American Honda Finance 10-K 23 Jun 23 2023 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Mar. 31, 2023	May 31, 2023	Sep. 30, 2022
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Mar. 31, 2023
Current Fiscal Year End Date	--03-31
Document Transition Report	false
Entity File Number	001-36111
Entity Registrant Name	AMERICAN HONDA FINANCE CORPORATION
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	95-3472715
Entity Address, Address Line One	1919 Torrance Blvd.
Entity Address, City or Town	Torrance
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90501
City Area Code	310
Local Phone Number	972-2288
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,660,000
Entity Public Float			$ 0
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Central Index Key	0000864270
0.750% Medium-Term Notes, Series A Due January 17, 2024
Entity Information [Line Items]
Title of 12(b) Security	0.750% Medium-Term Notes, Series ADue January 17, 2024
Trading Symbol	HMC/26A
Security Exchange Name	NYSE
1.950% Medium-Term Notes, Series A Due October 18, 2024
Entity Information [Line Items]
Title of 12(b) Security	1.950% Medium-Term Notes, Series ADue October 18, 2024
Trading Symbol	HMC/24D
Security Exchange Name	NYSE
0.750% Medium-Term Notes, Series A Due November 25, 2026
Entity Information [Line Items]
Title of 12(b) Security	0.750% Medium-Term Notes, Series ADue November 25, 2026
Trading Symbol	HMC/26A
Security Exchange Name	NYSE
0.300% Medium-Term Notes, Series A Due July 7, 2028
Entity Information [Line Items]
Title of 12(b) Security	0.300% Medium-Term Notes, Series ADue July 7, 2028
Trading Symbol	HMC/28A
Security Exchange Name	NYSE
1.500% Medium-Term Notes, Series A Due October 19, 2027
Entity Information [Line Items]
Title of 12(b) Security	1.500% Medium-Term Notes, Series ADue October 19, 2027
Trading Symbol	HMC/27A
Security Exchange Name	NYSE

Audit Information

Audit Information	12 Months Ended
	Mar. 31, 2023
Audit Information [Abstract]
Auditor Name	KPMG LLP
Auditor Location	Los Angeles, CA
Auditor Firm ID	185

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Assets
Cash and cash equivalents	$ 1,544	$ 2,607
Finance receivables, net of allowance for credit losses of $253 and $211	37,585	37,481
Investment in operating leases, net	27,778	33,624
Due from Parent and affiliated companies	66	62
Income taxes receivable	28	0
Other assets	757	1,533
Derivative instruments	1,133	971
Total assets	68,891	76,278
Liabilities and Equity
Debt	40,334	46,939
Due to Parent and affiliated companies	161	125
Income taxes payable	211	530
Deferred income taxes	6,287	6,803
Other liabilities	1,137	1,310
Derivative instruments	1,736	1,119
Total liabilities	49,866	56,826
Commitments and contingencies (Note 9)
Shareholder’s equity:
Common stock, $100 par value. Authorized 15,000,000 shares; issued and outstanding      13,660,000 shares as of March 31, 2023 and 2022	1,366	1,366
Retained earnings	16,688	16,901
Accumulated other comprehensive loss	(135)	(38)
Total shareholder’s equity	17,919	18,229
Noncontrolling interest in subsidiary	1,106	1,223
Total equity	19,025	19,452
Total liabilities and equity	68,891	76,278
Variable Interest Entity, Primary Beneficiary
Assets
Finance receivables, net of allowance for credit losses of $253 and $211	7,216	9,033
Investment in operating leases, net	168	294
Other assets	433	380
Total assets	7,817	9,707
Liabilities and Equity
Debt	6,927	8,888
Other liabilities	7	5
Total liabilities	$ 6,934	$ 8,893

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 253	$ 211
Common stock, par value (in dollars per share)	$ 100	$ 100
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	13,660,000	13,660,000
Common stock, shares outstanding (in shares)	13,660,000	13,660,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Retail	$ 1,468	$ 1,599	$ 1,664
Dealer	116	67	107
Operating leases	6,600	7,778	7,765
Total revenues	8,184	9,444	9,536
Leased vehicle expenses	4,891	5,630	5,580
Interest expense	887	713	893
Net revenues	2,406	3,101	3,063
Other income, net	92	50	64
Total net revenues	2,498	3,151	3,127
Expenses:
General and administrative expenses	485	479	471
Provision for credit losses	146	(22)	(69)
Early termination loss on operating leases	38	16	(156)
(Gain)/Loss on derivative instruments	697	571	(229)
(Gain)/Loss on foreign currency revaluation of debt	(410)	(470)	430
Total expenses	956	574	447
Income before income taxes	1,542	2,577	2,680
Income tax expense	403	675	647
Net income	1,139	1,902	2,033
Less: Net income attributable to noncontrolling interest	86	134	121
Net income attributable to    American Honda Finance Corporation	$ 1,053	$ 1,768	$ 1,912

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 1,139	$ 1,902	$ 2,033
Other comprehensive income/(loss):
Foreign currency translation adjustment	(186)	11	252
Comprehensive income	953	1,913	2,285
Less: Comprehensive (loss)/income attributable to    noncontrolling interest	(3)	139	242
Comprehensive income attributable to    American Honda Finance Corporation	$ 956	$ 1,774	$ 2,043

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 19,452	$ 19,165	$ 17,563
Accounting Standards Update [Extensible List]				Accounting Standards Update 2016-13 [Member]
Net income	1,139	1,902	2,033
Other comprehensive income (loss)	(186)	11	252
Dividends declared	(1,380)	(1,626)	(608)
Ending balance	19,025	19,452	19,165	$ 17,563
Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			(75)
Ending balance				(75)
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	16,901	16,626	15,395
Net income	1,053	1,768	1,912
Dividends declared	(1,266)	(1,493)	(608)
Ending balance	16,688	16,901	16,626	15,395
Retained earnings | Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			(73)
Ending balance				(73)
Accumulated other comprehensive income/(loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(38)	(44)	(175)
Other comprehensive income (loss)	(97)	6	131
Ending balance	(135)	(38)	(44)	(175)
Common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,366	1,366	1,366
Ending balance	1,366	1,366	1,366	1,366
Noncontrolling interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,223	1,217	977
Net income	86	134	121
Other comprehensive income (loss)	(89)	5	121
Dividends declared	(114)	(133)	0
Ending balance	$ 1,106	$ 1,223	1,217	977
Noncontrolling interest | Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ (2)
Ending balance				$ (2)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions		12 Months Ended
		Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income		$ 1,139	$ 1,902	$ 2,033
Adjustments to reconcile net income to net cash provided by operating activities:
Debt and derivative instrument valuation adjustments		420	(42)	(85)
Provision for credit losses		146	(22)	(69)
Early termination loss on operating leases		38	16	(156)
Depreciation on leased vehicles		4,872	5,676	5,669
Accretion of unearned subsidy income		(1,042)	(1,418)	(1,484)
Amortization of deferred dealer participation and other deferred costs		319	375	367
Gain on disposition of lease vehicles		(115)	(197)	(229)
Deferred income taxes		(477)	(232)	427
Changes in operating assets and liabilities:
Income taxes receivable/payable		(347)	325	103
Other assets		840	(558)	38
Accrued interest/discounts on debt		86	15	32
Other liabilities		20	(533)	55
Due to/from Parent and affiliated companies		34	149	(66)
Net cash provided by operating activities		5,933	5,456	6,635
Cash flows from investing activities:
Finance receivables acquired		(17,297)	(18,162)	(21,778)
Principal collected on finance receivables		17,353	20,026	18,526
Net change in wholesale loans		(696)	1,942	1,394
Purchase of operating lease vehicles		(9,306)	(15,278)	(16,023)
Disposal of operating lease vehicles		10,123	11,746	10,128
Cash received for unearned subsidy income		640	1,054	1,333
Other investing activities, net		(8)	(10)	(12)
Net cash provided by/(used in) investing activities		809	1,318	(6,432)
Cash flows from financing activities:
Proceeds from issuance of commercial paper		29,440	26,995	39,628
Paydown of commercial paper		(25,331)	(30,234)	(39,665)
Proceeds from issuance of short-term debt		0	350	414
Paydown of short-term debt		(350)	(440)	(633)
Proceeds from issuance of related party debt		0	0	1,510
Paydown of related party debt		0	0	(2,082)
Proceeds from issuance of medium term notes and other debt		2,359	7,087	11,472
Paydown of medium term notes and other debt		(10,401)	(8,297)	(9,121)
Proceeds from issuance of secured debt		2,869	5,984	4,737
Paydown of secured debt		(4,821)	(6,005)	(5,713)
Dividends paid		(1,513)	(1,493)	(608)
Net cash used in financing activities		(7,748)	(6,053)	(61)
Effect of exchange rate changes on cash and cash equivalents		(2)	1	23
Net (decrease)/increase in cash and cash equivalents		(1,008)	722	165
Cash and cash equivalents and restricted cash at beginning of year		2,972	2,250	2,085
Cash and cash equivalents and restricted cash at end of year		1,964	2,972	2,250
Supplemental disclosures of cash flow information:
Interest paid		833	535	718
Income taxes paid		1,230	590	209
Cash and cash equivalents		1,544	2,607	1,870
Restricted cash included in other assets	[1]	420	365	380
Total cash, cash equivalents, and restricted cash		$ 1,964	$ 2,972	$ 2,250
[1]Restricted cash balances relate primarily to securitization arrangements (Note 10).

Summary of Business and Signifi

Summary of Business and Significant Accounting Policies	12 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Business and Significant Accounting Policies	Summary of Business and Significant Accounting Policies American Honda Finance Corporation (AHFC) is a wholly-owned subsidiary of American Honda Motor Co., Inc. (AHM or the Parent). Honda Canada Finance Inc. (HCFI) is a majority-owned subsidiary of AHFC. Noncontrolling interest in HCFI is held by Honda Canada Inc. (HCI), an affiliate of AHFC. AHM is a wholly-owned subsidiary and HCI is an indirect wholly-owned subsidiary of Honda Motor Co., Ltd. (HMC). AHM and HCI are the sole authorized distributors of Honda and Acura products, including motor vehicles, parts, and accessories in the United States and Canada. Unless otherwise indicated by the context, all references to the “Company” in this report include AHFC and its consolidated subsidiaries (refer Note 1(b) Principles of Consolidation below), and references to “AHFC” refer solely to American Honda Finance Corporation (excluding AHFC’s subsidiaries). The Company provides various forms of financing to authorized independent dealers of Honda and Acura products and their customers in the United States and Canada. The Company also finances a limited number of vehicles other than Honda and Acura products. The Company’s financing products include the following categories: Retail Loans – The Company acquires retail installment contracts from dealers who originate the contracts with consumers. Retail loans are collateralized by liens on the related vehicles or equipment. Retail loan terms range primarily from two Retail Leases – The Company acquires closed-end vehicle lease contracts between dealers and their customers. The dealer assigns all of its rights, title, and interest in the lease and motor vehicle to the Company upon acquisition. Lease terms range primarily from two Dealer Loans – The Company provides wholesale and commercial loans to dealers. Wholesale loans are used by dealers to finance the purchase of inventory. The Company retains purchase money security interest in all inventory financed; however, the Company has no right to recover a product sold to consumers in the ordinary course of business. The Company has agreements with AHM and HCI, which provide for their repurchase of new, unused, and unregistered vehicles or equipment that have been repossessed from a dealer who defaults on a wholesale loan. Commercial loans are used primarily for financing dealership property and working capital purposes. Commercial loans are generally secured by the associated properties, as well as corporate or personal guarantees from, or on behalf of, the related dealer’s principals. The Company’s finance receivables and investment in operating leases are geographically diversified throughout the United States and Canada. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated balance sheets and revenues and expenses for the applicable periods. Those estimates include, among other things, the residual value estimates of lease vehicles and estimates for the allowances for credit losses and early termination losses on operating leases. Actual results could differ significantly from these estimates. (a) Business Risks The Company’s business is substantially dependent upon the sale of Honda and Acura products. The financing business is also highly competitive. The Company’s competitors and potential competitors include national, regional, and local finance companies and other types of financial services companies, such as commercial banks, savings and loan associations, leasing companies, online banks and credit unions. The Company’s future profitability will be largely dependent upon its ability to provide cost-competitive, quality financial products and services to its customers and to the availability and cost of its capital in relation to that of its competitors. The Company’s liquidity is largely dependent on access to credit markets. The Company has been able to meet funding needs through diversified funding sources. Higher than expected credit losses and lower than anticipated lease residual values due to prolonged periods of negative economic and market conditions can adversely affect the Company’s financial position, results of operations, and related cash flows. The Company manages these risks with purchasing and residual value setting standards, collection efforts, and lease remarketing programs. Refer to Note 1( e ) for additional discussion on the allowance for credit losses and Note 1( f ) for additional discussion on the determination of lease residual values. The Company is exposed to market risks, principally interest rate and foreign currency risks, and utilizes derivative instruments to manage those risks. Although the use of derivative instruments mitigates a substantial portion of these risks, not all risk is eliminated. Refer to Note 1( l ) for additional discussion on derivative instruments. (b) Principles of Consolidation The consolidated financial statements include the accounts of AHFC and its subsidiaries. All subsidiaries are wholly-owned, except for HCFI, which is majority-owned (52.33% as of March 31, 2023 and 2022). The Company also consolidates variable interest entities (VIEs) where the Company is the primary beneficiary. All consolidated VIEs are statutory special purpose entities (SPEs) formed by the Company to accommodate securitization structures. All significant intercompany balances and transactions have been eliminated upon consolidation. (c) Comprehensive Income Comprehensive income consists of net income and the effect of foreign currency translation adjustments and is presented in the consolidated statements of comprehensive income. (d) Cash and Cash Equivalents Cash and cash equivalents include cash on hand and short-term, highly liquid investments with original maturities of three months or less. (e) Finance Receivables and Allowance for Credit Losses Finance Receivables Finance receivables include retail loan and dealer loan portfolio segments. The retail loan portfolio segment consists of retail installment contracts with consumers. The dealer loan portfolio segment consists of wholesale and commercial loans with dealers. Finance receivables are measured at amortized cost, less the allowance for credit losses. The amortized cost basis includes the unpaid principal balance, unearned origination fees, and deferred origination costs. Origination fees include payments received from AHM and HCI for incentive programs (refer to Note 6 regarding these related party transactions). Origination costs include payments made to dealers for rate participation and other initial direct costs (IDC). Accrued interest receivable balances are presented within other assets. Revenue on finance receivables includes contractual interest income, accretion of origination fees, and amortization of origination costs. Contractual interest income is accrued using the simple interest method. Origination fees and costs are recognized in revenue using the interest method over the contractual life of the finance receivables. The recognition of finance revenue on retail loans is discontinued when the underlying collateral is repossessed or accounts are charged off. The recognition of finance revenue on dealer loans is discontinued when they are 90 days or more past due or when it has been determined the Company will be unable to collect all principal and interest payments. Retail loans are charged off when they become 120 days past due or earlier if they have been specifically identified as uncollectible. Dealer loans are charged off when they have been individually identified as uncollectible. Charge-offs of the amortized cost basis are recognized as a reduction to the allowance for credit losses. Subsequent recoveries are credited to the allowance. Charge-offs of accrued interest receivables are reversed against finance revenue. Allowance for Credit Losses The allowance for credit losses is management’s estimate of lifetime expected credit losses on the amortized cost basis of finance receivables which is deducted from or, in the case of expected net recoveries, added to the amortized cost. The Company has elected not to measure an allowance for credit losses for accrued interest receivable. The allowance is measured on an undiscounted basis. Management evaluates the allowance, at minimum, on a quarterly basis. Retail loans are evaluated on a collective basis and grouped into pools with similar risk characteristics such as origination quarter, internal credit grade at origination, product type, and original term. The allowance for retail loans is measured using econometric regression models that correlate vintage age, credit quality, economic, and other variables to historical vintage-level credit loss performance. Statistically relevant economic factors such as unemployment rates, bankruptcies, and used vehicle price indexes are applied in the analysis of the economic environment. Current and forecasted economic conditions are applied in the models to project monthly gross loss rates in terms of origination dollars for the remaining contractual life of each vintage. Recoveries are projected as a percentage of the cumulative forecasted loss dollar of each vintage. The contractual term is the estimated lifetime of retail loans and is considered to be a reasonable and supportable forecast period of future economic conditions. Economic forecasts and macroeconomic variables are obtained from a third party economic research firm that extend through the lifetime of retail loans and converge to long-run equilibrium trends. Baseline forecasts that reflect the most likely economic future is the single economic scenario applied in the models. Qualitative adjustments may also be applied if management believes the quantitative models do not reflect the best estimate of lifetime expected credit losses. Dealer loans are evaluated on a collective basis if they have not been specifically identified as impaired. Collectively evaluated dealer loans are grouped by loan type and internal risk ratings and the allowance is measured primarily using historical loss rates. Dealer loans that have been specifically identified as impaired are excluded from the collective assessment and the allowance is measured at the individual dealer level. Dealer loans are considered impaired when it is probable that the Company will be unable to collect the amounts due according to the terms of the applicable contracts. The Company’s determination of whether dealer loans are impaired is based on evaluations of the dealership's payment history, financial condition, ability to perform under the terms of the loan agreements, and collateral values, as applicable. Expected credit losses on impaired dealer loans are measured based upon the specific circumstances of each dealer considering all expected sources of repayment or the fair value of the collateral if foreclosure is probable. Prior to April 1, 2020, the allowance for credit losses was management's estimate of probable losses incurred on finance receivables. The allowance was based on management's evaluation of many factors, including the Company's historical credit loss experience, the value of the underlying collateral, delinquency trends, and economic conditions. Retail loans were collectively evaluated for impairment. Dealer loans that had not been specifically identified as impaired were collectively evaluated for impairment. Dealer loans were individually evaluated for impairment when specifically identified as impaired. (f) Investment in Operating Leases and Determination of Lease Residual Values The investment in operating leases is reported at cost, less accumulated depreciation and impairment losses, and net of unearned origination fees and deferred origination costs. Origination fees include payments received from AHM and HCI for incentive programs (refer to Note 6 regarding these related party transactions). Origination costs include payments made for dealer participation. Operating lease revenue is recognized on a straight-line basis over the lease term. Operating lease revenue includes accretion of origination fees, net of dealer rate participation amortization, which are also recognized on a straight-line basis over the lease term. Operating lease vehicles are depreciated on a straight-line basis over the lease term to the lower of contract residual values or estimated end of term residual values. Adjustments to estimated end of term residual values are made prospectively on a straight-line basis over the remaining lease term. Contractual residual values of lease vehicles are determined at lease inception based on the Company's expectations of used vehicle values at the end of their lease terms. Lease customers have the option at the end of the lease term to return the vehicle to the dealer or to buy the vehicle for the contractual residual value (or if purchased prior to lease maturity, for the outstanding contractual balance). Returned lease vehicles can be purchased by the grounding dealer for the contractual residual value (or if purchased prior to lease maturity, for the outstanding contractual balance) or a market based price. Returned lease vehicles that are not purchased by the grounding dealers are sold through online and physical auctions. The Company is exposed to a risk of loss on the disposition of returned lease vehicles if the market values of leased vehicles at the end of their lease terms are less than their contractual residual values. Estimated end of term residual values are dependent on the expected market values of leased vehicles at the end of their lease terms and the percentage of leased vehicles expected to be returned by the lessees. Factors considered in this evaluation include, among other factors, economic conditions, external market information on new and used vehicles, historical trends, and recent auction values. The Company assesses the estimated end of term residual values at minimum on a quarterly basis. A review for impairment of the Company’s operating lease assets is performed whenever events or changes in circumstances indicate that their carrying values may not be recoverable. Generally, an impairment condition is determined to exist if estimated undiscounted cash flows from the use and eventual disposition of the asset is lower than their carrying value. For the purposes of testing for impairment, operating lease assets are grouped at the lowest level the Company can reasonably estimate cash flows. If impairment conditions are met, impairment losses are measured by the amount carrying values exceed their fair values. A portion of the Company’s operating leases is expected to terminate prior to their scheduled maturities when lessees default on their contractual obligations. Losses are generally realized upon the disposition of the repossessed operating lease vehicles. Operating leases are collectively evaluated to determine the estimated losses incurred using modeling methodologies consistent with those used for retail loans. Estimated early termination losses are recognized as a reduction to the carrying value of operating lease assets. (g) Vehicles Held for Disposition Vehicles held for disposition consist of returned and repossessed vehicles. The vehicles are either sold at used vehicle auctions or purchased by dealers, usually within two months of return or repossession. The vehicles are valued at the lower of their carrying value or estimated fair value, less estimated disposition costs. For returned vehicles, valuation adjustments are recorded as a charge against the gain/loss on disposition of lease vehicles. Valuation adjustments made for repossessed collateral of finance receivables and operating leases are recognized as charges to the allowance for credit loss and estimated early termination losses on operating leases, respectively. (h) Vehicle Service Contract Administration AHFC performed administrative services for vehicle service contracts (VSC) issued by certain subsidiaries of AHM. AHFC received fees for performing the services when the contracts were acquired, which was recognized in other income over the lives of the underlying contracts, proportionate to the anticipated amount of service to be performed. Effective April 1, 2021, the administration of VSCs was transferred to AHM. HCFI performs marketing services for vehicle service contracts issued by HCI. HCFI receives fees as the services are performed, which is recognized in other income. (i) Securitizations and Variable Interest Entities The Company enters into securitization transactions for funding purposes. Securitization transactions involve transferring pools of retail loans and operating leases to bankruptcy-remote SPEs. The SPEs are established to accommodate securitization structures, which have the limited purpose of acquiring assets, issuing asset-backed securities, and making payments on the securities. Assets transferred to SPEs are considered legally isolated from the Company and the claims of the Company’s creditors. The Company continues to service the retail loans and operating leases transferred to the SPEs. Investors in the notes issued by a SPE only have recourse to the assets of such SPE and do not have recourse to the assets of AHFC, HCFI, or our other subsidiaries or to other SPEs. The assets of SPEs are the only source for repayment on the notes. The Company’s securitizations are structured to provide credit enhancements to investors in notes issued by the SPEs. Credit enhancements can include the following: Subordinated certificates – securities issued by the SPEs that are retained by the Company and are subordinated in priority of payment to the notes. Overcollateralization – securitized asset balances that exceed the balance of securities issued by SPEs. Excess interest – excess interest collections to be used to cover losses on defaulted loans. Reserve funds – restricted cash accounts held by SPEs to cover shortfalls in payments of interest and principal required to be paid on the notes. Yield supplement accounts – restricted cash accounts held by SPEs to supplement interest payments on notes. The risk retention regulations in Regulation RR of the Securities Exchange Act of 1934, as amended, require the sponsor to retain an economic interest in the credit risk of the securitized assets, either directly or through one or more majority-owned affiliates. Standard risk retention options allow the sponsor to retain either an eligible vertical interest, an eligible horizontal residual interest, or a combination of both. The Company has satisfied this obligation by retaining an eligible vertical interest of an amount equal to at least 5% of the principal amount of each class of note and certificate issued for the securitization transaction that was subject to this rule but may choose to use other structures in the future. The securitization SPEs formed by the Company are VIEs, which are required to be consolidated by their primary beneficiary. The Company is considered to be the primary beneficiary of these SPEs due to (i) the power to direct the activities of the SPEs that most significantly impact the SPEs economic performance through its role as servicer, and (ii) the obligation to absorb losses or the right to receive residual returns that could potentially be significant to the SPEs through the subordinated certificates and residual interest retained. Consolidation of these SPEs results in the securitization transactions being accounted for as on-balance sheet secured financings. The securitized retail loans and operating leases remain on the consolidated balance sheet of the Company along with the notes issued by the SPEs. The notes are secured solely by the assets of the SPEs and not by any other assets of the Company. The assets of the SPEs are the only source of funds for repayment on the notes. Restricted cash accounts held by the SPEs can only be used to support payments on the notes. The restricted cash accounts are included in the Company’s consolidated balance sheet in other assets. The Company recognizes revenue from retail loans and operating leases and provisions for credit losses and uncollectible operating leases on the securitized assets and interest expense on the related secured debt. (j) Income Taxes The Company’s U.S. entities are included in the consolidated U.S. federal and many consolidated or combined state and local income tax returns of the Parent, though in some cases the Company files separately as required by certain state and local jurisdictions. The Company provides its share of the consolidated or combined income tax on a modified separate return basis pursuant to an intercompany income tax allocation agreement that it has entered into with the Parent. The Company files a separate California return based on California’s worldwide income and apportionment rules. To the extent the Company’s U.S. entities have taxable losses in its consolidated federal, and consolidated or combined state and local tax returns, a benefit will be recognized to the extent that it is more likely than not that these losses will be utilized by the consolidated or combined return group in the current or future year and thus would be subject to current or future reimbursement by the Parent under the terms of the intercompany income tax allocation agreement. To the extent such losses are attributable to a state where the Company files a separate return, a benefit for such losses would be recognized to the extent such losses are more likely than not to be utilized in the future. All but an insignificant amount of the federal and state taxes payable or receivable shown on the consolidated balance sheets are due to or from the Parent, pursuant to the intercompany income tax allocation agreement. The Company’s Canadian subsidiary, HCFI, files Canadian federal and provincial income tax returns based on the separate legal entity financial statements. HCFI does not file U.S. federal, state, or local income tax returns. Consequently, HCFI does not participate in the intercompany income tax allocation agreement that the Company has with the Parent. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income during the period in which the enactment date occurs. A valuation allowance is provided to offset deferred tax assets if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In addition, tax benefits related to positions considered uncertain are recognized only if, based on the technical merits of the issue, the Company believes that it is more likely than not to sustain the position and then at the largest amount that is greater than 50% likely to be realized upon settlement. The Company has elected not to record deferred taxes for Global Intangible Low-Taxed Income (GILTI) related book-tax-differences and will treat taxes due to GILTI as a current period expense when incurred. (k) Foreign Currency Translation Upon consolidation, the assets and liabilities of HCFI are translated at year-end exchange rates, and the revenues and expenses are translated at the average rates of exchange during the respective years. The resulting translation adjustment is included in other comprehensive income and the cumulative translation adjustment is reported as a separate component of equity in accumulated other comprehensive income and noncontrolling interest. Foreign currency denominated debt is translated at year-end exchange rates, and the foreign currency transaction gains and losses are recognized through earnings. (l) Derivative Instruments The Company utilizes derivative instruments to manage exposures to interest rate and foreign currency risks. The Company’s assets consist primarily of fixed rate receivables and operating lease assets. The Company’s liabilities consist of both floating and fixed rate debt, denominated in various currencies. Interest rate and basis swaps are used to match the interest rate characteristics of the Company’s assets and debt. Currency swaps are used to manage currency risk exposure on foreign currency denominated debt. Derivative instruments are not used for trading or any other speculative purposes. All derivative financial instruments are recorded on the consolidated balance sheets at fair value. The Company elects to present derivative instruments in the Company’s consolidated balance sheets on a gross basis rather than on a net basis by counterparty. Refer to Note 5 for additional information. Except in very limited circumstances involving counterparties with consolidated securitization SPEs, AHFC generally has not entered into credit support (collateral) agreements with its counterparties. Changes in the fair value of derivatives are recognized in earnings in the period of the change. In Canada, HCFI is a party to credit support agreements that require posting of cash collateral to mitigate credit risk on derivative positions. (m) Recently Adopted Accounting Standards Effective April 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and the related amendments on a modified retrospective basis. The amendments replace the previous incurred loss impairment methodology with a methodology that reflects lifetime expected credit losses. The adoption of ASU 2016-13 resulted in an increase to the allowance for credit loss of $101 million along with an after-tax cumulative-effect reduction to opening retained earnings and noncontrolling interest of $75 million. Comparative information has not been restated and continues to be presented under previous accounting standards . (n) Recently Issued Accounting Standards In March 2022, the Financial Accounting Standards Board issued ASU 2022-02, Financial Instruments—Credit Losses (Topic326): Troubled Debt Restructurings and Vintage Disclosures

