Income Tax Provision (Tables)

12 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes consisted of the following:

	Years ended March 31,
	2017			2016			2015
Current
Federal	$	136		$	73		$	(25	)
State		2			(33	)		(15	)
Foreign		7			9			9
Total		145			49			(31	)
Deferred
Federal		(9	)		420			644
State		5			111			117
Foreign		1			-			(1	)
Total		(3	)		531			760
Provision for income taxes	$	142		$	580		$	729

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,
	2017			2016			2015
Provision for income taxes at U.S. federal statutory tax rate		35.0	%		35.0	%		35.0	%
State and local taxes (net of federal tax benefit)		3.6	%		3.2	%		3.2	%
Other, net		(3.9	)%		0.2	%		(0.3	)%
Effective tax rate		34.7	%		38.4	%		37.9	%

Deferred Tax Liabilities and Assets

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

	March 31,
	2017			2016
Liabilities:
Lease transactions	$	7,647		$	8,579
State taxes, net of federal tax benefit		640			642
Mark-to-market of investments in marketable securities and derivatives		267			316
Other		383			344
Deferred tax liabilities	$	8,937		$	9,881
Assets:
Provision for credit and residual value losses		593			431
Deferred costs and fees		306			292
Net operating loss and tax credit carryforwards		67			1,097
Other		66			67
Deferred tax assets		1,032			1,887
Valuation allowance		(21	)		(22	)
Net deferred tax assets	$	1,011		$	1,865
Net deferred income tax liability1	$	7,926		$	8,016

¹  Balance includes deferred tax liabilities attributable to unrealized gains or losses included in accumulated other comprehensive income or loss, net of $15 million and $102 million at March 31, 2017 and 2016, respectively. The change in this deferred liability is not included in total deferred tax expense.