Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Apr. 30, 2016 | Sep. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2016 | ||
Amendment Flag | false | ||
Entity Registrant Name | Toyota Motor Credit Corporation | ||
Entity Central Index Key | 834,071 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --03-31 | ||
Trading Symbol | TMCC | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Common Stock Shares Outstanding | 91,500 | ||
Entity Public Float | $ 0 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Financing revenues: | |||
Operating lease | $ 7,141 | $ 6,113 | $ 5,068 |
Retail | 1,859 | 1,797 | 1,897 |
Dealer | 403 | 400 | 432 |
Total financing revenues | 9,403 | 8,310 | 7,397 |
Depreciation on operating leases | 5,914 | 4,857 | 4,012 |
Interest expense | 1,137 | 736 | 1,340 |
Net financing revenues | 2,352 | 2,717 | 2,045 |
Insurance earned premiums and contract revenues | 719 | 638 | 567 |
Gain on sale of commercial finance business | 197 | ||
Investment and other income, net | 164 | 194 | 135 |
Net financing revenues and other revenues | 3,432 | 3,549 | 2,747 |
Expenses: | |||
Provision for credit losses | 441 | 308 | 170 |
Operating and administrative | 1,161 | 1,046 | 965 |
Insurance losses and loss adjustment expenses | 318 | 269 | 258 |
Total expenses | 1,920 | 1,623 | 1,393 |
Income before income taxes | 1,512 | 1,926 | 1,354 |
Provision for income taxes | 580 | 729 | 497 |
Net income | $ 932 | $ 1,197 | $ 857 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 932 | $ 1,197 | $ 857 |
Other comprehensive (loss) income, net of tax: | |||
Net unrealized (losses) gains on available-for-sale marketable securities, net of tax | (51) | 64 | (11) |
Reclassification adjustment for net gains on available-for-sale marketable securities included in investment and other income, net, net of taxes | (4) | (44) | 0 |
Other comprehensive (loss) income | (55) | 20 | (11) |
Comprehensive income | $ 877 | $ 1,217 | $ 846 |
Consolidated Statement of Comp4
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net unrealized gains (losses) on available-for-sale marketable securities, tax benefit (provision) | $ 32 | $ (38) | $ 5 |
Reclassification adjustment for net gains on available-for-sale marketable securities included in investment and other income, net, tax provision | $ 2 | $ 26 | $ 0 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 2,701 | $ 2,407 |
Restricted cash | 1,010 | 784 |
Investments in marketable securities | 6,540 | 7,131 |
Finance receivables, net | 65,636 | 65,893 |
Investments in operating leases, net | 36,488 | 31,128 |
Other assets | 2,348 | 2,282 |
Total assets | 114,723 | 109,625 |
LIABILITIES AND SHAREHOLDER’S EQUITY | ||
Debt | 93,725 | 90,231 |
Deferred income taxes | 8,016 | 7,519 |
Other liabilities | 3,585 | 3,355 |
Total liabilities | $ 105,326 | $ 101,105 |
Commitments and contingencies (See Note 14) | ||
Shareholder’s equity: | ||
Capital stock, no par value (100,000 shares authorized; 91,500 issued and outstanding) at March 31, 2016 and 2015 | $ 915 | $ 915 |
Additional paid-in capital | 2 | 2 |
Accumulated other comprehensive income | 165 | 220 |
Retained earnings | 8,315 | 7,383 |
Total shareholder's equity | 9,397 | 8,520 |
Total liabilities and shareholder's equity | $ 114,723 | $ 109,625 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Mar. 31, 2016 | Mar. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | ||
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 Sheet (Sup
Consolidated Balance Sheet (Supplemental) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
ASSETS | ||
Finance receivables, net | $ 65,636 | $ 65,893 |
Investments in operating leases, net | 36,488 | 31,128 |
Other assets | 2,348 | 2,282 |
Total assets | 114,723 | 109,625 |
LIABILITIES | ||
Debt | 93,725 | 90,231 |
Other liabilities | 3,585 | 3,355 |
Total liabilities | 105,326 | 101,105 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Finance receivables, net | 14,130 | 11,509 |
Investments in operating leases, net | 2,504 | 1,193 |
Other assets | 84 | 15 |
Total assets | 16,718 | 12,717 |
LIABILITIES | ||
Debt | 14,139 | 10,837 |
Other liabilities | 5 | 3 |
Total liabilities | $ 14,144 | $ 10,840 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Equity - USD ($) $ in Millions | Total | Capital stock | Additional paid-in capital | Accumulated other comprehensive income | Retained earnings |
Balance at Mar. 31, 2013 | $ 7,557 | $ 915 | $ 2 | $ 211 | $ 6,429 |
Net income | 857 | 857 | |||
Other comprehensive income (loss), net of tax | (11) | (11) | |||
Dividends | (665) | (665) | |||
Balance at Mar. 31, 2014 | 7,738 | 915 | 2 | 200 | 6,621 |
Net income | 1,197 | 1,197 | |||
Other comprehensive income (loss), net of tax | 20 | 20 | |||
Dividends | (435) | (435) | |||
Balance at Mar. 31, 2015 | 8,520 | 915 | 2 | 220 | 7,383 |
Net income | 932 | 932 | |||
Other comprehensive income (loss), net of tax | (55) | (55) | |||
Balance at Mar. 31, 2016 | $ 9,397 | $ 915 | $ 2 | $ 165 | $ 8,315 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 932 | $ 1,197 | $ 857 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 5,965 | 4,895 | 4,045 |
Recognition of deferred income | (1,713) | (1,539) | (1,278) |
Provision for credit losses | 441 | 308 | 170 |
Amortization of deferred costs | 672 | 628 | 589 |
Foreign currency and other adjustments to the carrying value of debt, net | 1,143 | (2,380) | (205) |
Net realized gains from sales and other-than-temporary impairment on securities | (6) | (70) | 0 |
Gain on sale of commercial finance business | (197) | ||
Net change in: | |||
Restricted cash and cash equivalents | (226) | (140) | (153) |
Derivative assets | (15) | (4) | 9 |
Other assets (Note 8) and accrued interest | 66 | (350) | 87 |
Deferred income taxes | 531 | 760 | 516 |
Derivative liabilities | (83) | 84 | (11) |
Other liabilities | 329 | 378 | 248 |
Net cash provided by operating activities | 7,839 | 3,767 | 4,874 |
Cash flows from investing activities: | |||
Purchase of investments in marketable securities | (7,447) | (6,164) | (5,114) |
Proceeds from sales of investments in marketable securities | 914 | 991 | 596 |
Proceeds from maturities of investments in marketable securities | 7,026 | 3,529 | 4,510 |
Acquisition of finance receivables | (24,956) | (25,584) | (25,790) |
Collection of finance receivables | 24,523 | 24,602 | 23,961 |
Net change in wholesale and certain working capital receivables | (512) | 222 | (804) |
Acquisition of investments in operating leases | (19,917) | (16,969) | (14,410) |
Disposals of investments in operating leases | 8,283 | 6,444 | 6,636 |
Proceeds from sale of commercial finance business | 2,317 | ||
Net change in financing support provided to affiliates | 7 | (12) | (241) |
Cash equivalents un-restricted (restricted) to acquire finance receivables and investment in operating leases, net | 0 | 1,077 | (1,077) |
Other, net | (68) | (57) | (45) |
Net cash used in investing activities | (9,830) | (11,921) | (11,778) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 25,564 | 25,817 | 20,226 |
Payments on debt | (22,865) | (17,934) | (16,662) |
Net change in commercial paper | (410) | (704) | 3,123 |
Net change in financing support provided by affiliates | (4) | 2 | (26) |
Dividend paid to TFSA | 0 | (435) | (665) |
Net cash provided by financing activities | 2,285 | 6,746 | 5,996 |
Net increase (decrease) in cash and cash equivalents | 294 | (1,408) | (908) |
Cash and cash equivalents at the beginning of the period | 2,407 | 3,815 | 4,723 |
Cash and cash equivalents at the end of the period | 2,701 | 2,407 | 3,815 |
Supplemental disclosures: | |||
Interest paid | 1,190 | 1,048 | 1,102 |
Income taxes (received) paid, net | $ (95) | $ 143 | $ (30) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies Nature of Operations Toyota Motor Credit Corporation (“TMCC”) is wholly-owned by Toyota Financial Services Americas Corporation (“TFSA”), a California corporation, which is a wholly-owned subsidiary of Toyota Financial Services Corporation (“TFSC”), a Japanese corporation. TFSC, in turn, is a wholly-owned subsidiary of Toyota Motor Corporation (“TMC”), a Japanese corporation. TFSC manages TMC’s worldwide financial services operations. References herein to “we”, “our”, and “us” denote Toyota Motor Credit Corporation and its consolidated subsidiaries. TMCC is marketed under the brands of Toyota Financial Services and Lexus Financial Services. We provide a variety of finance and insurance products to authorized Toyota (including Scion) and Lexus dealers or dealer groups and, to a lesser extent, other domestic and import franchise dealers (collectively referred to as “dealers”) and their customers in the United States of America (excluding Hawaii) (the “U.S.”) and Puerto Rico. Our business is substantially dependent upon the sale of Toyota, Lexus and Scion vehicles. TMC has announced that vehicles currently manufactured under the Scion brand will be transitioning to the Toyota brand in August 2016. Our products fall primarily into the following product categories: · Finance - We acquire retail installment sales contracts from dealers in the U.S. and Puerto Rico (“retail contracts”) and leasing contracts accounted for as either operating leases (“lease contracts”) or direct finance leases from dealers in the U.S. We collectively refer to our retail and lease contracts as the “consumer portfolio”. We also provide dealer financing, including wholesale financing, working capital loans, revolving lines of credit and real estate financing to dealers in the U.S. and Puerto Rico. We collectively refer to our dealer financing portfolio as the “dealer portfolio”. · Insurance - Through Toyota Motor Insurance Services, Inc., a wholly-owned subsidiary, and its insurance company subsidiaries (collectively referred to as “TMIS”), we provide marketing, underwriting, and claims administration for products that cover certain risks of vehicle dealers and their customers. We also provide coverage and related administrative services to certain of our affiliates in the U.S. Our primary finance operations are located in the U.S. and Puerto Rico with earning assets principally sourced through Toyota and Lexus dealers. As of March 31, 2016, approximately 22 percent of retail and lease contracts were concentrated in California, 11 percent in Texas, 8 percent in New York, and 5 percent in New Jersey. Our insurance operations are located in the U.S. As of March 31, 2016, approximately 26 percent of insurance policies and contracts were concentrated in California, 7 percent in New York and 5 percent in New Jersey. Any material adverse changes to the economies or applicable laws in these states could have an adverse effect on our financial condition and results of operations. Basis of Presentation Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain prior period amounts have been reclassified to conform to the current year presentation. Related party transactions presented in the Consolidated Financial Statements are disclosed in Note 15 – Related Party Transactions. Note 1 – Summary of Significant Accounting Policies (Continued) Principles of Consolidation The consolidated financial statements include the accounts of TMCC, its wholly-owned subsidiaries and all variable interest entities (“VIE”) of which we are the primary beneficiary. All intercompany transactions and balances have been eliminated. Variable Interest Entities A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. The primary beneficiary of a VIE is the party with both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE. To assess whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider all the facts and circumstances including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes identifying the activities that most significantly impact the VIE’s economic performance and identifying which party, if any, has power over those activities. In general, the party that makes the most significant decisions affecting the VIE is determined to have the power to direct the activities of a VIE. To assess whether we have the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity interests, servicing rights and fee arrangements, and any other variable interests in the VIE. If we determine that we are the party with the power to make the most significant decisions affecting the VIE, and we have an obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE, then we consolidate the VIE. We perform ongoing reassessments, usually quarterly, of whether we are the primary beneficiary of a VIE. The reassessment process considers whether we have acquired or divested the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. We also reconsider whether entities previously determined not to be VIEs have become VIEs, based on new events, and therefore could be subject to the VIE consolidation framework. See Note 10 – Variable Interest Entities for additional discussion and disclosure. Note 1 – Summary of Significant Accounting Policies (Continued) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of inherent uncertainty involved in making estimates, actual results could differ from those estimates and assumptions. The accounting estimates that are most important to our business are the determination of residual value relating to our investments in operating leases and the allowance for credit losses as well as estimates related to the fair value of our derivative instruments and marketable securities. Sale of Commercial Finance Business In December 2014, we entered into an agreement for the sale of certain assets and liabilities relating to our industrial equipment retail, lease and dealer portfolios (hereinafter the “commercial finance business” or “disposal group”) to Toyota Industries Commercial Finance, Inc. (“TICF”), a newly-formed subsidiary of Toyota Industries Corporation, which forms part of the group of companies known as the Toyota Group and is a related party to TMCC. As of August 31, 2015, we reclassified our commercial finance business to held-for-sale under Accounting Standard Codification 360, Property, Plant, and Equipment, We initially measure a long-lived asset or disposal group that is classified as held-for-sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale. We assess the fair value of a long-lived asset or disposal group, less any costs to sell, each reporting period it remains classified as held-for-sale. We report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held-for-sale. On October 1, 2015, we completed the sale of our commercial finance business to TICF. The sale resulted in cash proceeds of $2.3 billion, which are expected to be utilized for general corporate purposes, including the purchase of retail and lease contracts and the payment of debt. The transaction resulted in a gain of $197 million that is reflected in our results of operations for fiscal 2016. As the sale of our commercial finance business did not represent a strategic shift that will have a major effect on our operations and financial results, it did not meet the criteria to be presented as a discontinued operation. Revenue Recognition Retail and Dealer Financing Revenues Revenues associated with retail and dealer financing are recognized so as to approximate a constant effective yield over the contract term. Incremental direct fees and costs incurred in connection with the acquisition of retail contracts and dealer financing receivables, including incentive and rate participation payments made to vehicle dealers, are capitalized and amortized so as to approximate a constant effective yield over the term of the related contracts. Payments received on affiliate sponsored special rate programs (“subvention”) are deferred and recognized to approximate a constant effective yield over the term of the related contracts. Included in financing revenues are other fees, including late fees and other service charges, the amounts of which are not significant to total financing revenues. Note 1 – Summary of Significant Accounting Policies (Continued) Operating Lease Revenues Operating lease revenues are recorded to income on a straight-line basis over the term of the lease. Incremental direct fees and costs received or paid in connection with the acquisition of operating leases, including incentive and rate participation payments made to dealers and acquisition fees collected from customers, are capitalized or deferred and amortized on a straight-line basis over the term of the related contracts. Payments received on subvention programs are deferred and recognized on a straight-line basis over the term of the related contracts. Operating lease revenue is recorded net of sales taxes collected from customers. Included in operating lease revenues are other fees, including late fees and other service charges, the amounts of which are not significant to total operating lease revenue. Direct Finance Lease Revenues Direct finance lease revenues are recognized over the lease term so as to approximate a constant effective yield on the outstanding net investment. Incremental direct costs and fees paid or received in connection with the acquisition of direct finance leases, including incentive and rate participation payments made to dealers and acquisition fees collected from customers, are capitalized or deferred and amortized to approximate a constant effective yield over the term of the related contracts. Payments received on subvention programs are deferred and recognized to approximate a constant effective yield over the term of the related contracts. Included in direct finance lease revenues are other fees, including late fees and other service charges, the amounts of which are not significant to total direct finance lease revenue. Direct finance lease revenues are reported in Retail revenues in the Consolidated Statement of Income. Insurance Earned Premiums and Contract Revenues Revenues from providing coverage under various contractual agreements are recognized over the term of the coverage in relation to the timing and level of anticipated claims and administrative expenses. Revenues from insurance policies, net of premiums ceded to reinsurers, are earned over the terms of the respective policies in proportion to the estimated loss development. Management relies on historical loss experience as a basis for establishing earnings factors used to recognize revenue over the term of the contract or policy. The portion of premiums and contract revenues applicable to the unexpired terms of the agreements is recorded as unearned insurance premiums and contract revenues. Agreements sold range in term from 3 to 120 months. Certain costs of acquiring new agreements, consisting primarily of dealer commissions and premium taxes, are deferred and amortized over the term of the related policies on the same basis as revenues are earned. The effect of subsequent cancellations is recorded as an offset to unearned insurance premiums and contract revenues. Service commissions and fees are recognized over the term of the coverage in relation to the timing of services performed. Depreciation on Operating Leases Depreciation on operating leases is recognized using the straight-line method over the lease term, typically two to five years. The depreciable basis is the original cost of the vehicle less the estimated residual value of the vehicle at the end of the lease term. During the lease term, adjustments to depreciation expense reflecting revised estimates of expected residual values at the end of the lease terms are recorded prospectively on a straight-line basis. Note 1 – Summary of Significant Accounting Policies (Continued) Allowance for Credit Losses We maintain an allowance for credit losses to cover probable and estimable losses on our finance receivables and investments in operating leases resulting from the failure of customers or dealers to make contractual payments. Management evaluates the allowance at least quarterly, considering a variety of factors and assumptions to determine whether the allowance is considered adequate to cover probable and estimable losses incurred as of the balance sheet date. The allowance for credit losses is management’s estimate of the amount of probable incurred credit losses in our existing finance receivables and investment in operating leases portfolios. Management develops and documents the allowance for credit losses on finance receivables based on three portfolio segments. We also separately develop and document the allowance for credit losses for investments in operating leases. Investments in operating leases are not within the scope of accounting guidance governing the disclosure of portfolio segments. The determination of portfolio segments is based primarily on the qualitative consideration of the nature of our business operations and the characteristics of the underlying finance receivables. Until October 1, 2015, the three portfolio segments within finance receivables, net were: · Retail Loan Portfolio Segment – The retail loan portfolio segment consists of retail contracts acquired from dealers in the U.S. and Puerto Rico (“retail contracts”). Under a retail contract, we are granted a security interest in the underlying collateral which consists primarily of Toyota, Scion or Lexus vehicles. Based on the common risk characteristics associated with the finance receivables, the retail loan portfolio segment is considered a single class of finance receivable. · Commercial Portfolio Segment – The commercial portfolio segment consists of commercial contracts (“commercial loan contracts”) and leasing contracts accounted for as direct finance leases acquired from commercial truck and industrial equipment dealers in the U.S. Under commercial loan and direct finance leases, we are granted a security interest in the underlying collateral which consists of various types of commercial trucks and industrial equipment. Based on the common risk characteristics associated with the finance receivables and the similarity of the credit risk with respect to the two types of contracts, the commercial portfolio segment is considered a single class of finance receivable. · Dealer Products Portfolio Segment – The dealer products portfolio segment consists of wholesale financing, working capital loans, revolving lines of credit and real estate loans to dealers in the U.S. and Puerto Rico. Wholesale financing is primarily collateralized by new or used vehicle inventory with the outstanding balance fluctuating based on the level of inventory. Real estate loans are collateralized by the underlying real estate, are underwritten primarily on a loan-to-value basis and are typically for a fixed term. Working capital loans and revolving lines of credit are granted for working capital purposes and are secured by dealership assets. Based on the risk characteristics associated with the underlying finance receivables, the dealer products portfolio segment consists of three classes of finance receivables: wholesale, real estate, and working capital. On October 1, 2015, we completed the sale of our commercial finance business to TICF. As a result of this sale, subsequent to October 1, 2015, we no longer have the commercial portfolio segment and a portion of the dealer products portfolio segment related to the commercial finance business. Note 1 – Summary of Significant Accounting Policies (Continued) Methodology Used to Develop the Allowance for Credit Losses Retail Loan Portfolio Segment and Investments in Operating Leases The level of credit risk in our retail loan portfolio segment and our investments in operating leases is influenced primarily by two factors: default frequency and loss severity, which in turn are influenced by various factors such as economic conditions, the used vehicle market, purchase quality mix, contract term length, and operational changes. We evaluate the retail loan portfolio segment and investments in operating leases using methodologies that include roll rate, credit risk grade/tier, and vintage analysis. We review and analyze external factors, including changes in economic conditions, actual or perceived quality, safety and reliability of Toyota, Lexus and Scion vehicles, unemployment levels, the used vehicle market, and consumer behavior. In addition, internal factors, such as purchase quality mix and operational changes are also considered in the analyses. We utilize a loss emergence period assumption in developing our allowance for credit losses. This assumption represents the average length of time between when a loss event first occurs and when the account is charged off. This time period starts when the consumer begins to experience financial difficulty. Commercial Portfolio Segment The level of credit risk in our commercial portfolio segment is influenced primarily by two factors: default frequency and loss severity, which in turn are influenced by various economic factors, the used equipment and truck markets, purchase quality mix, contract term length, and operational changes. We evaluate the commercial portfolio segment using methodologies that include product grouping analysis, historical loss and loss frequency by product. We review and analyze external factors, including changes in economic conditions, unemployment level, and the used equipment and truck markets. In addition, internal factors, such as purchase quality mix and operational changes are also considered in the analyses. Dealer Products Portfolio Segment The level of credit risk in our dealer products portfolio segment is influenced primarily by the financial strength of dealers within our portfolio, dealer concentration, collateral quality, and other economic factors. The financial strength of dealers within our portfolio is influenced by, among other factors, general economic conditions, the overall demand for new and used vehicles and the financial condition of automotive manufacturers in general. We evaluate the dealer portfolio by aggregating dealer financing receivables into loan-risk pools, which are determined based on the risk characteristics of the loan (e.g. secured by vehicles, real estate or dealership assets). We analyze the loan-risk pools using internally developed risk ratings for each dealer. We also utilize a loss emergence period assumption in developing our allowance for credit losses. The loss emergence period represents the time period between the date at which the default is estimated to have occurred and the ultimate confirmation of that default through charge-off. In addition, field operations management and our special assets group are consulted each quarter to determine if any specific dealer loan is considered impaired. If impaired loans are identified, specific reserves are established, as appropriate, and the loan is removed from the loan-risk pool for separate monitoring. Note 1 – Summary of Significant Accounting Policies (Continued) Accounting for the Allowance for Credit Losses and Impaired Receivables The majority of the allowance for credit losses covers estimated losses on the retail loan portfolio segment which is collectively evaluated for impairment. The remainder of the allowance for credit losses covers the estimated losses on investments in operating leases, the dealer products portfolio segment, and the commercial portfolio segment. Within the dealer products portfolio segment, we establish specific reserves to cover the estimated losses on individual impaired loans (including loans modified in a troubled debt restructuring). The specific reserves are assessed based on discounted cash flows, the loan’s observable market price, or the fair value of the underlying collateral if the loan is collateral dependent. Troubled debt restructurings in the retail loan and commercial portfolio segments are aggregated with their respective portfolio segments when determining the allowance for credit losses. These loans are homogenous in nature and insignificant for individual evaluation and we have determined that the allowance for credit losses for each of the retail loan and commercial portfolio segments would not be materially different if they had been individually evaluated for impairment. Increases to the allowance for credit losses are accompanied by corresponding charges to the Provision for credit losses on the Consolidated Statement of Income. The uncollectible portion of finance receivables and investments in operating leases is charged to the 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. In the event we repossess the collateral, the receivable is charged-off and we record the collateral at its estimated fair value less costs to sell and report it in Other assets in the Consolidated Balance Sheet. Recoveries of finance receivables and investments in operating leases previously charged off as uncollectible are credited to the allowance for credit losses. See Note 6 – Allowance for Credit Losses for additional discussion and disclosure. Insurance Losses and Loss Adjustment Expenses Insurance losses and loss adjustment expenses include amounts paid and accrued for loss events that are known and have been recorded as claims, estimates of losses incurred but not reported that are based on actuarial estimates and historical loss development patterns, and loss adjustment expenses that are expected to be incurred in connection with settling and paying these claims. Accruals for unpaid losses, losses incurred but not reported, and loss adjustment expenses are included in Other liabilities in the Consolidated Balance Sheet. These accruals arising from contractual agreements entered into by TMIS are not significant as of March 31, 2016 and 2015. Estimated liabilities are reviewed regularly, and we recognize any adjustments in the periods in which they are determined. If anticipated losses, loss adjustment expenses, and unamortized acquisition and maintenance costs exceed the recorded unearned premium, a premium deficiency is recognized by first charging any unamortized acquisition costs to expense and then by recording a liability for any excess deficiency. Cash Equivalents Cash equivalents represent highly liquid investments with maturities of three months or less at purchase and may include money market instruments, commercial paper, certificates of deposit or similar instruments. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents primarily represent proceeds from certain debt issuances for which the use of the cash is restricted, as well as customer collections on securitized receivables to be distributed to investors as payments on the related secured debt, which are primarily related to securitization trusts. Restricted cash may also contain amounts unrelated to financing activities which are restricted as to use. There were no restricted cash equivalents as of March 31, 2016 and 2015, respectively. Note 1 – Summary of Significant Accounting Policies (Continued) Investments in Marketable Securities Investments in marketable securities consist of debt and equity securities. Debt and equity securities designated as available-for-sale (“AFS”) are recorded at fair value using quoted market prices where available with unrealized gains or losses included in accumulated other comprehensive income (“AOCI”), net of applicable taxes. Realized gains and losses are determined using either the specific identification method or first in first out method, depending on the type of investment in our portfolio. Realized investment gains and losses are reflected in Investment and other income, net in the Consolidated Statement of Income. Other-than-Temporary Impairment An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in AOCI. We conduct periodic reviews of securities in unrealized loss positions for the purpose of evaluating whether the impairment is other-than-temporary. As part of our ongoing assessment of other-than-temporary impairment (“OTTI”), we consider a variety of factors. Such factors include the length of time and extent to which the market value of a security has been less than amortized cost, adverse conditions specifically related to the industry, geographic area or financial condition of the issuer or underlying collateral of the security and the volatility of the fair value changes. An OTTI loss with respect to debt securities must be recognized in earnings if we have the intent to sell the debt security or it is more likely than not that we will be required to sell the debt security before recovery of its amortized cost basis. If we have the intent to sell, the cost basis of the security is written down to fair value and the write down is reflected in Investment and other income, net in the Consolidated Statement of Income. If we have no intent to sell and we believe that it is more likely than not we will not be required to sell these securities prior to recovery, the credit loss component of the unrealized losses is recognized in Investment and other income, net in the Consolidated Statement of Income, while the remainder of the loss is recognized in AOCI. The credit loss component recognized in Investment and other income, net in the Consolidated Statement of Income is identified as the portion of the amortized cost of the security not expected to be collected over the remaining term as projected using a cash flow analysis for debt securities. We perform periodic reviews of our AFS equity securities to determine whether unrealized losses are temporary in nature. We consider our intent and ability to hold the security for a period of time sufficient for recovery of fair value. Where we lack that intent or ability, the equity security’s decline in fair value is deemed to be other-than-temporary. If losses are considered to be other-than-temporary, the cost basis of the security is written down to fair value and the write down is reflected in Investment and other income, net in the Consolidated Statement of Income. See Note 3 – Investments in Marketable Securities for additional discussion and disclosure. Note 1 – Summary of Significant Accounting Policies (Continued) Finance Receivables Our finance receivables consist of the retail loan, the commercial and the dealer products portfolio segments. Finance receivables recorded on our balance sheet include accrued interest and deferred fees and costs, net of the allowance for credit losses, certain other dealer funds and deferred income. Direct finance leases are recorded on our balance sheet as the aggregate future minimum lease payments, contractual residual value of the leased vehicle, and deferred income. Finance receivables are classified as held-for-investment if the Company has the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. As of March 31, 2016 and 2015, all finance receivables were classified as held-for-investment. Impaired Finance Receivables A finance receivable is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the terms of the contract. Factors such as payment history, compliance with terms and conditions of the underlying loan agreement and other subjective factors related to the financial stability of the borrower are considered when determining whether a finance receivable is impaired. Troubled Debt Restructurings A troubled debt restructuring occurs when a finance receivable is modified through a concession to a borrower experiencing financial difficulty. A finance receivable modified under a troubled debt restructuring is considered to be impaired. In addition, troubled debt restructurings include finance receivables for which the customer has filed for bankruptcy protection. For such finance receivables, we no longer have the ability to modify the terms of the agreement without the approval of the bankruptcy court and the court may impose term modifications that we are obligated to accept. Nonaccrual Policy Retail Loan and Commercial Portfolio Segments The accrual of revenue is discontinued at the time a retail loan or commercial portfolio segment finance receivable is determined to be uncollectible. These finance receivables may be restored