Finance Receivables

Finance Receivables	12 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Finance Receivables	Finance Receivables Finance receivables consisted of the following: March 31, 2023 Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 35,110 $ 2,836 $ 37,946 Allowance for credit losses (248) (5) (253) Deferred dealer participation and other deferred costs 472 — 472 Unearned subsidy income (580) — (580) Finance receivables, net $ 34,754 $ 2,831 $ 37,585 March 31, 2022 Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 36,028 $ 2,066 $ 38,094 Allowance for credit losses (206) (5) (211) Deferred dealer participation and other deferred costs 390 — 390 Unearned subsidy income (792) — (792) Finance receivables, net $ 35,420 $ 2,061 $ 37,481 Finance receivables include retail loans with a net carrying amount of $7.2 billion and $9.0 billion as of March 31, 2023 and 2022, respectively, which have been transferred to bankruptcy-remote SPEs and are considered to be legally isolated but do not qualify for sale accounting treatment. These retail loans are restricted and serve as collateral for the payment of the related secured debt obligations. Refer to Note 10 for additional information. Allowance for Credit Losses The following is a summary of the activity in the allowance for credit losses of finance receivables: Year ended March 31, 2023 Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 206 $ 5 $ 211 Provision 146 — 146 Charge-offs (193) — (193) Recoveries 90 — 90 Effect of translation adjustment (1) — (1) Ending balance $ 248 $ 5 $ 253 Year ended March 31, 2022 Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 280 $ 8 $ 288 Provision (19) (3) (22) Charge-offs (145) — (145) Recoveries 90 — 90 Effect of translation adjustment — — — Ending balance $ 206 $ 5 $ 211 Year ended March 31, 2021 Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 364 $ 6 $ 370 Cumulative effective of adopting ASU 2016-13 98 3 101 Beginning balance as of April 1, 2020 462 9 471 Provision (67) (2) (69) Charge-offs (232) (1) (233) Recoveries 116 2 118 Effect of translation adjustment 1 — 1 Ending balance $ 280 $ 8 $ 288 The allowance increased during the fiscal year ended March 31, 2023 reflecting an increase in expected credit losses due to higher delinquencies and net charge-offs on retail loans, and a slight decline in the overall credit quality of retail loans during the period. There were no modifications to the terms of dealer loan contracts that constituted troubled debt restructurings during the fiscal years ended March 31, 2023, 2022 and 2021. The Company generally does not grant concessions on consumer finance receivables that are considered troubled debt restructurings other than modifications of retail loans in reorganization proceedings pursuant to the U.S. Bankruptcy Code. Retail loans modified under bankruptcy protection were not material to the Company’s consolidated financial statements during the fiscal years ended March 31, 2023, 2022 and 2021. The Company does allow limited payment deferrals on consumer finance receivables. These payment deferrals are not treated as troubled debt restructurings since the deferrals are deemed insignificant and interest continues to accrue during the deferral period. Payment deferrals were granted to certain customers impacted by the COVID-19 pandemic beginning in mid-March 2020 through the end of March 2021. Customers taking advantage of the deferrals were not considered delinquent during such deferral periods and therefore were not reflected in delinquency measures. Delinquencies Collection experience provides an indication of the credit quality of finance receivables. For retail loans, delinquencies are a good predictor of charge-offs in the near term. The likelihood of accounts charging off is significantly higher once an account becomes 60 days delinquent. Retail loans are considered delinquent if more than 10% of a scheduled payment is contractually past due on a cumulative basis. Dealer loans are considered delinquent when any payment is contractually past due. The following is an aging analysis of past due finance receivables: 30 – 59 days 60 – 89 days 90 days Total Current or Total (U.S. dollars in millions) March 31, 2023 Retail loans: New auto $ 217 $ 44 $ 11 $ 272 $ 27,479 $ 27,751 Used and certified auto 103 25 6 134 5,870 6,004 Motorcycle and other 14 5 2 21 1,226 1,247 Total retail 334 74 19 427 34,575 35,002 Dealer loans: Wholesale flooring — — — — 1,946 1,946 Commercial loans — — — — 890 890 Total dealer loans — — — — 2,836 2,836 Total finance receivables $ 334 $ 74 $ 19 $ 427 $ 37,411 $ 37,838 March 31, 2022 Retail loans: New auto $ 194 $ 50 $ 11 $ 255 $ 29,297 $ 29,552 Used and certified auto 78 22 5 105 4,615 4,720 Motorcycle and other 13 4 2 19 1,335 1,354 Total retail 285 76 18 379 35,247 35,626 Dealer loans: Wholesale flooring — — — — 1,266 1,266 Commercial loans — — — — 800 800 Total dealer loans — — — — 2,066 2,066 Total finance receivables $ 285 $ 76 $ 18 $ 379 $ 37,313 $ 37,692 Credit Quality Indicators Credit losses are an expected cost of extending credit. The majority of our credit risk is with consumer financing and to a lesser extent with dealer financing. Exposure to credit risk in retail loans is managed through regular monitoring and adjusting of underwriting standards, pricing of contracts for expected losses, and focusing collection efforts to minimize losses. Exposure to credit risk for dealers is managed through ongoing reviews of their financial condition. Retail Loan Segment The Company utilizes proprietary credit scoring systems to evaluate the credit risk of applicants and assign internal credit grades at origination. Factors used to develop a customer’s credit grade include the terms of the contract, the loan-to-value ratio, the customer’s debt ratios, and credit bureau attributes such as the number of trade lines, utilization ratio, and number of credit inquiries. Different scorecards are utilized depending on the type of product financed. The Company regularly reviews and analyzes the performance of the consumer-financing portfolio to ensure the effectiveness of underwriting guidelines, purchasing criteria and scorecard predictability of customers. Internal credit grades are determined only at the time of origination and are not reassessed during the life of the contract. The following describes the internal credit grade ratings: A - Borrowers classified as very low credit risks. Based on their application and credit bureau report, they have the ability to pay and have shown a willingness to pay. Generally, A credit borrowers have an extensive credit history, an excellent payment record and extensive financial resources. B - Borrowers classified as relatively low credit risks. Based on their application and credit bureau report, they have the ability to pay and have shown a willingness to pay. Generally, B credit borrowers may have one or more conditions that could reduce the internal credit score, such as a shorter credit history or a minor credit weakness. C - Borrowers classified as moderate credit risks. Based on their application and credit bureau report, they may have limited financial resources, limited credit history, or a weakness in credit history. D - Borrowers classified as relatively higher credit risks. Based on their application and credit bureau report, they may have very limited financial resources, very limited or no credit history, or a poor credit history. Others - Borrowers, including businesses, without credit bureau reports. The following table summarizes the amortized cost of retail loans by internal credit grade: Retail loans by vintage year 2023 2022 2021 2020 2019 Prior Total March 31, 2023 (U.S. dollars in millions) Credit grade A $ 8,332 $ 5,994 $ 5,188 $ 1,570 $ 661 $ 171 $ 21,916 Credit grade B 2,828 1,693 1,308 504 229 78 6,640 Credit grade C 1,864 1,174 887 407 189 71 4,592 Credit grade D 447 294 255 191 92 36 1,315 Others 211 146 97 50 22 13 539 Total retail loans $ 13,682 $ 9,301 $ 7,735 $ 2,722 $ 1,193 $ 369 $ 35,002 Retail loans by vintage year 2022 2021 2020 2019 2018 Prior Total March 31, 2022 (U.S. dollars in millions) Credit grade A $ 8,849 $ 8,065 $ 3,073 $ 1,912 $ 727 $ 169 $ 22,795 Credit grade B 2,433 2,010 898 525 271 74 6,211 Credit grade C 1,713 1,409 718 405 228 64 4,537 Credit grade D 451 418 341 188 100 33 1,531 Others 214 153 91 56 25 13 552 Total retail loans $ 13,660 $ 12,055 $ 5,121 $ 3,086 $ 1,351 $ 353 $ 35,626 Dealer Loan Portfolio Segment The Company utilizes an internal risk rating system to evaluate dealer credit risk. Dealerships are assigned an internal risk rating based on an assessment of their financial condition and other factors. Factors including liquidity, financial strength, management effectiveness, and operating efficiency, are evaluated when assessing their financial condition. Financing limits and interest rates are based upon these risk ratings. Monitoring activities including financial reviews and inventory inspections are performed more frequently for dealerships with weaker risk ratings. The financial conditions of dealerships are reviewed, and their risk ratings are updated at least annually. Dealerships have been divided into the following groups: Group I - Dealerships in the strongest internal risk rating tier Group II - Dealerships with internal risk ratings below the strongest tier Group III - Dealerships with impaired loans The following table summarizes the amortized cost of dealer loans by risk rating groups: Commercial loans by vintage fiscal year 2023 2022 2021 2020 2019 Prior Revolving loans Wholesale Flooring Total March 31, 2023 (U.S. dollars in millions) Group I $ 67 $ 10 $ 143 $ 56 $ 24 $ 89 $ 428 $ 1,223 $ 2,040 Group II 1 6 29 6 — 31 — 723 796 Group III — — — — — — — — — Total dealer loans $ 68 $ 16 $ 172 $ 62 $ 24 $ 120 $ 428 $ 1,946 $ 2,836 Commercial loans by vintage fiscal year 2022 2021 2020 2019 2018 Prior Revolving loans Wholesale Flooring Total March 31, 2022 (U.S. dollars in millions) Group I $ 11 $ 207 $ 56 $ 18 $ 32 $ 99 $ 317 $ 671 $ 1,411 Group II 6 3 7 17 22 5 — 595 655 Group III — — — — — — — — — Total dealer loans $ 17 $ 210 $ 63 $ 35 $ 54 $ 104 $ 317 $ 1,266 $ 2,066

Investment in Operating Leases

Investment in Operating Leases	12 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Investment in Operating Leases	Investment in Operating Leases Investment in operating leases consisted of the following: March 31, 2023 2022 (U.S. dollars in millions) Operating lease vehicles $ 36,412 $ 42,990 Accumulated depreciation (7,989) (8,529) Deferred dealer participation and initial direct costs 88 114 Unearned subsidy income (656) (869) Estimated early termination losses (77) (82) Investment in operating leases, net $ 27,778 $ 33,624 Operating lease revenue consisted of the following: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Lease payments $ 5,976 $ 6,913 $ 6,808 Subsidy income and dealer rate participation, net 561 798 894 Reimbursed lessor costs 63 67 63 Total operating lease revenue, net $ 6,600 $ 7,778 $ 7,765 Leased vehicle expenses consisted of the following: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Depreciation expense $ 4,872 $ 5,676 $ 5,669 Initial direct costs and other lessor costs 134 151 140 Gain on disposition of leased vehicles (1) (115) (197) (229) Total leased vehicle expenses, net $ 4,891 $ 5,630 $ 5,580 ________________________ (1) Included in the gain on disposition of leased vehicles are end of term charges of $2 million, $17 million, and $54 million for the fiscal years ended March 31, 2023, 2022 and 2021, respectively. Investment in operating leases includes lease assets with a net carrying amount of $168 million and $294 million as of March 31, 2023 and 2022, respectively, which have been transferred to SPEs and are considered to be legally isolated but do not qualify for sale accounting treatment. These investments in operating leases are restricted and serve as collateral for the payment of the related secured debt obligations. Refer to Note 10 for additional information. Contractual operating lease payments due as of March 31, 2023 are summarized below. Based on the Company's experience, it is expected that a portion of the Company's operating leases will terminate prior to the scheduled lease term. The summary below should not be regarded as a forecast of future cash collections. Year ending March 31, (U.S. dollars in millions) 2024 $ 4,484 2025 2,469 2026 971 2027 175 2028 39 Total $ 8,138 The Company recognized early termination losses on operating leases of $38 million, $16 million, and a reversal of early termination losses on operating leases of $156 million for the fiscal years ended March 31, 2023, 2022 and 2021, respectively. Net realized losses for the fiscal years ended March 31, 2023, 2022 and 2021 totaled $43 million, $23 million, and $72 million, respectively. The general allowance for uncollectible operating lease receivables was recorded through a reduction to revenue of $4 million, $2 million and $31 million for the fiscal years ended March 31, 2023, 2022 and 2021, respectively.
Investment in Operating Leases	Investment in Operating Leases Investment in operating leases consisted of the following: March 31, 2023 2022 (U.S. dollars in millions) Operating lease vehicles $ 36,412 $ 42,990 Accumulated depreciation (7,989) (8,529) Deferred dealer participation and initial direct costs 88 114 Unearned subsidy income (656) (869) Estimated early termination losses (77) (82) Investment in operating leases, net $ 27,778 $ 33,624 Operating lease revenue consisted of the following: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Lease payments $ 5,976 $ 6,913 $ 6,808 Subsidy income and dealer rate participation, net 561 798 894 Reimbursed lessor costs 63 67 63 Total operating lease revenue, net $ 6,600 $ 7,778 $ 7,765 Leased vehicle expenses consisted of the following: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Depreciation expense $ 4,872 $ 5,676 $ 5,669 Initial direct costs and other lessor costs 134 151 140 Gain on disposition of leased vehicles (1) (115) (197) (229) Total leased vehicle expenses, net $ 4,891 $ 5,630 $ 5,580 ________________________ (1) Included in the gain on disposition of leased vehicles are end of term charges of $2 million, $17 million, and $54 million for the fiscal years ended March 31, 2023, 2022 and 2021, respectively. Investment in operating leases includes lease assets with a net carrying amount of $168 million and $294 million as of March 31, 2023 and 2022, respectively, which have been transferred to SPEs and are considered to be legally isolated but do not qualify for sale accounting treatment. These investments in operating leases are restricted and serve as collateral for the payment of the related secured debt obligations. Refer to Note 10 for additional information. Contractual operating lease payments due as of March 31, 2023 are summarized below. Based on the Company's experience, it is expected that a portion of the Company's operating leases will terminate prior to the scheduled lease term. The summary below should not be regarded as a forecast of future cash collections. Year ending March 31, (U.S. dollars in millions) 2024 $ 4,484 2025 2,469 2026 971 2027 175 2028 39 Total $ 8,138 The Company recognized early termination losses on operating leases of $38 million, $16 million, and a reversal of early termination losses on operating leases of $156 million for the fiscal years ended March 31, 2023, 2022 and 2021, respectively. Net realized losses for the fiscal years ended March 31, 2023, 2022 and 2021 totaled $43 million, $23 million, and $72 million, respectively. The general allowance for uncollectible operating lease receivables was recorded through a reduction to revenue of $4 million, $2 million and $31 million for the fiscal years ended March 31, 2023, 2022 and 2021, respectively.

