Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Apr. 30, 2020 | Sep. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2020 | ||
Amendment Flag | false | ||
Entity Registrant Name | TOYOTA MOTOR CREDIT CORPORATION | ||
Entity Central Index Key | 0000834071 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --03-31 | ||
Trading Symbol | TM/28 | ||
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 | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity File Number | 1-9961 | ||
Entity Tax Identification Number | 95-3775816 | ||
Entity Address, Address Line One | 6565 Headquarters Drive | ||
Entity Address, City or Town | Plano | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75024 | ||
City Area Code | 469 | ||
Local Phone Number | 486-9300 | ||
Entity Incorporation, State or Country Code | CA | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Medium-Term Notes, Series B Stated Maturity Date January 11, 2028 | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes | ||
Documents Incorporated by Reference | None |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Financing revenues: | |||||||||||
Operating lease | $ 2,182 | $ 2,212 | $ 2,197 | $ 2,184 | $ 2,189 | $ 2,212 | $ 2,167 | $ 2,126 | $ 8,775 | $ 8,694 | $ 8,167 |
Retail | 670 | 661 | 638 | 589 | 575 | 578 | 547 | 535 | 2,558 | 2,235 | 1,974 |
Dealer | 152 | 171 | 183 | 190 | 182 | 178 | 176 | 175 | 696 | 711 | 576 |
Total financing revenues | 3,004 | 3,044 | 3,018 | 2,963 | 2,946 | 2,968 | 2,890 | 2,836 | 12,029 | 11,640 | 10,717 |
Depreciation on operating leases | 1,900 | 1,712 | 1,583 | 1,625 | 1,764 | 1,717 | 1,662 | 1,766 | 6,820 | 6,909 | 7,041 |
Interest expense | 769 | 755 | 613 | 697 | 664 | 699 | 702 | 682 | 2,834 | 2,747 | 1,851 |
Net financing revenues | 335 | 577 | 822 | 641 | 518 | 552 | 526 | 388 | 2,375 | 1,984 | 1,825 |
Insurance earned premiums and contract revenues | 241 | 231 | 232 | 229 | 228 | 226 | 226 | 224 | 933 | 904 | 882 |
Investment and other income, net | 50 | 57 | 97 | 118 | 128 | 68 | 56 | 40 | 322 | 292 | 257 |
Net financing revenues and other revenues | 626 | 865 | 1,151 | 988 | 874 | 846 | 808 | 652 | 3,630 | 3,180 | 2,964 |
Expenses: | |||||||||||
Provision for credit losses | 326 | 128 | 61 | 75 | 106 | 110 | 67 | 89 | 590 | 372 | 401 |
Operating and administrative | 460 | 406 | 358 | 337 | 366 | 347 | 348 | 324 | 1,561 | 1,385 | 1,357 |
Insurance losses and loss adjustment expenses | 111 | 116 | 115 | 113 | 103 | 106 | 112 | 125 | 455 | 446 | 425 |
Total expenses | 897 | 650 | 534 | 525 | 575 | 563 | 527 | 538 | 2,606 | 2,203 | 2,183 |
Income before income taxes | (271) | 215 | 617 | 463 | 299 | 283 | 281 | 114 | 1,024 | 977 | 781 |
Provision (benefit) for income taxes | (185) | 34 | 158 | 104 | 4 | 69 | 87 | 22 | 111 | 182 | (2,629) |
Net income | $ (86) | $ 181 | $ 459 | $ 359 | $ 295 | $ 214 | $ 194 | $ 92 | $ 913 | $ 795 | $ 3,410 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 913 | $ 795 | $ 3,410 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized gains (losses) on available-for-sale marketable securities [net of tax (provision) benefit of ($4), ($5) and $6, respectively] | 13 | 11 | (29) |
Reclassification adjustment for net (gains) losses on available-for-sale marketable securities included in investment and other income, net [net of tax (benefit) provision of $0, ($3) and $16, respectively] | (1) | 9 | (25) |
Other comprehensive income (loss) | 12 | 20 | (54) |
Comprehensive income | $ 925 | $ 815 | $ 3,356 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net unrealized gains (losses) on available-for-sale marketable securities, tax (provision) benefit | $ (4) | $ (5) | $ 6 |
Reclassification adjustment for net losses (gains) on available-for-sale marketable securities included in investment and other income, tax (benefit) provision | $ 0 | $ (3) | $ 16 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 6,790 | $ 2,198 |
Restricted cash and cash equivalents | 1,739 | 985 |
Investments in marketable securities | 3,820 | 2,908 |
Finance receivables, net | 73,996 | 70,517 |
Investments in operating leases, net | 36,387 | 37,927 |
Other assets | 2,823 | 1,981 |
Total assets | 125,555 | 116,516 |
LIABILITIES AND SHAREHOLDER’S EQUITY | ||
Debt | 97,740 | 92,922 |
Deferred income taxes | 5,458 | 5,452 |
Other liabilities | 7,854 | 4,564 |
Total liabilities | 111,052 | 102,938 |
Commitments and contingencies (Refer to Note 9) | ||
Shareholder’s equity: | ||
Capital stock, no par value (100,000 shares authorized; 91,500 issued and outstanding) at March 31, 2020 and 2019 | 915 | 915 |
Additional paid-in capital | 2 | 2 |
Accumulated other comprehensive income | 15 | 3 |
Retained earnings | 13,571 | 12,658 |
Total shareholder's equity | 14,503 | 13,578 |
Total liabilities and shareholder's equity | $ 125,555 | $ 116,516 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Mar. 31, 2019 |
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 Sheets (Su
Consolidated Balance Sheets (Supplemental) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
ASSETS | ||
Finance receivables, net | $ 73,996 | $ 70,517 |
Investments in operating leases, net | 36,387 | 37,927 |
Other assets | 2,823 | 1,981 |
Total assets | 125,555 | 116,516 |
LIABILITIES | ||
Debt | 97,740 | 92,922 |
Other liabilities | 7,854 | 4,564 |
Total liabilities | 111,052 | 102,938 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Finance receivables, net | 12,375 | 11,075 |
Investments in operating leases, net | 5,586 | 5,307 |
Other assets | 131 | 192 |
Total assets | 18,092 | 16,574 |
LIABILITIES | ||
Debt | 14,568 | 12,401 |
Other liabilities | 12 | 12 |
Total liabilities | $ 14,580 | $ 12,413 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Millions | Total | Capital stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings |
Balance at Mar. 31, 2017 | $ 9,524 | $ 915 | $ 2 | $ 25 | $ 8,582 |
Net income | 3,410 | 0 | 0 | 0 | 3,410 |
Other comprehensive income (loss), net of tax | (54) | 0 | 0 | (54) | 0 |
Balance at Mar. 31, 2018 | 12,880 | 915 | 2 | (29) | 11,992 |
Cumulative-effect of change in accounting policy | (110) | 0 | 0 | 12 | (122) |
Net income | 795 | 0 | 0 | 0 | 795 |
Other comprehensive income (loss), net of tax | 20 | 0 | 0 | 20 | 0 |
Dividends, net of tax | (7) | 0 | 0 | 0 | (7) |
Balance at Mar. 31, 2019 | 13,578 | 915 | 2 | 3 | 12,658 |
Net income | 913 | 0 | 0 | 0 | 913 |
Other comprehensive income (loss), net of tax | 12 | 0 | 0 | 12 | 0 |
Balance at Mar. 31, 2020 | $ 14,503 | $ 915 | $ 2 | $ 15 | $ 13,571 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 913 | $ 795 | $ 3,410 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 6,930 | 7,023 | 7,123 |
Recognition of deferred income | (2,485) | (2,346) | (2,003) |
Provision for credit losses | 590 | 372 | 401 |
Amortization of deferred costs | 707 | 617 | 607 |
Foreign currency and other adjustments to the carrying value of debt, net | (515) | (938) | 1,502 |
Net gains from investments in marketable securities | (47) | (2) | (41) |
Net change in: | |||
Derivative assets | 10 | 0 | (10) |
Other assets and accrued interest | (482) | (86) | (117) |
Deferred income taxes | 2 | 156 | (2,578) |
Derivative liabilities | 19 | 20 | (40) |
Other liabilities | 122 | 324 | 81 |
Net cash provided by operating activities | 5,764 | 5,935 | 8,335 |
Cash flows from investing activities: | |||
Purchase of investments in marketable securities | (2,392) | (1,251) | (7,137) |
Proceeds from sales of investments in marketable securities | 345 | 1,740 | 1,376 |
Proceeds from maturities of investments in marketable securities | 1,200 | 2,457 | 5,580 |
Acquisition of finance receivables | (29,375) | (24,686) | (25,713) |
Collection of finance receivables | 25,668 | 24,082 | 24,100 |
Net change in wholesale and certain working capital receivables | (2) | (89) | 388 |
Acquisition of investments in operating leases | (15,350) | (16,068) | (16,575) |
Disposals of investments in operating leases | 11,775 | 11,395 | 9,821 |
Long term loans to affiliates | (600) | (569) | 0 |
Payments on long term loans from affiliates | 25 | 36 | 0 |
Net change in financing support provided to affiliates | 0 | 0 | 755 |
Other, net | (51) | (63) | (79) |
Net cash used in investing activities | (8,757) | (3,016) | (7,484) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 26,847 | 21,153 | 21,768 |
Payments on debt | (23,375) | (23,624) | (23,814) |
Net change in commercial paper | 1,861 | (2,022) | 664 |
Loan from affiliate | 3,000 | 0 | 0 |
Net change in financing support provided by affiliates | 16 | (2) | 5 |
Dividend paid | (10) | 0 | 0 |
Net cash provided by (used in) financing activities | 8,339 | (4,495) | (1,377) |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 5,346 | (1,576) | (526) |
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period | 3,183 | 4,759 | 5,285 |
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period | 8,529 | 3,183 | 4,759 |
Supplemental disclosures: | |||
Interest paid, net | 2,568 | 2,239 | 1,722 |
Income taxes paid, net | $ 269 | $ 42 | $ 8 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Note 1 – Basis of Presentation and Significant Accounting Policies Nature of Operations Toyota Motor Credit Corporation (“TMCC”) is a wholly-owned subsidiary of Toyota Financial Services International Corporation (“TFSIC”), 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 the “Company”, “we”, “our”, and “us” denote TMCC 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 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 and Lexus vehicles. Our products fall primarily into the following 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 operating leases (“lease contracts”) 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 vehicle and payment protection products sold by dealers in the U.S. Our vehicle and payment protection products include vehicle service agreements, guaranteed auto protection agreements, prepaid maintenance agreements, excess wear and use agreements, tire and wheel protection agreements, key replacement protection, and used vehicle limited warranty agreements. TMIS also provides coverage and related administrative services to certain of our affiliates in the U.S. Although the vehicle and payment protection products are generally not regulated as insurance products, for ease of reference we collectively refer to the group of products provided by TMIS herein as “insurance products.” Our 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, 2020, approximately 23 percent of retail and lease contracts were concentrated in California, 11 percent in Texas, 7 percent in New York, and 5 percent in New Jersey. Our insurance operations are located in the U.S. As of March 31, 2020, approximately 25 percent of insurance policies and contracts were concentrated in California, 6 percent in New York, and 5 percent in Maryland, New Jersey, and Virginia, respectively. 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. Other Matters On April 16, 2019, we announced that we will restructure our field operations over the next two years to better serve our dealer partners by streamlining our field office structure into three regional locations and investing in new technology. This restructure is expected to be completed in fiscal year 2021 As of April 1, 2020, TMCC began providing private label financial services to third-party automotive and mobility companies commencing with the provision of services to Mazda Motor of America, Inc. (“Mazda”). We currently offer exclusive private label automotive retail, lease, and dealer financing products and services marketed under the brand Mazda Financial Services to Mazda customers and dealers in the United States. TMCC’s agreement with Mazda is for an initial term of approximately five years. We intend to leverage our existing processes and personnel to service the newly originated assets, and we expect to make certain technology investments to support the Mazda program. TMCC will not acquire any existing Mazda assets or liabilities pursuant to the agreement and we do not expect launch costs to be significant through fiscal year 2021. Note 1 – Basis of Presentation and Significant Accounting Policies (Continued) Basis of Presentation and Principles of Consolidation Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Related party transactions presented in the Consolidated Financial Statements are disclosed in Note 12 – Related Party Transactions. 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. 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 accumulated depreciation related to our investments in operating leases and the allowance for credit losses. Significant Accounting Policies Our significant accounting policies are found in the respective Note for which the policy is applicable. Note 1 – Basis of Presentation and Significant Accounting Policies (Continued) Recently Adopted Accounting Guidance On April 1, 2019, we adopted the following new accounting standards: Leases We adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) Refer to Note 4 – Investments in Operating Leases, Net and Note 9 – Commitments and Contingencies for additional information. Other Recently Adopted Standards We adopted ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs We adopted ASU 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities In the second quarter of fiscal 2020, we adopted ASU 2019-07, Codification Updates to Securities and Exchange Commission (“SEC”) Sections Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, “Disclosure Update and Simplification,” and Nos. 33-10231 and 33-10442, “Investment Company Reporting Modernization,” and Miscellaneous Updates Note 1 – Basis of Presentation and Significant Accounting Policies (Continued) Accounting Guidance Issued But Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810) In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Cash and Cash Equivalents and I
Cash and Cash Equivalents and Investments in Marketable Securities | 12 Months Ended |
Mar. 31, 2020 | |
Marketable Securities [Abstract] | |
Cash and Cash Equivalents and Investments in Marketable Securities | Note 2 – Cash and Cash Equivalents and Investments in Marketable Securities Cash and cash equivalents Cash and cash equivalents represent highly liquid investments with maturities of three months or less from the date of acquisition and may include money market instruments, commercial paper, certificates of deposit, U.S. government and agency obligations, or similar instruments. Restricted cash and cash equivalents Restricted cash and cash equivalents include customer collections on securitized receivables to be distributed to investors as payments on the related secured notes and loans payable, which are primarily related to securitization trusts. Restricted cash equivalents may also contain proceeds from certain debt issuances for which the use of the cash is restricted. Investments in marketable securities Investments in marketable securities consist of debt securities and equity investments. Debt securities are designated as available-for-sale (“AFS”) and are recorded at fair value with unrealized gains or losses included in accumulated other comprehensive income (“AOCI”), net of applicable taxes. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. We conduct periodic reviews of AFS debt securities to determine whether the loss is deemed to be other-than-temporary. If an other-than-temporary impairment (“OTTI”) loss is deemed to exist, we first determine whether we have the intent to sell the debt security or if it is more likely than not that we will be required to sell the debt security before recovery of its amortized cost basis. If so, the cost basis of the security is written down to fair value and the loss is reflected in Investment and other income, net in our Consolidated Statements of Income. If we do not have the intent to sell nor is it more likely than not that we will be required to sell, the credit loss component of the OTTI losses is recognized in Investment and other income, net in our Consolidated Statements of Income, while the remainder of the loss is recognized in AOCI. The credit loss component 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. All equity investments are recorded at fair value with changes in fair value included in Investment and other income, net in our Consolidated Statements of Income. Realized gains and losses from sales of equity investments are determined using the first in first out method and are included in Investment and other income, net within our Consolidated Statements of Income. Note 2 – Cash and Cash Equivalents and Investments in Marketable Securities (Continued) Investments in marketable securities consisted of the following: March 31, 2020 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 160 $ 16 $ - $ 176 Municipal debt securities 9 2 - 11 Certificates of deposit 250 - (1 ) 249 Commercial paper 604 - (3 ) 601 Corporate debt securities 188 10 (1 ) 197 Mortgage-backed securities: U.S. government agency 47 2 - 49 Non-agency residential 1 - - 1 Non-agency commercial 47 - (2 ) 45 Asset-backed securities 75 - (3 ) 72 Total available-for-sale debt securities $ 1,381 $ 30 $ (10 ) $ 1,401 Equity investments 2,419 Total investments in marketable securities $ 3,820 March 31, 2019 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 213 $ 2 $ (3 ) $ 212 Municipal debt securities 9 2 - 11 Certificates of deposit 50 - - 50 Commercial paper 70 - - 70 Corporate debt securities 160 3 (1 ) 162 Mortgage-backed securities: U.S. government agency 35 - - 35 Non-agency residential 1 - - 1 Non-agency commercial 39 - - 39 Asset-backed securities 52 1 - 53 Total available-for-sale debt securities $ 629 $ 8 $ (4 ) $ 633 Equity investments 2,275 Total investments in marketable securities $ 2,908 A portion of our equity investments are investments in funds that are privately placed and managed by an open-end investment management company (the “Trust”). If we elect to redeem shares, the Trust will normally redeem all shares for cash, but may, in unusual circumstances, redeem amounts exceeding the lesser of $250 thousand or 1 percent of the Trust’s asset value by payment in kind of securities held by the respective fund during any 90-day period. We also invest in actively traded open-end mutual funds. Redemptions are subject to normal terms and conditions as described in each fund’s prospectus. Note 2 – Cash and Cash Equivalents and Investments in Marketable Securities (Continued) Unrealized Losses on Securities Available-for-sale debt securities in a continuous loss position for less than twelve months and greater than twelve months were not significant as of March 31, 2020 and 2019. Gains and Losses on Securities The following table represents gains and losses on our investments in marketable securities presented in our Consolidated Statements of Income: Years ended March 31, 2020 2019 2018 Available-for-sale debt securities: Realized gains (losses) $ 9 $ (12 ) $ 41 Other-than-temporary impairment $ (8 ) $ - $ - Equity investments: Unrealized gains recognized $ 41 $ 14 Realized gains on sales $ 5 $ - Contractual Maturities The amortized cost and fair value by contractual maturities of available-for-sale debt securities are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations. March 31, 2020 Amortized c Fair value Available-for-sale debt securities: Due within 1 year $ 878 $ 874 Due after 1 year through 5 years 128 132 Due after 5 years through 10 years 115 123 Due after 10 years 90 105 Mortgage-backed and asset-backed securities 1 170 167 Total $ 1,381 $ 1,401 1 |
Finance Receivables, Net
Finance Receivables, Net | 12 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Finance Receivables, Net | Note 3 – Finance Receivables, Net Finance receivables, net consist of the retail loan and the dealer products portfolio segments, which includes accrued interest and deferred fees and costs, net of the allowance for credit losses and deferred income. Finance receivables, net also includes securitized retail receivables, which represent retail receivables that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements, as discussed further in Note 8 – Variable Interest Entities. Cash flows from these securitized retail receivables are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. Finance receivables 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, 2020 and 2019, all finance receivables were classified as held-for-investment. 