Income Taxes (Disclosure)

9 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure Text Block

Note 14 – Income Taxes

Our effective tax rate was 38percent for the first nine months and third quarter of both fiscal 2012 and fiscal 2011. Our provision for income taxes for the first nine months of fiscal 2012 was $828 million compared to $909 million for the same period in fiscal 2011.  This decrease in provision is consistent with the decrease in our income before tax for the first nine months of fiscal 2012 compared to the same period in fiscal 2011.

Tax-Related Contingencies

As of December 31, 2011,we remain under IRS examination for the fiscal years ended March 31, 2011 and March 31, 2012. The IRS examination for the fiscal years ended March 31,2007 through March 31, 2009 was concluded in the fourth quarter of fiscal 2011 resulting in a refund of $105 million plus interest, received during the first quarter of fiscal 2012. The IRS examination for the fiscal year ended March 31, 2010 was concluded in the first quarter of fiscal 2012; there was no impact on our tax liability.

We periodically review our uncertain tax positions. Our assessment is based on many factors including the ongoing IRS audits. For the quarter ended December 31, 2011, our assessment did not result in a material change in unrecognized tax benefits.

Our deferred tax assets at December 31, 2011were $2.4billion compared to $2.5 billion at March 31, 2011, and were primarily due to the deferred deduction of allowance for credit losses and cumulative federal tax loss carryforwards that expire in varying amounts through fiscal year 2032. The total deferred tax liability at December 31, 2011, net of these deferred tax assets, was $5.2billion compared with $4.4 billion at March 31, 2011. Realization with respect to the federal tax loss carryforwards is dependent on generating sufficient income prior to expiration of the loss carryforwards. Although realization 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.