Debt

Debt	12 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt	Debt The Company issues debt in various currencies with both floating and fixed interest rates. Outstanding debt net of discounts and fees, weighted average contractual interest rates and range of contractual interest rates were as follows: Weighted average contractual interest rate (1) Contractual March 31, March 31, March 31, 2023 2022 2023 2022 2023 2022 (U.S. dollars in millions) Unsecured debt: Commercial paper $ 6,375 $ 2,307 5.18 % 0.74 % 4.30 - 5.93% 0.33 - 1.21% Bank loans 1,894 3,108 5.66 % 1.52 % 5.38 - 6.14% 0.94 - 2.01% Public MTN program 21,962 28,659 1.99 % 1.53 % 0.30 - 5.43% 0.30 - 3.63% Euro MTN programme — 25 — 2.23 % — - — 2.23 - 2.23% Other debt 3,176 3,952 3.15 % 2.20 % 1.34 - 5.88% 1.05 - 3.44% Total unsecured debt 33,407 38,051 Secured debt 6,927 8,888 2.42 % 0.93 % 0.20 - 5.50% 0.14 - 3.30% Total debt $ 40,334 $ 46,939 _______________________ (1) Weighted average contractual interest rates for commercial paper are bond equivalent yields. Contractual interest rates approximate effective yields. As of March 31, 2023, the outstanding principal balance of long-term debt with floating interest rates totaled $4.1 billion, long-term debt with fixed interest rates totaled $29.5 billion, and short-term debt with floating and fixed interest rates totaled $6.7 billion. As of March 31, 2022, the outstanding principal balance of long-term debt with floating interest rates totaled $5.9 billion, long-term debt with fixed interest rates totaled $37.9 billion, and short-term debt with floating and fixed interest rates totaled $3.1 billion. The Company’s secured debt is amortizing, and unsecured debt is non-amortizing. Scheduled and projected maturities of the Company’s debt at March 31, 2023 are summarized below: 2024 2025 2026 2027 2028 Thereafter Total (U.S. dollars in millions) Unsecured debt: Commercial paper $ 6,403 $ — $ — $ — $ — $ — $ 6,403 Bank loans 274 566 111 759 185 — 1,895 Public MTN program 7,193 5,336 2,300 2,367 2,367 2,448 22,011 Other debt 592 555 925 296 814 — 3,182 Total unsecured debt 14,462 6,457 3,336 3,422 3,366 2,448 33,491 Secured debt (1) 3,931 2,106 688 178 33 — 6,936 Total debt (2) $ 18,393 $ 8,563 $ 4,024 $ 3,600 $ 3,399 $ 2,448 $ 40,427 Unamortized discounts/fees (93) Total debt, net $ 40,334 ________________________ (1) Projected repayment schedule of secured debt. Reflects payment performance assumptions on underlying assets. (2) Principal amounts. Commercial Paper As of March 31, 2023 and 2022, the Company had commercial paper programs that provide the Company with available funds of up to $8.8 billion and $9.0 billion, respectively, at prevailing market interest rates for terms up to one year. The commercial paper programs are supported by the Keep Well Agreements with HMC described in Note 6. Outstanding commercial paper averaged $3.9 billion and $4.9 billion during the fiscal year ended March 31, 2023 and 2022, respectively. The maximum balance outstanding at any month-end was $6.4 billion and $6.7 billion during the fiscal year ended March 31, 2023 and 2022, respectively. Bank Loans Outstanding bank loans at March 31, 2023 and 2022 were either short-term or long-term, with floating interest rates, and denominated in U.S. dollars or Canadian dollars. Outstanding bank loans have prepayment options. No outstanding bank loans as of March 31, 2023 and 2022 were supported by the Keep Well Agreements with HMC described in Note 6. Outstanding bank loans contain certain covenants, including limitations on liens, mergers, consolidations and asset sales. Medium Term Note (MTN) Programs Public MTN Program In August 2022, AHFC renewed its Public MTN program by filing a registration statement with the SEC under which it may issue from time to time up to $30.0 billion aggregate principal amount of Public MTNs pursuant to the Public MTN program. The aggregate principal amount of MTNs offered under this program may be increased from time to time. Notes outstanding under the Public MTN program as of March 31, 2023 were long-term, with either fixed or floating interest rates, and denominated in U.S. dollars, Euro or Sterling. Notes under this program are issued pursuant to an indenture which contains certain covenants, including negative pledge provisions and limitations on mergers, consolidations and asset sales. Euro MTN Programme The Euro MTN Programme was retired in August 2014. AHFC has no notes outstanding under this program as of March 31, 2023. The last note matured on February 21, 2023. The MTN programs are supported by the Keep Well Agreement with HMC described in Note 6. Other Debt The outstanding balances as of March 31, 2023 and 2022 consisted of private placement debt issued by HCFI which are long-term, with either fixed or floating interest rates, and denominated in Canadian dollars. Private placement debt is supported by the Keep Well Agreement with HMC described in Note 6. The notes are issued pursuant to the terms of an indenture which contain certain covenants, including negative pledge provisions. Secured Debt The Company issues notes through financing transactions that are secured by assets held by issuing SPEs. Notes outstanding as of March 31, 2023 and 2022 were long-term and short-term, with either fixed or floating interest rates, and denominated in U.S. dollars or Canadian dollars. Repayment of the notes is dependent on the performance of the underlying retail loans and operating leases. Refer to Note 10 for additional information on the Company’s secured financing transactions. Credit Agreements Syndicated Bank Credit Facilities AHFC maintains a $7.0 billion syndicated bank credit facility that includes a $3.5 billion credit agreement, which expires on February 23, 2024, a $2.1 billion credit agreement, which expires on February 25, 2026, and a $1.4 billion credit agreement, which expires on February 25, 2028. As of March 31, 2023, no amounts were drawn upon under the AHFC credit agreements. AHFC intends to renew or replace these credit agreements prior to or on their respective expiration dates. HCFI maintains a $1.5 billion syndicated bank credit facility that includes a $740 million credit agreement, which expires on March 25, 2024 and $740 million credit agreement, which expires on March 25, 2027. As of March 31, 2023, no amounts were drawn upon under the HCFI credit agreement. HCFI intends to renew or replace the credit agreement prior to or on the respective expiration date of each tranche. The credit agreements contain customary covenants, including limitations on liens, mergers, consolidations and asset sales and affiliate transactions. Loans, if any, under the credit agreements will be supported by the Keep Well Agreement described in Note 6.

Derivative Instruments

Derivative Instruments	12 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments The fair value of derivative instruments is subject to the fluctuations in market interest rates and foreign currency exchange rates. Since the Company has elected not to apply hedge accounting, the volatility in the changes in fair value of these derivative instruments is recognized in earnings. All settlements of derivative instruments are presented within cash flows from operating activities in the consolidated statements of cash flows. These derivative instruments also contain an element of credit risk in the event the counterparties are unable to meet the terms of the agreements. However, the Company minimizes the risk exposure by limiting the counterparties to major financial institutions that meet established credit guidelines. In the event of default, all counterparties are subject to legally enforceable master netting agreements. In Canada, HCFI is a party to reciprocal credit support agreements that require posting of cash collateral to mitigate counterparty credit risk on derivative positions. Posted collateral is recognized in other assets and held collateral is recognized in other liabilities. The notional balances and fair values of the Company’s derivatives are presented below. The derivative instruments are presented on a gross basis in the Company’s consolidated balance sheets. Refer to Note 14 regarding the valuation of derivative instruments. March 31, 2023 2022 Notional Assets Liabilities Notional Assets Liabilities (U.S. dollars in millions) Interest rate swaps $ 55,974 $ 1,133 $ 1,062 $ 61,941 $ 931 $ 683 Cross currency swaps 4,328 — 674 7,920 40 436 Gross derivative assets/liabilities 1,133 1,736 971 1,119 Collateral posted/held — 37 5 28 Counterparty netting adjustment (1,000) (1,000) (804) (804) Net derivative assets/liabilities $ 133 $ 773 $ 172 $ 343 The income statement impact of derivative instruments is presented below. There were no derivative instruments designated as part of a hedge accounting relationship during the periods presented. Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Interest rate swaps $ 113 $ 140 $ (148) Cross currency swaps (810) (711) 377 Total gain/(loss) on derivative instruments $ (697) $ (571) $ 229

Transactions Involving Related

Transactions Involving Related Parties	12 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Transactions Involving Related Parties	Transactions Involving Related Parties The following tables summarize the income statement and balance sheet impact of transactions with the Parent and affiliated companies: Years ended March 31, Income Statement 2023 2022 2021 (U.S. dollars in millions) Revenue: Subsidy income $ 1,036 $ 1,410 $ 1,476 Interest expense: Related party debt — — 2 Other income, net: VSC administration fees 2 3 106 Support service fees — — (45) General and administrative expenses: Support Compensation Agreement fees 63 76 72 Benefit plan expenses 8 8 9 Shared services 74 72 69 Lease expense 4 4 2 March 31, Balance Sheet 2023 2022 (U.S. dollars in millions) Assets : Finance receivables, net: Unearned subsidy income $ (573) $ (783) Investment in operating leases, net: Unearned subsidy income (655) (867) Due from Parent and affiliated companies 66 62 Liabilities: Due to Parent and affiliated companies 161 125 Other liabilities: Accrued benefit expenses 63 63 Dividend Payable — 133 Operating lease liabilities 11 15 Support Agreements HMC and AHFC are parties to a Keep Well Agreement, effective as of September 9, 2005. This Keep Well Agreement provides that HMC will (1) maintain (directly or indirectly) at least 80% ownership in AHFC’s voting stock and not pledge (directly or indirectly), or in any way encumber or otherwise dispose of, any such stock of AHFC that it is required to hold (or permit any of HMC’s subsidiaries to do so), (2) cause AHFC to have a positive consolidated tangible net worth with tangible net worth defined as (a) stockholder’s equity less (b) any intangible assets, determined on a consolidated basis in accordance with GAAP, and (3) ensure that AHFC has sufficient liquidity to meet its payment obligations for debt HMC has confirmed in writing is covered by this Keep Well Agreement, in accordance with its terms, or where necessary make available to AHFC, or HMC shall procure for AHFC, sufficient funds to enable AHFC to meet such obligations in accordance with such terms. This Keep Well Agreement is not a guarantee by HMC. HMC and HCFI are parties to a Keep Well Agreement effective as of September 26, 2005. This Keep Well Agreement provides that HMC will (1)maintain (directly or indirectly) at least 80% ownership in HCFI’s voting stock and not pledge (directly or indirectly), or in any way encumber or otherwise dispose of, any such stock of HCFI that it is required to hold (or permit any of HMC’s subsidiaries to do so), (2) cause HCFI to have a positive consolidated tangible net worth with tangible net worth defined as (a) stockholder’s equity less (b) any intangible assets, determined on a consolidated basis in accordance with generally accepted accounting principles in Canada, and (3) ensure that HCFI has sufficient liquidity to meet its payment obligations for debt HMC has confirmed in writing is covered by this Keep Well Agreement, in accordance with its terms, or where necessary make available to HCFI, or HMC shall procure for HCFI, sufficient funds to enable HCFI to meet such obligations in accordance with such terms. This Keep Well Agreement is not a guarantee by HMC. Debt programs supported by the Keep Well Agreements consist of the Company’s commercial paper programs, Public MTN Program and HCFI’s private placement debt and loans, if any, under AHFC's and HCFI's syndicated bank credit facilities. In connection with the above agreements, AHFC and HCFI have entered into separate Support Compensation Agreements, where each has agreed to pay HMC a quarterly fee based on the amount of outstanding debt that benefit from the Keep Well Agreements. Support Compensation Agreement fees are recognized in general and administrative expenses. Incentive Financing Programs The Company receives subsidy payments from AHM and HCI, which supplement the revenues on financing products offered under incentive programs. Subsidy payments received on retail loans and leases are deferred and recognized as revenue over the term of the related contracts. The unearned balance is recognized as reductions to the carrying value of finance receivables and investment in operating leases. Subsidy payments on dealer loans are received as earned. Refer to Notes 1( e ) and 1( f ) for additional information. Related Party Debt HCFI no longer issues short-term notes to HCI to fund HCFI’s general corporate operations and had paid the remaining balance as of March 31, 2021. Interest rates were based on prevailing rates of debt with comparable terms. Vehicle Service Contract (VSC) Administration AHFC performed administrative services for VSCs issued by certain subsidiaries of AHM. AHFC’s performance obligations for the services were satisfied over the term of the underlying contracts and revenue was recognized proportionate to the anticipated amount of services to be performed. Contract terms ranged between two four AHFC paid fees to AHM for services provided in support of AHFC’s performance of VSC administrative services. The support fees were recognized as an expense within other income, net (Note 13). Shared Services The Company shares certain common expenditures with AHM, HCI, and other related parties including information technology services and facilities. The allocated costs for shared services are included in general and administrative expenses. Benefit Plans The Company participates in various employee benefit plans that are sponsored by AHM and HCI. The allocated benefit plan expenses are included in general and administrative expenses. Refer to Note 8 for additional information. Income taxes The Company’s U.S. income taxes are recognized on a modified separate return basis pursuant to an intercompany income tax allocation agreement with AHM. Income tax related items are not included in the tables above. Refer to Notes 1( j ) and 7 for additional information. Other The majority of the amounts due from the Parent and affiliated companies at March 31, 2023 and 2022 related to incentive financing program subsidies. The majority of the amounts due to the Parent and affiliated companies at March 31, 2023 and 2022 related to wholesale flooring payable to the Parent. These receivable and payable accounts are non-interest-bearing and short-term in nature and are expected to be settled in the normal course of business. AHFC leases its premises from its parent, AHM. HCFI leases its premises from HCI. AHFC declared and paid semi-annual cash dividends to its parent, AHM, of $766 million and $500 million during the fiscal year ended March 31, 2023, $491 million and $1.0 billion during the fiscal year ended March 31, 2022, and $143 million and $465 million during the fiscal year ended March 31, 2021. HCFI declared and paid semi-annual cash dividends to AHFC of $69 million and $56 million during the fiscal year ended March 31, 2023, and an annual dividend of $146 million during the fiscal year ended March 31, 2022 which was declared on March 22, 2022 and paid on April 21, 2022. HCFI declared and paid semi-annual cash dividends to HCI of $63 million and $51 million during the fiscal year ended March 31, 2023, and an annual cash dividend of $133 million during the fiscal year ended March 31, 2022 which was declared on March 22, 2022 and paid on April 21, 2022.

Income Taxes

Income Taxes	12 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On August 16, 2022, the U.S. government enacted budget reconciliation legislation commonly called the Inflation Reduction Act of 2022 (IRA) that authorizes major policy changes with regard to energy, environment, healthcare, and tax issues. The IRA makes significant changes to the U.S. tax code that, if applicable, will impact the Company’s subsequent fiscal years, beginning with the fiscal year ending March 31, 2024. Some of the key tax provisions of the IRA that could potentially impact the Company include a new corporate alternative minimum tax (CAMT) imposed on adjusted financial statement income of applicable corporations; a new tax credit for qualified commercial clean vehicles to promote climate change mitigation and clean energy; amendments to the existing clean vehicle tax credit; and a new tax credit for previously owned clean vehicles. Based on proposed guidance and regulations thus far, the IRA does not impact the Company’s March 31, 2023 income tax accounts. The Company is still evaluating the potential impact of the IRA provisions on future periods. The Company’s consolidated income tax expense/(benefit) was computed on a modified separate return basis pursuant to the intercompany tax allocation agreement with the Parent and consisted of the following: Current Deferred Total (U.S. dollars in millions) Year ended March 31, 2023 Federal $ 839 $ (575) $ 264 State and local 35 39 74 Foreign 6 59 65 Total $ 880 $ (477) $ 403 Year ended March 31, 2022 Federal $ 643 $ (205) $ 438 State and local 220 (84) 136 Foreign 44 57 101 Total $ 907 $ (232) $ 675 Year ended March 31, 2021 Federal $ 36 $ 378 $ 414 State and local 146 (5) 141 Foreign 38 54 92 Total $ 220 $ 427 $ 647 For the fiscal years ended March 31, 2023 and 2022, the allocation of federal current and deferred tax expense reflects the impact of lower lease acquisitions due to the ongoing microchip shortage and the elimination of like-kind exchange for personal property under the Tax Cuts and Jobs Act (Tax Act) on reversing taxable temporary differences, as well as the effect of a change in tax accounting method for certain finance receivables. For the fiscal year ended March 31, 2021, the allocation of federal current and deferred tax expense reflects primarily the impact of accelerated federal tax depreciation offset by the elimination of like-kind exchange for personal property due to the Tax Act. Income tax expense differs from the expected income taxes by applying the statutory federal corporate rate of 21% to income before income taxes as follows: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Computed “expected” income taxes $ 324 $ 541 $ 563 Foreign tax rate differential 13 21 19 State and local income taxes, net of federal income tax benefit 64 111 112 Change in estimated state tax rate, net of federal income tax benefit (10) (15) (6) Change in unrecognized tax benefit 4 5 (47) Other 8 12 6 Income tax expense $ 403 $ 675 $ 647 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: March 31, 2023 2022 (U.S. dollars in millions) Deferred tax assets: State income tax $ 134 $ 151 Receivable allowance 77 85 Accrued postretirement benefits 14 13 State loss carryforwards 23 33 Other assets 73 67 Total gross deferred tax assets 321 349 Less valuation allowance — — Net deferred tax assets 321 349 Deferred tax liabilities: HCFI leases 519 522 AHFC leases 5,418 6,563 Mark-to-market 540 — Other 131 67 Total gross deferred tax liabilities 6,608 7,152 Net deferred tax liabilities $ 6,287 $ 6,803 The decrease in the net deferred tax liability is mainly due to the impact of lower lease acquisitions from the ongoing microchip shortage and the elimination of like-kind exchange for personal property under the Tax Act on reversing taxable temporary differences. During the fiscal year ended March 31, 2023, the Company filed a change in tax accounting method to elect the mark-to-market method of accounting for certain finance receivables. The effect of translating HCFI’s net deferred tax liabilities to U.S. dollars upon consolidation resulted in a decrease of $39 million, an increase of $2 million, and an increase of $41 million during the fiscal years ended March 31, 2023, 2022, and 2021, respectively. The translation adjustments have been recognized as a component of other comprehensive income. Exception to Recognition of Deferred Tax Liabilities The Company does not provide for income taxes on its share of the undistributed earnings of HCFI, which are intended to be indefinitely reinvested outside the United States. At March 31, 2023, $1.0 billion of accumulated undistributed earnings of HCFI were intended to be so reinvested. If the undistributed earnings as of March 31, 2023 were to be distributed, the tax liability associated with these indefinitely reinvested earnings would be $114 million, inclusive of currency translation adjustments. Tax Attributes Included in the Company’s deferred tax assets are net operating loss (NOL) carryforwards with tax benefits resulting from operating losses incurred in various states in which the Company files tax returns in the amounts of $23 million, $33 million, and $36 million at March 31, 2023, 2022, and 2021, respectively. The expiration, if applicable, of these NOL carryforwards varies based on the statutes of each of the applicable states through March 31, 2040. Valuation Allowance In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during those periods in which those temporary differences and carryforward deferred tax assets become deductible or utilized. The Company considers sources of income, including, where applicable, the reversal of taxable temporary differences, projected future taxable income, and tax planning considerations in making this assessment. The Company believes it is more likely than not the deferred tax assets of $321 million recognized as of March 31, 2023 will be realized. Uncertain Tax Positions A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Balance, beginning of year $ 81 $ 95 $ 169 Additions for current year tax positions — — — Additions for prior year tax positions — — — Reductions for prior year tax positions (8) (14) (21) Settlements — — (4) Reductions related to a lapse in the statute of limitations — — (49) Foreign currency translation — — — Balance, end of year $ 73 $ 81 $ 95 Included in the balance of unrecognized tax benefits at March 31, 2023, 2022 and 2021 are $72 million, $80 million and $94 million, net of the federal benefit of state taxes, respectively, the recognition of which would affect the Company’s effective tax rate in future periods. Although it is reasonably possible that the total amounts of unrecognized tax benefits could change within the next twelve months, the Company does not believe such change would be significant. As a result of the above unrecognized tax benefits and various favorable uncertain positions, the Company has recorded a net liability for uncertain tax positions, inclusive of interest and penalties of $92 million and $94 million as of March 31, 2023 and 2022, respectively (Note 12). The Company recognizes income tax-related interest income, interest expense and penalties as a component of income tax expense. The Company recognized interest expense of $5 million and $4 million during the fiscal years ended March 31, 2023 and 2022, respectively, and interest income of $20 million during the fiscal year ended March 31, 2021. As of March 31, 2023, 2022 and 2021, the Company’s consolidated balance sheets reflect accrued interest payable of $25 million, $20 million, and $16 million, respectively. As of March 31, 2023, the Company is subject to examination for U.S. federal returns filed for the taxable years ended March 31, 2014 through 2022, and returns filed for the taxable years ended March 31, 2008 through 2022 in various U.S. states. The Company’s Canadian subsidiary, HCFI, is subject to examination for returns filed for the taxable years ended March 31, 2016 through 2022 federally and provincially. The Company believes appropriate provision has been made for all outstanding issues for all open years.