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 dealers, are capitalized and amortized so as to approximate a constant effective yield over the term of the related contracts. Payments received on subvention and other consumer incentives are deferred and recognized to approximate a constant effective yield over the term of the related contracts. The accrual of revenue is discontinued at the time a retail receivable is determined to be uncollectible. These finance receivables may be restored to accrual status when future payments are reasonably assured. For retail loan finance receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are applied first to outstanding interest and then to the unpaid principal balance. Impaired receivables in the dealer products 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 dealer financing 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 dealer financing receivables is recognized only to the extent it is received in cash. Dealer financing receivables are restored to accrual status only when interest and principal payments are brought current and future payments are reasonably assured. Note 3 – Finance Receivables, Net (Continued) Finance receivables, net consisted of the following: March 31, March 31, 2020 2019 Retail receivables $ 44,414 $ 42,621 Securitized retail receivables 12,674 11,318 Dealer financing 17,873 17,696 74,961 71,635 Deferred origination costs 890 695 Deferred income (1,128 ) (1,314 ) Allowance for credit losses Retail and securitized retail receivables (486 ) (304 ) Dealer financing (241 ) (195 ) Total allowance for credit losses (727 ) (499 ) Finance receivables, net $ 73,996 $ 70,517 Contractual maturities on retail receivables and dealer financing are as follows: Contractual maturities Years ending March 31, Retail receivables Dealer financing 2021 $ 14,437 $ 13,267 2022 13,358 1,476 2023 11,780 876 2024 9,103 676 2025 5,696 454 Thereafter 2,714 1,124 Total $ 57,088 $ 17,873 A 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 3 – Finance Receivables, Net (Continued) Credit Quality Indicators We are exposed to credit risk on our finance receivables. Credit risk is the risk of loss arising from the failure of customers or dealers to meet the terms of their contracts with us or otherwise fail to perform as agreed. Retail Loan Portfolio Segment The retail loan portfolio segment consists of one class of finance receivables. While we use various credit quality metrics to develop our allowance for credit losses on the retail loan portfolio segment, we primarily utilize the aging of the individual accounts to monitor the credit quality of these finance receivables. Based on our experience, the payment status of borrowers is the strongest indicator of the credit quality of the underlying receivables. Payment status also impacts charge-offs. Individual borrower accounts within the retail loan portfolio segment are segregated into aging categories based on the number of days outstanding. The aging for each class of finance receivables is updated monthly. Dealer Products Portfolio Segment The dealer products portfolio segment consists of three classes of finance receivables: 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; and • Default – Account is not currently meeting contractual obligations or we have temporarily waived certain contractual requirements The tables below present each credit quality indicator by class of finance receivables: Retail loan March 31, March 31, 2020 2019 Aging of finance receivables: Current $ 56,064 $ 53,047 30-59 days past due 717 657 60-89 days past due 203 162 90 days or greater past due 104 73 Total $ 57,088 $ 53,939 Note 3 – Finance Receivables, Net (Continued) Wholesale Real estate Working capital March 31, March 31, March 31, March 31, March 31, March 31, 2020 2019 2020 2019 2020 2019 Credit quality indicators: Performing $ 8,750 $ 9,155 $ 3,974 $ 4,019 $ 3,132 $ 2,448 Credit Watch 962 1,127 576 554 195 70 At Risk 92 152 55 84 92 63 Default 22 6 23 14 - 4 Total $ 9,826 $ 10,440 $ 4,628 $ 4,671 $ 3,419 $ 2,585 Past Due Finance Receivables by Class Substantially all finance receivables do not involve recourse to the dealer in the event of customer default. Finance receivables include contracts 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. The following tables summarize the aging of finance receivables by class: March 31, 2020 30 - 59 Days past due 60 - 89 Days past due 90 Days or greater past due Total Past due Current Total Finance receivables 90 Days or greater past due and accruing Retail loan $ 717 $ 203 $ 104 $ 1,024 $ 56,064 $ 57,088 $ 66 Wholesale - - - - 9,826 9,826 - Real estate - - 1 1 4,627 4,628 - Working capital - - - - 3,419 3,419 - Total $ 717 $ 203 $ 105 $ 1,025 $ 73,936 $ 74,961 $ 66 March 31, 2019 30 - 59 Days past due 60 - 89 Days past due 90 Days or greater past due Total Past due Current Total Finance receivables 90 greater p due and accruing Retail loan $ 657 $ 162 $ 73 $ 892 $ 53,047 $ 53,939 $ 47 Wholesale - - 1 1 10,439 10,440 - Real estate - - - - 4,671 4,671 - Working capital - - 4 4 2,581 2,585 - Total $ 657 $ 162 $ 78 $ 897 $ 70,738 $ 71,635 $ 47 Note 3 – Finance Receivables, Net (Continued) 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. The following table summarizes the information related to our impaired loans by class of finance receivables: Impaired Individually evaluated finance receivables allowance March 31, March 31, March 31, March 31, 2020 2019 2020 2019 Impaired account balances individually evaluated for impairment with an allowance: Wholesale $ 104 $ 161 $ 18 $ 28 Real estate 72 93 9 11 Working capital 92 67 38 60 Total $ 268 $ 321 $ 65 $ 99 Impaired account balances individually evaluated for impairment without an allowance: Wholesale $ 93 $ 130 Real estate 148 152 Working capital 19 20 Total $ 260 $ 302 Impaired account balances aggregated and evaluated for impairment: Retail loan $ 253 $ 231 Total impaired account balances: Retail loan $ 253 $ 231 Wholesale 197 291 Real estate 220 245 Working capital 111 87 Total $ 781 $ 854 The primary source of interest income recognized on the loans in the table above is from performing troubled debt restructurings. Interest income on impaired finance receivables and interest income recognized using a cash-basis method of accounting during fiscal 2020 and 2019 were not significant. As of March 31, 2020 and 2019, the impaired finance receivables balance for accounts in the dealer products portfolio segment that were on nonaccrual status was $288 million and $329 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, 2020 and 2019, impaired finance receivables in the retail loan 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 5 – Allowance for Credit Losses for details related to the retail loan portfolio segment’s impaired account balances which are aggregated and evaluated for impairment when determining the allowance for credit losses. Note 3 – Finance Receivables, Net (Continued) Troubled Debt Restructuring 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. For accounts not under bankruptcy protection, the amount of finance receivables modified as a troubled debt restructuring during fiscal 2020 and 2019 was not significant for each class of finance receivables. Troubled debt restructurings for accounts not under bankruptcy protection within the retail loan class of finance receivables are comprised exclusively of contract term extensions that reduce the monthly payment due from the customer. 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 2020 and 2019. We consider finance receivables under bankruptcy protection within the retail loan class 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 2020 and 2019, the financial impact of troubled debt restructurings related to finance receivables under bankruptcy protection was not significant to our Consolidated Statements of Income and Consolidated Balance Sheets. We have offered several programs to provide relief to customers and dealers during the COVID-19 pandemic. These programs, which were broadly available to our customers and dealers, included payment extensions and deferrals. We concluded that these programs did not meet troubled debt restructuring criteria. |
Investments in Operating Leases
Investments in Operating Leases, Net | 12 Months Ended |
Mar. 31, 2020 | |
Leases Operating [Abstract] | |
Investments in Operating Leases, Net | Note 4 – Investments in Operating Leases, Net In conjunction with the April 1, 2019 adoption of ASU 2016-02 as described in Note 1 – Basis of Presentation and Significant Accounting Policies, we updated our accounting policies and disclosures below. Investments in operating leases, net primarily consists of vehicle lease contracts acquired from dealers. Generally, lessees have the ability to extend their lease term in six month increments up to a total of 12 months from the original lease maturity date. A lease can be terminated at any time by satisfying the obligations under the lease contract. Early termination programs may be occasionally offered to eligible lessees. At the end of the lease, the customer has the option to buy the leased vehicle or return the vehicle to the dealer. Securitized investments in operating leases represent beneficial interests in a pool of certain vehicle leases that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements as discussed further in Note 8 - Variable Interest Entities. Cash flows from these securitized investments in operating leases are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. Operating lease revenues are recognized on a straight-line basis over the term of the lease. We have made an accounting policy election to exclude from the consideration in the contract, and from variable payments not included in the consideration in the contract, sales and other taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected from customers. Deferred fees and costs, including incentive payments made to dealers and acquisition fees collected from customers, and payments received on affiliate sponsored subvention and other incentive programs are capitalized or deferred and amortized on a straight-line basis over the contract term. The accrual of revenue on investments in operating leases is discontinued at the time an account is determined to be uncollectible and subsequent revenue is recognized only to the extent a payment is received. Operating leases may be restored to accrual status when future payments are reasonably assured. Vehicle Lease Residual Values Contractual residual values of vehicle lease contracts are estimated at lease inception by examining external industry data, the anticipated Toyota and Lexus product pipeline and our own experience. Factors considered in this evaluation include, macroeconomic forecasts, new vehicle pricing, new vehicle incentive programs, new vehicle sales, vehicle features and specifications, the mix and level of used vehicle supply, the level of current used vehicle values, and fuel prices. We are exposed to a risk of loss to the extent the customer returns the vehicle and the value of the vehicle is lower than the residual value estimated at inception of the lease and if the number of returned vehicles is higher than anticipated. Depreciation on operating leases is recognized using the straight-line method over the lease term. The depreciable basis is the original acquisition cost of the vehicle less the estimated residual value of the vehicle at the end of the lease term. On a quarterly basis, we review the estimated end-of-term market values and return rates of leased vehicles to assess the appropriateness of the carrying values at lease-end. 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. Adjustments to depreciation expense to reflect revised estimates of expected market values at lease termination and revised return rates are recorded prospectively on a straight-line basis over the remaining lease term. We use various channels to sell vehicles returned at lease-end. Upon disposition, the difference between the net book value of the lease and the proceeds received from the disposition of the asset, including any insurance proceeds is recorded as an adjustment to Depreciation on operating leases. We evaluate our investment in operating leases portfolio for potential impairment when we determine a triggering event has occurred. When a triggering event has occurred, we perform a test of 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 of recoverability identifies a possible impairment, the asset group’s fair value is measured in accordance with the fair value measurement framework. An impairment charge would be recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value and would be recorded in our Consolidated Statements of Income. As of March 31, 2020 and 2019, there was no impairment in our investment in operating leases portfolio. Note 4 – Investments in Operating Leases, Net (Continued) Investments in operating leases, net consisted of the following: March 31, March 31, 2020 2019 Investments in operating leases $ 40,698 $ 42,869 Securitized investments in operating leases 7,940 7,532 48,638 50,401 Deferred origination (fees) and costs, net (223 ) (225 ) Deferred income (1,962 ) (2,085 ) Accumulated depreciation (9,976 ) (10,061 ) Allowance for credit losses (90 ) (103 ) Investments in operating leases, net $ 36,387 $ 37,927 Future minimum rentals on investments in operating leases are as follows: Years ending March 31, Future minimum rentals on operating leases 2021 $ 5,981 2022 3,772 2023 1,339 2024 106 2025 5 Thereafter - Total $ 11,203 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. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Mar. 31, 2020 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses | Note 5 – Allowance for Credit Losses We maintain an allowance for credit losses to cover probable and estimable losses incurred 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. Management develops and documents the allowance for credit losses on finance receivables based on two 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, as follows: • Retail Loan Portfolio Segment – The retail loan portfolio segment consists of retail contracts acquired from dealers in the U.S. and Puerto Rico. Under a retail contract, we are granted a security interest in the underlying collateral which consists primarily of Toyota and 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. • 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. Working capital loans and revolving lines of credit are granted for working capital purposes and are secured by dealership assets. 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. Based on the risk characteristics associated with the underlying finance receivables, the dealer products portfolio segment consists of three classes of finance receivables: wholesale, working capital (including revolving lines of credit), and real estate. 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. 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 collection strategies and practices. 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 and Lexus 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. This process, along with management judgment, is used to establish the allowance for credit losses to cover probable and estimable losses incurred as of the balance sheet date. 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. We apply judgment in estimating the loss emergence period using available credit information and trends. Note 5 – Allowance for Credit Losses (Continued) 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. 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 loss event is estimated to have occurred and the ultimate realization of that loss 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. We apply judgment in estimating the loss emergence period using available credit information and trends. This process, along with management judgment, is used to establish the allowance for credit losses to cover probable and estimable losses incurred as of the balance sheet date. 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 and investments in operating leases which are collectively evaluated for impairment. The remainder of the allowance for credit losses covers the estimated losses on the dealer products 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. Increases to the allowance for credit losses are accompanied by corresponding charges to the Provision for credit losses on our Consolidated Statements 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 our Consolidated Balance Sheets. Recoveries of finance receivables and investments in operating leases previously charged off as uncollectible are credited to the 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, 2020 2019 Allowance for credit losses at beginning of period $ 602 $ 597 Charge-offs (470 ) (464 ) Recoveries 95 97 Provision for credit losses 590 372 Allowance for credit losses at end of period $ 817 $ 602 During the fourth quarter of 2020, the broader economy experienced a significant deterioration in the macroeconomic environment driven by the COVID-19 pandemic, which resulted in a $264 million of additional provision for credit losses. Note 5 – Allowance for Credit Losses (Continued) Allowance for Credit Losses and Finance Receivables by Portfolio Segment The following tables provide information related to our allowance for credit losses for finance receivables and finance receivables by portfolio segment: Year ended March 31, 2020 Allowance for Credit Losses for Finance Receivables: Retail loan Dealer p Total Beginning balance, April 1, 2019 $ 304 $ 195 $ 499 Charge-offs (358 ) (12 ) (370 ) Recoveries 50 - 50 Provision for credit losses 490 58 548 Ending balance, March 31, 2020 $ 486 $ 241 $ 727 Ending balance: Individually evaluated for impairment $ - $ 65 $ 65 Ending balance: Collectively evaluated for impairment $ 486 $ 176 $ 662 Finance Receivables: Ending balance, March 31, 2020 $ 57,088 $ 17,873 $ 74,961 Ending balance: Individually evaluated for impairment $ - $ 528 $ 528 Ending balance: Collectively evaluated for impairment $ 57,088 $ 17,345 $ 74,433 The ending balance of finance receivables collectively evaluated for impairment in the above table includes approximately $253 million of finance receivables within the retail loan portfolio segment that are specifically identified as impaired. These amounts are aggregated within their respective portfolio segment when determining the allowance for credit losses as of March 31, 2020, 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, 2020 includes $1,047 million in finance receivables that are guaranteed by Toyota Motor North America, Inc. (“TMNA”) and $140 million in finance receivables that are guaranteed by third party private Toyota distributors. These finance receivables are related to certain Toyota and Lexus dealers and other third parties to whom we provided financing at the request of TMNA and third party private Toyota distributors. Note 5 – Allowance for Credit Losses (Continued) Year ended March 31, 2019 Allowance for Credit Losses for Finance Receivables: Retail loan Dealer p Total Beginning balance, April 1, 2018 $ 312 $ 151 $ 463 Charge-offs (330 ) - (330 ) Recoveries 50 - 50 Provision for credit losses 272 44 316 Ending balance, March 31, 2019 $ 304 $ 195 $ 499 Ending balance: Individually evaluated for impairment $ - $ 99 $ 99 Ending balance: Collectively evaluated for impairment $ 304 $ 96 $ 400 Finance Receivables: Ending balance, March 31, 2019 $ 53,939 $ 17,696 $ 71,635 Ending balance: Individually evaluated for impairment $ - $ 623 $ 623 Ending balance: Collectively evaluated for impairment $ 53,939 $ 17,073 $ 71,012 The ending balance of finance receivables collectively evaluated for impairment in the above table includes approximately $231 million of finance receivables within the retail loan portfolio segment that are specifically identified as impaired. These amounts are aggregated within their respective portfolio segment when determining the allowance for credit losses as of March 31, 2019, 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, 2019 includes $1,091 million in finance receivables that are guaranteed by TMNA and $132 million in finance receivables that are guaranteed by third party private Toyota distributors. These finance receivables are related to certain Toyota and Lexus dealers and other third parties to whom we provided financing at the request of TMNA and third party private Toyota distributors. |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Interest Expense | 12 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Activities and Interest Expense | Note 6 – Derivatives, Hedging Activities and Interest Expense Derivative Instruments Our liabilities consist mainly of fixed and variable rate debt, denominated in U.S. dollars and various other currencies, which we issue in the global capital markets, while our assets consist primarily of U.S. dollar denominated, fixed rate receivables. We enter into interest rate swaps, interest rate floors, and foreign currency swaps to economically hedge the interest rate and foreign currency risks that result from the different characteristics of our assets and liabilities. Our use of derivative transactions is intended to reduce long-term fluctuations in the fair value of assets and liabilities caused by market movements. All of our 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. 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. As of September 30, 2018, we no longer have any hedge accounting derivatives. All derivative instruments are recorded on the balance sheet at fair value, taking into consideration the effects of legally enforceable master netting agreements that allow us to net settle asset and liability positions and offset cash collateral with the same counterparty on a net basis. Changes in the fair value of our derivative instruments are recognized as a component of Interest expense in our Consolidated Statements of Income. The derivative instruments are included as a component of Other assets or Other liabilities in our Consolidated Balance Sheets. Offsetting of Derivatives The accounting guidance permits the net presentation on our Consolidated Balance Sheets of derivative receivables and derivative payables with the same counterparty and the related cash collateral when a legally enforceable master netting agreement exists. When we meet this condition, we elect to present such balances on a net basis. Our International Swaps and Derivatives Association (“ISDA”) Master Agreements are our master netting agreements which permit multiple transactions to be cancelled and settled with a single net balance paid to either party. The master netting agreements also contain reciprocal collateral agreements which require the transfer of cash collateral to the party in a net asset position across all transactions. Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization arrangement. Although we have daily valuation and collateral exchange arrangements with all of our counterparties, due to the time required to move collateral, there may be a delay of up to one day between the exchange of collateral and the valuation of our derivatives. We would not be required to post additional collateral to the counterparties with whom we were in a net liability position at March 31, 2020, if our credit ratings were to decline, since we fully collateralize without regard to credit ratings with these counterparties. In addition, as our collateral agreements include legal right of offset provisions, collateral amounts are netted against derivative assets or derivative liabilities, the net amount of which is included in Other assets or Other liabilities in our Consolidated Balance Sheets. Note 6 – 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 our Consolidated Balance Sheets: March 31, 2020 March 31, 2019 Fair Fair Notional value Notional value Other assets: Interest rate swaps $ 30,362 $ 1,410 $ 49,254 $ 472 Foreign currency swaps 488 27 2,771 72 Total $ 30,850 $ 1,437 $ 52,025 $ 544 Counterparty netting (966 ) (441 ) Collateral held (420 ) (42 ) Carrying value of derivative contracts – Other assets $ 51 $ 61 Other liabilities: Interest rate swaps $ 69,079 $ 1,826 $ 57,593 $ 622 Foreign currency swaps 13,181 1,290 9,796 785 Total $ 82,260 $ 3,116 $ 67,389 $ 1,407 Counterparty netting (966 ) (441 ) Collateral posted (2,105 ) (940 ) Carrying value of derivative contracts – Other liabilities $ 45 $ 26 As of March 31, 2020 and 2019, we held excess collateral of $10 million and $2 million, respectively, which we did not use to offset derivative assets and was recorded in Other liabilities in our Consolidated Balance Sheets. As of March 31, 2020 and 2019, we posted excess collateral of $1 million and $17 million, respectively, which we did not use to offset derivative liabilities and was recorded in Other assets in our Consolidated Balance Sheets. Note 6 – 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 Statements of Income: Years ended March 31, 2020 2019 2018 Interest expense on debt $ 2,488 $ 2,559 $ 1,970 Interest expense (income) on derivatives 180 (53 ) (67 ) Interest expense on debt and derivatives 2,668 2,506 1,903 (Gains) losses on debt denominated in foreign currencies (703 ) (1,078 ) 1,344 Losses (gains) on foreign currency swaps 650 1,015 (1,306 ) Losses (gains) on U.S. dollar interest rate swaps 219 304 (90 ) Total interest expense $ 2,834 $ 2,747 $ 1,851 Interest expense on debt and derivatives represents net interest settlements and changes in accruals. Gains and losses on derivatives and debt denominated in foreign currencies exclude net interest settlements and changes in accruals. Cash flows associated with derivatives are reported in Net cash provided by operating activities in our Consolidated Statements of Cash Flows. |
Debt and Credit Facilities