to accrual status only when a customer settles all past due deficiency balances and future payments are reasonably assured. For these finance receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. Dealer Products Portfolio Segment Impaired receivables in the dealer product portfolio segment are placed on nonaccrual status if full payment of principal or interest is in doubt, or when principal or interest is 90 days or more past due. Interest accrued, but not collected at the date a receivable is placed on nonaccrual status, is reversed against interest income. In addition, the amortization of net deferred fees is suspended. Interest income on nonaccrual receivables is recognized only to the extent it is received in cash. Finance receivables are restored to accrual status only when interest and principal payments are brought current and future payments are reasonably assured. Finance receivables are charged off against the allowance for credit losses when the loss has been realized. See Note 4 – Finance Receivables, Net for additional discussion and disclosure. Note 1 – Summary of Significant Accounting Policies (Continued) Investments in Operating Leases We record our investments in operating leases at acquisition cost, net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses. Nonaccrual Policy The accrual of revenue on investments in operating leases is discontinued at the time an account is determined to be uncollectible. Operating leases may be restored to accrual status only when a customer settles all past due deficiency balances and future payments are reasonably assured. For investments in operating leases in non-accrual status, subsequent operating lease revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. Determination of Residual Value Residual values of lease contracts are estimated at lease inception by examining external industry data, the anticipated Toyota, Lexus and Scion product pipeline and our own experience |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 2 – 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. March 31, 2016 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Cash equivalents: Money market instruments $ 360 $ 1,209 $ - $ - $ 1,569 U.S. government and agency obligations 450 105 - - 555 Certificates of deposit - 500 - - 500 Cash equivalents total 810 1,814 - - 2,624 Available-for-sale securities: Debt instruments: U.S. government and agency obligations 2,777 56 2 - 2,835 Municipal debt securities - 11 - - 11 Certificates of deposit 300 200 - - 500 Commercial paper - 50 - - 50 Corporate debt securities 228 252 7 - 487 Mortgage-backed securities: U.S. government agency - 59 - - 59 Non-agency residential - - 3 - 3 Non-agency commercial - - 42 - 42 Asset-backed securities - - 37 - 37 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II - 178 - - 178 U.S. government sector fund - 358 - - 358 Municipal sector fund - 19 - - 19 Investment grade corporate sector fund - 246 - - 246 High-yield sector fund - 66 - - 66 Real return sector fund - 212 - - 212 Mortgage sector fund - 302 - - 302 Asset-backed securities sector fund - 124 - - 124 Emerging market sector fund - 102 - - 102 International sector fund - 140 - - 140 Total return bond funds 380 - - - 380 Equity mutual fund 389 - - - 389 Available-for-sale securities total 4,074 2,375 91 - 6,540 Derivative assets: Foreign currency swaps - 329 - - 329 Interest rate swaps - 601 39 - 640 Interest rate floors - 4 - - 4 Counterparty netting and collateral - - - (905 ) (905 ) Derivative assets total - 934 39 (905 ) 68 Assets at fair value 4,884 5,123 130 (905 ) 9,232 Derivative liabilities: Foreign currency swaps - (821 ) (14 ) - (835 ) Interest rate swaps - (475 ) - - (475 ) Counterparty netting and collateral - - - 1,303 1,303 Liabilities at fair value - (1,296 ) (14 ) 1,303 (7 ) Net assets at fair value $ 4,884 $ 3,827 $ 116 $ 398 $ 9,225 Note 2 – Fair Value Measurements (Continued) Derivative assets were reduced by a counterparty credit valuation adjustment of $2 million and $1 million as of March 31, 2016 and 2015, respectively. Derivative liabilities were reduced by a non-performance credit valuation adjustment of less than $1 million as of March 31, 2015. March 31, 2015 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Cash equivalents: Money market instruments $ 249 $ 820 $ - $ - $ 1,069 U.S. government and agency obligations 40 - - - 40 Certificates of deposit - 1,105 - - 1,105 Cash equivalents total 289 1,925 - - 2,214 Available-for-sale securities: Debt instruments: U.S. government and agency obligations 4,215 142 2 - 4,359 Municipal debt securities - 12 - - 12 Certificates of deposit - 175 - - 175 Commercial paper 37 - - - 37 Corporate debt securities - 131 14 - 145 Mortgage-backed securities: U.S. government agency - 59 - - 59 Non-agency residential - - 4 - 4 Non-agency commercial - - 44 - 44 Asset-backed securities - - 39 - 39 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II - 148 - - 148 Short-term sector fund - 37 - - 37 U.S. government sector fund - 335 - - 335 Municipal sector fund - 20 - - 20 Investment grade corporate sector fund - 268 - - 268 High-yield sector fund - 55 - - 55 Real return sector fund - 232 - - 232 Mortgage sector fund - 399 - - 399 Asset-backed securities sector fund - 72 - - 72 Emerging market sector fund - 71 - - 71 International sector fund - 160 - - 160 Equity mutual fund 460 - - - 460 Available-for-sale securities total 4,712 2,316 103 - 7,131 Derivative assets: Foreign currency swaps - 210 7 - 217 Interest rate swaps - 470 1 - 471 Counterparty netting and collateral - - - (635 ) (635 ) Derivative assets total - 680 8 (635 ) 53 Assets at fair value 5,001 4,921 111 (635 ) 9,398 Derivative liabilities: Foreign currency swaps - (1,888 ) - - (1,888 ) Interest rate swaps - (386 ) - - (386 ) Counterparty netting and collateral - - - 2,184 2,184 Liabilities at fair value - (2,274 ) - 2,184 (90 ) Net assets at fair value $ 5,001 $ 2,647 $ 111 $ 1,549 $ 9,308 Note 2 – Fair Value Measurements (Continued) Transfers between levels of the fair value hierarchy are recognized at the end of their respective reporting periods. During fiscal 2016, $85 million was transferred from Level 2 to Level 1, $47 million was transferred from Level 1 to Level 2 and $4 million was transferred from Level 3 to Level 2. During fiscal 2015, certain corporate debt securities were transferred from Level 2 to Level 3. The transfers in fiscal 2016 and 2015 were due to changes in the transparency of inputs for determination of fair value for these instruments. The following tables summarize the reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs: Year Ended March 31, 2016 Total net assets Available-for-sale securities Derivative instruments, net (liabilities) U.S. Total Total government Corporate Mortgage- Asset- available- Interest Foreign derivative and agency debt backed backed for-sale rate currency assets obligations securities securities securities securities swaps swaps (liabilities) Fair value, April 1, 2015 $ 2 $ 14 $ 48 $ 39 $ 103 $ 1 $ 7 $ 8 $ 111 Total gains (losses) Included in earnings - - - - - 34 (13 ) 21 21 Included in other comprehensive income - (1 ) (2 ) (1 ) (4 ) - - - (4 ) Purchases, issuances, sales, and settlements Purchases - - 2 5 7 - - - 7 Issuances - - - - - - - - - Sales - (2 ) - (1 ) (3 ) - - - (3 ) Settlements - - (3 ) (5 ) (8 ) 4 (8 ) (4 ) (12 ) Transfers in to Level 3 - - - - - - - - - Transfers out of Level 3 - (4 ) - - (4 ) - - - (4 ) Fair value, March 31, 2016 $ 2 $ 7 $ 45 $ 37 $ 91 $ 39 $ (14 ) $ 25 $ 116 The amount of total gains (losses) included in earnings attributable to assets held at the reporting date $ 34 $ (13 ) $ 21 $ 21 Year Ended March 31, 2015 Total net assets Available-for-sale securities Derivative instruments, net (liabilities) U.S. Total Total government Corporate Mortgage- Asset- available- Interest Foreign derivative and agency debt backed backed for-sale rate currency assets obligations securities securities securities securities swaps swaps (liabilities) Fair value, April 1, 2014 $ 2 $ 12 $ 48 $ 27 $ 89 $ 3 $ 70 $ 73 $ 162 Total (losses) Included in earnings - - - - - - (54 ) (54 ) (54 ) Included in other comprehensive income - - 2 - 2 - - - 2 Purchases, issuances, sales, and settlements Purchases - 3 12 22 37 - - - 37 Issuances - - - - - - - - - Sales - (3 ) (7 ) (5 ) (15 ) - - - (15 ) Settlements - - (7 ) (5 ) (12 ) (2 ) (9 ) (11 ) (23 ) Transfers in to Level 3 - 2 - - 2 - - - 2 Transfers out of Level 3 - - - - - - - - - Fair value, March 31, 2015 $ 2 $ 14 $ 48 $ 39 $ 103 $ 1 $ 7 $ 8 $ 111 The amount of total (losses) included in earnings attributable to assets held at the reporting date $ - $ (54 ) $ (54 ) $ (54 ) Note 2 – Fair Value Measurements (Continued) 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 March 31, 2016 and 2015. 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 change in the fair value measurements of these assets and liabilities, were not significant to our Consolidated Balance Sheet or Consolidated Statement of Income as of and for the years ended March 31, 2016 and 2015. Note 2 – Fair Value Measurements (Continued) Financial Instruments The following tables provide information about assets and liabilities not carried at fair value on a recurring basis on our Consolidated Balance Sheet: March 31, 2016 Carrying Total Fair value Level 1 Level 2 Level 3 Value Financial assets Finance receivables, net Retail loan $ 49,865 $ - $ - $ 49,551 $ 49,551 Wholesale 9,160 - - 9,207 9,207 Real estate 4,590 - - 4,277 4,277 Working capital 1,888 - - 1,894 1,894 Financial liabilities Commercial paper $ 26,608 $ - $ 26,608 $ - $ 26,608 Unsecured notes and loans payable 52,978 - 52,913 1,387 54,300 Secured notes and loans payable 14,139 - - 14,125 14,125 March 31, 2015 Carrying Total Fair value Level 1 Level 2 Level 3 Value Financial assets Finance receivables, net Retail loan $ 49,734 $ - $ - $ 49,887 $ 49,887 Commercial 217 - - 223 223 Wholesale 9,123 - - 9,176 9,176 Real estate 4,602 - - 4,564 4,564 Working capital 1,815 - - 1,804 1,804 Financial liabilities Commercial paper $ 27,006 $ - $ 27,006 $ - $ 27,006 Unsecured notes and loans payable 52,388 - 53,174 634 53,808 Secured notes and loans payable 10,837 - - 10,832 10,832 The carrying value of each class of finance receivables includes accrued interest and deferred fees and costs, net of deferred income and the allowance for credit losses. The finance receivables, net amount excludes related party transactions, for which the fair value approximates the carrying value, of $128 million and $94 million at March 31, 2016 and 2015, respectively, and direct finance leases of $308 million at March 31, 2015. The majority of our direct finance leases were related to the commercial finance business, which was sold on October 1, 2015. As a result, direct finance leases excluded from finance receivables, net were not significant at March 31, 2016. The carrying value of unsecured notes and loans payable represents the sum of unsecured notes and loans payable and carrying value adjustment as described in Note 9 – Debt of the Notes to Consolidated Financial Statements. |
Investments in Marketable Secur
Investments in Marketable Securities | 12 Months Ended |
Mar. 31, 2016 | |
Marketable Securities [Abstract] | |
Investments in Marketable Securities | Note 3 – Investments in Marketable Securities We classify all of our investments in marketable securities as available-for-sale. The amortized cost and estimated fair value of investments in marketable securities and related unrealized gains and losses were as follows: March 31, 2016 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale securities: Debt instruments: U.S. government and agency obligations $ 2,833 $ 3 $ (1 ) $ 2,835 Municipal debt securities 10 1 - 11 Certificates of deposit 500 - - 500 Commercial paper 50 - - 50 Corporate debt securities 482 7 (2 ) 487 Mortgage-backed securities: U.S. government agency 57 2 - 59 Non-agency residential 2 1 - 3 Non-agency commercial 42 1 (1 ) 42 Asset-backed securities 38 - (1 ) 37 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II 178 - - 178 U.S. government sector fund 353 6 (1 ) 358 Municipal sector fund 19 - - 19 Investment grade corporate sector fund 243 8 (5 ) 246 High-yield sector fund 67 - (1 ) 66 Real return sector fund 201 11 - 212 Mortgage sector fund 297 5 - 302 Asset-backed securities sector fund 117 8 (1 ) 124 Emerging market sector fund 101 1 - 102 International sector fund 145 - (5 ) 140 Total return bond funds 376 4 - 380 Equity mutual fund 162 227 - 389 Total investments in marketable securities $ 6,273 $ 285 $ (18 ) $ 6,540 Note 3 – Investments in Marketable Securities (Continued) March 31, 2015 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale securities: Debt instruments: U.S. government and agency obligations $ 4,357 $ 3 $ (1 ) $ 4,359 Municipal debt securities 10 2 - 12 Certificates of deposit 175 - - 175 Commercial paper 37 - - 37 Corporate debt securities 138 7 - 145 Mortgage-backed securities: U.S. government agency 57 2 - 59 Non-agency residential 3 1 - 4 Non-agency commercial 43 1 - 44 Asset-backed securities 39 - - 39 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II 148 - - 148 Short-term sector fund 35 2 - 37 U.S. government sector fund 311 24 - 335 Municipal sector fund 19 1 - 20 Investment grade corporate sector fund 256 15 (3 ) 268 High-yield sector fund 50 6 (1 ) 55 Real return sector fund 235 - (3 ) 232 Mortgage sector fund 390 9 - 399 Asset-backed securities sector fund 63 9 - 72 Emerging market sector fund 73 - (2 ) 71 International sector fund 146 14 - 160 Equity mutual fund 190 270 - 460 Total investments in marketable securities $ 6,775 $ 366 $ (10 ) $ 7,131 The Fixed income mutual funds, exclusive of the Total return bond funds, 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. The Total return bond funds are investments in actively traded open-end mutual funds. Redemptions are subject to normal terms and conditions as described in each fund’s prospectus. Note 3 – Investments in Marketable Securities (Continued) Unrealized Losses on Securities Investments in marketable securities in a consecutive loss position for less than twelve months and for greater than twelve months were not significant at March 31, 2016 and 2015. Realized Gains and Losses on Securities The following table represents realized gains and losses by transaction type: Years Ended March 31, 2016 2015 2014 Available-for-sale securities: Realized gains on sales $ 59 $ 71 $ 59 Realized losses on sales $ (3 ) $ (1 ) $ (4 ) Other-than-temporary impairment $ (50 ) $ - $ (55 ) The other-than-temporary impairment write-downs of $50 million and $55 million during the years ended March 31, 2016 and 2014, respectively, were related to our fixed income mutual funds. Other-than-temporary impairment write-downs were not significant during the year ended March 31, 2015. Contractual Maturities The amortized cost, fair value and contractual maturities of available-for-sale debt instruments 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. March 31, 2016 Amortized Fair Value Available-for-sale debt instruments: Due within 1 year $ 2,664 $ 2,665 Due after 1 year through 5 years 1,044 1,047 Due after 5 years through 10 years 71 72 Due after 10 years 96 99 Mortgage-backed and asset-backed securities 1 139 141 Total $ 4,014 $ 4,024 1 |
Finance Receivables, Net
Finance Receivables, Net | 12 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Finance Receivables, Net | Note 4 – Finance Receivables, Net Finance receivables, net consist of retail receivables and dealer financing, which includes accrued interest and deferred fees and costs, net of the allowance for credit losses and deferred income. Finance receivables, net include 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 10 – 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: March 31, March 31, 2016 2015 Retail receivables $ 36,020 $ 39,141 Securitized retail receivables 14,343 11,682 Dealer financing 15,899 15,744 66,262 66,567 Deferred origination (fees) and costs, net 663 646 Deferred income (868 ) (911 ) Allowance for credit losses Retail and securitized retail receivables (289 ) (301 ) Dealer financing (132 ) (108 ) Total allowance for credit losses (421 ) (409 ) Finance receivables, net $ 65,636 $ 65,893 On October 1, 2015, $1.1 billion of finance receivables, net related to our commercial finance business were sold to TICF, consisting primarily of $546 million of commercial loan receivables, $490 million of wholesale receivables, $53 million of real estate receivables, and $16 million of working capital receivables. Contractual maturities on retail receivables and dealer financing are as follows: Contractual maturities Years ending March 31, Retail Dealer financing 2017 $ 14,337 $ 11,773 2018 12,902 1,608 2019 10,399 906 2020 7,338 532 2021 4,006 501 Thereafter 1,381 579 Total $ 50,363 $ 15,899 Retail receivables presented in the previous tables include direct finance leases which were primarily related to our commercial finance business. Direct finance leases totaled $308 million at March 31, 2015. The amount of direct finance leases was insignificant at March 31, 2016. A significant portion of our finance receivables has historically settled prior to contractual maturity. Contractual maturities shown above should not be considered indicative of future cash collections. Note 4 – 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 and Commercial Portfolio Segments Retail loan and commercial portfolio segments each consist of one class of finance receivables. While we use various credit quality metrics to develop our allowance for credit losses on the retail loan and commercial portfolio segments, 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 for each class of finance receivables within the retail loan and commercial portfolio segments are segregated into aging categories based on the number of days outstanding. The aging for each class of finance receivables is updated monthly. As discussed in Note 1 – Summary of Significant Accounting Policies, on October 1, 2015, we completed the sale of our commercial finance business to TICF. As a result of this sale, subsequent to October 1, 2015, we no longer have a commercial portfolio segment. Dealer Products Portfolio Segment For the three classes of finance receivables within the dealer products portfolio segment (wholesale, real estate and working capital), 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 · Default – Account is not currently meeting contractual obligations or we have temporarily waived certain contractual requirements Note 4 – Finance Receivables, Net (Continued) The tables below present each credit quality indicator by class of finance receivables: Retail Loan Commercial March 31, March 31, March 31, March 31, 2016 2015 2016 2015 Aging of finance receivables: Current $ 49,590 $ 49,684 $ - $ 511 30-59 days past due 584 467 - 8 60-89 days past due 129 100 - 2 90 days or greater past due 60 51 - - Total $ 50,363 $ 50,302 $ - $ 521 Wholesale Real Estate Working Capital March 31, March 31, March 31, March 31, March 31, March 31, 2016 2015 2016 2015 2016 2015 Credit quality indicators: Performing $ 8,099 $ 7,993 $ 3,822 $ 3,782 $ 1,686 $ 1,643 Credit Watch 1,041 1,137 763 842 229 176 At Risk 113 60 109 37 17 32 Default 9 36 10 4 1 2 Total $ 9,262 $ 9,226 $ 4,704 $ 4,665 $ 1,933 $ 1,853 Note 4 – Finance Receivables, Net (Continued) Impaired Finance Receivables The following table summarizes the information related to our impaired loans by class of finance receivables: Impaired Individually Evaluated Finance Receivables Unpaid Principal Balance Allowance March 31, March 31, March 31, 2016 2015 2016 2015 2016 2015 Impaired account balances individually evaluated for impairment with an allowance: Wholesale $ 98 $ 76 $ 98 $ 76 $ 9 $ 14 Real estate 119 52 119 52 15 10 Working capital 37 34 37 34 30 31 Total $ 254 $ 162 $ 254 $ 162 $ 54 $ 55 Impaired account balances individually evaluated for impairment without an allowance: Wholesale $ 185 $ 105 $ 185 $ 105 Real estate 98 91 98 91 Working capital 3 2 3 2 Total $ 286 $ 198 $ 286 $ 198 Impaired account balances aggregated and evaluated for impairment: Retail loan $ 226 $ 264 $ 223 $ 261 Commercial - - - - Total $ 226 $ 264 $ 223 $ 261 Total impaired account balances: Retail loan $ 226 $ 264 $ 223 $ 261 Commercial - - - - Wholesale 283 181 283 181 Real estate 217 143 217 143 Working capital 40 36 40 36 Total $ 766 $ 624 $ 763 $ 621 As of March 31, 2016 and 2015, the impaired finance receivables balance for accounts in the dealer products portfolio segment that were on nonaccrual status was $299 million and $172 million, respectively, and there were no charge-offs against the allowance for credit losses for these finance receivables. Therefore, the impaired finance receivables balance is equal to the unpaid principal balance. As of March 31, 2016 and 2015, impaired finance receivables in the retail portfolio segment recorded at the fair value of the collateral less estimated selling costs were not significant and therefore excluded from the table above. Refer to Note 6 – Allowance for Credit Losses of the Notes to Consolidated Financial Statements for details about the allowance related to the impaired account balances which are aggregated and evaluated for impairment. Note 4 – Finance Receivables, Net (Continued) The following table summarizes the average impaired loans by class of finance receivables as of the balance sheet date and the interest income recognized on these loans: Average Impaired Finance Interest Income Recognized Years Ended March 31, Years Ended March 31, 2016 2015 2016 2015 Impaired account balances individually evaluated for impairment with an allowance: Wholesale $ 86 $ 29 $ 1 $ - Real estate 93 26 2 1 Working capital 35 25 2 1 Total $ 214 $ 80 $ 5 $ 2 Impaired account balances individually evaluated for impairment without an allowance: Wholesale $ 132 $ 66 $ 3 $ 1 Real estate 92 91 4 3 Working capital 4 3 - - Total $ 228 $ 160 $ 7 $ 4 Impaired account balances aggregated and evaluated for impairment: Retail loan $ 246 $ 294 $ 18 $ 22 Commercial - 1 - - Total $ 246 $ 295 $ 18 $ 22 Total impaired account balances: Retail loan $ 246 $ 294 $ 18 $ 22 Commercial - 1 - - Wholesale 218 95 4 1 Real estate 185 117 6 4 Working capital 39 28 2 1 Total $ 688 $ 535 $ 30 $ 28 The primary source of interest income recognized on the loans in the table above is from performing troubled debt restructurings. In addition, interest income recognized using a cash-basis method of accounting during fiscal 2016 and 2015 was not significant. Note 4 – Finance Receivables, Net (Continued) Troubled Debt Restructuring For accounts not under bankruptcy protection, the amount of finance receivables modified as a troubled debt restructuring during fiscal 2016 and 2015 was not significant for each class of finance receivables. Troubled debt restructurings for non-bankrupt accounts within the retail loan class of finance receivables are comprised exclusively of contract term extensions that reduce the monthly payment due from the customer. Troubled debt restructurings for accounts within the commercial class of finance receivables consisted of contract term extensions, interest rate adjustments, or a combination of the two. For the three classes of finance receivables within the dealer products portfolio segment, troubled debt restructurings include contract term extensions, interest rate adjustments, waivers of loan covenants, or any combination of the three. Troubled debt restructurings of accounts not under bankruptcy protection did not include forgiveness of principal or interest rate adjustments during fiscal 2016 and 2015. We consider finance receivables under bankruptcy protection within the retail loan and commercial classes to be troubled debt restructurings as of the date we receive notice of a customer filing for bankruptcy protection, regardless of the ultimate outcome of the bankruptcy proceedings. The bankruptcy court may impose modifications as part of the proceedings, including interest rate adjustments and forgiveness of principal. For fiscal 2016 and 2015, the financial impact of troubled debt restructurings related to finance receivables under bankruptcy protection was not significant to our Consolidated Statement of Income and Consolidated Balance Sheet. Payment Defaults Finance receivables modified as troubled debt restructurings for which there was a subsequent payment default during fiscal 2016 and 2015, and for which the modification occurred within twelve months of the payment default, were not significant for all classes of such receivables. |
Investments in Operating Leases
Investments in Operating Leases, Net | 12 Months Ended |
Mar. 31, 2016 | |
Leases Operating [Abstract] | |
Investments in Operating Leases, Net | Note 5 – Investments in Operating Leases, Net Investments in operating leases, net consist of leases, net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses. 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 10 – 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: March 31, March 31, 2016 2015 Investments in operating leases $ 42,220 $ 37,555 Securitized investments in operating leases 3,364 1,571 45,584 39,126 Deferred origination (fees) and costs, net (190 ) (169 ) Deferred income (1,080 ) (968 ) Accumulated depreciation (7,712 ) (6,785 ) Allowance for credit losses (114 ) (76 ) Investments in operating leases, net $ 36,488 $ 31,128 On October 1, 2015, investments in operating leases related to our commercial finance business of $1.0 billion were sold to TICF. Future minimum rentals on investments in operating leases are as follows: Years ending March 31, Future minimum rentals on operating leases 2017 $ 5,523 2018 3,764 2019 1,555 2020 189 2021 17 Thereafter - Total $ 11,048 A portion of our operating lease contracts has historically terminated prior to maturity. Future minimum rentals shown above should not be considered indicative of future cash collections. As of March 31, 2016 and 2015, there was no impairment in our investment in operating leases portfolio. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Mar. 31, 2016 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses | Note 6 – Allowance for Credit Losses The following table provides information related to our allowance for credit losses on finance receivables and investments in operating leases: Years Ended March 31, 2016 2015 2014 Allowance for credit losses at beginning of period $ 485 $ 454 $ 527 Provision for credit losses 441 308 170 Transferred to held-for-sale 1 (7 ) - - Charge-offs, net of recoveries (384 ) (277 ) (243 ) Allowance for credit losses at end of period $ 535 $ 485 $ 454 1 Charge-offs are shown net of recoveries of $72 million, $86 million and $85 million for fiscal 2016, 2015 and 2014, respectively. Allowance for Credit Losses and Finance Receivables by Portfolio Segment The following tables provide information related to our allowance for credit losses and finance receivables by portfolio segment for: Year Ended March 31, 2016 Retail Loan Commercial Dealer Total Beginning balance, April 1, 2015 $ 299 $ 2 $ 108 $ 409 Charge-offs (328 ) (1 ) - (329 ) Recoveries 49 - - 49 Provisions 269 1 28 298 Transferred to held-for-sale - (2 ) (4 ) (6 ) Ending balance, March 31, 2016 $ 289 $ - $ 132 $ 421 Ending balance: Individually evaluated for impairment $ - $ - $ 54 $ 54 Ending balance: Collectively evaluated for impairment $ 289 $ - $ 78 $ 367 Finance Receivables: Ending balance, March 31, 2016 $ 50,363 $ - $ 15,899 $ 66,262 Ending balance: Individually evaluated for impairment $ - $ - $ 540 $ 540 Ending balance: Collectively evaluated for impairment $ 50,363 $ - $ 15,359 $ 65,722 The ending balance of finance receivables collectively evaluated for impairment in the table above includes approximately $226 million of finance receivables within the retail loan portfolio segment that are specifically identified as impaired. These amounts are aggregated with their respective portfolio segments when determining the allowance for credit losses as of March 31, 2016, as they are deemed to be insignificant for individual evaluation and we have determined that the allowance for credit losses is not significant and would not be materially different if the amounts had been individually evaluated for impairment. The ending balance of finance receivables for the dealer products portfolio segment collectively evaluated for impairment as of March 31, 2016 includes $982 million in finance receivables which are guaranteed by Toyota Motor Sales, U.S.A., Inc. (“TMS”) and $136 million in finance receivables which 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 TMS or such private distributors. Note 6 – Allowance for Credit Losses (Continued) Year Ended March 31, 2015 Retail Loan Commercial Dealer Total Beginning balance, April 1, 2014 $ 296 $ 2 $ 88 $ 386 Charge-offs (273 ) (2 ) (1 ) (276 ) Recoveries 61 1 1 63 Provisions 215 1 20 236 Ending balance, March 31, 2015 $ 299 $ 2 $ 108 $ 409 Ending balance: Individually evaluated for impairment $ - $ - $ 55 $ 55 Ending balance: Collectively evaluated for impairment $ 299 $ 2 $ 53 $ 354 Finance Receivables: Ending balance, March 31, 2015 $ 50,302 $ 521 $ 15,744 $ 66,567 Ending balance: Individually evaluated for impairment $ - $ - $ 360 $ 360 Ending balance: Collectively evaluated for impairment $ 50,302 $ 521 $ 15,384 $ 66,207 The ending balance of finance receivables collectively evaluated for impairment in the table above includes approximately $264 million of finance receivables within the retail loan portfolio segment that are specifically identified as impaired. These amounts are aggregated with their respective portfolio segments when determining the allowance for credit losses as of March 31, 2015, as they are deemed to be insignificant for individual evaluation and we have determined that the allowance for credit losses is not significant and would not be materially different if the amounts had been individually evaluated for impairment. The ending balance of finance receivables for the dealer products portfolio segment collectively evaluated for impairment as of March 31, 2015 includes $917 million in finance receivables which are guaranteed by TMS and $122 million in finance receivables which 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 TMS or such private distributors. Note 6 – Allowance for Credit Losses (Continued) Past Due Finance Receivables and Investments in Operating Leases The following table shows aggregate balances of finance receivables and investments in operating leases 60 or more days past due: March 31, March 31, 2016 2015 Aggregate balances 60 or more days past due Finance receivables $ 189 $ 153 Investments in operating leases 80 52 Total $ 269 $ 205 Substantially all finance receivables and investments in operating leases do not involve recourse to the dealer in the event of customer default. Finance receivables and investments in operating leases 60 or more days past due include contracts in bankruptcy and contracts greater than 120 days past due, which are recorded at the fair value of collateral less estimated costs to sell. Contracts for which vehicles have been repossessed are excluded. Past Due Finance Receivables by Class The following tables summarize the aging of finance receivables by class: March 31, 2016 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Greater Past Due Total Due Current Total Receivables 90 Days or Greater Due and Accruing Retail loan $ 584 $ 129 $ 60 $ 773 $ 49,590 $ 50,363 $ 35 Wholesale - - - - 9,262 9,262 - Real estate - - - - 4,704 4,704 - Working capital - - - - 1,933 1,933 - Total $ 584 $ 129 $ 60 $ 773 $ 65,489 $ 66,262 $ 35 March 31, 2015 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Greater Past Due Total Due Current Total Receivables 90 Greater Due and Accruing Retail loan $ 467 $ 100 $ 51 $ 618 $ 49,684 $ 50,302 $ 32 Commercial 8 2 - 10 511 521 - Wholesale - - - - 9,226 9,226 - Real estate - - - - 4,665 4,665 - Working capital - - - - 1,853 1,853 - Total $ 475 $ 102 $ 51 $ 628 $ 65,939 $ 66,567 $ 32 |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Interest Expense | 12 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Activities and Interest Expense | Note 7 – Derivatives, Hedging Activities and Interest Expense Derivative Instruments Our liabilities consist mainly of fixed and floating rate debt, denominated in various 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, interest rate floors, interest rate caps and foreign currency swaps to 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 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. Credit Risk Related Contingent Features Our derivative contracts are governed by International Swaps and Derivatives Association (“ISDA”) Master Agreements. Substantially all of these ISDA Master Agreements contain reciprocal ratings triggers providing either party with an option to terminate the agreement at market value in the event of a ratings downgrade of the other party below a specified threshold. As of March 31, 2016, we have daily valuation and collateral exchange arrangements with all of our counterparties. Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization arrangement. However, 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. The aggregate fair value of derivative instruments that contain credit risk related contingent features that were in a net liability position at March 31, 2016 was $7 million, excluding adjustments made for our own non-performance risk. However, we would not be required to post additional collateral to the counterparties with whom we were in a net liability position at March 31, 2016 if our credit ratings were to decline, since we fully collateralize without regard to credit ratings with these counterparties. Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued) Derivative Activity Impact on Financial Statements The following tables show the financial statement line item and amount of our derivative assets and liabilities that are reported in the Consolidated Balance Sheet: March 31, 2016 Hedge accounting Non-hedge derivatives accounting Total Fair Fair Fair Notional value Notional value Notional value Other assets: Interest rate swaps $ - $ - $ 29,469 $ 640 $ 29,469 $ 640 Interest rate floors - - 1,679 4 1,679 4 Foreign currency swaps 364 39 4,337 290 4,701 329 Total $ 364 $ 39 $ 35,485 $ 934 $ 35,849 $ 973 Counterparty netting and collateral held (905 ) Carrying value of derivative contracts – Other assets $ 68 Other liabilities: Interest rate swaps $ - $ - $ 68,383 $ 475 $ 68,383 $ 475 Interest rate caps - - 30 - 30 - Foreign currency swaps - - 9,340 835 9,340 835 Total $ - $ - $ 77,753 $ 1,310 $ 77,753 $ 1,310 Counterparty netting and collateral posted (1,303 ) Carrying value of derivative contracts – Other liabilities $ 7 As of March 31, 2016, we held collateral of $320 million which offset derivative assets, and posted collateral of $718 million which offset derivative liabilities. We also held excess collateral of $2 million which we did not use to offset derivative assets, and we posted excess collateral of $22 million which we did not use to offset derivative liabilities. Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued) March 31, 2015 Hedge accounting Non-hedge derivatives accounting Total Fair Fair Fair Notional value Notional value Notional value Other assets: Interest rate swaps $ 190 $ 4 $ 26,549 $ 467 $ 26,739 $ 471 Foreign currency swaps 271 24 913 193 1,184 217 Total $ 461 $ 28 $ 27,462 $ 660 $ 27,923 $ 688 Counterparty netting and collateral held (635 ) Carrying value of derivative contracts – Other assets $ 53 Other liabilities: Interest rate swaps $ - $ - $ 64,852 $ 386 $ 64,852 $ 386 Interest rate caps - - 50 - 50 - Foreign currency swaps 251 43 12,971 1,845 13,222 1,888 Total $ 251 $ 43 $ 77,873 $ 2,231 $ 78,124 $ 2,274 Counterparty netting and collateral posted (2,184 ) Carrying value of derivative contracts – Other liabilities $ 90 As of March 31, 2015, we held collateral of $145 million which offset derivative assets, and posted collateral of $1,694 million which offset derivative liabilities. We also held excess collateral of $10 million which we did not use to offset derivative assets, and we posted excess collateral of $2 million which we did not use to offset derivative liabilities. Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued) 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 Statement of Income: Years Ended March 31, 2016 2015 2014 Interest expense on debt $ 1,308 $ 1,213 $ 1,262 Interest income on hedge accounting derivatives (16 ) (43 ) (85 ) Interest income on non-hedge accounting foreign currency swaps (94 ) (147 ) (202 ) Interest expense on non-hedge accounting interest rate swaps 103 123 210 Interest expense on debt and derivatives, net 1,301 1,146 1,185 Loss on hedge accounting derivatives: Interest rate swaps - 19 20 Foreign currency swaps - 122 8 Loss on hedge accounting derivatives - 141 28 Less hedged item: change in fair value of fixed rate debt (2 ) (142 ) (31 ) Ineffectiveness related to hedge accounting derivatives (2 ) (1 ) (3 ) Loss (gain) from foreign currency transactions and non-hedge accounting derivatives: Loss (gain) on non-hedge accounting foreign currency transactions 503 (2,375 ) (45 ) (Gain) loss on non-hedge accounting foreign currency swaps (573 ) 2,248 185 (Gain) loss on non-hedge accounting interest rate swaps (92 ) (282 ) 18 Total interest expense $ 1,137 $ 736 $ 1,340 Interest expense on debt and derivatives represents net interest settlements and changes in accruals. Gains and losses from hedge accounting derivatives and foreign currency transactions exclude net interest settlements and changes in accruals. Cash flows associated with hedge accounting, non-hedge accounting, and de-designated derivatives are reported in Net cash provided by operating activities in our Statement of Cash Flows. The relative fair value allocation of derivative credit value adjustments for counterparty and non-performance credit risk within interest expense is not significant for the years ended March 31, 2016, 2015 and 2014, as we fully collateralize our derivatives without regard to credit ratings. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 12 Months Ended |