Benefit Plans

Benefit Plans	12 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Benefit Plans	Benefit Plans The Company participates in certain retirement and other postretirement benefit plans sponsored by AHM and HCI (collectively referred to as the Sponsors). The Company participates in defined benefit retirement plans (the Pension Plans) maintained by the Sponsors. The names of the Pension Plans maintained by AHM are the Honda Retirement Plan and the Honda Pension Equalization Plan. The name of the Pension Plan maintained by HCI is the Pension Plan for Associates of Honda Canada Inc. Employees who commenced service after September 3, 2013 are not eligible to participate in the Pension Plans maintained by AHM. Under the amendments to the Pension Plan maintained by HCI, employees who commenced service after January 1, 2014 are not eligible to participate in HCI's Pension Plan. The Company pays for its share of the Pension Plan costs allocated by the Sponsors. The Pension Plans’ expense, included in general and administrative expenses, was $5 million for the fiscal years ended March 31, 2023 and 2022 and $21 million for the fiscal year ended March 31, 2021. The Company participates in defined contribution savings plans (the Savings Plans) maintained by the Sponsors. Participants in these plans make contributions subject to Internal Revenue Service or Canada Revenue Agency limits. General and administrative expenses include the Company's portion of contributions to the Savings Plans of $9 million for the fiscal year ended March 31, 2023 and $8 million for the fiscal years ended March 31, 2022 and 2021. The Company participates in other postretirement plans maintained by the Sponsors primarily to provide certain healthcare benefits for retired employees. Substantially all employees become eligible for these benefits if they have met certain age and service requirements at retirement. The Company's expense for the postretirement plans included in the general and administrative expenses was $3 million for the fiscal years ended March 31, 2023 and 2022, and a benefit for the postretirement plans of $12 million for the fiscal years ended March 31, 2021, respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Leases The Company leases certain premises and equipment through operating leases. AHFC leases its premises and equipment from AHM and third parties, and HCFI leases its premises from HCI. Many of the Company's leases contain renewal options, and generally have no residual value guarantees or material covenants. When it is reasonably certain that the Company will exercise the option to renew a lease, the Company will include the renewal option in the evaluation of the lease term. The Company has elected not to recognize right-of-use assets or lease liabilities for leases with a lease term of less than one year. As most of the Company's leases do not provide an implicit rate, the incremental borrowing rate is used in determining the present value of lease payments. The right-of-use assets in operating lease arrangements are reported in other assets on the Company's consolidated balance sheets. In November 2020, the Company finalized plans to consolidate its nine regional offices in the United States into three service centers located in California, Texas, and Georgia. The Company completed the consolidation into three service centers in January 2023. Operating lease liabilities are reported in other liabilities on the Company's consolidated balance sheets. At March 31, 2023, maturities of operating lease liabilities were as follows: Year ending March 31: (U.S. dollars in millions) 2024 $ 9 2025 9 2026 10 2027 10 2028 10 Thereafter 31 Total undiscounted future lease obligations 79 Less: imputed interest (10) Operating lease liabilities $ 69 Lease expense under operating leases was $10 million, $11 million and $10 million for the fiscal years ended March 31, 2023, 2022 and 2021. Rent expense is included within general and administrative expenses. As of March 31, 2023, the weighted average remaining lease term for operating leases was 8.3 years and the weighted average remaining discount rate for operating leases was 3.0% . Revolving Lines of Credit to Dealerships The Company extends commercial revolving lines of credit to dealerships to support their business activities including facilities refurbishment and general working capital requirements. The amounts borrowed are generally secured by the assets of the borrowing entity. The unused balance of commercial revolving lines of credit was $657 million as of March 31, 2023. The Company also has commitments to finance the construction of auto dealership facilities. The remaining unfunded balance for these construction loans was $3 million as of March 31, 2023. Legal Proceedings and Regulatory Matters The Company establishes accruals for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. When able, the Company will determine estimates of reasonably possible loss or range of loss, whether in excess of any related accrued liability or where there is no accrued liability. Given the inherent uncertainty associated with legal matters, the actual costs of resolving legal claims and associated costs of defense may be substantially higher or lower than the amounts for which accruals have been established. The Company is involved, in the ordinary course of business, in various legal proceedings including claims of individual customers and purported class action lawsuits. Certain of these actions are similar to suits filed against other financial institutions and captive finance companies concerning business practices and policies. The Company is also subject to regulation, supervision, and licensing under various federal, state, provincial, and local statutes, ordinances and regulations which involve governmental reviews and inquiries from time to time. Based on available information and established accruals, management does not believe it is reasonably possible that the results of these proceedings, in the aggregate, will have a material adverse effect on the Company’s consolidated financial statements.

Securitizations and Variable In

Securitizations and Variable Interest Entities (VIE)	12 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Securitizations and Variable Interest Entities (VIE)	Securitizations and Variable Interest Entities (VIE) The Company utilizes SPEs for its asset-backed securitizations and these SPEs are considered VIEs, which are required to be consolidated by their primary beneficiary. The Company is considered to be the primary beneficiary of these SPEs due to (i) the power to direct the activities of the SPEs that most significantly impact the SPEs’ economic performance through the Company's role as servicer, and (ii) the obligation to absorb losses or the right to receive residual returns that could potentially be significant to the SPEs through the subordinated certificates and residual interest retained. The debt securities issued by the SPEs to third-party investors along with the assets of the SPEs are included in the Company’s consolidated financial statements. During the fiscal years ended March 31, 2023 and 2022, the Company issued notes through asset-backed securitizations, which were accounted for as secured financing transactions totaling $2.9 billion and $6.0 billion, respectively. The notes were secured by assets with an initial balance of $3.1 billion and $6.5 billion, for the fiscal years ended March 31, 2023 and 2022, respectively. The table below presents the carrying amounts of assets and liabilities of consolidated SPEs as they are reported in the Company’s consolidated balance sheets. All amounts exclude intercompany balances, which have been eliminated upon consolidation. Investors in notes issued by a SPE only have recourse to the assets of such SPE and do not have recourse to the assets of AHFC, HCFI, or its other subsidiaries or to other SPEs. The assets of SPEs are the only source of funds for repayment on the notes. March 31, 2023 Assets Liabilities (U.S. dollars in millions) Securitized assets Restricted cash (1) Other Secured debt Other Retail loan securitizations $ 7,216 $ 419 $ 12 $ 6,844 $ 6 Operating lease securitizations 168 1 1 83 1 Total $ 7,384 $ 420 $ 13 $ 6,927 $ 7 March 31, 2022 Assets Liabilities (U.S. dollars in millions) Securitized assets Restricted cash (1) Other Secured debt Other Retail loan securitizations $ 9,033 $ 364 $ 14 $ 8,683 $ 3 Operating lease securitizations 294 1 1 205 2 Total $ 9,327 $ 365 $ 15 $ 8,888 $ 5 ________________________ (1) Included with other assets in the Company’s consolidated balance sheets (Note 11). In their role as servicers, AHFC and HCFI collect payments on the underlying securitized assets on behalf of the SPEs. Cash collected during a calendar month is required to be remitted to the SPEs in the following month. AHFC and HCFI are not restricted from using the cash collected for their general purposes prior to the remittance to the SPEs. As of March 31, 2023 and 2022, AHFC and HCFI had combined cash collections of $400 million and $529 million, respectively, which were required to be remitted to the SPEs.

Other Assets

Other Assets	12 Months Ended
	Mar. 31, 2023
Other Assets [Abstract]
Other Assets	Other Assets Other assets consisted of the following: March 31, 2023 2022 (U.S. dollars in millions) Interest receivable and other assets $ 108 $ 82 Vehicles held for disposition 50 51 Other receivables 83 93 Software, net of accumulated amortization of $177 and $173 as of March 31, 2023, and 2022, respectively 21 22 Property and equipment, net of accumulated depreciation of $5 and $16 as of March 31, 2023, and 2022, respectively 5 5 Restricted cash 420 365 Operating lease assets 61 51 Like-kind exchange assets — 851 Other miscellaneous assets 9 13 Total $ 757 $ 1,533 Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the related assets, which range from three The Company's deferred like-kind exchange program was discontinued for state tax purposes in September 2022.

Other Liabilities

Other Liabilities	12 Months Ended
	Mar. 31, 2023
Other Liabilities Disclosure [Abstract]
Other Liabilities	Other Liabilities Other liabilities consisted of the following: March 31, 2023 2022 (U.S. dollars in millions) Dealer payables $ 188 $ 99 Accrued interest expense 121 136 Accounts payable and accrued expenses 304 368 Lease security deposits 57 72 Unearned income, operating leases 269 317 Operating lease liabilities 69 57 Uncertain tax positions 92 94 Dividend payable — 133 Other liabilities 37 34 Total $ 1,137 $ 1,310

Other Income, net

Other Income, net	12 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Other Income, net	Other Income, net Other income consisted of the following: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) VSC administration (Note 6) $ 2 $ 3 $ 106 Other, net 90 47 (42) Total $ 92 $ 50 $ 64

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are those other than quoted prices included within Level 1 that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Nonperformance risk is also required to be reflected in the fair value measurement, including an entity’s own credit standing when measuring the fair value of a liability. Recurring Fair Value Measurements The following tables summarize the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis: March 31, 2023 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 1,133 $ — $ 1,133 Cross currency swaps — — — — Total assets $ — $ 1,133 $ — $ 1,133 Liabilities: Derivative instruments: Interest rate swaps $ — $ 1,062 $ — $ 1,062 Cross currency swaps — 674 — 674 Total liabilities $ — $ 1,736 $ — $ 1,736 March 31, 2022 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 931 $ — $ 931 Cross currency swaps — 40 — 40 Total assets $ — $ 971 $ — $ 971 Liabilities: Derivative instruments: Interest rate swaps $ — $ 683 $ — 683 Cross currency swaps — 436 — 436 Total liabilities $ — $ 1,119 $ — $ 1,119 The valuation techniques used in measuring assets and liabilities at fair value on a recurring basis are described below: Derivative Instruments The Company’s derivatives are transacted in over-the-counter markets and quoted market prices are not readily available. The Company uses third-party developed valuation models to value derivative instruments. These models estimate fair values using discounted cash flow modeling techniques, which utilize the contractual terms of the derivative instruments and market-based inputs, including interest rates and foreign exchange rates. Discount rates incorporate counterparty and HMC specific credit default spreads to reflect nonperformance risk. The Company’s derivative instruments are classified as Level 2 since all significant inputs are observable and do not require management judgment. There were no transfers between fair value hierarchy levels during the fiscal years ended March 31, 2023 and 2022. Refer to Notes 1( l ) and 5 for additional information on derivative instruments. Nonrecurring Fair Value Measurements The following tables summarize nonrecurring fair value measurements recognized for assets still held at the end of the reporting periods presented: Level 1 Level 2 Level 3 Total Lower-of-cost (U.S. dollars in millions) March 31, 2023 Vehicles held for disposition $ — $ — $ 35 $ 35 $ 7 March 31, 2022 Vehicles held for disposition $ — $ — $ 26 $ 26 $ 5 The following describes the methodologies and assumptions used in nonrecurring fair value measurements, which relate to the application of lower of cost or fair value accounting on long-lived assets. Vehicles Held for Disposition Vehicles held for disposition consist of returned and repossessed vehicles. They are valued at the lower of their carrying value or estimated fair value, less estimated disposition costs. The fair value is based on current average selling prices of like vehicles at wholesale used vehicle auctions. Fair Value of Financial Instruments The following tables summarize the carrying values and fair values of the Company’s financial instruments except for those measured at fair value on a recurring basis. Certain financial instruments and all nonfinancial assets and liabilities are excluded from fair value disclosure requirements including the Company’s investment in operating leases. The carrying values of cash, cash equivalents, and restricted cash approximate fair values due to the short-term nature and limited credit risk of the instruments. March 31, 2023 Fair value Carrying Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Dealer loans, net 2,831 — — 2,507 2,507 Retail loans, net 34,754 — — 33,674 33,674 Liabilities: Commercial paper $ 6,375 $ — $ 6,374 $ — $ 6,374 Bank loans 1,894 — 1,886 — 1,886 Medium term note programs 21,962 — 20,745 — 20,745 Other debt 3,176 — 3,045 — 3,045 Secured debt 6,927 — 6,786 — 6,786 March 31, 2022 Fair value Carrying Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Dealer loans, net 2,061 — — 1,859 1,859 Retail loans, net 35,420 — — 35,161 35,161 Liabilities: Commercial paper $ 2,307 $ — $ 2,306 $ — $ 2,306 Bank loans 3,108 — 3,110 — 3,110 Medium term note programs 28,684 — 28,055 — 28,055 Other debt 3,952 — 3,828 — 3,828 Secured debt 8,888 — 8,762 — 8,762 Fair value information presented in the tables above is based on information available at March 31, 2023 and 2022. Although the Company is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been updated since those dates, and therefore, the current estimates of fair value at dates subsequent to those dates may differ significantly from the amounts presented herein.

Segment Information

Segment Information	12 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Segment Information	Segment Information The Company’s reportable segments are based on the two geographic regions where operating results are measured and evaluated by management: the United States and Canada. Segment performance is evaluated using an internal measurement basis, which differs from the Company’s consolidated results prepared in accordance with GAAP. Segment performance is evaluated on a pre-tax basis before the effect of valuation adjustments on derivative instruments and revaluations of foreign currency denominated debt. Since the Company does not elect to apply hedge accounting, the impact to earnings resulting from these valuation adjustments as reported under GAAP is not representative of segment performance as evaluated by management. Realized gains and losses on derivative instruments, net of realized gains and losses on foreign currency denominated debt, are included in the measure of net revenues when evaluating segment performance. No adjustments are made to segment performance to allocate any revenues or expenses. Financing products offered throughout the United States and Canada are substantially similar. Segment revenues from the various financing products are reported on the same basis as GAAP consolidated results. Financial information for the Company’s reportable segments for the fiscal years ended or at March 31 is summarized in the following tables: United Canada Valuation Consolidated (U.S. dollars in millions) Year ended March 31, 2023 Revenues: Retail $ 1,299 $ 169 $ — $ 1,468 Dealer 104 12 — 116 Operating leases 5,535 1,065 — 6,600 Total revenues 6,938 1,246 — 8,184 Leased vehicle expenses 4,059 832 — 4,891 Interest expense 723 164 — 887 Realized (gains)/losses on derivatives and foreign currency denominated debt (92) (42) 134 — Net revenues 2,248 292 (134) 2,406 Other income, net 77 15 — 92 Total net revenues 2,325 307 (134) 2,498 Expenses: General and administrative expenses 430 55 — 485 Provision for credit losses 138 8 — 146 Early termination loss on operating leases 38 — — 38 Loss on derivative instruments — — 697 697 Gain on foreign currency revaluation of debt — — (410) (410) Income before income taxes $ 1,719 $ 244 $ (421) $ 1,542 March 31, 2023 Finance receivables, net $ 33,518 $ 4,067 $ — $ 37,585 Investment in operating leases, net 23,853 3,925 — 27,778 Total assets 60,556 8,335 — 68,891 United Canada Valuation Consolidated (U.S. dollars in millions) Year ended March 31, 2022 Revenues: Retail $ 1,414 $ 185 $ — $ 1,599 Dealer 58 9 — 67 Operating leases 6,489 1,289 — 7,778 Total revenues 7,961 1,483 — 9,444 Leased vehicle expenses 4,655 975 — 5,630 Interest expense 604 109 — 713 Realized (gains)/losses on derivatives and foreign currency denominated debt 121 22 (143) — Net revenues 2,581 377 143 3,101 Other income, net 36 14 — 50 Total net revenues 2,617 391 143 3,151 Expenses: General and administrative expenses 423 56 — 479 Provision for credit losses (22) — — (22) Early termination loss on operating leases 16 — — 16 Loss on derivative instruments — — 571 571 Gain on foreign currency revaluation of debt — — (470) (470) Income before income taxes $ 2,200 $ 335 $ 42 $ 2,577 March 31, 2022 Finance receivables, net $ 33,320 $ 4,161 $ — $ 37,481 Investment in operating leases, net 28,691 4,933 — 33,624 Total assets 66,877 9,401 — 76,278 United Canada Valuation Consolidated (U.S. dollars in millions) Year ended March 31, 2021 Revenues: Retail $ 1,474 $ 190 $ — $ 1,664 Dealer 94 13 — 107 Operating leases 6,437 1,328 — 7,765 Total revenues 8,005 1,531 — 9,536 Leased vehicle expenses 4,576 1,004 — 5,580 Interest expense 772 121 — 893 Realized (gains)/losses on derivatives and foreign currency denominated debt 247 39 (286) — Net revenues 2,410 367 286 3,063 Other income, net 51 13 — 64 Total net revenues 2,461 380 286 3,127 Expenses: General and administrative expenses 418 53 — 471 Provision for credit losses (65) (4) — (69) Early termination loss on operating leases (157) 1 — (156) Gain on derivative instruments — — (229) (229) Loss on foreign currency revaluation of debt — — 430 430 Income before income taxes $ 2,265 $ 330 $ 85 $ 2,680 March 31, 2021 Finance receivables, net $ 36,905 $ 4,528 $ — $ 41,433 Investment in operating leases, net 30,036 5,309 — 35,345 Total assets 70,590 10,212 — 80,802