Debt and Credit Facilities | 12 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Note 7 – Debt and Credit Facilities Debt and the related weighted average contractual interest rates are summarized as follows: March 31, 2020 March 31, 2019 Face value Carrying value Weighted average contractual interest rates Face value Carrying value Weighted average contractual interest rates Unsecured notes and loans payable $ 83,477 $ 83,172 2.07 % $ 80,875 $ 80,521 2.60 % Secured notes and loans payable 14,597 14,568 2.13 % 12,421 12,401 2.62 % Total debt $ 98,074 $ 97,740 2.08 % $ 93,296 $ 92,922 2.60 % The carrying value of our debt includes unamortized premiums, discounts, debt issuance costs and the effects of foreign currency translation adjustments. Debt issuance costs are deferred and amortized to interest expense on an effective yield basis over the contractual term of the debt. Weighted average contractual interest rates are calculated based on original notional or par value before consideration of premium or discount and approximate the effective interest rates. Debt is callable at par value. 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 2021 $ 51,489 2022 19,170 2023 11,942 2024 3,973 2025 5,012 Thereafter 1 6,488 Unamortized premiums, discounts and debt issuance costs (334 ) Total debt $ 97,740 1 Unsecured and secured notes and loans payable mature on various dates through fiscal 2049. Unsecured notes and loans payable Our unsecured notes and loans payable consist of commercial paper and fixed and variable rate debt. Short-term funding needs are met through the issuance of commercial paper in the U.S. Amounts outstanding under our commercial paper programs were $27.0 billion and $25.3 billion as of March 31, 2020 and 2019, respectively. Upon issuance of fixed rate debt, we generally elect to enter into pay-float swaps to convert fixed rate payments on debt to floating rate payments. Certain unsecured notes and loans payable are denominated in various foreign currencies. The debt is translated into U.S. dollars using the applicable exchange rate at the transaction date and retranslated at each balance sheet date using the exchange rate in effect at that date. Concurrent with the issuance of these foreign currency unsecured notes and loans payable, we enter into currency swaps in the same notional amount to convert non-U.S. currency payments to U.S. dollar denominated payments. Gains and losses related to foreign currency transactions are included in Interest expense in our Consolidated Statements of Income. Certain of our unsecured notes and loans payable contain covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets. We are currently in compliance with these covenants and conditions. Note 7 – Debt and Credit Facilities (Continued) Secured notes and loans payable Our secured notes and loans payable are denominated in U.S. dollars and consist of both fixed and variable rate debt. Secured notes and loans payable are issued using on-balance sheet securitization trusts, as further discussed in Note 8 – Variable Interest Entities. These notes are repayable only from collections on the underlying securitized retail finance receivables and the beneficial interests in investments in operating leases and from related credit enhancements. In June 2019, we completed an offering of secured notes under a new revolving asset-backed securitization program, backed by a revolving pool of finance receivables and cash collateral. Cash flows from these receivables during the revolving period in excess of what is needed to pay certain expenses of the securitization trust and contractual interest payments on the related secured notes may be used to purchase additional receivables, provided that certain conditions are met following the purchase. The secured notes feature a scheduled five year revolving period, with the ability to repay the secured notes in full, after which an amortization period begins. The revolving period may also end with the amortization period beginning upon the occurrence of certain events that include certain segregated account balances falling below their required levels, credit losses or delinquencies on the pool of assets supporting the notes exceeding specified levels, the adjusted pool balance falling to less than 50% of the initial principal amount of the secured notes, or interest not being paid on the secured notes. Credit Facilities and Letters of Credit For additional liquidity purposes, we maintain credit facilities as described below: 364 Day Credit Agreement, Three Year Credit Agreement and Five Year Credit Agreement In November 2019, TMCC, Toyota Credit de Puerto Rico Corp. (“TCPR”) and other Toyota affiliates re-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 2021, 2023, and 2025, 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 sale of assets. These agreements may be used for general corporate purposes and none were drawn upon as of March 31, 2020 and 2019. 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, 2020, TMCC had committed bank credit facilities totaling $4.6 billion, of which, $2.5 billion and $2.1 billion mature in fiscal 2021 and 2023, 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, 2020 or 2019. We are currently in compliance with the covenants and conditions of the credit agreements described above. TMCC is party to a $5.0 billion three year revolving credit facility with TMS expiring in fiscal 2022. This credit facility was drawn upon as of March 31, 2020 for a principal amount of $3.0 billion with an interest rate of 1.86%, maturing on September 30, 2020. The amount is recorded in Other liabilities on our Consolidated Balance Sheet and will be used for general corporate purposes. From time to time, we may borrow from affiliates based upon a number of business factors such as funds availability, cash flow timing, relative cost of funds, and market access capabilities. Amounts borrowed from affiliates are recorded in Other liabilities on our Consolidated Balance Sheets. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Mar. 31, 2020 | |
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract] | |
Variable Interest Entities | Note 8 – 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 the 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. 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 Consolidated Balance Sheets: March 31, 2020 VIE Assets VIE Liabilities Net Restricted cash securitized assets Other assets Debt Other liabilities Retail finance receivables $ 694 $ 12,375 $ 5 $ 10,933 $ 10 Investments in operating leases 302 5,586 126 3,635 2 Total $ 996 $ 17,961 $ 131 $ 14,568 $ 12 March 31, 2019 VIE Assets VIE Liabilities Net Restricted cash securitized assets Other assets Debt Other liabilities Retail finance receivables $ 630 $ 11,075 $ 6 $ 9,202 $ 10 Investments in operating leases 355 5,307 186 3,199 2 Total $ 985 $ 16,382 $ 192 $ 12,401 $ 12 Note 8 – Variable Interest Entities (Continued) Restricted Cash, including cash equivalents, shown in the previous table represents collections from the underlying Net Securitized Assets shown in the previous table and certain reserve deposits held by TMCC for the VIEs and is included as part of Restricted cash and cash equivalents on our Consolidated Balance Sheets. Net Securitized Assets shown in the previous table 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 $1,182 million and $1,486 million of securities retained by TMCC at March 31, 2020 and 2019, respectively. Other Liabilities represents accrued interest on the debt of the consolidated VIEs. The assets of the VIEs and the restricted cash and cash equivalents held by TMCC serve as the sole source of repayment for the asset-backed securities issued by these entities. Investors in the notes issued by the VIEs do not have recourse to us or our other assets, with the exception of customary representation and warranty repurchase provisions and indemnities. As the primary beneficiary of these entities, we are exposed to credit, residual value, interest rate, and prepayment risk from the Securitized Assets in the VIEs. However, our exposure to these risks did not change as a result of the transfer of the assets to the VIEs. We may also be exposed to interest rate risk arising from the secured notes issued by the VIEs. In addition, we entered into interest rate swaps with certain special purpose entities that issue variable rate debt. Under the terms of these swaps, the special purpose entities are obligated to pay TMCC a fixed rate of interest on certain payment dates in exchange for receiving a floating rate of interest on notional amounts equal to the outstanding balance of the secured debt. This arrangement enables the special purpose entities to mitigate the interest rate risk inherent in issuing variable rate debt that is secured by fixed rate Securitized Assets. The transfers of the Securitized Assets to the special purpose entities in our securitizations are considered to be sales for legal purposes. However, the Securitized Assets and the related debt remain on our Consolidated Balance Sheets. We recognize financing revenue on the Securitized Assets and interest expense on the secured debt issued by the special purpose entities. We also maintain an allowance for credit losses on the Securitized 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, TMNA, 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. Amounts due from these dealers under the TDIG Program that are classified as Finance receivables, net in our Consolidated Balance Sheets at March 31, 2020 and 2019 and revenues earned from these dealers during fiscal 2020, 2019 and 2018 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 and revenues earned under these relationships as of March 31, 2020 and 2019 were not significant. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – Commitments and Contingencies Commitments and Guarantees We have entered into certain commitments and guarantees for which the maximum unfunded amounts are summarized in the table below: March 31, March 31, 2020 2019 Commitments: Credit facilities commitments with dealers $ 1,226 $ 1,378 Commitments under operating lease agreements 139 144 Total commitments 1,365 1,522 Guarantees of affiliate pollution control and solid waste disposal bonds 100 100 Total commitments and guarantees $ 1,465 $ 1,622 Wholesale financing is not considered to be a contractual commitment as the arrangements are not binding arrangements under which TMCC is required to perform. Commitments We provide fixed and variable rate working capital loans, revolving lines of credit, and real estate financing to dealers and various multi-franchise organizations referred to as dealer groups for facilities construction and refurbishment, working capital requirements, real estate purchases, business acquisitions and other general business purposes. These loans are typically secured with liens on real estate, vehicle inventory, and/or other dealership assets, as appropriate, and may be guaranteed by individual or corporate guarantees of affiliated dealers, dealer groups, or dealer principals. Although the loans are typically collateralized or guaranteed, the value of the underlying collateral or guarantees may not be sufficient to cover our exposure under such agreements. Our pricing reflects market conditions, the competitive environment, the level of support dealers provide our retail, lease and insurance business and the creditworthiness of each dealer. Amounts drawn under these facilities are reviewed for collectability on a quarterly basis, in conjunction with our evaluation of the allowance for credit losses. We have also extended credit facilities to affiliates as described in Note 12 – Related Party Transactions. Lease Commitments Our operating lease portfolio consists of real estate leases. Total operating lease expense, including payments to affiliates, was $36 million for fiscal 2020 and $30 million for both fiscal 2019 and fiscal 2018. We have a lease agreement through August 2032 with TMNA for our headquarters facility in Plano, Texas. Commitments under operating lease agreements in the table above include $102 million and $97 million for facilities leases with affiliates at March 31, 2020 and 2019, respectively. Lease terms may contain renewal and extension options or early termination features. Generally, these options do not impact the lease term because TMCC is not reasonably certain that it will exercise the options. These lease agreements do not impose restrictions on our ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements, nor do they have residual value guarantees. We exclude from our Consolidated Balance Sheets leases with a term equal to one year or less and do not separate non-lease components from our real estate leases. Note 9 – Commitments and Contingencies (Continued) Our commitments under operating lease agreements are summarized below: Years ending March 31, Amounts due on operating lease liabilities as of March 31, 2020 2021 $ 21 2022 23 2023 15 2024 12 2025 10 Thereafter 58 Total $ 139 Present value discount (19 ) Total operating lease liability $ 120 Years ending March 31, Future minimum lease payments as of March 31, 2019 2020 $ 22 2021 19 2022 20 2023 12 2024 10 Thereafter 61 Total $ 144 Operating lease liabilities and ROU assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. As the interest rate implicit in the lease contract is typically not readily determinable, we utilize our incremental borrowing rate at the lease commencement date for the duration of the lease term. The following table provides additional information related to operating lease agreements for which we are the lessee: March 31, 2020 ROU assets $ 114 Lease liabilities $ 120 Weighted average remaining lease term (in years) 9.29 Weighted average discount rate 3.05% Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 23 Supplemental non-cash information ROU assets obtained in exchange for operating lease obligations $ 17 Note 9 – Commitments and Contingencies (Continued) Guarantees and Other Contingencies TMCC has guaranteed bond obligations totaling $100 million in principal that were issued by Putnam County, West Virginia and Gibson County, Indiana to finance the construction of pollution control facilities at manufacturing plants of certain TMCC affiliates. The bonds mature in the following fiscal years ending March 31: 2028 - $20 million; 2029 - $50 million; 2030 - $10 million; 2031 - $10 million; and 2032 - $10 million. TMCC would be required to perform under the guarantees in the event of non-payment on the bonds and other related obligations. TMCC is entitled to reimbursement by the applicable affiliates for any amounts paid. TMCC receives a nominal annual fee for guaranteeing such payments. TMCC has not been required to perform under any of these affiliate bond guarantees as of March 31, 2020 and 2019. 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, 2020, we determined that it is not probable that we will be required to make any material payments in the future. As of March 31, 2020 and 2019, 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. In addition, we are subject to governmental and regulatory examinations, information-gathering requests, and investigations from time to time at the state and federal levels. It is inherently difficult to predict the course of such legal actions and governmental inquiries. We perform periodic reviews of pending claims and actions to determine the probability of adverse verdicts and resulting amounts of liability. We establish accruals for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. When we are able, we also determine estimates of reasonably probable loss or range of loss, whether in excess of any related accrued liability or where there is no accrued liability. Given the inherent uncertainty associated with legal matters, the actual costs of resolving legal claims and associated costs of defense may be substantially higher or lower than the amounts for which accruals have been established. Based on available information and established accruals, we do not believe it is reasonably probable that the results of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial condition or results of operations. |
Pension and Other Benefits Plan
Pension and Other Benefits Plans | 12 Months Ended |
Mar. 31, 2020 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Pension and Other Benefits | Note 10 – Pension and Other Benefit Plans We are a participating employer in certain retirement and post-retirement medical care, life insurance, and other benefits sponsored by TMNA, an affiliate. Costs of each plan are generally allocated to TMCC based on relative benefit 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 Plan (the “Pension Plan”) the 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. Costs allocated to TMCC for our employees in the Pension Plan and certain other non-qualified plans were not significant for fiscal 2020, 2019 and 2018. Defined Contribution Plan Employees meeting certain eligibility requirements, as defined in the plan documents, may participate in the Toyota Motor North America, Inc. Retirement TMCC employer contributions to the savings plan were not significant for fiscal 2020, 2019 and 2018. Other Post-Retirement Benefit Plans Employees are generally eligible to participate in other post-retirement benefits sponsored by TMNA which provide certain medical care and life insurance benefits to eligible retired employees. Generally, in order to be eligible for these benefits, the employee must be age 55 or older with 10 or more years of service. Other post-retirement benefit costs allocated to TMCC were not significant for fiscal 2020, 2019 and 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 – 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 TFSIC and its subsidiaries. Current and deferred federal income taxes are allocated to TMCC as if it were a separate taxpayer. TMCC’s net operating losses and tax credits are utilized when those losses and credits are used by TFSIC and its subsidiaries including TMCC in the consolidated federal income tax return. TMCC files either separate or consolidated/combined state income tax returns with TMNA, TFSIC, 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, TFSIC 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 and credits utilized in the federal and state income tax returns. The provision (benefit) for income taxes consisted of the following: Years ended March 31, 2020 2019 2018 Current Federal $ (19 ) $ (55 ) $ (45 ) State 120 76 (10 ) Foreign 8 4 3 Total 109 25 (52 ) Deferred Federal 145 207 (2,625 ) State (141 ) (49 ) 48 Foreign (2 ) (1 ) - Total 2 157 (2,577 ) Provision (benefit) for income taxes $ 111 $ 182 $ (2,629 ) A reconciliation between the U.S. federal statutory tax rate and the effective tax rate is as follows: Years ended March 31, 2020 2019 2018 Provision for income taxes at U.S. federal statutory tax rate 21.0 % 21.0 % 31.6 % State and local taxes (net of federal tax benefit) 4.0 % 4.6 % 4.8 % Effect of state tax law changes (3.9 )% (1.3 )% (0.1 )% Federal tax credits (3.7 )% (1.0 )% (1.1 )% Tax rate differential from tax loss carryback (5.6 )% (2.8 )% - Adjustment for prior year provision to return differences (1.0 )% (1.4 )% 0.4 % Revaluation of federal deferred tax liability from TCJA - - (371.6 )% Other, net - (0.5 )% (0.6 )% Effective tax rate 10.8 % 18.6 % (336.6 )% The amounts in Federal tax credits include tax benefits from alternative fuel vehicle credits and foreign tax credits for fiscal 2020, and plug-in vehicle credits and research and development credits for fiscal 2020, 2019, and 2018. Note 11 – Income Taxes (Continued) During fiscal 2018, the TCJA reduced the corporate income tax rate from 35% to 21%. As a result, our federal statutory rate for fiscal 2018 was a blended rate of 31.6% and we recorded a $2.9 billion income tax benefit from the revaluation of our net deferred tax liabilities. We completed our assessment of the impact of the TCJA within twelve months from its enactment date, and such impact has been reflected in our Consolidated Financial Statements as of and for the year ended March 31, 2019. Our net deferred income tax liability consisted of the following deferred tax liabilities and assets: March 31, 2020 2019 Liabilities: Lease transactions $ 5,180 $ 7,121 State taxes, net of federal tax benefit 629 847 Insurance dealer commissions 254 235 Mark-to-market of investments in marketable securities and derivatives 14 44 Other 83 53 Deferred tax liabilities $ 6,160 $ 8,300 Assets: Provision for credit and residual value losses 370 361 Deferred costs and fees 188 192 Net operating loss and tax credit carryforwards 100 2,297 Lease obligations 25 - Other 32 22 Deferred tax assets 715 2,872 Valuation allowance (13 ) (24 ) Net deferred tax assets $ 702 $ 2,848 Net deferred income tax liability 1 $ 5,458 $ 5,452 1 We have deferred tax assets related to cumulative state net operating loss carry forwards of $37 million at March 31, 2020, compared to $2.1 billion in federal net operating loss deferred tax assets and $147 million in state net operating loss deferred tax assets at March 31, 2019, respectively. We have no deferred tax assets related to cumulative federal net operating loss carry forwards at March 31, 2020. Some state net operating loss carryforwards have no expiration while others expire beginning in fiscal 2022. We have deferred tax assets related to federal tax credits for alternative fuel vehicles and plug-in vehicles, research and development, and foreign tax of $52 million, $10 million, $1 million, at March 31, 2020, respectively. This is compared to deferred tax assets related to federal tax credits for plug-in vehicles, research and development, foreign tax, and alternative minimum tax of $38 million, $14 million, $3 million, and $12 million at March 31, 2019, respectively. The federal tax credit carryforwards will expire beginning in fiscal 2028. The deferred tax assets related to foreign tax credit and state tax net operating loss carryforwards are reduced by a valuation allowance of $13 million and $24 million at March 31, 2020 and March 31, 2019, respectively. 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. The amount of the deferred tax assets considered realizable could be reduced if management’s estimates change. Note 11 – Income Taxes (Continued) We have made an assertion of permanent reinvestment of earnings from our foreign subsidiary; as a result, other than the deemed repatriation tax that is provided pursuant to the TCJA, state and local taxes have not been provided for unremitted earnings of our foreign subsidiary. At March 31, 2020 and 2019, these unremitted earnings totaled $243 million and $233 million, respectively. Determination of the amount of the deferred state and local tax liability is not practicable, and accordingly no estimate of the unrecorded deferred state and local tax liability is provided. Although we do not foresee any 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, 2020, we had an income tax payable of $47 million for our share of the income tax in those states where we filed consolidated or combined returns with TMNA and its subsidiaries. Our share of the income tax payable or receivable in those states where we filed consolidated or combined returns with TMNA and its subsidiaries was not significant at March 31, 2019. Additionally, our federal and state income tax payable or receivable from TMCC affiliated companies, including TFSIC, TFSB, and Toyota Financial Services Securities USA Corporation, was not significant for both March 31, 2020 and 2019. 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, 2020 2019 2018 Balance at beginning of the year $ 7 $ 6 $ 6 Increases related to positions taken during the current year 12 1 - Balance at end of year $ 19 $ 7 $ 6 At March 31, 2020, 2019 and 2018 approximately $17 million, $6 million and $6 million of the respective unrecognized tax benefits would, if recognized, have an effect on the effective tax rate. The remaining amounts in the respective unrecognized tax benefits at March 31, 2020, 2019 and 2018 are related to timing matters. During fiscal 2020, $11 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 2020, 2019, and 2018, accrued interest was not significant and no penalties were accrued. Tax-related Contingencies As of March 31, 2020, we remained under IRS examination for fiscal 2020, fiscal 2019, and fiscal 2018. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12 – Related Party Transactions The tables below show the financial statement line items and amounts included in our Consolidated Statements of Income and in our Consolidated Balance Sheets under various related party agreements or relationships: Years ended March 31, 2020 2019 2018 Net financing revenues: Manufacturer's subvention and other revenues $ 2,065 $ 1,930 $ 1,590 Depreciation on operating leases $ (59 ) $ (24 ) $ (12 ) Interest expense: Credit support fees, interest and other expenses $ 96 $ 96 $ 95 Insurance earned premiums and contract revenues: Insurance premiums and contract revenues $ 181 $ 181 $ 182 Investment and other income, net: Interest and other income $ 26 $ 16 $ 13 Expenses: Operating and administrative expenses $ 102 $ 95 $ 80 Insurance losses and loss adjustment expenses 1 $ - $ (3 ) $ (3 ) 1 Amount includes the transfer of insurance losses and loss adjustment expenses under a reinsurance contract. Note 12 – Related Party Transactions (Continued) March 31, March 31, 2020 2019 Assets: Cash and cash equivalents Commercial paper $ 276 $ - Investments in marketable securities Commercial paper $ 601 $ 70 Finance receivables, net Accounts receivable $ 112 $ 150 Deferred retail subvention income $ (1,065 ) $ (1,257 ) Investments in operating leases, net Investments in operating leases, net $ (100 ) $ 1 Deferred lease subvention income $ (1,941 ) $ (2,062 ) Other assets Notes receivable $ 1,175 $ 601 Other receivables, net $ 97 $ 11 Liabilities: Other liabilities Unearned affiliate insurance premiums and contract revenues $ 344 $ 337 Other payables, net $ 220 $ 147 Notes payable $ 3,032 $ 16 TMCC receives subvention payments from TMNA which results in a gross monthly subvention receivable. As of March 31, 2020 and 2019, the subvention receivable from TMNA was $113 million and $171 million, respectively. We have a master netting agreement with TMNA which allows us to net settle payments for shared services and subvention transactions. Under this agreement, as of March 31, 2020 and March 31, 2019, respectively, we had a net amount payable to TMNA which is recorded in Other payables, net in Other liabilities. Note 12 – 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 with 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. 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 support from and provides financing support to TFSC and other affiliates in the form of promissory notes and various loan and credit facility agreements. As of March 31, 2020 and 2019, total financing support available from affiliates totaled approximately $8.4 billion and $8.5 billion, respectively. As of March 31, 2020 and 2019, total financing support available to affiliates totaled approximately $6.8 billion and $5.4 billion, respectively. These amounts include TMCC’s increased financing support provided to Toyota Financial Services Mexico, S.A. de C.V. of $1.5 billion in May 2019. The amounts outstanding under these agreements are recorded in Other assets and Other liabilities in our Consolidated Balance Sheets at March 31, 2020 and 2019. In March 2020, we drew upon our revolving credit facility with TMS for a principal amount of $3.0 billion with an interest rate of 1.86%, maturing on September 30, 2020. The amount is recorded in Other liabilities on our Consolidated Balance Sheet and will be used for general corporate purposes. Other Financing Support Provided to Affiliates 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 subvention and other cash incentive programs. 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 9 – 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. At March 31, 2020 and 2019, we had $22 million and $23 million, respectively, in loan participations outstanding that had been purchased by TMCC under this agreement. Note 12 – Related Party Transactions (Continued) Shared Service Arrangements with Affiliates TMCC is subject to the following shared service agreements: • TMCC incurs costs under various shared service agreements with TMNA and other affiliates. Services provided by affiliates under the shared service agreements include certain technological and administrative services, such as information systems support, facilities, insurance coverage, human resources and other corporate services. TMCC may also participate and incur costs in shared marketing efforts with TMNA. • TMCC provides various services to its subsidiaries and affiliates, including certain administrative and corporate services, operational support, information systems support, facilities, treasury, and vendor management services. • 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 party to a master netting agreement with TFSB, which allows TMCC to net settle payments for shared services between TMCC and TFSB. • 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. Note 12 – 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 TMNA and Toyota de Puerto Rico Corp. • TMCC is party to a lease agreement with TMNA for our headquarters facility in Plano, Texas, expiring in 2032, our Customer Service Center located in Cedar Rapids, Iowa, expiring in 2029, and our Dallas Data Center expiring in 2026. The lease commitments are described in Note 9 – Commitments and Contingencies. • In conjunction with the April 1, 2019 adoption of ASU 2016-02, Leases, • Subvention receivable represents amounts due from TMNA and other affiliates in support of retail and lease subvention and other cash incentive programs offered by TMCC. Deferred subvention income represents the unearned portion of amounts received from these transactions, and manufacturers’ subvention and other revenues primarily represent the earned portion of such amounts. • Investment in operating leases includes contractual residual value support received from affiliates which are recognized as an offset to depreciation expense over the life of the contract. • TMCC is a participating employer in certain retirement, post-retirement medical care and life insurance benefits sponsored by TMNA. Refer to Note 10 – Pension and Other Benefit Plans for additional information. • TMCC is party to agreements with TMNA and other affiliates relating to the team member vehicle benefit program, which allows team members to lease Toyota and Lexus vehicles on terms exclusive to the benefit program. TMNA serves as the chief administrator of the program. TMCC acquires and services team member leases entered into after the third quarter of fiscal 2018. A portion of the vehicles used for the team member vehicle benefit program are acquired from TMNA. TMCC receives a per vehicle contribution from participating affiliates to assist with the costs of its contribution to the benefit program, and TMCC pays a per vehicle participation fee to TMNA to participate in the benefit program. • Affiliate insurance premiums and contract revenues primarily represent revenues from TMIS for coverage and related administrative services provided to TMNA and affiliates. This includes contractual indemnity coverage for limited warranties on certified Toyota and Lexus pre-owned vehicles and related administrative services for TMNA’s certified pre-owned vehicle program and umbrella liability policy. TMIS provides umbrella liability insurance to TMNA 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 a reinsurer. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13 – 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. In order to determine fair value of our assets and liabilities, we use quoted prices for identical or similar instruments, otherwise we utilize valuation models with observable or calculated inputs. The use of observable quotes for identical or similar instruments and the use of unobservable inputs is reflected in the fair value hierarchy assessment disclosed in the tables within this Note as Level 1, 2 and 3 defined below. 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 a 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. 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. 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. Recurring Fair Value Measurements Cash Equivalents and Restricted Cash Equivalents The fair value of cash equivalents and restricted cash equivalents approximates the carrying value and these instruments are classified as Level 1 within the fair value hierarchy. Investments in marketable securities We estimate the value of our AFS debt securities using observed transaction prices, independent third-party pricing valuation vendors, and internal valuation models. We may hold investments in actively traded open-end and private placement equity investments. Where the equity investments produce a daily net asset value that is quoted in an active market, we use this value to determine the fair value of the equity investment and classify the investment as Level 1 within the fair value hierarchy. The fair value of equity investments that produce a daily net asset value that is not quoted in an active market is estimated using the net asset value per share (or its equivalent) as practical expedient and are excluded from leveling in the fair value hierarchy. In addition, we may hold individual securities where valuation methodologies and inputs to valuation models depend on the security type, thus they may be classified differently in the leveling hierarchy. Where possible, quoted prices in active markets for identical or similar securities are used to determine the fair value of the investment securities; those securities are classified as Level 1 or 2, respectively. Where quoted prices in active markets are not available, we use various valuation models for each asset class that are consistent with what market participants use. The inputs and assumptions to the models 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. These investments are generally classified as Level 2 within the fair value hierarchy, however depending on the significance of the unobservable inputs they may also be classified as Level 3. Note 13 – Fair Value Measurements (Continued) Derivatives We estimate the fair value of our derivatives using industry standard valuation models that require observable market inputs, including market prices, interest rates, foreign exchange rates, volatilities, counterparty credit risk, our own non-performance risk and the contractual terms of the derivative instruments. We consider counterparty credit risk and our own non-performance risk through credit valuation adjustments. 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 as Level 2 within 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 valuation vendor. These derivative instruments are classified as Level 3 within the fair value hierarchy. 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. Nonrecurring fair value items as of March 31, 2020 and 2019 were not significant. 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 as Level 3 within 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. Note 13 – Fair Value Measurements (Continued) Financial Instruments Not Carried at Fair Value Finance Receivables Our finance receivables consist of retail loans and dealer financing loans, which are 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, extensions, 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 as Level 3 within the fair value hierarchy. Unsecured notes and loans payable The fair value of commercial paper is assumed to approximate the carrying 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 as Level 2 within the fair value hierarchy. Other 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 as Level 2 within the fair value hierarchy. When observable inputs are not available for all assumptions, we estimate the fair value using internal assumptions such as volatility and expected credit losses. As these valuations utilize unobservable inputs, we classify these unsecured notes and loans payable as Level 3 within 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 as Level 3 within the fair value hierarchy. Other liabilities Our other liabilities include notes payable to related parties. As these notes are short term in nature, the carrying value is deemed to approximate fair value and they are classified as Level 3 within the fair value hierarchy. Note 13 – Fair Value Measurements (Continued) Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables summarize our financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy except for certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and are excluded from the leveling information provided in the tables below. Fair value amounts presented below are intended to permit reconciliation of the fair value hierarchy to the amounts presented in our Consolidated Balance Sheets. March 31, 2020 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 174 $ 2 $ - $ - $ 176 Municipal debt securities - 11 - - 11 Certificates of deposit - 249 - - 249 Commercial paper - 601 - - 601 Corporate debt securities - 197 - - 197 Mortgage-backed securities: U.S. government agency - 49 - - 49 Non-agency residential - - 1 - 1 Non-agency commercial - - 45 - 45 Asset-backed securities - - 72 - 72 Available-for-sale debt securities total 174 1,109 118 - 1,401 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 746 Total return bond funds 1,673 - - - 1,673 Equity investments total 1,673 - - - 2,419 Investments in marketable securities total 1,847 1,109 118 - 3,820 Derivative assets: Interest rate swaps - 1,410 - - 1,410 Foreign currency swaps - 27 - - 27 Counterparty netting and collateral - - - (1,386 ) (1,386 ) Derivative assets total - 1,437 - (1,386 ) 51 Assets at fair value 1,847 2,546 118 (1,386 ) 3,871 Derivative liabilities: Interest rate swaps - (1,826 ) - - (1,826 ) Foreign currency swaps - (1,290 ) - - (1,290 ) Counterparty netting and collateral - - - 3,071 3,071 Liabilities at fair value - (3,116 ) - 3,071 (45 ) Net assets at fair value $ 1,847 $ (570 ) $ 118 $ 1,685 $ 3,826 Note 13 – Fair Value Measurements (Continued) March 31, 2019 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 194 $ 18 $ - $ - $ 212 Municipal debt securities - 11 - - 11 Certificates of deposit - 50 - - 50 Commercial paper - 70 - - 70 Corporate debt securities - 162 - - 162 Mortgage-backed securities: U.S. government agency - 35 - - 35 Non-agency residential - - 1 - 1 Non-agency commercial - - 39 - 39 Asset-backed securities - - 53 - 53 Available-for-sale debt securities total 194 346 93 - 633 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 689 Total return bond funds 1,586 - - - 1,586 Equity investments total 1,586 - - - 2,275 Investments in marketable securities total 1,780 346 93 - 2,908 Derivative assets: Interest rate swaps - 471 1 - 472 Foreign currency swaps - 72 - - 72 Counterparty netting and collateral - - - (483 ) (483 ) Derivative assets total - 543 1 (483 ) 61 Assets at fair value 1,780 889 94 (483 ) 2,969 Derivative liabilities: Interest rate swaps - (622 ) - - (622 ) Foreign currency swaps - (785 ) - - (785 ) Counterparty netting and collateral - - - 1,381 1,381 Liabilities at fair value - (1,407 ) - 1,381 (26 ) Net assets at fair value $ 1,780 $ (518 ) $ 94 $ 898 $ 2,943 Note 13 – Fair Value Measurements (Continued) Transfers between levels of the fair value hierarchy are recognized at the end of their respective reporting periods. Transfers between levels of the fair value hierarchy during the years ended March 31, 2020 and 2019 resulted from changes in the transparency of inputs and were not significant. The following tables summarize the rollforward of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs: Year ended March 31, 2020 Total net Derivative assets Available-for-sale debt securities instruments, net (liabilities) Total Mortgage- Asset- available- Interest backed backed for-sale debt rate securities securities securities swaps Fair value, April 1, 2019 $ 40 $ 53 $ 93 $ 1 $ 94 Total gains (losses) Included in net income (1 ) (2 ) (3 ) 18 15 Included in other comprehensive income (2 ) (4 ) (6 ) - (6 ) Purchases, issuances, sales, and settlements Purchases 10 38 48 - 48 Issuances - - - - - Sales - - - - - Settlements (1 ) (13 ) (14 ) 6 (8 ) Transfers into Level 3 - - - - - Transfers out of Level 3 - - - (25 ) (25 ) Fair value, March 31, 2020 $ 46 $ 72 $ 118 $ - $ 118 The amount of change in unrealized gains (losses) included in net income attributable to assets held at the reporting date $ 18 $ 18 Year ended March 31, 2019 Total net Derivative assets Available-for-sale debt securities instruments, net (liabilities) Total Mortgage- Asset- available- Interest backed backed for-sale debt rate securities securities securities swaps Fair value, April 1, 2018 $ 31 $ 39 $ 70 $ (21 ) $ 49 Total gains (losses) Included in net income - - - 29 29 Included in other comprehensive income - 1 1 - 1 Purchases, issuances, sales, and settlements Purchases 16 32 48 - 48 Issuances - - - - - Sales - (4 ) (4 ) - (4 ) Settlements (7 ) (15 ) (22 ) (7 ) (29 ) Transfers into Level 3 - - - - - Transfers out of Level 3 - - - - - Fair value, March 31, 2019 $ 40 $ 53 $ 93 $ 1 $ 94 The amount of change in unrealized gains (losses) included in net income attributable to assets held at the reporting date $ 29 $ 29 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 Sheets or Consolidated Statements of Income as of and for the years ended March 31, 2020 and 2019. Note 13 – 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 Sheets: March 31, 2020 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables, net Retail loan $ 56,360 $ - $ - $ 57,303 $ 57,303 Wholesale 9,672 - - 9,637 9,637 Real estate 4,544 - - 4,140 4,140 Working capital 3,308 - - 2,811 2,811 Financial liabilities Unsecured notes and loans payable $ 83,172 $ - $ 82,429 $ 560 $ 82,989 Secured notes and loans payable 14,568 - - 14,608 14,608 March 31, 2019 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables, net Retail loan $ 53,013 $ - $ - $ 53,247 $ 53,247 Wholesale 10,293 - - 10,369 10,369 Real estate 4,550 - - 4,534 4,534 Working capital 2,510 - - 2,554 2,554 Financial liabilities Unsecured notes and loans payable $ 80,521 $ - $ 79,056 $ 2,313 $ 81,369 Secured notes and loans payable 12,401 - - 12,428 12,428 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. Finance receivables, net excludes related party transactions, for which the fair value approximates the carrying value, of $109 million and $148 million at March 31, 2020 and 2019, respectively. Fair values of related party finance receivables, net are classified as Level 3 within the fair value hierarchy. |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 14 – Segment Information Our reportable segments are 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. Financial information for our reportable operating segments, which includes allocated corporate expenses, is summarized as follows: Year ended March 31, 2020 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 12,029 $ - $ - $ 12,029 Depreciation on operating leases 6,820 - - 6,820 Interest expense 2,854 - (20 ) 2,834 Net financing revenues 2,355 - 20 2,375 Insurance earned premiums and contract revenues - 933 - 933 Investment and other income, net 155 187 (20 ) 322 Net financing and other revenues 2,510 1,120 - 3,630 Expenses: Provision for credit losses 590 - - 590 Operating and administrative expenses 1,197 364 - 1,561 Insurance losses and loss adjustment expenses - 455 - 455 Total expenses 1,787 819 - 2,606 Income before income taxes 723 301 - 1,024 Provision for income taxes 39 72 - 111 Net income $ 684 $ 229 $ - $ 913 Total assets $ 121,180 $ 5,520 $ (1,145 ) $ 125,555 Note 14 – Segment Information (Continued) Year ended March 31, 2019 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 11,640 $ - $ - $ 11,640 Depreciation on operating leases 6,909 - - 6,909 Interest expense 2,769 - (22 ) 2,747 Net financing revenues 1,962 - 22 1,984 Insurance earned premiums and contract revenues - 904 - 904 Investment and other income, net 188 126 (22 ) 292 Net financing and other revenues 2,150 1,030 - 3,180 Expenses: Provision for credit losses 372 - - 372 Operating and administrative expenses 1,038 347 - 1,385 Insurance losses and loss adjustment expenses - 446 - 446 Total expenses 1,410 793 - 2,203 Income before income taxes 740 237 - 977 Provision for income taxes 147 35 - 182 Net income $ 593 $ 202 $ - $ 795 Total assets $ 112,615 $ 5,066 $ (1,165 ) $ 116,516 Year ended March 31, 2018 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 10,717 $ - $ - $ 10,717 Depreciation on operating leases 7,041 - - 7,041 Interest expense 1,863 - (12 ) 1,851 Net financing revenues 1,813 - 12 1,825 Insurance earned premiums and contract revenues - 882 - 882 Investment and other income, net 140 129 (12 ) 257 Net financing and other revenues 1,953 1,011 - 2,964 Expenses: Provision for credit losses 401 - - 401 Operating and administrative expenses 1,028 329 - 1,357 Insurance losses and loss adjustment expenses - 425 - 425 Total expenses 1,429 754 - 2,183 Income before income taxes 524 257 - 781 (Benefit) provision for income taxes (2,654 ) 25 - (2,629 ) Net income $ 3,178 $ 232 $ - $ 3,410 Total assets $ 116,942 $ 4,691 $ (1,087 ) $ 120,546 Note 14 – Segment Information (Continued) Insurance operations The Insurance operations segment offers vehicle and payment protection products on Toyota, Lexus and other domestic and import vehicles that are sold by dealers along with the sale of a vehicle. Insurance Earned Premiums 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. Insurance Contract Revenues We receive the contractually determined dealer cost at the inception of the contract. Revenue is then deferred and recognized over the term of the contract according to earnings factors established by management that are based upon historical loss experience. Contracts sold range in term from 3 to 120 months and are typically cancellable at any time. The effect of subsequent cancellations is recorded as an offset to unearned contract revenues in Other liabilities on our Consolidated Balance Sheets. For the year ended March 31, 2020 and 2019, respectively, approximately 84 percent of Insurance earned premiums and contract revenues in the Insurance operations segment were accounted for under ASU 2014-09. The Insurance operations segment defers contractually determined incentives paid to dealers as contract costs for selling vehicle and payment protection products. These costs are recorded in Other assets on our Consolidated Balance Sheets and are amortized to Operating and administrative expenses on the Consolidated Statements of Income using a methodology consistent with the recognition of revenue. The amount of capitalized dealer incentives and the related amortization was not significant to our consolidated financial statements as of and for the years ended March 31, 2020 and 2019. We had $2.2 billion and $2.4 billion of unearned insurance premiums and contract revenues from contracts with customers included in Other liabilities on our Consolidated Balance Sheets as of March 31, 2019 and March 31, 2020, respectively. We recognized $673 million of the unearned amounts in Insurance earned premiums and contract revenues in our Consolidated Statements of Income during fiscal 2020. We expect to recognize as revenue approximately $700 million in fiscal 2021 and $1.7 billion thereafter. 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 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 our Consolidated Balance Sheets. These accruals arising from contractual agreements entered into by TMIS are not significant as of March 31, 2020 and 2019. 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. 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. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Mar. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Note 15 – Selected Quarterly Financial Data Unaudited First Second Third Fourth quarter quarter quarter quarter Year ended March 31, 2020: Financing revenues: Operating lease $ 2,184 $ 2,197 $ 2,212 $ 2,182 Retail 589 638 661 670 Dealer 190 183 171 152 Total financing revenues 2,963 3,018 3,044 3,004 Depreciation on operating leases 1,625 1,583 1,712 1,900 Interest expense 697 613 755 769 Net financing revenues 641 822 577 335 Insurance earned premiums and contract revenues 229 232 231 241 Investment and other income, net 118 97 57 50 Net financing revenues and other revenues 988 1,151 865 626 Expenses: Provision for credit losses 75 61 128 326 Operating and administrative 337 358 406 460 Insurance losses and loss adjustment expenses 113 115 116 111 Total expenses 525 534 650 897 Income (loss) before income taxes 463 617 215 (271 ) Provision (benefit) for income taxes 104 158 34 (185 ) Net income (loss) $ 359 $ 459 $ 181 $ (86 ) Note 15 – Selected Quarterly Financial Data (Continued) Unaudited First Second Third Fourth quarter quarter quarter quarter Year ended March 31, 2019: Financing revenues: Operating lease $ 2,126 $ 2,167 $ 2,212 $ 2,189 Retail 535 547 578 575 Dealer 175 176 178 182 Total financing revenues 2,836 2,890 2,968 2,946 Depreciation on operating leases 1,766 1,662 1,717 1,764 Interest expense 682 702 699 664 Net financing revenues 388 526 552 518 Insurance earned premiums and contract revenues 224 226 226 228 Investment and other income, net 40 56 68 128 Net financing revenues and other revenues 652 808 846 874 Expenses: Provision for credit losses 89 67 110 106 Operating and administrative 324 348 347 366 Insurance losses and loss adjustment expenses 125 112 106 103 Total expenses 538 527 563 575 Income before income taxes 114 281 283 299 Provision for income taxes 22 87 69 4 Net income $ 92 $ 194 $ 214 $ 295 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Related party transactions presented in the Consolidated Financial Statements are disclosed in Note 12 – Related Party Transactions. 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. |