Mar. 31, 2016 | |
Other Assets And Other Liabilities [Abstract] | |
Other Assets and Other Liabilities | Note 8 – Other Assets and Other Liabilities Other assets and other liabilities consisted of the following: March 31, March 31, 2016 2015 Other assets: Notes receivable from affiliates $ 1,177 $ 1,184 Used vehicles held for sale 319 188 Deferred charges 131 122 Income taxes receivable 31 174 Derivative assets 68 53 Other assets 622 561 Total other assets $ 2,348 $ 2,282 Other liabilities: Unearned insurance premiums and contract revenues $ 1,985 $ 1,825 Derivative liabilities 7 90 Accounts payable and accrued expenses 939 855 Deferred income 462 405 Other liabilities 192 180 Total other liabilities $ 3,585 $ 3,355 |
Debt
Debt | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 – Debt Debt and the related weighted average contractual interest rates are summarized as follows: Weighted average contractual interest rates March 31, March 31, March 31, March 31, 2016 2015 2016 2015 Commercial paper $ 26,608 $ 27,006 0.60 % 0.21 % Unsecured notes and loans payable 52,856 52,307 1.76 % 1.86 % Secured notes and loans payable 14,139 10,837 0.91 % 0.60 % Carrying value adjustment 122 81 Total debt $ 93,725 $ 90,231 1.30 % 1.22 % The commercial paper balance includes unamortized premiums and discounts. As of March 31, 2016 our commercial paper had a weighted average remaining maturity of 83 days, while our notes and loans payable mature on various dates through fiscal 2047. Weighted average contractual interest rates are calculated based on original notional or par value before consideration of premium or discount. The carrying value of our unsecured notes and loans payable at March 31, 2016 included $17.9 billion of unsecured floating rate debt with contractual interest rates ranging from 0 percent to 3.1 percent and $35.1 billion of unsecured fixed rate debt with contractual interest rates ranging from 0.8 percent to 9.4 percent. The carrying value of our unsecured notes and loans payable at March 31, 2015 included $17.4 billion of unsecured floating rate debt with contractual interest rates ranging from 0 percent to 3.3 percent and $35.0 billion of unsecured fixed rate debt with contractual interest rates ranging from 0.8 percent to 9.4 percent. Upon issuance of fixed rate notes, we generally elect to enter into interest rate swaps to convert fixed rate payments on notes to floating rate payments. 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. Included in unsecured notes and loans payable are notes and loans denominated in various foreign currencies, unamortized premiums and discounts and the effects of foreign currency transaction gains and losses on non-hedged or de-designated foreign currency denominated notes and loans payable. At March 31, 2016 and 2015, the carrying values of these foreign currency denominated notes payable were $13.1 billion and $12.4 billion, respectively. Concurrent with the issuance of these foreign currency unsecured notes, we entered into currency swaps in the same notional amount to convert non-U.S. currency payments to U.S. dollar denominated payments. Our secured notes and loans payable are denominated in U.S. dollars and consist of both fixed and variable rate debt with interest rates ranging from 0.5 percent to 1.7 percent at March 31, 2016 and 0.4 percent to 1.5 percent at March 31, 2015. Secured notes and loans are issued by on-balance sheet securitization trusts, as further discussed in Note 10 – 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. The carrying value adjustment on debt represents the effects of fair value adjustments to debt in hedging relationships, accrued redemption premiums, and the unamortized fair value adjustments on the hedged item for terminated fair value hedge accounting relationships. The carrying value adjustment on debt increased by $41 million at March 31, 2016 compared to March 31, 2015 primarily as a result of a weaker U.S. dollar relative to certain other currencies in which our hedged debt is denominated. Note 9 – Debt (Continued) Scheduled maturities of our debt portfolio are summarized below. Actual repayment of secured debt will vary based on the repayment activity on the related pledged assets. Future Years ending March 31, debt maturities 2017 $ 47,521 2018 16,164 2019 9,745 2020 5,163 2021 6,608 Thereafter 8,524 Total debt $ 93,725 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract] | |
Variable Interest Entities | Note 10 – Variable Interest Entities Consolidated Variable Interest Entities We use one or more special purpose entities that are considered Variable Interest Entities 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 were included in our financial statements: March 31, 2016 VIE Assets VIE Liabilities Gross Net Restricted Cash Securitized Assets Securitized Assets Other Assets Debt Other Liabilities Retail finance receivables $ 853 $ 14,343 $ 14,130 $ 6 $ 12,449 $ 4 Investments in operating leases 136 3,364 2,504 78 1,690 1 Total $ 989 $ 17,707 $ 16,634 $ 84 $ 14,139 $ 5 March 31, 2015 VIE Assets VIE Liabilities Gross Net Restricted Cash Securitized Assets Securitized Assets Other Assets Debt Other Liabilities Retail finance receivables $ 730 $ 11,682 $ 11,509 $ 4 $ 9,980 $ 3 Investments in operating leases 54 1,571 1,193 11 857 - Total $ 784 $ 13,253 $ 12,702 $ 15 $ 10,837 $ 3 Restricted Cash shown in the table above represents collections from the underlying Securitized Assets and certain reserve deposits held by TMCC for the VIEs and is included as part of Restricted cash on our Consolidated Balance Sheet. Gross Securitized Assets represent finance receivables and beneficial interests in investments in operating leases securitized for the asset-backed securities issued. Net Securitized Assets are presented net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses. Other Assets represent 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 $1,264 million and $1,275 million of securities retained by TMCC at March 31, 2016 and 2015, respectively. Other Liabilities represents accrued interest on the debt of the consolidated VIEs. The assets of the VIEs and the restricted cash 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 10 – 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 Sheet. 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 Assets to cover estimated probable credit losses 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. Non-consolidated Variable Interest Entities We provide lending to Toyota and Lexus dealers through the Toyota Dealer Investment Group’s Dealer Capital Program (“TDIG Program”) operated by our affiliate TMS, which has an equity interest in these dealerships. Dealers participating in this program have been determined to be VIEs. We do not consolidate the dealerships in this program as we are not the primary beneficiary and any exposure to loss is limited to the amount of the credit facility. At March 31, 2016 and 2015, amounts due from these dealers under the TDIG Program that are classified as Finance receivables, net in the Consolidated Balance Sheet and revenues received during fiscal 2016, 2015 and 2014 were not significant. We also have other lending relationships which have been determined to be VIEs, but these relationships are not consolidated as we are not the primary beneficiary. Amounts due under these relationships as of March 31, 2016 and 2015 were not significant. |
Liquidity Facilities and Letter
Liquidity Facilities and Letters of Credit | 12 Months Ended |
Mar. 31, 2016 | |
Line Of Credit Facility [Abstract] | |
Liquidity Facilities and Letters of Credit | Note 11 – Liquidity Facilities and Letters of Credit For additional liquidity purposes, we maintain syndicated bank credit facilities with certain banks. 364 Day Credit Agreement, Three Year Credit Agreement and Five Year Credit Agreement In November 2015, TMCC, Toyota Credit de Puerto Rico Corp. (“TCPR”) and other Toyota affiliates entered into 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 2017, 2019, and 2021, 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 may be used for general corporate purposes and none were drawn upon as of March 31, 2016. We are currently in compliance with the covenants and conditions of the credit agreements described above. Other Unsecured Credit Agreements TMCC has entered into additional unsecured credit facilities with various banks. As of March 31, 2016, TMCC had committed bank credit facilities totaling $5.3 billion, of which $2.7 billion, $125 million, $2.1 billion, and $375 million mature in fiscal 2017, 2018, 2019, and 2020, 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 not drawn upon as of March 31, 2016 and 2015. We are currently in compliance with the covenants and conditions of the credit agreements described above. |
Pension and Other Benefits Plan
Pension and Other Benefits Plans | 12 Months Ended |
Mar. 31, 2016 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Pension and Other Benefits | Note 12 – Pension and Other Benefit Plans We are a participating employer in certain retirement and post-employment health care, life insurance, and other benefits sponsored by TMS, an affiliate. Costs of each plan are generally allocated to us by TMS based on relative payroll costs associated with participating or eligible employees at TMCC as compared to the plan as a whole. Defined Benefit Plan Prior to January 1, 2015, our employees were generally eligible to participate in the Toyota Motor Sales, U.S.A., Inc. Pension Plans sponsored by TMS commencing on the first day of the month following hire and were vested after 5 years of continuous employment. Effective January 1, 2015, TMS-sponsored benefit pension plans were closed to employees first employed or reemployed on or after such date. Benefits payable under this non-contributory defined benefit pension plan are based, generally, upon the employees' years of credited service (up to a maximum of 25 years), the highest average annual compensation (as defined in the plan) for any 60 consecutive month period out of the last 120 months of employment (the “Applicable Years”), and one-half of eligible bonus/gift payments for the Applicable Years (recalculated to determine the annual average of such amount), reduced by a percentage of the estimated amount of social security benefits. Pension costs allocated to TMCC for our employees in the TMS pension plan were $11 million, $4 million and $15 million for fiscal 2016, 2015 and 2014, respectively. Defined Contribution Plan Employees meeting certain eligibility requirements, as defined in the plan documents, may participate in the Toyota Motor Sales Savings Plan sponsored by TMS. Under these plans, eligible employees may elect to contribute between 1 percent and 30 percent of their eligible pre-tax compensation, subject to federal tax regulation limits. We match 66 2/3 cents for each dollar the participant contributes, up to 6 percent of base pay. Participants are vested 25 percent each year with respect to our contributions and are fully vested after four years. The contributions are funded bi-weekly by payments to the plans’ administrator. Certain employees hired on or after January 1, 2015, may be eligible to receive an annually funded Company contribution to the plans calculated based on their age and compensation. TMCC employer contributions to the TMS savings plan were $8 million, $7 million and $7 million for fiscal 2016, 2015 and 2014, respectively. Other Post-Retirement Benefit Plans Employees are generally eligible to participate in other post-retirement benefits sponsored by TMS which provide certain health care and life insurance benefits to eligible retired employees. In order to be eligible for these benefits, the employee must retire with at least ten years of service and in some cases be at least 55 years of age. Other post-retirement benefit costs allocated to TMCC were $13 million, $13 million and $16 million for fiscal 2016, 2015 and 2014, respectively. |
Income Tax Provision
Income Tax Provision | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | Note 13 – Income Tax Provision The provision for income taxes consisted of the following: Years ended March 31, 2016 2015 2014 Current Federal $ 73 $ (25 ) $ (24 ) State (33 ) (15 ) (3 ) Foreign 9 9 8 Total 49 (31 ) (19 ) Deferred Federal 420 644 460 State 111 117 54 Foreign - (1 ) 2 Total 531 760 516 Provision for income taxes $ 580 $ 729 $ 497 A reconciliation between the U.S. federal statutory tax rate and the effective tax rate is as follows: Years ended March 31, 2016 2015 2014 Provision for income taxes at U.S. federal statutory tax rate 35.0 % 35.0 % 35.0 % State and local taxes (net of federal tax benefit) 3.2 % 3.2 % 3.1 % Other, net 0.2 % (0.3 )% (1.4 )% Effective tax rate 38.4 % 37.9 % 36.7 % The amounts in Other, net in the table above include benefits from fuel cell credits for fiscal 2016 and federal plug-in and electric vehicle credits for fiscal 2016, 2015, and 2014, offset by adjustments for the differences between the income tax accrued in the prior year as compared with the actual liability on the income tax returns as filed. Note 13 – Income Tax Provision (Continued) Our net deferred income tax liability consisted of the following deferred tax liabilities and assets: March 31, 2016 2015 Liabilities: Lease transactions $ 8,579 $ 8,576 State taxes 642 570 Mark-to-market of investments in marketable securities and derivatives 316 292 Other 344 329 Deferred tax liabilities $ 9,881 $ 9,767 Assets: Provision for credit and residual value losses 431 328 Deferred costs and fees 292 258 Net operating loss and tax credit carryforwards 1,097 1,615 Other 67 67 Deferred tax assets 1,887 2,268 Valuation allowance (22 ) (20 ) Net deferred tax assets $ 1,865 $ 2,248 Net deferred income tax liability 1 $ 8,016 $ 7,519 1 We have deferred tax assets related to our cumulative federal net operating loss carryforwards of $912 million and $1,435 million available at March 31, 2016 and 2015, respectively. The federal net operating loss carryforwards will expire beginning in fiscal 2029 through fiscal 2035. At March 31, 2016, we have a deferred tax asset of $67 million for state tax net operating loss carryforwards which will expire in fiscal 2017 through fiscal 2036. At March 31, 2015, we had deferred tax assets of $71 million for state tax net operating loss carryforwards which will expire in fiscal 2016 through fiscal 2035. At March 31, 2016 and 2015, we have deferred tax assets for federal and state alternative fuel vehicle credits of $99 million and $96 million, respectively. The deferred tax assets related to state tax net operating losses and state alternative minimum tax credits are reduced by a valuation allowance of $22 million at March 31, 2016. The deferred tax assets related to state tax net operating losses and charitable contributions were reduced by a valuation allowance of $20 million at March 31, 2015. The determination of the valuation allowance is based on Management’s estimate of future taxable income during the respective carryforward periods. Apart from the valuation allowance, we believe that the remaining deferred tax assets will be realized in full. We received a net tax refund of $95 million for fiscal 2016 and made net tax payments of $143 million in fiscal 2015. On December 18, 2015, the Protecting Americans from Tax Hikes Act of 2015 (the “Act”) was enacted which extended bonus depreciation and certain tax credits. The impact of this Act is reflected in our federal tax loss and tax credit carryforwards. Realization with respect to the federal tax loss and tax credit carryforwards is dependent on generating sufficient income prior to expiration of the loss carryforwards. Although realization is not assured, management believes it is more likely than not that the deferred tax assets will be realized. The amount of the deferred tax assets considered realizable could be reduced if management’s estimates change. On October 1, 2015, TMCC sold its commercial finance business to TICF. Pursuant to the sale agreement with TICF, TMCC recognized a taxable gain that resulted in current federal and state income tax expense of $89 million. Note 13 – Income Tax Provision (Continued) We have made an assertion of permanent reinvestment of earnings from our foreign subsidiary; as a result, U.S. taxes have not been provided for unremitted earnings of our foreign subsidiary. At March 31, 2016 and 2015, these unremitted earnings totaled $208 million and $196 million, respectively. Determination of the amount of the deferred tax liability is not practicable, and accordingly no estimate of the unrecorded deferred tax liability is provided. Although there are no foreseeable events causing repatriation of earnings, possible examples may include but are not limited to parent company capital needs or exiting the business in the foreign country. At March 31, 2016, we had an income tax payable of $11 million and at March 31, 2015, we had an income tax receivable of $13 million, for our share of the income tax in those states where we filed consolidated or combined returns with TMNA and its subsidiaries. At March 31, 2016, we had an income tax payable of $2 million, and at March 31, 2015, we had an income tax receivable of $5 million, for federal and state income tax from TMCC affiliated companies. Such TMCC affiliated companies include TFSA, Toyota Financial Savings Bank (“TFSB”), and Toyota Financial Services Securities USA Corporation. The guidance for the accounting and reporting for income taxes requires us to assess tax positions in cases where the interpretation of the tax law may be uncertain. The change in unrecognized tax benefits are as follows: March 31, 2016 2015 2014 Balance at beginning of the year $ - $ 6 $ 7 Increases related to positions taken during the current year 1 - - Decreases related to positions taken during the prior years - - (1 ) Settlements - (6 ) - Balance at end of year $ 1 $ - $ 6 At March 31, 2016, 2015 and 2014 approximately $1 million of the respective unrecognized tax benefits would, if recognized, have an effect on the effective tax rate. There are no amounts remaining in the respective unrecognized tax benefits at March 31, 2016, 2015, and 2014 that are related to timing matters. During fiscal 2016, $1 million of the increase in unrecognized tax benefits had an effect on the effective tax rate. We do not have any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months. We accrue interest, if applicable, related to uncertain income tax positions in interest expense. Statutory penalties, if applicable, accrued with respect to uncertain income tax positions are recognized as an addition to the income tax liability. For each of fiscal 2016, 2015, and 2014, less than $1 million was accrued for interest and no penalties were accrued. Tax-related Contingencies As of March 31, 2016, we remain under IRS examination for fiscal 2016 and 2015. The IRS examination for fiscal 2014 was concluded in the second quarter of fiscal 2016. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14 – 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: March 31, March 31, 2016 2015 Commitments: Credit facilities commitments with dealers $ 1,168 $ 1,137 Minimum lease commitments 55 60 Total commitments 1,223 1,197 Guarantees of affiliate pollution control and solid waste disposal bonds 100 100 Total commitments and guarantees $ 1,323 $ 1,297 Wholesale financing is not considered to be a contractual commitment as the arrangements are not binding arrangements under which TMCC is required to perform. We are party to a 15-year lease agreement, which expires in 2018, with TMS for our headquarters location in the TMS headquarters complex in Torrance, California. Total rental expense, including payments to affiliates, was $25 million, $26 million, and $25 million for fiscal 2016, 2015, and 2014, respectively. Minimum lease commitments in the table above include $16 million and $23 million for facilities leases with affiliates at March 31, 2016 and 2015, respectively. At March 31, 2016, minimum future commitments under lease agreements to which we are a lessee, including those under the TMS lease, are as follows: Future Years ending March 31, lease 2017 $ 22 2018 17 2019 9 2020 4 2021 2 Thereafter 1 Total $ 55 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 insurance business and the credit worthiness 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. On April 28, 2014, the Company announced that our corporate headquarters will move from Torrance, California to Plano, Texas beginning in 2017 as part of TMC’s planned consolidation of its three North American headquarters for manufacturing, sales and marketing to a single new headquarters facility. To date, the Company has not incurred significant costs related to employee relocation, lease termination or other related relocation expenses as a result of this planned headquarters move. These moving costs are currently estimated to be approximately $120 million and will be expensed as incurred over the next several years. The moving costs incurred in fiscal 2016 were not significant. Note 14 – 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 affiliates for any amounts paid. TMCC receives an annual fee of $78 thousand for guaranteeing such payments. TMCC has not been required to perform under any of these affiliate bond guarantees as of March 31, 2016 and 2015. 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 and supplier agreements. Performance under these indemnities would occur upon a breach of the representations, warranties or covenants made or given, or 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 March 31, 2016, we determined that it is not probable that we will be required to make any material payments in the future. As of March 31, 2016 and 2015, no amounts have been recorded under these indemnification provisions. Litigation 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. 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 reasonably possible 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 possible 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. We have received a request for documents and information from the New York State Department of Financial Services relating to our lending practices (including fair lending), and a request for documents and information pursuant to a civil investigative demand from the Commonwealth of Massachusetts Office of the Attorney General relating to our financing of guaranteed auto protection insurance products on retail contracts. We are cooperating with these requests, but are unable to predict their outcome given their preliminary status. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15 – Related Party Transactions The tables below summarize amounts included in our Consolidated Statement of Income and in our Consolidated Balance Sheet under various related party agreements or relationships: Years Ended March 31, 2016 2015 2014 Net financing revenues: Manufacturers’ subvention support and other revenues $ 1,315 $ 1,196 $ 994 Origination costs paid to affiliates $ (1 ) $ (1 ) $ - Credit support fees incurred $ (91 ) $ (88 ) $ (82 ) Interest and other expenses paid to affiliates $ (3 ) $ (2 ) $ (3 ) Insurance earned premiums and contract revenues: Affiliate insurance premiums and contract revenues $ 132 $ 129 $ 131 Investments and other income, net: Gain on sale of commercial finance business $ 197 $ - $ - Interest earned on notes receivable from affiliates $ 7 $ 4 $ 6 Other income from affiliates $ 1 $ - $ - Expenses: Shared services charges and other expenses $ 47 $ 63 $ 61 Employee benefits expense $ 33 $ 24 $ 38 Insurance losses and loss adjustment expenses $ 1 $ 1 $ - Note 15 – Related Party Transactions (Continued) March 31, March 31, 2016 2015 Assets: Investments in marketable securities Investments in affiliates’ commercial paper $ - $ 37 Finance receivables, net Accounts receivable from affiliates $ 119 $ 83 Direct finance lease receivables from affiliates $ - $ 6 Notes receivable under home loan programs $ 9 $ 11 Deferred retail origination costs paid to affiliates $ 1 $ 1 Deferred retail subvention income from affiliates $ (794 ) $ (802 ) Investments in operating leases, net Leases to affiliates $ 2 $ 7 Deferred lease origination costs paid to affiliates $ 1 $ 1 Deferred lease subvention income from affiliates $ (1,057 ) $ (950 ) Other assets Notes receivable from affiliates $ 1,177 $ 1,184 Other receivables from affiliates $ 7 $ 6 Subvention support receivable from affiliates $ 127 $ 126 Liabilities: Other liabilities Unearned affiliate insurance premiums and contract revenues $ 278 $ 252 Accounts payable to affiliates $ 209 $ 136 Notes payable to affiliates $ 20 $ 24 Shareholder’s Equity: Stock-based compensation $ 2 $ 2 Note 15 – Related Party Transactions (Continued) Financing Support Arrangements with Affiliates TMCC is party to a credit support agreement with TFSC (the “TMCC Credit Support Agreement”). The TMCC Credit Support Agreement requires TFSC to maintain certain ownership, net worth maintenance, and debt service provisions in respect to TMCC, but is not a guarantee by TFSC of any securities or obligations of TMCC. In conjunction with this credit support agreement, TMCC has agreed to pay TFSC a semi-annual fee based on a fixed rate applied to the weighted average outstanding amount of securities entitled to credit support. Credit support fees incurred under this agreement were $91 million, $88 million, and $82 million for fiscal 2016, 2015, and 2014, respectively. TCPR is the beneficiary of a credit support agreement with TFSC containing provisions similar to the TMCC Credit Support Agreement described above. In addition, TMCC receives and provides financing support from TFSC and other affiliates in the form of promissory notes, conduit finance agreements and various loan and credit facility agreements. Total financing support received and provided, along with the amounts currently outstanding under those agreements, is summarized below. All foreign currency amounts have been translated at the exchange rates in effect as of March 31, 2016. Financing Support Provided by Parent and Affiliates (amounts in millions): Amounts outstanding (USD) at Affiliate Financing available to TMCC March 31, 2016 March 31, 2015 Toyota Credit Canada Inc. CAD 1,500 $ - $ - Toyota Motor Finance (Netherlands) B.V. Euro 1,000 - - Toyota Financial Services Americas Corporation USD 200 12 24 Toyota Finance Australia Limited USD 1,000 - - Toyota Financial Services Securities USA Corporation USD 15 8 - Total $ 20 $ 24 Financing Support Provided to Parent and Affiliates (amounts in millions): Amounts outstanding (USD) at Affiliate Financing made available by TMCC March 31, 2016 March 31, 2015 Toyota Financial Savings Bank USD 400 $ - $ 25 Toyota Credit Canada Inc. CAD 2,500 220 - Toyota Motor Finance (Netherlands) B.V. Euro 1,000 619 778 Toyota Financial Services Americas Corporation USD 200 - - Toyota Financial Services Mexico, S.A. de C.V. USD 500 - - Banco Toyota do Brasil USD 300 58 81 Toyota Finance Australia Limited USD 1,000 280 300 Total $ 1,177 $ 1,184 Note 15 – Related Party Transactions (Continued) Other Financing Support Provided to Affiliates · TMCC provides home loans to certain employees. In addition, we also provide home equity advances through a relocation provider to certain employees relocating to Texas. TMCC executive officers and directors are not eligible for the home loan or home equity advance programs. · TMCC provides wholesale financing, real estate and working capital loans to certain dealerships that were consolidated with another affiliate under the accounting guidance for variable interest entities. TMCC also pays these dealers origination fees. These costs represent direct costs incurred in connection with the acquisition of retail and lease contracts, including incentive and rate participation. · TMCC has guaranteed the payments of principal and interest with respect to the bonds of manufacturing facilities of certain affiliates. The nature, business purpose, and amounts of these guarantees are described in Note 14 – Commitments and Contingencies. · TMCC and TFSB are parties to a master participation agreement pursuant to which TMCC agreed to purchase up to $60 million per year of residential mortgage loans originated by TFSB that meet specified credit underwriting guidelines, not to exceed $150 million over a three year period. At March 31, 2016 and 2015, there were $37 million and $47 million, respectively, in loan participations outstanding that had been purchased by TMCC under this agreement. Shared Service Arrangements with Affiliates TMCC is subject to the following shared service agreements: · TMCC and TCPR incur costs under various shared service agreements with our affiliates. Services provided by affiliates under the shared service arrangement include marketing, technological and administrative services, as well as services related to our funding and risk management activities and our bank and investor relationships. · TMCC provides various services to our financial services affiliates, including certain administrative, systems and operational support. · TMCC provides various services to TFSB, including marketing, administrative, systems, and operational support in exchange for TFSB making available certain financial products and services to TMCC’s customers and dealers meeting TFSB’s credit standards. · TMCC is a party to expense reimbursement agreements with TFSB and TFSC related to costs incurred by TMCC or these affiliates on behalf of the other party in connection with TMCC’s provision of services to these affiliates or the provision by these affiliates of certain financial products and services to our customers and dealers in support of TMCC’s customer loyalty strategy and programs, and other brand and sales support. TMCC is also party to an expense reimbursement agreement with TFSA that reimbursed expenses incurred by TFSA with respect to costs related to TFSB’s credit card rewards program. TFSB sold its credit card rewards portfolio in October 2015 and no credit card reward program costs have been incurred after such date. Note 15 – Related Party Transactions (Continued) Operational Support Arrangements with Affiliates · TMCC and TCPR provide various wholesale financing to dealers, which result in our having payables to TMS and Toyota de Puerto Rico Corp (“TDPR”). · TMCC is party to a lease agreement with TMS for our headquarters location in the TMS headquarters complex in Torrance, California, expiring in 2018, and our Customer Service Center located in Cedar Rapids, Iowa, expiring in 2019. The lease commitments are described in Note 14 – Commitments and Contingencies. · Subvention support receivable from affiliates represent amounts due from TMS and other affiliates in support of retail and lease subvention programs offered by TMCC. Deferred subvention income from affiliates represents the unearned portion of amounts received from these transactions, and manufacturers’ subvention support and other revenues primarily represent the earned portion of such amounts. · Leases to affiliates represent the investment in operating leases of vehicles leased to affiliates. · TMCC is a participating employer in certain retirement, postretirement health care and life insurance sponsored by TMS. See Note 12 – Pension and Other Benefit Plans for additional information. TMCC also participates in share-based compensation plans sponsored by TMC. · Affiliate insurance premiums and contract revenues primarily represent revenues from TMIS for administrative services and various types of coverage provided to TMS and affiliates. This includes contractual indemnity coverage and related administrative services for TMS’ certified pre-owned vehicle program and umbrella liability policy. TMIS provides umbrella liability insurance to TMS and affiliates covering certain dollar value layers of risk above various primary or self-insured retentions. On all layers in which TMIS has provided coverage, 99 percent of the risk has been ceded to various reinsurers. During fiscal 2012, TMIS began providing property deductible reimbursement insurance to TMS and affiliates covering losses incurred under their primary policy. · On October 1, 2015, we completed the sale of our commercial finance business to TICF. As part of this transaction, we entered into an Expense Reimbursement Agreement with TICF relating to certain expenses incurred by TMCC and a Transition Services Agreement relating to certain post-close services to be provided by TMCC to TICF. |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Note 16 – Segment Information Our reportable segments include finance and insurance operations. Finance operations include retail, leasing, and dealer financing provided to authorized dealers and their customers in the U.S. and Puerto Rico. Insurance operations are performed by TMIS and its subsidiaries. The principal activities of TMIS include marketing, underwriting, and claims administration for products that cover certain risks of dealers and their customers in the U.S. The finance and insurance operations segment information presented below includes allocated corporate expenses for the respective segments. The accounting policies of the operating segments are the same as those described in Note 1 – Summary of Significant Accounting Policies. Financial information for our reportable operating segments is summarized as follows: Year ended March 31, 2016 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 9,403 $ - $ - $ 9,403 Insurance earned premiums and contract revenues - 719 - 719 Investment and other income, net 99 65 - 164 Gain on sale of commercial finance business 197 - - 197 Total gross revenues 9,699 784 - 10,483 Less: Depreciation on operating leases 5,914 - - 5,914 Interest expense 1,137 - - 1,137 Provision for credit losses 441 - - 441 Operating and administrative expenses 909 252 - 1,161 Insurance losses and loss adjustment expenses - 318 - 318 Provision for income taxes 501 79 - 580 Net income $ 797 $ 135 $ - $ 932 Total assets $ 111,627 $ 4,161 $ (1,065 ) $ 114,723 Note 16 – Segment Information (Continued) Year ended March 31, 2015 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 8,310 $ - $ - $ 8,310 Insurance earned premiums and contract revenues - 638 - 638 Investment and other income, net 89 105 - 194 Total gross revenues 8,399 743 - 9,142 Less: Depreciation on operating leases 4,857 - - 4,857 Interest expense 736 - - 736 Provision for credit losses 308 - - 308 Operating and administrative expenses 825 221 - 1,046 Insurance losses and loss adjustment expenses - 269 - 269 Provision for income taxes 635 94 - 729 Net income $ 1,038 $ 159 $ - $ 1,197 Total assets $ 106,653 $ 3,891 $ (919 ) $ 109,625 Year ended March 31, 2014 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 7,371 $ - $ 26 $ 7,397 Insurance earned premiums and contract revenues - 593 (26 ) 567 Investment and other income, net 98 37 - 135 Total gross revenues 7,469 630 - 8,099 Less: Depreciation on operating leases 4,012 - - 4,012 Interest expense 1,340 - - 1,340 Provision for credit losses 170 - - 170 Operating and administrative expenses 767 198 - 965 Insurance losses and loss adjustment expenses - 258 - 258 Provision for income taxes 437 60 - 497 Net income $ 743 $ 114 $ - $ 857 Total assets $ 99,737 $ 3,728 $ (725 ) $ 102,740 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 17 – Selected Quarterly Financial Data (Unaudited) First Second Third Fourth Quarter Quarter Quarter Quarter Year ended March 31, 2016: Total financing revenues $ 2,255 $ 2,353 $ 2,376 $ 2,419 Depreciation on operating leases 1,360 1,446 1,503 1,605 Interest expense 508 203 277 149 Net financing revenues 387 704 596 665 Other income 212 192 248 231 Gain on sale of commercial finance business - - 197 - Provision for credit losses 45 105 128 163 Expenses 349 365 361 404 Income before income taxes 205 426 552 329 Provision for income taxes 70 161 210 139 Net income $ 135 $ 265 $ 342 $ 190 Year ended March 31, 2015: Total financing revenues $ 1,960 $ 2,057 $ 2,112 $ 2,181 Depreciation on operating leases 1,100 1,196 1,248 1,313 Interest expense 130 215 161 230 Net financing revenues 730 646 703 638 Other income 188 220 221 203 Provision for credit losses 38 79 103 88 Expenses 303 320 329 363 Income before income taxes 577 467 492 390 Provision for income taxes 213 176 185 155 Net income $ 364 $ 291 $ 307 $ 235 Other income is comprised of insurance earned premiums and contract revenues as well as net investment and other income. Expenses include operating and administrative expenses as well as insurance losses and loss adjustment expenses. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain prior period amounts have been reclassified to conform to the current year presentation. Related party transactions presented in the Consolidated Financial Statements are disclosed in Note 15 – Related Party Transactions. |
