Income Taxes (Tables)

12 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes consisted of the following:

	Years ended March 31,
	2022			2021			2020
Current
Federal	$	1,774		$	2,756		$	(19	)
State		281			386			120
Foreign		22			11			8
Total		2,077			3,153			109
Deferred
Federal		(1,166	)		(2,243	)		145
State		(123	)		(276	)		(141	)
Foreign		1			(2	)		(2	)
Total		(1,288	)		(2,521	)		2
Provision for income taxes	$	789		$	632		$	111

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,
	2022			2021			2020
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)		3.7	%		3.9	%		4.0	%
Effect of state tax law changes		0.3	%		(0.2	)%		(3.9	)%
Federal tax credits 1		(1.0	)%		(0.5	)%		(3.7	)%
Tax rate differential from tax loss carryback		-			-			(5.6	)%
Adjustment for prior year provision to return differences		(0.3	)%		(0.2	)%		(1.0	)%
Other, net		-			(0.1	)%		-
Effective tax rate		23.7	%		23.9	%		10.8	%

Deferred Tax Liabilities and Assets

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

	March 31,
	2022		2021
Liabilities:
Lease transactions	$	1,504	$	2,765
Voluntary protection dealer commissions		348		290
State taxes, net of federal tax benefit		275		377
Mark-to-market of investments in marketable securities and derivatives		24		34
Other		82		82
Deferred tax liabilities	$	2,233	$	3,548
Assets:
Provision for credit and residual value losses		394		421
Deferred costs and fees		179		187
Accrued expenses		45		21
Lease obligations		23		27
Net operating loss and tax credit carryforwards		14		29
Other		14		12
Deferred tax assets		669		697
Valuation allowance		-		(9	)
Net deferred tax assets	$	669	$	688
Net deferred income tax liability 1	$	1,564	$	2,860

^{1 Balance includes deferred tax assets (liabilities) of $6 million and $(2) million at March 31, 2022 and 2021, respectively, attributable to unrealized gains or losses included in accumulated other comprehensive income or loss, net. The change in this balance is not included in total deferred tax expense.}

Change in Unrecognized Tax Benefits

The change in unrecognized tax benefits are as follows:

	March 31,
	2022		2021			2020
Balance at beginning of the year	$	15	$	19		$	7
Increases related to positions taken during the current year		1		1			12
Increases recorded in current year related to positions taken     during prior years		6		2			-
Expirations due to lapse of statute		-		(7	)		-
Balance at end of year	$	22	$	15		$	19