Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2024 | |
Amendment Flag | false | |
Entity Registrant Name | TOYOTA MOTOR CREDIT CORPORATION | |
Entity Central Index Key | 0000834071 | |
Current Fiscal Year End Date | --03-31 | |
Trading Symbol | TM/28 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock Shares Outstanding | 91,500 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-9961 | |
Entity Tax Identification Number | 95-3775816 | |
Entity Address, Address Line One | 6565 Headquarters Drive | |
Entity Address, City or Town | Plano | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75024 | |
City Area Code | 469 | |
Local Phone Number | 486-9300 | |
Entity Incorporation, State or Country Code | CA | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Medium-Term Notes, Series BStated Maturity Date January 11, 2028 | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Financing revenues: | ||
Operating lease | $ 1,521 | $ 1,615 |
Retail | 1,420 | 1,104 |
Dealer | 268 | 185 |
Total financing revenues | 3,209 | 2,904 |
Depreciation on operating leases | 1,034 | 1,155 |
Interest expense | 1,443 | 899 |
Net financing revenues | 732 | 850 |
Voluntary protection contract revenues and insurance earned premiums | 295 | 271 |
Investment and other income, net | 223 | 162 |
Net financing revenues and other revenues | 1,250 | 1,283 |
Expenses: | ||
Provision for credit losses | 189 | 165 |
Operating and administrative | 440 | 448 |
Voluntary protection contract expenses and insurance losses | 159 | 146 |
Total expenses | 788 | 759 |
Income before income taxes | 462 | 524 |
Provision for income taxes | 105 | 132 |
Net income | $ 357 | $ 392 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 357 | $ 392 |
Other comprehensive income, net of tax | ||
Net unrealized losses on available-for-sale debt securities [net of tax benefit of $1 and $2, respectively] | (5) | (8) |
Reclassification of net losses realized on available-for-sale debt securities included in investment and other income, net [net of tax provision of $0 and $0, respectively] | 3 | 0 |
Other comprehensive loss | (2) | (8) |
Comprehensive income | $ 355 | $ 384 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized losses on available-for-sale debt securities, tax benefit | $ 1 | $ 2 |
Reclassification adjustment for net (losses) gains on available-for-sale marketable securities included in investment and other income, tax provision | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
ASSETS | ||
Cash and cash equivalents | $ 5,967 | $ 8,570 |
Restricted cash and cash equivalents | 2,026 | 2,251 |
Investments in marketable securities | 4,541 | 4,505 |
Finance receivables, net of allowance for credit losses of $1,653 and $1,637, respectively | 103,449 | 101,669 |
Investments in operating leases, net | 28,341 | 28,013 |
Other assets | 4,314 | 4,373 |
Total assets | 148,638 | 149,381 |
LIABILITIES AND SHAREHOLDER'S EQUITY | ||
Debt | 121,106 | 122,420 |
Deferred income taxes | 2,948 | 3,272 |
Other liabilities | 7,247 | 6,707 |
Total liabilities | 131,301 | 132,399 |
Commitments and contingencies (Refer to Note 9) | ||
Shareholder's equity: | ||
Capital stock, no par value (100,000 shares authorized; 91,500 issued and outstanding) at June 30, 2024 and March 31, 2024 | 915 | 915 |
Additional paid-in capital | 2 | 2 |
Accumulated other comprehensive loss | (67) | (65) |
Retained earnings | 16,487 | 16,130 |
Total shareholder's equity | 17,337 | 16,982 |
Total liabilities and shareholder's equity | $ 148,638 | $ 149,381 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Statement of Financial Position [Abstract] | ||
Finance receivables, allowance for credit losses | $ 1,653 | $ 1,637 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Common Stock, Shares Authorized | 100,000 | 100,000 |
Common Stock, Shares, Issued | 91,500 | 91,500 |
Common Stock, Shares, Outstanding | 91,500 | 91,500 |
Consolidated Balance Sheets (Su
Consolidated Balance Sheets (Supplemental) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
ASSETS | ||
Notes receivable | $ 103,449 | $ 101,669 |
Investments in operating leases, net | 28,341 | 28,013 |
Other assets | 4,314 | 4,373 |
Total assets | 148,638 | 149,381 |
LIABILITIES | ||
Debt | 121,106 | 122,420 |
Other liabilities | 7,247 | 6,707 |
Total liabilities | 131,301 | 132,399 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Notes receivable | 29,568 | 31,130 |
Investments in operating leases, net | 9,254 | 10,274 |
Other assets | 148 | 142 |
Total assets | 38,970 | 41,546 |
LIABILITIES | ||
Debt | 31,960 | 34,337 |
Other liabilities | 56 | 66 |
Total liabilities | $ 32,016 | $ 34,403 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Millions | Total | Capital stock | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings |
Balance at Mar. 31, 2023 | $ 16,509 | $ 915 | $ 2 | $ (57) | $ 15,649 |
Net income | 392 | 0 | 0 | 392 | |
Other comprehensive loss, net of tax | (8) | 0 | 0 | (8) | 0 |
Balance at Jun. 30, 2023 | 16,893 | 915 | 2 | (65) | 16,041 |
Balance at Mar. 31, 2024 | 16,982 | 915 | 2 | (65) | 16,130 |
Net income | 357 | 0 | 0 | 0 | 357 |
Other comprehensive loss, net of tax | (2) | 0 | 0 | (2) | 0 |
Balance at Jun. 30, 2024 | $ 17,337 | $ 915 | $ 2 | $ (67) | $ 16,487 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 357 | $ 392 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,053 | 1,170 |
Recognition of deferred income and fees | (359) | (411) |
Provision for credit losses | 189 | 165 |
Amortization of deferred costs | 261 | 260 |
Foreign currency and other adjustments to the carrying value of financial instruments, net | 32 | 116 |
Net losses from investments in marketable securities | 1 | 0 |
Net change in: | ||
Derivative assets | 0 | (1) |
Other assets and accrued interest | (51) | 191 |
Deferred income taxes | (323) | (283) |
Derivative liabilities | (4) | (16) |
Other liabilities | 667 | 257 |
Net cash provided by operating activities | 1,823 | 1,840 |
Cash flows from investing activities: | ||
Purchase of investments in marketable securities | (179) | (305) |
Proceeds from sales of investments in marketable securities | 103 | 243 |
Proceeds from maturities of investments in marketable securities | 37 | 29 |
Acquisition of finance receivables | (14,383) | (13,187) |
Collection of finance receivables | 12,291 | 10,668 |
Net change in certain wholesale receivables | 164 | (510) |
Acquisition of investments in operating leases | (4,762) | (3,138) |
Proceeds from disposals of investments in operating leases | 3,377 | 2,931 |
Long term loans to affiliates | 0 | (420) |
Payments on long term loans from affiliates | 0 | 369 |
Net change in financing support provided to affiliates | 52 | 6 |
Other, net | (14) | (14) |
Net cash used in investing activities | (3,314) | (3,328) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 9,639 | 7,475 |
Payments on debt | (10,898) | (6,857) |
Net change in commercial paper and other short-term financing | (78) | (36) |
Net cash (used in) provided by financing activities | (1,337) | 582 |
Net decrease in cash and cash equivalents and restricted cash and cash equivalents | (2,828) | (906) |
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period | 10,821 | 8,488 |
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period | 7,993 | 7,582 |
Supplemental disclosures: | ||
Interest paid, net | 1,105 | 994 |
Income taxes received, net | $ (8) | $ (49) |
Interim Financial Data
Interim Financial Data | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Interim Financial Data | N ote 1 – Interim Financial Data Basis of Presentation The information furnished in these unaudited interim consolidated financial statements as of and for the three months ended June 30, 2024 and 2023 has been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). In the fourth quarter of fiscal 2024, we changed our accounting method for investment tax credits from the flow-through method to the deferral method. As such, we have retrospectively applied the impact of the accounting method change to conform certain prior period amounts to current period presentation. Refer to Note 1 – Basis of Presentation and Significant Accounting Policies and Note 15 - Selected Quarterly Financial Data (unaudited) in our fiscal 2024 Form 10-K for additional information. In the opinion of management, the unaudited consolidated financial information reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The results of operations for the three months ended June 30, 2024, do not necessarily indicate the results which may be expected for the full fiscal year ending March 31, 2025 (“fiscal 2025”). These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in Toyota Motor Credit Corporation’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended March 31, 2024 (“fiscal 2024 ”), which was filed with the Securities and Exchange Commission on June 4, 2024. References herein to “TMCC” denote Toyota Motor Credit Corporation, and references herein to “we”, “our”, and “us” denote Toyota Motor Credit Corporation and its consolidated subsidiaries. Recently Adopted Accounting Guidance There were no new accounting pronouncements adopted in the first quarter of fiscal 2025 . Accounting Guidance Issued But Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) , to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for us on March 31, 2025, with early adoption permitted. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) , requiring more granular disclosure of the components of income taxes. This ASU is effective for us on March 31, 2026, with early adoption permitted. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. |
Investments in Marketable Secur
Investments in Marketable Securities | 3 Months Ended |
Jun. 30, 2024 | |
Marketable Securities [Abstract] | |
Investments in Marketable Securities | Note 2 – Investments in Marketable Securities Investments in marketable securities consist of debt securities and equity investments. We classify all of our debt securities as available-for-sale (“AFS”). Except when the fair value option is elected, AFS debt securities are recorded at fair value with unrealized gains or losses included in accumulated other comprehensive income (“AOCI”), net of applicable taxes. Interest income is recognized on an accrual basis and determined using the effective interest method. Realized gains and losses from sales of AFS debt securities are determined using the specific identification method or first in first out method. Dividend income, interest income, and realized gains and losses from the sales of AFS debt securities are included in Investment and other income, net in our Consolidated Statements of Income. We elected the fair value option for certain debt securities held within one of our investment portfolios for operational ease given the size and composition of this portfolio. All debt securities within this specific portfolio are recorded at fair value with changes in fair value included in Investment and other income, net in our Consolidated Statements of Income. AFS debt securities for which the fair value option is elected are not subject to credit loss impairment evaluation. As of June 30, 2024 and March 31, 2024, we held AFS debt securities for which the fair value option was elected of $ 762 million and $ 778 million , respectively. The difference between the aggregate fair value and the aggregate unpaid principal balance of AFS debt securities for which the fair value option was elected was an unrealized loss of $ 75 million and $ 70 million as of June 30, 2024 and March 31, 2024, respectively. All equity investments are recorded at fair value with changes in fair value included in Investment and other income, net in our Consolidated Statements of Income. Realized gains and losses from sales of equity investments are determined using the first in first out method and are included in Investment and other income, net in our Consolidated Statements of Income. Investments in marketable securities consisted of the following: June 30, 2024 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 811 $ 1 $ ( 96 ) $ 716 Foreign government and agency obligations 16 - ( 1 ) 15 Municipal debt securities 8 - - 8 Corporate debt securities 463 2 ( 50 ) 415 Mortgage-backed securities: U.S. government agency 120 - ( 6 ) 114 Non-agency residential 12 - ( 2 ) 10 Non-agency commercial 57 - ( 6 ) 51 Asset-backed securities 127 1 ( 4 ) 124 Total available-for-sale debt securities $ 1,614 $ 4 $ ( 165 ) $ 1,453 Equity investments 3,088 Total investments in marketable securities $ 4,541 Note 2 – Investments in Marketable Securities (Continued) March 31, 2024 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 783 $ 1 $ ( 87 ) $ 697 Foreign government and agency obligations 13 - ( 1 ) 12 Municipal debt securities 8 - ( 1 ) 7 Corporate debt securities 477 2 ( 49 ) 430 Mortgage-backed securities: U.S. government agency 123 - ( 5 ) 118 Non-agency residential 12 - ( 1 ) 11 Non-agency commercial 64 - ( 9 ) 55 Asset-backed securities 142 1 ( 5 ) 138 Total available-for-sale debt securities $ 1,622 $ 4 $ ( 158 ) $ 1,468 Equity investments 3,037 Total investments in marketable securities $ 4,505 A portion of our equity investments are investments in funds that are privately placed and managed by an open-end investment management company (the “Trust”). If we elect to redeem shares, the Trust will normally redeem all shares for cash, but may, in unusual circumstances, redeem amounts exceeding the lesser of $ 250 thousand or 1 percent of the Trust’s asset value by payment in kind of securities held by the respective fund during any 90 -day period. We also invest in actively traded open-end mutual funds. Redemptions are subject to normal terms and conditions as described in each fund’s prospectus. Unrealized Losses on Securities The following table presents the aggregate fair value and unrealized losses on AFS debt securities in a continuous unrealized loss position: June 30, 2024 Less than 12 months 12 months or longer Total Available-for-sale debt securities: Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses U.S. government and agency obligations $ 43 $ ( 1 ) $ 601 $ ( 95 ) $ 644 $ ( 96 ) Foreign government and agency obligations 2 - 8 ( 1 ) 10 ( 1 ) Municipal debt securities - - 2 - 2 - Corporate debt securities 35 ( 1 ) 325 ( 49 ) 360 ( 50 ) Mortgage-backed securities U.S. Government agency 27 ( 1 ) 70 ( 5 ) 97 ( 6 ) Non-agency residential - - 7 ( 2 ) 7 ( 2 ) Non-agency commercial - - 50 ( 6 ) 50 ( 6 ) Asset-backed securities 5 - 55 ( 4 ) 60 ( 4 ) Total available-for-sale debt securities $ 112 $ ( 3 ) $ 1,118 $ ( 162 ) $ 1,230 $ ( 165 ) Note 2 – Investments in Marketable Securities (Continued) March 31, 2024 Less than 12 months 12 months or longer Total Available-for-sale debt securities: Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses U.S. government and agency obligations $ 317 $ ( 13 ) $ 336 $ ( 74 ) $ 653 $ ( 87 ) Foreign government and agency obligations 1 - 8 ( 1 ) 9 ( 1 ) Municipal debt securities - - 2 ( 1 ) 2 ( 1 ) Corporate debt securities 31 ( 3 ) 339 ( 46 ) 370 ( 49 ) Mortgage-backed securities U.S. Government agency 51 ( 1 ) 49 ( 4 ) 100 ( 5 ) Non-agency residential 1 - 7 ( 1 ) 8 ( 1 ) Non-agency commercial 1 - 53 ( 9 ) 54 ( 9 ) Asset-backed securities 17 - 58 ( 5 ) 75 ( 5 ) Total available-for-sale debt securities $ 419 $ ( 17 ) $ 852 $ ( 141 ) $ 1,271 $ ( 158 ) An allowance for credit losses is established when it is determined that a credit loss has occurred. As of June 30, 2024 and March 31, 2024, management determined credit losses for securities in an unrealized loss position were not significant. This analysis considered a variety of factors including, but not limited to, performance indicators of the issuer, default rates, industry analyst reports, credit ratings, and other relevant information. Gains and Losses on Securities The following table represents gains and losses on our investments in marketable securities presented in our Consolidated Statements of Income: Three months ended June 30, 2024 2023 Available-for-sale debt securities: Unrealized losses on securities for which the fair value option was elected $ ( 5 ) $ ( 12 ) Realized losses on sales, net $ ( 4 ) $ - Equity investments: Unrealized gains $ 14 $ 12 Realized losses on sales, net $ ( 6 ) $ - Contractual Maturities The amortized cost and fair value by contractual maturities of available-for-sale debt securities are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations. June 30, 2024 Amortized c ost Fair value Available-for-sale debt securities: Due within 1 year $ 58 $ 57 Due after 1 year through 5 years 294 280 Due after 5 years through 10 years 479 447 Due after 10 years 467 370 Mortgage-backed and asset-backed securities 1 316 299 Total $ 1,614 $ 1,453 1. Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities have multiple maturity dates. |
Finance Receivables, Net