Principles of Consolidation | Note 1 – Summary of Significant Accounting Policies (Continued) Principles of Consolidation The consolidated financial statements include the accounts of TMCC, its wholly-owned subsidiaries and all variable interest entities (“VIE”) of which we are the primary beneficiary. All intercompany transactions and balances have been eliminated. Variable Interest Entities A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. The primary beneficiary of a VIE is the party with both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE. To assess whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider all the facts and circumstances including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes identifying the activities that most significantly impact the VIE’s economic performance and identifying which party, if any, has power over those activities. In general, the party that makes the most significant decisions affecting the VIE is determined to have the power to direct the activities of a VIE. To assess whether we have the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity interests, servicing rights and fee arrangements, and any other variable interests in the VIE. If we determine that we are the party with the power to make the most significant decisions affecting the VIE, and we have an obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE, then we consolidate the VIE. We perform ongoing reassessments, usually quarterly, of whether we are the primary beneficiary of a VIE. The reassessment process considers whether we have acquired or divested the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. We also reconsider whether entities previously determined not to be VIEs have become VIEs, based on new events, and therefore could be subject to the VIE consolidation framework. See Note 10 – Variable Interest Entities for additional discussion and disclosure. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of inherent uncertainty involved in making estimates, actual results could differ from those estimates and assumptions. The accounting estimates that are most important to our business are the determination of residual value relating to our investments in operating leases and the allowance for credit losses as well as estimates related to the fair value of our derivative instruments and marketable securities. |
Sale of Commercial Finance Business | Sale of Commercial Finance Business In December 2014, we entered into an agreement for the sale of certain assets and liabilities relating to our industrial equipment retail, lease and dealer portfolios (hereinafter the “commercial finance business” or “disposal group”) to Toyota Industries Commercial Finance, Inc. (“TICF”), a newly-formed subsidiary of Toyota Industries Corporation, which forms part of the group of companies known as the Toyota Group and is a related party to TMCC. As of August 31, 2015, we reclassified our commercial finance business to held-for-sale under Accounting Standard Codification 360, Property, Plant, and Equipment, We initially measure a long-lived asset or disposal group that is classified as held-for-sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale. We assess the fair value of a long-lived asset or disposal group, less any costs to sell, each reporting period it remains classified as held-for-sale. We report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held-for-sale. On October 1, 2015, we completed the sale of our commercial finance business to TICF. The sale resulted in cash proceeds of $2.3 billion, which are expected to be utilized for general corporate purposes, including the purchase of retail and lease contracts and the payment of debt. The transaction resulted in a gain of $197 million that is reflected in our results of operations for fiscal 2016. As the sale of our commercial finance business did not represent a strategic shift that will have a major effect on our operations and financial results, it did not meet the criteria to be presented as a discontinued operation. |
Revenue Recognition | Revenue Recognition Retail and Dealer Financing Revenues Revenues associated with retail and dealer financing are recognized so as to approximate a constant effective yield over the contract term. Incremental direct fees and costs incurred in connection with the acquisition of retail contracts and dealer financing receivables, including incentive and rate participation payments made to vehicle dealers, are capitalized and amortized so as to approximate a constant effective yield over the term of the related contracts. Payments received on affiliate sponsored special rate programs (“subvention”) are deferred and recognized to approximate a constant effective yield over the term of the related contracts. Included in financing revenues are other fees, including late fees and other service charges, the amounts of which are not significant to total financing revenues. Note 1 – Summary of Significant Accounting Policies (Continued) Operating Lease Revenues Operating lease revenues are recorded to income on a straight-line basis over the term of the lease. Incremental direct fees and costs received or paid in connection with the acquisition of operating leases, including incentive and rate participation payments made to dealers and acquisition fees collected from customers, are capitalized or deferred and amortized on a straight-line basis over the term of the related contracts. Payments received on subvention programs are deferred and recognized on a straight-line basis over the term of the related contracts. Operating lease revenue is recorded net of sales taxes collected from customers. Included in operating lease revenues are other fees, including late fees and other service charges, the amounts of which are not significant to total operating lease revenue. Direct Finance Lease Revenues Direct finance lease revenues are recognized over the lease term so as to approximate a constant effective yield on the outstanding net investment. Incremental direct costs and fees paid or received in connection with the acquisition of direct finance leases, including incentive and rate participation payments made to dealers and acquisition fees collected from customers, are capitalized or deferred and amortized to approximate a constant effective yield over the term of the related contracts. Payments received on subvention programs are deferred and recognized to approximate a constant effective yield over the term of the related contracts. Included in direct finance lease revenues are other fees, including late fees and other service charges, the amounts of which are not significant to total direct finance lease revenue. Direct finance lease revenues are reported in Retail revenues in the Consolidated Statement of Income. Insurance Earned Premiums and Contract Revenues Revenues from providing coverage under various contractual agreements are recognized over the term of the coverage in relation to the timing and level of anticipated claims and administrative expenses. Revenues from insurance policies, net of premiums ceded to reinsurers, are earned over the terms of the respective policies in proportion to the estimated loss development. Management relies on historical loss experience as a basis for establishing earnings factors used to recognize revenue over the term of the contract or policy. The portion of premiums and contract revenues applicable to the unexpired terms of the agreements is recorded as unearned insurance premiums and contract revenues. Agreements sold range in term from 3 to 120 months. Certain costs of acquiring new agreements, consisting primarily of dealer commissions and premium taxes, are deferred and amortized over the term of the related policies on the same basis as revenues are earned. The effect of subsequent cancellations is recorded as an offset to unearned insurance premiums and contract revenues. Service commissions and fees are recognized over the term of the coverage in relation to the timing of services performed. |
Depreciation on Operating Leases | Depreciation on Operating Leases Depreciation on operating leases is recognized using the straight-line method over the lease term, typically two to five years. The depreciable basis is the original cost of the vehicle less the estimated residual value of the vehicle at the end of the lease term. During the lease term, adjustments to depreciation expense reflecting revised estimates of expected residual values at the end of the lease terms are recorded prospectively on a straight-line basis. |
Allowance for Credit Losses | Allowance for Credit Losses We maintain an allowance for credit losses to cover probable and estimable losses on our finance receivables and investments in operating leases resulting from the failure of customers or dealers to make contractual payments. Management evaluates the allowance at least quarterly, considering a variety of factors and assumptions to determine whether the allowance is considered adequate to cover probable and estimable losses incurred as of the balance sheet date. The allowance for credit losses is management’s estimate of the amount of probable incurred credit losses in our existing finance receivables and investment in operating leases portfolios. Management develops and documents the allowance for credit losses on finance receivables based on three portfolio segments. We also separately develop and document the allowance for credit losses for investments in operating leases. Investments in operating leases are not within the scope of accounting guidance governing the disclosure of portfolio segments. The determination of portfolio segments is based primarily on the qualitative consideration of the nature of our business operations and the characteristics of the underlying finance receivables. Until October 1, 2015, the three portfolio segments within finance receivables, net were: · Retail Loan Portfolio Segment – The retail loan portfolio segment consists of retail contracts acquired from dealers in the U.S. and Puerto Rico (“retail contracts”). Under a retail contract, we are granted a security interest in the underlying collateral which consists primarily of Toyota, Scion or Lexus vehicles. Based on the common risk characteristics associated with the finance receivables, the retail loan portfolio segment is considered a single class of finance receivable. · Commercial Portfolio Segment – The commercial portfolio segment consists of commercial contracts (“commercial loan contracts”) and leasing contracts accounted for as direct finance leases acquired from commercial truck and industrial equipment dealers in the U.S. Under commercial loan and direct finance leases, we are granted a security interest in the underlying collateral which consists of various types of commercial trucks and industrial equipment. Based on the common risk characteristics associated with the finance receivables and the similarity of the credit risk with respect to the two types of contracts, the commercial portfolio segment is considered a single class of finance receivable. · Dealer Products Portfolio Segment – The dealer products portfolio segment consists of wholesale financing, working capital loans, revolving lines of credit and real estate loans to dealers in the U.S. and Puerto Rico. Wholesale financing is primarily collateralized by new or used vehicle inventory with the outstanding balance fluctuating based on the level of inventory. Real estate loans are collateralized by the underlying real estate, are underwritten primarily on a loan-to-value basis and are typically for a fixed term. Working capital loans and revolving lines of credit are granted for working capital purposes and are secured by dealership assets. Based on the risk characteristics associated with the underlying finance receivables, the dealer products portfolio segment consists of three classes of finance receivables: wholesale, real estate, and working capital. On October 1, 2015, we completed the sale of our commercial finance business to TICF. As a result of this sale, subsequent to October 1, 2015, we no longer have the commercial portfolio segment and a portion of the dealer products portfolio segment related to the commercial finance business. Note 1 – Summary of Significant Accounting Policies (Continued) Methodology Used to Develop the Allowance for Credit Losses Retail Loan Portfolio Segment and Investments in Operating Leases The level of credit risk in our retail loan portfolio segment and our investments in operating leases is influenced primarily by two factors: default frequency and loss severity, which in turn are influenced by various factors such as economic conditions, the used vehicle market, purchase quality mix, contract term length, and operational changes. We evaluate the retail loan portfolio segment and investments in operating leases using methodologies that include roll rate, credit risk grade/tier, and vintage analysis. We review and analyze external factors, including changes in economic conditions, actual or perceived quality, safety and reliability of Toyota, Lexus and Scion vehicles, unemployment levels, the used vehicle market, and consumer behavior. In addition, internal factors, such as purchase quality mix and operational changes are also considered in the analyses. We utilize a loss emergence period assumption in developing our allowance for credit losses. This assumption represents the average length of time between when a loss event first occurs and when the account is charged off. This time period starts when the consumer begins to experience financial difficulty. Commercial Portfolio Segment The level of credit risk in our commercial portfolio segment is influenced primarily by two factors: default frequency and loss severity, which in turn are influenced by various economic factors, the used equipment and truck markets, purchase quality mix, contract term length, and operational changes. We evaluate the commercial portfolio segment using methodologies that include product grouping analysis, historical loss and loss frequency by product. We review and analyze external factors, including changes in economic conditions, unemployment level, and the used equipment and truck markets. In addition, internal factors, such as purchase quality mix and operational changes are also considered in the analyses. Dealer Products Portfolio Segment The level of credit risk in our dealer products portfolio segment is influenced primarily by the financial strength of dealers within our portfolio, dealer concentration, collateral quality, and other economic factors. The financial strength of dealers within our portfolio is influenced by, among other factors, general economic conditions, the overall demand for new and used vehicles and the financial condition of automotive manufacturers in general. We evaluate the dealer portfolio by aggregating dealer financing receivables into loan-risk pools, which are determined based on the risk characteristics of the loan (e.g. secured by vehicles, real estate or dealership assets). We analyze the loan-risk pools using internally developed risk ratings for each dealer. We also utilize a loss emergence period assumption in developing our allowance for credit losses. The loss emergence period represents the time period between the date at which the default is estimated to have occurred and the ultimate confirmation of that default through charge-off. In addition, field operations management and our special assets group are consulted each quarter to determine if any specific dealer loan is considered impaired. If impaired loans are identified, specific reserves are established, as appropriate, and the loan is removed from the loan-risk pool for separate monitoring. Note 1 – Summary of Significant Accounting Policies (Continued) Accounting for the Allowance for Credit Losses and Impaired Receivables The majority of the allowance for credit losses covers estimated losses on the retail loan portfolio segment which is collectively evaluated for impairment. The remainder of the allowance for credit losses covers the estimated losses on investments in operating leases, the dealer products portfolio segment, and the commercial portfolio segment. Within the dealer products portfolio segment, we establish specific reserves to cover the estimated losses on individual impaired loans (including loans modified in a troubled debt restructuring). The specific reserves are assessed based on discounted cash flows, the loan’s observable market price, or the fair value of the underlying collateral if the loan is collateral dependent. Troubled debt restructurings in the retail loan and commercial portfolio segments are aggregated with their respective portfolio segments when determining the allowance for credit losses. These loans are homogenous in nature and insignificant for individual evaluation and we have determined that the allowance for credit losses for each of the retail loan and commercial portfolio segments would not be materially different if they had been individually evaluated for impairment. Increases to the allowance for credit losses are accompanied by corresponding charges to the Provision for credit losses on the Consolidated Statement of Income. The uncollectible portion of finance receivables and investments in operating leases is charged to the 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. In the event we repossess the collateral, the receivable is charged-off and we record the collateral at its estimated fair value less costs to sell and report it in Other assets in the Consolidated Balance Sheet. Recoveries of finance receivables and investments in operating leases previously charged off as uncollectible are credited to the allowance for credit losses. See Note 6 – Allowance for Credit Losses for additional discussion and disclosure. |
Insurance Losses and Loss Adjustment Expenses | Insurance Losses and Loss Adjustment Expenses Insurance losses and loss adjustment expenses include amounts paid and accrued for loss events that are known and have been recorded as claims, estimates of losses incurred but not reported that are based on actuarial estimates and historical loss development patterns, and loss adjustment expenses that are expected to be incurred in connection with settling and paying these claims. Accruals for unpaid losses, losses incurred but not reported, and loss adjustment expenses are included in Other liabilities in the Consolidated Balance Sheet. These accruals arising from contractual agreements entered into by TMIS are not significant as of March 31, 2016 and 2015. Estimated liabilities are reviewed regularly, and we recognize any adjustments in the periods in which they are determined. If anticipated losses, loss adjustment expenses, and unamortized acquisition and maintenance costs exceed the recorded unearned premium, a premium deficiency is recognized by first charging any unamortized acquisition costs to expense and then by recording a liability for any excess deficiency. |
Cash Equivalents | Cash Equivalents Cash equivalents represent highly liquid investments with maturities of three months or less at purchase and may include money market instruments, commercial paper, certificates of deposit or similar instruments. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents primarily represent proceeds from certain debt issuances for which the use of the cash is restricted, as well as customer collections on securitized receivables to be distributed to investors as payments on the related secured debt, which are primarily related to securitization trusts. Restricted cash may also contain amounts unrelated to financing activities which are restricted as to use. There were no restricted cash equivalents as of March 31, 2016 and 2015, respectively. |
Investments in Marketable Securities | Investments in Marketable Securities Investments in marketable securities consist of debt and equity securities. Debt and equity securities designated as available-for-sale (“AFS”) are recorded at fair value using quoted market prices where available with unrealized gains or losses included in accumulated other comprehensive income (“AOCI”), net of applicable taxes. Realized gains and losses are determined using either the specific identification method or first in first out method, depending on the type of investment in our portfolio. Realized investment gains and losses are reflected in Investment and other income, net in the Consolidated Statement of Income. Other-than-Temporary Impairment An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in AOCI. We conduct periodic reviews of securities in unrealized loss positions for the purpose of evaluating whether the impairment is other-than-temporary. As part of our ongoing assessment of other-than-temporary impairment (“OTTI”), we consider a variety of factors. Such factors include the length of time and extent to which the market value of a security has been less than amortized cost, adverse conditions specifically related to the industry, geographic area or financial condition of the issuer or underlying collateral of the security and the volatility of the fair value changes. An OTTI loss with respect to debt securities must be recognized in earnings if we have the intent to sell the debt security or it is more likely than not that we will be required to sell the debt security before recovery of its amortized cost basis. If we have the intent to sell, the cost basis of the security is written down to fair value and the write down is reflected in Investment and other income, net in the Consolidated Statement of Income. If we have no intent to sell and we believe that it is more likely than not we will not be required to sell these securities prior to recovery, the credit loss component of the unrealized losses is recognized in Investment and other income, net in the Consolidated Statement of Income, while the remainder of the loss is recognized in AOCI. The credit loss component recognized in Investment and other income, net in the Consolidated Statement of Income is identified as the portion of the amortized cost of the security not expected to be collected over the remaining term as projected using a cash flow analysis for debt securities. We perform periodic reviews of our AFS equity securities to determine whether unrealized losses are temporary in nature. We consider our intent and ability to hold the security for a period of time sufficient for recovery of fair value. Where we lack that intent or ability, the equity security’s decline in fair value is deemed to be other-than-temporary. If losses are considered to be other-than-temporary, the cost basis of the security is written down to fair value and the write down is reflected in Investment and other income, net in the Consolidated Statement of Income. See Note 3 – Investments in Marketable Securities for additional discussion and disclosure. |
Finance Receivables | Finance Receivables Our finance receivables consist of the retail loan, the commercial and the dealer products portfolio segments. Finance receivables recorded on our balance sheet include accrued interest and deferred fees and costs, net of the allowance for credit losses, certain other dealer funds and deferred income. Direct finance leases are recorded on our balance sheet as the aggregate future minimum lease payments, contractual residual value of the leased vehicle, and deferred income. Finance receivables are classified as held-for-investment if the Company has the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. As of March 31, 2016 and 2015, all finance receivables were classified as held-for-investment. Impaired Finance Receivables A finance receivable is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the terms of the contract. Factors such as payment history, compliance with terms and conditions of the underlying loan agreement and other subjective factors related to the financial stability of the borrower are considered when determining whether a finance receivable is impaired. Troubled Debt Restructurings A troubled debt restructuring occurs when a finance receivable is modified through a concession to a borrower experiencing financial difficulty. A finance receivable modified under a troubled debt restructuring is considered to be impaired. In addition, troubled debt restructurings include finance receivables for which the customer has filed for bankruptcy protection. For such finance receivables, we no longer have the ability to modify the terms of the agreement without the approval of the bankruptcy court and the court may impose term modifications that we are obligated to accept. Nonaccrual Policy Retail Loan and Commercial Portfolio Segments The accrual of revenue is discontinued at the time a retail loan or commercial portfolio segment finance receivable is determined to be uncollectible. These finance receivables may be restored to accrual status only when a customer settles all past due deficiency balances and future payments are reasonably assured. For these finance receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. Dealer Products Portfolio Segment Impaired receivables in the dealer product portfolio segment are placed on nonaccrual status if full payment of principal or interest is in doubt, or when principal or interest is 90 days or more past due. Interest accrued, but not collected at the date a receivable is placed on nonaccrual status, is reversed against interest income. In addition, the amortization of net deferred fees is suspended. Interest income on nonaccrual receivables is recognized only to the extent it is received in cash. Finance receivables are restored to accrual status only when interest and principal payments are brought current and future payments are reasonably assured. Finance receivables are charged off against the allowance for credit losses when the loss has been realized. See Note 4 – Finance Receivables, Net for additional discussion and disclosure. |
Investments in Operating Leases | Note 1 – Summary of Significant Accounting Policies (Continued) Investments in Operating Leases We record our investments in operating leases at acquisition cost, net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses. Nonaccrual Policy The accrual of revenue on investments in operating leases is discontinued at the time an account is determined to be uncollectible. Operating leases may be restored to accrual status only when a customer settles all past due deficiency balances and future payments are reasonably assured. For investments in operating leases in non-accrual status, subsequent operating lease revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. Determination of Residual Value Residual values of lease contracts are estimated at lease inception by examining external industry data, the anticipated Toyota, Lexus and Scion product pipeline and our own experience. Factors considered in this evaluation include, but are not limited to, local, regional and national economic forecasts, new vehicle pricing, new vehicle incentive programs, new vehicle sales, future plans for new Toyota, Lexus and Scion product introductions, competitor actions and behavior, product attributes of popular vehicles, the mix of used vehicle supply, the level of current used vehicle values, buying and leasing behavior trends, and fuel prices. We use various channels to sell vehicles returned at lease-end. On a quarterly basis, we review the estimated end-of-term market values of leased vehicles to assess the appropriateness of the carrying values at lease-end. To the extent the estimated end-of-term market value of a leased vehicle is lower than the residual value established at lease inception, the residual value of the leased vehicle is adjusted downward, thereby adjusting depreciation expense, so that the carrying value at lease end will approximate the estimated end-of-term market value. Factors affecting the estimated end-of-term market value are similar to those considered in the evaluation of residual values at lease inception discussed above. These factors are evaluated in the context of their historical trends to anticipate potential future changes in the relationship among these factors. For investments in operating leases, adjustments to depreciation expense are made prospectively on a straight-line basis over the remaining terms of the leases and are included in Depreciation on operating leases in the Consolidated Statement of Income. For direct finance leases, adjustments are made at the time of assessment and are recorded as a reduction of direct finance lease revenues. These adjustments for direct finance leases were not material for the periods presented in the Consolidated Statement of Income. We review our investments in operating leases for impairment whenever events or changes in circumstances indicate that the carrying value of the investments in operating leases may not be recoverable. If such events or changes in circumstances are present, we perform a test for recoverability by comparing the expected undiscounted future cash flows (including expected residual values) over the remaining lease terms to the carrying value of the asset group. If the test for recoverability identifies a possible impairment, the asset group's fair value is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value and is recorded in the current period Consolidated Statement of Income. See Note 5 – Investments in Operating Leases, Net for additional discussion and disclosure. |
Used Vehicles Held for Sale | Used Vehicles Held for Sale Used vehicles held for sale, reported in Other assets in the Consolidated Balance Sheet, consist of off-lease vehicles and repossessed vehicles. These vehicles are recorded at the lower of their carrying value or estimated fair value less costs to sell. These vehicles are sold promptly after grounding or repossession. |