Summary of Business and Signi_2

Summary of Business and Significant Accounting Policies (Policies)	12 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	American Honda Finance Corporation (AHFC) is a wholly-owned subsidiary of American Honda Motor Co., Inc. (AHM or the Parent). Honda Canada Finance Inc. (HCFI) is a majority-owned subsidiary of AHFC. Noncontrolling interest in HCFI is held by Honda Canada Inc. (HCI), an affiliate of AHFC. AHM is a wholly-owned subsidiary and HCI is an indirect wholly-owned subsidiary of Honda Motor Co., Ltd. (HMC). AHM and HCI are the sole authorized distributors of Honda and Acura products, including motor vehicles, parts, and accessories in the United States and Canada. Unless otherwise indicated by the context, all references to the “Company” in this report include AHFC and its consolidated subsidiaries (refer Note 1(b) Principles of Consolidation below), and references to “AHFC” refer solely to American Honda Finance Corporation (excluding AHFC’s subsidiaries). The Company provides various forms of financing to authorized independent dealers of Honda and Acura products and their customers in the United States and Canada. The Company also finances a limited number of vehicles other than Honda and Acura products. The Company’s financing products include the following categories: Retail Loans – The Company acquires retail installment contracts from dealers who originate the contracts with consumers. Retail loans are collateralized by liens on the related vehicles or equipment. Retail loan terms range primarily from two Retail Leases – The Company acquires closed-end vehicle lease contracts between dealers and their customers. The dealer assigns all of its rights, title, and interest in the lease and motor vehicle to the Company upon acquisition. Lease terms range primarily from two Dealer Loans – The Company provides wholesale and commercial loans to dealers. Wholesale loans are used by dealers to finance the purchase of inventory. The Company retains purchase money security interest in all inventory financed; however, the Company has no right to recover a product sold to consumers in the ordinary course of business. The Company has agreements with AHM and HCI, which provide for their repurchase of new, unused, and unregistered vehicles or equipment that have been repossessed from a dealer who defaults on a wholesale loan. Commercial loans are used primarily for financing dealership property and working capital purposes. Commercial loans are generally secured by the associated properties, as well as corporate or personal guarantees from, or on behalf of, the related dealer’s principals. The Company’s finance receivables and investment in operating leases are geographically diversified throughout the United States and Canada.
Use of Estimates	The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated balance sheets and revenues and expenses for the applicable periods. Those estimates include, among other things, the residual value estimates of lease vehicles and estimates for the allowances for credit losses and early termination losses on operating leases. Actual results could differ significantly from these estimates.
Business Risks	Business RisksThe Company’s business is substantially dependent upon the sale of Honda and Acura products. The financing business is also highly competitive. The Company’s competitors and potential competitors include national, regional, and local finance companies and other types of financial services companies, such as commercial banks, savings and loan associations, leasing companies, online banks and credit unions. The Company’s future profitability will be largely dependent upon its ability to provide cost-competitive, quality financial products and services to its customers and to the availability and cost of its capital in relation to that of its competitors. The Company’s liquidity is largely dependent on access to credit markets. The Company has been able to meet funding needs through diversified funding sources. Higher than expected credit losses and lower than anticipated lease residual values due to prolonged periods of negative economic and market conditions can adversely affect the Company’s financial position, results of operations, and related cash flows. The Company manages these risks with purchasing and residual value setting standards, collection efforts, and lease remarketing programs. Refer to Note 1( e ) for additional discussion on the allowance for credit losses and Note 1( f ) for additional discussion on the determination of lease residual values. The Company is exposed to market risks, principally interest rate and foreign currency risks, and utilizes derivative instruments to manage those risks. Although the use of derivative instruments mitigates a substantial portion of these risks, not all risk is eliminated. Refer to Note 1( l ) for additional discussion on derivative instruments.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of AHFC and its subsidiaries. All subsidiaries are wholly-owned, except for HCFI, which is majority-owned (52.33% as of March 31, 2023 and 2022). The Company also consolidates variable interest entities (VIEs) where the Company is the primary beneficiary. All consolidated VIEs are statutory special purpose entities (SPEs) formed by the Company to accommodate securitization structures. All significant intercompany balances and transactions have been eliminated upon consolidation.
Comprehensive Income	Comprehensive IncomeComprehensive income consists of net income and the effect of foreign currency translation adjustments and is presented in the consolidated statements of comprehensive income.
Cash and Cash Equivalents	Cash and Cash EquivalentsCash and cash equivalents include cash on hand and short-term, highly liquid investments with original maturities of three months or less.
Finance Receivables	Finance Receivables Finance receivables include retail loan and dealer loan portfolio segments. The retail loan portfolio segment consists of retail installment contracts with consumers. The dealer loan portfolio segment consists of wholesale and commercial loans with dealers. Finance receivables are measured at amortized cost, less the allowance for credit losses. The amortized cost basis includes the unpaid principal balance, unearned origination fees, and deferred origination costs. Origination fees include payments received from AHM and HCI for incentive programs (refer to Note 6 regarding these related party transactions). Origination costs include payments made to dealers for rate participation and other initial direct costs (IDC). Accrued interest receivable balances are presented within other assets. Revenue on finance receivables includes contractual interest income, accretion of origination fees, and amortization of origination costs. Contractual interest income is accrued using the simple interest method. Origination fees and costs are recognized in revenue using the interest method over the contractual life of the finance receivables. The recognition of finance revenue on retail loans is discontinued when the underlying collateral is repossessed or accounts are charged off. The recognition of finance revenue on dealer loans is discontinued when they are 90 days or more past due or when it has been determined the Company will be unable to collect all principal and interest payments.
Allowance for Credit Losses	Allowance for Credit Losses The allowance for credit losses is management’s estimate of lifetime expected credit losses on the amortized cost basis of finance receivables which is deducted from or, in the case of expected net recoveries, added to the amortized cost. The Company has elected not to measure an allowance for credit losses for accrued interest receivable. The allowance is measured on an undiscounted basis. Management evaluates the allowance, at minimum, on a quarterly basis. Retail loans are evaluated on a collective basis and grouped into pools with similar risk characteristics such as origination quarter, internal credit grade at origination, product type, and original term. The allowance for retail loans is measured using econometric regression models that correlate vintage age, credit quality, economic, and other variables to historical vintage-level credit loss performance. Statistically relevant economic factors such as unemployment rates, bankruptcies, and used vehicle price indexes are applied in the analysis of the economic environment. Current and forecasted economic conditions are applied in the models to project monthly gross loss rates in terms of origination dollars for the remaining contractual life of each vintage. Recoveries are projected as a percentage of the cumulative forecasted loss dollar of each vintage. The contractual term is the estimated lifetime of retail loans and is considered to be a reasonable and supportable forecast period of future economic conditions. Economic forecasts and macroeconomic variables are obtained from a third party economic research firm that extend through the lifetime of retail loans and converge to long-run equilibrium trends. Baseline forecasts that reflect the most likely economic future is the single economic scenario applied in the models. Qualitative adjustments may also be applied if management believes the quantitative models do not reflect the best estimate of lifetime expected credit losses. Dealer loans are evaluated on a collective basis if they have not been specifically identified as impaired. Collectively evaluated dealer loans are grouped by loan type and internal risk ratings and the allowance is measured primarily using historical loss rates. Dealer loans that have been specifically identified as impaired are excluded from the collective assessment and the allowance is measured at the individual dealer level. Dealer loans are considered impaired when it is probable that the Company will be unable to collect the amounts due according to the terms of the applicable contracts. The Company’s determination of whether dealer loans are impaired is based on evaluations of the dealership's payment history, financial condition, ability to perform under the terms of the loan agreements, and collateral values, as applicable. Expected credit losses on impaired dealer loans are measured based upon the specific circumstances of each dealer considering all expected sources of repayment or the fair value of the collateral if foreclosure is probable. Prior to April 1, 2020, the allowance for credit losses was management's estimate of probable losses incurred on finance receivables. The allowance was based on management's evaluation of many factors, including the Company's historical credit loss experience, the value of the underlying collateral, delinquency trends, and economic conditions. Retail loans were collectively evaluated for impairment. Dealer loans that had not been specifically identified as impaired were collectively evaluated for impairment. Dealer loans were individually evaluated for impairment when specifically identified as impaired.
Investment in Operating Leases and Determination of Lease Residual Values	Investment in Operating Leases and Determination of Lease Residual ValuesThe investment in operating leases is reported at cost, less accumulated depreciation and impairment losses, and net of unearned origination fees and deferred origination costs. Origination fees include payments received from AHM and HCI for incentive programs (refer to Note 6 regarding these related party transactions). Origination costs include payments made for dealer participation. Operating lease revenue is recognized on a straight-line basis over the lease term. Operating lease revenue includes accretion of origination fees, net of dealer rate participation amortization, which are also recognized on a straight-line basis over the lease term. Operating lease vehicles are depreciated on a straight-line basis over the lease term to the lower of contract residual values or estimated end of term residual values. Adjustments to estimated end of term residual values are made prospectively on a straight-line basis over the remaining lease term. Contractual residual values of lease vehicles are determined at lease inception based on the Company's expectations of used vehicle values at the end of their lease terms. Lease customers have the option at the end of the lease term to return the vehicle to the dealer or to buy the vehicle for the contractual residual value (or if purchased prior to lease maturity, for the outstanding contractual balance). Returned lease vehicles can be purchased by the grounding dealer for the contractual residual value (or if purchased prior to lease maturity, for the outstanding contractual balance) or a market based price. Returned lease vehicles that are not purchased by the grounding dealers are sold through online and physical auctions. The Company is exposed to a risk of loss on the disposition of returned lease vehicles if the market values of leased vehicles at the end of their lease terms are less than their contractual residual values. Estimated end of term residual values are dependent on the expected market values of leased vehicles at the end of their lease terms and the percentage of leased vehicles expected to be returned by the lessees. Factors considered in this evaluation include, among other factors, economic conditions, external market information on new and used vehicles, historical trends, and recent auction values. The Company assesses the estimated end of term residual values at minimum on a quarterly basis. A review for impairment of the Company’s operating lease assets is performed whenever events or changes in circumstances indicate that their carrying values may not be recoverable. Generally, an impairment condition is determined to exist if estimated undiscounted cash flows from the use and eventual disposition of the asset is lower than their carrying value. For the purposes of testing for impairment, operating lease assets are grouped at the lowest level the Company can reasonably estimate cash flows. If impairment conditions are met, impairment losses are measured by the amount carrying values exceed their fair values. A portion of the Company’s operating leases is expected to terminate prior to their scheduled maturities when lessees default on their contractual obligations. Losses are generally realized upon the disposition of the repossessed operating lease vehicles. Operating leases are collectively evaluated to determine the estimated losses incurred using modeling methodologies consistent with those used for retail loans. Estimated early termination losses are recognized as a reduction to the carrying value of operating lease assets.
Vehicles Held for Disposition	Vehicles Held for DispositionVehicles held for disposition consist of returned and repossessed vehicles. The vehicles are either sold at used vehicle auctions or purchased by dealers, usually within two months of return or repossession. The vehicles are valued at the lower of their carrying value or estimated fair value, less estimated disposition costs. For returned vehicles, valuation adjustments are recorded as a charge against the gain/loss on disposition of lease vehicles. Valuation adjustments made for repossessed collateral of finance receivables and operating leases are recognized as charges to the allowance for credit loss and estimated early termination losses on operating leases, respectively.
Vehicle Service Contract Administration	Vehicle Service Contract AdministrationAHFC performed administrative services for vehicle service contracts (VSC) issued by certain subsidiaries of AHM. AHFC received fees for performing the services when the contracts were acquired, which was recognized in other income over the lives of the underlying contracts, proportionate to the anticipated amount of service to be performed. Effective April 1, 2021, the administration of VSCs was transferred to AHM. HCFI performs marketing services for vehicle service contracts issued by HCI. HCFI receives fees as the services are performed, which is recognized in other income.
Securitizations and Variable Interest Entities	Securitizations and Variable Interest EntitiesThe Company enters into securitization transactions for funding purposes. Securitization transactions involve transferring pools of retail loans and operating leases to bankruptcy-remote SPEs. The SPEs are established to accommodate securitization structures, which have the limited purpose of acquiring assets, issuing asset-backed securities, and making payments on the securities. Assets transferred to SPEs are considered legally isolated from the Company and the claims of the Company’s creditors. The Company continues to service the retail loans and operating leases transferred to the SPEs. Investors in the notes issued by a SPE only have recourse to the assets of such SPE and do not have recourse to the assets of AHFC, HCFI, or our other subsidiaries or to other SPEs. The assets of SPEs are the only source for repayment on the notes. The Company’s securitizations are structured to provide credit enhancements to investors in notes issued by the SPEs. Credit enhancements can include the following: Subordinated certificates – securities issued by the SPEs that are retained by the Company and are subordinated in priority of payment to the notes. Overcollateralization – securitized asset balances that exceed the balance of securities issued by SPEs. Excess interest – excess interest collections to be used to cover losses on defaulted loans. Reserve funds – restricted cash accounts held by SPEs to cover shortfalls in payments of interest and principal required to be paid on the notes. Yield supplement accounts – restricted cash accounts held by SPEs to supplement interest payments on notes. The risk retention regulations in Regulation RR of the Securities Exchange Act of 1934, as amended, require the sponsor to retain an economic interest in the credit risk of the securitized assets, either directly or through one or more majority-owned affiliates. Standard risk retention options allow the sponsor to retain either an eligible vertical interest, an eligible horizontal residual interest, or a combination of both. The Company has satisfied this obligation by retaining an eligible vertical interest of an amount equal to at least 5% of the principal amount of each class of note and certificate issued for the securitization transaction that was subject to this rule but may choose to use other structures in the future. The securitization SPEs formed by the Company are VIEs, which are required to be consolidated by their primary beneficiary. The Company is considered to be the primary beneficiary of these SPEs due to (i) the power to direct the activities of the SPEs that most significantly impact the SPEs economic performance through its role as servicer, and (ii) the obligation to absorb losses or the right to receive residual returns that could potentially be significant to the SPEs through the subordinated certificates and residual interest retained. Consolidation of these SPEs results in the securitization transactions being accounted for as on-balance sheet secured financings. The securitized retail loans and operating leases remain on the consolidated balance sheet of the Company along with the notes issued by the SPEs. The notes are secured solely by the assets of the SPEs and not by any other assets of the Company. The assets of the SPEs are the only source of funds for repayment on the notes. Restricted cash accounts held by the SPEs can only be used to support payments on the notes. The restricted cash accounts are included in the Company’s consolidated balance sheet in other assets. The Company recognizes revenue from retail loans and operating leases and provisions for credit losses and uncollectible operating leases on the securitized assets and interest expense on the related secured debt.
Income Taxes	Income TaxesThe Company’s U.S. entities are included in the consolidated U.S. federal and many consolidated or combined state and local income tax returns of the Parent, though in some cases the Company files separately as required by certain state and local jurisdictions. The Company provides its share of the consolidated or combined income tax on a modified separate return basis pursuant to an intercompany income tax allocation agreement that it has entered into with the Parent. The Company files a separate California return based on California’s worldwide income and apportionment rules. To the extent the Company’s U.S. entities have taxable losses in its consolidated federal, and consolidated or combined state and local tax returns, a benefit will be recognized to the extent that it is more likely than not that these losses will be utilized by the consolidated or combined return group in the current or future year and thus would be subject to current or future reimbursement by the Parent under the terms of the intercompany income tax allocation agreement. To the extent such losses are attributable to a state where the Company files a separate return, a benefit for such losses would be recognized to the extent such losses are more likely than not to be utilized in the future. All but an insignificant amount of the federal and state taxes payable or receivable shown on the consolidated balance sheets are due to or from the Parent, pursuant to the intercompany income tax allocation agreement. The Company’s Canadian subsidiary, HCFI, files Canadian federal and provincial income tax returns based on the separate legal entity financial statements. HCFI does not file U.S. federal, state, or local income tax returns. Consequently, HCFI does not participate in the intercompany income tax allocation agreement that the Company has with the Parent. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income during the period in which the enactment date occurs. A valuation allowance is provided to offset deferred tax assets if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In addition, tax benefits related to positions considered uncertain are recognized only if, based on the technical merits of the issue, the Company believes that it is more likely than not to sustain the position and then at the largest amount that is greater than 50% likely to be realized upon settlement. The Company has elected not to record deferred taxes for Global Intangible Low-Taxed Income (GILTI) related book-tax-differences and will treat taxes due to GILTI as a current period expense when incurred.
Foreign Currency Translation	Foreign Currency Translation Upon consolidation, the assets and liabilities of HCFI are translated at year-end exchange rates, and the revenues and expenses are translated at the average rates of exchange during the respective years. The resulting translation adjustment is included in other comprehensive income and the cumulative translation adjustment is reported as a separate component of equity in accumulated other comprehensive income and noncontrolling interest. Foreign currency denominated debt is translated at year-end exchange rates, and the foreign currency transaction gains and losses are recognized through earnings.
Derivative Instruments	Derivative Instruments The Company utilizes derivative instruments to manage exposures to interest rate and foreign currency risks. The Company’s assets consist primarily of fixed rate receivables and operating lease assets. The Company’s liabilities consist of both floating and fixed rate debt, denominated in various currencies. Interest rate and basis swaps are used to match the interest rate characteristics of the Company’s assets and debt. Currency swaps are used to manage currency risk exposure on foreign currency denominated debt. Derivative instruments are not used for trading or any other speculative purposes. All derivative financial instruments are recorded on the consolidated balance sheets at fair value. The Company elects to present derivative instruments in the Company’s consolidated balance sheets on a gross basis rather than on a net basis by counterparty. Refer to Note 5 for additional information. Except in very limited circumstances involving counterparties with consolidated securitization SPEs, AHFC generally has not entered into credit support (collateral) agreements with its counterparties. Changes in the fair value of derivatives are recognized in earnings in the period of the change. In Canada, HCFI is a party to credit support agreements that require posting of cash collateral to mitigate credit risk on derivative positions.
Recently Adopted/Issued Accounting Standards	Recently Adopted Accounting Standards Effective April 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and the related amendments on a modified retrospective basis. The amendments replace the previous incurred loss impairment methodology with a methodology that reflects lifetime expected credit losses. The adoption of ASU 2016-13 resulted in an increase to the allowance for credit loss of $101 million along with an after-tax cumulative-effect reduction to opening retained earnings and noncontrolling interest of $75 million. Comparative information has not been restated and continues to be presented under previous accounting standards . (n) Recently Issued Accounting Standards In March 2022, the Financial Accounting Standards Board issued ASU 2022-02, Financial Instruments—Credit Losses (Topic326): Troubled Debt Restructurings and Vintage Disclosures
Legal Proceedings and Regulatory Matters	Legal Proceedings and Regulatory Matters The Company establishes accruals for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. When able, the Company will determine estimates of reasonably possible loss or range of loss, whether in excess of any related accrued liability or where there is no accrued liability. Given the inherent uncertainty associated with legal matters, the actual costs of resolving legal claims and associated costs of defense may be substantially higher or lower than the amounts for which accruals have been established.
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. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are those other than quoted prices included within Level 1 that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Nonperformance risk is also required to be reflected in the fair value measurement, including an entity’s own credit standing when measuring the fair value of a liability.
Segment Reporting	Segment performance is evaluated using an internal measurement basis, which differs from the Company’s consolidated results prepared in accordance with GAAP. Segment performance is evaluated on a pre-tax basis before the effect of valuation adjustments on derivative instruments and revaluations of foreign currency denominated debt. Since the Company does not elect to apply hedge accounting, the impact to earnings resulting from these valuation adjustments as reported under GAAP is not representative of segment performance as evaluated by management. Realized gains and losses on derivative instruments, net of realized gains and losses on foreign currency denominated debt, are included in the measure of net revenues when evaluating segment performance.