Finance Receivables, Net | 3 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Finance Receivables, Net | Note 3 – Finance Receivables, Net Finance receivables, net consists of the retail loan and dealer products portfolio segments, and includes deferred origination costs, deferred income, and allowance for credit losses. Finance receivables, net also includes securitized retail receivables, which represent retail receivables that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements, as discussed further in Note 8 – Variable Interest Entities . Cash flows from these securitized retail receivables are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. Finance receivables, net consisted of the following: June 30, March 31, 2024 2024 Retail receivables 1 $ 88,676 $ 87,150 Dealer financing 16,574 16,181 105,250 103,331 Deferred origination costs 1,387 1,399 Deferred income ( 1,535 ) ( 1,424 ) Allowance for credit losses Retail receivables ( 1,559 ) ( 1,549 ) Dealer financing ( 94 ) ( 88 ) Total allowance for credit losses ( 1,653 ) ( 1,637 ) Finance receivables, net $ 103,449 $ 101,669 1 Includes gross securitized retail receivables of $ 29.9 billion and $ 31.5 billion as of June 30, 2024 and March 31, 2024 , respectively. Accrued interest related to finance receivables is presented in Other assets on the Consolidated Balance Sheets and was $ 403 million and $ 396 million at June 30, 2024 and March 31, 2024, respectively. Note 3 – Finance Receivables, Net (Continued) Credit Quality Indicators We are exposed to credit risk on our finance receivables. Credit risk is the risk of loss arising from the failure of customers or dealers to meet the terms of their contracts with us or otherwise fail to perform as agreed. Retail Loan Portfolio Segment The retail loan portfolio segment consists of one class of finance receivables. While we use various credit quality metrics to develop our allowance for credit losses on the retail loan portfolio segment, we primarily utilize the aging of the individual accounts to monitor the credit quality of these finance receivables. Based on our experience, the payment status of borrowers is the strongest indicator of the credit quality of the underlying receivables. Payment status also impacts charge-offs. Individual borrower accounts within the retail loan portfolio segment are segregated into aging categories based on the number of days past due. The aging of finance receivables is updated monthly. The following tables present the amortized cost basis of our retail loan portfolio by origination fiscal year by credit quality indicator based on number of days past due: Amortized Cost Basis by Origination Fiscal Year at June 30, 2024 2025 2024 2023 2022 2021 2020 and Prior Total Aging of finance receivables: Current $ 9,847 $ 32,739 $ 20,203 $ 13,348 $ 7,288 $ 2,560 $ 85,985 30-59 days past due 21 420 518 433 236 124 1,752 60-89 days past due - 133 177 141 77 44 572 90 days or greater past due - 51 71 51 26 20 219 Total $ 9,868 $ 33,343 $ 20,969 $ 13,973 $ 7,627 $ 2,748 $ 88,528 Gross Charge-Offs $ - $ 43 $ 74 $ 50 $ 20 $ 11 $ 198 Amortized Cost Basis by Origination Fiscal Year at March 31, 2024 2024 2023 2022 2021 2020 2019 and Prior Total Aging of finance receivables: Current $ 35,407 $ 22,473 $ 15,041 $ 8,539 $ 2,654 $ 748 $ 84,862 30-59 days past due 301 488 426 242 92 53 1,602 60-89 days past due 77 143 119 68 27 17 451 90 days or greater past due 38 69 53 29 10 11 210 Total $ 35,823 $ 23,173 $ 15,639 $ 8,878 $ 2,783 $ 829 $ 87,125 Gross Charge-Offs $ 38 $ 297 $ 258 $ 111 $ 38 $ 34 $ 776 The amortized cost of retail loan portfolio excludes accrued interest of $ 328 million and $ 318 million at June 30, 2024 and March 31, 2024, respectively. The preceding tables include contracts greater than 120 days past due, which are recorded at the fair value of collateral less estimated costs to sell, and contracts in bankruptcy. Note 3 – Finance Receivables, Net (Continued) Dealer Products Portfolio Segment The dealer products portfolio segment consists of three classes of finance receivables: wholesale, real estate, and working capital (includes both working capital and revolving lines of credit). All loans outstanding for an individual dealer or dealer group, which includes affiliated entities, are aggregated and evaluated collectively by dealer or dealer group. This reflects the interconnected nature of financing provided to our individual dealer and dealer group customers, and their affiliated entities. When assessing the credit quality of the finance receivables within the dealer products portfolio segment, we segregate the finance receivables account balances into four categories representing distinct credit quality indicators based on internal risk assessments. The internal risk assessments for all finance receivables within the dealer products portfolio segment are updated on a monthly basis. The four credit quality indicators are: • Performing – Account not classified as either Credit Watch, At Risk or Default; • Credit Watch – Account designated for elevated attention; • At Risk – Account where there is an increased likelihood that default may exist based on qualitative and quantitative factors; and • Default – Account is not currently meeting contractual obligations or we have temporarily waived certain contractual requirements. The following tables present the amortized cost basis of our dealer products portfolio by credit quality indicator based on internal risk assessments by origination fiscal year: Amortized Cost Basis by Origination Fiscal Year at June 30, 2024 2025 2024 2023 2022 2021 2020 and Prior Revolving loans Total Wholesale Performing $ - $ - $ - $ - $ - $ - $ 6,183 $ 6,183 Credit Watch - - - - - - 290 290 At Risk - - - - - - 99 99 Default - - - - - - 36 36 Wholesale total $ - $ - $ - $ - $ - $ - $ 6,608 $ 6,608 Real estate Performing $ 397 $ 1,115 $ 901 $ 755 $ 811 $ 828 $ 81 $ 4,888 Credit Watch 55 60 - 21 14 6 - 156 At Risk - 9 - 7 - 2 - 18 Default 5 - 2 - 24 - - 31 Real estate total $ 457 $ 1,184 $ 903 $ 783 $ 849 $ 836 $ 81 $ 5,093 Working Capital Performing $ 247 $ 702 $ 292 $ 222 $ 116 $ 256 $ 2,973 $ 4,808 Credit Watch 10 14 15 6 - - 3 48 At Risk - - 3 - - - 1 4 Default - - - - 13 - - 13 Working capital total $ 257 $ 716 $ 310 $ 228 $ 129 $ 256 $ 2,977 $ 4,873 Total $ 714 $ 1,900 $ 1,213 $ 1,011 $ 978 $ 1,092 $ 9,666 $ 16,574 For the three months ended June 30, 2024 , there were no gross charge-offs in our dealer product portfolio. Note 3 – Finance Receivables, Net (Continued) Amortized Cost Basis by Origination Fiscal Year at March 31, 2024 2024 2023 2022 2021 2020 2019 and Prior Revolving loans Total Wholesale Performing $ - $ - $ - $ - $ - $ - $ 6,287 $ 6,287 Credit Watch - - - - - - 238 238 At Risk - - - - - - 112 112 Default - - - - - - 36 36 Wholesale total $ - $ - $ - $ - $ - $ - $ 6,673 $ 6,673 Real estate Performing $ 1,224 $ 883 $ 815 $ 860 $ 128 $ 784 $ 3 $ 4,697 Credit Watch 58 37 44 6 - - - 145 At Risk 8 1 10 - - 2 - 21 Default 4 2 - 25 - - - 31 Real estate total $ 1,294 $ 923 $ 869 $ 891 $ 128 $ 786 $ 3 $ 4,894 Working Capital Performing $ 769 $ 414 $ 235 $ 122 $ 105 $ 159 $ 2,715 $ 4,519 Credit Watch 20 41 13 - - - 2 76 At Risk - 3 - - 2 - 1 6 Default - - - 13 - - - 13 Working capital total $ 789 $ 458 $ 248 $ 135 $ 107 $ 159 $ 2,718 $ 4,614 Total $ 2,083 $ 1,381 $ 1,117 $ 1,026 $ 235 $ 945 $ 9,394 $ 16,181 For the twelve months ended March 31, 2024 , there were no gross charge-offs in our dealer product portfolio. The amortized cost of the dealer products portfolio excludes accrued interest of $ 75 million and $ 78 million at June 30, 2024 and March 31, 2024, respectively. As of June 30, 2024 and March 31, 2024, the amount of line-of-credit arrangements that are converted to term loans in each reporting period was not significant, respectively. Note 3 – Finance Receivables, Net (Continued) Past Due Finance Receivables by Class Substantially all finance receivables do not involve recourse to the dealer in the event of customer default. Finance receivables include contracts greater than 120 days past due, which are recorded at the fair value of collateral less estimated costs to sell, and contracts in bankruptcy. Contracts for which vehicles have been repossessed are excluded. For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 30 days past the contractual due date. For any customer who is granted a payment extension under an extension program, the aging of the receivable is adjusted for the number of days of the extension granted. The following tables present the aging of the amortized cost basis of our finance receivables by class: June 30, 2024 30 - 59 Days 60 - 89 Days 90 Days or Total Past Current Total Finance 90 Days or greater past due and accruing Retail loan $ 1,752 $ 572 $ 219 $ 2,543 $ 85,985 $ 88,528 $ 159 Wholesale - - - - 6,608 6,608 - Real estate - - - - 5,093 5,093 - Working capital - - - - 4,873 4,873 - Total $ 1,752 $ 572 $ 219 $ 2,543 $ 102,559 $ 105,102 $ 159 March 31, 2024 30 - 59 Days 60 - 89 Days 90 Days or Total Past Current Total Finance 90 Days or greater past due and accruing Retail loan $ 1,602 $ 451 $ 210 $ 2,263 $ 84,862 $ 87,125 $ 142 Wholesale - - - - 6,673 6,673 - Real estate - - - - 4,894 4,894 - Working capital - - - - 4,614 4,614 - Total $ 1,602 $ 451 $ 210 $ 2,263 $ 101,043 $ 103,306 $ 142 Loan Modifications Under certain circumstances, we may agree to modify the terms of an existing loan with a borrower for various reasons, including a borrower experiencing financial difficulties. We evaluate all loan modifications, which generally represent a continuation of the existing loan and not a new loan. For borrowers experiencing financial difficulties within the retail loan portfolio segment, we may provide contract term extensions. For borrowers experiencing financial difficulties within the dealer product portfolio segment, we may provide contract term extensions, interest rate adjustments, waivers of loan covenants, or any combination of the three. The effect of these modifications is already included in the allowance for credit losses because our estimated allowance represents currently expected credit losses. The amortized cost at June 30, 2024 and 2023 of the loans modified during the three months ended June 30, 2024 and 2023 were not significant. The unpaid principal balances, net of recoveries, of loans charged off during the reporting period that were modified within 12 months preceding default were not significant for the three months ended June 30, 2024 and 2023 . |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Jun. 30, 2024 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses | Note 4 – Allowance for Credit Losses The following tables provide information related to our allowance for credit losses for finance receivables and certain off-balance sheet lending commitments by portfolio segment: Three months ended June 30, 2024 Retail loan Dealer p roducts Total Beginning balance, April 1, 2024 $ 1,549 $ 135 $ 1,684 Charge-offs ( 198 ) - ( 198 ) Recoveries 30 - 30 Provision for credit losses 178 11 189 Ending balance, June 30, 2024 ¹ $ 1,559 $ 146 $ 1,705 1 Ending balance includes $ 52 million of allowance for credit losses recorded in Other liabilities on the Consolidated Balance Sheet which is related to off-balance sheet lending commitments in the dealer products portfolio. Three months ended June 30, 2023 Retail loan Dealer p roducts Total Beginning balance, April 1, 2023 $ 1,430 $ 83 $ 1,513 Charge-offs ( 134 ) - ( 134 ) Recoveries 29 - 29 Provision for credit losses 158 7 165 Ending balance, June 30, 2023 ¹ $ 1,483 $ 90 $ 1,573 1 Ending balance includes $ 28 million of allowance for credit losses recorded in Other liabilities on the Consolidated Balance Sheet which is related to off-balance sheet lending commitments in the dealer products portfolio. We have elected to exclude accrued interest from the measurement of expected credit losses as we apply policies and procedures that result in the timely write-offs of accrued interest. Accrued interest is written off within allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is greater than 120 days past due. Finance receivables for the dealer products portfolio segment as of June 30, 2024, includes $ 1.3 billion in finance receivables that are guaranteed by Toyota Motor North America, Inc. (“TMNA”), and $ 245 million in finance receivables that are guaranteed by third-party private Toyota distributors. Finance receivables for the dealer products portfolio segment as of June 30, 2023, includes $ 1.1 billion in finance receivables that are guaranteed by TMNA, and $ 199 million in finance receivables that are guaranteed by third-party private Toyota distributors. These finance receivables are related to certain Toyota and Lexus dealers and other third parties to whom we provided financing at the request of TMNA and third-party private Toyota distributors. |
Investments in Operating Leases
Investments in Operating Leases, Net | 3 Months Ended |
Jun. 30, 2024 | |
Leases, Operating [Abstract] | |
Investments in Operating Leases, Net | Note 5 – Investments in Operating Leases, Net Investments in operating leases, net consists of vehicle lease contracts acquired from dealers, and includes deferred origination fees and costs, deferred income, investment tax credits, and accumulated depreciation. Non-cash investing activities related to investment tax credits on investments in operating leases for three months ended June 30, 2024 and 2023 were $ 157 million and $ 20 million, respectively. Securitized investments in operating leases represent beneficial interests in a pool of certain vehicle leases that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements as discussed further in Note 8 - Variable Interest Entities . Cash flows from these securitized investments in operating leases are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. Investments in operating leases, net consisted of the following: June 30, March 31, 2024 2024 Investments in operating leases 1 $ 35,227 $ 35,383 Deferred income ( 735 ) ( 609 ) Accumulated depreciation ( 6,151 ) ( 6,761 ) Investments in operating leases, net $ 28,341 $ 28,013 1 Includes gross securitized investments in operating leases of $ 12.4 billion and $ 13.8 billion as of June 30, 2024 and March 31, 2024 , respectively. |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Interest Expense | 3 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Activities and Interest Expense | Note 6 – Derivatives, Hedging Activities and Interest Expense Derivative Instruments Our liabilities consist mainly of fixed and variable rate debt, denominated in U.S. dollars and various other currencies, which we issue in the global capital markets, while our assets consist primarily of U.S. dollar denominated, fixed rate receivables. We enter into interest rate swaps, and foreign currency swaps to economically hedge the interest rate and foreign currency risks that result from the different characteristics of our assets and liabilities. Our use of derivative transactions is intended to reduce long-term fluctuations in the fair value of assets and liabilities caused by market movements. All of our derivatives are categorized as not designated for hedge accounting, and all of our derivative activities are authorized and monitored by our management and our Asset-Liability Committee which provides a framework for financial controls and governance to manage market risk. All derivative instruments are recorded on the balance sheet at fair value, taking into consideration the effects of legally enforceable master netting agreements that allow us to net settle asset and liability positions and offset cash collateral with the same counterparty on a net basis. Changes in the fair value of our derivative instruments are recorded in Interest expense in our Consolidated Statements of Income. The derivative instruments are included as a component of Other assets or Other liabilities on our Consolidated Balance Sheets. Offsetting of Derivatives Accounting guidance permits the net presentation on our Consolidated Balance Sheets of derivative receivables and derivative payables with the same counterparty and the related cash collateral when a legally enforceable master netting agreement exists, or when the derivative receivables and derivative payables meet all the conditions for the right of setoff to exist. When we meet this condition, we elect to present such balances on a net basis. Over-the-Counter (“OTC”) Derivatives Our International Swaps and Derivatives Association Master Agreements are our master netting agreements which permit multiple transactions to be cancelled and settled with a single net balance paid to either party for our OTC derivatives. The master netting agreements also contain reciprocal collateral agreements which require the transfer of cash collateral to the party in a net asset position across all transactions. Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization arrangement. Although we have daily valuation and collateral exchange arrangements with all of our counterparties, due to the time required to move collateral, there may be a delay of up to one day between the exchange of collateral and the valuation of our derivatives. We would not be required to post additional collateral to the counterparties with whom we were in a net liability position at June 30, 2024 , if our credit ratings were to decline, since we fully collateralize without regard to credit ratings with these counterparties. In addition, as our collateral agreements include legal right of offset provisions, collateral amounts are netted against derivative assets or derivative liabilities, and the net amount is included in Other assets or Other liabilities on our Consolidated Balance Sheets. Centrally Cleared Derivatives For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments and accounted for with corresponding derivative positions as one unit of account as opposed to collateral. Initial margin payments are separately recorded in Other assets on our Consolidated Balance Sheets. We perform valuation and margin exchange on a daily basis. Similar to the OTC swaps, there may be a delay of up to one day between the exchange of margin payments and the valuation of our derivatives. Note 6 – Derivatives, Hedging Activities and Interest Expense (Continued) Derivative Activity Impact on Consolidated Financial Statements The following tables show the financial statement line item and amount of our derivative assets and liabilities that are reported on our Consolidated Balance Sheets: June 30, 2024 March 31, 2024 Fair Fair Notional value Notional value Other assets: Interest rate swaps $ 75,080 $ 994 $ 71,830 $ 1,149 Foreign currency swaps 1,759 91 1,759 89 Total $ 76,839 $ 1,085 $ 73,589 $ 1,238 Counterparty netting ( 341 ) ( 346 ) Collateral held ( 703 ) ( 851 ) Carrying value of derivative contracts – Other assets $ 41 $ 41 Other liabilities: Interest rate swaps $ 35,475 $ 99 $ 38,920 $ 52 Foreign currency swaps 7,433 888 7,433 918 Total $ 42,908 $ 987 $ 46,353 $ 970 Counterparty netting ( 341 ) ( 346 ) Collateral posted ( 627 ) ( 601 ) Carrying value of derivative contracts – Other liabilities $ 19 $ 23 As of June 30, 2024 and March 31, 2024, we held excess collateral and variation margin of $ 1 million and $ 5 million, respectively, which we did not use to offset derivative assets and was recorded in Other liabilities on our Consolidated Balance Sheets. As of June 30, 2024 and March 31, 2024, we posted initial margin, excess collateral, and variation margin of $ 304 million and $ 311 million, respectively, which we did not use to offset derivative liabilities and was recorded in Other assets on our Consolidated Balance Sheets. The following table summarizes the components of interest expense, including the location and amount of gains and losses on derivative instruments and related hedged items, as reported in our Consolidated Statements of Income: Three months ended June 30, 2024 2023 Interest expense on debt $ 1,405 $ 1,087 Interest income on derivatives ( 58 ) ( 209 ) Interest expense on debt and derivatives 1,347 878 Losses on debt denominated in 20 36 Losses on foreign currency swaps 7 44 Losses (gains) on U.S. dollar interest rate swaps 69 ( 59 ) Total interest expense $ 1,443 $ 899 Interest expense on debt and derivatives represents net interest settlements and changes in accruals. Gains and losses on derivatives and debt denominated in foreign currencies exclude net interest settlements and changes in accruals. Cash flows associated with derivatives are reported in Net cash provided by operating activities in our Consolidated Statements of Cash Flows. |
Debt and Credit Facilities
