Income Taxes (Tables)

12 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes consisted of the following:

	Years ended March 31,
	2021			2020			2019
Current
Federal	$	2,756		$	(19	)	$	(55	)
State		386			120			76
Foreign		11			8			4
Total		3,153			109			25
Deferred
Federal		(2,243	)		145			207
State		(276	)		(141	)		(49	)
Foreign		(2	)		(2	)		(1	)
Total		(2,521	)		2			157
Provision for income taxes	$	632		$	111		$	182

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,
	2021			2020			2019
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)		3.9	%		4.0	%		4.6	%
Effect of state tax law changes		(0.2	)%		(3.9	)%		(1.3	)%
Federal tax credits		(0.5	)%		(3.7	)%		(1.0	)%
Tax rate differential from tax loss carryback		-			(5.6	)%		(2.8	)%
Adjustment for prior year provision to return differences		(0.2	)%		(1.0	)%		(1.4	)%
Other, net		(0.1	)%		-			(0.5	)%
Effective tax rate		23.9	%		10.8	%		18.6	%

Deferred Tax Liabilities and Assets

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

	March 31,
	2021			2020
Liabilities:
Lease transactions	$	2,765		$	5,180
State taxes, net of federal tax benefit		377			629
Voluntary protection dealer commissions		290			254
Mark-to-market of investments in marketable securities and derivatives		34			14
Other		82			83
Deferred tax liabilities	$	3,548		$	6,160
Assets:
Provision for credit and residual value losses		421			370
Deferred costs and fees		187			188
Net operating loss and tax credit carryforwards		29			100
Lease obligations		27			25
Other		33			32
Deferred tax assets		697			715
Valuation allowance		(9	)		(13	)
Net deferred tax assets	$	688		$	702
Net deferred income tax liability 1	$	2,860		$	5,458

^{1 Balance includes deferred tax liabilities attributable to unrealized gains or losses included in accumulated other comprehensive income or loss, net of $2 million and $4 million at March 31, 2021 and 2020, respectively. 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,
	2021			2020		2019
Balance at beginning of the year	$	19		$	7	$	6
Increases related to positions taken during the current year		1			12		1
Increases recorded in current year related to positions taken     during prior years		2			-		-
Expirations due to lapse of statute		(7	)		-		-
Balance at end of year	$	15		$	19	$	7