Debt Issuance Costs | Debt Issuance Costs Costs that are direct and incremental to debt issuance are capitalized and amortized to interest expense on an effective yield basis over the contractual term of the debt. These costs are reported in Other assets in the Consolidated Balance Sheet. All other costs related to debt issuance are expensed as incurred. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If quoted prices in an active market are available, fair value is determined by reference to these prices. If quoted prices are not available, fair value is determined by valuation models that primarily use, as inputs, market-based or independently sourced parameters, including but not limited to interest rates, volatilities, foreign exchange rates and credit curves. Additionally, we may reference prices for similar instruments, quoted prices or recent transactions in less active markets. We use prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the availability of prices and inputs may be reduced for certain financial instruments. This condition could result in a financial instrument being reclassified from Level 1 to Level 2 or from Level 2 to Level 3. Level 1: Quoted (unadjusted) prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in active markets for similar assets and liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Unobservable inputs that are supported by little or no market activity and may require significant judgment in order to determine the fair value of the assets and liabilities. The use of observable and unobservable inputs is reflected in the fair value hierarchy assessment disclosed in the tables within this document. The availability of observable inputs can vary based upon the financial instrument and other factors, such as instrument type, market liquidity and other specific characteristics particular to the financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires additional judgment by management. The degree of unobservable inputs can result in financial instruments being classified as or transferred to the Level 3 category. Note 1 – Summary of Significant Accounting Policies (Continued) Valuation Methods We maintain policies and procedures to value financial instruments using the best and most relevant data available. Our Treasury Risk and Analytics Group (“TR&A”) is responsible for determining the fair value of our financial instruments. TR&A consists of quantitative analysts and risk and accounting professionals. Using benchmarking techniques, TR&A reviews our valuation pricing models at least annually to assess their ongoing propriety. As markets and products develop and the pricing for certain products becomes more or less transparent, TR&A refines its valuation methodologies. TR&A reviews the appropriateness of fair value measurements including validation processes, key model inputs, and the reconciliation of period-over-period fluctuations based on changes in key market inputs. Where possible, valuations, including both internally and externally obtained transaction prices, are validated against independent valuation sources. Our Fair Value Working Group (“FVWG”) reviews and approves the fair value measurement results and other relevant data quarterly. The FVWG consists of a cross-section of internal stakeholders who are knowledgeable in the area of financial valuations. All changes to our valuation methodologies are reviewed and approved by the FVWG. We conduct reviews of our primary pricing vendors to understand and assess the reasonableness of inputs used in their pricing process. While we do not have access to our vendors’ proprietary models, we perform detailed reviews of the pricing process, methodologies and control procedures for each asset class for which prices are provided. Our reviews include examination of the underlying inputs and assumptions for a sample of individual securities selected based on the nature and complexity of the securities. In addition, our pricing vendors have established processes in place for all valuations, which facilitates identification and resolution of potentially erroneous prices. We believe that the prices received from our pricing vendors, which represent fair value, are representative of prices that would be received to sell the assets or paid to transfer the liabilities at the measurement date and are classified appropriately in the hierarchy. Valuation Adjustments We may make valuation adjustments to ensure that financial instruments are recorded at fair value. These adjustments include amounts to reflect counterparty credit quality, our own creditworthiness, as well as constraints due to market illiquidity or unobservable parameters. Counterparty Credit Valuation Adjustments – Adjustments are required when the market price (or parameter) is not indicative of the credit quality of the counterparty. Non-Performance Credit Valuation Adjustments – Adjustments reflect our own non-performance risk when our liabilities are measured at fair value. Liquidity Valuation Adjustments – Adjustments are necessary when we are unable to observe prices for a financial instrument due to market illiquidity. Note 1 – Summary of Significant Accounting Policies (Continued) Recurring Fair Value Measurements Cash Equivalents Cash equivalents include money market instruments, U.S. government and agency obligations and certificates of deposit, which represent highly liquid investments with maturities of three months or less at purchase. Where money market instruments produce a daily net asset value in an active market, we use this value to determine the fair value of the investment and classify the investment in Level 1 of the fair value hierarchy. All other types of cash equivalents are classified in Level 2 of the fair value hierarchy. Investments in Marketable Securities The marketable securities portfolio consists of debt and equity securities. We estimate the value of our debt securities using observed transaction prices, independent pricing vendors, and internal pricing models. Pricing methodologies and inputs to valuation models used by the pricing vendors depend on the security type. Where possible, quoted prices in active markets for identical securities are used to determine the fair value of the investment securities; these securities are classified in Level 1 of the fair value hierarchy. Where quoted prices in active markets are not available, the pricing vendor uses various pricing models for each asset class that are consistent with what market participants use. The inputs and assumptions to the models of the pricing vendors are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market-related data. Since many fixed income securities do not trade on a daily basis, the pricing vendors use applicable available information, such as benchmark curves, benchmarking of similar securities, sector groupings, and matrix pricing. These investments are classified in Level 2 of the fair value hierarchy. Our pricing vendors may provide us with valuations that are based on significant unobservable inputs; in such circumstances, we classify these investments in Level 3 of the fair value hierarchy. Valuations obtained from third party pricing vendors are validated to assess their reasonableness. We hold investments in actively traded open-end equity and fixed income mutual funds, as well as private placement fixed income mutual funds. Where the funds produce a daily net asset value that is quoted in an active market, we use this value to determine the fair value of the fund investment and classify the investment in Level 1 of the fair value hierarchy. Where the funds produce a daily net asset value that is not quoted in an active market, we estimate the fair value of the investment using the net asset value per share and we classify such funds in Level 2 of the fair value hierarchy as we have the ability to redeem our investment at the net asset value per share at the measurement date. Derivatives We estimate the fair value of our derivatives using industry standard valuation models that require observable market inputs, including market prices, yield curves, credit curves, interest rates, foreign exchange rates, volatilities and the contractual terms of the derivative instruments. For derivatives that trade in liquid markets, model inputs can generally be verified and do not require significant management judgment. These derivative instruments are classified in Level 2 of the fair value hierarchy. Certain other derivative transactions trade in less liquid markets with limited pricing information. For such derivatives, key inputs to the valuation process include quotes from counterparties and other market data used to corroborate and adjust values where appropriate. Other market data includes values obtained from a market participant that serves as a third party pricing vendor. Inputs obtained from counterparties and third party pricing vendors are internally validated using valuation models to assess the reasonableness of changes in factors such as market prices, yield curves, credit curves, interest rates, foreign exchange rates and volatilities. These derivative instruments are classified in Level 3 of the fair value hierarchy. Our derivative fair value measurements consider assumptions about counterparty credit risk and our own non-performance risk. We consider counterparty credit risk and our own non-performance risk through credit valuation adjustments. Note 1 – Summary of Significant Accounting Policies (Continued) Nonrecurring Fair Value Measurements Impaired Dealer Finance Receivables For finance receivables within the dealer products portfolio segment for which there is evidence of impairment, we may measure impairment based on discounted cash flows, the loan’s observable market price or the fair value of the underlying collateral if the loan is collateral-dependent. If the loan is collateral-dependent, the fair values of impaired finance receivables are reported at fair value on a nonrecurring basis. The methods used to estimate the fair value of the underlying collateral depends on the specific class of finance receivable. For finance receivables within the wholesale class of finance receivables, the collateral value is generally based on wholesale market value or liquidation value for new and used vehicles. For finance receivables within the real estate class of finance receivables, the collateral value is generally based on appraisals. For finance receivables within the working capital class of finance receivables, the collateral value is generally based on the expected liquidation value of the underlying dealership assets. Adjustments may be performed in circumstances where market comparables are not specific to the attributes of the specific collateral or appraisal information may not be reflective of current market conditions due to the passage of time and the occurrence of market events since receipt of the information. As these valuations utilize unobservable inputs, our impaired finance receivables are classified in Level 3 of the fair value hierarchy. Impaired Retail Receivables Retail finance receivables greater than 120 days past due are measured at fair value based on the fair value of the underlying collateral less costs to sell. The fair value of collateral is based on the current average selling prices for like vehicles at wholesale used vehicle auctions. Vehicles are sold promptly upon repossession. Financial Instruments Not Carried at Fair Value Finance Receivables Our finance receivables consist of retail loans, comprised of retail and commercial loan contracts, and dealer financing, comprised of wholesale, real estate and working capital financing. Retail finance receivables are primarily valued using a securitization model that incorporates expected cash flows. Cash flows expected to be collected are estimated using contractual principal and interest payments adjusted for specific factors, such as prepayments, default rates, loss severity, credit scores, and collateral type. The securitization model utilizes quoted secondary market rates if available, or estimated market rates that incorporate management's best estimate of investor assumptions about the portfolio. The dealer financing portfolio is valued using a discounted cash flow model. Discount rates are derived based on market rates for equivalent portfolio bond ratings. As these valuations utilize unobservable inputs, our finance receivables are classified in Level 3 of the fair value hierarchy. Commercial Paper The carrying value of commercial paper issued is assumed to approximate fair value due to its short duration and generally negligible credit risk. We validate this assumption by recalculating the fair value of our commercial paper using quoted market rates. Commercial paper is classified in Level 2 of the fair value hierarchy. Note 1 – Summary of Significant Accounting Policies (Continued) Unsecured Notes and Loans Payable Unsecured notes and loans payable are primarily valued using current market rates and credit spreads for debt with similar maturities. Our valuation models utilize observable inputs such as standard industry curves; therefore, we classify these unsecured notes and loans payables in Level 2 of the fair value hierarchy. Where observable inputs are not available, we use quoted market prices to estimate the fair value of unsecured notes and loans payable. These unsecured notes and loans payable are classified in Level 3 of the fair value hierarchy since the market for these instruments is not active. In a limited number of instances, where neither observable inputs nor quoted market prices are available, we estimate the fair value of unsecured notes and loans payable using quotes from counterparties or a third party pricing vendor. We review the appropriateness of these fair value measurements by assessing the reasonableness of period over period fluctuations. Since the valuations utilize unobservable inputs, we classify these unsecured notes and loans payable in Level 3 of the fair value hierarchy. Secured Notes and Loans Payable Fair value is estimated based on current market rates and credit spreads for debt with similar maturities. We also use internal assumptions, including prepayment speeds and expected credit losses on the underlying securitized assets, to estimate the timing of cash flows to be paid on these instruments. As these valuations utilize unobservable inputs, our secured notes and loans payables are classified in Level 3 of the fair value hierarchy. See Note 2 – Fair Value Measurements for additional discussion and disclosure. |
Derivative Instruments | Derivative Instruments 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 held with the same counterparty on a net basis. Changes in the fair value of derivatives are recorded in Interest expense in the Consolidated Statement of Income. We categorize derivatives as those designated for hedge accounting (“hedge accounting derivatives”) and those that are not designated for hedge accounting (“non-hedge accounting derivatives”). At the inception of a derivative contract, we may elect to designate a derivative as a hedge accounting derivative if certain criteria are met. Hedge accounting derivatives are not widely used as a part of our risk management strategy. Hedge Accounting Derivatives We use derivatives to reduce the risk of changes in the fair value of debt. We have designated certain derivatives as hedge accounting derivatives. In these instances, the risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged. When we designate a derivative in a hedging relationship, we contemporaneously document the risk management objective and strategy. This documentation includes the identification of the hedging instrument, the hedged item and the risk exposure, how we will assess effectiveness prospectively and retrospectively, and how often we will carry out this assessment. We use the “long-haul” method of assessing effectiveness for our fair value hedges, except for certain types of existing hedge relationships that meet stringent criteria where we apply the shortcut method. The shortcut method provides an assumption of zero ineffectiveness that results in equal and offsetting changes in fair value in the Consolidated Statement of Income for both the hedged debt and the hedge accounting derivative. When the shortcut method is not applied, any ineffective portion of the derivative that is designated as a fair value hedge is recognized as a component of Interest expense in the Consolidated Statement of Income. We recognize changes in the fair value of derivatives designated in fair value hedging relationships (including foreign currency fair value hedging relationships) in Interest expense in the Consolidated Statement of Income along with the fair value changes of the related hedged item. Note 1 – Summary of Significant Accounting Policies (Continued) If we elect not to designate a derivative instrument in a hedging relationship, the full change in the fair value of the derivative instrument is recognized as a component of Interest expense in the Consolidated Statement of Income with no offsetting adjustment for the economically hedged item. We review the effectiveness of our hedging relationships at least quarterly to determine whether the relationships have been and continue to be effective. We use regression analysis to assess the effectiveness of our hedges. When we determine that a hedging relationship is not or has not been effective, hedge accounting is no longer applied. If hedge accounting is discontinued, we continue to carry the derivative instrument as a component of Other assets or Other liabilities in the Consolidated Balance Sheet at fair value, with changes in fair value reported in Interest expense in the Consolidated Statement of Income. Additionally, for discontinued fair value hedges, we cease to adjust the hedged item for changes in fair value and amortize the cumulative fair value adjustments recognized in prior periods over the remaining term of the hedged item. We will also discontinue the use of hedge accounting if a derivative is sold, terminated, or if management determines that designating a derivative under hedge accounting is no longer deemed appropriate based on current investment strategy (“de-designated derivatives”). De-designated derivatives are included within the category of non-hedge accounting derivatives. Non-hedge accounting derivatives Our non-hedge accounting derivatives are carried at fair value. The full change in the fair value of the derivative instrument is recognized as a component of Interest expense in the Consolidated Statement of Income with no offsetting adjustment for the economically hedged item. The derivative instrument is included as a component of Other assets or Other liabilities in the Consolidated Balance Sheet. Embedded Derivatives Periodically, we issue debt instruments which are considered “hybrid financial instruments”. These debt instruments are assessed to determine whether they contain embedded derivatives requiring separate reporting and accounting. The embedded derivative may be bifurcated and recorded on the balance sheet at fair value or the entire financial instrument may be recorded at fair value. As applicable, changes in the fair value of the bifurcated embedded derivative or the entire hybrid financial instrument are reported in Interest expense in the Consolidated Statement of Income. We had no embedded derivatives that needed to be bifurcated and evaluated separately as of March 31, 2016 and 2015. Offsetting of Derivatives The accounting guidance permits the net presentation on the Consolidated Balance Sheet of derivative receivables and derivative payables with the same counterparty and the related cash collateral when a legally enforceable master netting agreement exists. When we meet this condition, we elect to present such balances on a net basis. We use master netting agreements to mitigate counterparty credit risk in derivative transactions. A master netting agreement is a contract with a counterparty that permits multiple transactions governed by that contract to be cancelled and settled with a single net balance paid to either party in the event of default or other termination event outside the normal course of business, such as a ratings downgrade of either party to the contract. Our reciprocal collateral agreements require the transfer of cash collateral to the party in a net asset position across all transactions governed by the master netting agreement. Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization arrangement. Upon default, the collateral agreement grants the party in a net asset position the right to set-off amounts receivable against any posted collateral. See Note 7 – Derivatives, Hedging Activities and Interest Expense for additional discussion and disclosure. |
Foreign Currency Transactions | Foreign Currency Transactions Certain transactions we have entered into related to debt are denominated in foreign currencies. If the debt is not in a designated hedge accounting relationship, 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. Gains and losses related to foreign currency transactions are included in Interest expense in the Consolidated Statement of Income. Payments on debt in the Consolidated Statement of Cash Flows include repayment of principal and the net amount of exchange of notional on currency swaps that economically hedge these transactions. Proceeds from issuance of debt in the Consolidated Statement of Cash Flows include both the proceeds from the initial issuance of debt and the net amount of exchange of notional on currency swaps that economically hedge these transactions. |
Risk Transfer | Risk Transfer Our insurance operations transfer certain risks to protect us against the impact of unpredictable high severity losses. The amounts recoverable from reinsurers and other companies that assume liabilities relating to our insurance operations are determined in a manner consistent with the related reinsurance or risk transfer agreement. Amounts recoverable from reinsurers and other companies on unpaid losses are recorded as a receivable but are not collectible until the losses are paid. Revenues related to risks transferred are recognized on the same basis as the related revenues from the underlying agreements. Covered losses are recorded as a reduction to insurance losses and loss adjustment expenses. |
Income Taxes | Income Taxes We use the liability method of accounting for income taxes under which deferred tax assets and liabilities are adjusted to reflect changes in tax rates and laws in the period such changes are enacted resulting in adjustments to the current fiscal year’s provision for income taxes. TMCC files a consolidated federal income tax return with its subsidiaries and TFSA. TMCC files either separate or consolidated/combined state income tax returns with Toyota Motor North America (“TMNA”), TFSA, or subsidiaries of TMCC. State income tax expense is generally recognized as if TMCC and its subsidiaries filed their tax returns on a stand-alone basis. In those states where TMCC and its subsidiaries join in the filing of consolidated or combined income tax returns, TMCC and its subsidiaries are allocated their share of the total income tax expense based on combined allocation/apportionment factors and separate company income or loss. Based on the federal and state tax sharing agreements, TFSA and TMCC and its subsidiaries pay for their share of the income tax expense and are reimbursed for the benefit of any of their tax losses utilized in the federal and state income tax returns. |
New Accounting Guidance | New Accounting Guidance In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance on recognition of revenue from contracts with customers. This comprehensive standard will supersede virtually all existing revenue recognition guidance. This standard applies to all contracts with customers except leases, insurance contracts, financial instruments, guarantees, and certain nonmonetary exchanges. In August 2015, the FASB issued a one-year deferral of the effective date, with early adoption as of the original effective date permitted. We expect to adopt the new guidance on its deferred effective date, which is April 1, 2018 for TMCC. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In February 2015, the FASB issued new guidance that amends the analysis a reporting entity must perform to determine whether it should consolidate certain legal entities. This accounting guidance is effective for us on April 1, 2016. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In April 2015, the FASB issued new guidance that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. In August 2015, the FASB issued an additional update which clarifies that debt issuance costs for line of credit agreements may continue to be deferred and amortized. This accounting guidance will be effective for us on April 1, 2016. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In April 2015, the FASB issued new guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. While similar guidance exists under current U.S. GAAP for cloud service providers, this update provides explicit guidance for a customer's accounting. This accounting guidance will be effective for us on April 1, 2016. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In May 2015, the FASB issued new guidance that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. This accounting guidance will be effective for us on April 1, 2016. The adoption of this guidance is limited to footnote disclosure and will not have an impact on our consolidated financial statements. In May 2015, the FASB issued new guidance that requires additional disclosures related to short-duration insurance contracts. This accounting guidance will be effective for us for the annual period beginning April 1, 2016 and for interim periods within annual periods beginning April 1, 2017. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In January 2016, the FASB issued new guidance that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments and will require entities to measure equity investments at fair value and recognize any changes in fair value in net income. This accounting guidance will be effective for us on April 1, 2018. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In February 2016, the FASB issued new guidance that introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard. The new lease standard represents a wholesale change to lease accounting. This accounting guidance will be effective for us on April 1, 2019. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. Note 1 – Summary of Significant Accounting Policies (Continued) In March 2016, the FASB issued new guidance which clarifies that a change in the counterparty to a designated derivative hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. This accounting guidance will be effective for us on April 1, 2017. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In March 2016, the FASB issued new guidance which clarifies whether an embedded contingent put or call option is clearly and closely related to the debt host when bifurcating an embedded derivative. This accounting guidance will be effective for us on April 1, 2017. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In March 2016, the FASB issued new guidance that clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard discussed above. This accounting guidance will be effective for us on April 1, 2018. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In April 2016, the FASB issued new guidance that amends the guidance on identifying performance obligations and accounting for licenses of intellectual property in the new revenue standard discussed above. This accounting guidance will be effective for us on April 1, 2018. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In May 2016, the FASB issued new guidance that amends the guidance on certain implementation and transition issues in the new revenue recognition standard discussed above. This accounting guidance will be effective for us on April 1, 2018. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In April 2015, new FASB accounting guidance became effective that amends the requirements for the reporting of discontinued operations and requires certain additional disclosures. Under the new guidance, only disposals that represent a strategic shift and that have (or will have) a major effect on an entity’s operations and financial results should be presented as discontinued operations. This guidance was adopted by us in August 2015 when we reclassified certain assets and liabilities related to our commercial finance business as held-for-sale. Our adoption of this guidance did not have a material impact on our consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | 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. March 31, 2016 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Cash equivalents: Money market instruments $ 360 $ 1,209 $ - $ - $ 1,569 U.S. government and agency obligations 450 105 - - 555 Certificates of deposit - 500 - - 500 Cash equivalents total 810 1,814 - - 2,624 Available-for-sale securities: Debt instruments: U.S. government and agency obligations 2,777 56 2 - 2,835 Municipal debt securities - 11 - - 11 Certificates of deposit 300 200 - - 500 Commercial paper - 50 - - 50 Corporate debt securities 228 252 7 - 487 Mortgage-backed securities: U.S. government agency - 59 - - 59 Non-agency residential - - 3 - 3 Non-agency commercial - - 42 - 42 Asset-backed securities - - 37 - 37 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II - 178 - - 178 U.S. government sector fund - 358 - - 358 Municipal sector fund - 19 - - 19 Investment grade corporate sector fund - 246 - - 246 High-yield sector fund - 66 - - 66 Real return sector fund - 212 - - 212 Mortgage sector fund - 302 - - 302 Asset-backed securities sector fund - 124 - - 124 Emerging market sector fund - 102 - - 102 International sector fund - 140 - - 140 Total return bond funds 380 - - - 380 Equity mutual fund 389 - - - 389 Available-for-sale securities total 4,074 2,375 91 - 6,540 Derivative assets: Foreign currency swaps - 329 - - 329 Interest rate swaps - 601 39 - 640 Interest rate floors - 4 - - 4 Counterparty netting and collateral - - - (905 ) (905 ) Derivative assets total - 934 39 (905 ) 68 Assets at fair value 4,884 5,123 130 (905 ) 9,232 Derivative liabilities: Foreign currency swaps - (821 ) (14 ) - (835 ) Interest rate swaps - (475 ) - - (475 ) Counterparty netting and collateral - - - 1,303 1,303 Liabilities at fair value - (1,296 ) (14 ) 1,303 (7 ) Net assets at fair value $ 4,884 $ 3,827 $ 116 $ 398 $ 9,225 Derivative assets were reduced by a counterparty credit valuation adjustment of $2 million and $1 million as of March 31, 2016 and 2015, respectively. Derivative liabilities were reduced by a non-performance credit valuation adjustment of less than $1 million as of March 31, 2015. March 31, 2015 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Cash equivalents: Money market instruments $ 249 $ 820 $ - $ - $ 1,069 U.S. government and agency obligations 40 - - - 40 Certificates of deposit - 1,105 - - 1,105 Cash equivalents total 289 1,925 - - 2,214 Available-for-sale securities: Debt instruments: U.S. government and agency obligations 4,215 142 2 - 4,359 Municipal debt securities - 12 - - 12 Certificates of deposit - 175 - - 175 Commercial paper 37 - - - 37 Corporate debt securities - 131 14 - 145 Mortgage-backed securities: U.S. government agency - 59 - - 59 Non-agency residential - - 4 - 4 Non-agency commercial - - 44 - 44 Asset-backed securities - - 39 - 39 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II - 148 - - 148 Short-term sector fund - 37 - - 37 U.S. government sector fund - 335 - - 335 Municipal sector fund - 20 - - 20 Investment grade corporate sector fund - 268 - - 268 High-yield sector fund - 55 - - 55 Real return sector fund - 232 - - 232 Mortgage sector fund - 399 - - 399 Asset-backed securities sector fund - 72 - - 72 Emerging market sector fund - 71 - - 71 International sector fund - 160 - - 160 Equity mutual fund 460 - - - 460 Available-for-sale securities total 4,712 2,316 103 - 7,131 Derivative assets: Foreign currency swaps - 210 7 - 217 Interest rate swaps - 470 1 - 471 Counterparty netting and collateral - - - (635 ) (635 ) Derivative assets total - 680 8 (635 ) 53 Assets at fair value 5,001 4,921 111 (635 ) 9,398 Derivative liabilities: Foreign currency swaps - (1,888 ) - - (1,888 ) Interest rate swaps - (386 ) - - (386 ) Counterparty netting and collateral - - - 2,184 2,184 Liabilities at fair value - (2,274 ) - 2,184 (90 ) Net assets at fair value $ 5,001 $ 2,647 $ 111 $ 1,549 $ 9,308 |
Assets and Liabilities Measured on Recurring Basis Using Significant Unobservable Inputs | The following tables summarize the reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs: Year Ended March 31, 2016 Total net assets Available-for-sale securities Derivative instruments, net (liabilities) U.S. Total Total government Corporate Mortgage- Asset- available- Interest Foreign derivative and agency debt backed backed for-sale rate currency assets obligations securities securities securities securities swaps swaps (liabilities) Fair value, April 1, 2015 $ 2 $ 14 $ 48 $ 39 $ 103 $ 1 $ 7 $ 8 $ 111 Total gains (losses) Included in earnings - - - - - 34 (13 ) 21 21 Included in other comprehensive income - (1 ) (2 ) (1 ) (4 ) - - - (4 ) Purchases, issuances, sales, and settlements Purchases - - 2 5 7 - - - 7 Issuances - - - - - - - - - Sales - (2 ) - (1 ) (3 ) - - - (3 ) Settlements - - (3 ) (5 ) (8 ) 4 (8 ) (4 ) (12 ) Transfers in to Level 3 - - - - - - - - - Transfers out of Level 3 - (4 ) - - (4 ) - - - (4 ) Fair value, March 31, 2016 $ 2 $ 7 $ 45 $ 37 $ 91 $ 39 $ (14 ) $ 25 $ 116 The amount of total gains (losses) included in earnings attributable to assets held at the reporting date $ 34 $ (13 ) $ 21 $ 21 Year Ended March 31, 2015 Total net assets Available-for-sale securities Derivative instruments, net (liabilities) U.S. Total Total government Corporate Mortgage- Asset- available- Interest Foreign derivative and agency debt backed backed for-sale rate currency assets obligations securities securities securities securities swaps swaps (liabilities) Fair value, April 1, 2014 $ 2 $ 12 $ 48 $ 27 $ 89 $ 3 $ 70 $ 73 $ 162 Total (losses) Included in earnings - - - - - - (54 ) (54 ) (54 ) Included in other comprehensive income - - 2 - 2 - - - 2 Purchases, issuances, sales, and settlements Purchases - 3 12 22 37 - - - 37 Issuances - - - - - - - - - Sales - (3 ) (7 ) (5 ) (15 ) - - - (15 ) Settlements - - (7 ) (5 ) (12 ) (2 ) (9 ) (11 ) (23 ) Transfers in to Level 3 - 2 - - 2 - - - 2 Transfers out of Level 3 - - - - - - - - - Fair value, March 31, 2015 $ 2 $ 14 $ 48 $ 39 $ 103 $ 1 $ 7 $ 8 $ 111 The amount of total (losses) included in earnings attributable to assets held at the reporting date $ - $ (54 ) $ (54 ) $ (54 ) |
Financial Assets and Liabilities Not Carried at Fair Value on Recurring Basis in Consolidated Balance Sheet | The following tables provide information about assets and liabilities not carried at fair value on a recurring basis on our Consolidated Balance Sheet: March 31, 2016 Carrying Total Fair value Level 1 Level 2 Level 3 Value Financial assets Finance receivables, net Retail loan $ 49,865 $ - $ - $ 49,551 $ 49,551 Wholesale 9,160 - - 9,207 9,207 Real estate 4,590 - - 4,277 4,277 Working capital 1,888 - - 1,894 1,894 Financial liabilities Commercial paper $ 26,608 $ - $ 26,608 $ - $ 26,608 Unsecured notes and loans payable 52,978 - 52,913 1,387 54,300 Secured notes and loans payable 14,139 - - 14,125 14,125 March 31, 2015 Carrying Total Fair value Level 1 Level 2 Level 3 Value Financial assets Finance receivables, net Retail loan $ 49,734 $ - $ - $ 49,887 $ 49,887 Commercial 217 - - 223 223 Wholesale 9,123 - - 9,176 9,176 Real estate 4,602 - - 4,564 4,564 Working capital 1,815 - - 1,804 1,804 Financial liabilities Commercial paper $ 27,006 $ - $ 27,006 $ - $ 27,006 Unsecured notes and loans payable 52,388 - 53,174 634 53,808 Secured notes and loans payable 10,837 - - 10,832 10,832 |
Investments in Marketable Sec29
Investments in Marketable Securities (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Marketable Securities [Abstract] | |
Summary of Investments in Marketable Securities | The amortized cost and estimated fair value of investments in marketable securities and related unrealized gains and losses were as follows: March 31, 2016 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale securities: Debt instruments: U.S. government and agency obligations $ 2,833 $ 3 $ (1 ) $ 2,835 Municipal debt securities 10 1 - 11 Certificates of deposit 500 - - 500 Commercial paper 50 - - 50 Corporate debt securities 482 7 (2 ) 487 Mortgage-backed securities: U.S. government agency 57 2 - 59 Non-agency residential 2 1 - 3 Non-agency commercial 42 1 (1 ) 42 Asset-backed securities 38 - (1 ) 37 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II 178 - - 178 U.S. government sector fund 353 6 (1 ) 358 Municipal sector fund 19 - - 19 Investment grade corporate sector fund 243 8 (5 ) 246 High-yield sector fund 67 - (1 ) 66 Real return sector fund 201 11 - 212 Mortgage sector fund 297 5 - 302 Asset-backed securities sector fund 117 8 (1 ) 124 Emerging market sector fund 101 1 - 102 International sector fund 145 - (5 ) 140 Total return bond funds 376 4 - 380 Equity mutual fund 162 227 - 389 Total investments in marketable securities $ 6,273 $ 285 $ (18 ) $ 6,540 Note 3 – Investments in Marketable Securities (Continued) March 31, 2015 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale securities: Debt instruments: U.S. government and agency obligations $ 4,357 $ 3 $ (1 ) $ 4,359 Municipal debt securities 10 2 - 12 Certificates of deposit 175 - - 175 Commercial paper 37 - - 37 Corporate debt securities 138 7 - 145 Mortgage-backed securities: U.S. government agency 57 2 - 59 Non-agency residential 3 1 - 4 Non-agency commercial 43 1 - 44 Asset-backed securities 39 - - 39 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II 148 - - 148 Short-term sector fund 35 2 - 37 U.S. government sector fund 311 24 - 335 Municipal sector fund 19 1 - 20 Investment grade corporate sector fund 256 15 (3 ) 268 High-yield sector fund 50 6 (1 ) 55 Real return sector fund 235 - (3 ) 232 Mortgage sector fund 390 9 - 399 Asset-backed securities sector fund 63 9 - 72 Emerging market sector fund 73 - (2 ) 71 International sector fund 146 14 - 160 Equity mutual fund 190 270 - 460 Total investments in marketable securities $ 6,775 $ 366 $ (10 ) $ 7,131 |