Debt and Credit Facilities | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Note 7 – Debt and Credit Facilities Debt and the related weighted average contractual interest rates are summarized as follows: June 30, 2024 March 31, 2024 Face value Carrying value Weighted average Face value Carrying value Weighted average Unsecured notes and loans payable $ 89,635 $ 89,146 4.25 % $ 88,576 $ 88,083 4.19 % Secured notes and loans payable 32,015 31,960 4.75 % 34,387 34,337 4.64 % Total debt $ 121,650 $ 121,106 4.38 % $ 122,963 $ 122,420 4.32 % The carrying value of our debt includes unamortized premiums, discounts, debt issuance costs and the effects of foreign currency translation adjustments. Weighted average contractual interest rates are calculated based on original notional or par value before consideration of premium or discount and approximate the effective interest rates. Debt is callable at par value. Unsecured Notes and Loans Payable Our unsecured notes and loans payable consist of commercial paper and fixed and variable rate debt. Short-term funding needs are met through the issuance of commercial paper in the U.S. Amount outstanding under our commercial paper programs was $ 17.2 billion as of June 30, 2024 and March 31, 2024. Upon issuance of fixed rate debt, we generally elect to enter into pay-float swaps to convert fixed rate payments on debt to floating rate payments. Certain unsecured notes and loans payable are denominated in various foreign currencies. The debt is translated into U.S. dollars using the applicable exchange rate at the transaction date and retranslated at each balance sheet date using the exchange rate in effect at that date. Concurrent with the issuance of these foreign currency unsecured notes and loans payable, we enter into currency swaps in the same notional amount to convert non-U.S. currency payments to U.S. dollar denominated payments. Gains and losses related to foreign currency transactions are included in Interest expense in our Consolidated Statements of Income. Certain of our unsecured notes and loans payable contain covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets. We are currently in compliance with these covenants and conditions. Secured Notes and Loans Payable Our secured notes and loans payable are denominated in U.S. dollars and consist of both fixed and variable rate debt. Secured notes and loans payable are issued using on-balance sheet securitization trusts, as further discussed in Note 8 – Variable Interest Entities . These notes are repayable only from collections on the underlying securitized retail finance receivables and the beneficial interests in investments in operating leases and from related credit enhancements. Some of our secured notes are backed by a revolving pool of finance receivables and cash collateral, with the ability to repay the notes in full after the revolving period ends, after which an amortization period begins. Note 7 – Debt and Credit Facilities (Continued) Credit Facilities and Letters of Credit For additional liquidity purposes, we maintain credit facilities, which may be used for general corporate purposes, as described below: 364-Day Credit Agreement, Three-Year Credit Agreement and Five-Year Credit Agreement TMCC, Toyota Credit de Puerto Rico Corp. (“TCPR”), a wholly owned subsidiary, and other Toyota affiliates are party to a $ 5.0 billion 364-day syndicated bank credit facility, a $ 5.0 billion three-year syndicated bank credit facility, and a $ 5.0 billion five-year syndicated bank credit facility, expiring in fiscal years ending March 31, 2025, 2027, and 2029, respectively. The ability to make draws is subject to covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets. These agreements were no t drawn upon and had no outstanding balances as of June 30, 2024 and March 31, 2024. We are currently in compliance with the covenants and conditions of the credit agreements described above. Committed Revolving Asset-backed Facility We are party to a 364-day revolving securitization facility with certain bank-sponsored asset-backed conduits and other financial institutions expiring in fiscal year ending March 31, 2026. Under the terms and subject to the conditions of this facility, the committed lenders under the facility have committed to make advances up to a facility limit of $ 8.5 billion backed by eligible retail finance receivables transferred by us to a special-purpose entity acting as borrower. We utilized $ 2.9 billion and $ 3.4 billion of this facility as of June 30, 2024 and March 31, 2024, respectively. Other Unsecured Credit Agreements TMCC is party to additional unsecured credit facilities with various banks. As of June 30, 2024, TMCC had committed bank credit facilities totaling $ 4.4 billion , of which $ 2.2 billion , $ 275 million , $ 1.7 billion , and $ 200 million mature in fiscal years ending March 31, 2025, 2026, 2027, and 2028, respectively. These credit agreements contain covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets. These credit facilities were no t drawn upon and had no outstanding balances as of June 30, 2024 and March 31, 2024. We are currently in compliance with the covenants and conditions of the credit agreements described above. TMCC is party to a $ 5.0 billion three-year revolving credit facility with Toyota Motor Sales U.S.A., Inc. expiring in fiscal year ending March 31, 2027 . This credit facility was no t drawn upon and had no outstanding balance as of June 30, 2024 and March 31, 2024. From time to time, we may borrow from affiliates based upon a number of business factors such as funds availability, cash flow timing, relative cost of funds, and market access capabilities. Amounts borrowed from affiliates are recorded in Other liabilities on our Consolidated Balance Sheets. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Jun. 30, 2024 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Note 8 – Variable Interest Entities We use one or more special purpose entities that are considered Variable Interest Entities (“VIEs”) to issue asset-backed securities to third-party bank-sponsored asset-backed securitization vehicles and to investors in securitization transactions. The securities issued by these VIEs are backed by the cash flows related to retail finance receivables and beneficial interests in investments in operating leases (“Securitized Assets”). We hold variable interests in the VIEs that could potentially be significant to the VIEs. We determined that we are the primary beneficiary of the securitization trusts because (i) our servicing responsibilities for the Securitized Assets give us the power to direct the activities that most significantly impact the performance of the VIEs, and (ii) our variable interests in the VIEs give us the obligation to absorb losses and the right to receive residual returns that could potentially be significant. The following tables show the assets and liabilities related to our VIE securitization transactions that are included on our Consolidated Balance Sheets: June 30, 2024 VIE Assets VIE Liabilities Restricted cash and cash equivalents Net securitized assets Other Debt Other Retail finance receivables $ 1,419 $ 29,568 $ 120 $ 25,801 $ 46 Investments in operating leases 607 9,254 28 6,159 10 Total $ 2,026 $ 38,822 $ 148 $ 31,960 $ 56 March 31, 2024 VIE Assets VIE Liabilities Restricted cash and cash equivalents Net securitized assets Other Debt Other Retail finance receivables $ 1,559 $ 31,130 $ 125 $ 27,351 $ 54 Investments in operating leases 692 10,274 17 6,986 12 Total $ 2,251 $ 41,404 $ 142 $ 34,337 $ 66 Restricted cash and cash equivalents shown in the preceding tables represent collections from the underlying Net securitized assets and certain reserve deposits held by TMCC for the VIEs and is included as part of Restricted cash and cash equivalents on our Consolidated Balance Sheets. Net securitized assets shown in the preceding tables are presented net of deferred fees and costs, deferred income, accumulated depreciation and allowance for credit losses. Other assets represent accrued interests related to securitized retail finance receivables and used vehicles held-for-sale that were repossessed by or returned to TMCC for the benefit of the VIEs. The related debt of these consolidated VIEs is presented net of $ 1.6 billion of securities retained by TMCC at June 30, 2024 and March 31, 2024, respectively. Other liabilities represent accrued interest on the debt of the consolidated VIEs. The assets of the VIEs and the restricted cash and cash equivalents held by TMCC serve as the sole source of repayment for the asset-backed securities issued by these entities. Investors in the notes issued by the VIEs do not have recourse to us or our other assets, with the exception of customary representation and warranty repurchase provisions and indemnities. As the primary beneficiary of these entities, we are exposed to credit, residual value, interest rate, and prepayment risk from the Securitized Assets in the VIEs. However, our exposure to these risks did not change as a result of the transfer of the assets to the VIEs. We may also be exposed to interest rate risk arising from the secured notes issued by the VIEs. In addition, we entered into interest rate swaps with certain special purpose entities that issue variable rate debt. Under the terms of these swaps, the special purpose entities are obligated to pay TMCC a fixed rate of interest on certain payment dates in exchange for receiving a floating rate of interest on notional amounts equal to the outstanding balance of the secured debt. This arrangement enables the special purpose entities to mitigate the interest rate risk inherent in issuing variable rate debt that is secured by fixed rate Securitized Assets. Note 8 – Variable Interest Entities (Continued) The transfers of the Securitized Assets to the special purpose entities in our securitizations are considered to be sales for legal purposes. However, the Securitized Assets and the related debt remain on our Consolidated Balance Sheets. We recognize financing revenue on the Securitized Assets and interest expense on the secured debt issued by the special purpose entities. We also maintain an allowance for credit losses on the securitized retail finance receivables using a methodology consistent with that used for our non-securitized asset portfolio. The interest rate swaps between TMCC and the special purpose entities are considered intercompany transactions and therefore are eliminated in our consolidated financial statements. Amounts due from non-consolidated variable interest entities at June 30, 2024 and March 31, 2024 and revenues earned from non-consolidated variable interest entities for three months ended June 30, 2024 and 2023 were not significant. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – Commitments and Contingencies Commitments and Guarantees We have entered into certain commitments and guarantees for which the maximum unfunded amounts are summarized in the table below: June 30, March 31, 2024 2024 Commitments: Credit facilities commitments with dealers $ 3,090 $ 3,244 Commitments under operating lease agreements 105 106 Total commitments 3,195 3,350 Guarantees of affiliate pollution control and solid waste disposal bonds 100 100 Total commitments and guarantees $ 3,295 $ 3,450 Wholesale financing is not considered to be a contractual commitment as the arrangements are not binding arrangements under which TMCC is required to perform. Commitments We provide fixed and variable rate working capital loans, revolving lines of credit, and real estate financing to dealers and various multi-franchise organizations referred to as dealer groups for facilities construction and refurbishment, working capital requirements, real estate purchases, business acquisitions and other general business purposes. These loans are typically secured with liens on real estate, vehicle inventory, and/or other dealership assets, as appropriate, and may be guaranteed by individual or corporate guarantees of affiliated dealers, dealer groups, or dealer principals. Although the loans are typically collateralized or guaranteed, the value of the underlying collateral or guarantees may not be sufficient to cover our exposure under such agreements. Our pricing reflects market conditions, the competitive environment, the level of support dealers provide our retail, lease and voluntary protection business and the creditworthiness of each dealer. Amounts drawn under these facilities are reviewed for collectability on a quarterly basis, in conjunction with our evaluation of the allowance for credit losses. In addition to the total commitments and guarantees in the preceding table, we have also extended credit facilities to affiliates as described in Note 12 – Related Party Transactions in our fiscal 2024 Form 10-K. Lease Commitments Our operating lease portfolio consists of real estate leases. We have a lease agreement through August 2032 with TMNA for our headquarters facility in Plano, Texas. Commitments under operating lease agreements in the preceding table include $ 60 million and $ 62 million for facilities leases with affiliates at June 30, 2024 and March 31, 2024, respectively. Lease terms may contain renewal and extension options or early termination features. Generally, these options do not impact the lease term because TMCC is not reasonably certain that it will exercise the options. These lease agreements do not impose restrictions on our ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements, nor do they have residual value guarantees. We exclude from our Consolidated Balance Sheets leases with a term equal to one year or less and do not separate non-lease components from our real estate leases. T otal operating lease expense, including payments to affiliates for the first quarter of fiscal 2025 and fiscal 2024 were not significant. Operating lease liabilities and right-of-use (“ROU”) assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. As the interest rate implicit in the lease contract is typically not readily determinable, we utilize our incremental borrowing rate at the lease commencement date for the duration of the lease term. As of June 30, 2024 and March 31, 2024 , operating lease liabilities and ROU assets related to our operating lease agreements for which we are the lessee were not significant. Note 9 – Commitments and Contingencies (Continued) Guarantees and Other Contingencies TMCC has guaranteed bond obligations totaling $ 100 million in principal that were issued by Putnam County, West Virginia and Gibson County, Indiana to finance the construction of pollution control facilities at manufacturing plants of certain TMCC affiliates. The bonds mature in the following fiscal years ending March 31: 2028 - $ 20 million; 2029 - $ 50 million; 2030 - $ 10 million; 2031 - $ 10 million; and 2032 - $ 10 million. TMCC would be required to perform under the guarantees in the event of non-payment on the bonds and other related obligations. TMCC is entitled to reimbursement by the applicable affiliates for any amounts paid. TMCC receives a nominal annual fee for guaranteeing such payments. TMCC has not been required to perform under any of these affiliate bond guarantees as of June 30, 2024 and March 31, 2024. Indemnification In the ordinary course of business, we enter into agreements containing indemnification provisions standard in the industry related to several types of transactions, including, but not limited to, debt funding, derivatives, securitization transactions, and our vendor, supplier and service agreements. Performance under these indemnities would generally occur upon a breach of the representations, warranties, covenants or other commitments made or given in the agreement, or as a result of a third-party claim. In addition, we have agreed in certain debt and derivative issuances, and subject to certain exceptions, to gross-up payments due to third parties in the event that withholding tax is imposed on such payments. In addition, certain of our funding arrangements may require us to pay lenders for increased costs due to certain changes in laws or regulations. Due to the difficulty in predicting events which could cause a breach of the indemnification provisions or trigger a gross-up or other payment obligation, we are not able to estimate our maximum exposure to future payments that could result from claims made under such provisions. We have not made any material payments in the past as a result of these provisions, and as of June 30, 2024, we determined that it is not probable that we will be required to make any material payments in the future. As of June 30, 2024 and March 31, 2024 , no amounts have been recorded under these indemnification provisions. L itigation and Governmental Proceedings Various legal actions, governmental proceedings and other claims are pending or may be instituted or asserted in the future against us with respect to matters arising in the ordinary course of business. Certain of these actions are or purport to be class action suits, seeking sizeable damages and/or changes in our business operations, policies and practices. Certain of these actions are similar to suits that have been filed against other financial institutions and captive finance companies. In addition, we are subject to governmental and regulatory examinations, information-gathering requests, and investigations from time to time at the state and federal levels. It is inherently difficult to predict the course of such legal actions and governmental inquiries. We perform periodic reviews of pending claims and actions to determine the probability of adverse verdicts and resulting amounts of liability. We establish accruals for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. When we are able, we also determine estimates of reasonable possibility of loss or range of loss, whether in excess of any related accrued liability or where there is no accrued liability. Given the inherent uncertainty associated with legal matters, the actual costs of resolving legal claims and associated costs of defense may be substantially higher or lower than the amounts for which accruals have been established. Based on available information and established accruals, we do not believe it is reasonably probable that the results of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial condition or results of operations. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 1 0 – Income Taxes Our provision for income taxes was $ 105 million for the three months ended June 30, 2024, compared to $ 132 million for the same period in fiscal 2024. Our effective tax rate was 23 percent for the three months ended June 30, 2024, compared to 25 percent for the same period in fiscal 2024. The decrease in the provision for income taxes for the three months ended June 30, 2024, compared to the same period in fiscal 2024, was primarily due to the decrease in income before income taxes. The lower effective tax rate for the three months ended June 30, 2024, compared to the same period in fiscal 2024, was primarily attributable to the decrease in state tax provision. Tax-related Contingencies As of June 30, 2024, we remain under IRS examination for fiscal 2018 through fiscal 2025. We periodically review our uncertain tax positions. Our assessment is based on many factors including any ongoing IRS audits. For the three months ended June 30, 2024, our assessment did not result in a material change in unrecognized tax benefits. Our deferred tax assets include the cumulative state net operating loss carry forwards, deferred deduction of allowance for credit losses and residual value loss estimates, mark-to-market adjustment of investment in marketable securities, and other deferred costs. The total deferred tax liability, net of these deferred tax assets, was $ 2.9 billion and $ 3.3 billion at June 30, 2024 and March 31, 2024 , respectively. Although realization of the deferred tax assets 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. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 1 1 – Related Party Transactions In April 2024, TMCC renewed a three-year revolving credit agreement with Toyota Motor Sales U.S.A., Inc. (“TMS”), pursuant to which TMCC is entitled to borrow a maximum amount of $ 5 billion. Except for the transaction noted above, there were no material changes to our related party agreements or relationships as described in our fiscal 2024 Form 10-K. The tables below show the financial statement line items and amounts included in our Consolidated Statements of Income and on our Consolidated Balance Sheets under various related party agreements or relationships: Three months ended June 30, 2024 2023 Net financing revenues: Manufacturer's subvention and other revenues $ 225 $ 270 Depreciation on operating leases $ 17 $ 31 Interest expense: Credit support fees, interest and other expenses $ 29 $ 24 Voluntary protection contract revenues Voluntary protection contract revenues $ 41 $ 38 Investment and other income, net: Interest and other income $ 13 $ 8 Expenses: Operating and administrative $ 26 $ 24 June 30, March 31, 2024 2024 Assets: Finance receivables, net Accounts receivable $ 88 $ 49 Deferred retail subvention income $ ( 1,024 ) $ ( 953 ) Investments in operating leases, net Investments in operating leases, net $ ( 88 ) $ ( 80 ) Deferred lease subvention income $ ( 399 ) $ ( 323 ) Other assets Notes receivable $ 1,662 $ 1,724 Other receivables, net $ 74 $ 86 Liabilities: Other liabilities Unearned voluntary protection contract revenues $ 438 $ 433 Other payables, net $ 828 $ 771 Notes payable $ 8 $ 8 Note 11 – Related Party Transactions (Continued) TMCC receives subvention payments from TMNA which result in a gross monthly subvention receivable. As of June 30, 2024 and March 31, 2024, the subvention receivable from TMNA was $ 93 million and $ 111 million , respectively. We have a master netting agreement with TMNA which allows us to net settle payments for shared services and subvention transactions. Under this agreement, as of June 30, 2024 and March 31, 2024 , respectively, we had a net amount payable to TMNA which is recorded in Other payables, net in Other liabilities. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 1 2 – Fair Value Measurements Recurring Fair Value Measurements Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables summarize our financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy except for certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and are excluded from the leveling information provided in the tables below. Fair value amounts presented below are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our Consolidated Balance Sheets. June 30, 2024 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 712 $ 4 $ - $ - $ 716 Foreign government and agency obligations - 15 - - 15 Municipal debt securities - 8 - - 8 Corporate debt securities - 415 - - 415 Mortgage-backed securities: U.S. government agency - 114 - - 114 Non-agency residential - 6 4 - 10 Non-agency commercial - 45 6 - 51 Asset-backed securities - 66 58 - 124 Available-for-sale debt securities total 712 673 68 - 1,453 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at 1 1,158 Total return bond funds 832 - - - 832 Equity mutual funds 1,098 - - - 1,098 Equity investments total 1,930 - - - 3,088 Investments in marketable securities total 2,642 673 68 - 4,541 Derivative assets: Interest rate swaps - 994 - - 994 Foreign currency swaps - 91 - - 91 Counterparty netting and collateral - - - ( 1,044 ) ( 1,044 ) Derivative assets total - 1,085 - ( 1,044 ) 41 Assets at fair value 2,642 1,758 68 ( 1,044 ) 4,582 Derivative liabilities: Interest rate swaps - ( 99 ) - - ( 99 ) Foreign currency swaps - ( 888 ) - - ( 888 ) Counterparty netting and collateral - - - 968 968 Liabilities at fair value - ( 987 ) - 968 ( 19 ) Net assets at fair value $ 2,642 $ 771 $ 68 $ ( 76 ) $ 4,563 1 Measured at net asset value and therefore excluded from leveling. Note 12 – Fair Value Measurements (Continued) March 31, 2024 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 693 $ 4 $ - $ - $ 697 Foreign government and agency obligations - 12 - - 12 Municipal debt securities - 7 - - 7 Corporate debt securities - 430 - - 430 Mortgage-backed securities: U.S. government agency - 118 - - 118 Non-agency residential - 7 4 - 11 Non-agency commercial - 46 9 - 55 Asset-backed securities - 82 56 - 138 Available-for-sale debt securities total 693 706 69 - 1,468 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at 1 1,134 Total return bond funds 830 - - - 830 Equity mutual funds 1,073 - - - 1,073 Equity investments total 1,903 - - - 3,037 Investments in marketable securities total 2,596 706 69 - 4,505 Derivative assets: Interest rate swaps - 1,149 - - 1,149 Foreign currency swaps - 89 - - 89 Counterparty netting and collateral - - - ( 1,197 ) ( 1,197 ) Derivative assets total - 1,238 - ( 1,197 ) 41 Assets at fair value 2,596 1,944 69 ( 1,197 ) 4,546 Derivative liabilities: Interest rate swaps - ( 52 ) - - ( 52 ) Foreign currency swaps - ( 918 ) - - ( 918 ) Counterparty netting and collateral - - - 947 947 Liabilities at fair value - ( 970 ) - 947 ( 23 ) Net assets at fair value $ 2,596 $ 974 $ 69 $ ( 250 ) $ 4,523 1 Measured at net asset value and therefore excluded from leveling. Level 3 Fair Value Measurements The Level 3 financial assets and liabilities recorded at fair value which are subject to recurring and nonrecurring fair value measurement, and the corresponding activity and change in the fair value measurements of these assets and liabilities, were not significant to our Consolidated Balance Sheets as of June 30, 2024 and March 31, 2024, or Consolidated Statements of Income for the three months ended June 30, 2024 and 2023. Nonrecurring Fair Value Measurements Nonrecurring fair value measurements include Level 3 net finance receivables that are not measured at fair value on a recurring basis but are subject to fair value adjustments utilizing the fair value of the underlying collateral when there is evidence of impairment. We did not have any significant nonrecurring fair value items as of June 30, 2024 and March 31, 2024. Note 12 – Fair Value Measurements (Continued) The following tables provide information about assets and liabilities not carried at fair value on a recurring basis on our Consolidated Balance Sheets: June 30, 2024 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables Retail loan $ 87,292 $ - $ - $ 88,452 $ 88,452 Wholesale 6,620 - - 6,642 6,642 Real estate 5,079 - - 5,087 5,087 Working capital 4,766 - - 4,738 4,738 Financial liabilities Unsecured notes and loans payable $ 89,146 $ - $ 87,140 $ - $ 87,140 Secured notes and loans payable 31,960 - - 31,782 31,782 March 31, 2024 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables Retail loan $ 85,886 $ - $ - $ 86,575 $ 86,575 Wholesale 6,690 - - 6,710 6,710 Real estate 4,900 - - 4,890 4,890 Working capital 4,531 - - 4,494 4,494 Financial liabilities Unsecured notes and loans payable $ 88,083 $ - $ 86,133 $ - $ 86,133 Secured notes and loans payable 34,337 - - 34,003 34,003 Accrued interest related to finance receivables is in Other assets on the Consolidated Balance Sheets; however, TMCC measures the fair value of each class of finance receivables using scheduled principal and interest payments. Therefore, accrued interest has been included in the carrying value of each class of finance receivables in the preceding tables, along with the finance receivables, deferred origination costs, deferred income, and allowance for credit losses. Finance receivables in the preceding tables exclude related party transactions which are classified as Level 3 within the fair value hierarchy. The preceding tables also exclude related party notes receivables and notes payables recorded in Other assets and Other liabilities on the Consolidated Balance Sheets which are classified as Level 3 within the fair value hierarchy. Refer to Note 11 - Related Party Transaction for additional information. For Cash and cash equivalents and Restricted cash and cash equivalents on our Consolidated Balance Sheets, the fair value approximates the carrying value and these instruments are classified as Level 1 within the fair value hierarchy. |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Note 1 3 – Segment Information Financial information for our reportable operating segments, which includes allocated corporate expenses, is summarized as follows: Three months ended June 30, 2024 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 3,209 $ - $ - $ 3,209 Depreciation on operating leases 1,034 - - 1,034 Interest expense 1,443 - - 1,443 Net financing revenues 732 - - 732 Voluntary protection contract revenues - 295 - 295 Investment and other income, net 166 57 - 223 Net financing and other revenues 898 352 - 1,250 Expenses: Provision for credit losses 189 - - 189 Operating and administrative 327 113 - 440 Voluntary protection contract expenses and insurance losses - 159 - 159 Total expenses 516 272 - 788 Income before income taxes 382 80 - 462 Provision for income taxes 87 18 - 105 Net income $ 295 $ 62 $ - $ 357 Total assets at June 30, 2024 $ 141,145 $ 7,635 $ ( 142 ) $ 148,638 Three months ended June 30, 2023 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 2,904 $ - $ - $ 2,904 Depreciation on operating leases 1,155 - - 1,155 Interest expense 899 - - 899 Net financing revenues 850 - - 850 Voluntary protection contract revenues - 271 - 271 Investment and other income, net 114 48 - 162 Net financing and other revenues 964 319 - 1,283 Expenses: Provision for credit losses 165 - - 165 Operating and administrative 334 114 - 448 Voluntary protection contract expenses and insurance losses - 146 - 146 Total expenses 499 260 - 759 Income before income taxes 465 59 - 524 Provision for income taxes 119 13 - 132 Net income $ 346 $ 46 $ - $ 392 Total assets at June 30, 2023 $ 131,974 $ 6,729 $ ( 67 ) $ 138,636 Note 13 – Segment Information (Continued) Voluntary protection operations – Contract revenues For the three months ended June 30, 2024 and 2023, approximately 85 percent and 84 percent, respectively, of voluntary protection contract revenues in the Voluntary protection operations segment were accounted for under the guidance for revenue from contracts with customers. The Voluntary protection operations segment defers contractually determined incentives paid to dealers as contract costs for selling voluntary protection products. These costs are recorded in Other assets on our Consolidated Balance Sheets and are amortized to Operating and administrative expenses in the Consolidated Statements of Income using a methodology consistent with the recognition of revenue. The amount of capitalized dealer incentives and the related amortization was not significant to our consolidated financial statements as of and for the three months ended June 30, 2024 and 2023 . We had $ 3.1 billion and $ 2.9 billion of unearned voluntary protection contract revenues from contracts with customers included in Other liabilities on our Consolidated Balance Sheets as of March 31, 2024 and March 31, 2023, respectively. We recognized $ 232 million of these balances in voluntary protection contract revenues in our Consolidated Statements of Income during the three months ended June 30, 2024, compared to $ 209 million recognized during the same period in fiscal 2024. As of June 30, 2024, we had unearned voluntary protection contract revenues of $ 3.2 billion included in Other liabilities on our Consolidated Balance Sheets, and with respect to this balance we expect to recognize revenue of $ 717 million during fiscal 2025 , and $ 2.5 billion thereafter . At June 30, 2023, we had unearned voluntary protection contract revenues of $ 3.0 billion associated with outstanding contracts. |
Interim Financial Data (Policie
Interim Financial Data (Policies) | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The information furnished in these unaudited interim consolidated financial statements as of and for the three months ended June 30, 2024 and 2023 has been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). In the fourth quarter of fiscal 2024, we changed our accounting method for investment tax credits from the flow-through method to the deferral method. As such, we have retrospectively applied the impact of the accounting method change to conform certain prior period amounts to current period presentation. Refer to Note 1 – Basis of Presentation and Significant Accounting Policies and Note 15 - Selected Quarterly Financial Data (unaudited) in our fiscal 2024 Form 10-K for additional information. In the opinion of management, the unaudited consolidated financial information reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The results of operations for the three months ended June 30, 2024, do not necessarily indicate the results which may be expected for the full fiscal year ending March 31, 2025 (“fiscal 2025”). These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in Toyota Motor Credit Corporation’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended March 31, 2024 (“fiscal 2024 ”), which was filed with the Securities and Exchange Commission on June 4, 2024. References herein to “TMCC” denote Toyota Motor Credit Corporation, and references herein to “we”, “our”, and “us” denote Toyota Motor Credit Corporation and its consolidated subsidiaries. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance There were no new accounting pronouncements adopted in the first quarter of fiscal 2025 . |
Accounting Guidance Issued But Not Yet Adopted | Accounting Guidance Issued But Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) , to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for us on March 31, 2025, with early adoption permitted. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) , requiring more granular disclosure of the components of income taxes. This ASU is effective for us on March 31, 2026, with early adoption permitted. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. |
Investments in Marketable Securities | Investments in marketable securities consist of debt securities and equity investments. We classify all of our debt securities as available-for-sale (“AFS”). Except when the fair value option is elected, AFS debt securities are recorded at fair value with unrealized gains or losses included in accumulated other comprehensive income (“AOCI”), net of applicable taxes. Interest income is recognized on an accrual basis and determined using the effective interest method. Realized gains and losses from sales of AFS debt securities are determined using the specific identification method or first in first out method. Dividend income, interest income, and realized gains and losses from the sales of AFS debt securities are included in Investment and other income, net in our Consolidated Statements of Income. We elected the fair value option for certain debt securities held within one of our investment portfolios for operational ease given the size and composition of this portfolio. All debt securities within this specific portfolio are recorded at fair value with changes in fair value included in Investment and other income, net in our Consolidated Statements of Income. |
Finance Receivables, Net | Finance receivables, net consists of the retail loan and dealer products portfolio segments, and includes deferred origination costs, deferred income, and allowance for credit losses. Finance receivables, net also includes securitized retail receivables, which represent retail receivables that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements, as discussed further in Note 8 – Variable Interest Entities . Cash flows from these securitized retail receivables are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. |
Investments in Operating Leases, Net | Investments in operating leases, net consists of vehicle lease contracts acquired from dealers, and includes deferred origination fees and costs, deferred income, investment tax credits, and accumulated depreciation. Non-cash investing activities related to investment tax credits on investments in operating leases for three months ended June 30, 2024 and 2023 were $ 157 million and $ 20 million, respectively. Securitized investments in operating leases represent beneficial interests in a pool of certain vehicle leases that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements as discussed further in Note 8 - Variable Interest Entities . Cash flows from these securitized investments in operating leases are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. |
Derivative Instruments | Derivative Instruments Our liabilities consist mainly of fixed and variable rate debt, denominated in U.S. dollars and various other currencies, which we issue in the global capital markets, while our assets consist primarily of U.S. dollar denominated, fixed rate receivables. We enter into interest rate swaps, and foreign currency swaps to economically hedge the interest rate and foreign currency risks that result from the different characteristics of our assets and liabilities. Our use of derivative transactions is intended to reduce long-term fluctuations in the fair value of assets and liabilities caused by market movements. All of our derivatives are categorized as not designated for hedge accounting, and all of our derivative activities are authorized and monitored by our management and our Asset-Liability Committee which provides a framework for financial controls and governance to manage market risk. All derivative instruments are recorded on the balance sheet at fair value, taking into consideration the effects of legally enforceable master netting agreements that allow us to net settle asset and liability positions and offset cash collateral with the same counterparty on a net basis. Changes in the fair value of our derivative instruments are recorded in Interest expense in our Consolidated Statements of Income. The derivative instruments are included as a component of Other assets or Other liabilities on our Consolidated Balance Sheets. |
Offsetting of Derivatives | Offsetting of Derivatives Accounting guidance permits the net presentation on our Consolidated Balance Sheets of derivative receivables and derivative payables with the same counterparty and the related cash collateral when a legally enforceable master netting agreement exists, or when the derivative receivables and derivative payables meet all the conditions for the right of setoff to exist. When we meet this condition, we elect to present such balances on a net basis. Over-the-Counter (“OTC”) Derivatives Our International Swaps and Derivatives Association Master Agreements are our master netting agreements which permit multiple transactions to be cancelled and settled with a single net balance paid to either party for our OTC derivatives. The master netting agreements also contain reciprocal collateral agreements which require the transfer of cash collateral to the party in a net asset position across all transactions. Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization arrangement. Although we have daily valuation and collateral exchange arrangements with all of our counterparties, due to the time required to move collateral, there may be a delay of up to one day between the exchange of collateral and the valuation of our derivatives. We would not be required to post additional collateral to the counterparties with whom we were in a net liability position at June 30, 2024 , if our credit ratings were to decline, since we fully collateralize without regard to credit ratings with these counterparties. In addition, as our collateral agreements include legal right of offset provisions, collateral amounts are netted against derivative assets or derivative liabilities, and the net amount is included in Other assets or Other liabilities on our Consolidated Balance Sheets. |
Centrally Cleared Derivatives | Centrally Cleared Derivatives For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments and accounted for with corresponding derivative positions as one unit of account as opposed to collateral. Initial margin payments are separately recorded in Other assets on our Consolidated Balance Sheets. We perform valuation and margin exchange on a daily basis. Similar to the OTC swaps, there may be a delay of up to one day between the exchange of margin payments and the valuation of our derivatives. |
