax liability, net of these deferred tax assets, was $3.6 billion and $5.5 billion at December 31, 2020 and March 31, 2020, respectively. The decrease in our net deferred tax liability was primarily due to the reversal of the temporary difference between depreciation expense reported for financial statement and that reported for income tax purposes. Although realization of the deferred tax assets 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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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