Schedule of Realized Gains and Losses on Sales from AFS | The following table represents realized gains and losses by transaction type: Years Ended March 31, 2016 2015 2014 Available-for-sale securities: Realized gains on sales $ 59 $ 71 $ 59 Realized losses on sales $ (3 ) $ (1 ) $ (4 ) Other-than-temporary impairment $ (50 ) $ - $ (55 ) |
Summary of Contractual Maturities of Available-for-Sale Securities | The amortized cost, fair value and contractual maturities of available-for-sale debt instruments 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. March 31, 2016 Amortized Fair Value Available-for-sale debt instruments: Due within 1 year $ 2,664 $ 2,665 Due after 1 year through 5 years 1,044 1,047 Due after 5 years through 10 years 71 72 Due after 10 years 96 99 Mortgage-backed and asset-backed securities 1 139 141 Total $ 4,014 $ 4,024 1 |
Finance Receivables, Net (Table
Finance Receivables, Net (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Net Financing Receivables | Finance receivables, net consisted of the following: March 31, March 31, 2016 2015 Retail receivables $ 36,020 $ 39,141 Securitized retail receivables 14,343 11,682 Dealer financing 15,899 15,744 66,262 66,567 Deferred origination (fees) and costs, net 663 646 Deferred income (868 ) (911 ) Allowance for credit losses Retail and securitized retail receivables (289 ) (301 ) Dealer financing (132 ) (108 ) Total allowance for credit losses (421 ) (409 ) Finance receivables, net $ 65,636 $ 65,893 |
Contractual Maturities on Retail Receivables and Dealer Financing | Contractual maturities on retail receivables and dealer financing are as follows: Contractual maturities Years ending March 31, Retail Dealer financing 2017 $ 14,337 $ 11,773 2018 12,902 1,608 2019 10,399 906 2020 7,338 532 2021 4,006 501 Thereafter 1,381 579 Total $ 50,363 $ 15,899 |
Finance Receivables Credit Quality Indicators | The tables below present each credit quality indicator by class of finance receivables: Retail Loan Commercial March 31, March 31, March 31, March 31, 2016 2015 2016 2015 Aging of finance receivables: Current $ 49,590 $ 49,684 $ - $ 511 30-59 days past due 584 467 - 8 60-89 days past due 129 100 - 2 90 days or greater past due 60 51 - - Total $ 50,363 $ 50,302 $ - $ 521 Wholesale Real Estate Working Capital March 31, March 31, March 31, March 31, March 31, March 31, 2016 2015 2016 2015 2016 2015 Credit quality indicators: Performing $ 8,099 $ 7,993 $ 3,822 $ 3,782 $ 1,686 $ 1,643 Credit Watch 1,041 1,137 763 842 229 176 At Risk 113 60 109 37 17 32 Default 9 36 10 4 1 2 Total $ 9,262 $ 9,226 $ 4,704 $ 4,665 $ 1,933 $ 1,853 |
Summary of Impaired Loans by Class of Finance Receivable | The following table summarizes the information related to our impaired loans by class of finance receivables: Impaired Individually Evaluated Finance Receivables Unpaid Principal Balance Allowance March 31, March 31, March 31, 2016 2015 2016 2015 2016 2015 Impaired account balances individually evaluated for impairment with an allowance: Wholesale $ 98 $ 76 $ 98 $ 76 $ 9 $ 14 Real estate 119 52 119 52 15 10 Working capital 37 34 37 34 30 31 Total $ 254 $ 162 $ 254 $ 162 $ 54 $ 55 Impaired account balances individually evaluated for impairment without an allowance: Wholesale $ 185 $ 105 $ 185 $ 105 Real estate 98 91 98 91 Working capital 3 2 3 2 Total $ 286 $ 198 $ 286 $ 198 Impaired account balances aggregated and evaluated for impairment: Retail loan $ 226 $ 264 $ 223 $ 261 Commercial - - - - Total $ 226 $ 264 $ 223 $ 261 Total impaired account balances: Retail loan $ 226 $ 264 $ 223 $ 261 Commercial - - - - Wholesale 283 181 283 181 Real estate 217 143 217 143 Working capital 40 36 40 36 Total $ 766 $ 624 $ 763 $ 621 The following table summarizes the average impaired loans by class of finance receivables as of the balance sheet date and the interest income recognized on these loans: Average Impaired Finance Interest Income Recognized Years Ended March 31, Years Ended March 31, 2016 2015 2016 2015 Impaired account balances individually evaluated for impairment with an allowance: Wholesale $ 86 $ 29 $ 1 $ - Real estate 93 26 2 1 Working capital 35 25 2 1 Total $ 214 $ 80 $ 5 $ 2 Impaired account balances individually evaluated for impairment without an allowance: Wholesale $ 132 $ 66 $ 3 $ 1 Real estate 92 91 4 3 Working capital 4 3 - - Total $ 228 $ 160 $ 7 $ 4 Impaired account balances aggregated and evaluated for impairment: Retail loan $ 246 $ 294 $ 18 $ 22 Commercial - 1 - - Total $ 246 $ 295 $ 18 $ 22 Total impaired account balances: Retail loan $ 246 $ 294 $ 18 $ 22 Commercial - 1 - - Wholesale 218 95 4 1 Real estate 185 117 6 4 Working capital 39 28 2 1 Total $ 688 $ 535 $ 30 $ 28 |
Investments in Operating Leas31
Investments in Operating Leases, Net (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Leases Operating [Abstract] | |
Investments in Operating Leases, Net | Investments in operating leases, net consisted of the following: March 31, March 31, 2016 2015 Investments in operating leases $ 42,220 $ 37,555 Securitized investments in operating leases 3,364 1,571 45,584 39,126 Deferred origination (fees) and costs, net (190 ) (169 ) Deferred income (1,080 ) (968 ) Accumulated depreciation (7,712 ) (6,785 ) Allowance for credit losses (114 ) (76 ) Investments in operating leases, net $ 36,488 $ 31,128 |
Future Minimum Rentals on Investments in Operating Leases | Future minimum rentals on investments in operating leases are as follows: Years ending March 31, Future minimum rentals on operating leases 2017 $ 5,523 2018 3,764 2019 1,555 2020 189 2021 17 Thereafter - Total $ 11,048 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses on Finance Receivables and Investments in Operating Leases | The following table provides information related to our allowance for credit losses on finance receivables and investments in operating leases: Years Ended March 31, 2016 2015 2014 Allowance for credit losses at beginning of period $ 485 $ 454 $ 527 Provision for credit losses 441 308 170 Transferred to held-for-sale 1 (7 ) - - Charge-offs, net of recoveries (384 ) (277 ) (243 ) Allowance for credit losses at end of period $ 535 $ 485 $ 454 1 |
Allowance for Credit Losses and Finance Receivables by Portfolio Segment | The following tables provide information related to our allowance for credit losses and finance receivables by portfolio segment for: Year Ended March 31, 2016 Retail Loan Commercial Dealer Total Beginning balance, April 1, 2015 $ 299 $ 2 $ 108 $ 409 Charge-offs (328 ) (1 ) - (329 ) Recoveries 49 - - 49 Provisions 269 1 28 298 Transferred to held-for-sale - (2 ) (4 ) (6 ) Ending balance, March 31, 2016 $ 289 $ - $ 132 $ 421 Ending balance: Individually evaluated for impairment $ - $ - $ 54 $ 54 Ending balance: Collectively evaluated for impairment $ 289 $ - $ 78 $ 367 Finance Receivables: Ending balance, March 31, 2016 $ 50,363 $ - $ 15,899 $ 66,262 Ending balance: Individually evaluated for impairment $ - $ - $ 540 $ 540 Ending balance: Collectively evaluated for impairment $ 50,363 $ - $ 15,359 $ 65,722 Year Ended March 31, 2015 Retail Loan Commercial Dealer Total Beginning balance, April 1, 2014 $ 296 $ 2 $ 88 $ 386 Charge-offs (273 ) (2 ) (1 ) (276 ) Recoveries 61 1 1 63 Provisions 215 1 20 236 Ending balance, March 31, 2015 $ 299 $ 2 $ 108 $ 409 Ending balance: Individually evaluated for impairment $ - $ - $ 55 $ 55 Ending balance: Collectively evaluated for impairment $ 299 $ 2 $ 53 $ 354 Finance Receivables: Ending balance, March 31, 2015 $ 50,302 $ 521 $ 15,744 $ 66,567 Ending balance: Individually evaluated for impairment $ - $ - $ 360 $ 360 Ending balance: Collectively evaluated for impairment $ 50,302 $ 521 $ 15,384 $ 66,207 |
Past Due Finance Receivables and Investments in Operating Leases | The following table shows aggregate balances of finance receivables and investments in operating leases 60 or more days past due: March 31, March 31, 2016 2015 Aggregate balances 60 or more days past due Finance receivables $ 189 $ 153 Investments in operating leases 80 52 Total $ 269 $ 205 |
Past Due Finance Receivables by Class | The following tables summarize the aging of finance receivables by class: March 31, 2016 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Greater Past Due Total Due Current Total Receivables 90 Days or Greater Due and Accruing Retail loan $ 584 $ 129 $ 60 $ 773 $ 49,590 $ 50,363 $ 35 Wholesale - - - - 9,262 9,262 - Real estate - - - - 4,704 4,704 - Working capital - - - - 1,933 1,933 - Total $ 584 $ 129 $ 60 $ 773 $ 65,489 $ 66,262 $ 35 March 31, 2015 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Greater Past Due Total Due Current Total Receivables 90 Greater Due and Accruing Retail loan $ 467 $ 100 $ 51 $ 618 $ 49,684 $ 50,302 $ 32 Commercial 8 2 - 10 511 521 - Wholesale - - - - 9,226 9,226 - Real estate - - - - 4,665 4,665 - Working capital - - - - 1,853 1,853 - Total $ 475 $ 102 $ 51 $ 628 $ 65,939 $ 66,567 $ 32 |
Derivatives, Hedging Activiti33
Derivatives, Hedging Activities and Interest Expense (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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 in the Consolidated Balance Sheet: March 31, 2016 Hedge accounting Non-hedge derivatives accounting Total Fair Fair Fair Notional value Notional value Notional value Other assets: Interest rate swaps $ - $ - $ 29,469 $ 640 $ 29,469 $ 640 Interest rate floors - - 1,679 4 1,679 4 Foreign currency swaps 364 39 4,337 290 4,701 329 Total $ 364 $ 39 $ 35,485 $ 934 $ 35,849 $ 973 Counterparty netting and collateral held (905 ) Carrying value of derivative contracts – Other assets $ 68 Other liabilities: Interest rate swaps $ - $ - $ 68,383 $ 475 $ 68,383 $ 475 Interest rate caps - - 30 - 30 - Foreign currency swaps - - 9,340 835 9,340 835 Total $ - $ - $ 77,753 $ 1,310 $ 77,753 $ 1,310 Counterparty netting and collateral posted (1,303 ) Carrying value of derivative contracts – Other liabilities $ 7 Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued) March 31, 2015 Hedge accounting Non-hedge derivatives accounting Total Fair Fair Fair Notional value Notional value Notional value Other assets: Interest rate swaps $ 190 $ 4 $ 26,549 $ 467 $ 26,739 $ 471 Foreign currency swaps 271 24 913 193 1,184 217 Total $ 461 $ 28 $ 27,462 $ 660 $ 27,923 $ 688 Counterparty netting and collateral held (635 ) Carrying value of derivative contracts – Other assets $ 53 Other liabilities: Interest rate swaps $ - $ - $ 64,852 $ 386 $ 64,852 $ 386 Interest rate caps - - 50 - 50 - Foreign currency swaps 251 43 12,971 1,845 13,222 1,888 Total $ 251 $ 43 $ 77,873 $ 2,231 $ 78,124 $ 2,274 Counterparty netting and collateral posted (2,184 ) Carrying value of derivative contracts – Other liabilities $ 90 |
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 Statement of Income: Years Ended March 31, 2016 2015 2014 Interest expense on debt $ 1,308 $ 1,213 $ 1,262 Interest income on hedge accounting derivatives (16 ) (43 ) (85 ) Interest income on non-hedge accounting foreign currency swaps (94 ) (147 ) (202 ) Interest expense on non-hedge accounting interest rate swaps 103 123 210 Interest expense on debt and derivatives, net 1,301 1,146 1,185 Loss on hedge accounting derivatives: Interest rate swaps - 19 20 Foreign currency swaps - 122 8 Loss on hedge accounting derivatives - 141 28 Less hedged item: change in fair value of fixed rate debt (2 ) (142 ) (31 ) Ineffectiveness related to hedge accounting derivatives (2 ) (1 ) (3 ) Loss (gain) from foreign currency transactions and non-hedge accounting derivatives: Loss (gain) on non-hedge accounting foreign currency transactions 503 (2,375 ) (45 ) (Gain) loss on non-hedge accounting foreign currency swaps (573 ) 2,248 185 (Gain) loss on non-hedge accounting interest rate swaps (92 ) (282 ) 18 Total interest expense $ 1,137 $ 736 $ 1,340 |
Other Assets and Other Liabil34
Other Assets and Other Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Other Assets And Other Liabilities [Abstract] | |
Other Assets and Other Liabilities | Other assets and other liabilities consisted of the following: March 31, March 31, 2016 2015 Other assets: Notes receivable from affiliates $ 1,177 $ 1,184 Used vehicles held for sale 319 188 Deferred charges 131 122 Income taxes receivable 31 174 Derivative assets 68 53 Other assets 622 561 Total other assets $ 2,348 $ 2,282 Other liabilities: Unearned insurance premiums and contract revenues $ 1,985 $ 1,825 Derivative liabilities 7 90 Accounts payable and accrued expenses 939 855 Deferred income 462 405 Other liabilities 192 180 Total other liabilities $ 3,585 $ 3,355 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Related Weighted Average Contractual Interest Rates | Debt and the related weighted average contractual interest rates are summarized as follows: Weighted average contractual interest rates March 31, March 31, March 31, March 31, 2016 2015 2016 2015 Commercial paper $ 26,608 $ 27,006 0.60 % 0.21 % Unsecured notes and loans payable 52,856 52,307 1.76 % 1.86 % Secured notes and loans payable 14,139 10,837 0.91 % 0.60 % Carrying value adjustment 122 81 Total debt $ 93,725 $ 90,231 1.30 % 1.22 % |
Schedule of Maturities of Long-term Debt | Scheduled maturities of our debt portfolio are summarized below. Actual repayment of secured debt will vary based on the repayment activity on the related pledged assets. Future Years ending March 31, debt maturities 2017 $ 47,521 2018 16,164 2019 9,745 2020 5,163 2021 6,608 Thereafter 8,524 Total debt $ 93,725 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract] | |
Schedule of Variable Interest Entities, Securitization Transactions Assets and Liabilities | The following tables show the assets and liabilities related to our VIE securitization transactions that were included in our financial statements: March 31, 2016 VIE Assets VIE Liabilities Gross Net Restricted Cash Securitized Assets Securitized Assets Other Assets Debt Other Liabilities Retail finance receivables $ 853 $ 14,343 $ 14,130 $ 6 $ 12,449 $ 4 Investments in operating leases 136 3,364 2,504 78 1,690 1 Total $ 989 $ 17,707 $ 16,634 $ 84 $ 14,139 $ 5 March 31, 2015 VIE Assets VIE Liabilities Gross Net Restricted Cash Securitized Assets Securitized Assets Other Assets Debt Other Liabilities Retail finance receivables $ 730 $ 11,682 $ 11,509 $ 4 $ 9,980 $ 3 Investments in operating leases 54 1,571 1,193 11 857 - Total $ 784 $ 13,253 $ 12,702 $ 15 $ 10,837 $ 3 |
Income Tax Provision (Tables)
Income Tax Provision (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes consisted of the following: Years ended March 31, 2016 2015 2014 Current Federal $ 73 $ (25 ) $ (24 ) State (33 ) (15 ) (3 ) Foreign 9 9 8 Total 49 (31 ) (19 ) Deferred Federal 420 644 460 State 111 117 54 Foreign - (1 ) 2 Total 531 760 516 Provision for income taxes $ 580 $ 729 $ 497 |
Reconciliation Between U.S. Federal Statutory Tax Rate and Effective Tax Rate | A reconciliation between the U.S. federal statutory tax rate and the effective tax rate is as follows: Years ended March 31, 2016 2015 2014 Provision for income taxes at U.S. federal statutory tax rate 35.0 % 35.0 % 35.0 % State and local taxes (net of federal tax benefit) 3.2 % 3.2 % 3.1 % Other, net 0.2 % (0.3 )% (1.4 )% Effective tax rate 38.4 % 37.9 % 36.7 % |
Deferred Tax Liabilities and Assets | Our net deferred income tax liability consisted of the following deferred tax liabilities and assets: March 31, 2016 2015 Liabilities: Lease transactions $ 8,579 $ 8,576 State taxes 642 570 Mark-to-market of investments in marketable securities and derivatives 316 292 Other 344 329 Deferred tax liabilities $ 9,881 $ 9,767 Assets: Provision for credit and residual value losses 431 328 Deferred costs and fees 292 258 Net operating loss and tax credit carryforwards 1,097 1,615 Other 67 67 Deferred tax assets 1,887 2,268 Valuation allowance (22 ) (20 ) Net deferred tax assets $ 1,865 $ 2,248 Net deferred income tax liability 1 $ 8,016 $ 7,519 1 |
Change in Unrecognized Tax Benefits | The change in unrecognized tax benefits are as follows: March 31, 2016 2015 2014 Balance at beginning of the year $ - $ 6 $ 7 Increases related to positions taken during the current year 1 - - Decreases related to positions taken during the prior years - - (1 ) Settlements - (6 ) - Balance at end of year $ 1 $ - $ 6 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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: March 31, March 31, 2016 2015 Commitments: Credit facilities commitments with dealers $ 1,168 $ 1,137 Minimum lease commitments 55 60 Total commitments 1,223 1,197 Guarantees of affiliate pollution control and solid waste disposal bonds 100 100 Total commitments and guarantees $ 1,323 $ 1,297 |
Future Minimum Lease Payments under Non-cancelable Operating Leases | At March 31, 2016, minimum future commitments under lease agreements to which we are a lessee, including those under the TMS lease, are as follows: Future Years ending March 31, lease 2017 $ 22 2018 17 2019 9 2020 4 2021 2 Thereafter 1 Total $ 55 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Included in Consolidated Statement of Income | The tables below summarize amounts included in our Consolidated Statement of Income and in our Consolidated Balance Sheet under various related party agreements or relationships: Years Ended March 31, 2016 2015 2014 Net financing revenues: Manufacturers’ subvention support and other revenues $ 1,315 $ 1,196 $ 994 Origination costs paid to affiliates $ (1 ) $ (1 ) $ - Credit support fees incurred $ (91 ) $ (88 ) $ (82 ) Interest and other expenses paid to affiliates $ (3 ) $ (2 ) $ (3 ) Insurance earned premiums and contract revenues: Affiliate insurance premiums and contract revenues $ 132 $ 129 $ 131 Investments and other income, net: Gain on sale of commercial finance business $ 197 $ - $ - Interest earned on notes receivable from affiliates $ 7 $ 4 $ 6 Other income from affiliates $ 1 $ - $ - Expenses: Shared services charges and other expenses $ 47 $ 63 $ 61 Employee benefits expense $ 33 $ 24 $ 38 Insurance losses and loss adjustment expenses $ 1 $ 1 $ - |
Related Party Transactions Included in Consolidated Balance Sheet | The tables below summarize amounts included in our Consolidated Statement of Income and in our Consolidated Balance Sheet under various related party agreements or relationships: March 31, March 31, 2016 2015 Assets: Investments in marketable securities Investments in affiliates’ commercial paper $ - $ 37 Finance receivables, net Accounts receivable from affiliates $ 119 $ 83 Direct finance lease receivables from affiliates $ - $ 6 Notes receivable under home loan programs $ 9 $ 11 Deferred retail origination costs paid to affiliates $ 1 $ 1 Deferred retail subvention income from affiliates $ (794 ) $ (802 ) Investments in operating leases, net Leases to affiliates $ 2 $ 7 Deferred lease origination costs paid to affiliates $ 1 $ 1 Deferred lease subvention income from affiliates $ (1,057 ) $ (950 ) Other assets Notes receivable from affiliates $ 1,177 $ 1,184 Other receivables from affiliates $ 7 $ 6 Subvention support receivable from affiliates $ 127 $ 126 Liabilities: Other liabilities Unearned affiliate insurance premiums and contract revenues $ 278 $ 252 Accounts payable to affiliates $ 209 $ 136 Notes payable to affiliates $ 20 $ 24 Shareholder’s Equity: Stock-based compensation $ 2 $ 2 |
Related Party Transactions Financing Support Provided by Parent and Affiliates | Financing Support Provided by Parent and Affiliates (amounts in millions): Amounts outstanding (USD) at Affiliate Financing available to TMCC March 31, 2016 March 31, 2015 Toyota Credit Canada Inc. CAD 1,500 $ - $ - Toyota Motor Finance (Netherlands) B.V. Euro 1,000 - - Toyota Financial Services Americas Corporation USD 200 12 24 Toyota Finance Australia Limited USD 1,000 - - Toyota Financial Services Securities USA Corporation USD 15 8 - Total $ 20 $ 24 |
Related Party Transactions Financing Support Provided to Parent and Affiliates | Financing Support Provided to Parent and Affiliates (amounts in millions): Amounts outstanding (USD) at Affiliate Financing made available by TMCC March 31, 2016 March 31, 2015 Toyota Financial Savings Bank USD 400 $ - $ 25 Toyota Credit Canada Inc. CAD 2,500 220 - Toyota Motor Finance (Netherlands) B.V. Euro 1,000 619 778 Toyota Financial Services Americas Corporation USD 200 - - Toyota Financial Services Mexico, S.A. de C.V. USD 500 - - Banco Toyota do Brasil USD 300 58 81 Toyota Finance Australia Limited USD 1,000 280 300 Total $ 1,177 $ 1,184 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information for our reportable operating segments is summarized as follows: Year ended March 31, 2016 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 9,403 $ - $ - $ 9,403 Insurance earned premiums and contract revenues - 719 - 719 Investment and other income, net 99 65 - 164 Gain on sale of commercial finance business 197 - - 197 Total gross revenues 9,699 784 - 10,483 Less: Depreciation on operating leases 5,914 - - 5,914 Interest expense 1,137 - - 1,137 Provision for credit losses 441 - - 441 Operating and administrative expenses 909 252 - 1,161 Insurance losses and loss adjustment expenses - 318 - 318 Provision for income taxes 501 79 - 580 Net income $ 797 $ 135 $ - $ 932 Total assets $ 111,627 $ 4,161 $ (1,065 ) $ 114,723 Note 16 – Segment Information (Continued) Year ended March 31, 2015 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 8,310 $ - $ - $ 8,310 Insurance earned premiums and contract revenues - 638 - 638 Investment and other income, net 89 105 - 194 Total gross revenues 8,399 743 - 9,142 Less: Depreciation on operating leases 4,857 - - 4,857 Interest expense 736 - - 736 Provision for credit losses 308 - - 308 Operating and administrative expenses 825 221 - 1,046 Insurance losses and loss adjustment expenses - 269 - 269 Provision for income taxes 635 94 - 729 Net income $ 1,038 $ 159 $ - $ 1,197 Total assets $ 106,653 $ 3,891 $ (919 ) $ 109,625 Year ended March 31, 2014 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 7,371 $ - $ 26 $ 7,397 Insurance earned premiums and contract revenues - 593 (26 ) 567 Investment and other income, net 98 37 - 135 Total gross revenues 7,469 630 - 8,099 Less: Depreciation on operating leases 4,012 - - 4,012 Interest expense 1,340 - - 1,340 Provision for credit losses 170 - - 170 Operating and administrative expenses 767 198 - 965 Insurance losses and loss adjustment expenses - 258 - 258 Provision for income taxes 437 60 - 497 Net income $ 743 $ 114 $ - $ 857 Total assets $ 99,737 $ 3,728 $ (725 ) $ 102,740 |
Selected Quarterly Financial 41
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | First Second Third Fourth Quarter Quarter Quarter Quarter Year ended March 31, 2016: Total financing revenues $ 2,255 $ 2,353 $ 2,376 $ 2,419 Depreciation on operating leases 1,360 1,446 1,503 1,605 Interest expense 508 203 277 149 Net financing revenues 387 704 596 665 Other income 212 192 248 231 Gain on sale of commercial finance business - - 197 - Provision for credit losses 45 105 128 163 Expenses 349 365 361 404 Income before income taxes 205 426 552 329 Provision for income taxes 70 161 210 139 Net income $ 135 $ 265 $ 342 $ 190 Year ended March 31, 2015: Total financing revenues $ 1,960 $ 2,057 $ 2,112 $ 2,181 Depreciation on operating leases 1,100 1,196 1,248 1,313 Interest expense 130 215 161 230 Net financing revenues 730 646 703 638 Other income 188 220 221 203 Provision for credit losses 38 79 103 88 Expenses 303 320 329 363 Income before income taxes 577 467 492 390 Provision for income taxes 213 176 185 155 Net income $ 364 $ 291 $ 307 $ 235 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | Oct. 02, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2016 | Mar. 31, 2015 |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cash proceeds from sale of business | $ 2,317,000,000 | ||||||
Gain on sale of commercial finance business | $ 0 | $ 197,000,000 | $ 0 | $ 0 | 197,000,000 | ||
Restricted cash equivalents | 0 | 0 | $ 0 | ||||
Embedded derivatives | $ 0 | $ 0 | $ 0 | ||||
Minimum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Insurance Policy Term | 3 months | ||||||
Maximum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Insurance Policy Term | 120 months | ||||||
Sale of Commercial Finance Business [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cash proceeds from sale of business | $ 2,300,000,000 | ||||||
Gain on sale of commercial finance business | $ 197,000,000 | ||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Finance Operations [Member] | California [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Percentage | 22.00% | ||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Finance Operations [Member] | Texas [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Percentage | 11.00% | ||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Finance Operations [Member] | New York [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Percentage | 8.00% | ||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Finance Operations [Member] | New Jersey [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Percentage | 5.00% | ||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Insurance Operations [Member] | California [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Percentage | 26.00% | ||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Insurance Operations [Member] | New York [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Percentage | 7.00% | ||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Insurance Operations [Member] | New Jersey [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Percentage | 5.00% |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | $ 4,024 | |
Available-for-sale securities total | 6,540 | $ 7,131 |
Derivative assets | 68 | 53 |
Counterparty netting and collateral | (320) | (145) |
Derivative liabilities | (7) | (90) |
Counterparty netting and collateral | (718) | (1,694) |
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 instruments | 2,835 | 4,359 |
Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 11 | 12 |
Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 487 | 145 |
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 instruments | 59 | 59 |
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 instruments | 3 | 4 |
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 instruments | 42 | 44 |
Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 37 | 39 |
Fixed income short-term floating NAV fund II [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 178 | 148 |
Fixed income U.S. government sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 358 | 335 |
Fixed income municipal sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 19 | 20 |
Investment Grade Corporate Sector Fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 246 | 268 |
Fixed income high-yield sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 66 | 55 |
Fixed income real return sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 212 | 232 |
Fixed income mortgage sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 302 | 399 |
Fixed income asset-backed securities sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 124 | 72 |
Fixed income emerging market sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 102 | 71 |
Fixed income international sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 140 | 160 |
Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 380 | |
Fixed income short-term sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 37 | |
Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,624 | 2,214 |
Available-for-sale securities total | 6,540 | 7,131 |
Derivative assets | 68 | 53 |
Counterparty netting and collateral | (905) | (635) |
Assets at fair value | 9,232 | 9,398 |
Counterparty netting and collateral | 1,303 | 2,184 |
Liabilities at fair value | (7) | (90) |
Net assets at fair value | 9,225 | 9,308 |
Recurring [Member] | Money market instruments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,569 | 1,069 |
Recurring [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 555 | 40 |
Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 500 | 1,105 |
Available-for-sale securities, Debt instruments | 500 | 175 |
Recurring [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 50 | 37 |
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 instruments | 2,835 | 4,359 |
Recurring [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 11 | 12 |
Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 487 | 145 |
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 instruments | 59 | 59 |
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 instruments | 3 | 4 |
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 instruments | 42 | 44 |
Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 37 | 39 |
Recurring [Member] | Fixed income short-term floating NAV fund II [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 178 | 148 |
Recurring [Member] | Fixed income U.S. government sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 358 | 335 |
Recurring [Member] | Fixed income municipal sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 19 | 20 |
Recurring [Member] | Investment Grade Corporate Sector Fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 246 | 268 |
Recurring [Member] | Fixed income high-yield sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 66 | 55 |
Recurring [Member] | Fixed income real return sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 212 | 232 |
Recurring [Member] | Fixed income mortgage sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 302 | 399 |
Recurring [Member] | Fixed income asset-backed securities sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 124 | 72 |
Recurring [Member] | Fixed income emerging market sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 102 | 71 |
Recurring [Member] | Fixed income international sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 140 | 160 |
Recurring [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 380 | |
Recurring [Member] | Equity mutual fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 389 | 460 |
Recurring [Member] | Fixed income short-term sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 37 | |
Recurring [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 329 | 217 |
Derivative liabilities | (835) | (1,888) |
Recurring [Member] | Interest rate swap [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 640 | 471 |
Derivative liabilities | (475) | (386) |
Recurring [Member] | Interest Rate Floor [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 4 | |
Recurring [Member] | Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 810 | 289 |
Available-for-sale securities total | 4,074 | 4,712 |
Derivative assets | 0 | 0 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 4,884 | 5,001 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | 0 | 0 |
Net assets at fair value | 4,884 | 5,001 |
Recurring [Member] | Level 1 [Member] | Money market instruments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 360 | 249 |
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] | ||
Cash equivalents | 450 | 40 |
Recurring [Member] | Level 1 [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available-for-sale securities, Debt instruments | 300 | 0 |
Recurring [Member] | Level 1 [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 37 |
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 instruments | 2,777 | 4,215 |
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 instruments | 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 instruments | 228 | 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 instruments | 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 instruments | 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 instruments | 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 instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income short-term floating NAV fund II [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income U.S. government sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income municipal sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Investment Grade Corporate Sector Fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income high-yield sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income real return sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income mortgage sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income asset-backed securities sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income emerging market sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income international sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 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] | ||
Available-for-sale securities, Equity instruments | 380 | |
Recurring [Member] | Level 1 [Member] | Equity mutual fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 389 | 460 |
Recurring [Member] | Level 1 [Member] | Fixed income short-term sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 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 swap [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 Floor [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Recurring [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,814 | 1,925 |
Available-for-sale securities total | 2,375 | 2,316 |
Derivative assets | 934 | 680 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 5,123 | 4,921 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | (1,296) | (2,274) |
Net assets at fair value | 3,827 | 2,647 |
Recurring [Member] | Level 2 [Member] | Money market instruments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,209 | 820 |
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] | ||
Cash equivalents | 105 | 0 |
Recurring [Member] | Level 2 [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 500 | 1,105 |
Available-for-sale securities, Debt instruments | 200 | 175 |
Recurring [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 50 | 0 |
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 instruments | 56 | 142 |
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 instruments | 11 | 12 |
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 instruments | 252 | 131 |
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 instruments | 59 | 59 |
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 instruments | 0 | 0 |
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 instruments | 0 | 0 |
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 instruments | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Fixed income short-term floating NAV fund II [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 178 | 148 |
Recurring [Member] | Level 2 [Member] | Fixed income U.S. government sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 358 | 335 |
Recurring [Member] | Level 2 [Member] | Fixed income municipal sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 19 | 20 |
Recurring [Member] | Level 2 [Member] | Investment Grade Corporate Sector Fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 246 | 268 |
Recurring [Member] | Level 2 [Member] | Fixed income high-yield sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 66 | 55 |
Recurring [Member] | Level 2 [Member] | Fixed income real return sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 212 | 232 |
Recurring [Member] | Level 2 [Member] | Fixed income mortgage sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 302 | 399 |
Recurring [Member] | Level 2 [Member] | Fixed income asset-backed securities sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 124 | 72 |
Recurring [Member] | Level 2 [Member] | Fixed income emerging market sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 102 | 71 |