Consolidated Variable Interest Entities | We use one or more special purpose entities that are considered Variable Interest Entities (“VIEs”) to issue asset-backed securities to third-party bank-sponsored asset-backed securitization vehicles and to investors in securitization transactions. The securities issued by these VIEs are backed by the cash flows related to retail finance receivables and beneficial interests in investments in operating leases (“Securitized Assets”). We hold variable interests in the VIEs that could potentially be significant to the VIEs. We determined that we are the primary beneficiary of the securitization trusts because (i) our servicing responsibilities for the Securitized Assets give us the power to direct the activities that most significantly impact the performance of the VIEs, and (ii) our variable interests in the VIEs give us the obligation to absorb losses and the right to receive residual returns that could potentially be significant. |
Revenue Recognition | Voluntary protection operations – Contract revenues The Voluntary protection operations segment defers contractually determined incentives paid to dealers as contract costs for selling voluntary protection products. These costs are recorded in Other assets on our Consolidated Balance Sheets and are amortized to Operating and administrative expenses in the Consolidated Statements of Income using a methodology consistent with the recognition of revenue. The amount of capitalized dealer incentives and the related amortization was not significant to our consolidated financial statements as of and for the three months ended June 30, 2024 and 2023 . |
Investments in Marketable Sec_2
Investments in Marketable Securities (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Marketable Securities [Abstract] | |
Summary of Investments in Marketable Securities | Investments in marketable securities consisted of the following: June 30, 2024 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 811 $ 1 $ ( 96 ) $ 716 Foreign government and agency obligations 16 - ( 1 ) 15 Municipal debt securities 8 - - 8 Corporate debt securities 463 2 ( 50 ) 415 Mortgage-backed securities: U.S. government agency 120 - ( 6 ) 114 Non-agency residential 12 - ( 2 ) 10 Non-agency commercial 57 - ( 6 ) 51 Asset-backed securities 127 1 ( 4 ) 124 Total available-for-sale debt securities $ 1,614 $ 4 $ ( 165 ) $ 1,453 Equity investments 3,088 Total investments in marketable securities $ 4,541 March 31, 2024 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 783 $ 1 $ ( 87 ) $ 697 Foreign government and agency obligations 13 - ( 1 ) 12 Municipal debt securities 8 - ( 1 ) 7 Corporate debt securities 477 2 ( 49 ) 430 Mortgage-backed securities: U.S. government agency 123 - ( 5 ) 118 Non-agency residential 12 - ( 1 ) 11 Non-agency commercial 64 - ( 9 ) 55 Asset-backed securities 142 1 ( 5 ) 138 Total available-for-sale debt securities $ 1,622 $ 4 $ ( 158 ) $ 1,468 Equity investments 3,037 Total investments in marketable securities $ 4,505 |
Schedule of Continuous Unrealized Losses on Available-For-Sale Debt Securities | The following table presents the aggregate fair value and unrealized losses on AFS debt securities in a continuous unrealized loss position: June 30, 2024 Less than 12 months 12 months or longer Total Available-for-sale debt securities: Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses U.S. government and agency obligations $ 43 $ ( 1 ) $ 601 $ ( 95 ) $ 644 $ ( 96 ) Foreign government and agency obligations 2 - 8 ( 1 ) 10 ( 1 ) Municipal debt securities - - 2 - 2 - Corporate debt securities 35 ( 1 ) 325 ( 49 ) 360 ( 50 ) Mortgage-backed securities U.S. Government agency 27 ( 1 ) 70 ( 5 ) 97 ( 6 ) Non-agency residential - - 7 ( 2 ) 7 ( 2 ) Non-agency commercial - - 50 ( 6 ) 50 ( 6 ) Asset-backed securities 5 - 55 ( 4 ) 60 ( 4 ) Total available-for-sale debt securities $ 112 $ ( 3 ) $ 1,118 $ ( 162 ) $ 1,230 $ ( 165 ) March 31, 2024 Less than 12 months 12 months or longer Total Available-for-sale debt securities: Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses U.S. government and agency obligations $ 317 $ ( 13 ) $ 336 $ ( 74 ) $ 653 $ ( 87 ) Foreign government and agency obligations 1 - 8 ( 1 ) 9 ( 1 ) Municipal debt securities - - 2 ( 1 ) 2 ( 1 ) Corporate debt securities 31 ( 3 ) 339 ( 46 ) 370 ( 49 ) Mortgage-backed securities U.S. Government agency 51 ( 1 ) 49 ( 4 ) 100 ( 5 ) Non-agency residential 1 - 7 ( 1 ) 8 ( 1 ) Non-agency commercial 1 - 53 ( 9 ) 54 ( 9 ) Asset-backed securities 17 - 58 ( 5 ) 75 ( 5 ) Total available-for-sale debt securities $ 419 $ ( 17 ) $ 852 $ ( 141 ) $ 1,271 $ ( 158 ) |
Schedule of Gains and Losses on Investments in Marketable Securities Presented in Our Consolidated Statement of Income | The following table represents gains and losses on our investments in marketable securities presented in our Consolidated Statements of Income: Three months ended June 30, 2024 2023 Available-for-sale debt securities: Unrealized losses on securities for which the fair value option was elected $ ( 5 ) $ ( 12 ) Realized losses on sales, net $ ( 4 ) $ - Equity investments: Unrealized gains $ 14 $ 12 Realized losses on sales, net $ ( 6 ) $ - |
Summary of Contractual Maturities of Available-For-Sale Debt Securities | The amortized cost and fair value by contractual maturities of available-for-sale debt securities are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations. June 30, 2024 Amortized c ost Fair value Available-for-sale debt securities: Due within 1 year $ 58 $ 57 Due after 1 year through 5 years 294 280 Due after 5 years through 10 years 479 447 Due after 10 years 467 370 Mortgage-backed and asset-backed securities 1 316 299 Total $ 1,614 $ 1,453 1. Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities have multiple maturity dates. |
Finance Receivables, Net (Table
Finance Receivables, Net (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Net Financing Receivables | Finance receivables, net consisted of the following: June 30, March 31, 2024 2024 Retail receivables 1 $ 88,676 $ 87,150 Dealer financing 16,574 16,181 105,250 103,331 Deferred origination costs 1,387 1,399 Deferred income ( 1,535 ) ( 1,424 ) Allowance for credit losses Retail receivables ( 1,559 ) ( 1,549 ) Dealer financing ( 94 ) ( 88 ) Total allowance for credit losses ( 1,653 ) ( 1,637 ) Finance receivables, net $ 103,449 $ 101,669 1 Includes gross securitized retail receivables of $ 29.9 billion and $ 31.5 billion as of June 30, 2024 and March 31, 2024 , respectively. |
Schedule of Amortized Cost Basis of Retail Loan Portfolio and Dealer Products Portfolio by Credit Quality Indicator | The following tables present the amortized cost basis of our retail loan portfolio by origination fiscal year by credit quality indicator based on number of days past due: Amortized Cost Basis by Origination Fiscal Year at June 30, 2024 2025 2024 2023 2022 2021 2020 and Prior Total Aging of finance receivables: Current $ 9,847 $ 32,739 $ 20,203 $ 13,348 $ 7,288 $ 2,560 $ 85,985 30-59 days past due 21 420 518 433 236 124 1,752 60-89 days past due - 133 177 141 77 44 572 90 days or greater past due - 51 71 51 26 20 219 Total $ 9,868 $ 33,343 $ 20,969 $ 13,973 $ 7,627 $ 2,748 $ 88,528 Gross Charge-Offs $ - $ 43 $ 74 $ 50 $ 20 $ 11 $ 198 Amortized Cost Basis by Origination Fiscal Year at March 31, 2024 2024 2023 2022 2021 2020 2019 and Prior Total Aging of finance receivables: Current $ 35,407 $ 22,473 $ 15,041 $ 8,539 $ 2,654 $ 748 $ 84,862 30-59 days past due 301 488 426 242 92 53 1,602 60-89 days past due 77 143 119 68 27 17 451 90 days or greater past due 38 69 53 29 10 11 210 Total $ 35,823 $ 23,173 $ 15,639 $ 8,878 $ 2,783 $ 829 $ 87,125 Gross Charge-Offs $ 38 $ 297 $ 258 $ 111 $ 38 $ 34 $ 776 The following tables present the amortized cost basis of our dealer products portfolio by credit quality indicator based on internal risk assessments by origination fiscal year: Amortized Cost Basis by Origination Fiscal Year at June 30, 2024 2025 2024 2023 2022 2021 2020 and Prior Revolving loans Total Wholesale Performing $ - $ - $ - $ - $ - $ - $ 6,183 $ 6,183 Credit Watch - - - - - - 290 290 At Risk - - - - - - 99 99 Default - - - - - - 36 36 Wholesale total $ - $ - $ - $ - $ - $ - $ 6,608 $ 6,608 Real estate Performing $ 397 $ 1,115 $ 901 $ 755 $ 811 $ 828 $ 81 $ 4,888 Credit Watch 55 60 - 21 14 6 - 156 At Risk - 9 - 7 - 2 - 18 Default 5 - 2 - 24 - - 31 Real estate total $ 457 $ 1,184 $ 903 $ 783 $ 849 $ 836 $ 81 $ 5,093 Working Capital Performing $ 247 $ 702 $ 292 $ 222 $ 116 $ 256 $ 2,973 $ 4,808 Credit Watch 10 14 15 6 - - 3 48 At Risk - - 3 - - - 1 4 Default - - - - 13 - - 13 Working capital total $ 257 $ 716 $ 310 $ 228 $ 129 $ 256 $ 2,977 $ 4,873 Total $ 714 $ 1,900 $ 1,213 $ 1,011 $ 978 $ 1,092 $ 9,666 $ 16,574 For the three months ended June 30, 2024 , there were no gross charge-offs in our dealer product portfolio. Amortized Cost Basis by Origination Fiscal Year at March 31, 2024 2024 2023 2022 2021 2020 2019 and Prior Revolving loans Total Wholesale Performing $ - $ - $ - $ - $ - $ - $ 6,287 $ 6,287 Credit Watch - - - - - - 238 238 At Risk - - - - - - 112 112 Default - - - - - - 36 36 Wholesale total $ - $ - $ - $ - $ - $ - $ 6,673 $ 6,673 Real estate Performing $ 1,224 $ 883 $ 815 $ 860 $ 128 $ 784 $ 3 $ 4,697 Credit Watch 58 37 44 6 - - - 145 At Risk 8 1 10 - - 2 - 21 Default 4 2 - 25 - - - 31 Real estate total $ 1,294 $ 923 $ 869 $ 891 $ 128 $ 786 $ 3 $ 4,894 Working Capital Performing $ 769 $ 414 $ 235 $ 122 $ 105 $ 159 $ 2,715 $ 4,519 Credit Watch 20 41 13 - - - 2 76 At Risk - 3 - - 2 - 1 6 Default - - - 13 - - - 13 Working capital total $ 789 $ 458 $ 248 $ 135 $ 107 $ 159 $ 2,718 $ 4,614 Total $ 2,083 $ 1,381 $ 1,117 $ 1,026 $ 235 $ 945 $ 9,394 $ 16,181 For the twelve months ended March 31, 2024 , there were no gross charge-offs in our dealer product portfolio. |
Aging of Amortized Cost Basis of Finance Receivables by Class | The following tables present the aging of the amortized cost basis of our finance receivables by class: June 30, 2024 30 - 59 Days 60 - 89 Days 90 Days or Total Past Current Total Finance 90 Days or greater past due and accruing Retail loan $ 1,752 $ 572 $ 219 $ 2,543 $ 85,985 $ 88,528 $ 159 Wholesale - - - - 6,608 6,608 - Real estate - - - - 5,093 5,093 - Working capital - - - - 4,873 4,873 - Total $ 1,752 $ 572 $ 219 $ 2,543 $ 102,559 $ 105,102 $ 159 March 31, 2024 30 - 59 Days 60 - 89 Days 90 Days or Total Past Current Total Finance 90 Days or greater past due and accruing Retail loan $ 1,602 $ 451 $ 210 $ 2,263 $ 84,862 $ 87,125 $ 142 Wholesale - - - - 6,673 6,673 - Real estate - - - - 4,894 4,894 - Working capital - - - - 4,614 4,614 - Total $ 1,602 $ 451 $ 210 $ 2,263 $ 101,043 $ 103,306 $ 142 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses and Finance Receivables by Portfolio Segment | The following tables provide information related to our allowance for credit losses for finance receivables and certain off-balance sheet lending commitments by portfolio segment: Three months ended June 30, 2024 Retail loan Dealer p roducts Total Beginning balance, April 1, 2024 $ 1,549 $ 135 $ 1,684 Charge-offs ( 198 ) - ( 198 ) Recoveries 30 - 30 Provision for credit losses 178 11 189 Ending balance, June 30, 2024 ¹ $ 1,559 $ 146 $ 1,705 1 Ending balance includes $ 52 million of allowance for credit losses recorded in Other liabilities on the Consolidated Balance Sheet which is related to off-balance sheet lending commitments in the dealer products portfolio. Three months ended June 30, 2023 Retail loan Dealer p roducts Total Beginning balance, April 1, 2023 $ 1,430 $ 83 $ 1,513 Charge-offs ( 134 ) - ( 134 ) Recoveries 29 - 29 Provision for credit losses 158 7 165 Ending balance, June 30, 2023 ¹ $ 1,483 $ 90 $ 1,573 1 Ending balance includes $ 28 million of allowance for credit losses recorded in Other liabilities on the Consolidated Balance Sheet which is related to off-balance sheet lending commitments in the dealer products portfolio. |
Investments in Operating Leas_2
Investments in Operating Leases, Net (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Leases, Operating [Abstract] | |
Investments in Operating Leases, Net | Investments in operating leases, net consisted of the following: June 30, March 31, 2024 2024 Investments in operating leases 1 $ 35,227 $ 35,383 Deferred income ( 735 ) ( 609 ) Accumulated depreciation ( 6,151 ) ( 6,761 ) Investments in operating leases, net $ 28,341 $ 28,013 1 Includes gross securitized investments in operating leases of $ 12.4 billion and $ 13.8 billion as of June 30, 2024 and March 31, 2024 , respectively. |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities and Interest Expense (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Activity Impact on Consolidated Balance Sheet | The following tables show the financial statement line item and amount of our derivative assets and liabilities that are reported on our Consolidated Balance Sheets: June 30, 2024 March 31, 2024 Fair Fair Notional value Notional value Other assets: Interest rate swaps $ 75,080 $ 994 $ 71,830 $ 1,149 Foreign currency swaps 1,759 91 1,759 89 Total $ 76,839 $ 1,085 $ 73,589 $ 1,238 Counterparty netting ( 341 ) ( 346 ) Collateral held ( 703 ) ( 851 ) Carrying value of derivative contracts – Other assets $ 41 $ 41 Other liabilities: Interest rate swaps $ 35,475 $ 99 $ 38,920 $ 52 Foreign currency swaps 7,433 888 7,433 918 Total $ 42,908 $ 987 $ 46,353 $ 970 Counterparty netting ( 341 ) ( 346 ) Collateral posted ( 627 ) ( 601 ) Carrying value of derivative contracts – Other liabilities $ 19 $ 23 |
Components of Interest Expense | The following table summarizes the components of interest expense, including the location and amount of gains and losses on derivative instruments and related hedged items, as reported in our Consolidated Statements of Income: Three months ended June 30, 2024 2023 Interest expense on debt $ 1,405 $ 1,087 Interest income on derivatives ( 58 ) ( 209 ) Interest expense on debt and derivatives 1,347 878 Losses on debt denominated in 20 36 Losses on foreign currency swaps 7 44 Losses (gains) on U.S. dollar interest rate swaps 69 ( 59 ) Total interest expense $ 1,443 $ 899 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Related Weighted Average Contractual Interest Rates | Debt and the related weighted average contractual interest rates are summarized as follows: June 30, 2024 March 31, 2024 Face value Carrying value Weighted average Face value Carrying value Weighted average Unsecured notes and loans payable $ 89,635 $ 89,146 4.25 % $ 88,576 $ 88,083 4.19 % Secured notes and loans payable 32,015 31,960 4.75 % 34,387 34,337 4.64 % Total debt $ 121,650 $ 121,106 4.38 % $ 122,963 $ 122,420 4.32 % |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Variable Interest Entities [Abstract] | |
Schedule of Assets and Liabilities related to Variable Interest Entities Securitization Transactions | The following tables show the assets and liabilities related to our VIE securitization transactions that are included on our Consolidated Balance Sheets: June 30, 2024 VIE Assets VIE Liabilities Restricted cash and cash equivalents Net securitized assets Other Debt Other Retail finance receivables $ 1,419 $ 29,568 $ 120 $ 25,801 $ 46 Investments in operating leases 607 9,254 28 6,159 10 Total $ 2,026 $ 38,822 $ 148 $ 31,960 $ 56 March 31, 2024 VIE Assets VIE Liabilities Restricted cash and cash equivalents Net securitized assets Other Debt Other Retail finance receivables $ 1,559 $ 31,130 $ 125 $ 27,351 $ 54 Investments in operating leases 692 10,274 17 6,986 12 Total $ 2,251 $ 41,404 $ 142 $ 34,337 $ 66 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | We have entered into certain commitments and guarantees for which the maximum unfunded amounts are summarized in the table below: June 30, March 31, 2024 2024 Commitments: Credit facilities commitments with dealers $ 3,090 $ 3,244 Commitments under operating lease agreements 105 106 Total commitments 3,195 3,350 Guarantees of affiliate pollution control and solid waste disposal bonds 100 100 Total commitments and guarantees $ 3,295 $ 3,450 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Included in Consolidated Statements of Income | The tables below show the financial statement line items and amounts included in our Consolidated Statements of Income and on our Consolidated Balance Sheets under various related party agreements or relationships: Three months ended June 30, 2024 2023 Net financing revenues: Manufacturer's subvention and other revenues $ 225 $ 270 Depreciation on operating leases $ 17 $ 31 Interest expense: Credit support fees, interest and other expenses $ 29 $ 24 Voluntary protection contract revenues Voluntary protection contract revenues $ 41 $ 38 Investment and other income, net: Interest and other income $ 13 $ 8 Expenses: Operating and administrative $ 26 $ 24 |
Related Party Transactions Included in Consolidated Balance Sheets | June 30, March 31, 2024 2024 Assets: Finance receivables, net Accounts receivable $ 88 $ 49 Deferred retail subvention income $ ( 1,024 ) $ ( 953 ) Investments in operating leases, net Investments in operating leases, net $ ( 88 ) $ ( 80 ) Deferred lease subvention income $ ( 399 ) $ ( 323 ) Other assets Notes receivable $ 1,662 $ 1,724 Other receivables, net $ 74 $ 86 Liabilities: Other liabilities Unearned voluntary protection contract revenues $ 438 $ 433 Other payables, net $ 828 $ 771 Notes payable $ 8 $ 8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables summarize our financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy except for certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and are excluded from the leveling information provided in the tables below. Fair value amounts presented below are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our Consolidated Balance Sheets. June 30, 2024 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 712 $ 4 $ - $ - $ 716 Foreign government and agency obligations - 15 - - 15 Municipal debt securities - 8 - - 8 Corporate debt securities - 415 - - 415 Mortgage-backed securities: U.S. government agency - 114 - - 114 Non-agency residential - 6 4 - 10 Non-agency commercial - 45 6 - 51 Asset-backed securities - 66 58 - 124 Available-for-sale debt securities total 712 673 68 - 1,453 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at 1 1,158 Total return bond funds 832 - - - 832 Equity mutual funds 1,098 - - - 1,098 Equity investments total 1,930 - - - 3,088 Investments in marketable securities total 2,642 673 68 - 4,541 Derivative assets: Interest rate swaps - 994 - - 994 Foreign currency swaps - 91 - - 91 Counterparty netting and collateral - - - ( 1,044 ) ( 1,044 ) Derivative assets total - 1,085 - ( 1,044 ) 41 Assets at fair value 2,642 1,758 68 ( 1,044 ) 4,582 Derivative liabilities: Interest rate swaps - ( 99 ) - - ( 99 ) Foreign currency swaps - ( 888 ) - - ( 888 ) Counterparty netting and collateral - - - 968 968 Liabilities at fair value - ( 987 ) - 968 ( 19 ) Net assets at fair value $ 2,642 $ 771 $ 68 $ ( 76 ) $ 4,563 1 Measured at net asset value and therefore excluded from leveling. March 31, 2024 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 693 $ 4 $ - $ - $ 697 Foreign government and agency obligations - 12 - - 12 Municipal debt securities - 7 - - 7 Corporate debt securities - 430 - - 430 Mortgage-backed securities: U.S. government agency - 118 - - 118 Non-agency residential - 7 4 - 11 Non-agency commercial - 46 9 - 55 Asset-backed securities - 82 56 - 138 Available-for-sale debt securities total 693 706 69 - 1,468 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at 1 1,134 Total return bond funds 830 - - - 830 Equity mutual funds 1,073 - - - 1,073 Equity investments total 1,903 - - - 3,037 Investments in marketable securities total 2,596 706 69 - 4,505 Derivative assets: Interest rate swaps - 1,149 - - 1,149 Foreign currency swaps - 89 - - 89 Counterparty netting and collateral - - - ( 1,197 ) ( 1,197 ) Derivative assets total - 1,238 - ( 1,197 ) 41 Assets at fair value 2,596 1,944 69 ( 1,197 ) 4,546 Derivative liabilities: Interest rate swaps - ( 52 ) - - ( 52 ) Foreign currency swaps - ( 918 ) - - ( 918 ) Counterparty netting and collateral - - - 947 947 Liabilities at fair value - ( 970 ) - 947 ( 23 ) Net assets at fair value $ 2,596 $ 974 $ 69 $ ( 250 ) $ 4,523 1 Measured at net asset value and therefore excluded from leveling. |