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 accumulated depreciation related to our investments in operating leases and the allowance for credit losses. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance On April 1, 2019, we adopted the following new accounting standards: Leases We adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) Refer to Note 4 – Investments in Operating Leases, Net and Note 9 – Commitments and Contingencies for additional information. Other Recently Adopted Standards We adopted ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs We adopted ASU 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities In the second quarter of fiscal 2020, we adopted ASU 2019-07, Codification Updates to Securities and Exchange Commission (“SEC”) Sections Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, “Disclosure Update and Simplification,” and Nos. 33-10231 and 33-10442, “Investment Company Reporting Modernization,” and Miscellaneous Updates |
Accounting Guidance Issued But Not Yet Adopted | Accounting Guidance Issued But Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810) In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents represent highly liquid investments with maturities of three months or less from the date of acquisition and may include money market instruments, commercial paper, certificates of deposit, U.S. government and agency obligations, or similar instruments. |
Restricted Cash and Cash Equivalents | Restricted cash and cash equivalents Restricted cash and cash equivalents include customer collections on securitized receivables to be distributed to investors as payments on the related secured notes and loans payable, which are primarily related to securitization trusts. Restricted cash equivalents may also contain proceeds from certain debt issuances for which the use of the cash is restricted. |
Investments in Marketable Securities | Investments in marketable securities Investments in marketable securities consist of debt securities and equity investments. Debt securities are designated as available-for-sale (“AFS”) and are recorded at fair value with unrealized gains or losses included in accumulated other comprehensive income (“AOCI”), net of applicable taxes. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. We conduct periodic reviews of AFS debt securities to determine whether the loss is deemed to be other-than-temporary. If an other-than-temporary impairment (“OTTI”) loss is deemed to exist, we first determine whether we have the intent to sell the debt security or if it is more likely than not that we will be required to sell the debt security before recovery of its amortized cost basis. If so, the cost basis of the security is written down to fair value and the loss is reflected in Investment and other income, net in our Consolidated Statements of Income. If we do not have the intent to sell nor is it more likely than not that we will be required to sell, the credit loss component of the OTTI losses is recognized in Investment and other income, net in our Consolidated Statements of Income, while the remainder of the loss is recognized in AOCI. The credit loss component 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. All equity investments are recorded at fair value with changes in fair value included in Investment and other income, net in our Consolidated Statements of Income. Realized gains and losses from sales of equity investments are determined using the first in first out method and are included in Investment and other income, net within our Consolidated Statements of Income. |
Debt Issuance Costs | Debt issuance costs are deferred and amortized to interest expense on an effective yield basis over the contractual term of the debt. |
Foreign Currency Transactions | Upon issuance of fixed rate debt, we generally elect to enter into pay-float swaps to convert fixed rate payments on debt to floating rate payments. Certain unsecured notes and loans payable are denominated in various foreign currencies. The debt is translated into U.S. dollars using the applicable exchange rate at the transaction date and retranslated at each balance sheet date using the exchange rate in effect at that date. Concurrent with the issuance of these foreign currency unsecured notes and loans payable, we enter into currency swaps in the same notional amount to convert non-U.S. currency payments to U.S. dollar denominated payments. Gains and losses related to foreign currency transactions are included in Interest expense in our Consolidated Statements of Income. |
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 the 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. |
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 TFSIC and its subsidiaries. Current and deferred federal income taxes are allocated to TMCC as if it were a separate taxpayer. TMCC’s net operating losses and tax credits are utilized when those losses and credits are used by TFSIC and its subsidiaries including TMCC in the consolidated federal income tax return. TMCC files either separate or consolidated/combined state income tax returns with TMNA, TFSIC, 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, TFSIC 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 and credits utilized in the federal and state income tax returns. |
Revenue Recognition | Insurance Contract Revenues We receive the contractually determined dealer cost at the inception of the contract. Revenue is then deferred and recognized over the term of the contract according to earnings factors established by management that are based upon historical loss experience. Contracts sold range in term from 3 to 120 months and are typically cancellable at any time. The effect of subsequent cancellations is recorded as an offset to unearned contract revenues in Other liabilities on our Consolidated Balance Sheets. For the year ended March 31, 2020 and 2019, respectively, approximately 84 percent of Insurance earned premiums and contract revenues in the Insurance operations segment were accounted for under ASU 2014-09. The Insurance operations segment defers contractually determined incentives paid to dealers as contract costs for selling vehicle and payment protection products. These costs are recorded in Other assets on our Consolidated Balance Sheets and are amortized to Operating and administrative expenses on the Consolidated Statements of Income using a methodology consistent with the recognition of revenue. The amount of capitalized dealer incentives and the related amortization was not significant to our consolidated financial statements as of and for the years ended March 31, 2020 and 2019. |
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 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 our Consolidated Balance Sheets. These accruals arising from contractual agreements entered into by TMIS are not significant as of March 31, 2020 and 2019. 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. |
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. |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Investments in Marketable Securities (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Marketable Securities [Abstract] | |
Summary of Investments in Marketable Securities | Investments in marketable securities consisted of the following: March 31, 2020 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 160 $ 16 $ - $ 176 Municipal debt securities 9 2 - 11 Certificates of deposit 250 - (1 ) 249 Commercial paper 604 - (3 ) 601 Corporate debt securities 188 10 (1 ) 197 Mortgage-backed securities: U.S. government agency 47 2 - 49 Non-agency residential 1 - - 1 Non-agency commercial 47 - (2 ) 45 Asset-backed securities 75 - (3 ) 72 Total available-for-sale debt securities $ 1,381 $ 30 $ (10 ) $ 1,401 Equity investments 2,419 Total investments in marketable securities $ 3,820 March 31, 2019 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 213 $ 2 $ (3 ) $ 212 Municipal debt securities 9 2 - 11 Certificates of deposit 50 - - 50 Commercial paper 70 - - 70 Corporate debt securities 160 3 (1 ) 162 Mortgage-backed securities: U.S. government agency 35 - - 35 Non-agency residential 1 - - 1 Non-agency commercial 39 - - 39 Asset-backed securities 52 1 - 53 Total available-for-sale debt securities $ 629 $ 8 $ (4 ) $ 633 Equity investments 2,275 Total investments in marketable securities $ 2,908 |
Schedule of Gains and Losses on Investments in Marketable Securities Presented in Our Consolidated Statement of Income | The following table represents gains and losses on our investments in marketable securities presented in our Consolidated Statements of Income: Years ended March 31, 2020 2019 2018 Available-for-sale debt securities: Realized gains (losses) $ 9 $ (12 ) $ 41 Other-than-temporary impairment $ (8 ) $ - $ - Equity investments: Unrealized gains recognized $ 41 $ 14 Realized gains on sales $ 5 $ - |
Summary of Contractual Maturities of Available-For-Sale Debt Securities | The amortized cost and fair value by contractual maturities of available-for-sale debt securities are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations. March 31, 2020 Amortized c Fair value Available-for-sale debt securities: Due within 1 year $ 878 $ 874 Due after 1 year through 5 years 128 132 Due after 5 years through 10 years 115 123 Due after 10 years 90 105 Mortgage-backed and asset-backed securities 1 170 167 Total $ 1,381 $ 1,401 1 |
Finance Receivables, Net (Table
Finance Receivables, Net (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Net Financing Receivables | Finance receivables, net consisted of the following: March 31, March 31, 2020 2019 Retail receivables $ 44,414 $ 42,621 Securitized retail receivables 12,674 11,318 Dealer financing 17,873 17,696 74,961 71,635 Deferred origination costs 890 695 Deferred income (1,128 ) (1,314 ) Allowance for credit losses Retail and securitized retail receivables (486 ) (304 ) Dealer financing (241 ) (195 ) Total allowance for credit losses (727 ) (499 ) Finance receivables, net $ 73,996 $ 70,517 |
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 receivables Dealer financing 2021 $ 14,437 $ 13,267 2022 13,358 1,476 2023 11,780 876 2024 9,103 676 2025 5,696 454 Thereafter 2,714 1,124 Total $ 57,088 $ 17,873 |
Finance Receivable Credit Quality Indicators | The tables below present each credit quality indicator by class of finance receivables: Retail loan March 31, March 31, 2020 2019 Aging of finance receivables: Current $ 56,064 $ 53,047 30-59 days past due 717 657 60-89 days past due 203 162 90 days or greater past due 104 73 Total $ 57,088 $ 53,939 Wholesale Real estate Working capital March 31, March 31, March 31, March 31, March 31, March 31, 2020 2019 2020 2019 2020 2019 Credit quality indicators: Performing $ 8,750 $ 9,155 $ 3,974 $ 4,019 $ 3,132 $ 2,448 Credit Watch 962 1,127 576 554 195 70 At Risk 92 152 55 84 92 63 Default 22 6 23 14 - 4 Total $ 9,826 $ 10,440 $ 4,628 $ 4,671 $ 3,419 $ 2,585 |
Past Due Finance Receivables by Class | The following tables summarize the aging of finance receivables by class: March 31, 2020 30 - 59 Days past due 60 - 89 Days past due 90 Days or greater past due Total Past due Current Total Finance receivables 90 Days or greater past due and accruing Retail loan $ 717 $ 203 $ 104 $ 1,024 $ 56,064 $ 57,088 $ 66 Wholesale - - - - 9,826 9,826 - Real estate - - 1 1 4,627 4,628 - Working capital - - - - 3,419 3,419 - Total $ 717 $ 203 $ 105 $ 1,025 $ 73,936 $ 74,961 $ 66 March 31, 2019 30 - 59 Days past due 60 - 89 Days past due 90 Days or greater past due Total Past due Current Total Finance receivables 90 greater p due and accruing Retail loan $ 657 $ 162 $ 73 $ 892 $ 53,047 $ 53,939 $ 47 Wholesale - - 1 1 10,439 10,440 - Real estate - - - - 4,671 4,671 - Working capital - - 4 4 2,581 2,585 - Total $ 657 $ 162 $ 78 $ 897 $ 70,738 $ 71,635 $ 47 |
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 allowance March 31, March 31, March 31, March 31, 2020 2019 2020 2019 Impaired account balances individually evaluated for impairment with an allowance: Wholesale $ 104 $ 161 $ 18 $ 28 Real estate 72 93 9 11 Working capital 92 67 38 60 Total $ 268 $ 321 $ 65 $ 99 Impaired account balances individually evaluated for impairment without an allowance: Wholesale $ 93 $ 130 Real estate 148 152 Working capital 19 20 Total $ 260 $ 302 Impaired account balances aggregated and evaluated for impairment: Retail loan $ 253 $ 231 Total impaired account balances: Retail loan $ 253 $ 231 Wholesale 197 291 Real estate 220 245 Working capital 111 87 Total $ 781 $ 854 |
Investments in Operating Leas_2
Investments in Operating Leases, Net (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Leases Operating [Abstract] | |
Investments in Operating Leases, Net | Investments in operating leases, net consisted of the following: March 31, March 31, 2020 2019 Investments in operating leases $ 40,698 $ 42,869 Securitized investments in operating leases 7,940 7,532 48,638 50,401 Deferred origination (fees) and costs, net (223 ) (225 ) Deferred income (1,962 ) (2,085 ) Accumulated depreciation (9,976 ) (10,061 ) Allowance for credit losses (90 ) (103 ) Investments in operating leases, net $ 36,387 $ 37,927 |
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 2021 $ 5,981 2022 3,772 2023 1,339 2024 106 2025 5 Thereafter - Total $ 11,203 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses on Finance Receivables and Investments in Operating Lease | The following table provides information related to our allowance for credit losses on finance receivables and investments in operating leases: Years ended March 31, 2020 2019 Allowance for credit losses at beginning of period $ 602 $ 597 Charge-offs (470 ) (464 ) Recoveries 95 97 Provision for credit losses 590 372 Allowance for credit losses at end of period $ 817 $ 602 |
Allowance for Credit Losses and Finance Receivables by Portfolio Segment | The following tables provide information related to our allowance for credit losses for finance receivables and finance receivables by portfolio segment: Year ended March 31, 2020 Allowance for Credit Losses for Finance Receivables: Retail loan Dealer p Total Beginning balance, April 1, 2019 $ 304 $ 195 $ 499 Charge-offs (358 ) (12 ) (370 ) Recoveries 50 - 50 Provision for credit losses 490 58 548 Ending balance, March 31, 2020 $ 486 $ 241 $ 727 Ending balance: Individually evaluated for impairment $ - $ 65 $ 65 Ending balance: Collectively evaluated for impairment $ 486 $ 176 $ 662 Finance Receivables: Ending balance, March 31, 2020 $ 57,088 $ 17,873 $ 74,961 Ending balance: Individually evaluated for impairment $ - $ 528 $ 528 Ending balance: Collectively evaluated for impairment $ 57,088 $ 17,345 $ 74,433 Year ended March 31, 2019 Allowance for Credit Losses for Finance Receivables: Retail loan Dealer p Total Beginning balance, April 1, 2018 $ 312 $ 151 $ 463 Charge-offs (330 ) - (330 ) Recoveries 50 - 50 Provision for credit losses 272 44 316 Ending balance, March 31, 2019 $ 304 $ 195 $ 499 Ending balance: Individually evaluated for impairment $ - $ 99 $ 99 Ending balance: Collectively evaluated for impairment $ 304 $ 96 $ 400 Finance Receivables: Ending balance, March 31, 2019 $ 53,939 $ 17,696 $ 71,635 Ending balance: Individually evaluated for impairment $ - $ 623 $ 623 Ending balance: Collectively evaluated for impairment $ 53,939 $ 17,073 $ 71,012 |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities and Interest Expense (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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 our Consolidated Balance Sheets: March 31, 2020 March 31, 2019 Fair Fair Notional value Notional value Other assets: Interest rate swaps $ 30,362 $ 1,410 $ 49,254 $ 472 Foreign currency swaps 488 27 2,771 72 Total $ 30,850 $ 1,437 $ 52,025 $ 544 Counterparty netting (966 ) (441 ) Collateral held (420 ) (42 ) Carrying value of derivative contracts – Other assets $ 51 $ 61 Other liabilities: Interest rate swaps $ 69,079 $ 1,826 $ 57,593 $ 622 Foreign currency swaps 13,181 1,290 9,796 785 Total $ 82,260 $ 3,116 $ 67,389 $ 1,407 Counterparty netting (966 ) (441 ) Collateral posted (2,105 ) (940 ) Carrying value of derivative contracts – Other liabilities $ 45 $ 26 |
Components of Interest Expense | The following table summarizes the components of interest expense, including the location and amount of gains and losses on derivative instruments and related hedged items, as reported in our Consolidated Statements of Income: Years ended March 31, 2020 2019 2018 Interest expense on debt $ 2,488 $ 2,559 $ 1,970 Interest expense (income) on derivatives 180 (53 ) (67 ) Interest expense on debt and derivatives 2,668 2,506 1,903 (Gains) losses on debt denominated in foreign currencies (703 ) (1,078 ) 1,344 Losses (gains) on foreign currency swaps 650 1,015 (1,306 ) Losses (gains) on U.S. dollar interest rate swaps 219 304 (90 ) Total interest expense $ 2,834 $ 2,747 $ 1,851 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Related Weighted Average Contractual Interest Rates | Debt and the related weighted average contractual interest rates are summarized as follows: March 31, 2020 March 31, 2019 Face value Carrying value Weighted average contractual interest rates Face value Carrying value Weighted average contractual interest rates Unsecured notes and loans payable $ 83,477 $ 83,172 2.07 % $ 80,875 $ 80,521 2.60 % Secured notes and loans payable 14,597 14,568 2.13 % 12,421 12,401 2.62 % Total debt $ 98,074 $ 97,740 2.08 % $ 93,296 $ 92,922 2.60 % |
Schedule of Maturities of Long-term Debt | Debt is callable at par value. 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 2021 $ 51,489 2022 19,170 2023 11,942 2024 3,973 2025 5,012 Thereafter 1 6,488 Unamortized premiums, discounts and debt issuance costs (334 ) Total debt $ 97,740 1 Unsecured and secured notes and loans payable mature on various dates through fiscal 2049. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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 Consolidated Balance Sheets: March 31, 2020 VIE Assets VIE Liabilities Net Restricted cash securitized assets Other assets Debt Other liabilities Retail finance receivables $ 694 $ 12,375 $ 5 $ 10,933 $ 10 Investments in operating leases 302 5,586 126 3,635 2 Total $ 996 $ 17,961 $ 131 $ 14,568 $ 12 March 31, 2019 VIE Assets VIE Liabilities Net Restricted cash securitized assets Other assets Debt Other liabilities Retail finance receivables $ 630 $ 11,075 $ 6 $ 9,202 $ 10 Investments in operating leases 355 5,307 186 3,199 2 Total $ 985 $ 16,382 $ 192 $ 12,401 $ 12 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Commitments: Credit facilities commitments with dealers $ 1,226 $ 1,378 Commitments under operating lease agreements 139 144 Total commitments 1,365 1,522 Guarantees of affiliate pollution control and solid waste disposal bonds 100 100 Total commitments and guarantees $ 1,465 $ 1,622 |
Summary of Commitments under Operating Lease Agreements | Our commitments under operating lease agreements are summarized below: Years ending March 31, Amounts due on operating lease liabilities as of March 31, 2020 2021 $ 21 2022 23 2023 15 2024 12 2025 10 Thereafter 58 Total $ 139 Present value discount (19 ) Total operating lease liability $ 120 Years ending March 31, Future minimum lease payments as of March 31, 2019 2020 $ 22 2021 19 2022 20 2023 12 2024 10 Thereafter 61 Total $ 144 |
Summary of Additional Information Related to Operating Lease Agreements | The following table provides additional information related to operating lease agreements for which we are the lessee: March 31, 2020 ROU assets $ 114 Lease liabilities $ 120 Weighted average remaining lease term (in years) 9.29 Weighted average discount rate 3.05% Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 23 Supplemental non-cash information ROU assets obtained in exchange for operating lease obligations $ 17 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Provision (benefit) for Income Taxes | The provision (benefit) for income taxes consisted of the following: Years ended March 31, 2020 2019 2018 Current Federal $ (19 ) $ (55 ) $ (45 ) State 120 76 (10 ) Foreign 8 4 3 Total 109 25 (52 ) Deferred Federal 145 207 (2,625 ) State (141 ) (49 ) 48 Foreign (2 ) (1 ) - Total 2 157 (2,577 ) Provision (benefit) for income taxes $ 111 $ 182 $ (2,629 ) |
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, 2020 2019 2018 Provision for income taxes at U.S. federal statutory tax rate 21.0 % 21.0 % 31.6 % State and local taxes (net of federal tax benefit) 4.0 % 4.6 % 4.8 % Effect of state tax law changes (3.9 )% (1.3 )% (0.1 )% Federal tax credits (3.7 )% (1.0 )% (1.1 )% Tax rate differential from tax loss carryback (5.6 )% (2.8 )% - Adjustment for prior year provision to return differences (1.0 )% (1.4 )% 0.4 % Revaluation of federal deferred tax liability from TCJA - - (371.6 )% Other, net - (0.5 )% (0.6 )% Effective tax rate 10.8 % 18.6 % (336.6 )% |
Deferred Tax Liabilities and Assets | Our net deferred income tax liability consisted of the following deferred tax liabilities and assets: March 31, 2020 2019 Liabilities: Lease transactions $ 5,180 $ 7,121 State taxes, net of federal tax benefit 629 847 Insurance dealer commissions 254 235 Mark-to-market of investments in marketable securities and derivatives 14 44 Other 83 53 Deferred tax liabilities $ 6,160 $ 8,300 Assets: Provision for credit and residual value losses 370 361 Deferred costs and fees 188 192 Net operating loss and tax credit carryforwards 100 2,297 Lease obligations 25 - Other 32 22 Deferred tax assets 715 2,872 Valuation allowance (13 ) (24 ) Net deferred tax assets $ 702 $ 2,848 Net deferred income tax liability 1 $ 5,458 $ 5,452 1 |