Recurring [Member] | Level 2 [Member] | Fixed income international sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 140 | 160 |
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] | ||
Available-for-sale securities, Equity instruments | 0 | |
Recurring [Member] | Level 2 [Member] | Equity mutual fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Fixed income short-term sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 37 | |
Recurring [Member] | Level 2 [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 329 | 210 |
Derivative liabilities | (821) | (1,888) |
Recurring [Member] | Level 2 [Member] | Interest rate swap [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 601 | 470 |
Derivative liabilities | (475) | (386) |
Recurring [Member] | Level 2 [Member] | Interest Rate Floor [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 4 | |
Recurring [Member] | Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available-for-sale securities total | 91 | 103 |
Derivative assets | 39 | 8 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 130 | 111 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | (14) | 0 |
Net assets at fair value | 116 | 111 |
Recurring [Member] | Level 3 [Member] | Money market instruments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
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] | ||
Cash equivalents | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 0 |
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 instruments | 2 | 2 |
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 instruments | 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 instruments | 7 | 14 |
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 instruments | 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 instruments | 3 | 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 instruments | 42 | 44 |
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 instruments | 37 | 39 |
Recurring [Member] | Level 3 [Member] | Fixed income short-term floating NAV fund II [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Fixed income U.S. government sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Fixed income municipal sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Investment Grade Corporate Sector Fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Fixed income high-yield sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Fixed income real return sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Fixed income mortgage sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Fixed income asset-backed securities sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Fixed income emerging market sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Fixed income international sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
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] | ||
Available-for-sale securities, Equity instruments | 0 | |
Recurring [Member] | Level 3 [Member] | Equity mutual fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Fixed income short-term sector fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 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 | 7 |
Derivative liabilities | (14) | 0 |
Recurring [Member] | Level 3 [Member] | Interest rate swap [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 39 | 1 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Interest Rate Floor [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Recurring [Member] | Counterparty Netting & Collateral [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | (905) | (635) |
Counterparty netting and collateral | (905) | (635) |
Assets at fair value | (905) | (635) |
Counterparty netting and collateral | 1,303 | 2,184 |
Liabilities at fair value | 1,303 | 2,184 |
Net assets at fair value | $ 398 | $ 1,549 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative asset counterparty credit valuation adjustment | $ 2 | $ 1 |
Fair value, amount transferred from level 2 to level 1 | 85 | |
Fair value, amount transferred from level 1 to level 2 | 47 | |
Fair value, amount transferred from level 3 to level 2 | 4 | |
Finance receivables from related party | $ 128 | 94 |
Receivables from direct finance leases | 308 | |
Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative liability non-performance credit valuation adjustment | $ 1 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | $ 111 | $ 162 |
Total gains (losses) included in earnings | 21 | (54) |
Total gains (losses) included in other comprehensive income | (4) | 2 |
Purchases | 7 | 37 |
Issuances | 0 | 0 |
Sales | (3) | (15) |
Settlements | (12) | (23) |
Transfers in to Level 3 | 0 | 2 |
Transfers out of Level 3 | (4) | 0 |
Fair value | 116 | 111 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 21 | (54) |
Available-for-sale securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | 103 | 89 |
Total gains (losses) included in earnings | 0 | 0 |
Total gains (losses) included in other comprehensive income | (4) | 2 |
Purchases | 7 | 37 |
Issuances | 0 | 0 |
Sales | (3) | (15) |
Settlements | (8) | (12) |
Transfers in to Level 3 | 0 | 2 |
Transfers out of Level 3 | (4) | 0 |
Fair value | $ 91 | $ 103 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | ||
Available-for-sale securities [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | $ 2 | $ 2 |
Total gains (losses) included in earnings | 0 | 0 |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | $ 2 | $ 2 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | ||
Available-for-sale securities [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | $ 14 | $ 12 |
Total gains (losses) included in earnings | 0 | 0 |
Total gains (losses) included in other comprehensive income | (1) | 0 |
Purchases | 0 | 3 |
Issuances | 0 | 0 |
Sales | (2) | (3) |
Settlements | 0 | 0 |
Transfers in to Level 3 | 0 | 2 |
Transfers out of Level 3 | (4) | 0 |
Fair value | $ 7 | $ 14 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | ||
Available-for-sale securities [Member] | Mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | $ 48 | $ 48 |
Total gains (losses) included in earnings | 0 | 0 |
Total gains (losses) included in other comprehensive income | (2) | 2 |
Purchases | 2 | 12 |
Issuances | 0 | 0 |
Sales | 0 | (7) |
Settlements | (3) | (7) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | $ 45 | $ 48 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | ||
Available-for-sale securities [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | $ 39 | $ 27 |
Total gains (losses) included in earnings | 0 | 0 |
Total gains (losses) included in other comprehensive income | (1) | 0 |
Purchases | 5 | 22 |
Issuances | 0 | 0 |
Sales | (1) | (5) |
Settlements | (5) | (5) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | $ 37 | $ 39 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | ||
Derivative [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | $ 8 | $ 73 |
Total gains (losses) included in earnings | 21 | (54) |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | (4) | (11) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | 25 | 8 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 21 | (54) |
Derivative [Member] | Interest rate swap [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | 1 | 3 |
Total gains (losses) included in earnings | 34 | 0 |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 4 | (2) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | 39 | 1 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 34 | 0 |
Derivative [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | 7 | 70 |
Total gains (losses) included in earnings | (13) | (54) |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | (8) | (9) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | (14) | 7 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | $ (13) | $ (54) |
Fair Value Measurements - Ass46
Fair Value Measurements - Assets and Liabilities Not Carried at Fair Value on Recurring Basis in Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Carrying value [Member] | ||
Financial liabilities | ||
Commercial paper | $ 26,608 | $ 27,006 |
Unsecured notes and loans payable | 52,978 | 52,388 |
Secured notes and loans payable | 14,139 | 10,837 |
Fair value [Member] | ||
Financial liabilities | ||
Commercial paper | 26,608 | 27,006 |
Unsecured notes and loans payable | 54,300 | 53,808 |
Secured notes and loans payable | 14,125 | 10,832 |
Fair value [Member] | Level 1 [Member] | ||
Financial liabilities | ||
Commercial paper | 0 | 0 |
Unsecured notes and loans payable | 0 | 0 |
Secured notes and loans payable | 0 | 0 |
Fair value [Member] | Level 2 [Member] | ||
Financial liabilities | ||
Commercial paper | 26,608 | 27,006 |
Unsecured notes and loans payable | 52,913 | 53,174 |
Secured notes and loans payable | 0 | 0 |
Fair value [Member] | Level 3 [Member] | ||
Financial liabilities | ||
Commercial paper | 0 | 0 |
Unsecured notes and loans payable | 1,387 | 634 |
Secured notes and loans payable | 14,125 | 10,832 |
Retail Loan [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 49,865 | 49,734 |
Retail Loan [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 49,551 | 49,887 |
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 | 49,551 | 49,887 |
Commercial Finance [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 217 | |
Commercial Finance [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 223 | |
Commercial Finance [Member] | Fair value [Member] | Level 1 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | |
Commercial Finance [Member] | Fair value [Member] | Level 2 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | |
Commercial Finance [Member] | Fair value [Member] | Level 3 [Member] | ||
Financial assets | ||
Finance receivables, net | 223 | |
Wholesale [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 9,160 | 9,123 |
Wholesale [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 9,207 | 9,176 |
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 | 9,207 | 9,176 |
Real estate [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 4,590 | 4,602 |
Real estate [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 4,277 | 4,564 |
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 | 4,277 | 4,564 |
Working capital [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 1,888 | 1,815 |
Working capital [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 1,894 | 1,804 |
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 | $ 1,894 | $ 1,804 |
Investments in Marketable Sec47
Investments in Marketable Securities - Summary of Investments in Marketable Securities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 6,273 | $ 6,775 |
Available-for-sale securities, Debt instruments, Amortized cost | 4,014 | |
Available-for-sale securities, Debt instruments, Fair value | 4,024 | |
Unrealized gains | 285 | 366 |
Unrealized losses | (18) | (10) |
Fair value | 6,540 | 7,131 |
U.S. government and agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 2,833 | 4,357 |
Unrealized gains | 3 | 3 |
Unrealized losses | (1) | (1) |
Available-for-sale securities, Debt instruments, Fair value | 2,835 | 4,359 |
Municipal debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 10 | 10 |
Unrealized gains | 1 | 2 |
Unrealized losses | 0 | 0 |
Available-for-sale securities, Debt instruments, Fair value | 11 | 12 |
Certificates of deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 500 | 175 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Available-for-sale securities, Debt instruments, Fair value | 500 | 175 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 50 | 37 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Available-for-sale securities, Debt instruments, Fair value | 50 | 37 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 482 | 138 |
Unrealized gains | 7 | 7 |
Unrealized losses | (2) | 0 |
Available-for-sale securities, Debt instruments, Fair value | 487 | 145 |
U.S. government agency mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 57 | 57 |
Unrealized gains | 2 | 2 |
Unrealized losses | 0 | 0 |
Available-for-sale securities, Debt instruments, Fair value | 59 | 59 |
Non-agency residential mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 2 | 3 |
Unrealized gains | 1 | 1 |
Unrealized losses | 0 | 0 |
Available-for-sale securities, Debt instruments, Fair value | 3 | 4 |
Non-agency commercial mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 42 | 43 |
Unrealized gains | 1 | 1 |
Unrealized losses | (1) | 0 |
Available-for-sale securities, Debt instruments, Fair value | 42 | 44 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 38 | 39 |
Unrealized gains | 0 | 0 |
Unrealized losses | (1) | 0 |
Available-for-sale securities, Debt instruments, Fair value | 37 | 39 |
Fixed income short-term floating NAV fund II [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 178 | 148 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Equity instrument, Fair value | 178 | 148 |
Fixed income short-term sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 35 | |
Unrealized gains | 2 | |
Unrealized losses | 0 | |
Equity instrument, Fair value | 37 | |
Fixed income U.S. government sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 353 | 311 |
Unrealized gains | 6 | 24 |
Unrealized losses | (1) | 0 |
Equity instrument, Fair value | 358 | 335 |
Fixed income municipal sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 19 | 19 |
Unrealized gains | 0 | 1 |
Unrealized losses | 0 | 0 |
Equity instrument, Fair value | 19 | 20 |
Investment Grade Corporate Sector Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 243 | 256 |
Unrealized gains | 8 | 15 |
Unrealized losses | (5) | (3) |
Equity instrument, Fair value | 246 | 268 |
Fixed income high-yield sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 67 | 50 |
Unrealized gains | 0 | 6 |
Unrealized losses | (1) | (1) |
Equity instrument, Fair value | 66 | 55 |
Fixed income real return sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 201 | 235 |
Unrealized gains | 11 | 0 |
Unrealized losses | 0 | (3) |
Equity instrument, Fair value | 212 | 232 |
Fixed income mortgage sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 297 | 390 |
Unrealized gains | 5 | 9 |
Unrealized losses | 0 | 0 |
Equity instrument, Fair value | 302 | 399 |
Fixed income asset-backed securities sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 117 | 63 |
Unrealized gains | 8 | 9 |
Unrealized losses | (1) | 0 |
Equity instrument, Fair value | 124 | 72 |
Fixed income emerging market sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 101 | 73 |
Unrealized gains | 1 | 0 |
Unrealized losses | 0 | (2) |
Equity instrument, Fair value | 102 | 71 |
Fixed income international sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 145 | 146 |
Unrealized gains | 0 | 14 |
Unrealized losses | (5) | 0 |
Equity instrument, Fair value | 140 | 160 |
Fixed income total return bond funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 376 | |
Unrealized gains | 4 | |
Unrealized losses | 0 | |
Equity instrument, Fair value | 380 | |
Equity mutual fund - S&P 500 index [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 162 | 190 |
Unrealized gains | 227 | 270 |
Unrealized losses | 0 | 0 |
Equity instrument, Fair value | $ 389 | $ 460 |
Investments in Marketable Sec48
Investments in Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Marketable Securities [Abstract] | |||
Private placement share redemption percentage | 1.00% | ||
Private placement share redemption amount | $ 250 | ||
Share redemption period | 90 days | ||
OTTI losses recognized in income | |||
Impairment write-downs | $ 50,000 | $ 0 | $ 55,000 |
Investments in Marketable Sec49
Investments in Marketable Securities - Schedule of Realized Gains and Losses on Sales from AFS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Available-for-sale securities: | |||
Realized gains on sales | $ 59 | $ 71 | $ 59 |
Realized losses on sales | (3) | (1) | (4) |
Other-than-temporary impairment | $ (50) | $ 0 | $ (55) |
Investments in Marketable Sec50
Investments in Marketable Securities - Summary of Contractual Maturities of Available-for-Sale Securities (Details) $ in Millions | Mar. 31, 2016USD ($) | |
Marketable Securities [Abstract] | ||
Due within 1 Year, Amount | $ 2,665 | |
Due after 1 Year through 5 Years, Amount | 1,047 | |
Due after 5 Years through 10 Years, Amount | 72 | |
Due after 10 Years, Amount | 99 | |
Mortgage-backed and asset-backed securities, fair value | 141 | [1] |
Total, fair value | 4,024 | |
Due within 1 Year, Amortized Cost | 2,664 | |
Due after 1 Year through 5 Years, Amortized Cost | 1,044 | |
Due after 5 Years through 10 Years, Amortized Cost | 71 | |
Due after 10 Years, Amortized Cost | 96 | |
Mortgage-backed and asset-backed securities, amortized cost | 139 | [1] |
Available-for-sale securities, Debt instruments, Amortized cost | $ 4,014 | |
[1] | Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities do not have a single maturity date. |
Finance Receivables, Net (Net F
Finance Receivables, Net (Net Financing Receivables) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | $ 66,262 | $ 66,567 | |
Finance receivables, net | 65,636 | 65,893 | |
Finance Receivables, Net [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 66,262 | 66,567 | |
Deferred origination (fees) and costs, net | 663 | 646 | |
Deferred income | (868) | (911) | |
Allowance for credit losses | (421) | (409) | $ (386) |
Finance receivables, net | 65,636 | 65,893 | |
Finance Receivables, Net [Member] | Retail receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 36,020 | 39,141 | |
Finance Receivables, Net [Member] | Securitized retail receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 14,343 | 11,682 | |
Finance Receivables, Net [Member] | Dealer financing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 15,899 | 15,744 | |
Allowance for credit losses | (132) | (108) | |
Finance Receivables, Net [Member] | Retail and securitized retail receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit losses | $ (289) | $ (301) |
Finance Receivables, Net - Addi
Finance Receivables, Net - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Oct. 01, 2015 | Mar. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables, net | $ 65,636 | $ 65,893 | |
Receivables from direct finance leases | 308 | ||
Dealer products portfolio segment accounts on nonaccrual status | $ 299 | $ 172 | |
Sale of Commercial Finance Business [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables, net | $ 1,100 | ||
Sale of Commercial Finance Business [Member] | Commercial Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables, net | 546 | ||
Sale of Commercial Finance Business [Member] | Wholesale [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables, net | 490 | ||
Sale of Commercial Finance Business [Member] | Real estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables, net | 53 | ||
Sale of Commercial Finance Business [Member] | Working capital [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables, net | $ 16 |
Finance Receivables, Net (Contr
Finance Receivables, Net (Contractual Maturities on Retail Receivables and Dealer Financing) (Details) $ in Millions | Mar. 31, 2016USD ($) |
Retail receivables [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2,017 | $ 14,337 |
2,018 | 12,902 |
2,019 | 10,399 |
2,020 | 7,338 |
2,021 | 4,006 |
Thereafter | 1,381 |
Total | 50,363 |
Dealer financing [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2,017 | 11,773 |
2,018 | 1,608 |
2,019 | 906 |
2,020 | 532 |
2,021 | 501 |
Thereafter | 579 |
Total | $ 15,899 |
Finance Receivables, Net (Finan
Finance Receivables, Net (Finance Receivables Credit Quality Indicators) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Current | $ 65,489 | $ 65,939 |
Financing receivables, past due | 773 | 628 |
Total Finance Receivables | 66,262 | 66,567 |
Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 49,590 | 49,684 |
Financing receivables, past due | 773 | 618 |
Total Finance Receivables | 50,363 | 50,302 |
Commercial Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 0 | 511 |
Financing receivables, past due | 10 | |
Total Finance Receivables | 0 | 521 |
Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | $ 9,262 | $ 9,226 |
Financing receivables, past due | ||
Total Finance Receivables | $ 9,262 | $ 9,226 |
Wholesale [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 8,099 | 7,993 |
Wholesale [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 1,041 | 1,137 |
Wholesale [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 113 | 60 |
Wholesale [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 9 | 36 |
Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | $ 4,704 | $ 4,665 |
Financing receivables, past due | ||
Total Finance Receivables | $ 4,704 | $ 4,665 |
Real estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 3,822 | 3,782 |
Real estate [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 763 | 842 |
Real estate [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 109 | 37 |
Real estate [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 10 | 4 |
Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | $ 1,933 | $ 1,853 |
Financing receivables, past due | ||
Total Finance Receivables | $ 1,933 | $ 1,853 |
Working capital [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 1,686 | 1,643 |
Working capital [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 229 | 176 |
Working capital [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 17 | 32 |
Working capital [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 1 | 2 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 584 | 475 |
30-59 Days Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | $ 584 | 467 |
30-59 Days Past Due [Member] | Commercial Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | $ 8 | |
30-59 Days Past Due [Member] | Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | ||
30-59 Days Past Due [Member] | Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | ||
30-59 Days Past Due [Member] | Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | ||
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | $ 129 | $ 102 |
60-89 Days Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 129 | 100 |
60-89 Days Past Due [Member] | Commercial Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | $ 0 | $ 2 |
60-89 Days Past Due [Member] | Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | ||
60-89 Days Past Due [Member] | Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | ||
60-89 Days Past Due [Member] | Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | ||
90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | $ 60 | $ 51 |
90 Days or Greater Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 60 | 51 |
90 Days or Greater Past Due [Member] | Commercial Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | $ 0 | $ 0 |
90 Days or Greater Past Due [Member] | Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | ||
90 Days or Greater Past Due [Member] | Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | ||
90 Days or Greater Past Due [Member] | Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due |
Finance Receivables, Net (Summa
Finance Receivables, Net (Summary of Impaired Loans by Class of Finance Receivable) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Impaired Finance Receivables | ||
Impaired Finance Receivables Individually Evaluated with Related Allowance | $ 254 | $ 162 |
Impaired Finance Receivables Individually Evaluated with No Related Allowance | 286 | 198 |
Impaired Finance Receivables Aggregated And Evaluated For Impairment | 226 | 264 |
Impaired Finance Receivables | 766 | 624 |
Unpaid Principal Balance | ||
Unpaid Principal Balance Individually Evaluated with Related Allowance | 254 | 162 |
Unpaid Principal Balance Individually Evaluated with No Related Allowance | 286 | 198 |
Unpaid Principal Balance Aggregated And Evaluated For Impairment | 223 | 261 |
Unpaid Principal Balance | 763 | 621 |
Individually Evaluated Allowance | 54 | 55 |
Average Impaired Finance Receivables | ||
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance | 214 | 80 |
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance | 228 | 160 |
Average Impaired Finance Receivables Account Balances Aggregated And Evaluated For Impairment | 246 | 295 |
Average Impaired Finance Receivables | 688 | 535 |
Interest Income Recognized | ||
Interest Income Recognized Individually Evaluated with Related Allowance | 5 | 2 |
Interest Income Recognized Individually Evaluated with No Related Allowance | 7 | 4 |
Interest Income Recognized Aggregated And Evaluated For Impairment | 18 | 22 |
Interest Income Recognized | 30 | 28 |
Wholesale [Member] | ||
Impaired Finance Receivables | ||
Impaired Finance Receivables Individually Evaluated with Related Allowance | 98 | 76 |
Impaired Finance Receivables Individually Evaluated with No Related Allowance | 185 | 105 |
Impaired Finance Receivables | 283 | 181 |
Unpaid Principal Balance | ||
Unpaid Principal Balance Individually Evaluated with Related Allowance | 98 | 76 |
Unpaid Principal Balance Individually Evaluated with No Related Allowance | 185 | 105 |
Unpaid Principal Balance | 283 | 181 |
Individually Evaluated Allowance | 9 | 14 |
Average Impaired Finance Receivables | ||
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance | 86 | 29 |
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance | 132 | 66 |
Average Impaired Finance Receivables | 218 | 95 |
Interest Income Recognized | ||
Interest Income Recognized Individually Evaluated with Related Allowance | 1 | 0 |
Interest Income Recognized Individually Evaluated with No Related Allowance | 3 | 1 |
Interest Income Recognized | 4 | 1 |
Real estate [Member] | ||
Impaired Finance Receivables | ||
Impaired Finance Receivables Individually Evaluated with Related Allowance | 119 | 52 |
Impaired Finance Receivables Individually Evaluated with No Related Allowance | 98 | 91 |
Impaired Finance Receivables | 217 | 143 |
Unpaid Principal Balance | ||
Unpaid Principal Balance Individually Evaluated with Related Allowance | 119 | 52 |
Unpaid Principal Balance Individually Evaluated with No Related Allowance | 98 | 91 |
Unpaid Principal Balance | 217 | 143 |
Individually Evaluated Allowance | 15 | 10 |
Average Impaired Finance Receivables | ||
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance | 93 | 26 |
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance | 92 | 91 |
Average Impaired Finance Receivables | 185 | 117 |
Interest Income Recognized | ||
Interest Income Recognized Individually Evaluated with Related Allowance | 2 | 1 |
Interest Income Recognized Individually Evaluated with No Related Allowance | 4 | 3 |
Interest Income Recognized | 6 | 4 |
Working capital [Member] | ||
Impaired Finance Receivables | ||
Impaired Finance Receivables Individually Evaluated with Related Allowance | 37 | 34 |
Impaired Finance Receivables Individually Evaluated with No Related Allowance | 3 | 2 |
Impaired Finance Receivables | 40 | 36 |
Unpaid Principal Balance | ||
Unpaid Principal Balance Individually Evaluated with Related Allowance | 37 | 34 |
Unpaid Principal Balance Individually Evaluated with No Related Allowance | 3 | 2 |
Unpaid Principal Balance | 40 | 36 |
Individually Evaluated Allowance | 30 | 31 |
Average Impaired Finance Receivables | ||
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance | 35 | 25 |
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance | 4 | 3 |
Average Impaired Finance Receivables | 39 | 28 |
Interest Income Recognized | ||
Interest Income Recognized Individually Evaluated with Related Allowance | 2 | 1 |
Interest Income Recognized Individually Evaluated with No Related Allowance | 0 | 0 |
Interest Income Recognized | 2 | 1 |
Retail Loan [Member] | ||
Impaired Finance Receivables | ||
Impaired Finance Receivables Aggregated And Evaluated For Impairment | 226 | 264 |
Impaired Finance Receivables | 226 | 264 |
Unpaid Principal Balance | ||
Unpaid Principal Balance Aggregated And Evaluated For Impairment | 223 | 261 |
Unpaid Principal Balance | 223 | 261 |
Average Impaired Finance Receivables | ||
Average Impaired Finance Receivables Account Balances Aggregated And Evaluated For Impairment | 246 | 294 |
Average Impaired Finance Receivables | 246 | 294 |
Interest Income Recognized | ||
Interest Income Recognized Aggregated And Evaluated For Impairment | 18 | 22 |
Interest Income Recognized | 18 | 22 |
Commercial Finance [Member] | ||
Impaired Finance Receivables | ||
Impaired Finance Receivables Aggregated And Evaluated For Impairment | 0 | 0 |
Impaired Finance Receivables | 0 | 0 |
Unpaid Principal Balance | ||
Unpaid Principal Balance Aggregated And Evaluated For Impairment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Average Impaired Finance Receivables | ||
Average Impaired Finance Receivables Account Balances Aggregated And Evaluated For Impairment | 0 | 1 |
Average Impaired Finance Receivables | 0 | 1 |
Interest Income Recognized | ||
Interest Income Recognized Aggregated And Evaluated For Impairment | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 |
Investments in Operating Leas56
Investments in Operating Leases, Net (Investments in Operating Leases, Net) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases, net | $ 36,488 | $ 31,128 |
Investments in operating leases [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | 42,220 | 37,555 |
Securitized investments in operating leases [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | 3,364 | 1,571 |
Investments In Operating Leases, Net [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | 45,584 | 39,126 |
Deferred origination (fees) and costs, net | (190) | (169) |
Deferred income | (1,080) | (968) |
Accumulated depreciation | (7,712) | (6,785) |
Allowance for credit losses | $ (114) | $ (76) |
Investments in Operating Leas57
Investments in Operating Leases, Net - Additional Information (Details) - USD ($) | Oct. 02, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Property Subject To Or Available For Operating Lease [Line Items] | ||||
Sale of investments in operating leases | $ 8,283,000,000 | $ 6,444,000,000 | $ 6,636,000,000 | |
Investments in operating leases [Member] | ||||
Property Subject To Or Available For Operating Lease [Line Items] | ||||
Impairment in investments in operating leases portfolio | $ 0 | $ 0 | ||
Sale of Commercial Finance Business [Member] | ||||
Property Subject To Or Available For Operating Lease [Line Items] | ||||
Sale of investments in operating leases | $ 1,000,000,000 |
Investments in Operating Leas58
Investments in Operating Leases, Net - Future Minimum Rentals on Investments in Operating Leases (Details) $ in Millions | Mar. 31, 2016USD ($) |
Future minimum rentals on operating leases | |
2,017 | $ 5,523 |
2,018 | 3,764 |
2,019 | 1,555 |
2,020 | 189 |
2,021 | 17 |
Total | $ 11,048 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance for Credit Losses on Finance Receivables and Investments in Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||
Allowance for Credit Losses on Finance Receivables and Investments in Operating Leases | ||||||||||||
Allowance for credit losses at beginning of period | $ 485 | $ 454 | $ 485 | $ 454 | $ 527 | |||||||
Provision for credit losses | $ 163 | $ 128 | $ 105 | $ 45 | $ 88 | $ 103 | $ 79 | $ 38 | 441 | 308 | 170 | |
Transferred to held-for-sale | [1] | (7) | 0 | 0 | ||||||||
Charge-offs, net of recoveries | (384) | (277) | (243) | |||||||||
Allowance for credit losses at end of period | $ 535 | $ 485 | $ 535 | $ 485 | $ 454 | |||||||
[1] | Amount relates to the commercial finance business which was sold on October 1, 2015. |
Allowance for Credit Losses -60
Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Recoveries from credit loss charge-offs | $ 72 | $ 86 | $ 85 |
Impaired finance receivables aggregated and collectively evaluated for impairment | 226 | 264 | |
Finance Receivables, Net [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Ending balance: Collectively evaluated for impairment | 65,722 | 66,207 | |
Finance Receivables, Net [Member] | Retail and Commercial Loan [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Impaired finance receivables aggregated and collectively evaluated for impairment | 226 | 264 | |
Finance Receivables, Net [Member] | Dealer Products [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Ending balance: Collectively evaluated for impairment | 15,359 | 15,384 | |
Finance Receivables, Net [Member] | TMS [Member] | Financial Guarantee [Member] | Dealer Products [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Ending balance: Collectively evaluated for impairment | 982 | 917 | |
Finance Receivables, Net [Member] | Private Toyota Distributors [Member] | Financial Guarantee [Member] | Dealer Products [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Ending balance: Collectively evaluated for impairment | $ 136 | $ 122 |
Allowance for Credit Losses -61
Allowance for Credit Losses - Allowance for Credit Losses and Recorded Investment in Finance Receivables by Portfolio Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||
Allowance for Credit Losses for Finance Receivables: | ||||||||||||
Provisions | $ 163 | $ 128 | $ 105 | $ 45 | $ 88 | $ 103 | $ 79 | $ 38 | $ 441 | $ 308 | $ 170 | |
Transferred to held-for-sale | [1] | (7) | 0 | 0 | ||||||||
Finance Receivables: | ||||||||||||
Total Finance Receivables | 66,262 | 66,567 | 66,262 | 66,567 | ||||||||
Retail Loan [Member] | ||||||||||||
Finance Receivables: | ||||||||||||
Total Finance Receivables | 50,363 | 50,302 | 50,363 | 50,302 | ||||||||
Finance Receivables, Net [Member] | ||||||||||||
Allowance for Credit Losses for Finance Receivables: | ||||||||||||
Allowance for credit losses at beginning of period | 409 | 386 | 409 | 386 | ||||||||
Charge-offs | (329) | (276) | ||||||||||
Recoveries | 49 | 63 | ||||||||||
Provisions | 298 | 236 | ||||||||||
Transferred to held-for-sale | (6) | |||||||||||
Allowance for credit losses at end of period | 421 | 409 | 421 | 409 | 386 | |||||||
Ending balance: Individually evaluated for impairment | 54 | 55 | 54 | 55 | ||||||||
Ending balance: Collectively evaluated for impairment | 367 | 354 | 367 | 354 | ||||||||
Finance Receivables: | ||||||||||||
Total Finance Receivables | 66,262 | 66,567 | 66,262 | 66,567 | ||||||||
Ending balance: Individually evaluated for impairment | 540 | 360 | 540 | 360 | ||||||||
Ending balance: Collectively evaluated for impairment | 65,722 | 66,207 | 65,722 | 66,207 | ||||||||
Finance Receivables, Net [Member] | Retail Loan [Member] | ||||||||||||
Allowance for Credit Losses for Finance Receivables: | ||||||||||||
Allowance for credit losses at beginning of period | 299 | 296 | 299 | 296 | ||||||||
Charge-offs | (328) | (273) | ||||||||||
Recoveries | 49 | 61 | ||||||||||
Provisions | 269 | 215 | ||||||||||
Transferred to held-for-sale | 0 | |||||||||||
Allowance for credit losses at end of period | 289 | 299 | 289 | 299 | 296 | |||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | ||||||||
Ending balance: Collectively evaluated for impairment | 289 | 299 | 289 | 299 | ||||||||
Finance Receivables: | ||||||||||||
Total Finance Receivables | 50,363 | 50,302 | 50,363 | 50,302 | ||||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | ||||||||
Ending balance: Collectively evaluated for impairment | 50,363 | 50,302 | 50,363 | 50,302 | ||||||||
Finance Receivables, Net [Member] | Commercial Portfolio Segment [Member] | ||||||||||||
Allowance for Credit Losses for Finance Receivables: | ||||||||||||
Allowance for credit losses at beginning of period | 2 | 2 | 2 | 2 | ||||||||
Charge-offs | (1) | (2) | ||||||||||
Recoveries | 0 | 1 | ||||||||||
Provisions | 1 | 1 | ||||||||||
Transferred to held-for-sale | (2) | |||||||||||
Allowance for credit losses at end of period | 0 | 2 | 0 | 2 | 2 | |||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | ||||||||
Ending balance: Collectively evaluated for impairment | 0 | 2 | 0 | 2 | ||||||||