Financial Assets and Liabilities Not Carried at Fair Value on Recurring Basis on Consolidated Balance Sheets | The following tables provide information about assets and liabilities not carried at fair value on a recurring basis on our Consolidated Balance Sheets: June 30, 2024 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables Retail loan $ 87,292 $ - $ - $ 88,452 $ 88,452 Wholesale 6,620 - - 6,642 6,642 Real estate 5,079 - - 5,087 5,087 Working capital 4,766 - - 4,738 4,738 Financial liabilities Unsecured notes and loans payable $ 89,146 $ - $ 87,140 $ - $ 87,140 Secured notes and loans payable 31,960 - - 31,782 31,782 March 31, 2024 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables Retail loan $ 85,886 $ - $ - $ 86,575 $ 86,575 Wholesale 6,690 - - 6,710 6,710 Real estate 4,900 - - 4,890 4,890 Working capital 4,531 - - 4,494 4,494 Financial liabilities Unsecured notes and loans payable $ 88,083 $ - $ 86,133 $ - $ 86,133 Secured notes and loans payable 34,337 - - 34,003 34,003 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information for our reportable operating segments, which includes allocated corporate expenses, is summarized as follows: Three months ended June 30, 2024 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 3,209 $ - $ - $ 3,209 Depreciation on operating leases 1,034 - - 1,034 Interest expense 1,443 - - 1,443 Net financing revenues 732 - - 732 Voluntary protection contract revenues - 295 - 295 Investment and other income, net 166 57 - 223 Net financing and other revenues 898 352 - 1,250 Expenses: Provision for credit losses 189 - - 189 Operating and administrative 327 113 - 440 Voluntary protection contract expenses and insurance losses - 159 - 159 Total expenses 516 272 - 788 Income before income taxes 382 80 - 462 Provision for income taxes 87 18 - 105 Net income $ 295 $ 62 $ - $ 357 Total assets at June 30, 2024 $ 141,145 $ 7,635 $ ( 142 ) $ 148,638 Three months ended June 30, 2023 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 2,904 $ - $ - $ 2,904 Depreciation on operating leases 1,155 - - 1,155 Interest expense 899 - - 899 Net financing revenues 850 - - 850 Voluntary protection contract revenues - 271 - 271 Investment and other income, net 114 48 - 162 Net financing and other revenues 964 319 - 1,283 Expenses: Provision for credit losses 165 - - 165 Operating and administrative 334 114 - 448 Voluntary protection contract expenses and insurance losses - 146 - 146 Total expenses 499 260 - 759 Income before income taxes 465 59 - 524 Provision for income taxes 119 13 - 132 Net income $ 346 $ 46 $ - $ 392 Total assets at June 30, 2023 $ 131,974 $ 6,729 $ ( 67 ) $ 138,636 |
Investments in Marketable Sec_3
Investments in Marketable Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Mar. 31, 2024 | |
Marketable Securities [Abstract] | ||
Fair value option elected | $ 762,000,000 | $ 778,000,000 |
Available-for-sale debt securities unrealized loss | $ 75,000,000 | $ 70,000,000 |
Private placement share redemption percentage | 1% | |
Private placement share redemption amount | $ 250,000 | |
Share redemption period | 90 days |
Investments in Marketable Sec_4
Investments in Marketable Securities - Summary of Investments in Marketable Securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | $ 1,614 | $ 1,622 |
Available-for-sale debt securities, Unrealized gains | 4 | 4 |
Available-for-sale debt securities, Unrealized losses | (165) | (158) |
Available-for-sale debt securities, Fair value | 1,453 | 1,468 |
Equity investments, Fair value | 3,088 | 3,037 |
Investments in marketable securities total | 4,541 | 4,505 |
U.S. government and agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 811 | 783 |
Available-for-sale debt securities, Unrealized gains | 1 | 1 |
Available-for-sale debt securities, Unrealized losses | (96) | (87) |
Available-for-sale debt securities, Fair value | 716 | 697 |
Foreign government and agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 16 | 13 |
Available-for-sale debt securities, Unrealized gains | 0 | 0 |
Available-for-sale debt securities, Unrealized losses | (1) | (1) |
Available-for-sale debt securities, Fair value | 15 | 12 |
Municipal debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 8 | 8 |
Available-for-sale debt securities, Unrealized gains | 0 | 0 |
Available-for-sale debt securities, Unrealized losses | 0 | (1) |
Available-for-sale debt securities, Fair value | 8 | 7 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 463 | 477 |
Available-for-sale debt securities, Unrealized gains | 2 | 2 |
Available-for-sale debt securities, Unrealized losses | (50) | (49) |
Available-for-sale debt securities, Fair value | 415 | 430 |
U.S. government agency mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 120 | 123 |
Available-for-sale debt securities, Unrealized gains | 0 | 0 |
Available-for-sale debt securities, Unrealized losses | (6) | (5) |
Available-for-sale debt securities, Fair value | 114 | 118 |
Non-agency residential mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 12 | 12 |
Available-for-sale debt securities, Unrealized gains | 0 | 0 |
Available-for-sale debt securities, Unrealized losses | (2) | (1) |
Available-for-sale debt securities, Fair value | 10 | 11 |
Non-agency commercial mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 57 | 64 |
Available-for-sale debt securities, Unrealized gains | 0 | 0 |
Available-for-sale debt securities, Unrealized losses | (6) | (9) |
Available-for-sale debt securities, Fair value | 51 | 55 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 127 | 142 |
Available-for-sale debt securities, Unrealized gains | 1 | 1 |
Available-for-sale debt securities, Unrealized losses | (4) | (5) |
Available-for-sale debt securities, Fair value | $ 124 | $ 138 |
Investments in Marketable Sec_5
Investments in Marketable Securities - Schedule of Continuous Unrealized Losses on Available-For-Sale Debt Securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale debt securities, Less than 12 months, Fair value | $ 112 | $ 419 |
Available-for-sale debt securities, 12 months or longer, Fair value | 1,118 | 852 |
Available-for-sale debt securities, Total, Fair value | 1,230 | 1,271 |
Available-for-sale debt securities, Less than 12 months, Unrealized losses | (3) | (17) |
Available-for-sale debt securities, 12 months or longer, Unrealized losses | (162) | (141) |
Available-for-sale debt securities, Total, Unrealized losses | (165) | (158) |
U.S. government and agency obligations [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 43 | 317 |
Available-for-sale debt securities, 12 months or longer, Fair value | 601 | 336 |
Available-for-sale debt securities, Total, Fair value | 644 | 653 |
Available-for-sale debt securities, Less than 12 months, Unrealized losses | (1) | (13) |
Available-for-sale debt securities, 12 months or longer, Unrealized losses | (95) | (74) |
Available-for-sale debt securities, Total, Unrealized losses | (96) | (87) |
Foreign government and agency obligations [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 2 | 1 |
Available-for-sale debt securities, 12 months or longer, Fair value | 8 | 8 |
Available-for-sale debt securities, Total, Fair value | 10 | 9 |
Available-for-sale debt securities, Less than 12 months, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, 12 months or longer, Unrealized losses | (1) | (1) |
Available-for-sale debt securities, Total, Unrealized losses | (1) | (1) |
Municipal debt securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 0 | 0 |
Available-for-sale debt securities, 12 months or longer, Fair value | 2 | 2 |
Available-for-sale debt securities, Total, Fair value | 2 | 2 |
Available-for-sale debt securities, Less than 12 months, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, 12 months or longer, Unrealized losses | 0 | (1) |
Available-for-sale debt securities, Total, Unrealized losses | 0 | (1) |
Corporate debt securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 35 | 31 |
Available-for-sale debt securities, 12 months or longer, Fair value | 325 | 339 |
Available-for-sale debt securities, Total, Fair value | 360 | 370 |
Available-for-sale debt securities, Less than 12 months, Unrealized losses | (1) | (3) |
Available-for-sale debt securities, 12 months or longer, Unrealized losses | (49) | (46) |
Available-for-sale debt securities, Total, Unrealized losses | (50) | (49) |
U.S. government agency mortgage-backed securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 27 | 51 |
Available-for-sale debt securities, 12 months or longer, Fair value | 70 | 49 |
Available-for-sale debt securities, Total, Fair value | 97 | 100 |
Available-for-sale debt securities, Less than 12 months, Unrealized losses | (1) | (1) |
Available-for-sale debt securities, 12 months or longer, Unrealized losses | (5) | (4) |
Available-for-sale debt securities, Total, Unrealized losses | (6) | (5) |
Non-agency residential mortgage-backed securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 0 | 1 |
Available-for-sale debt securities, 12 months or longer, Fair value | 7 | 7 |
Available-for-sale debt securities, Total, Fair value | 7 | 8 |
Available-for-sale debt securities, Less than 12 months, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, 12 months or longer, Unrealized losses | (2) | (1) |
Available-for-sale debt securities, Total, Unrealized losses | (2) | (1) |
Non-agency commercial mortgage-backed securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 0 | 1 |
Available-for-sale debt securities, 12 months or longer, Fair value | 50 | 53 |
Available-for-sale debt securities, Total, Fair value | 50 | 54 |
Available-for-sale debt securities, Less than 12 months, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, 12 months or longer, Unrealized losses | (6) | (9) |
Available-for-sale debt securities, Total, Unrealized losses | (6) | (9) |
Asset-backed securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 5 | 17 |
Available-for-sale debt securities, 12 months or longer, Fair value | 55 | 58 |
Available-for-sale debt securities, Total, Fair value | 60 | 75 |
Available-for-sale debt securities, Less than 12 months, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, 12 months or longer, Unrealized losses | (4) | (5) |
Available-for-sale debt securities, Total, Unrealized losses | $ (4) | $ (5) |
Investments in Marketable Sec_6
Investments in Marketable Securities - Schedule of Gains and Losses on Investments in Marketable Securities Presented in Our Consolidated Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Available-for-sale debt securities: | ||
Unrealized losses on securities for which the fair value option was elected | $ (5) | $ (12) |
Realized losses on sales, net | (4) | 0 |
Equity investments: | ||
Unrealized gains | 14 | 12 |
Realized losses on sales, net | $ (6) | $ 0 |
Investments in Marketable Sec_7
Investments in Marketable Securities - Summary of Contractual Maturities of Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | |
Available-for-sale debt securities, Amortized cost | |||
Due within 1 Year, Amortized cost | $ 58 | ||
Due after 1 Year through 5 Years, Amortized cost | 294 | ||
Due after 5 Years through 10 Years, Amortized cost | 479 | ||
Due after 10 Years, Amortized cost | 467 | ||
Mortgage-backed and asset-backed securities, Amortized cost | [1] | 316 | |
Available-for-sale debt securities, Amortized cost | $ 1,614 | $ 1,622 | |
Debt Securities, Available-for-sale, Maturity Allocation [Extensible List] | us-gaap:DebtSecuritiesMaturityAllocationContractualMaturityMember | ||
Available-for-sale debt securities, Fair value | |||
Due within 1 Year, Fair value | $ 57 | ||
Due after 1 Year through 5 Years, Fair value | 280 | ||
Due after 5 Years through 10 Years, Fair value | 447 | ||
Due after 10 Years, Fair value | 370 | ||
Mortgage-backed and asset-backed securities, Fair value | [1] | 299 | |
Total, Fair value | $ 1,453 | $ 1,468 | |
Debt Securities, Available-for-sale, Maturity Allocation [Extensible List] | us-gaap:DebtSecuritiesMaturityAllocationContractualMaturityMember | ||
[1] Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities have multiple maturity dates. |
Finance Receivables, Net - Net
Finance Receivables, Net - Net Financing Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | $ 105,102 | $ 103,306 | |
Allowance for credit losses | (1,653) | (1,637) | |
Finance receivables, net | 103,449 | 101,669 | |
Finance Receivables, Net [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 105,250 | 103,331 | |
Deferred origination costs | 1,387 | 1,399 | |
Deferred income | (1,535) | (1,424) | |
Allowance for credit losses | (1,653) | (1,637) | |
Finance receivables, net | 103,449 | 101,669 | |
Finance Receivables, Net [Member] | Retail receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | [1] | 88,676 | 87,150 |
Allowance for credit losses | (1,559) | (1,549) | |
Finance Receivables, Net [Member] | Dealer financing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 16,574 | 16,181 | |
Allowance for credit losses | $ (94) | $ (88) | |
[1] Includes gross securitized retail receivables of $ 29.9 billion and $ 31.5 billion as of June 30, 2024 and March 31, 2024 , respectively. |
Finance Receivables, Net - Ne_2
Finance Receivables, Net - Net Financing Receivables (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | $ 105,102 | $ 103,306 |
Finance Receivables, Net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 105,250 | 103,331 |
Finance Receivables, Net [Member] | Securitized retail receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | $ 29,900 | $ 31,500 |
Finance Receivables, Net - Addi
Finance Receivables, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Mar. 31, 2024 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable accrued interest before allowance for credit loss | $ 403 | $ 396 |
Gross Charges Off | 0 | 0 |
Retail Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable accrued interest before allowance for credit loss | 328 | 318 |
Gross Charges Off | 198 | 776 |
Dealer Products [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable accrued interest before allowance for credit loss | $ 75 | $ 78 |
Finance Receivables, Net - Sche
Finance Receivables, Net - Schedule of Amortized Cost Basis of Retail Loan Portfolio and Dealer Products Portfolio by Credit Quality Indicator (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Mar. 31, 2024 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | $ 714 | $ 2,083 |
Year two, originated, fiscal year before current fiscal year | 1,900 | 1,381 |
Year three, originated, two years before current fiscal year | 1,213 | 1,117 |
Year four, originated, three years before current fiscal year | 1,011 | 1,026 |
Year five, originated, four years before current fiscal year | 978 | 235 |
Originated, more than five years before current fiscal year | 1,092 | 945 |
Revolving loans | 9,666 | 9,394 |
Total | 16,574 | 16,181 |
Gross Charge-Offs, Total | 0 | 0 |
Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 9,868 | 35,823 |
Year two, originated, fiscal year before current fiscal year | 33,343 | 23,173 |
Year three, originated, two years before current fiscal year | 20,969 | 15,639 |
Year four, originated, three years before current fiscal year | 13,973 | 8,878 |
Year five, originated, four years before current fiscal year | 7,627 | 2,783 |
Originated, more than five years before current fiscal year | 2,748 | 829 |
Total | 88,528 | 87,125 |
Gross Charge-Offs, year one, originated, current fiscal year | 0 | 38 |
Gross Charge-Offs, Year two, originated, fiscal year before current fiscal year | 43 | 297 |
Gross Charge-Offs, Year three, originated, two years before current fiscal year | 74 | 258 |
Gross Charge-Offs, Year four, originated, three years before current fiscal year | 50 | 111 |
Gross Charge-Offs, Year five, originated, four years before current fiscal year | 20 | 38 |
Gross Charge-Offs, Originated, more than five years before current fiscal year | 11 | 34 |
Gross Charge-Offs, Total | 198 | 776 |
Current [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 9,847 | 35,407 |
Year two, originated, fiscal year before current fiscal year | 32,739 | 22,473 |
Year three, originated, two years before current fiscal year | 20,203 | 15,041 |
Year four, originated, three years before current fiscal year | 13,348 | 8,539 |
Year five, originated, four years before current fiscal year | 7,288 | 2,654 |
Originated, more than five years before current fiscal year | 2,560 | 748 |
Total | 85,985 | 84,862 |
30-59 Days Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 21 | 301 |
Year two, originated, fiscal year before current fiscal year | 420 | 488 |
Year three, originated, two years before current fiscal year | 518 | 426 |
Year four, originated, three years before current fiscal year | 433 | 242 |
Year five, originated, four years before current fiscal year | 236 | 92 |
Originated, more than five years before current fiscal year | 124 | 53 |
Total | 1,752 | 1,602 |
60-89 Days Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 77 |
Year two, originated, fiscal year before current fiscal year | 133 | 143 |
Year three, originated, two years before current fiscal year | 177 | 119 |
Year four, originated, three years before current fiscal year | 141 | 68 |
Year five, originated, four years before current fiscal year | 77 | 27 |
Originated, more than five years before current fiscal year | 44 | 17 |
Total | 572 | 451 |
90 Days or Greater Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 38 |
Year two, originated, fiscal year before current fiscal year | 51 | 69 |
Year three, originated, two years before current fiscal year | 71 | 53 |
Year four, originated, three years before current fiscal year | 51 | 29 |
Year five, originated, four years before current fiscal year | 26 | 10 |
Originated, more than five years before current fiscal year | 20 | 11 |
Total | 219 | 210 |
Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 6,608 | 6,673 |
Total | 6,608 | 6,673 |
Wholesale [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 6,183 | 6,287 |
Total | 6,183 | 6,287 |
Wholesale [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 290 | 238 |
Total | 290 | 238 |
Wholesale [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 99 | 112 |
Total | 99 | 112 |
Wholesale [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 36 | 36 |
Total | 36 | 36 |
Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 457 | 1,294 |
Year two, originated, fiscal year before current fiscal year | 1,184 | 923 |
Year three, originated, two years before current fiscal year | 903 | 869 |
Year four, originated, three years before current fiscal year | 783 | 891 |
Year five, originated, four years before current fiscal year | 849 | 128 |
Originated, more than five years before current fiscal year | 836 | 786 |
Revolving loans | 81 | 3 |
Total | 5,093 | 4,894 |
Real estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 397 | 1,224 |
Year two, originated, fiscal year before current fiscal year | 1,115 | 883 |
Year three, originated, two years before current fiscal year | 901 | 815 |
Year four, originated, three years before current fiscal year | 755 | 860 |
