XBRL Cloud: Business Report

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Network	100290 - Disclosure - Income Taxes (Tables) (http://www.hondafinancialservices.com/20160331/taxonomy/role/DisclosureIncomeTaxesTables)
Table	(Implied)

Slicers (applies to each fact value in each table cell)

Reporting Entity [Axis]

0000864270 (http://www.sec.gov/CIK)

Income Tax Disclosure [Abstract]

Period [Axis]

2015-04-01 - 2016-03-31

Income Tax Disclosure [Abstract]

Consolidated Income Tax Expense/(Benefit)

The Company’s consolidated income tax expense/(benefit) was computed on a modified separate return basis pursuant to the intercompany tax allocation agreement with the Parent and consisted of the following:

	Current			Deferred			Total
	(U.S. dollars in millions)
Year ended March 31, 2016
Federal	$	(428	)	$	861		$	433
State and local		(15	)		88			73
Foreign		22			20			42
	$	(421	)	$	969		$	548
Year ended March 31, 2015
Federal	$	14		$	485		$	499
State and local		12			11			23
Foreign		21			17			38
	$	47		$	513		$	560
Year ended March 31, 2014
Federal	$	340		$	(23	)	$	317
State and local		68			47			115
Foreign		30			27			57
	$	438		$	51		$	489

Reconciliation of the Expected Income Tax Expense to the Reported Income Tax Expense

Income tax expense differs from the “expected” income taxes by applying the statutory federal corporate rate of 35% to income before income taxes as follows:

	Years ended March 31,
	2016			2015			2014
	(U.S. dollars in millions)
Computed “expected” income taxes	$	510		$	543		$	506
Foreign tax rate differential		(13	)		(12	)		(17	)
Effect of change in foreign tax rate		-			-			1
Effect of foreign dividends and foreign tax credit		3			-			6
State and local income taxes, net of federal income tax benefit		47			58			49
Change in valuation allowance		5			-			-
Change in deduction for qualified domestic production		-			-			(14	)
Change in estimated state tax rate, net of federal income tax benefit		21			(27	)		13
Change in unrecognized tax benefit		(6	)		(3	)		(23	)
Change in prior period deferred taxes		-			-			(40	)
Other		(19	)		1			8
Income tax expense	$	548		$	560		$	489

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:

	March 31,
	2016		2015
	(U.S. dollars in millions)
Deferred tax assets:
State income tax	$	275	$	243
Receivable valuation		69		60
Accrued postretirement		20		18
State loss carryforwards		60		56
Other assets		70		70
Total gross deferred tax assets		494		447
Less valuation allowance		5		-
Net deferred tax assets		489		447
Deferred tax liabilities:
HCFI leases		257		241
AHFC leases		8,174		7,221
Derivatives		100		75
Securitizations		8		5
Other		59		50
Total gross deferred tax liabilities		8,598		7,592
Net deferred tax liabilities	$	8,109	$	7,145

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years ended March 31,
	2016			2015			2014
	(U.S. dollars in millions)
Balance, beginning of year	$	21		$	25		$	74
Additions for current year tax positions		-			-			-
Additions for prior year tax positions		-			4			3
Reductions for prior year tax positions		(10	)		(6	)		-
Settlements		5			(2	)		2
Reductions related to a lapse in the statute of limitations		-			-			(54	)
Foreign currency translation		-			-			-
Balance, end of year	$	16		$	21		$	25