Finance Receivables: | ||||||||||||
Total Finance Receivables | 0 | 521 | 0 | 521 | ||||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | ||||||||
Ending balance: Collectively evaluated for impairment | 0 | 521 | 0 | 521 | ||||||||
Finance Receivables, Net [Member] | Dealer Products [Member] | ||||||||||||
Allowance for Credit Losses for Finance Receivables: | ||||||||||||
Allowance for credit losses at beginning of period | $ 108 | $ 88 | 108 | 88 | ||||||||
Charge-offs | 0 | (1) | ||||||||||
Recoveries | 0 | 1 | ||||||||||
Provisions | 28 | 20 | ||||||||||
Transferred to held-for-sale | (4) | |||||||||||
Allowance for credit losses at end of period | 132 | 108 | 132 | 108 | $ 88 | |||||||
Ending balance: Individually evaluated for impairment | 54 | 55 | 54 | 55 | ||||||||
Ending balance: Collectively evaluated for impairment | 78 | 53 | 78 | 53 | ||||||||
Finance Receivables: | ||||||||||||
Total Finance Receivables | 15,899 | 15,744 | 15,899 | 15,744 | ||||||||
Ending balance: Individually evaluated for impairment | 540 | 360 | 540 | 360 | ||||||||
Ending balance: Collectively evaluated for impairment | $ 15,359 | $ 15,384 | $ 15,359 | $ 15,384 | ||||||||
[1] | Amount relates to the commercial finance business which was sold on October 1, 2015. |
Allowance for Credit Losses - P
Allowance for Credit Losses - Past Due Finance Receivables and Investments in Operating Leases (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Past Due Finance Receivables and Investments in Operating Leases | ||
Finance receivables | $ 189 | $ 153 |
Investments in operating leases | 80 | 52 |
Total | $ 269 | $ 205 |
Allowance for Credit Losses -63
Allowance for Credit Losses - Aging of Finance Receivables by Class (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 773 | $ 628 |
Current | 65,489 | 65,939 |
Total Finance Receivables | 66,262 | 66,567 |
90 Days or Greater Past Due and Accruing | 35 | 32 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 584 | 475 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 129 | 102 |
90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 60 | 51 |
Retail Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 773 | 618 |
Current | 49,590 | 49,684 |
Total Finance Receivables | 50,363 | 50,302 |
90 Days or Greater Past Due and Accruing | 35 | 32 |
Retail Loan [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 584 | 467 |
Retail Loan [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 129 | 100 |
Retail Loan [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 60 | 51 |
Commercial Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 10 | |
Current | 0 | 511 |
Total Finance Receivables | 0 | $ 521 |
90 Days or Greater Past Due and Accruing | ||
Commercial Finance [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 8 | |
Commercial Finance [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 2 |
Commercial Finance [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Wholesale [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | $ 9,262 | $ 9,226 |
Total Finance Receivables | $ 9,262 | $ 9,226 |
90 Days or Greater Past Due and Accruing | ||
Wholesale [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Wholesale [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Wholesale [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | $ 4,704 | $ 4,665 |
Total Finance Receivables | $ 4,704 | $ 4,665 |
90 Days or Greater Past Due and Accruing | ||
Real estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Real estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Real estate [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Working capital [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | $ 1,933 | $ 1,853 |
Total Finance Receivables | $ 1,933 | $ 1,853 |
90 Days or Greater Past Due and Accruing | ||
Working capital [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Working capital [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Working capital [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due |
Derivatives, Hedging Activiti64
Derivatives, Hedging Activities and Interest Expense - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Aggregate fair value of derivative instruments in a net liability position | $ 7 | |
Collateral held | 320 | $ 145 |
Collateral held in excess of the fair value of derivative assets | 2 | 10 |
Collateral posted | 718 | 1,694 |
Collateral posted in excess of the fair value of derivative liabilities | $ 22 | $ 2 |
Derivatives, Hedging Activiti65
Derivatives, Hedging Activities and Interest Expense - Derivative Activity Impact on Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Derivatives Fair Value [Line Items] | ||
Carrying value of derivative contracts – Other assets | $ 68 | $ 53 |
Carrying value of derivative contracts – Other liabilities | 7 | 90 |
Counterparty netting and collateral held | (320) | (145) |
Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 35,849 | 27,923 |
Fair value | 973 | 688 |
Counterparty netting and collateral held | (905) | (635) |
Other assets [Member] | Interest rate swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 29,469 | 26,739 |
Fair value | 640 | 471 |
Other assets [Member] | Interest Rate Floor [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 1,679 | |
Fair value | 4 | |
Other assets [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 4,701 | 1,184 |
Fair value | 329 | 217 |
Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 77,753 | 78,124 |
Fair value | 1,310 | 2,274 |
Counterparty netting and collateral posted | (1,303) | (2,184) |
Other liabilities [Member] | Interest rate swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 68,383 | 64,852 |
Fair value | 475 | 386 |
Other liabilities [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 9,340 | 13,222 |
Fair value | 835 | 1,888 |
Other liabilities [Member] | Interest rate cap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 30 | 50 |
Fair value | 0 | 0 |
Hedge accounting derivatives [Member] | Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 364 | 461 |
Fair value | 39 | 28 |
Hedge accounting derivatives [Member] | Other assets [Member] | Interest rate swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | 190 |
Fair value | 0 | 4 |
Hedge accounting derivatives [Member] | Other assets [Member] | Interest Rate Floor [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | |
Fair value | 0 | |
Hedge accounting derivatives [Member] | Other assets [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 364 | 271 |
Fair value | 39 | 24 |
Hedge accounting derivatives [Member] | Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | 251 |
Fair value | 0 | 43 |
Hedge accounting derivatives [Member] | Other liabilities [Member] | Interest rate swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | 0 |
Fair value | 0 | 0 |
Hedge accounting derivatives [Member] | Other liabilities [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | 251 |
Fair value | 0 | 43 |
Hedge accounting derivatives [Member] | Other liabilities [Member] | Interest rate cap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | 0 |
Fair value | 0 | 0 |
Non-hedge accounting derivatives [Member] | Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 35,485 | 27,462 |
Fair value | 934 | 660 |
Non-hedge accounting derivatives [Member] | Other assets [Member] | Interest rate swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 29,469 | 26,549 |
Fair value | 640 | 467 |
Non-hedge accounting derivatives [Member] | Other assets [Member] | Interest Rate Floor [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 1,679 | |
Fair value | 4 | |
Non-hedge accounting derivatives [Member] | Other assets [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 4,337 | 913 |
Fair value | 290 | 193 |
Non-hedge accounting derivatives [Member] | Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 77,753 | 77,873 |
Fair value | 1,310 | 2,231 |
Non-hedge accounting derivatives [Member] | Other liabilities [Member] | Interest rate swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 68,383 | 64,852 |
Fair value | 475 | 386 |
Non-hedge accounting derivatives [Member] | Other liabilities [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 9,340 | 12,971 |
Fair value | 835 | 1,845 |
Non-hedge accounting derivatives [Member] | Other liabilities [Member] | Interest rate cap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 30 | 50 |
Fair value | 0 | 0 |
Carrying value [Member] | Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying value of derivative contracts – Other assets | 68 | 53 |
Carrying value [Member] | Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying value of derivative contracts – Other liabilities | $ 7 | $ 90 |
Derivatives, Hedging Activiti66
Derivatives, Hedging Activities and Interest Expense - Components of Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Derivative Instruments Gain Loss [Line Items] | |||||||||||
Interest expense on debt | $ 1,308 | $ 1,213 | $ 1,262 | ||||||||
Interest income on hedge accounting derivatives | (16) | (43) | (85) | ||||||||
Interest income on non-hedge accounting foreign currency swaps | (94) | (147) | (202) | ||||||||
Interest expense on non-hedge accounting interest rate swaps | 103 | 123 | 210 | ||||||||
Interest expense on debt and derivatives, net | 1,301 | 1,146 | 1,185 | ||||||||
Total interest expense | $ 149 | $ 277 | $ 203 | $ 508 | $ 230 | $ 161 | $ 215 | $ 130 | 1,137 | 736 | 1,340 |
Interest expense [Member] | |||||||||||
Derivative Instruments Gain Loss [Line Items] | |||||||||||
Loss (gain) on non-hedge accounting foreign currency transactions | 503 | (2,375) | (45) | ||||||||
(Gain) loss on non-hedge accounting foreign currency swaps | (573) | 2,248 | 185 | ||||||||
(Gain) loss on non-hedge accounting interest rate swaps | (92) | (282) | 18 | ||||||||
Hedge accounting derivatives [Member] | Interest expense [Member] | |||||||||||
Derivative Instruments Gain Loss [Line Items] | |||||||||||
Loss on hedge accounting derivatives | 141 | 28 | |||||||||
Less hedged item: change in fair value of fixed rate debt | (2) | (142) | (31) | ||||||||
Ineffectiveness related to hedge accounting derivatives | $ (2) | (1) | (3) | ||||||||
Hedge accounting derivatives [Member] | Interest expense [Member] | Interest rate swap [Member] | |||||||||||
Derivative Instruments Gain Loss [Line Items] | |||||||||||
Loss on hedge accounting derivatives | 19 | 20 | |||||||||
Hedge accounting derivatives [Member] | Interest expense [Member] | Foreign currency swaps [Member] | |||||||||||
Derivative Instruments Gain Loss [Line Items] | |||||||||||
Loss on hedge accounting derivatives | $ 122 | $ 8 |
Other Assets and Other Liabil67
Other Assets and Other Liabilities - Other Assets and Other Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Other assets: | ||
Notes receivable from affiliates | $ 1,177 | $ 1,184 |
Used vehicles held for sale | 319 | 188 |
Deferred charges | 131 | 122 |
Income taxes receivable | 31 | 174 |
Derivative assets | 68 | 53 |
Other assets | 622 | 561 |
Total other assets | 2,348 | 2,282 |
Other liabilities: | ||
Unearned insurance premiums and contract revenues | 1,985 | 1,825 |
Derivative liabilities | 7 | 90 |
Accounts payable and accrued expenses | 939 | 855 |
Deferred income | 462 | 405 |
Other liabilities | 192 | 180 |
Total other liabilities | $ 3,585 | $ 3,355 |
Debt - Debt and Related Weighte
Debt - Debt and Related Weighted Average Contractual Interest Rates (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Debt Instrument [Line Items] | ||
Debt | $ 93,725 | $ 90,231 |
Weighted average contractual interest rates | 1.30% | 1.22% |
Commercial paper [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 26,608 | $ 27,006 |
Weighted average contractual interest rates | 0.60% | 0.21% |
Unsecured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 52,856 | $ 52,307 |
Weighted average contractual interest rates | 1.76% | 1.86% |
Secured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 14,139 | $ 10,837 |
Weighted average contractual interest rates | 0.91% | 0.60% |
Carrying value adjustment [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 122 | $ 81 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Debt Instrument [Line Items] | ||
Debt | $ 93,725 | $ 90,231 |
Increase (decrease) in carrying value adjustment on debt | $ 41 | |
Commercial paper [Member] | ||
Debt Instrument [Line Items] | ||
Commercial paper average remaining maturity period | 83 days | |
Debt | $ 26,608 | 27,006 |
Secured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt maturity year | 2,047 | |
Debt | $ 14,139 | $ 10,837 |
Secured notes and loans payable [Member] | Floating and Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Contractual interest rate, minimum | 0.50% | 0.40% |
Contractual interest rate, maximum | 1.70% | 1.50% |
Unsecured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 52,856 | $ 52,307 |
Debt denominated in foreign currency | 13,100 | 12,400 |
Unsecured notes and loans payable [Member] | Floating rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 17,900 | $ 17,400 |
Contractual interest rate, minimum | 0.00% | 0.00% |
Contractual interest rate, maximum | 3.10% | 3.30% |
Unsecured notes and loans payable [Member] | Fixed rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 35,100 | $ 35,000 |
Contractual interest rate, minimum | 0.80% | 0.80% |
Contractual interest rate, maximum | 9.40% | 9.40% |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Scheduled maturities due in the fiscal years ending: | ||
2,017 | $ 47,521 | |
2,018 | 16,164 | |
2,019 | 9,745 | |
2,020 | 5,163 | |
2,021 | 6,608 | |
Thereafter | 8,524 | |
Total debt | $ 93,725 | $ 90,231 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Variable Interest Entities, Securitization Transactions Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Restricted Cash | $ 1,010 | $ 784 |
Net Securitized Assets | 65,636 | 65,893 |
Other Assets | 2,348 | 2,282 |
Debt | 93,725 | 90,231 |
Other liabilities | 3,585 | 3,355 |
Variable Interest Entities Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted Cash | 989 | 784 |
Gross Securitized Assets | 17,707 | 13,253 |
Net Securitized Assets | 16,634 | 12,702 |
Other Assets | 84 | 15 |
Variable Interest Entities Liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 14,139 | 10,837 |
Other liabilities | 5 | 3 |
Retail Finance Receivables [Member] | Variable Interest Entities Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted Cash | 853 | 730 |
Gross Securitized Assets | 14,343 | 11,682 |
Net Securitized Assets | 14,130 | 11,509 |
Other Assets | 6 | 4 |
Retail Finance Receivables [Member] | Variable Interest Entities Liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 12,449 | 9,980 |
Other liabilities | 4 | 3 |
Investments In Operating Leases, Net [Member] | Variable Interest Entities Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted Cash | 136 | 54 |
Gross Securitized Assets | 3,364 | 1,571 |
Net Securitized Assets | 2,504 | 1,193 |
Other Assets | 78 | 11 |
Investments In Operating Leases, Net [Member] | Variable Interest Entities Liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 1,690 | 857 |
Other liabilities | $ 1 | $ 0 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract] | ||
Securities retained by TMCC | $ 1,264 | $ 1,275 |
Liquidity Facilities and Lett73
Liquidity Facilities and Letters of Credit - Additional Information (Details) - USD ($) | 1 Months Ended | ||
Nov. 30, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
364 Day Credit Agreement Expiring 2017 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Initiation date | Nov. 30, 2015 | ||
Maximum borrowing capacity | $ 5,000,000,000 | ||
Credit facilities amount outstanding | $ 0 | ||
Three Year Agreement Expiring 2019 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Initiation date | Nov. 30, 2015 | ||
Maximum borrowing capacity | $ 5,000,000,000 | ||
Credit facilities amount outstanding | 0 | ||
Five Year Agreement Expiring 2021 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Initiation date | Nov. 30, 2015 | ||
Maximum borrowing capacity | $ 5,000,000,000 | ||
Credit facilities amount outstanding | 0 | ||
Total Committed Bank Credit Facilities [Member] | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 5,300,000,000 | ||
Committed Bank Credit Facility Expiring 2017 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,700,000,000 | ||
Credit facilities amount outstanding | 0 | $ 0 | |
Committed Bank Credit Facility Expiring 2018 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 125,000,000 | ||
Credit facilities amount outstanding | 0 | 0 | |
Committed Bank Credit Facility Expiring 2019 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,100,000,000 | ||
Credit facilities amount outstanding | 0 | 0 | |
Committed Bank Credit Facility Expiring 2020 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 375,000,000 | ||
Credit facilities amount outstanding | $ 0 | $ 0 |
Pension and Other Benefits Pl74
Pension and Other Benefits Plans - Additional Information (Details) - TMS [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Defined Contribution Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Vesting period | 4 years | ||
Annual minimum contribution percentage by employee | 1.00% | ||
Annual maximum contribution percentage by employee | 30.00% | ||
Employer matching contribution percentage | 66.67% | ||
Maximum annual employer contribution percentage per employee | 6.00% | ||
Employer matching contribution, annual vesting percentage | 25.00% | ||
Employer contributions to defined contribution plan | $ 8 | $ 7 | $ 7 |
Defined Benefit Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Vesting period | 5 years | ||
Maximum employee credited service years | 25 years | ||
Highest average compensation consecutive number of months | 60 months | ||
The last applicable months of employment | 120 months | ||
Pension costs | $ 11 | 4 | 15 |
Other Post-employment Benefits [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Vesting period | 10 years | ||
Employee minimum age eligibility for post employment benefits | 55 years | ||
Other post-retirement benefit costs | $ 13 | $ 13 | $ 16 |
Income Tax Provision - Provisio
Income Tax Provision - Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Current | |||||||||||
Federal | $ 73 | $ (25) | $ (24) | ||||||||
State | (33) | (15) | (3) | ||||||||
Foreign | 9 | 9 | 8 | ||||||||
Total | 49 | (31) | (19) | ||||||||
Deferred | |||||||||||
Federal | 420 | 644 | 460 | ||||||||
State | 111 | 117 | 54 | ||||||||
Foreign | (1) | 2 | |||||||||
Total | 531 | 760 | 516 | ||||||||
Provision for income taxes | $ 139 | $ 210 | $ 161 | $ 70 | $ 155 | $ 185 | $ 176 | $ 213 | $ 580 | $ 729 | $ 497 |
Income Tax Provision - Reconcil
Income Tax Provision - Reconciliation Between U.S. Federal Statutory Tax Rate and Effective Tax Rate (Details) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Reconciliation Between U.S. Federal Statutory Tax Rate and Effective Tax Rate | |||
Provision for income taxes at U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes (net of federal tax benefit) | 3.20% | 3.20% | 3.10% |
Other, net | 0.20% | (0.30%) | (1.40%) |
Effective tax rate | 38.40% | 37.90% | 36.70% |
Income Tax Provision - Deferred
Income Tax Provision - Deferred Tax Liabilities and Assets (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Liabilities: | ||
Lease transactions | $ 8,579 | $ 8,576 |
State taxes | 642 | 570 |
Mark-to-market of investments in marketable securities and derivatives | 316 | 292 |
Other | 344 | 329 |
Deferred tax liabilities | 9,881 | 9,767 |
Assets: | ||
Provision for credit and residual value losses | 431 | 328 |
Deferred costs and fees | 292 | 258 |
Net operating loss and tax credit carryforwards | 1,097 | 1,615 |
Other | 67 | 67 |
Deferred tax assets | 1,887 | 2,268 |
Valuation allowance | (22) | (20) |
Net deferred tax assets | 1,865 | 2,248 |
Net deferred income tax liability | $ 8,016 | $ 7,519 |
Income Tax Provision - Deferr78
Income Tax Provision - Deferred Tax Liabilities and Assets (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred tax liabilities attributable to unrealized gain or loss included in accumulated other comprehensive income or loss, net | $ 102 | $ 136 |
Income Tax Provision - Addition
Income Tax Provision - Additional Information (Details) - USD ($) | Oct. 02, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Line Items] | ||||
Deferred Tax Assets, Tax Credit Carryforwards, Federal and State | $ 99,000,000 | $ 96,000,000 | ||
Valuation Allowance | 22,000,000 | 20,000,000 | ||
Income taxes (received) paid, net | (95,000,000) | 143,000,000 | $ (30,000,000) | |
Unremitted earnings in foreign subsidiary | 208,000,000 | 196,000,000 | ||
Income Taxes Receivable | 31,000,000 | 174,000,000 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 1,000,000 | 1,000,000 | 1,000,000 | |
Amounts Remaining in Unrecognized Tax Benefits | 0 | 0 | 0 | |
Increase in Unrecognized Tax Benefits | 1,000,000 | |||
Income Tax Penalties Accrued | 0 | 0 | 0 | |
Sale of Commercial Finance Business [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax expense resulting from taxable gain on sale | $ 89,000,000 | |||
TMCC-affiliated companies [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Income Taxes Receivable | 5,000,000 | |||
Income Tax Payable | 2,000,000 | |||
Federal [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Operating Loss Carryforwards | 912,000,000 | 1,435,000,000 | ||
State [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Operating Loss Carryforwards | 67,000,000 | 71,000,000 | ||
Income Taxes Receivable | $ 13,000,000 | |||
Income Tax Payable | $ 11,000,000 | |||
Expiration Beginning Date [Member] | Federal [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Expiration Dates | Mar. 31, 2029 | |||
Expiration Beginning Date [Member] | State [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Expiration Dates | Mar. 31, 2017 | Mar. 31, 2016 | ||
Maximum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Interest on Income Taxes Accrued | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |
Maximum [Member] | Federal [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Expiration Dates | Mar. 31, 2035 | |||
Maximum [Member] | State [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Expiration Dates | Mar. 31, 2036 | Mar. 31, 2035 |
Income Tax Provision - Change i
Income Tax Provision - Change in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Change in Unrecognized Tax Benefits | |||
Balance at beginning of the period | $ 0 | $ 6 | $ 7 |
Increases related to positions taken during the current year | 1 | 0 | 0 |
Decreases related to positions taken during the prior years | 0 | 0 | (1) |
Settlements | 0 | (6) | 0 |
Balance at end of period | $ 1 | $ 0 | $ 6 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments and Guarantees (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Commitments: | ||
Credit facilities commitments with dealers | $ 1,168 | $ 1,137 |
Minimum lease commitments | 55 | 60 |
Total commitments | 1,223 | 1,197 |
Total commitments and guarantees | 1,323 | 1,297 |
Performance Guarantee [Member] | Putnam and Gibson Counties [Member] | ||
Commitments: | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | $ 100 | $ 100 |
Commitments and Contingencies82
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Commitments And Contingencies [Line Items] | |||
Rental expense payments to affiliates | $ 25,000,000 | $ 26,000,000 | $ 25,000,000 |
Minimum lease commitments | 55,000,000 | 60,000,000 | |
Estimated moving costs | 120,000,000 | ||
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 | |
TMS [Member] | |||
Commitments And Contingencies [Line Items] | |||
15-year lease agreement between TMCC and TMS | 15 years | ||
Expiration date of the 15-year lease agreement between TMCC and TMS | Mar. 31, 2018 | ||
TMCC-affiliated companies [Member] | |||
Commitments And Contingencies [Line Items] | |||
Minimum lease commitments | $ 16,000,000 | $ 23,000,000 | |
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 | ||
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Affiliate Pollution Control and Solid Waste Disposal Bonds [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guaranty Fee | $ 78,000 |
Commitments and Contingencies83
Commitments and Contingencies - Future Minimum Lease Payments under Non-cancelable Operating Leases (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Future minimum lease payments under non-cancelable operating leases | ||
2,017 | $ 22 | |
2,018 | 17 | |
2,019 | 9 | |
2,020 | 4 | |
2,021 | 2 | |
Thereafter | 1 | |
Total | $ 55 | $ 60 |
Related Party Transactions - Re
Related Party Transactions - Related Party Transactions Included in Consolidated Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net financing revenues: | |||||||
Manufacturers’ subvention support and other revenues | $ 1,315 | $ 1,196 | $ 994 | ||||
Origination costs paid to affiliates | (1) | (1) | 0 | ||||
Credit support fees incurred | (91) | (88) | (82) | ||||
Interest and other expenses paid to affiliates | (3) | (2) | (3) | ||||
Insurance earned premiums and contract revenues: | |||||||
Affiliate insurance premiums and contract revenues | 719 | 638 | 567 | ||||
Investments and other income, net: | |||||||
Gain on sale of commercial finance business | $ 0 | $ 197 | $ 0 | $ 0 | 197 | ||
Interest earned on notes receivable from affiliates | 7 | 4 | 6 | ||||
Other income from affiliates | 1 | ||||||
Expenses: | |||||||
Insurance losses and loss adjustment expenses | 318 | 269 | 258 | ||||
TMCC-affiliated companies [Member] | |||||||
Insurance earned premiums and contract revenues: | |||||||
Affiliate insurance premiums and contract revenues | 132 | 129 | 131 | ||||
Investments and other income, net: | |||||||
Gain on sale of commercial finance business | 197 | ||||||
Expenses: | |||||||
Shared services charges and other expenses | 47 | 63 | 61 | ||||
Employee benefits expense | 33 | 24 | 38 | ||||
Insurance losses and loss adjustment expenses | $ 1 | $ 1 | $ 0 |
Related Party Transactions - 85
Related Party Transactions - Related Party Transactions Included in Consolidated Balance Sheet (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Investments in marketable securities | ||
Investments in affiliates’ commercial paper | $ 0 | $ 37 |
Finance receivables, net | ||
Accounts receivable from affiliates | 119 | 83 |
Direct finance lease receivables from affiliates | 0 | 6 |
Notes receivable under home loan programs | 9 | 11 |
Deferred retail origination costs paid to affiliates | 1 | 1 |
Deferred retail subvention income from affiliates | (794) | (802) |
Investments in operating leases, net | ||
Leases to affiliates | 36,488 | 31,128 |
Deferred lease origination costs paid to affiliates | 1 | 1 |
Deferred lease subvention income from affiliates | (1,057) | (950) |
Other assets | ||
Notes receivable from affiliates | 1,177 | 1,184 |
Other receivables from affiliates | 7 | 6 |
Subvention support receivable from affiliates | 127 | 126 |
Other liabilities | ||
Unearned insurance premiums and contract revenues | 1,985 | 1,825 |
Accounts payable to affiliates | 209 | 136 |
Notes payable to affiliates | 20 | 24 |
TMCC-affiliated companies [Member] | ||
Investments in operating leases, net | ||
Leases to affiliates | 2 | 7 |
Other liabilities | ||
Unearned insurance premiums and contract revenues | 278 | 252 |
Shareholder’s equity: | ||
Stock-based compensation | $ 2 | $ 2 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Related Party Transaction [Line Items] | ||||
Credit Support fees | $ 91,000,000 | $ 88,000,000 | $ 82,000,000 | |
TFSC [Member] | Financing Support Arrangements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Credit Support fees | 91,000,000 | 88,000,000 | $ 82,000,000 | |
TFSB [Member] | ||||
Related Party Transaction [Line Items] | ||||
Credit card reward program cost | $ 0 | |||
TFSB [Member] | Other Financing Support Arrangements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Maximum lending amount | 150,000,000 | |||
TFSB [Member] | Other Financing Support Arrangements [Member] | Residential Mortgage [Member] | ||||
Related Party Transaction [Line Items] | ||||
Annual maximum participation | 60,000,000 | |||
Loans purchased | $ 37,000,000 | $ 47,000,000 | ||
TMS [Member] | Operational Support Arrangements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Lease agreement expiration year | 2,018 | |||
TMS [Member] | Operational Support Arrangements [Member] | Customer Service Center [Member] | ||||
Related Party Transaction [Line Items] | ||||
Lease agreement expiration year | 2,019 | |||
TMIS [Member] | Operational Support Arrangements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Risk ceded to reinsurers | 99.00% |
Related Party Transactions - 87
Related Party Transactions - Related Party Transactions Financing Support Provided by Parent and Affiliates (Details) € in Millions, CAD in Millions, $ in Millions | Mar. 31, 2016USD ($) | Mar. 31, 2016CAD | Mar. 31, 2016EUR (€) | Mar. 31, 2015USD ($) |
Related Party Transaction [Line Items] | ||||
Amounts outstanding provided by parent and affiliates | $ 20 | $ 24 | ||
TCCI [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing available to TMCC | CAD | CAD 1,500 | |||
Amounts outstanding provided by parent and affiliates | 0 | 0 | ||
TMFNL [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing available to TMCC | € | € 1,000 | |||
Amounts outstanding provided by parent and affiliates | 0 | 0 | ||
TFSA [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing available to TMCC | 200 | |||
Amounts outstanding provided by parent and affiliates | 12 | 24 | ||
TFA [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing available to TMCC | 1,000 | |||
Amounts outstanding provided by parent and affiliates | 0 | 0 | ||
TFSS USA [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing available to TMCC | 15 | |||
Amounts outstanding provided by parent and affiliates | $ 8 | $ 0 |
Related Party Transactions - 88
Related Party Transactions - Related Party Transactions Financing Support Provided to Parent and Affiliates (Details) € in Millions, CAD in Millions, $ in Millions | Mar. 31, 2016USD ($) | Mar. 31, 2016CAD | Mar. 31, 2016EUR (€) | Mar. 31, 2015USD ($) |
Related Party Transaction [Line Items] | ||||
Amounts outstanding provided to affiliates | $ 1,177 | $ 1,184 | ||
TFSB [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing made available by TMCC | 400 | |||
Amounts outstanding provided to affiliates | 25 | |||
TCCI [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing made available by TMCC | CAD | CAD 2,500 | |||
Amounts outstanding provided to affiliates | 220 | 0 | ||
TMFNL [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing made available by TMCC | € | € 1,000 | |||
Amounts outstanding provided to affiliates | 619 | 778 | ||
TFSA [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing made available by TMCC | 200 | |||
Amounts outstanding provided to affiliates | 0 | 0 | ||
TFSMX [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing made available by TMCC | 500 | |||
Amounts outstanding provided to affiliates | 0 | 0 | ||
BTB [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing made available by TMCC | 300 | |||
Amounts outstanding provided to affiliates | 58 | 81 | ||
TFA [Member] | ||||
Related Party Transaction [Line Items] | ||||
Financing made available by TMCC | 1,000 | |||
Amounts outstanding provided to affiliates | $ 280 | $ 300 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | $ 2,419 | $ 2,376 | $ 2,353 | $ 2,255 | $ 2,181 | $ 2,112 | $ 2,057 | $ 1,960 | $ 9,403 | $ 8,310 | $ 7,397 |
Insurance earned premiums and contract revenues | 719 | 638 | 567 | ||||||||
Investment and other income, net | 164 | 194 | 135 | ||||||||
Gain on sale of commercial finance business | 0 | 197 | 0 | 0 | 197 | ||||||
Total gross revenues | 10,483 | 9,142 | 8,099 | ||||||||
Depreciation on operating leases | 1,605 | 1,503 | 1,446 | 1,360 | 1,313 | 1,248 | 1,196 | 1,100 | 5,914 | 4,857 | 4,012 |
Interest expense | 149 | 277 | 203 | 508 | 230 | 161 | 215 | 130 | 1,137 | 736 | 1,340 |
Provision for credit losses | 163 | 128 | 105 | 45 | 88 | 103 | 79 | 38 | 441 | 308 | 170 |
Operating and administrative expenses | 1,161 | 1,046 | 965 | ||||||||
Insurance losses and loss adjustment expenses | 318 | 269 | 258 | ||||||||
Provision for income taxes | 139 | 210 | 161 | 70 | 155 | 185 | 176 | 213 | 580 | 729 | 497 |
Net income | 190 | $ 342 | $ 265 | $ 135 | 235 | $ 307 | $ 291 | $ 364 | 932 | 1,197 | 857 |
Total assets | 114,723 | 109,625 | 114,723 | 109,625 | 102,740 | ||||||
Intercompany Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | 0 | 0 | 26 | ||||||||
Insurance earned premiums and contract revenues | 0 | 0 | (26) | ||||||||
Investment and other income, net | 0 | 0 | 0 | ||||||||
Gain on sale of commercial finance business | 0 | ||||||||||
Total gross revenues | 0 | 0 | 0 | ||||||||
Depreciation on operating leases | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Operating and administrative expenses | 0 | 0 | 0 | ||||||||
Insurance losses and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Net income | 0 | 0 | 0 | ||||||||
Total assets | (1,065) | (919) | (1,065) | (919) | (725) | ||||||
Finance Operations [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | 9,403 | 8,310 | 7,371 | ||||||||
Insurance earned premiums and contract revenues | 0 | 0 | 0 | ||||||||
Investment and other income, net | 99 | 89 | 98 | ||||||||
Gain on sale of commercial finance business | 197 | ||||||||||
Total gross revenues | 9,699 | 8,399 | 7,469 | ||||||||
Depreciation on operating leases | 5,914 | 4,857 | 4,012 | ||||||||
Interest expense | 1,137 | 736 | 1,340 | ||||||||
Provision for credit losses | 441 | 308 | 170 | ||||||||
Operating and administrative expenses | 909 | 825 | 767 | ||||||||
Insurance losses and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Provision for income taxes | 501 | 635 | 437 | ||||||||
Net income | 797 | 1,038 | 743 | ||||||||
Total assets | 111,627 | 106,653 | 111,627 | 106,653 | 99,737 | ||||||
Insurance Operations [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | 0 | 0 | 0 | ||||||||
Insurance earned premiums and contract revenues | 719 | 638 | 593 | ||||||||
Investment and other income, net | 65 | 105 | 37 | ||||||||
Gain on sale of commercial finance business | 0 | ||||||||||
Total gross revenues | 784 | 743 | 630 | ||||||||
Depreciation on operating leases | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Operating and administrative expenses | 252 | 221 | 198 | ||||||||
Insurance losses and loss adjustment expenses | 318 | 269 | 258 | ||||||||
Provision for income taxes | 79 | 94 | 60 | ||||||||
Net income | 135 | 159 | 114 | ||||||||
Total assets | $ 4,161 | $ 3,891 | $ 4,161 | $ 3,891 | $ 3,728 |
Selected Quarterly Financial 90
Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total financing revenues | $ 2,419 | $ 2,376 | $ 2,353 | $ 2,255 | $ 2,181 | $ 2,112 | $ 2,057 | $ 1,960 | $ 9,403 | $ 8,310 | $ 7,397 |
Depreciation on operating leases | 1,605 | 1,503 | 1,446 | 1,360 | 1,313 | 1,248 | 1,196 | 1,100 | 5,914 | 4,857 | 4,012 |
Interest expense | 149 | 277 | 203 | 508 | 230 | 161 | 215 | 130 | 1,137 | 736 | 1,340 |
Net financing revenues | 665 | 596 | 704 | 387 | 638 | 703 | 646 | 730 | 2,352 | 2,717 | 2,045 |
Other income | 231 | 248 | 192 | 212 | 203 | 221 | 220 | 188 | |||
Gain on sale of commercial finance business | 0 | 197 | 0 | 0 | 197 | ||||||
Provision for credit losses | 163 | 128 | 105 | 45 | 88 | 103 | 79 | 38 | 441 | 308 | 170 |
Expenses | 404 | 361 | 365 | 349 | 363 | 329 | 320 | 303 | |||
Income before income taxes | 329 | 552 | 426 | 205 | 390 | 492 | 467 | 577 | 1,512 | 1,926 | 1,354 |
Provision for income taxes | 139 | 210 | 161 | 70 | 155 | 185 | 176 | 213 | 580 | 729 | 497 |
Net income | $ 190 | $ 342 | $ 265 | $ 135 | $ 235 | $ 307 | $ 291 | $ 364 | $ 932 | $ 1,197 | $ 857 |