Year five, originated, four years before current fiscal year | 811 | 128 |
Originated, more than five years before current fiscal year | 828 | 784 |
Revolving loans | 81 | 3 |
Total | 4,888 | 4,697 |
Real estate [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 55 | 58 |
Year two, originated, fiscal year before current fiscal year | 60 | 37 |
Year three, originated, two years before current fiscal year | 0 | 44 |
Year four, originated, three years before current fiscal year | 21 | 6 |
Year five, originated, four years before current fiscal year | 14 | 0 |
Originated, more than five years before current fiscal year | 6 | 0 |
Revolving loans | 0 | 0 |
Total | 156 | 145 |
Real estate [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 8 |
Year two, originated, fiscal year before current fiscal year | 9 | 1 |
Year three, originated, two years before current fiscal year | 0 | 10 |
Year four, originated, three years before current fiscal year | 7 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 2 | 2 |
Revolving loans | 0 | 0 |
Total | 18 | 21 |
Real estate [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 5 | 4 |
Year two, originated, fiscal year before current fiscal year | 0 | 2 |
Year three, originated, two years before current fiscal year | 2 | 0 |
Year four, originated, three years before current fiscal year | 0 | 25 |
Year five, originated, four years before current fiscal year | 24 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 31 | 31 |
Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 257 | 789 |
Year two, originated, fiscal year before current fiscal year | 716 | 458 |
Year three, originated, two years before current fiscal year | 310 | 248 |
Year four, originated, three years before current fiscal year | 228 | 135 |
Year five, originated, four years before current fiscal year | 129 | 107 |
Originated, more than five years before current fiscal year | 256 | 159 |
Revolving loans | 2,977 | 2,718 |
Total | 4,873 | 4,614 |
Working capital [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 247 | 769 |
Year two, originated, fiscal year before current fiscal year | 702 | 414 |
Year three, originated, two years before current fiscal year | 292 | 235 |
Year four, originated, three years before current fiscal year | 222 | 122 |
Year five, originated, four years before current fiscal year | 116 | 105 |
Originated, more than five years before current fiscal year | 256 | 159 |
Revolving loans | 2,973 | 2,715 |
Total | 4,808 | 4,519 |
Working capital [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 10 | 20 |
Year two, originated, fiscal year before current fiscal year | 14 | 41 |
Year three, originated, two years before current fiscal year | 15 | 13 |
Year four, originated, three years before current fiscal year | 6 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 3 | 2 |
Total | 48 | 76 |
Working capital [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 3 |
Year three, originated, two years before current fiscal year | 3 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 2 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 1 | 1 |
Total | 4 | 6 |
Working capital [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 13 |
Year five, originated, four years before current fiscal year | 13 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 0 | 0 |
Total | $ 13 | $ 13 |
Finance Receivables, Net - Agin
Finance Receivables, Net - Aging of Amortized Cost Basis of Finance Receivables by Class (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | $ 105,102 | $ 103,306 |
90 Days or greater past due and accruing | 159 | 142 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 1,752 | 1,602 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 572 | 451 |
90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 219 | 210 |
Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 2,543 | 2,263 |
Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 102,559 | 101,043 |
Retail Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 88,528 | 87,125 |
90 Days or greater past due and accruing | 159 | 142 |
Retail Loan [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 1,752 | 1,602 |
Retail Loan [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 572 | 451 |
Retail Loan [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 219 | 210 |
Retail Loan [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 2,543 | 2,263 |
Retail Loan [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 85,985 | 84,862 |
Wholesale [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 6,608 | 6,673 |
90 Days or greater past due and accruing | 0 | 0 |
Wholesale [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Wholesale [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Wholesale [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Wholesale [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Wholesale [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 6,608 | 6,673 |
Real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 5,093 | 4,894 |
90 Days or greater past due and accruing | 0 | 0 |
Real estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Real estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Real estate [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Real estate [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Real estate [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 5,093 | 4,894 |
Working capital [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 4,873 | 4,614 |
90 Days or greater past due and accruing | 0 | 0 |
Working capital [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Working capital [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Working capital [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Working capital [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Working capital [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | $ 4,873 | $ 4,614 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance for Credit Losses and Finance Receivables by Portfolio Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |||
Financing Receivable Allowance For Credit Losses [Abstract] | |||||
Charge-offs | $ 0 | $ 0 | |||
Provision for credit losses | 189 | $ 165 | |||
Retail loan [Member] | |||||
Financing Receivable Allowance For Credit Losses [Abstract] | |||||
Charge-offs | (198) | (776) | |||
Finance Receivables, Net [Member] | |||||
Financing Receivable Allowance For Credit Losses [Abstract] | |||||
Allowance for credit losses at beginning of period | 1,684 | 1,513 | 1,513 | ||
Charge-offs | (198) | (134) | |||
Recoveries | 30 | 29 | |||
Provision for credit losses | 189 | 165 | |||
Allowance for credit losses at end of period | 1,705 | [1] | 1,573 | [2] | 1,684 |
Finance Receivables, Net [Member] | Retail loan [Member] | |||||
Financing Receivable Allowance For Credit Losses [Abstract] | |||||
Allowance for credit losses at beginning of period | 1,549 | 1,430 | 1,430 | ||
Charge-offs | (198) | (134) | |||
Recoveries | 30 | 29 | |||
Provision for credit losses | 178 | 158 | |||
Allowance for credit losses at end of period | 1,559 | [1] | 1,483 | [2] | 1,549 |
Finance Receivables, Net [Member] | Dealer products [Member] | |||||
Financing Receivable Allowance For Credit Losses [Abstract] | |||||
Allowance for credit losses at beginning of period | 135 | 83 | 83 | ||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision for credit losses | 11 | 7 | |||
Allowance for credit losses at end of period | $ 146 | [1] | $ 90 | [2] | $ 135 |
[1] Ending balance includes $ 52 million of allowance for credit losses recorded in Other liabilities on the Consolidated Balance Sheet which is related to off-balance sheet lending commitments in the dealer products portfolio. Ending balance includes $ 28 million of allowance for credit losses recorded in Other liabilities on the Consolidated Balance Sheet which is related to off-balance sheet lending commitments in the dealer products portfolio. |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Allowance for Credit Losses and Finance Receivables by Portfolio Segment (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Finance Receivables, Net [Member] | Dealer Products [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for credit losses related to off-balance sheet commitments | $ 52 | $ 28 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Additional Information (Details) - Finance Receivables, Net [Member] - Financial Guarantee [Member] - Dealer Products [Member] - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
TMNA [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Ending Balance: collectively evaluated for impairment | $ 1,300 | $ 1,100 |
Private Toyota Distributors [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Ending Balance: collectively evaluated for impairment | $ 245 | $ 199 |
Investments in Operating Leas_3
Investments in Operating Leases, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Investments in operating leases [Member] | ||
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items] | ||
Investment tax credits | $ 157 | $ 20 |
Investments in Operating Leas_4
Investments in Operating Leases, Net - Investments in Operating Leases, Net (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | |
Property Subject To Or Available For Operating Lease [Line Items] | |||
Investments in operating leases, net | $ 28,341 | $ 28,013 | |
Investments in operating leases [Member] | |||
Property Subject To Or Available For Operating Lease [Line Items] | |||
Investments in operating leases | [1] | 35,227 | 35,383 |
Investments In Operating Leases, Net [Member] | |||
Property Subject To Or Available For Operating Lease [Line Items] | |||
Deferred income | (735) | (609) | |
Accumulated depreciation | $ (6,151) | $ (6,761) | |
[1] Includes gross securitized investments in operating leases of $ 12.4 billion and $ 13.8 billion as of June 30, 2024 and March 31, 2024 , respectively. |
Investments in Operating Leas_5
Investments in Operating Leases, Net - Investments in Operating Leases, Net (Parenthetical) (Details) - USD ($) $ in Billions | Jun. 30, 2024 | Mar. 31, 2024 |
Securitized investments in operating leases [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | $ 12.4 | $ 13.8 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities and Interest Expense - Derivative Activity Impact on Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Derivatives Fair Value [Line Items] | ||
Derivative Asset Statement Of Financial Position | Other assets | Other assets |
Derivative liability Statement Of Financial Position | Other liabilities | Other liabilities |
Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | $ 76,839 | $ 73,589 |
Fair value | 1,085 | 1,238 |
Counterparty netting | (341) | (346) |
Collateral held | (703) | (851) |
Other assets [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 75,080 | 71,830 |
Fair value | 994 | 1,149 |
Other assets [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 1,759 | 1,759 |
Fair value | 91 | 89 |
Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 42,908 | 46,353 |
Fair value | 987 | 970 |
Counterparty netting | (341) | (346) |
Collateral posted | (627) | (601) |
Other liabilities [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 35,475 | 38,920 |
Fair value | 99 | 52 |
Other liabilities [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 7,433 | 7,433 |
Fair value | 888 | 918 |
Carrying value [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying value of derivative contracts – Other assets | 41 | 41 |
Carrying value of derivative contracts – Other liabilities | $ 19 | $ 23 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities and Interest Expense - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Collateral and variation margin held in excess of the fair value of derivative assets | $ 1 | $ 5 |
Initial margin, collateral and variation margin posted in excess of the fair value of derivative liabilities | $ 304 | $ 311 |
Derivatives, Hedging Activiti_5
Derivatives, Hedging Activities and Interest Expense - Components of Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments Gain Loss [Line Items] | ||
Interest expense on debt | $ 1,405 | $ 1,087 |
Interest income on derivatives | (58) | (209) |
Interest expense on debt and derivatives | 1,347 | 878 |
Losses on debt denominated in foreign currencies | 20 | 36 |
Losses on foreign currency swaps | 7 | 44 |
Losses (gains) on U.S. dollar interest rate swaps | 69 | (59) |
Total interest expense | $ 1,443 | $ 899 |
Debt and Credit Facilities - De
Debt and Credit Facilities - Debt and Related Weighted Average Contractual Interest Rates (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Debt Instrument [Line Items] | ||
Debt, Face value | $ 121,650 | $ 122,963 |
Debt, Carrying value | $ 121,106 | $ 122,420 |
Weighted average contractual interest rates | 4.38% | 4.32% |
Unsecured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Face value | $ 89,635 | $ 88,576 |
Debt, Carrying value | $ 89,146 | $ 88,083 |
Weighted average contractual interest rates | 4.25% | 4.19% |
Secured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Face value | $ 32,015 | $ 34,387 |
Debt, Carrying value | $ 31,960 | $ 34,337 |
Weighted average contractual interest rates | 4.75% | 4.64% |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Details 1) - USD ($) $ in Billions | Jun. 30, 2024 | Mar. 31, 2024 |
Debt Disclosure [Abstract] | ||
Commercial paper outstanding | $ 17.2 | $ 17.2 |
Debt and Credit Facilities - _2
Debt and Credit Facilities - Additional Information (Details) - USD ($) | Jun. 30, 2024 | Mar. 31, 2024 |
364 Day Credit Agreement Expiring 2025 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 5,000,000,000 | |
Credit facilities amount outstanding | 0 | $ 0 |
Three Year Agreement Expiring 2027 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 5,000,000,000 | |
Credit facilities amount outstanding | 0 | 0 |
Five Year Syndicated Bank Credit Facility Expiring 2029 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 5,000,000,000 | |
Credit facilities amount outstanding | 0 | 0 |
Revolving Securitization Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 8,500,000,000 | |
Credit facilities amount outstanding | 2,900,000,000 | 3,400,000,000 |
Total Committed Bank Credit Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 4,400,000,000 | |
Credit facilities amount outstanding | 0 | 0 |
Committed Bank Credit Facility Expiring March 31, 2025 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 2,200,000,000 | |
Committed Bank Credit Facility Expiring March 31, 2026 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 275,000,000 | |
Committed Bank Credit Facility Expiring March 31, 2027 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,700,000,000 | |
Committed Bank Credit Facility Expiring March 31, 2028 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000,000 | |
Three Year Revolving Credit Facility Expiring March 31, 2027 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 5,000,000,000 | |
Credit facilities amount outstanding | $ 0 | $ 0 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Assets and Liabilities related to Variable Interest Entities Securitization Transactions (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 2,026 | $ 2,251 |
Net securitized assets | 103,449 | 101,669 |
Other assets | 4,314 | 4,373 |
Debt | 121,106 | 122,420 |
Other liabilities | 7,247 | 6,707 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Net securitized assets | 29,568 | 31,130 |
Other assets | 148 | 142 |
Debt | 31,960 | 34,337 |
Other liabilities | 56 | 66 |
Other assets [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Net securitized assets | 38,822 | 41,404 |
Other assets | 148 | 142 |
Other liabilities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 31,960 | 34,337 |
Other liabilities | 56 | 66 |
Retail Finance Receivables [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 1,419 | 1,559 |
Retail Finance Receivables [Member] | Other assets [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Net securitized assets | 29,568 | 31,130 |
Other assets | 120 | 125 |
Retail Finance Receivables [Member] | Other liabilities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 25,801 | 27,351 |
Other liabilities | 46 | 54 |
Investments In Operating Leases, Net [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 607 | 692 |
Investments In Operating Leases, Net [Member] | Other assets [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Net securitized assets | 9,254 | 10,274 |
Other assets | 28 | 17 |
Investments In Operating Leases, Net [Member] | Other liabilities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 6,159 | 6,986 |
Other liabilities | $ 10 | $ 12 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) $ in Billions | Jun. 30, 2024 | Mar. 31, 2024 |
Variable Interest Entities [Abstract] | ||
Securities retained by TMCC | $ 1.6 | $ 1.6 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments and Guarantees (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Commitments: | ||
Credit facilities commitments with dealers | $ 3,090 | $ 3,244 |
Commitments under operating lease agreements | 105 | 106 |
Total commitments | 3,195 | 3,350 |
Total commitments and guarantees | 3,295 | 3,450 |
Performance Guarantee [Member] | Putnam and Gibson Counties [Member] | ||
Commitments: | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | $ 100 | $ 100 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Commitments And Contingencies [Line Items] | ||
Lease description | Lease terms may contain renewal and extension options or early termination features. Generally, these options do not impact the lease term because TMCC is not reasonably certain that it will exercise the options. These lease agreements do not impose restrictions on our ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements, nor do they have residual value guarantees. We exclude from our Consolidated Balance Sheets leases with a term equal to one year or less and do not separate non-lease components from our real estate leases. Total operating lease expense, including payments to affiliates for the first quarter of fiscal 2025 and fiscal 2024 were not significant.Operating lease liabilities and right-of-use (“ROU”) assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. As the interest rate implicit in the lease contract is typically not readily determinable, we utilize our incremental borrowing rate at the lease commencement date for the duration of the lease term. As of June 30, 2024 and March 31, 2024, operating lease liabilities and ROU assets related to our operating lease agreements for which we are the lessee were not significant. | |
Indemnification provisions | $ 0 | $ 0 |
Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | $ 100,000,000 | 100,000,000 |
TMNA [Member] | ||
Commitments And Contingencies [Line Items] | ||
Lease agreement expiration date | 2032-08 | |
TMCC-affiliated companies [Member] | ||
Commitments And Contingencies [Line Items] | ||
Commitments under operating lease agreements | $ 60,000,000 | $ 62,000,000 |
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | 100,000,000 | |
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2028 [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | 20,000,000 | |
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2029 [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | 50,000,000 | |
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2030 [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | 10,000,000 | |