Finance Receivables (Tables)

Finance Receivables (Tables)	12 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Summary of Finance Receivables	Finance receivables consisted of the following: March 31, 2023 Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 35,110 $ 2,836 $ 37,946 Allowance for credit losses (248) (5) (253) Deferred dealer participation and other deferred costs 472 — 472 Unearned subsidy income (580) — (580) Finance receivables, net $ 34,754 $ 2,831 $ 37,585 March 31, 2022 Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 36,028 $ 2,066 $ 38,094 Allowance for credit losses (206) (5) (211) Deferred dealer participation and other deferred costs 390 — 390 Unearned subsidy income (792) — (792) Finance receivables, net $ 35,420 $ 2,061 $ 37,481
Summary of Activity in Allowance for Credit Losses of Finance Receivables	The following is a summary of the activity in the allowance for credit losses of finance receivables: Year ended March 31, 2023 Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 206 $ 5 $ 211 Provision 146 — 146 Charge-offs (193) — (193) Recoveries 90 — 90 Effect of translation adjustment (1) — (1) Ending balance $ 248 $ 5 $ 253 Year ended March 31, 2022 Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 280 $ 8 $ 288 Provision (19) (3) (22) Charge-offs (145) — (145) Recoveries 90 — 90 Effect of translation adjustment — — — Ending balance $ 206 $ 5 $ 211 Year ended March 31, 2021 Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 364 $ 6 $ 370 Cumulative effective of adopting ASU 2016-13 98 3 101 Beginning balance as of April 1, 2020 462 9 471 Provision (67) (2) (69) Charge-offs (232) (1) (233) Recoveries 116 2 118 Effect of translation adjustment 1 — 1 Ending balance $ 280 $ 8 $ 288
Summary of Aging Analysis of Past Due Finance Receivables	The following is an aging analysis of past due finance receivables: 30 – 59 days 60 – 89 days 90 days Total Current or Total (U.S. dollars in millions) March 31, 2023 Retail loans: New auto $ 217 $ 44 $ 11 $ 272 $ 27,479 $ 27,751 Used and certified auto 103 25 6 134 5,870 6,004 Motorcycle and other 14 5 2 21 1,226 1,247 Total retail 334 74 19 427 34,575 35,002 Dealer loans: Wholesale flooring — — — — 1,946 1,946 Commercial loans — — — — 890 890 Total dealer loans — — — — 2,836 2,836 Total finance receivables $ 334 $ 74 $ 19 $ 427 $ 37,411 $ 37,838 March 31, 2022 Retail loans: New auto $ 194 $ 50 $ 11 $ 255 $ 29,297 $ 29,552 Used and certified auto 78 22 5 105 4,615 4,720 Motorcycle and other 13 4 2 19 1,335 1,354 Total retail 285 76 18 379 35,247 35,626 Dealer loans: Wholesale flooring — — — — 1,266 1,266 Commercial loans — — — — 800 800 Total dealer loans — — — — 2,066 2,066 Total finance receivables $ 285 $ 76 $ 18 $ 379 $ 37,313 $ 37,692
Summary of Portfolio of Retail Loans and Dealer Loans Leases by Credit Quality Indicator	The following table summarizes the amortized cost of retail loans by internal credit grade: Retail loans by vintage year 2023 2022 2021 2020 2019 Prior Total March 31, 2023 (U.S. dollars in millions) Credit grade A $ 8,332 $ 5,994 $ 5,188 $ 1,570 $ 661 $ 171 $ 21,916 Credit grade B 2,828 1,693 1,308 504 229 78 6,640 Credit grade C 1,864 1,174 887 407 189 71 4,592 Credit grade D 447 294 255 191 92 36 1,315 Others 211 146 97 50 22 13 539 Total retail loans $ 13,682 $ 9,301 $ 7,735 $ 2,722 $ 1,193 $ 369 $ 35,002 Retail loans by vintage year 2022 2021 2020 2019 2018 Prior Total March 31, 2022 (U.S. dollars in millions) Credit grade A $ 8,849 $ 8,065 $ 3,073 $ 1,912 $ 727 $ 169 $ 22,795 Credit grade B 2,433 2,010 898 525 271 74 6,211 Credit grade C 1,713 1,409 718 405 228 64 4,537 Credit grade D 451 418 341 188 100 33 1,531 Others 214 153 91 56 25 13 552 Total retail loans $ 13,660 $ 12,055 $ 5,121 $ 3,086 $ 1,351 $ 353 $ 35,626 The following table summarizes the amortized cost of dealer loans by risk rating groups: Commercial loans by vintage fiscal year 2023 2022 2021 2020 2019 Prior Revolving loans Wholesale Flooring Total March 31, 2023 (U.S. dollars in millions) Group I $ 67 $ 10 $ 143 $ 56 $ 24 $ 89 $ 428 $ 1,223 $ 2,040 Group II 1 6 29 6 — 31 — 723 796 Group III — — — — — — — — — Total dealer loans $ 68 $ 16 $ 172 $ 62 $ 24 $ 120 $ 428 $ 1,946 $ 2,836 Commercial loans by vintage fiscal year 2022 2021 2020 2019 2018 Prior Revolving loans Wholesale Flooring Total March 31, 2022 (U.S. dollars in millions) Group I $ 11 $ 207 $ 56 $ 18 $ 32 $ 99 $ 317 $ 671 $ 1,411 Group II 6 3 7 17 22 5 — 595 655 Group III — — — — — — — — — Total dealer loans $ 17 $ 210 $ 63 $ 35 $ 54 $ 104 $ 317 $ 1,266 $ 2,066

Investment in Operating Leases

Investment in Operating Leases (Tables)	12 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Schedule of Investment in Operating Leases	Investment in operating leases consisted of the following: March 31, 2023 2022 (U.S. dollars in millions) Operating lease vehicles $ 36,412 $ 42,990 Accumulated depreciation (7,989) (8,529) Deferred dealer participation and initial direct costs 88 114 Unearned subsidy income (656) (869) Estimated early termination losses (77) (82) Investment in operating leases, net $ 27,778 $ 33,624
Schedule of Operating Lease Revenue	Operating lease revenue consisted of the following: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Lease payments $ 5,976 $ 6,913 $ 6,808 Subsidy income and dealer rate participation, net 561 798 894 Reimbursed lessor costs 63 67 63 Total operating lease revenue, net $ 6,600 $ 7,778 $ 7,765
Schedule of Leased Vehicle Expense	Leased vehicle expenses consisted of the following: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Depreciation expense $ 4,872 $ 5,676 $ 5,669 Initial direct costs and other lessor costs 134 151 140 Gain on disposition of leased vehicles (1) (115) (197) (229) Total leased vehicle expenses, net $ 4,891 $ 5,630 $ 5,580 ________________________ (1) Included in the gain on disposition of leased vehicles are end of term charges of $2 million, $17 million, and $54 million for the fiscal years ended March 31, 2023, 2022 and 2021, respectively.
Schedule of Operating Lease Payments	Contractual operating lease payments due as of March 31, 2023 are summarized below. Based on the Company's experience, it is expected that a portion of the Company's operating leases will terminate prior to the scheduled lease term. The summary below should not be regarded as a forecast of future cash collections. Year ending March 31, (U.S. dollars in millions) 2024 $ 4,484 2025 2,469 2026 971 2027 175 2028 39 Total $ 8,138

Debt (Tables)

Debt (Tables)	12 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Outstanding Debt Net of Discounts and Fees, Weighted Average Contractual Interest Rates and Range of Contractual Interest Rates	The Company issues debt in various currencies with both floating and fixed interest rates. Outstanding debt net of discounts and fees, weighted average contractual interest rates and range of contractual interest rates were as follows: Weighted average contractual interest rate (1) Contractual March 31, March 31, March 31, 2023 2022 2023 2022 2023 2022 (U.S. dollars in millions) Unsecured debt: Commercial paper $ 6,375 $ 2,307 5.18 % 0.74 % 4.30 - 5.93% 0.33 - 1.21% Bank loans 1,894 3,108 5.66 % 1.52 % 5.38 - 6.14% 0.94 - 2.01% Public MTN program 21,962 28,659 1.99 % 1.53 % 0.30 - 5.43% 0.30 - 3.63% Euro MTN programme — 25 — 2.23 % — - — 2.23 - 2.23% Other debt 3,176 3,952 3.15 % 2.20 % 1.34 - 5.88% 1.05 - 3.44% Total unsecured debt 33,407 38,051 Secured debt 6,927 8,888 2.42 % 0.93 % 0.20 - 5.50% 0.14 - 3.30% Total debt $ 40,334 $ 46,939 _______________________ (1) Weighted average contractual interest rates for commercial paper are bond equivalent yields. Contractual interest rates approximate effective yields.
Scheduled and Projected Maturities of Debt	The Company’s secured debt is amortizing, and unsecured debt is non-amortizing. Scheduled and projected maturities of the Company’s debt at March 31, 2023 are summarized below: 2024 2025 2026 2027 2028 Thereafter Total (U.S. dollars in millions) Unsecured debt: Commercial paper $ 6,403 $ — $ — $ — $ — $ — $ 6,403 Bank loans 274 566 111 759 185 — 1,895 Public MTN program 7,193 5,336 2,300 2,367 2,367 2,448 22,011 Other debt 592 555 925 296 814 — 3,182 Total unsecured debt 14,462 6,457 3,336 3,422 3,366 2,448 33,491 Secured debt (1) 3,931 2,106 688 178 33 — 6,936 Total debt (2) $ 18,393 $ 8,563 $ 4,024 $ 3,600 $ 3,399 $ 2,448 $ 40,427 Unamortized discounts/fees (93) Total debt, net $ 40,334 ________________________ (1) Projected repayment schedule of secured debt. Reflects payment performance assumptions on underlying assets. (2) Principal amounts.

Derivative Instruments (Tables)

Derivative Instruments (Tables)	12 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Notional Balances and Fair Values of Derivatives	The notional balances and fair values of the Company’s derivatives are presented below. The derivative instruments are presented on a gross basis in the Company’s consolidated balance sheets. Refer to Note 14 regarding the valuation of derivative instruments. March 31, 2023 2022 Notional Assets Liabilities Notional Assets Liabilities (U.S. dollars in millions) Interest rate swaps $ 55,974 $ 1,133 $ 1,062 $ 61,941 $ 931 $ 683 Cross currency swaps 4,328 — 674 7,920 40 436 Gross derivative assets/liabilities 1,133 1,736 971 1,119 Collateral posted/held — 37 5 28 Counterparty netting adjustment (1,000) (1,000) (804) (804) Net derivative assets/liabilities $ 133 $ 773 $ 172 $ 343
Income Statement Impact of Derivative Instruments	The income statement impact of derivative instruments is presented below. There were no derivative instruments designated as part of a hedge accounting relationship during the periods presented. Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Interest rate swaps $ 113 $ 140 $ (148) Cross currency swaps (810) (711) 377 Total gain/(loss) on derivative instruments $ (697) $ (571) $ 229

Transactions Involving Relate_2

Transactions Involving Related Parties (Tables)	12 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Summary of Income Statement and Balance Sheet Impact of Transactions with Parent and Affiliated Companies	The following tables summarize the income statement and balance sheet impact of transactions with the Parent and affiliated companies: Years ended March 31, Income Statement 2023 2022 2021 (U.S. dollars in millions) Revenue: Subsidy income $ 1,036 $ 1,410 $ 1,476 Interest expense: Related party debt — — 2 Other income, net: VSC administration fees 2 3 106 Support service fees — — (45) General and administrative expenses: Support Compensation Agreement fees 63 76 72 Benefit plan expenses 8 8 9 Shared services 74 72 69 Lease expense 4 4 2 March 31, Balance Sheet 2023 2022 (U.S. dollars in millions) Assets : Finance receivables, net: Unearned subsidy income $ (573) $ (783) Investment in operating leases, net: Unearned subsidy income (655) (867) Due from Parent and affiliated companies 66 62 Liabilities: Due to Parent and affiliated companies 161 125 Other liabilities: Accrued benefit expenses 63 63 Dividend Payable — 133 Operating lease liabilities 11 15

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Consolidated Income Tax Expense/(Benefit)	The Company’s consolidated income tax expense/(benefit) was computed on a modified separate return basis pursuant to the intercompany tax allocation agreement with the Parent and consisted of the following: Current Deferred Total (U.S. dollars in millions) Year ended March 31, 2023 Federal $ 839 $ (575) $ 264 State and local 35 39 74 Foreign 6 59 65 Total $ 880 $ (477) $ 403 Year ended March 31, 2022 Federal $ 643 $ (205) $ 438 State and local 220 (84) 136 Foreign 44 57 101 Total $ 907 $ (232) $ 675 Year ended March 31, 2021 Federal $ 36 $ 378 $ 414 State and local 146 (5) 141 Foreign 38 54 92 Total $ 220 $ 427 $ 647
Reconciliation of the Expected Income Tax Expense to the Reported Income Tax Expense	Income tax expense differs from the expected income taxes by applying the statutory federal corporate rate of 21% to income before income taxes as follows: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Computed “expected” income taxes $ 324 $ 541 $ 563 Foreign tax rate differential 13 21 19 State and local income taxes, net of federal income tax benefit 64 111 112 Change in estimated state tax rate, net of federal income tax benefit (10) (15) (6) Change in unrecognized tax benefit 4 5 (47) Other 8 12 6 Income tax expense $ 403 $ 675 $ 647
Deferred Tax Assets and Liabilities	The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: March 31, 2023 2022 (U.S. dollars in millions) Deferred tax assets: State income tax $ 134 $ 151 Receivable allowance 77 85 Accrued postretirement benefits 14 13 State loss carryforwards 23 33 Other assets 73 67 Total gross deferred tax assets 321 349 Less valuation allowance — — Net deferred tax assets 321 349 Deferred tax liabilities: HCFI leases 519 522 AHFC leases 5,418 6,563 Mark-to-market 540 — Other 131 67 Total gross deferred tax liabilities 6,608 7,152 Net deferred tax liabilities $ 6,287 $ 6,803
Reconciliation of Unrecognized Tax Benefits	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) Balance, beginning of year $ 81 $ 95 $ 169 Additions for current year tax positions — — — Additions for prior year tax positions — — — Reductions for prior year tax positions (8) (14) (21) Settlements — — (4) Reductions related to a lapse in the statute of limitations — — (49) Foreign currency translation — — — Balance, end of year $ 73 $ 81 $ 95

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Annual Minimum Lease Commitments Attributable to Long-Term Noncancelable Operating Leases	At March 31, 2023, maturities of operating lease liabilities were as follows: Year ending March 31: (U.S. dollars in millions) 2024 $ 9 2025 9 2026 10 2027 10 2028 10 Thereafter 31 Total undiscounted future lease obligations 79 Less: imputed interest (10) Operating lease liabilities $ 69

Securitizations and Variable _2

Securitizations and Variable Interest Entities (VIE) (Tables)	12 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Carrying Amounts of Assets and Liabilities of Consolidated Securitization Trusts	The table below presents the carrying amounts of assets and liabilities of consolidated SPEs as they are reported in the Company’s consolidated balance sheets. All amounts exclude intercompany balances, which have been eliminated upon consolidation. Investors in notes issued by a SPE only have recourse to the assets of such SPE and do not have recourse to the assets of AHFC, HCFI, or its other subsidiaries or to other SPEs. The assets of SPEs are the only source of funds for repayment on the notes. March 31, 2023 Assets Liabilities (U.S. dollars in millions) Securitized assets Restricted cash (1) Other Secured debt Other Retail loan securitizations $ 7,216 $ 419 $ 12 $ 6,844 $ 6 Operating lease securitizations 168 1 1 83 1 Total $ 7,384 $ 420 $ 13 $ 6,927 $ 7 March 31, 2022 Assets Liabilities (U.S. dollars in millions) Securitized assets Restricted cash (1) Other Secured debt Other Retail loan securitizations $ 9,033 $ 364 $ 14 $ 8,683 $ 3 Operating lease securitizations 294 1 1 205 2 Total $ 9,327 $ 365 $ 15 $ 8,888 $ 5 ________________________ (1) Included with other assets in the Company’s consolidated balance sheets (Note 11).

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Mar. 31, 2023
Other Assets [Abstract]
Schedule of Other Assets	Other assets consisted of the following: March 31, 2023 2022 (U.S. dollars in millions) Interest receivable and other assets $ 108 $ 82 Vehicles held for disposition 50 51 Other receivables 83 93 Software, net of accumulated amortization of $177 and $173 as of March 31, 2023, and 2022, respectively 21 22 Property and equipment, net of accumulated depreciation of $5 and $16 as of March 31, 2023, and 2022, respectively 5 5 Restricted cash 420 365 Operating lease assets 61 51 Like-kind exchange assets — 851 Other miscellaneous assets 9 13 Total $ 757 $ 1,533

Other Liabilities (Tables)

Other Liabilities (Tables)	12 Months Ended
	Mar. 31, 2023
Other Liabilities Disclosure [Abstract]
Components of Other Liabilities	Other liabilities consisted of the following: March 31, 2023 2022 (U.S. dollars in millions) Dealer payables $ 188 $ 99 Accrued interest expense 121 136 Accounts payable and accrued expenses 304 368 Lease security deposits 57 72 Unearned income, operating leases 269 317 Operating lease liabilities 69 57 Uncertain tax positions 92 94 Dividend payable — 133 Other liabilities 37 34 Total $ 1,137 $ 1,310

Other Income, net (Tables)

Other Income, net (Tables)	12 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Components of Other Income	Other income consisted of the following: Years ended March 31, 2023 2022 2021 (U.S. dollars in millions) VSC administration (Note 6) $ 2 $ 3 $ 106 Other, net 90 47 (42) Total $ 92 $ 50 $ 64

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Summary of Fair Value Hierarchy of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables summarize the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis: March 31, 2023 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 1,133 $ — $ 1,133 Cross currency swaps — — — — Total assets $ — $ 1,133 $ — $ 1,133 Liabilities: Derivative instruments: Interest rate swaps $ — $ 1,062 $ — $ 1,062 Cross currency swaps — 674 — 674 Total liabilities $ — $ 1,736 $ — $ 1,736 March 31, 2022 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 931 $ — $ 931 Cross currency swaps — 40 — 40 Total assets $ — $ 971 $ — $ 971 Liabilities: Derivative instruments: Interest rate swaps $ — $ 683 $ — 683 Cross currency swaps — 436 — 436 Total liabilities $ — $ 1,119 $ — $ 1,119
Summary of Nonrecurring Fair Value Measurements Recognized for Assets	The following tables summarize nonrecurring fair value measurements recognized for assets still held at the end of the reporting periods presented: Level 1 Level 2 Level 3 Total Lower-of-cost (U.S. dollars in millions) March 31, 2023 Vehicles held for disposition $ — $ — $ 35 $ 35 $ 7 March 31, 2022 Vehicles held for disposition $ — $ — $ 26 $ 26 $ 5
Summary of Carrying Values and Fair Values of Financial Instruments Except for those Measured at Fair Value on a Recurring Basis	The following tables summarize the carrying values and fair values of the Company’s financial instruments except for those measured at fair value on a recurring basis. Certain financial instruments and all nonfinancial assets and liabilities are excluded from fair value disclosure requirements including the Company’s investment in operating leases. The carrying values of cash, cash equivalents, and restricted cash approximate fair values due to the short-term nature and limited credit risk of the instruments. March 31, 2023 Fair value Carrying Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Dealer loans, net 2,831 — — 2,507 2,507 Retail loans, net 34,754 — — 33,674 33,674 Liabilities: Commercial paper $ 6,375 $ — $ 6,374 $ — $ 6,374 Bank loans 1,894 — 1,886 — 1,886 Medium term note programs 21,962 — 20,745 — 20,745 Other debt 3,176 — 3,045 — 3,045 Secured debt 6,927 — 6,786 — 6,786 March 31, 2022 Fair value Carrying Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Dealer loans, net 2,061 — — 1,859 1,859 Retail loans, net 35,420 — — 35,161 35,161 Liabilities: Commercial paper $ 2,307 $ — $ 2,306 $ — $ 2,306 Bank loans 3,108 — 3,110 — 3,110 Medium term note programs 28,684 — 28,055 — 28,055 Other debt 3,952 — 3,828 — 3,828 Secured debt 8,888 — 8,762 — 8,762

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Financial Information for the Company's Reportable Segments	Financial information for the Company’s reportable segments for the fiscal years ended or at March 31 is summarized in the following tables: United Canada Valuation Consolidated (U.S. dollars in millions) Year ended March 31, 2023 Revenues: Retail $ 1,299 $ 169 $ — $ 1,468 Dealer 104 12 — 116 Operating leases 5,535 1,065 — 6,600 Total revenues 6,938 1,246 — 8,184 Leased vehicle expenses 4,059 832 — 4,891 Interest expense 723 164 — 887 Realized (gains)/losses on derivatives and foreign currency denominated debt (92) (42) 134 — Net revenues 2,248 292 (134) 2,406 Other income, net 77 15 — 92 Total net revenues 2,325 307 (134) 2,498 Expenses: General and administrative expenses 430 55 — 485 Provision for credit losses 138 8 — 146 Early termination loss on operating leases 38 — — 38 Loss on derivative instruments — — 697 697 Gain on foreign currency revaluation of debt — — (410) (410) Income before income taxes $ 1,719 $ 244 $ (421) $ 1,542 March 31, 2023 Finance receivables, net $ 33,518 $ 4,067 $ — $ 37,585 Investment in operating leases, net 23,853 3,925 — 27,778 Total assets 60,556 8,335 — 68,891 United Canada Valuation Consolidated (U.S. dollars in millions) Year ended March 31, 2022 Revenues: Retail $ 1,414 $ 185 $ — $ 1,599 Dealer 58 9 — 67 Operating leases 6,489 1,289 — 7,778 Total revenues 7,961 1,483 — 9,444 Leased vehicle expenses 4,655 975 — 5,630 Interest expense 604 109 — 713 Realized (gains)/losses on derivatives and foreign currency denominated debt 121 22 (143) — Net revenues 2,581 377 143 3,101 Other income, net 36 14 — 50 Total net revenues 2,617 391 143 3,151 Expenses: General and administrative expenses 423 56 — 479 Provision for credit losses (22) — — (22) Early termination loss on operating leases 16 — — 16 Loss on derivative instruments — — 571 571 Gain on foreign currency revaluation of debt — — (470) (470) Income before income taxes $ 2,200 $ 335 $ 42 $ 2,577 March 31, 2022 Finance receivables, net $ 33,320 $ 4,161 $ — $ 37,481 Investment in operating leases, net 28,691 4,933 — 33,624 Total assets 66,877 9,401 — 76,278 United Canada Valuation Consolidated (U.S. dollars in millions) Year ended March 31, 2021 Revenues: Retail $ 1,474 $ 190 $ — $ 1,664 Dealer 94 13 — 107 Operating leases 6,437 1,328 — 7,765 Total revenues 8,005 1,531 — 9,536 Leased vehicle expenses 4,576 1,004 — 5,580 Interest expense 772 121 — 893 Realized (gains)/losses on derivatives and foreign currency denominated debt 247 39 (286) — Net revenues 2,410 367 286 3,063 Other income, net 51 13 — 64 Total net revenues 2,461 380 286 3,127 Expenses: General and administrative expenses 418 53 — 471 Provision for credit losses (65) (4) — (69) Early termination loss on operating leases (157) 1 — (156) Gain on derivative instruments — — (229) (229) Loss on foreign currency revaluation of debt — — 430 430 Income before income taxes $ 2,265 $ 330 $ 85 $ 2,680 March 31, 2021 Finance receivables, net $ 36,905 $ 4,528 $ — $ 41,433 Investment in operating leases, net 30,036 5,309 — 35,345 Total assets 70,590 10,212 — 80,802

Summary of Business and Signi_3

Summary of Business and Significant Accounting Policies - Narrative (Detail) - USD ($) $ in Millions		12 Months Ended
	Apr. 01, 2020	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020
Business And Significant Accounting Policies [Line Items]
Majority owned percentage in HCFI subsidiary (percent)		52.33%	52.33%
After-tax cumulative-effect reduction to opening retained earnings and noncontrolling interest		$ 19,025	$ 19,452	$ 19,165	$ 17,563
Cumulative Effect, Period of Adoption, Adjustment
Business And Significant Accounting Policies [Line Items]
Increase to allowance for credit loss	$ 101
After-tax cumulative-effect reduction to opening retained earnings and noncontrolling interest	$ 75				$ (75)
Dealer
Business And Significant Accounting Policies [Line Items]
Dealer loans threshold days past due for recognition of finance revenue to be discontinued		90 days
Retail
Business And Significant Accounting Policies [Line Items]
Retail loans and leases threshold days past due for automatic charge off		120 days
Minimum
Business And Significant Accounting Policies [Line Items]
Retail loan term		2 years
Lease term		2 years
Maximum
Business And Significant Accounting Policies [Line Items]
Retail loan term		7 years
Lease term		5 years

Finance Receivables - Summary o

Finance Receivables - Summary of Finance Receivables (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables	$ 37,946	$ 38,094
Allowance for credit losses	(253)	(211)	$ (288)	$ (370)
Deferred dealer participation and other deferred costs	472	390
Unearned subsidy income	(580)	(792)
Finance receivables, net	37,585	37,481	41,433
Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables	35,110	36,028
Allowance for credit losses	(248)	(206)	(280)	(364)
Deferred dealer participation and other deferred costs	472	390
Unearned subsidy income	(580)	(792)
Finance receivables, net	34,754	35,420
Dealer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables	2,836	2,066
Allowance for credit losses	(5)	(5)	$ (8)	$ (6)
Deferred dealer participation and other deferred costs	0	0
Unearned subsidy income	0	0
Finance receivables, net	$ 2,831	$ 2,061

Finance Receivables - Narrative

Finance Receivables - Narrative (Detail) - USD ($)	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables	$ 37,585,000,000	$ 37,481,000,000	$ 41,433,000,000
Retail loans and leases threshold delinquent (percent) (more than)	10%
Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables	$ 34,754,000,000	35,420,000,000
Dealer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables	2,831,000,000	2,061,000,000
Dealer loans modified as troubled debt restructurings	0	0	$ 0
Collateral Pledged | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables	$ 7,200,000,000	$ 9,000,000,000

Finance Receivables - Summary_2

Finance Receivables - Summary of Activity in Allowance for Credit Losses of Finance Receivables (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Finance receivables, net:
Beginning balance	$ 211	$ 288	$ 370
Provision	146	(22)	(69)
Charge-offs	(193)	(145)	(233)
Recoveries	90	90	118
Effect of translation adjustment	(1)	0	1
Ending balance	253	211	288
Cumulative Effect, Period of Adoption, Adjustment
Finance receivables, net:
Beginning balance			101
Adjusted balance
Finance receivables, net:
Beginning balance			471
Retail
Finance receivables, net:
Beginning balance	206	280	364
Provision	146	(19)	(67)
Charge-offs	(193)	(145)	(232)
Recoveries	90	90	116
Effect of translation adjustment	(1)	0	1
Ending balance	248	206	280
Retail | Cumulative Effect, Period of Adoption, Adjustment
Finance receivables, net:
Beginning balance			98
Retail | Adjusted balance
Finance receivables, net:
Beginning balance			462
Dealer
Finance receivables, net:
Beginning balance	5	8	6
Provision	0	(3)	(2)
Charge-offs	0	0	(1)
Recoveries	0	0	2
Effect of translation adjustment	0	0	0
Ending balance	$ 5	$ 5	8
Dealer | Cumulative Effect, Period of Adoption, Adjustment
Finance receivables, net:
Beginning balance			3
Dealer | Adjusted balance
Finance receivables, net:
Beginning balance			$ 9

Finance Receivables - Summary_3

Finance Receivables - Summary of Aging Analysis of Past Due Finance Receivables (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Financing Receivable, Past Due [Line Items]
Total finance receivables	$ 37,838	$ 37,692
Total past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	427	379
30 – 59 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	334	285
60 – 89 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	74	76
90 days or greater past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	19	18
Current or less than 30 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	37,411	37,313
Retail
Financing Receivable, Past Due [Line Items]
Total finance receivables	35,002	35,626
Retail | New auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	27,751	29,552
Retail | Used and certified auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	6,004	4,720
Retail | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	1,247	1,354
Retail | Total past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	427	379
Retail | Total past due | New auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	272	255
Retail | Total past due | Used and certified auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	134	105
Retail | Total past due | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	21	19
Retail | 30 – 59 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	334	285
Retail | 30 – 59 days past due | New auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	217	194
Retail | 30 – 59 days past due | Used and certified auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	103	78
Retail | 30 – 59 days past due | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	14	13
Retail | 60 – 89 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	74	76
Retail | 60 – 89 days past due | New auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	44	50
Retail | 60 – 89 days past due | Used and certified auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	25	22
Retail | 60 – 89 days past due | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	5	4
Retail | 90 days or greater past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	19	18
Retail | 90 days or greater past due | New auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	11	11
Retail | 90 days or greater past due | Used and certified auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	6	5
Retail | 90 days or greater past due | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	2	2
Retail | Current or less than 30 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	34,575	35,247
Retail | Current or less than 30 days past due | New auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	27,479	29,297
Retail | Current or less than 30 days past due | Used and certified auto
Financing Receivable, Past Due [Line Items]
Total finance receivables	5,870	4,615
Retail | Current or less than 30 days past due | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	1,226	1,335
Dealer
Financing Receivable, Past Due [Line Items]
Total finance receivables	2,836	2,066
Dealer | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	1,946	1,266
Dealer | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	890	800
Dealer | Total past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | Total past due | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | Total past due | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | 30 – 59 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | 30 – 59 days past due | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | 30 – 59 days past due | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | 60 – 89 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | 60 – 89 days past due | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | 60 – 89 days past due | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | 90 days or greater past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | 90 days or greater past due | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | 90 days or greater past due | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Dealer | Current or less than 30 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	2,836	2,066
Dealer | Current or less than 30 days past due | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	1,946	1,266
Dealer | Current or less than 30 days past due | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	$ 890	$ 800

Finance Receivables - Summary_4

Finance Receivables - Summary of Loans by Internal Credit Grade (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Current Period
Total	$ 37,946	$ 38,094
Prior Year
Total	37,946	38,094
Retail loans
Current Period
Total	35,110	36,028
Prior Year
Total	35,110	36,028
Performing Financing Receivable | Retail loans
Current Period
2023	13,682	13,660
2022	9,301	12,055
2021	7,735	5,121
2020	2,722	3,086
2019	1,193	1,351
Prior	369	353
Total	35,002	35,626
Prior Year
2022	13,682	13,660
2021	9,301	12,055
2020	7,735	5,121
2019	2,722	3,086
2018	1,193	1,351
Prior	369	353
Total	35,002	35,626
Credit grade A | Performing Financing Receivable | Retail loans
Current Period
2023	8,332	8,849
2022	5,994	8,065
2021	5,188	3,073
2020	1,570	1,912
2019	661	727
Prior	171	169
Total	21,916	22,795
Prior Year
2022	8,332	8,849
2021	5,994	8,065
2020	5,188	3,073
2019	1,570	1,912
2018	661	727
Prior	171	169
Total	21,916	22,795
Credit grade B | Performing Financing Receivable | Retail loans
Current Period
2023	2,828	2,433
2022	1,693	2,010
2021	1,308	898
2020	504	525
2019	229	271
Prior	78	74
Total	6,640	6,211
Prior Year
2022	2,828	2,433
2021	1,693	2,010
2020	1,308	898
2019	504	525
2018	229	271
Prior	78	74
Total	6,640	6,211
Credit grade C | Performing Financing Receivable | Retail loans
Current Period
2023	1,864	1,713
2022	1,174	1,409
2021	887	718
2020	407	405
2019	189	228
Prior	71	64
Total	4,592	4,537
Prior Year
2022	1,864	1,713
2021	1,174	1,409
2020	887	718
2019	407	405
2018	189	228
Prior	71	64
Total	4,592	4,537
Credit grade D | Performing Financing Receivable | Retail loans
Current Period
2023	447	451
2022	294	418
2021	255	341
2020	191	188
2019	92	100
Prior	36	33
Total	1,315	1,531
Prior Year
2022	447	451
2021	294	418
2020	255	341
2019	191	188
2018	92	100
Prior	36	33
Total	1,315	1,531
Others | Performing Financing Receivable | Retail loans
Current Period
2023	211	214
2022	146	153
2021	97	91
2020	50	56
2019	22	25
Prior	13	13
Total	539	552
Prior Year
2022	211	214
2021	146	153
2020	97	91
2019	50	56
2018	22	25
Prior	13	13
Total	$ 539	$ 552

Finance Receivables - Summary_5

Finance Receivables - Summary of Outstanding Dealer Loans by Grouping (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Current Period
Total	$ 37,946	$ 38,094
Prior Year
Total	37,946	38,094
Dealer loans
Current Period
Total	2,836	2,066
Prior Year
Total	2,836	2,066
Dealer loans | Performing Financing Receivable
Current Period
Total	2,836	2,066
Prior Year
Total	2,836	2,066
Dealer loans | Group I | Performing Financing Receivable
Current Period
Total	2,040	1,411
Prior Year
Total	2,040	1,411
Dealer loans | Group II | Performing Financing Receivable
Current Period
Total	796	655
Prior Year
Total	796	655
Dealer loans | Group III | Performing Financing Receivable
Current Period
Total	0	0
Prior Year
Total	0	0
Dealer loans | Commercial loans | Performing Financing Receivable
Current Period
2023	68	17
2022	16	210
2021	172	63
2020	62	35
2019	24	54
Prior	120	104
Revolving loans	428	317
Prior Year
2022	68	17
2021	16	210
2020	172	63
2019	62	35
2018	24	54
Prior	120	104
Revolving loans	428	317
Dealer loans | Commercial loans | Group I | Performing Financing Receivable
Current Period
2023	67	11
2022	10	207
2021	143	56
2020	56	18
2019	24	32
Prior	89	99
Revolving loans	428	317
Prior Year
2022	67	11
2021	10	207
2020	143	56
2019	56	18
2018	24	32
Prior	89	99
Revolving loans	428	317
Dealer loans | Commercial loans | Group II | Performing Financing Receivable
Current Period
2023	1	6
2022	6	3
2021	29	7
2020	6	17
2019	0	22
Prior	31	5
Revolving loans	0	0
Prior Year
2022	1	6
2021	6	3
2020	29	7
2019	6	17
2018	0	22
Prior	31	5
Revolving loans	0	0
Dealer loans | Commercial loans | Group III | Performing Financing Receivable
Current Period
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019	0	0
Prior	0	0
Revolving loans	0	0
Prior Year
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving loans	0	0
Dealer loans | Wholesale flooring | Performing Financing Receivable
Current Period
Total	1,946	1,266
Prior Year
Total	1,946	1,266
Dealer loans | Wholesale flooring | Group I | Performing Financing Receivable
Current Period
Total	1,223	671
Prior Year
Total	1,223	671
Dealer loans | Wholesale flooring | Group II | Performing Financing Receivable
Current Period
Total	723	595
Prior Year
Total	723	595
Dealer loans | Wholesale flooring | Group III | Performing Financing Receivable
Current Period
Total	0	0
Prior Year
Total	$ 0	$ 0

Investment in Operating Lease_2

Investment in Operating Leases - Schedule of Investment in Operating Leases (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Operating lease vehicles	$ 36,412	$ 42,990
Accumulated depreciation	(7,989)	(8,529)
Deferred dealer participation and initial direct costs	88	114
Unearned subsidy income	(656)	(869)
Estimated early termination losses	(77)	(82)
Investment in operating leases, net	$ 27,778	$ 33,624	$ 35,345

Investment in Operating Lease_3

Investment in Operating Leases - Schedule of Lease Revenue (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Lease payments	$ 5,976	$ 6,913	$ 6,808
Subsidy income and dealer rate participation, net	561	798	894
Reimbursed lessor costs	63	67	63
Total operating lease revenue, net	$ 6,600	$ 7,778	$ 7,765

Investment in Operating Lease_4

Investment in Operating Leases - Leased Vehicle Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Lessor, Lease, Description [Line Items]
End of term charges	$ 2	$ 17	$ 54
Leased Vehicles
Lessor, Lease, Description [Line Items]
Depreciation expense	4,872	5,676	5,669
Initial direct costs and other lessor costs	134	151	140
Gain on disposition of leased vehicles	(115)	(197)	(229)
Total leased vehicle expenses, net	$ 4,891	$ 5,630	$ 5,580

Investment in Operating Lease_5

Investment in Operating Leases - Narrative (Detail) - USD ($)	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Lessor, Lease, Description [Line Items]
Net carrying amount of lease assets	$ 27,778,000,000	$ 33,624,000,000	$ 35,345,000,000
Reversal (loss) of early termination losses on operating leases	(38,000,000)	(16,000,000)	156,000,000
Net realized losses on operating losses	43,000,000	23,000,000	72,000,000
Provision for credit losses on operating leases	4,000,000	2,000,000	$ 31,000,000
Impairment losses	0	0
Collateral Pledged
Lessor, Lease, Description [Line Items]
Net carrying amount of lease assets	$ 168,000,000	$ 294,000,000

Investment in Operating Lease_6

Investment in Operating Leases - Future Minimum Rental Payments (Detail) $ in Millions	Mar. 31, 2023 USD ($)
Year ending March 31:
2024	$ 4,484
2025	2,469
2026	971
2027	175
2028	39
Total	$ 8,138

Debt - Schedule of Outstanding

Debt - Schedule of Outstanding Debt Net of Discounts and Fees, Weighted Average Contractual Interest Rates and Range of Contractual Interest Rates (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Debt Instrument [Line Items]
Unsecured debt	$ 33,407	$ 38,051
Secured debt	6,927	8,888
Total debt	40,334	46,939
Commercial paper
Debt Instrument [Line Items]
Unsecured debt	$ 6,375	$ 2,307
Weighted average contractual interest rate (percentage)	5.18%	0.74%
Commercial paper | Minimum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	4.30%	0.33%
Commercial paper | Maximum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	5.93%	1.21%
Bank loans
Debt Instrument [Line Items]
Unsecured debt	$ 1,894	$ 3,108
Weighted average contractual interest rate (percentage)	5.66%	1.52%
Bank loans | Minimum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	5.38%	0.94%
Bank loans | Maximum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	6.14%	2.01%
Public MTN program
Debt Instrument [Line Items]
Unsecured debt	$ 21,962	$ 28,659
Weighted average contractual interest rate (percentage)	1.99%	1.53%
Public MTN program | Minimum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	0.30%	0.30%
Public MTN program | Maximum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	5.43%	3.63%
Euro MTN programme
Debt Instrument [Line Items]
Unsecured debt	$ 0	$ 25
Weighted average contractual interest rate (percentage)	0%	2.23%
Euro MTN programme | Minimum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	0%	2.23%
Euro MTN programme | Maximum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	0%	2.23%
Other debt
Debt Instrument [Line Items]
Unsecured debt	$ 3,176	$ 3,952
Weighted average contractual interest rate (percentage)	3.15%	2.20%
Other debt | Minimum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	1.34%	1.05%
Other debt | Maximum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	5.88%	3.44%
Secured debt
Debt Instrument [Line Items]
Secured debt	$ 6,927	$ 8,888
Weighted average contractual interest rate (percentage)	2.42%	0.93%
Secured debt | Minimum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	0.20%	0.14%
Secured debt | Maximum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	5.50%	3.30%

Debt - Narrative (Detail)

Debt - Narrative (Detail)	12 Months Ended
	Mar. 31, 2023 USD ($) note	Mar. 31, 2022 USD ($)	Aug. 31, 2019 USD ($)
Debt Instrument [Line Items]
Outstanding principal balance of long-term debt with floating interest rates	$ 4,100,000,000	$ 5,900,000,000
Outstanding principal balance of long-term debt with fixed interest rates	29,500,000,000	37,900,000,000
Short-term debt	6,700,000,000	3,100,000,000
AHFC | Syndicated Bank Credit Facilities
Debt Instrument [Line Items]
Maximum funds available (up to)	7,000,000,000
Line of credit facility outstanding amount	0
AHFC | Syndicated Bank Credit Facilities With 364 Day Credit Agreement
Debt Instrument [Line Items]
Maximum funds available (up to)	3,500,000,000
AHFC | Syndicated Bank Credit Facilities With Three Year Credit Agreement
Debt Instrument [Line Items]
Maximum funds available (up to)	2,100,000,000
AHFC | Syndicated Bank Credit Facilities With Five Year Credit Agreement
Debt Instrument [Line Items]
Maximum funds available (up to)	1,400,000,000
AHFC | Other Credit Agreements
Debt Instrument [Line Items]
Maximum funds available (up to)	1,000,000,000
Line of credit facility outstanding amount	0
HCFI | Syndicated Bank Credit Facilities
Debt Instrument [Line Items]
Maximum funds available (up to)	1,500,000,000
Line of credit facility outstanding amount	0
HCFI | Syndicated Bank Credit Facilities With One Year Revolving Term
Debt Instrument [Line Items]
Maximum funds available (up to)	740,000,000
HCFI | Syndicated Bank Credit Facilities With Five Year Revolving Term
Debt Instrument [Line Items]
Maximum funds available (up to)	740,000,000
Commercial paper
Debt Instrument [Line Items]
Maximum funds available (up to)	$ 8,800,000,000	$ 9,000,000,000
Debt instrument, term	1 year	1 year
Average outstanding balance	$ 3,900,000,000	$ 4,900,000,000
Commercial paper | Other Credit Agreements
Debt Instrument [Line Items]
Maximum balance outstanding at any month-end	$ 6,400,000,000	$ 6,700,000,000
Public MTN program
Debt Instrument [Line Items]
Maximum funds available (up to)			$ 30,000,000,000
Euro MTN programme
Debt Instrument [Line Items]
Number of notes outstanding | note	0

Debt - Scheduled and Projected

Debt - Scheduled and Projected Maturities of Debt (Detail) $ in Millions	Mar. 31, 2023 USD ($)
Debt Instrument [Line Items]
2024	$ 18,393
2025	8,563
2026	4,024
2027	3,600
2028	3,399
Thereafter	2,448
Total	40,427
Unamortized discounts/fees	(93)
Total debt, net	40,334
Commercial paper
Debt Instrument [Line Items]
2024	6,403
2025	0
2026	0
2027	0
2028	0
Thereafter	0
Total	6,403
Bank loans
Debt Instrument [Line Items]
2024	274
2025	566
2026	111
2027	759
2028	185
Thereafter	0
Total	1,895
Public MTN program
Debt Instrument [Line Items]
2024	7,193
2025	5,336
2026	2,300
2027	2,367
2028	2,367
Thereafter	2,448
Total	22,011
Other debt
Debt Instrument [Line Items]
2024	592
2025	555
2026	925
2027	296
2028	814
Thereafter	0
Total	3,182
Total unsecured debt
Debt Instrument [Line Items]
2024	14,462
2025	6,457
2026	3,336
2027	3,422
2028	3,366
Thereafter	2,448
Total	33,491
Secured debt
Debt Instrument [Line Items]
2024	3,931
2025	2,106
2026	688
2027	178
2028	33
Thereafter	0
Total	$ 6,936

Derivative Instruments - Notion

Derivative Instruments - Notional Balances and Fair Values of Derivatives (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Assets
Gross derivative assets	$ 1,133	$ 971
Collateral posted/held	0	5
Counterparty netting adjustment	(1,000)	(804)
Net derivative assets	133	172
Liabilities
Gross derivative liabilities	1,736	1,119
Collateral posted/held	37	28
Counterparty netting adjustment	(1,000)	(804)
Net derivative liabilities	773	343
Interest rate swaps
Derivatives, Fair Value [Line Items]
Notional balances	55,974	61,941
Assets
Gross derivative assets	1,133	931
Liabilities
Gross derivative liabilities	1,062	683
Cross currency swaps
Derivatives, Fair Value [Line Items]
Notional balances	4,328	7,920
Assets
Gross derivative assets	0	40
Liabilities
Gross derivative liabilities	$ 674	$ 436

Derivative Instruments - Income

Derivative Instruments - Income Statement Impact of Derivative Instruments (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Total gain/(loss) on derivative instruments	$ (697)	$ (571)	$ 229
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Total gain/(loss) on derivative instruments	113	140	(148)
Cross currency swaps
Derivative Instruments, Gain (Loss) [Line Items]
Total gain/(loss) on derivative instruments	$ (810)	$ (711)	$ 377

Transactions Involving Relate_3

Transactions Involving Related Parties - Summary of Income Statement Impact of Transactions with Parent and Affiliated Companies (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
General and administrative expenses:
Lease expense	$ 10	$ 11	$ 10
Affiliated Entity
Revenue:
Subsidy income	1,036	1,410	1,476
Interest expense:
Related party debt	0	0	2
Other income, net:
VSC administration fees	2	3	106
Support service fees	0	0	(45)
General and administrative expenses:
Support Compensation Agreement fees	63	76	72
Benefit plan expenses	8	8	9
Shared services	74	72	69
Lease expense	$ 4	$ 4	$ 2

Transactions Involving Relate_4

Transactions Involving Related Parties - Summary of Balance Sheet Impact of Transactions with Parent and Affiliated Companies (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Investment in operating leases, net:
Due from Parent and affiliated companies	$ 66	$ 62
Liabilities
Due to Parent and affiliated companies	161	125
Other liabilities:
Dividend Payable	0	133
Operating lease liabilities	69	57
Affiliated Entity
Finance receivables, net:
Unearned subsidy income	(573)	(783)
Investment in operating leases, net:
Unearned subsidy income	(655)	(867)
Due from Parent and affiliated companies	66	62
Liabilities
Due to Parent and affiliated companies	161	125
Other liabilities:
Accrued benefit expenses	63	63
Dividend Payable	0	133
Operating lease liabilities	$ 11	$ 15

Transactions Involving Relate_5

Transactions Involving Related Parties - Narrative (Detail) - USD ($) $ in Millions		6 Months Ended						12 Months Ended
	Mar. 22, 2022	Mar. 31, 2023	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Related Party Transaction [Line Items]
Dividends declared								$ 1,380	$ 1,626	$ 608
Minimum
Related Party Transaction [Line Items]
Vehicle service contract terms								2 years
AHM
Related Party Transaction [Line Items]
Dividends declared		$ 500	$ 766	$ 1,000	$ 491	$ 465	$ 143
AHFC | Minimum
Related Party Transaction [Line Items]
Vehicle service original contract terms								4 years
AHFC | Maximum
Related Party Transaction [Line Items]
Vehicle service contract terms								9 years
Vehicle service original contract terms								8 years
AHFC | HMC
Related Party Transaction [Line Items]
Honda Motor Company required ownership interest (percentage)		80%						80%
HCFI | HMC
Related Party Transaction [Line Items]
Honda Motor Company required ownership interest (percentage)		80%						80%
HCFI | AHFC
Related Party Transaction [Line Items]
Dividends declared	$ 146	$ 56	69
HCFI | HCI
Related Party Transaction [Line Items]
Dividends declared	$ 133	$ 51	$ 63

Income Taxes - Consolidated Inc

Income Taxes - Consolidated Income Tax Expense/(Benefit) (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Current
Federal	$ 839	$ 643	$ 36
State and local	35	220	146
Foreign	6	44	38
Total current	880	907	220
Deferred
Federal	(575)	(205)	378
State and local	39	(84)	(5)
Foreign	59	57	54
Total deferred	(477)	(232)	427
Total
Federal	264	438	414
State and local	74	136	141
Foreign	65	101	92
Income tax expense	$ 403	$ 675	$ 647

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of the Expected Income Tax Expense to the Reported Income Tax Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Reconciliation of the expected income tax expense to the reported income tax expense
Computed “expected” income taxes	$ 324	$ 541	$ 563
Foreign tax rate differential	13	21	19
State and local income taxes, net of federal income tax benefit	64	111	112
Change in estimated state tax rate, net of federal income tax benefit	(10)	(15)	(6)
Change in unrecognized tax benefit	4	5	(47)
Other	8	12	6
Income tax expense	$ 403	$ 675	$ 647

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Deferred tax assets:
State income tax	$ 134	$ 151
Receivable allowance	77	85
Accrued postretirement benefits	14	13
State loss carryforwards	23	33	$ 36
Other assets	73	67
Total gross deferred tax assets	321	349
Less valuation allowance	0	0
Net deferred tax assets	321	349
Deferred tax liabilities:
Leases	5,418	6,563
Mark-to-market	540	0
Other	131	67
Total gross deferred tax liabilities	6,608	7,152
Net deferred tax liabilities	6,287	6,803
HCFI
Deferred tax liabilities:
Leases	$ 519	$ 522

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Increase (decrease) in translation adjustments of deferred tax liabilities	$ (39)	$ 2	$ 41
Accumulated undistributed earnings of HCFI	1,000
Unrecognized deferred tax liability from undistributed foreign earnings	114
State loss carryforwards	23	33	36
Deferred tax assets recognized	321	349
Unrecognized tax benefits, net of federal benefit of state taxes, would affect the effective tax	72	80	94
Uncertain tax positions	92	94
Interest expense (income) as a component of income tax expense	5	4	(20)
Accrued interest payable attributable to income taxes	$ 25	$ 20	$ 16

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance, beginning of year	$ 81	$ 95	$ 169
Additions for current year tax positions	0	0	0
Additions for prior year tax positions	0	0	0
Reductions for prior year tax positions	(8)	(14)	(21)
Settlements	0	0	(4)
Reductions related to a lapse in the statute of limitations	0	0	(49)
Foreign currency translation	0	0	0
Balance, end of year	$ 73	$ 81	$ 95

Benefit Plans - Narrative (Deta

Benefit Plans - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Retirement Benefits [Abstract]
Pension Plans' expense	$ 5	$ 5	$ 21
Company's contribution to the Savings Plans	9	8	8
Expense (benefit) included in general and administrative expenses for postretirement plans	$ 3	$ 3	$ (12)

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Detail) $ in Millions	1 Months Ended		12 Months Ended
	Jan. 31, 2023 service_center	Nov. 30, 2020 service_center regional_office	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)
Commitments And Contingencies Disclosure [Line Items]
Number of regional offices to be consolidated | regional_office		9
Number of service centers, after consolidation | service_center		3
Number of service centers, consolidation completed | service_center	3
Operating lease, expense			$ 10	$ 11	$ 10
Weighted average remaining lease term			8 years 3 months 18 days
Weighted average discount rate (percent)			3%
Revolving lines of credit
Commitments And Contingencies Disclosure [Line Items]
Unused balance of commercial revolving lines of credit			$ 657
Construction of auto dealerships
Commitments And Contingencies Disclosure [Line Items]
Remaining unfunded balance for construction loans			$ 3

Commitments and Contingencies_2

Commitments and Contingencies - Operating Lease Liabilities Maturity Schedule (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Operating leases future minimum payments due
2024	$ 9
2025	9
2026	10
2027	10
2028	10
Thereafter	31
Total undiscounted future lease obligations	79
Less: imputed interest	(10)
Operating lease liabilities	$ 69	$ 57

Securitizations and Variable _3

Securitizations and Variable Interest Entities (VIE) - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Asset-backed securitization notes issued during period	$ 2,900	$ 6,000
Initial receivable principal balance underlying asset-backed securitization notes issued during period	3,100	6,500
Cash to be remitted to trusts	$ 400	$ 529

Securitizations and Variable _4

Securitizations and Variable Interest Entities (VIE) - Schedule of Carrying Amounts of Assets and Liabilities of Consolidated Securitization Trusts (Detail) - USD ($) $ in Millions		Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Assets
Restricted cash	[1]	$ 420	$ 365	$ 380
Other		9	13
Liabilities
Secured debt		6,927	8,888
Other		1,137	1,310
Variable Interest Entity, Primary Beneficiary
Assets
Securitized assets		7,384	9,327
Restricted cash		420	365
Other		13	15
Liabilities
Secured debt		6,927	8,888
Other		7	5
Variable Interest Entity, Primary Beneficiary | Retail loan securitizations
Assets
Securitized assets		7,216	9,033
Restricted cash		419	364
Other		12	14
Liabilities
Secured debt		6,844	8,683
Other		6	3
Variable Interest Entity, Primary Beneficiary | Operating lease securitizations
Assets
Securitized assets		168	294
Restricted cash		1	1
Other		1	1
Liabilities
Secured debt		83	205
Other		$ 1	$ 2
[1]Restricted cash balances relate primarily to securitization arrangements (Note 10).

Other Assets - Schedule of Othe

Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Millions		Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Other Assets [Abstract]
Interest receivable and other assets		$ 108	$ 82
Vehicles held for disposition		50	51
Other receivables		83	93
Software, net of accumulated amortization of $177 and $173      as of March 31, 2023, and 2022, respectively		21	22
Property and equipment, net of accumulated depreciation of $5      and $16 as of March 31, 2023, and 2022, respectively		5	5
Restricted cash	[1]	$ 420	$ 365	$ 380
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]		Total	Total
Operating lease assets		$ 61	$ 51
Like-kind exchange assets		0	851
Other miscellaneous assets		9	13
Total		757	1,533
Software, accumulated amortization		177	173
Property and equipment, accumulated depreciation		$ 5	$ 16
[1]Restricted cash balances relate primarily to securitization arrangements (Note 10).

Other Assets - Narrative (Detai

Other Assets - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
General and administrative expenses
Other Assets [Line Items]
Depreciation on leased vehicles	$ 8	$ 9	$ 11
Minimum
Other Assets [Line Items]
Assets estimated useful life	3 years
Maximum
Other Assets [Line Items]
Assets estimated useful life	5 years

Other Liabilities - Components

Other Liabilities - Components of Other Liabilities (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Other Liabilities Disclosure [Abstract]
Dealer payables	$ 188	$ 99
Accrued interest expense	121	136
Accounts payable and accrued expenses	304	368
Lease security deposits	57	72
Unearned income, operating leases	$ 269	$ 317
Operating lease liability, financial statement location	Total	Total
Operating lease liabilities	$ 69	$ 57
Uncertain tax positions	92	94
Dividend payable	0	133
Other liabilities	37	34
Total	$ 1,137	$ 1,310

Other Income, net - Components

Other Income, net - Components of Other Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Condensed Income Statements, Captions [Line Items]
Other, net	$ 90	$ 47	$ (42)
Total	92	50	64
Affiliated Entity
Condensed Income Statements, Captions [Line Items]
VSC administration (Note 6)	$ 2	$ 3	$ 106

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Fair Value Hierarchy of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Derivative instruments:
Total assets	$ 1,133	$ 971
Total liabilities	1,736	1,119
Level 1
Derivative instruments:
Total assets	0	0
Total liabilities	0	0
Level 2
Derivative instruments:
Total assets	1,133	971
Total liabilities	1,736	1,119
Level 3
Derivative instruments:
Total assets	0	0
Total liabilities	0	0
Interest rate swaps
Derivative instruments:
Total assets	1,133	931
Total liabilities	1,062	683
Interest rate swaps | Level 1
Derivative instruments:
Total assets	0	0
Total liabilities	0	0
Interest rate swaps | Level 2
Derivative instruments:
Total assets	1,133	931
Total liabilities	1,062	683
Interest rate swaps | Level 3
Derivative instruments:
Total assets	0	0
Total liabilities	0	0
Cross currency swaps
Derivative instruments:
Total assets	0	40
Total liabilities	674	436
Cross currency swaps | Level 1
Derivative instruments:
Total assets	0	0
Total liabilities	0	0
Cross currency swaps | Level 2
Derivative instruments:
Total assets	0	40
Total liabilities	674	436
Cross currency swaps | Level 3
Derivative instruments:
Total assets	0	0
Total liabilities	$ 0	$ 0

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of Nonrecurring Fair Value Measurements (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Vehicles held for disposition	$ 35	$ 26
Lower-of-cost or fair value adjustment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Vehicles held for disposition	7	5
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Vehicles held for disposition	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Vehicles held for disposition	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Vehicles held for disposition	$ 35	$ 26

Fair Value Measurements - Sum_3

Fair Value Measurements - Summary of Carrying Values and Fair Values of Financial Instruments Except for those Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Assets
Dealer loans, net, carrying value	$ 2,831	$ 2,061
Retail loans, net, carrying value	34,754	35,420
Liabilities
Commercial paper, carrying value	6,375	2,307
Bank loans, carrying value	1,894	3,108
Medium term note programs, carrying value	21,962	28,684
Other debt, carrying value	3,176	3,952
Secured debt, carrying value	6,927	8,888
Fair value
Assets
Dealer loans, net	2,507	1,859
Retail loans, net	33,674	35,161
Liabilities
Commercial paper	6,374	2,306
Bank loans	1,886	3,110
Medium term note programs	20,745	28,055
Other debt	3,045	3,828
Secured debt	6,786	8,762
Fair value | Level 1
Assets
Dealer loans, net	0	0
Retail loans, net	0	0
Liabilities
Commercial paper	0	0
Bank loans	0	0
Medium term note programs	0	0
Other debt	0	0
Secured debt	0	0
Fair value | Level 2
Assets
Dealer loans, net	0	0
Retail loans, net	0	0
Liabilities
Commercial paper	6,374	2,306
Bank loans	1,886	3,110
Medium term note programs	20,745	28,055
Other debt	3,045	3,828
Secured debt	6,786	8,762
Fair value | Level 3
Assets
Dealer loans, net	2,507	1,859
Retail loans, net	33,674	35,161
Liabilities
Commercial paper	0	0
Bank loans	0	0
Medium term note programs	0	0
Other debt	0	0
Secured debt	$ 0	$ 0

Segment Information - Financial

Segment Information - Financial Information for Reportable Segments (Detail) $ in Millions	12 Months Ended
	Mar. 31, 2023 USD ($) reportable_segment	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | reportable_segment	2
Revenues:
Retail	$ 1,468	$ 1,599	$ 1,664
Dealer	116	67	107
Operating leases	6,600	7,778	7,765
Total revenues	8,184	9,444	9,536
Leased vehicle expenses	4,891	5,630	5,580
Interest expense	887	713	893
Realized (gains)/losses on derivatives and foreign currency denominated debt	0	0	0
Net revenues	2,406	3,101	3,063
Other income, net	92	50	64
Total net revenues	2,498	3,151	3,127
Expenses:
General and administrative expenses	485	479	471
Provision for credit losses	146	(22)	(69)
Early termination loss on operating leases	38	16	(156)
Gain (loss) on derivative instruments	(697)	(571)	229
Gain (loss) on foreign currency revaluation of debt	410	470	(430)
Income before income taxes	1,542	2,577	2,680
Assets
Finance receivables, net	37,585	37,481	41,433
Investment in operating leases, net	27,778	33,624	35,345
Total assets	68,891	76,278	80,802
Operating Segments | United States
Revenues:
Retail	1,299	1,414	1,474
Dealer	104	58	94
Operating leases	5,535	6,489	6,437
Total revenues	6,938	7,961	8,005
Leased vehicle expenses	4,059	4,655	4,576
Interest expense	723	604	772
Realized (gains)/losses on derivatives and foreign currency denominated debt	(92)	121	247
Net revenues	2,248	2,581	2,410
Other income, net	77	36	51
Total net revenues	2,325	2,617	2,461
Expenses:
General and administrative expenses	430	423	418
Provision for credit losses	138	(22)	(65)
Early termination loss on operating leases	38	16	(157)
Gain (loss) on derivative instruments	0	0	0
Gain (loss) on foreign currency revaluation of debt	0	0	0
Income before income taxes	1,719	2,200	2,265
Assets
Finance receivables, net	33,518	33,320	36,905
Investment in operating leases, net	23,853	28,691	30,036
Total assets	60,556	66,877	70,590
Operating Segments | Canada
Revenues:
Retail	169	185	190
Dealer	12	9	13
Operating leases	1,065	1,289	1,328
Total revenues	1,246	1,483	1,531
Leased vehicle expenses	832	975	1,004
Interest expense	164	109	121
Realized (gains)/losses on derivatives and foreign currency denominated debt	(42)	22	39
Net revenues	292	377	367
Other income, net	15	14	13
Total net revenues	307	391	380
Expenses:
General and administrative expenses	55	56	53
Provision for credit losses	8	0	(4)
Early termination loss on operating leases	0	0	1
Gain (loss) on derivative instruments	0	0	0
Gain (loss) on foreign currency revaluation of debt	0	0	0
Income before income taxes	244	335	330
Assets
Finance receivables, net	4,067	4,161	4,528
Investment in operating leases, net	3,925	4,933	5,309
Total assets	8,335	9,401	10,212
Valuation adjustments and reclassifications
Revenues:
Retail	0	0	0
Dealer	0	0	0
Operating leases	0	0	0
Total revenues	0	0	0
Leased vehicle expenses	0	0	0
Interest expense	0	0	0
Realized (gains)/losses on derivatives and foreign currency denominated debt	134	(143)	(286)
Net revenues	(134)	143	286
Other income, net	0	0	0
Total net revenues	(134)	143	286
Expenses:
General and administrative expenses	0	0	0
Provision for credit losses	0	0	0
Early termination loss on operating leases	0	0	0
Gain (loss) on derivative instruments	(697)	(571)	229
Gain (loss) on foreign currency revaluation of debt	410	470	(430)
Income before income taxes	(421)	42	85
Assets
Finance receivables, net	0	0	0
Investment in operating leases, net	0	0	0
Total assets	$ 0	$ 0	$ 0