Change in Unrecognized Tax Benefits | The change in unrecognized tax benefits are as follows: March 31, 2020 2019 2018 Balance at beginning of the year $ 7 $ 6 $ 6 Increases related to positions taken during the current year 12 1 - Balance at end of year $ 19 $ 7 $ 6 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Included in Consolidated Statements of Income | The tables below show the financial statement line items and amounts included in our Consolidated Statements of Income and in our Consolidated Balance Sheets under various related party agreements or relationships: Years ended March 31, 2020 2019 2018 Net financing revenues: Manufacturer's subvention and other revenues $ 2,065 $ 1,930 $ 1,590 Depreciation on operating leases $ (59 ) $ (24 ) $ (12 ) Interest expense: Credit support fees, interest and other expenses $ 96 $ 96 $ 95 Insurance earned premiums and contract revenues: Insurance premiums and contract revenues $ 181 $ 181 $ 182 Investment and other income, net: Interest and other income $ 26 $ 16 $ 13 Expenses: Operating and administrative expenses $ 102 $ 95 $ 80 Insurance losses and loss adjustment expenses 1 $ - $ (3 ) $ (3 ) 1 Amount includes the transfer of insurance losses and loss adjustment expenses under a reinsurance contract. |
Related Party Transactions Included in Consolidated Balance Sheets | The tables below show the financial statement line items and amounts included in our Consolidated Statements of Income and in our Consolidated Balance Sheets under various related party agreements or relationships: March 31, March 31, 2020 2019 Assets: Cash and cash equivalents Commercial paper $ 276 $ - Investments in marketable securities Commercial paper $ 601 $ 70 Finance receivables, net Accounts receivable $ 112 $ 150 Deferred retail subvention income $ (1,065 ) $ (1,257 ) Investments in operating leases, net Investments in operating leases, net $ (100 ) $ 1 Deferred lease subvention income $ (1,941 ) $ (2,062 ) Other assets Notes receivable $ 1,175 $ 601 Other receivables, net $ 97 $ 11 Liabilities: Other liabilities Unearned affiliate insurance premiums and contract revenues $ 344 $ 337 Other payables, net $ 220 $ 147 Notes payable $ 3,032 $ 16 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables summarize our financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy except for certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and are excluded from the leveling information provided in the tables below. Fair value amounts presented below are intended to permit reconciliation of the fair value hierarchy to the amounts presented in our Consolidated Balance Sheets. March 31, 2020 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 174 $ 2 $ - $ - $ 176 Municipal debt securities - 11 - - 11 Certificates of deposit - 249 - - 249 Commercial paper - 601 - - 601 Corporate debt securities - 197 - - 197 Mortgage-backed securities: U.S. government agency - 49 - - 49 Non-agency residential - - 1 - 1 Non-agency commercial - - 45 - 45 Asset-backed securities - - 72 - 72 Available-for-sale debt securities total 174 1,109 118 - 1,401 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 746 Total return bond funds 1,673 - - - 1,673 Equity investments total 1,673 - - - 2,419 Investments in marketable securities total 1,847 1,109 118 - 3,820 Derivative assets: Interest rate swaps - 1,410 - - 1,410 Foreign currency swaps - 27 - - 27 Counterparty netting and collateral - - - (1,386 ) (1,386 ) Derivative assets total - 1,437 - (1,386 ) 51 Assets at fair value 1,847 2,546 118 (1,386 ) 3,871 Derivative liabilities: Interest rate swaps - (1,826 ) - - (1,826 ) Foreign currency swaps - (1,290 ) - - (1,290 ) Counterparty netting and collateral - - - 3,071 3,071 Liabilities at fair value - (3,116 ) - 3,071 (45 ) Net assets at fair value $ 1,847 $ (570 ) $ 118 $ 1,685 $ 3,826 March 31, 2019 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 194 $ 18 $ - $ - $ 212 Municipal debt securities - 11 - - 11 Certificates of deposit - 50 - - 50 Commercial paper - 70 - - 70 Corporate debt securities - 162 - - 162 Mortgage-backed securities: U.S. government agency - 35 - - 35 Non-agency residential - - 1 - 1 Non-agency commercial - - 39 - 39 Asset-backed securities - - 53 - 53 Available-for-sale debt securities total 194 346 93 - 633 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 689 Total return bond funds 1,586 - - - 1,586 Equity investments total 1,586 - - - 2,275 Investments in marketable securities total 1,780 346 93 - 2,908 Derivative assets: Interest rate swaps - 471 1 - 472 Foreign currency swaps - 72 - - 72 Counterparty netting and collateral - - - (483 ) (483 ) Derivative assets total - 543 1 (483 ) 61 Assets at fair value 1,780 889 94 (483 ) 2,969 Derivative liabilities: Interest rate swaps - (622 ) - - (622 ) Foreign currency swaps - (785 ) - - (785 ) Counterparty netting and collateral - - - 1,381 1,381 Liabilities at fair value - (1,407 ) - 1,381 (26 ) Net assets at fair value $ 1,780 $ (518 ) $ 94 $ 898 $ 2,943 |
Assets and Liabilities Measured on Recurring Basis Using Significant Unobservable Inputs | The following tables summarize the rollforward of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs: Year ended March 31, 2020 Total net Derivative assets Available-for-sale debt securities instruments, net (liabilities) Total Mortgage- Asset- available- Interest backed backed for-sale debt rate securities securities securities swaps Fair value, April 1, 2019 $ 40 $ 53 $ 93 $ 1 $ 94 Total gains (losses) Included in net income (1 ) (2 ) (3 ) 18 15 Included in other comprehensive income (2 ) (4 ) (6 ) - (6 ) Purchases, issuances, sales, and settlements Purchases 10 38 48 - 48 Issuances - - - - - Sales - - - - - Settlements (1 ) (13 ) (14 ) 6 (8 ) Transfers into Level 3 - - - - - Transfers out of Level 3 - - - (25 ) (25 ) Fair value, March 31, 2020 $ 46 $ 72 $ 118 $ - $ 118 The amount of change in unrealized gains (losses) included in net income attributable to assets held at the reporting date $ 18 $ 18 Year ended March 31, 2019 Total net Derivative assets Available-for-sale debt securities instruments, net (liabilities) Total Mortgage- Asset- available- Interest backed backed for-sale debt rate securities securities securities swaps Fair value, April 1, 2018 $ 31 $ 39 $ 70 $ (21 ) $ 49 Total gains (losses) Included in net income - - - 29 29 Included in other comprehensive income - 1 1 - 1 Purchases, issuances, sales, and settlements Purchases 16 32 48 - 48 Issuances - - - - - Sales - (4 ) (4 ) - (4 ) Settlements (7 ) (15 ) (22 ) (7 ) (29 ) Transfers into Level 3 - - - - - Transfers out of Level 3 - - - - - Fair value, March 31, 2019 $ 40 $ 53 $ 93 $ 1 $ 94 The amount of change in unrealized gains (losses) included in net income attributable to assets held at the reporting date $ 29 $ 29 |
Financial Assets and Liabilities Not Carried at Fair Value on Recurring Basis on Consolidated Balance Sheets | The following tables provide information about assets and liabilities not carried at fair value on a recurring basis on our Consolidated Balance Sheets: March 31, 2020 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables, net Retail loan $ 56,360 $ - $ - $ 57,303 $ 57,303 Wholesale 9,672 - - 9,637 9,637 Real estate 4,544 - - 4,140 4,140 Working capital 3,308 - - 2,811 2,811 Financial liabilities Unsecured notes and loans payable $ 83,172 $ - $ 82,429 $ 560 $ 82,989 Secured notes and loans payable 14,568 - - 14,608 14,608 March 31, 2019 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables, net Retail loan $ 53,013 $ - $ - $ 53,247 $ 53,247 Wholesale 10,293 - - 10,369 10,369 Real estate 4,550 - - 4,534 4,534 Working capital 2,510 - - 2,554 2,554 Financial liabilities Unsecured notes and loans payable $ 80,521 $ - $ 79,056 $ 2,313 $ 81,369 Secured notes and loans payable 12,401 - - 12,428 12,428 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information for our reportable operating segments, which includes allocated corporate expenses, is summarized as follows: Year ended March 31, 2020 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 12,029 $ - $ - $ 12,029 Depreciation on operating leases 6,820 - - 6,820 Interest expense 2,854 - (20 ) 2,834 Net financing revenues 2,355 - 20 2,375 Insurance earned premiums and contract revenues - 933 - 933 Investment and other income, net 155 187 (20 ) 322 Net financing and other revenues 2,510 1,120 - 3,630 Expenses: Provision for credit losses 590 - - 590 Operating and administrative expenses 1,197 364 - 1,561 Insurance losses and loss adjustment expenses - 455 - 455 Total expenses 1,787 819 - 2,606 Income before income taxes 723 301 - 1,024 Provision for income taxes 39 72 - 111 Net income $ 684 $ 229 $ - $ 913 Total assets $ 121,180 $ 5,520 $ (1,145 ) $ 125,555 Year ended March 31, 2019 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 11,640 $ - $ - $ 11,640 Depreciation on operating leases 6,909 - - 6,909 Interest expense 2,769 - (22 ) 2,747 Net financing revenues 1,962 - 22 1,984 Insurance earned premiums and contract revenues - 904 - 904 Investment and other income, net 188 126 (22 ) 292 Net financing and other revenues 2,150 1,030 - 3,180 Expenses: Provision for credit losses 372 - - 372 Operating and administrative expenses 1,038 347 - 1,385 Insurance losses and loss adjustment expenses - 446 - 446 Total expenses 1,410 793 - 2,203 Income before income taxes 740 237 - 977 Provision for income taxes 147 35 - 182 Net income $ 593 $ 202 $ - $ 795 Total assets $ 112,615 $ 5,066 $ (1,165 ) $ 116,516 Year ended March 31, 2018 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 10,717 $ - $ - $ 10,717 Depreciation on operating leases 7,041 - - 7,041 Interest expense 1,863 - (12 ) 1,851 Net financing revenues 1,813 - 12 1,825 Insurance earned premiums and contract revenues - 882 - 882 Investment and other income, net 140 129 (12 ) 257 Net financing and other revenues 1,953 1,011 - 2,964 Expenses: Provision for credit losses 401 - - 401 Operating and administrative expenses 1,028 329 - 1,357 Insurance losses and loss adjustment expenses - 425 - 425 Total expenses 1,429 754 - 2,183 Income before income taxes 524 257 - 781 (Benefit) provision for income taxes (2,654 ) 25 - (2,629 ) Net income $ 3,178 $ 232 $ - $ 3,410 Total assets $ 116,942 $ 4,691 $ (1,087 ) $ 120,546 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Unaudited First Second Third Fourth quarter quarter quarter quarter Year ended March 31, 2020: Financing revenues: Operating lease $ 2,184 $ 2,197 $ 2,212 $ 2,182 Retail 589 638 661 670 Dealer 190 183 171 152 Total financing revenues 2,963 3,018 3,044 3,004 Depreciation on operating leases 1,625 1,583 1,712 1,900 Interest expense 697 613 755 769 Net financing revenues 641 822 577 335 Insurance earned premiums and contract revenues 229 232 231 241 Investment and other income, net 118 97 57 50 Net financing revenues and other revenues 988 1,151 865 626 Expenses: Provision for credit losses 75 61 128 326 Operating and administrative 337 358 406 460 Insurance losses and loss adjustment expenses 113 115 116 111 Total expenses 525 534 650 897 Income (loss) before income taxes 463 617 215 (271 ) Provision (benefit) for income taxes 104 158 34 (185 ) Net income (loss) $ 359 $ 459 $ 181 $ (86 ) Unaudited First Second Third Fourth quarter quarter quarter quarter Year ended March 31, 2019: Financing revenues: Operating lease $ 2,126 $ 2,167 $ 2,212 $ 2,189 Retail 535 547 578 575 Dealer 175 176 178 182 Total financing revenues 2,836 2,890 2,968 2,946 Depreciation on operating leases 1,766 1,662 1,717 1,764 Interest expense 682 702 699 664 Net financing revenues 388 526 552 518 Insurance earned premiums and contract revenues 224 226 226 228 Investment and other income, net 40 56 68 128 Net financing revenues and other revenues 652 808 846 874 Expenses: Provision for credit losses 89 67 110 106 Operating and administrative 324 348 347 366 Insurance losses and loss adjustment expenses 125 112 106 103 Total expenses 538 527 563 575 Income before income taxes 114 281 283 299 Provision for income taxes 22 87 69 4 Net income $ 92 $ 194 $ 214 $ 295 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Apr. 01, 2020 | Mar. 31, 2020 | Apr. 01, 2019 |
Summary Of Significant Accounting Policies [Line Items] | |||
Restructuring and related activities, description | On April 16, 2019, we announced that we will restructure our field operations over the next two years to better serve our dealer partners by streamlining our field office structure into three regional locations and investing in new technology. This restructure is expected to be completed in fiscal year 2021 and costs associated with this restructure are not expected to be significant. | ||
Operating lease right-of-use assets | $ 114 | ||
Operating lease liabilities | $ 120 | ||
Accounting Standards Update 2016-13 [Member] | Subsequent Event [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Increase in allowance for credit losses on finance receivables | $ 292 | ||
Accounting Standards Update 2016-02 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease right-of-use assets | $ 115 | ||
Operating lease liabilities | $ 122 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Finance Operations [Member] | California [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Percentage | 23.00% | ||
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 | 7.00% | ||
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 | 25.00% | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Insurance Operations [Member] | New York [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Percentage | 6.00% | ||
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% | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Insurance Operations [Member] | Maryland [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Percentage | 5.00% | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Insurance Operations [Member] | Virginia [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Percentage | 5.00% |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Investments in Marketable Securities - Summary of Investments in Marketable Securities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | $ 1,381 | $ 629 |
Available-for-sale debt securities, Unrealized gains | 30 | 8 |
Available-for-sale debt securities, Unrealized losses | (10) | (4) |
Available-for-sale debt securities, Fair value | 1,401 | 633 |
Equity investments, Fair value | 2,419 | 2,275 |
Investments in marketable securities total | 3,820 | 2,908 |
U.S. government and agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 160 | 213 |
Available-for-sale debt securities, Unrealized gains | 16 | 2 |
Available-for-sale debt securities, Unrealized losses | 0 | (3) |
Available-for-sale debt securities, Fair value | 176 | 212 |
Municipal debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 9 | 9 |
Available-for-sale debt securities, Unrealized gains | 2 | 2 |
Available-for-sale debt securities, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, Fair value | 11 | 11 |
Certificates of deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 250 | 50 |
Available-for-sale debt securities, Unrealized gains | 0 | 0 |
Available-for-sale debt securities, Unrealized losses | (1) | 0 |
Available-for-sale debt securities, Fair value | 249 | 50 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 604 | 70 |
Available-for-sale debt securities, Unrealized gains | 0 | 0 |
Available-for-sale debt securities, Unrealized losses | (3) | 0 |
Available-for-sale debt securities, Fair value | 601 | 70 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 188 | 160 |
Available-for-sale debt securities, Unrealized gains | 10 | 3 |
Available-for-sale debt securities, Unrealized losses | (1) | (1) |
Available-for-sale debt securities, Fair value | 197 | 162 |
U.S. government agency mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 47 | 35 |
Available-for-sale debt securities, Unrealized gains | 2 | 0 |
Available-for-sale debt securities, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, Fair value | 49 | 35 |
Non-agency residential mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 1 | 1 |
Available-for-sale debt securities, Unrealized gains | 0 | 0 |
Available-for-sale debt securities, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, Fair value | 1 | 1 |
Non-agency commercial mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 47 | 39 |
Available-for-sale debt securities, Unrealized gains | 0 | 0 |
Available-for-sale debt securities, Unrealized losses | (2) | 0 |
Available-for-sale debt securities, Fair value | 45 | 39 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 75 | 52 |
Available-for-sale debt securities, Unrealized gains | 0 | 1 |
Available-for-sale debt securities, Unrealized losses | (3) | 0 |
Available-for-sale debt securities, Fair value | $ 72 | $ 53 |
Cash and Cash Equivalents and_4
Cash and Cash Equivalents and Investments in Marketable Securities - Additional Information (Details) | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Marketable Securities [Abstract] | |
Private placement share redemption percentage | 1.00% |
Private placement share redemption amount | $ 250,000 |
Share redemption period | 90 days |
Cash and Cash Equivalents and_5
Cash and Cash Equivalents and Investments in Marketable Securities - Schedule of Gains and Losses on Investments in Marketable Securities Presented in Our Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Available-for-sale debt securities: | |||
Realized gains (losses) | $ 9 | $ (12) | $ 41 |
Other-than-temporary impairment | (8) | 0 | $ 0 |
Equity investments: | |||
Unrealized gains recognized | 41 | 14 | |
Realized gains on sales | $ 5 | $ 0 |
Cash and Cash Equivalents and_6
Cash and Cash Equivalents and Investments in Marketable Securities - Summary of Contractual Maturities of Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | |
Available-for-sale debt securities, Amortized cost | |||
Due within 1 Year, Amortized cost | $ 878 | ||
Due after 1 Year through 5 Years, Amortized cost | 128 | ||
Due after 5 Years through 10 Years, Amortized cost | 115 | ||
Due after 10 Years, Amortized cost | 90 | ||
Mortgage-backed and asset-backed securities, Amortized cost | [1] | 170 | |
Available-for-sale debt securities, Amortized cost | 1,381 | $ 629 | |
Available-for-sale debt securities, Fair value | |||
Due within 1 Year, Fair value | 874 | ||
Due after 1 Year through 5 Years, Fair value | 132 | ||
Due after 5 Years through 10 Years, Fair value | 123 | ||
Due after 10 Years, Fair value | 105 | ||
Mortgage-backed and asset-backed securities, Fair value | [1] | 167 | |
Total, Fair value | $ 1,401 | $ 633 | |
[1] | Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities have multiple maturity dates. |
Finance Receivables, Net - Net
Finance Receivables, Net - Net Financing Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | $ 74,961 | $ 71,635 | |
Finance receivables, net | 73,996 | 70,517 | |
Finance Receivables, Net [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 74,961 | 71,635 | |
Deferred origination costs | 890 | 695 | |
Deferred income | (1,128) | (1,314) | |
Allowance for credit losses | (727) | (499) | $ (463) |
Finance receivables, net | 73,996 | 70,517 | |
Finance Receivables, Net [Member] | Retail receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 44,414 | 42,621 | |
Finance Receivables, Net [Member] | Securitized retail receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 12,674 | 11,318 | |
Finance Receivables, Net [Member] | Dealer financing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 17,873 | 17,696 | |
Allowance for credit losses | (241) | (195) | |
Finance Receivables, Net [Member] | Retail and securitized retail receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit losses | $ (486) | $ (304) |
Finance Receivables, Net - Cont
Finance Receivables, Net - Contractual Maturities on Retail Receivables and Dealer Financing (Details) $ in Millions | Mar. 31, 2020USD ($) |
Retail receivables [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2021 | $ 14,437 |
2022 | 13,358 |
2023 | 11,780 |
2024 | 9,103 |
2025 | 5,696 |
Thereafter | 2,714 |
Total | 57,088 |
Dealer financing [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2021 | 13,267 |
2022 | 1,476 |
2023 | 876 |
2024 | 676 |
2025 | 454 |
Thereafter | 1,124 |
Total | $ 17,873 |
Finance Receivables, Net - Fina
Finance Receivables, Net - Finance Receivable Credit Quality Indicators (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Current | $ 73,936 | $ 70,738 |
Financing receivables, past due | 1,025 | 897 |
Total Finance Receivables | 74,961 | 71,635 |
Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 56,064 | 53,047 |
Financing receivables, past due | 1,024 | 892 |
Total Finance Receivables | 57,088 | 53,939 |
Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 9,826 | 10,439 |
Financing receivables, past due | 0 | 1 |
Total Finance Receivables | 9,826 | 10,440 |
Wholesale [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 8,750 | 9,155 |
Wholesale [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 962 | 1,127 |
Wholesale [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 92 | 152 |
Wholesale [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 22 | 6 |
Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 4,627 | 4,671 |
Financing receivables, past due | 1 | 0 |
Total Finance Receivables | 4,628 | 4,671 |
Real estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 3,974 | 4,019 |
Real estate [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 576 | 554 |
Real estate [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 55 | 84 |
Real estate [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 23 | 14 |
Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 3,419 | 2,581 |
Financing receivables, past due | 0 | 4 |
Total Finance Receivables | 3,419 | 2,585 |
Working capital [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 3,132 | 2,448 |
Working capital [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 195 | 70 |
Working capital [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 92 | 63 |
Working capital [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 0 | 4 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 717 | 657 |
30-59 Days Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 717 | 657 |
30-59 Days Past Due [Member] | Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
30-59 Days Past Due [Member] | Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
30-59 Days Past Due [Member] | Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 203 | 162 |
60-89 Days Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 203 | 162 |
60-89 Days Past Due [Member] | Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
60-89 Days Past Due [Member] | Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
60-89 Days Past Due [Member] | Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 105 | 78 |
90 Days or Greater Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 104 | 73 |
90 Days or Greater Past Due [Member] | Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 1 |
90 Days or Greater Past Due [Member] | Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 1 | 0 |
90 Days or Greater Past Due [Member] | Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | $ 0 | $ 4 |
Finance Receivables, Net - Agin
Finance Receivables, Net - Aging of Finance Receivables by Class (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | $ 1,025 | $ 897 |
Current | 73,936 | 70,738 |
Total Finance Receivables | 74,961 | 71,635 |
90 Days or greater past due and accruing | 66 | 47 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 717 | 657 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 203 | 162 |
90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 105 | 78 |
Retail Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 1,024 | 892 |
Current | 56,064 | 53,047 |
Total Finance Receivables | 57,088 | 53,939 |
90 Days or greater past due and accruing | 66 | 47 |
Retail Loan [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 717 | 657 |
Retail Loan [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 203 | 162 |
Retail Loan [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 104 | 73 |
Wholesale [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 0 | 1 |
Current | 9,826 | 10,439 |
Total Finance Receivables | 9,826 | 10,440 |
90 Days or greater past due and accruing | 0 | 0 |
Wholesale [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 0 | 0 |
Wholesale [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 0 | 0 |
Wholesale [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 0 | 1 |
Real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 1 | 0 |
Current | 4,627 | 4,671 |
Total Finance Receivables | 4,628 | 4,671 |
90 Days or greater past due and accruing | 0 | 0 |
Real estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 0 | 0 |
Real estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 0 | 0 |
Real estate [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 1 | 0 |
Working capital [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 0 | 4 |
Current | 3,419 | 2,581 |
Total Finance Receivables | 3,419 | 2,585 |
90 Days or greater past due and accruing | 0 | 0 |
Working capital [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 0 | 0 |
Working capital [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | 0 | 0 |
Working capital [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past due | $ 0 | $ 4 |
Finance Receivables, Net - Summ
Finance Receivables, Net - Summary of Impaired Loans by Class of Finance Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Impaired finance receivables | ||
Impaired finance receivables individually evaluated with related allowance | $ 268 | $ 321 |
Impaired finance receivables individually evaluated with no related allowance | 260 | 302 |
Impaired finance receivables | 781 | 854 |
Individually evaluated allowance | 65 | 99 |
Wholesale [Member] | ||
Impaired finance receivables | ||
Impaired finance receivables individually evaluated with related allowance | 104 | 161 |
Impaired finance receivables individually evaluated with no related allowance | 93 | 130 |
Impaired finance receivables | 197 | 291 |
Individually evaluated allowance | 18 | 28 |
Real estate [Member] | ||
Impaired finance receivables | ||
Impaired finance receivables individually evaluated with related allowance | 72 | 93 |
Impaired finance receivables individually evaluated with no related allowance | 148 | 152 |
Impaired finance receivables | 220 | 245 |
Individually evaluated allowance | 9 | 11 |
Working capital [Member] | ||
Impaired finance receivables | ||
Impaired finance receivables individually evaluated with related allowance | 92 | 67 |
Impaired finance receivables individually evaluated with no related allowance | 19 | 20 |
Impaired finance receivables | 111 | 87 |
Individually evaluated allowance | 38 | 60 |
Retail Loan [Member] | ||
Impaired finance receivables | ||
Impaired finance receivables aggregated and evaluated for impairment | 253 | 231 |
Impaired finance receivables | $ 253 | $ 231 |
Finance Receivables, Net - Addi
Finance Receivables, Net - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Receivables [Abstract] | ||
Dealer products portfolio segment accounts on nonaccrual status | $ 288 | $ 329 |
Investments in Operating Leas_3
Investments in Operating Leases, Net - Additional Information (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property Subject To Or Available For Operating Lease [Line Items] | ||
Operating lease, existence of option to extend | true | |
Operating lease, option to extend | Generally, lessees have the ability to extend their lease term in six month increments up to a total of 12 months from the original lease maturity date. | |
Investments in operating leases [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Impairment in investments in operating leases portfolio | $ 0 | $ 0 |
Investments in Operating Leas_4
Investments in Operating Leases, Net - Investments in Operating Leases, Net (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases, net | $ 36,387 | $ 37,927 |
Investments in operating leases [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | 40,698 | 42,869 |
Securitized investments in operating leases [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | 7,940 | 7,532 |
Investments In Operating Leases, Net [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | 48,638 | 50,401 |
Deferred origination (fees) and costs, net | (223) | (225) |
Deferred income | (1,962) | (2,085) |
Accumulated depreciation | (9,976) | (10,061) |
Allowance for credit losses | $ (90) | $ (103) |
Investments in Operating Leas_5
Investments in Operating Leases, Net - Future Minimum Rentals on Investments in Operating Leases (Details) $ in Millions | Mar. 31, 2020USD ($) |
Future minimum rentals on operating leases | |
2021 | $ 5,981 |
2022 | 3,772 |
2023 | 1,339 |
2024 | 106 |
2025 | 5 |
Thereafter | 0 |
Total | $ 11,203 |
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, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for Credit Losses on Finance Receivables and Investments in Operating Leases | |||||||||||
Allowance for credit losses at beginning of period | $ 602 | $ 597 | $ 602 | $ 597 | |||||||
Charge-offs | (470) | (464) | |||||||||
Recoveries | 95 | 97 | |||||||||
Provision for credit losses | $ 326 | $ 128 | $ 61 | $ 75 | $ 106 | $ 110 | $ 67 | $ 89 | 590 | 372 | $ 401 |
Allowance for credit losses at end of period | $ 817 | $ 602 | $ 817 | $ 602 | $ 597 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finance Receivables, Net [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Ending balance: Collectively evaluated for impairment | $ 74,433 | $ 71,012 |
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 | 253 | 231 |
Finance Receivables, Net [Member] | Dealer Products [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Ending balance: Collectively evaluated for impairment | 17,345 | 17,073 |
Finance Receivables, Net [Member] | TMNA [Member] | Financial Guarantee [Member] | Dealer Products [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Ending balance: Collectively evaluated for impairment | 1,047 | 1,091 |
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 | 140 | $ 132 |
COVID-19 [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Additional provision for credit losses | $ 264 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Allowance for Credit Losses and Finance Receivables by Portfolio Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for Credit Losses for Finance Receivables: | |||||||||||
Provision for credit losses | $ 326 | $ 128 | $ 61 | $ 75 | $ 106 | $ 110 | $ 67 | $ 89 | $ 590 | $ 372 | $ 401 |
Finance Receivables: | |||||||||||
Total Finance Receivables | 74,961 | 71,635 | 74,961 | 71,635 | |||||||
Retail loan [Member] | |||||||||||
Finance Receivables: | |||||||||||
Total Finance Receivables | 57,088 | 53,939 | 57,088 | 53,939 | |||||||
Finance Receivables, Net [Member] | |||||||||||
Allowance for Credit Losses for Finance Receivables: | |||||||||||
Allowance for credit losses at beginning of period | 499 | 463 | 499 | 463 | |||||||
Charge-offs | (370) | (330) | |||||||||
Recoveries | 50 | 50 | |||||||||
Provision for credit losses | 548 | 316 | |||||||||
Allowance for credit losses at end of period | 727 | 499 | 727 | 499 | 463 | ||||||
Ending balance: Individually evaluated for impairment | 65 | 99 | 65 | 99 | |||||||
Ending balance: Collectively evaluated for impairment | 662 | 400 | 662 | 400 | |||||||
Finance Receivables: | |||||||||||
Total Finance Receivables | 74,961 | 71,635 | 74,961 | 71,635 | |||||||
Ending balance: Individually evaluated for impairment | 528 | 623 | 528 | 623 | |||||||
Ending balance: Collectively evaluated for impairment | 74,433 | 71,012 | 74,433 | 71,012 | |||||||
Finance Receivables, Net [Member] | Retail loan [Member] | |||||||||||
Allowance for Credit Losses for Finance Receivables: | |||||||||||
Allowance for credit losses at beginning of period | 304 | 312 | 304 | 312 | |||||||
Charge-offs | (358) | (330) | |||||||||
Recoveries | 50 | 50 | |||||||||
Provision for credit losses | 490 | 272 | |||||||||
Allowance for credit losses at end of period | 486 | 304 | 486 | 304 | 312 | ||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||
Ending balance: Collectively evaluated for impairment | 486 | 304 | 486 | 304 | |||||||
Finance Receivables: | |||||||||||
Total Finance Receivables | 57,088 | 53,939 | 57,088 | 53,939 | |||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||
Ending balance: Collectively evaluated for impairment | 57,088 | 53,939 | 57,088 | 53,939 | |||||||
Finance Receivables, Net [Member] | Dealer products [Member] | |||||||||||
Allowance for Credit Losses for Finance Receivables: | |||||||||||
Allowance for credit losses at beginning of period | $ 195 | $ 151 | 195 | 151 | |||||||
Charge-offs | (12) | 0 | |||||||||
Recoveries | 0 | 0 | |||||||||
Provision for credit losses | 58 | 44 | |||||||||
Allowance for credit losses at end of period | 241 | 195 | 241 | 195 | $ 151 | ||||||
Ending balance: Individually evaluated for impairment | 65 | 99 | 65 | 99 | |||||||
Ending balance: Collectively evaluated for impairment | 176 | 96 | 176 | 96 | |||||||
Finance Receivables: | |||||||||||
Total Finance Receivables | 17,873 | 17,696 | 17,873 | 17,696 | |||||||
Ending balance: Individually evaluated for impairment | 528 | 623 | 528 | 623 | |||||||
Ending balance: Collectively evaluated for impairment | $ 17,345 | $ 17,073 | $ 17,345 | $ 17,073 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities and Interest Expense - Additional Information (Details) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2018 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Derivative assets and liabilities used for hedge accounting | $ 0 | ||
Collateral held in excess of the fair value of derivative assets | $ 10,000,000 | $ 2,000,000 | |
Collateral posted in excess of the fair value of derivative liabilities | $ 1,000,000 | $ 17,000,000 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities and Interest Expense - Derivative Activity Impact on Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | $ 30,850 | $ 52,025 |
Fair value | 1,437 | 544 |
Counterparty netting | (966) | (441) |
Collateral held | (420) | (42) |
Other assets [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 30,362 | 49,254 |
Fair value | 1,410 | 472 |
Other assets [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 488 | 2,771 |
Fair value | 27 | 72 |
Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 82,260 | 67,389 |
Fair value | 3,116 | 1,407 |
Counterparty netting | (966) | (441) |
Collateral posted | (2,105) | (940) |
Other liabilities [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 69,079 | 57,593 |
Fair value | 1,826 | 622 |
Other liabilities [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 13,181 | 9,796 |
Fair value | 1,290 | 785 |
Carrying value [Member] | Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying value of derivative contracts – Other assets | 51 | 61 |
Carrying value [Member] | Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying value of derivative contracts – Other liabilities | $ 45 | $ 26 |
Derivatives, Hedging Activiti_5
Derivatives, Hedging Activities and Interest Expense - Components of Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments Gain Loss [Line Items] | |||||||||||
Interest expense on debt | $ 2,488 | $ 2,559 | $ 1,970 | ||||||||
Interest expense (income) on derivatives | 180 | (53) | (67) | ||||||||
Interest expense on debt and derivatives | 2,668 | 2,506 | 1,903 | ||||||||
Total interest expense | $ 769 | $ 755 | $ 613 | $ 697 | $ 664 | $ 699 | $ 702 | $ 682 | 2,834 | 2,747 | 1,851 |
Interest expense [Member] | |||||||||||
Derivative Instruments Gain Loss [Line Items] | |||||||||||
(Gains) losses on debt denominated in foreign currencies | (703) | (1,078) | 1,344 | ||||||||
Losses (gains) on foreign currency swaps | 650 | 1,015 | (1,306) | ||||||||
Losses (gains) on U.S. dollar interest rate swaps | $ 219 | $ 304 | $ (90) |
Debt and Credit Facilities - De
Debt and Credit Facilities - Debt and Related Weighted Average Contractual Interest Rates (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt, Face value | $ 98,074 | $ 93,296 |
Debt, Carrying value | $ 97,740 | $ 92,922 |
Weighted average contractual interest rates | 2.08% | 2.60% |
Unsecured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Face value | $ 83,477 | $ 80,875 |
Debt, Carrying value | $ 83,172 | $ 80,521 |
Weighted average contractual interest rates | 2.07% | 2.60% |
Secured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Face value | $ 14,597 | $ 12,421 |
Debt, Carrying value | $ 14,568 | $ 12,401 |
Weighted average contractual interest rates | 2.13% | 2.62% |
Debt and Credit Facilities - Sc
Debt and Credit Facilities - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Scheduled maturities due in the fiscal years ending: | ||
2021 | $ 51,489 | |
2022 | 19,170 | |
2023 | 11,942 | |
2024 | 3,973 | |
2025 | 5,012 | |
Thereafter | 6,488 | |
Unamortized premiums, discounts and debt issuance costs | (334) | |
Total debt | $ 97,740 | $ 92,922 |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Details 1) - USD ($) $ in Billions | Mar. 31, 2020 | Mar. 31, 2019 |
Debt Disclosure [Abstract] | ||
Commercial paper outstanding | $ 27 | $ 25.3 |
Debt and Credit Facilities - _2
Debt and Credit Facilities - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
364 Day Credit Agreement Expiring 2021 [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Initiation date | Nov. 30, 2019 | |||
Maximum borrowing capacity | $ 5,000,000,000 | |||
Credit facilities amount outstanding | $ 0 | $ 0 | ||
Three Year Agreement Expiring 2023 [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Initiation date | Nov. 30, 2019 | |||
Maximum borrowing capacity | $ 5,000,000,000 | |||
Credit facilities amount outstanding | 0 | 0 | ||
Five Year Agreement Expiring 2025 [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Initiation date | Nov. 30, 2019 | |||
Maximum borrowing capacity | $ 5,000,000,000 | |||
Credit facilities amount outstanding | 0 | 0 | ||
Total Committed Bank Credit Facilities [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 4,600,000,000 | |||
Credit facilities amount outstanding | 0 | $ 0 | ||
Committed Bank Credit Facility Expiring 2021 [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 2,500,000,000 | |||
Committed Bank Credit Facility Expiring 2023 [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 2,100,000,000 | |||
Three Year Revolving Credit Facility Expiring 2022 [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 5,000,000,000 | |||
Credit facilities amount outstanding | $ 3,000,000,000 | |||
Credit facilities interest rate | 1.86% | |||
Credit facility, maturity date | Sep. 30, 2020 | |||
Secured notes and loans payable [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
New revolving asset backed securities period | 5 years | |||
Secured notes and loans payable [Member] | Maximum [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Percentage of initial principal amount | 50.00% |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Assets and Liabilities related to Variable Interest Entities Securitization Transactions (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 1,739 | $ 985 |
Net securitized assets | 73,996 | 70,517 |
Other assets | 2,823 | 1,981 |
Debt | 97,740 | 92,922 |
Other liabilities | 7,854 | 4,564 |
Other assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 996 | 985 |
Net securitized assets | 17,961 | 16,382 |
Other assets | 131 | 192 |
Other liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 14,568 | 12,401 |
Other liabilities | 12 | 12 |
Retail Finance Receivables [Member] | Other assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 694 | 630 |
Net securitized assets | 12,375 | 11,075 |
Other assets | 5 | 6 |
Retail Finance Receivables [Member] | Other liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 10,933 | 9,202 |
Other liabilities | 10 | 10 |
Investments In Operating Leases, Net [Member] | Other assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 302 | 355 |
Net securitized assets | 5,586 | 5,307 |
Other assets | 126 | 186 |
Investments In Operating Leases, Net [Member] | Other liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 3,635 | 3,199 |
Other liabilities | $ 2 | $ 2 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract] | ||
Securities retained by TMCC | $ 1,182 | $ 1,486 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments and Guarantees (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Commitments: | ||
Credit facilities commitments with dealers | $ 1,226 | $ 1,378 |
Commitments under operating lease agreements | 139 | |
Commitments under operating lease agreements | 144 | |
Total commitments | 1,365 | 1,522 |
Total commitments and guarantees | 1,465 | 1,622 |
Performance Guarantee [Member] | Putnam and Gibson Counties [Member] | ||
Commitments: | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | $ 100 | $ 100 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Commitments And Contingencies [Line Items] | |||
Commitments under operating lease agreements | $ 120,000,000 | ||
Lease description | Lease terms may contain renewal and extension options or early termination features. Generally, these options do not impact the lease term because TMCC is not reasonably certain that it will exercise the options. These lease agreements do not impose restrictions on our ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements, nor do they have residual value guarantees. We exclude from our Consolidated Balance Sheets leases with a term equal to one year or less and do not separate non-lease components from our real estate leases. | ||
Indemnification provisions | $ 0 | $ 0 | |
Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantees of affiliate pollution control and solid waste disposal bonds | $ 100,000,000 | 100,000,000 | |
TMNA [Member] | |||
Commitments And Contingencies [Line Items] | |||
Lease agreement expiration date | Aug. 31, 2032 | ||
Total operating lease expense, including payments to affiliates | $ 36,000,000 | 30,000,000 | $ 30,000,000 |
TMCC-affiliated companies [Member] | |||
Commitments And Contingencies [Line Items] | |||
Commitments under operating lease agreements | 102,000,000 | $ 97,000,000 | |
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 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Commitments under Operating Lease Agreements (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Amounts due on operating lease liabilities | ||
2021 | $ 21 | |
2022 | 23 | |
2023 | 15 | |
2024 | 12 | |
2025 | 10 | |
Thereafter | 58 | |
Total | 139 | |
Present value discount | (19) | |
Total operating lease liability | $ 120 | |
Future minimum lease payments as of March 31, 2019 | ||
2020 | $ 22 | |
2021 | 19 | |
2022 | 20 | |
2023 | 12 | |
2024 | 10 | |
Thereafter | 61 | |
Total | $ 144 |
Commitments and Contingencies_4
Commitments and Contingencies - Summary of Additional Information Related to Operating Lease Agreements (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
ROU assets | $ 114 |
Lease liabilities | $ 120 |
Weighted average remaining lease term (in years) | 9 years 3 months 14 days |
Weighted average discount rate | 3.05% |
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows | $ 23 |
ROU assets obtained in exchange for operating lease obligations | $ 17 |
Pension and Other Benefits Pl_2
Pension and Other Benefits Plans - Additional Information (Details) - TMNA [Member] | 12 Months Ended |
Mar. 31, 2020 | |
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% |
Employer matching contribution of contribution percentage per employee | 6.00% |
Maximum annual employer contribution percentage per employee | 4.00% |
Employees contribution vested percentage | 100.00% |
Employer matching contribution, annual vesting percentage | 25.00% |
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 |
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 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Current | |||||||||||
Federal | $ (19) | $ (55) | $ (45) | ||||||||
State | 120 | 76 | (10) | ||||||||
Foreign | 8 | 4 | 3 | ||||||||
Total | 109 | 25 | (52) | ||||||||
Deferred | |||||||||||
Federal | 145 | 207 | (2,625) | ||||||||
State | (141) | (49) | 48 | ||||||||
Foreign | (2) | (1) | 0 | ||||||||
Total | 2 | 157 | (2,577) | ||||||||
Provision (benefit) for income taxes | $ (185) | $ 34 | $ 158 | $ 104 | $ 4 | $ 69 | $ 87 | $ 22 | $ 111 | $ 182 | $ (2,629) |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between U.S. Federal Statutory Tax Rate and Effective Tax Rate (Details) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
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% | 21.00% | 21.00% | 31.60% |
State and local taxes (net of federal tax benefit) | 4.00% | 4.60% | 4.80% | |
Effect of state tax law changes | (3.90%) | (1.30%) | (0.10%) | |
Federal tax credits | (3.70%) | (1.00%) | (1.10%) | |
Tax rate differential from tax loss carryback | (5.60%) | (2.80%) | 0.00% | |
Adjustment for prior year provision to return differences | (1.00%) | (1.40%) | 0.40% | |
Revaluation of federal deferred tax liability from TCJA | 0.00% | 0.00% | (371.60%) | |
Other, net | 0.00% | (0.50%) | (0.60%) | |
Effective tax rate | 10.80% | 18.60% | (336.60%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Line Items] | ||||
Provision for income taxes at U.S. federal statutory tax rate | 35.00% | 21.00% | 21.00% | 31.60% |
Income tax benefit attributable to revaluation of net deferred tax liabilities | $ 2,900,000,000 | |||
Federal tax credits for alternative fuel vehicles and plug-in vehicles | $ 52,000,000 | $ 38,000,000 | ||
Tax credits for research and development | 10,000,000 | 14,000,000 | ||
Tax credits for foreign tax | 1,000,000 | 3,000,000 | ||
Tax credits for alternative minimum tax | 12,000,000 | |||
Valuation Allowance | 13,000,000 | 24,000,000 | ||
Unremitted earnings in foreign subsidiary | 243,000,000 | 233,000,000 | ||
Income tax payable | 47,000,000 | |||
Unrecognized tax benefits would effect on effective tax rate | 17,000,000 | 6,000,000 | 6,000,000 | |
Increase in unrecognized tax benefits | 11,000,000 | |||
Income Tax Penalties Accrued | 0 | 0 | $ 0 | |
Federal [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Operating Loss Carryforwards | $ 0 | 2,100,000,000 | ||
Tax credit carryforward, Expiration Date | Mar. 31, 2028 | |||
State [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Operating Loss Carryforwards | $ 37,000,000 | $ 147,000,000 | ||
Expiration Dates | Mar. 31, 2022 |
Income Taxes - Deferred Tax Lia
Income Taxes - Deferred Tax Liabilities and Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Liabilities: | ||
Lease transactions | $ 5,180 | $ 7,121 |
State taxes, net of federal tax benefit | 629 | 847 |
Insurance dealer commissions | 254 | 235 |
Mark-to-market of investments in marketable securities and derivatives | 14 | 44 |
Other | 83 | 53 |
Deferred tax liabilities | 6,160 | 8,300 |
Assets: | ||
Provision for credit and residual value losses | 370 | 361 |
Deferred costs and fees | 188 | 192 |
Net operating loss and tax credit carryforwards | 100 | 2,297 |
Lease obligations | 25 | 0 |
Other | 32 | 22 |
Deferred tax assets | 715 | 2,872 |
Valuation allowance | (13) | (24) |
Net deferred tax assets | 702 | 2,848 |
Net deferred income tax liability | $ 5,458 | $ 5,452 |
Income Taxes - Deferred Tax L_2
Income Taxes - Deferred Tax Liabilities and Assets (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Unrealized gains or losses included in accumulated other comprehensive income or loss, deferred tax liabilities | $ 4 | $ 1 |
Income Taxes - Change in Unreco
Income Taxes - Change in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | $ 7 | $ 6 | $ 6 |
Increases related to positions taken during the current year | 12 | 1 | 0 |
Balance at end of year | $ 19 | $ 7 | $ 6 |
Related Party Transactions - Re
Related Party Transactions - Related Party Transactions Included in Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Net financing revenues: | ||||||||||||
Depreciation on operating leases | $ (1,900) | $ (1,712) | $ (1,583) | $ (1,625) | $ (1,764) | $ (1,717) | $ (1,662) | $ (1,766) | $ (6,820) | $ (6,909) | $ (7,041) | |
Insurance earned premiums and contract revenues: | ||||||||||||
Insurance premiums and contract revenues | 241 | 231 | 232 | 229 | 228 | 226 | 226 | 224 | 933 | 904 | 882 | |
Expenses: | ||||||||||||
Operating and administrative expenses | $ 460 | $ 406 | $ 358 | $ 337 | $ 366 | $ 347 | $ 348 | $ 324 | 1,561 | 1,385 | 1,357 | |
TMCC-affiliated companies [Member] | ||||||||||||
Net financing revenues: | ||||||||||||
Manufacturer's subvention and other revenues | 2,065 | 1,930 | 1,590 | |||||||||
Depreciation on operating leases | (59) | (24) | (12) | |||||||||
Interest expense: | ||||||||||||
Credit support fees, interest and other expenses | 96 | 96 | 95 | |||||||||
Insurance earned premiums and contract revenues: | ||||||||||||
Insurance premiums and contract revenues | 181 | 181 | 182 | |||||||||
Investment and other income, net: | ||||||||||||
Interest and other income | 26 | 16 | 13 | |||||||||
Expenses: | ||||||||||||
Operating and administrative expenses | 102 | 95 | 80 | |||||||||
Insurance losses and loss adjustment expenses | [1] | $ 0 | $ (3) | $ (3) | ||||||||
[1] | Amount includes the transfer of insurance losses and loss adjustment expenses under a reinsurance contract. |
Related Party Transactions - _2
Related Party Transactions - Related Party Transactions Included in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Cash and cash equivalents | ||
Cash and cash equivalents | $ 6,790 | $ 2,198 |
TMCC-affiliated companies [Member] | ||
Investments in marketable securities | ||
Commercial paper | 601 | 70 |
Finance receivables, net | ||
Accounts receivable | 112 | 150 |
Deferred retail subvention income | (1,065) | (1,257) |
Investments in operating leases, net | ||
Investments in operating leases, net | (100) | 1 |
Deferred lease subvention income | (1,941) | (2,062) |
Other assets | ||
Notes receivable | 1,175 | 601 |
Other receivables, net | 97 | 11 |
Other liabilities | ||
Unearned affiliate insurance premiums and contract revenues | 344 | 337 |
Other payables, net | 220 | 147 |
Notes payable | 3,032 | 16 |
Commercial paper [Member] | TMCC-affiliated companies [Member] | ||
Cash and cash equivalents | ||
Cash and cash equivalents | $ 276 | $ 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | May 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Subvention support receivable | $ 113,000,000 | $ 113,000,000 | $ 171,000,000 | |
Operating lease right-of-use assets | 114,000,000 | 114,000,000 | ||
Operating lease liabilities | 120,000,000 | 120,000,000 | ||
Accounting Standards Update 2016-02 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating lease right-of-use assets | 85,000,000 | 85,000,000 | ||
Operating lease liabilities | 85,000,000 | 85,000,000 | ||
Three Year Revolving Credit Facility Expiring 2022 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Maximum borrowing capacity | 5,000,000,000 | 5,000,000,000 | ||
Credit facilities amount outstanding | 3,000,000,000 | $ 3,000,000,000 | ||
Credit facility, maturity date | Sep. 30, 2020 | |||
Financing Support from Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Maximum borrowing capacity | 8,400,000,000 | $ 8,400,000,000 | 8,500,000,000 | |
Financing Support to Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Maximum borrowing capacity | 6,800,000,000 | 6,800,000,000 | 5,400,000,000 | |
Toyota Financial Services Mexico, S.A. de C.V. [Member] | Financing Support to Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Increase in financing support available to affiliates | $ 1,500,000,000 | |||
Toyota Motor Sales, U.S.A., Inc. [Member] | Three Year Revolving Credit Facility Expiring 2022 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Credit facilities amount outstanding | $ 3,000,000,000 | 3,000,000,000 | ||
Credit facility, interest rate | 1.86% | |||
Credit facility, maturity date | Sep. 30, 2020 | |||
TFSB [Member] | Residential Mortgage [Member] | Other Financing Support Arrangements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Annual maximum participation | $ 60,000,000 | 60,000,000 | ||
Loans purchased | $ 22,000,000 | $ 23,000,000 | ||
TMNA [Member] | Operational Support Arrangements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Lease agreement expiration year | 2032 | |||
TMNA [Member] | Operational Support Arrangements [Member] | Customer Service Center [Member] | ||||
Related Party Transaction [Line Items] | ||||
Lease agreement expiration year | 2029 | |||
TMNA [Member] | Operational Support Arrangements [Member] | Dallas Data Center [Member] | ||||
Related Party Transaction [Line Items] | ||||
Lease agreement expiration year | 2026 | |||
TMIS [Member] | Operational Support Arrangements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Risk ceded to reinsurers | 99.00% |
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, 2020 | Mar. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | $ 1,401 | $ 633 |
Equity investments | 2,419 | 2,275 |
Investments in marketable securities total | 3,820 | 2,908 |
U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 176 | 212 |
Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 11 | 11 |
Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 197 | 162 |
U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 49 | 35 |
Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 1 | 1 |
Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 45 | 39 |
Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 72 | 53 |
Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 1,401 | 633 |
Equity investments | 2,419 | 2,275 |
Investments in marketable securities total | 3,820 | 2,908 |
Derivative assets | 51 | 61 |
Counterparty netting and collateral | (1,386) | (483) |
Assets at fair value | 3,871 | 2,969 |
Counterparty netting and collateral | 3,071 | 1,381 |
Liabilities at fair value | (45) | (26) |
Net assets at fair value | 3,826 | 2,943 |
Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 249 | 50 |
Recurring [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 601 | 70 |
Recurring [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 176 | 212 |
Recurring [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 11 | 11 |
Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 197 | 162 |
Recurring [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 49 | 35 |
Recurring [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 1 | 1 |
Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 45 | 39 |
Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 72 | 53 |
Recurring [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 1,673 | 1,586 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Equity investments | 0 | 0 |
Investments in marketable securities total | 0 | 0 |
Derivative assets | (1,386) | (483) |
Counterparty netting and collateral | (1,386) | (483) |
Assets at fair value | (1,386) | (483) |
Counterparty netting and collateral | 3,071 | 1,381 |
Liabilities at fair value | 3,071 | 1,381 |
Net assets at fair value | 1,685 | 898 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | 0 |
Recurring [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 27 | 72 |
Derivative liabilities | (1,290) | (785) |
Recurring [Member] | Foreign currency swaps [Member] | Counterparty Netting & Collateral [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,410 | 472 |
Derivative liabilities | (1,826) | (622) |
Recurring [Member] | Interest rate swaps [Member] | Counterparty Netting & Collateral [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 174 | 194 |
Equity investments | 1,673 | 1,586 |
Investments in marketable securities total | 1,847 | 1,780 |
Derivative assets | 0 | 0 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 1,847 | 1,780 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | 0 | 0 |
Net assets at fair value | 1,847 | 1,780 |
Recurring [Member] | Level 1 [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 174 | 194 |
Recurring [Member] | Level 1 [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 1,673 | 1,586 |
Recurring [Member] | Level 1 [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 1,109 | 346 |
Equity investments | 0 | 0 |
Investments in marketable securities total | 1,109 | 346 |
Derivative assets | 1,437 | 543 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 2,546 | 889 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | (3,116) | (1,407) |
Net assets at fair value | (570) | (518) |
Recurring [Member] | Level 2 [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 249 | 50 |
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 securities | 601 | 70 |
Recurring [Member] | Level 2 [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 2 | 18 |
Recurring [Member] | Level 2 [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 11 | 11 |
Recurring [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 197 | 162 |
Recurring [Member] | Level 2 [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 49 | 35 |
Recurring [Member] | Level 2 [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 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 securities | 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 securities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 27 | 72 |
Derivative liabilities | (1,290) | (785) |
Recurring [Member] | Level 2 [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,410 | 471 |
Derivative liabilities | (1,826) | (622) |
Recurring [Member] | Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 118 | 93 |
Equity investments | 0 | 0 |
Investments in marketable securities total | 118 | 93 |
Derivative assets | 0 | 1 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 118 | 94 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | 0 | 0 |
Net assets at fair value | 118 | 94 |
Recurring [Member] | Level 3 [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 1 | 1 |
Recurring [Member] | Level 3 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 45 | 39 |
Recurring [Member] | Level 3 [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 72 | 53 |
Recurring [Member] | Level 3 [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 1 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Fixed income mutual funds measured at net asset value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 746 | 689 |
Recurring [Member] | Fixed income mutual funds measured at net asset value [Member] | Counterparty Netting & Collateral [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | $ 0 | $ 0 |
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, 2020 | Mar. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | $ 94 | $ 49 |
Total gains (losses) included in net income | 15 | 29 |
Total gains (losses) included in other comprehensive income | (6) | 1 |
Purchases | 48 | 48 |
Issuances | 0 | 0 |
Sales | 0 | (4) |
Settlements | (8) | (29) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | (25) | 0 |
Fair value | 118 | 94 |
The amount of change in unrealized gains (losses) included in net income attributable to assets held at the reporting date | 18 | 29 |
Available-for-sale debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | 93 | 70 |
Total gains (losses) included in net income | (3) | 0 |
Total gains (losses) included in other comprehensive income | (6) | 1 |
Purchases | 48 | 48 |
Issuances | 0 | 0 |
Sales | 0 | (4) |
Settlements | (14) | (22) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | 118 | 93 |
The amount of change in unrealized gains (losses) included in net income attributable to assets held at the reporting date | 0 | 0 |
Available-for-sale debt securities [Member] | Mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | 40 | 31 |
Total gains (losses) included in net income | (1) | 0 |
Total gains (losses) included in other comprehensive income | (2) | 0 |
Purchases | 10 | 16 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | (1) | (7) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | 46 | 40 |
The amount of change in unrealized gains (losses) included in net income attributable to assets held at the reporting date | 0 | 0 |
Available-for-sale debt securities [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | 53 | 39 |
Total gains (losses) included in net income | (2) | 0 |
Total gains (losses) included in other comprehensive income | (4) | 1 |
Purchases | 38 | 32 |
Issuances | 0 | 0 |
Sales | 0 | (4) |
Settlements | (13) | (15) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | 72 | 53 |
The amount of change in unrealized gains (losses) included in net income attributable to assets held at the reporting date | 0 | 0 |
Interest rate swaps [Member] | Derivative [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
The amount of change in unrealized gains (losses) included in net income attributable to assets held at the reporting date | 18 | 29 |
Fair value | 1 | (21) |
Total gains (losses) included in net income | 18 | 29 |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 6 | (7) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (25) | 0 |
Fair value | $ 0 | $ 1 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets and Liabilities Not Carried at Fair Value on Recurring Basis on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Carrying value [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | $ 83,172 | $ 80,521 |
Carrying value [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 14,568 | 12,401 |
Fair value [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 82,989 | 81,369 |
Fair value [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 14,608 | 12,428 |
Fair value [Member] | Level 1 [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 1 [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 2 [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 82,429 | 79,056 |
Fair value [Member] | Level 2 [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 3 [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 560 | 2,313 |
Fair value [Member] | Level 3 [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 14,608 | 12,428 |
Retail Loan [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 56,360 | 53,013 |
Retail Loan [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 57,303 | 53,247 |
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 | 57,303 | 53,247 |
Wholesale [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 9,672 | 10,293 |
Wholesale [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 9,637 | 10,369 |
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 | 9,637 | 10,369 |
Real estate [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 4,544 | 4,550 |
Real estate [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 4,140 | 4,534 |
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 | 4,140 | 4,534 |
Working capital [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 3,308 | 2,510 |
Working capital [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 2,811 | 2,554 |
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 | $ 2,811 | $ 2,554 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Finance receivables from related party | $ 109 | $ 148 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | $ 3,004 | $ 3,044 | $ 3,018 | $ 2,963 | $ 2,946 | $ 2,968 | $ 2,890 | $ 2,836 | $ 12,029 | $ 11,640 | $ 10,717 |
Depreciation on operating leases | 1,900 | 1,712 | 1,583 | 1,625 | 1,764 | 1,717 | 1,662 | 1,766 | 6,820 | 6,909 | 7,041 |
Interest expense | 769 | 755 | 613 | 697 | 664 | 699 | 702 | 682 | 2,834 | 2,747 | 1,851 |
Net financing revenues | 335 | 577 | 822 | 641 | 518 | 552 | 526 | 388 | 2,375 | 1,984 | 1,825 |
Insurance earned premiums and contract revenues | 241 | 231 | 232 | 229 | 228 | 226 | 226 | 224 | 933 | 904 | 882 |
Investment and other income, net | 50 | 57 | 97 | 118 | 128 | 68 | 56 | 40 | 322 | 292 | 257 |
Net financing revenues and other revenues | 626 | 865 | 1,151 | 988 | 874 | 846 | 808 | 652 | 3,630 | 3,180 | 2,964 |
Expenses: | |||||||||||
Provision for credit losses | 326 | 128 | 61 | 75 | 106 | 110 | 67 | 89 | 590 | 372 | 401 |
Operating and administrative expenses | 460 | 406 | 358 | 337 | 366 | 347 | 348 | 324 | 1,561 | 1,385 | 1,357 |
Insurance losses and loss adjustment expenses | 111 | 116 | 115 | 113 | 103 | 106 | 112 | 125 | 455 | 446 | 425 |
Total expenses | 897 | 650 | 534 | 525 | 575 | 563 | 527 | 538 | 2,606 | 2,203 | 2,183 |
Income before income taxes | (271) | 215 | 617 | 463 | 299 | 283 | 281 | 114 | 1,024 | 977 | 781 |
Provision (benefit) for income taxes | (185) | 34 | 158 | 104 | 4 | 69 | 87 | 22 | 111 | 182 | (2,629) |
Net income | (86) | $ 181 | $ 459 | $ 359 | 295 | $ 214 | $ 194 | $ 92 | 913 | 795 | 3,410 |
Total assets | 125,555 | 116,516 | 125,555 | 116,516 | 120,546 | ||||||
Intercompany Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | 0 | 0 | 0 | ||||||||
Depreciation on operating leases | 0 | 0 | 0 | ||||||||
Interest expense | (20) | (22) | (12) | ||||||||
Net financing revenues | 20 | 22 | 12 | ||||||||
Insurance earned premiums and contract revenues | 0 | 0 | 0 | ||||||||
Investment and other income, net | (20) | (22) | (12) | ||||||||
Net financing revenues and other revenues | 0 | 0 | 0 | ||||||||
Expenses: | |||||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Operating and administrative expenses | 0 | 0 | 0 | ||||||||
Insurance losses and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Income before income taxes | 0 | 0 | 0 | ||||||||
Provision (benefit) for income taxes | 0 | 0 | 0 | ||||||||
Net income | 0 | 0 | 0 | ||||||||
Total assets | (1,145) | (1,165) | (1,145) | (1,165) | (1,087) | ||||||
Finance Operations [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | 12,029 | 11,640 | 10,717 | ||||||||
Depreciation on operating leases | 6,820 | 6,909 | 7,041 | ||||||||
Interest expense | 2,854 | 2,769 | 1,863 | ||||||||
Net financing revenues | 2,355 | 1,962 | 1,813 | ||||||||
Insurance earned premiums and contract revenues | 0 | 0 | 0 | ||||||||
Investment and other income, net | 155 | 188 | 140 | ||||||||
Net financing revenues and other revenues | 2,510 | 2,150 | 1,953 | ||||||||
Expenses: | |||||||||||
Provision for credit losses | 590 | 372 | 401 | ||||||||
Operating and administrative expenses | 1,197 | 1,038 | 1,028 | ||||||||
Insurance losses and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Total expenses | 1,787 | 1,410 | 1,429 | ||||||||
Income before income taxes | 723 | 740 | 524 | ||||||||
Provision (benefit) for income taxes | 39 | 147 | (2,654) | ||||||||
Net income | 684 | 593 | 3,178 | ||||||||
Total assets | 121,180 | 112,615 | 121,180 | 112,615 | 116,942 | ||||||
Insurance Operations [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | 0 | 0 | 0 | ||||||||
Depreciation on operating leases | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Net financing revenues | 0 | 0 | 0 | ||||||||
Insurance earned premiums and contract revenues | 933 | 904 | 882 | ||||||||
Investment and other income, net | 187 | 126 | 129 | ||||||||
Net financing revenues and other revenues | 1,120 | 1,030 | 1,011 | ||||||||
Expenses: | |||||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Operating and administrative expenses | 364 | 347 | 329 | ||||||||
Insurance losses and loss adjustment expenses | 455 | 446 | 425 | ||||||||
Total expenses | 819 | 793 | 754 | ||||||||
Income before income taxes | 301 | 237 | 257 | ||||||||
Provision (benefit) for income taxes | 72 | 35 | 25 | ||||||||
Net income | 229 | 202 | 232 | ||||||||
Total assets | $ 5,520 | $ 5,066 | $ 5,520 | $ 5,066 | $ 4,691 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Insurance earned premiums and contract revenues | $ 673 | |
Other liabilities [Member] | ||
Segment Reporting Information [Line Items] | ||
Unearned insurance premiums and contract revenues | $ 2,400 | $ 2,200 |
Accounting Standards Update 2014-09 [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of insurance earned premiums and contract revenues accounted under revenue recognition | 84.00% | 84.00% |
Minimum [Member] | ||
Segment Reporting Information [Line Items] | ||
Insurance Policy Term | 3 months | |
Maximum [Member] | ||
Segment Reporting Information [Line Items] | ||
Insurance Policy Term | 120 months |
Segment Information - Additio_2
Segment Information - Additional Information (Details1) $ in Millions | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation, amount | $ 700 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 | |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1,700 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Selected Quarterly Financial Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Financing revenues: | |||||||||||
Operating lease | $ 2,182 | $ 2,212 | $ 2,197 | $ 2,184 | $ 2,189 | $ 2,212 | $ 2,167 | $ 2,126 | $ 8,775 | $ 8,694 | $ 8,167 |
Retail | 670 | 661 | 638 | 589 | 575 | 578 | 547 | 535 | 2,558 | 2,235 | 1,974 |
Dealer | 152 | 171 | 183 | 190 | 182 | 178 | 176 | 175 | 696 | 711 | 576 |
Total financing revenues | 3,004 | 3,044 | 3,018 | 2,963 | 2,946 | 2,968 | 2,890 | 2,836 | 12,029 | 11,640 | 10,717 |
Depreciation on operating leases | 1,900 | 1,712 | 1,583 | 1,625 | 1,764 | 1,717 | 1,662 | 1,766 | 6,820 | 6,909 | 7,041 |
Interest expense | 769 | 755 | 613 | 697 | 664 | 699 | 702 | 682 | 2,834 | 2,747 | 1,851 |
Net financing revenues | 335 | 577 | 822 | 641 | 518 | 552 | 526 | 388 | 2,375 | 1,984 | 1,825 |
Insurance earned premiums and contract revenues | 241 | 231 | 232 | 229 | 228 | 226 | 226 | 224 | 933 | 904 | 882 |
Investment and other income, net | 50 | 57 | 97 | 118 | 128 | 68 | 56 | 40 | 322 | 292 | 257 |
Net financing revenues and other revenues | 626 | 865 | 1,151 | 988 | 874 | 846 | 808 | 652 | 3,630 | 3,180 | 2,964 |
Expenses: | |||||||||||
Provision for credit losses | 326 | 128 | 61 | 75 | 106 | 110 | 67 | 89 | 590 | 372 | 401 |
Operating and administrative | 460 | 406 | 358 | 337 | 366 | 347 | 348 | 324 | 1,561 | 1,385 | 1,357 |
Insurance losses and loss adjustment expenses | 111 | 116 | 115 | 113 | 103 | 106 | 112 | 125 | 455 | 446 | 425 |
Total expenses | 897 | 650 | 534 | 525 | 575 | 563 | 527 | 538 | 2,606 | 2,203 | 2,183 |
Income before income taxes | (271) | 215 | 617 | 463 | 299 | 283 | 281 | 114 | 1,024 | 977 | 781 |
Provision (benefit) for income taxes | (185) | 34 | 158 | 104 | 4 | 69 | 87 | 22 | 111 | 182 | (2,629) |
Net income | $ (86) | $ 181 | $ 459 | $ 359 | $ 295 | $ 214 | $ 194 | $ 92 | $ 913 | $ 795 | $ 3,410 |