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2031 [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | 10,000,000 | |
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2032 [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | $ 10,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 105 | $ 132 | |
Effective tax rate | 23% | 25% | |
Net deferred income tax liability | $ 2,900 | $ 3,300 |
Related Party Transactions - Re
Related Party Transactions - Related Party Transactions Included in Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Voluntary protection contract revenues and insurance earned premiums: | ||
Voluntary protection contract revenues and insurance earned premiums | $ 295 | $ 271 |
Expenses: | ||
Operating and administrative | 440 | 448 |
TMCC-affiliated companies [Member] | ||
Net financing revenues: | ||
Manufacturer's subvention and other revenues | 225 | 270 |
Depreciation on operating leases | 17 | 31 |
Interest expense: | ||
Credit support fees, interest and other expenses | 29 | 24 |
Voluntary protection contract revenues and insurance earned premiums: | ||
Voluntary protection contract revenues and insurance earned premiums | 41 | 38 |
Investment and other income, net: | ||
Interest and other income | 13 | 8 |
Expenses: | ||
Operating and administrative | $ 26 | $ 24 |
Related Party Transactions - _2
Related Party Transactions - Related Party Transactions Included in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Cash and cash equivalents | ||
Cash and cash equivalents | $ 5,967 | $ 8,570 |
Other assets | ||
Notes receivable | 103,449 | 101,669 |
Other liabilities | ||
Other payables, net | 7,247 | 6,707 |
TMCC-affiliated companies [Member] | ||
Finance receivables, net | ||
Accounts receivable | 88 | 49 |
Deferred retail subvention income | (1,024) | (953) |
Investments in operating leases, net | ||
Investments in operating leases, net | (88) | (80) |
Deferred lease subvention income | (399) | (323) |
Other assets | ||
Notes receivable | 1,662 | 1,724 |
Other receivables, net | 74 | 86 |
Other liabilities | ||
Unearned voluntary protection contract revenues and insurance earned premiums | 438 | 433 |
Other payables, net | 828 | 771 |
Notes payable | $ 8 | $ 8 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Apr. 30, 2024 | Mar. 31, 2024 |
Related Party Transaction [Line Items] | |||
Subvention support receivable | $ 93 | $ 111 | |
TMCC-affiliated companies [Member] | Financing Support to Affiliates [Member] | |||
Related Party Transaction [Line Items] | |||
Maximum borrowing capacity | $ 5,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | $ 1,453 | $ 1,468 | ||
Equity investments | 3,088 | 3,037 | ||
Investments in marketable securities total | 4,541 | 4,505 | ||
U.S. government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 716 | 697 | ||
Municipal debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 8 | 7 | ||
Corporate debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 415 | 430 | ||
U.S. government agency mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 114 | 118 | ||
Non-agency residential mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 10 | 11 | ||
Non-agency commercial mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 51 | 55 | ||
Asset-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 124 | 138 | ||
Foreign government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 15 | 12 | ||
Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 1,453 | 1,468 | ||
Equity investments | 3,088 | 3,037 | ||
Investments in marketable securities total | 4,541 | 4,505 | ||
Derivative assets | 41 | 41 | ||
Counterparty netting and collateral | (1,044) | (1,197) | ||
Assets at fair value | 4,582 | 4,546 | ||
Counterparty netting and collateral | 968 | 947 | ||
Liabilities at fair value | (19) | (23) | ||
Net assets at fair value | 4,563 | 4,523 | ||
Recurring [Member] | U.S. government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 716 | 697 | ||
Recurring [Member] | Municipal debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 8 | 7 | ||
Recurring [Member] | Corporate debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 415 | 430 | ||
Recurring [Member] | U.S. government agency mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 114 | 118 | ||
Recurring [Member] | Non-agency residential mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 10 | 11 | ||
Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 51 | 55 | ||
Recurring [Member] | Asset-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 124 | 138 | ||
Recurring [Member] | Fixed income total return bond funds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity investments | 832 | 830 | ||
Recurring [Member] | Equity mutual funds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity investments | 1,098 | 1,073 | ||
Recurring [Member] | Foreign government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 15 | 12 | ||
Recurring [Member] | Counterparty Netting & Collateral [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Equity investments | 0 | 0 | ||
Investments in marketable securities total | 0 | 0 | ||
Derivative assets | (1,044) | (1,197) | ||
Counterparty netting and collateral | (1,044) | (1,197) | ||
Assets at fair value | (1,044) | (1,197) | ||
Counterparty netting and collateral | 968 | 947 | ||
Liabilities at fair value | 968 | 947 | ||
Net assets at fair value | (76) | (250) | ||
Recurring [Member] | Counterparty Netting & Collateral [Member] | U.S. government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Counterparty Netting & Collateral [Member] | Municipal debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Counterparty Netting & Collateral [Member] | Corporate debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Counterparty Netting & Collateral [Member] | U.S. government agency mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Counterparty Netting & Collateral [Member] | Non-agency residential mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Counterparty Netting & Collateral [Member] | Non-agency commercial mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Counterparty Netting & Collateral [Member] | Asset-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Counterparty Netting & Collateral [Member] | Fixed income total return bond funds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity investments | 0 | 0 | ||
Recurring [Member] | Counterparty Netting & Collateral [Member] | Equity mutual funds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity investments | 0 | 0 | ||
Recurring [Member] | Counterparty Netting & Collateral [Member] | Foreign government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Foreign currency swaps [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative assets | 91 | 89 | ||
Derivative liabilities | (888) | (918) | ||
Recurring [Member] | Foreign currency swaps [Member] | Counterparty Netting & Collateral [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Recurring [Member] | Interest rate swaps [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative assets | 994 | 1,149 | ||
Derivative liabilities | (99) | (52) | ||
Recurring [Member] | Interest rate swaps [Member] | Counterparty Netting & Collateral [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 712 | 693 | ||
Equity investments | 1,930 | 1,903 | ||
Investments in marketable securities total | 2,642 | 2,596 | ||
Derivative assets | 0 | 0 | ||
Counterparty netting and collateral | 0 | 0 | ||
Assets at fair value | 2,642 | 2,596 | ||
Counterparty netting and collateral | 0 | 0 | ||
Liabilities at fair value | 0 | 0 | ||
Net assets at fair value | 2,642 | 2,596 | ||
Recurring [Member] | Level 1 [Member] | U.S. government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 712 | 693 | ||
Recurring [Member] | Level 1 [Member] | Municipal debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Corporate debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | U.S. government agency mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Non-agency residential mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Asset-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Fixed income total return bond funds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity investments | 832 | 830 | ||
Recurring [Member] | Level 1 [Member] | Equity mutual funds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity investments | 1,098 | 1,073 | ||
Recurring [Member] | Level 1 [Member] | Foreign government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Foreign currency swaps [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Interest rate swaps [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 673 | 706 | ||
Equity investments | 0 | 0 | ||
Investments in marketable securities total | 673 | 706 | ||
Derivative assets | 1,085 | 1,238 | ||
Counterparty netting and collateral | 0 | |||
Assets at fair value | 1,758 | 1,944 | ||
Counterparty netting and collateral | 0 | |||
Liabilities at fair value | (987) | (970) | ||
Net assets at fair value | 771 | 974 | ||
Recurring [Member] | Level 2 [Member] | U.S. government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 4 | 4 | ||
Recurring [Member] | Level 2 [Member] | Municipal debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 8 | 7 | ||
Recurring [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 415 | 430 | ||
Recurring [Member] | Level 2 [Member] | U.S. government agency mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 114 | 118 | ||
Recurring [Member] | Level 2 [Member] | Non-agency residential mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 6 | 7 | ||
Recurring [Member] | Level 2 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 45 | 46 | ||
Recurring [Member] | Level 2 [Member] | Asset-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 66 | 82 | ||
Recurring [Member] | Level 2 [Member] | Fixed income total return bond funds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity investments | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | Equity mutual funds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity investments | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | Foreign government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 15 | 12 | ||
Recurring [Member] | Level 2 [Member] | Foreign currency swaps [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative assets | 91 | 89 | ||
Derivative liabilities | (888) | (918) | ||
Recurring [Member] | Level 2 [Member] | Interest rate swaps [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative assets | 994 | 1,149 | ||
Derivative liabilities | (99) | (52) | ||
Recurring [Member] | Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 68 | 69 | ||
Equity investments | 0 | 0 | ||
Investments in marketable securities total | 68 | 69 | ||
Derivative assets | 0 | 0 | ||
Counterparty netting and collateral | 0 | 0 | ||
Assets at fair value | 68 | 69 | ||
Counterparty netting and collateral | 0 | 0 | ||
Liabilities at fair value | 0 | 0 | ||
Net assets at fair value | 68 | 69 | ||
Recurring [Member] | Level 3 [Member] | U.S. government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Municipal debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Corporate debt securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | U.S. government agency mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Non-agency residential mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 4 | 4 | ||
Recurring [Member] | Level 3 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 6 | 9 | ||
Recurring [Member] | Level 3 [Member] | Asset-backed securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 58 | 56 | ||
Recurring [Member] | Level 3 [Member] | Fixed income total return bond funds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity investments | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Equity mutual funds [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity investments | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Foreign government and agency obligations [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, Debt securities | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Foreign currency swaps [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Interest rate swaps [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Recurring [Member] | Fixed income mutual funds measured at net asset value [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity investments | $ 1,158 | [1] | $ 1,134 | [2] |
[1] Measured at net asset value and therefore excluded from leveling. Measured at net asset value and therefore excluded from leveling. |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Not Carried at Fair Value on Recurring Basis on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Carrying value [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | $ 89,146 | $ 88,083 |
Carrying value [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 31,960 | 34,337 |
Fair value [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 87,140 | 86,133 |
Fair value [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 31,782 | 34,003 |
Fair value [Member] | Level 1 [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 1 [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 2 [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 87,140 | 86,133 |
Fair value [Member] | Level 2 [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 3 [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 3 [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 31,782 | 34,003 |
Retail Loan [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 87,292 | 85,886 |
Retail Loan [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 88,452 | 86,575 |
Retail Loan [Member] | Fair value [Member] | Level 1 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Retail Loan [Member] | Fair value [Member] | Level 2 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Retail Loan [Member] | Fair value [Member] | Level 3 [Member] | ||
Financial assets | ||
Finance receivables, net | 88,452 | 86,575 |
Wholesale [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 6,620 | 6,690 |
Wholesale [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 6,642 | 6,710 |
Wholesale [Member] | Fair value [Member] | Level 1 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Wholesale [Member] | Fair value [Member] | Level 2 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Wholesale [Member] | Fair value [Member] | Level 3 [Member] | ||
Financial assets | ||
Finance receivables, net | 6,642 | 6,710 |
Real estate [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 5,079 | 4,900 |
Real estate [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 5,087 | 4,890 |
Real estate [Member] | Fair value [Member] | Level 1 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Real estate [Member] | Fair value [Member] | Level 2 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Real estate [Member] | Fair value [Member] | Level 3 [Member] | ||
Financial assets | ||
Finance receivables, net | 5,087 | 4,890 |
Working capital [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 4,766 | 4,531 |
Working capital [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 4,738 | 4,494 |
Working capital [Member] | Fair value [Member] | Level 1 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Working capital [Member] | Fair value [Member] | Level 2 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Working capital [Member] | Fair value [Member] | Level 3 [Member] | ||
Financial assets | ||
Finance receivables, net | $ 4,738 | $ 4,494 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Segment Reporting Information [Line Items] | |||
Total financing revenues | $ 3,209 | $ 2,904 | |
Depreciation on operating leases | 1,034 | 1,155 | |
Interest expense | 1,443 | 899 | |
Net financing revenues | 732 | 850 | |
Voluntary protection contract revenues and insurance earned premiums | 295 | 271 | |
Investment and other income, net | 223 | 162 | |
Net financing revenues and other revenues | 1,250 | 1,283 | |
Expenses: | |||
Provision for credit losses | 189 | 165 | |
Operating and administrative | 440 | 448 | |
Voluntary protection contract expenses and insurance losses | 159 | 146 | |
Total expenses | 788 | 759 | |
Income before income taxes | 462 | 524 | |
Provision for income taxes | 105 | 132 | |
Net income | 357 | 392 | |
Total assets | 148,638 | 138,636 | $ 149,381 |
Intercompany Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total financing revenues | 0 | 0 | |
Depreciation on operating leases | 0 | 0 | |
Interest expense | 0 | 0 | |
Net financing revenues | 0 | 0 | |
Voluntary protection contract revenues and insurance earned premiums | 0 | 0 | |
Investment and other income, net | 0 | 0 | |
Net financing revenues and other revenues | 0 | 0 | |
Expenses: | |||
Provision for credit losses | 0 | 0 | |
Operating and administrative | 0 | 0 | |
Voluntary protection contract expenses and insurance losses | 0 | 0 | |
Total expenses | 0 | 0 | |
Income before income taxes | 0 | 0 | |
Provision for income taxes | 0 | 0 | |
Net income | 0 | 0 | |
Total assets | (142) | (67) | |
Finance Operations [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total financing revenues | 3,209 | 2,904 | |
Depreciation on operating leases | 1,034 | 1,155 | |
Interest expense | 1,443 | 899 | |
Net financing revenues | 732 | 850 | |
Voluntary protection contract revenues and insurance earned premiums | 0 | 0 | |
Investment and other income, net | 166 | 114 | |
Net financing revenues and other revenues | 898 | 964 | |
Expenses: | |||
Provision for credit losses | 189 | 165 | |
Operating and administrative | 327 | 334 | |
Voluntary protection contract expenses and insurance losses | 0 | 0 | |
Total expenses | 516 | 499 | |
Income before income taxes | 382 | 465 | |
Provision for income taxes | 87 | 119 | |
Net income | 295 | 346 | |
Total assets | 141,145 | 131,974 | |
Voluntary Protection Operations [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total financing revenues | 0 | 0 | |
Depreciation on operating leases | 0 | 0 | |
Interest expense | 0 | 0 | |
Net financing revenues | 0 | 0 | |
Voluntary protection contract revenues and insurance earned premiums | 295 | 271 | |
Investment and other income, net | 57 | 48 | |
Net financing revenues and other revenues | 352 | 319 | |
Expenses: | |||
Provision for credit losses | 0 | 0 | |
Operating and administrative | 113 | 114 | |
Voluntary protection contract expenses and insurance losses | 159 | 146 | |
Total expenses | 272 | 260 | |
Income before income taxes | 80 | 59 | |
Provision for income taxes | 18 | 13 | |
Net income | 62 | 46 | |
Total assets | $ 7,635 | $ 6,729 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||||
Unearned voluntary protection contract revenues | $ 3,000 | |||
Unearned amounts in voluntary protection contract revenues, recognized | $ 232 | $ 209 | ||
Other liabilities [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Unearned voluntary protection contract revenues | $ 3,200 | $ 3,100 | $ 2,900 | |
Accounting Standards Update 2014-09 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of voluntary protection contract revenues | 85% | 84% |
Segment Information - Additio_2
Segment Information - Additional Information (Details1) $ in Millions | Jun. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation, amount | $ 717 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-04-01 | |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation, amount | $ 2,500 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |