American Honda Finance 10-Q 8 Aug 24 2025 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2024	Jul. 31, 2024
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		13,660,000
Amendment Flag	false
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000864270
Current Fiscal Year End Date	--03-31
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 A Due 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 A Due November 25, 2026
Trading Symbol	HMC/26A
Security Exchange Name	NYSE
3.500% Medium-Term Notes, Series A Due April 24, 2026
Entity Information [Line Items]
Title of 12(b) Security	3.500% Medium-Term Notes, Series A Due April 24, 2026
Trading Symbol	HMC/26F
Security Exchange Name	NYSE
Floating Rate Medium-Term Notes, Series A Due April 29, 2026
Entity Information [Line Items]
Title of 12(b) Security	Floating Rate Medium-Term Notes, Series A Due April 29, 2026
Trading Symbol	HMC/26G
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 A Due 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 A Due October 19, 2027
Trading Symbol	HMC/27A
Security Exchange Name	NYSE
3.750% Medium-Term Notes, Series A Due October 25, 2027
Entity Information [Line Items]
Title of 12(b) Security	3.750% Medium-Term Notes, Series A Due October 25, 2027
Trading Symbol	HMC/27B
Security Exchange Name	NYSE
5.600% Medium-Term Notes, Series A Due September 6, 2030
Entity Information [Line Items]
Title of 12(b) Security	5.600% Medium-Term Notes, Series A Due September 6, 2030
Trading Symbol	HMC/30A
Security Exchange Name	NYSE
3.650% Medium-Term Notes, Series A Due April 23, 2031
Entity Information [Line Items]
Title of 12(b) Security	3.650% Medium-Term Notes, Series A Due April 23, 2031
Trading Symbol	HMC/31B
Security Exchange Name	NYSE

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2024	Mar. 31, 2024
Assets
Cash and cash equivalents	$ 1,559	$ 1,670
Finance receivables, net of allowance for credit losses of $391 and $353	49,178	47,248
Investment in operating leases, net	27,667	27,378
Income taxes receivable	11	79
Other assets	1,313	1,214
Derivative instruments	597	743
Total assets	80,486	78,469
Liabilities and Equity
Debt	52,805	50,917
Income taxes payable	188	148
Deferred income taxes	5,696	5,701
Derivative instruments	1,334	1,472
Total liabilities	61,620	59,846
Commitments and contingencies (Note 8)
Shareholder’s equity:
Common stock, $100 par value. Authorized 15,000,000 shares; issued and outstanding 13,660,000 shares as of June 30, 2024 and March 31, 2024	1,366	1,366
Retained earnings	16,504	16,254
Accumulated other comprehensive loss	(150)	(137)
Total shareholder’s equity	17,720	17,483
Noncontrolling interest in subsidiary	1,146	1,140
Total equity	18,866	18,623
Total liabilities and equity	80,486	78,469
Variable Interest Entity, Primary Beneficiary
Assets
Finance receivables, net of allowance for credit losses of $391 and $353	10,482	9,796
Other assets	784	740
Total assets	11,266	10,536
Liabilities and Equity
Debt	9,967	9,351
Due to Parent and affiliated companies and Other liabilities	18	17
Total liabilities	9,985	9,368
Nonrelated Party and Affiliated Entity
Liabilities and Equity
Due to Parent and affiliated companies and Other liabilities	1,462	1,455
Affiliated Entity
Assets
Due from Parent and affiliated companies	161	137
Liabilities and Equity
Due to Parent and affiliated companies and Other liabilities	$ 135	$ 153

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2024	Mar. 31, 2024
Statement of Financial Position [Abstract]
Finance receivables, allowance for credit losses	$ 391	$ 353
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 (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Revenues:
Retail	$ 630	$ 436
Dealer	72	50
Operating leases	1,541	1,537
Total revenues	2,243	2,023
Leased vehicle expenses	1,057	1,110
Interest expense	554	323
Net revenues	632	590
Other income, net	40	29
Total net revenues	672	619
Expenses:
General and administrative expenses	132	127
Provision for credit losses	71	79
Early termination loss on operating leases	18	12
(Gain)/Loss on derivative instruments	88	(71)
(Gain)/Loss on foreign currency revaluation of debt	(24)	50
Total expenses	285	197
Income before income taxes	387	422
Income tax expense	120	132
Net income	267	290
Less: Net income attributable to noncontrolling interest	17	25
Net income attributable to American Honda Finance Corporation	$ 250	$ 265

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 267	$ 290
Other comprehensive income:
Foreign currency translation adjustment	(24)	48
Comprehensive income	243	338
Less: Comprehensive income attributable to noncontrolling interest	6	48
Comprehensive income attributable to American Honda Finance Corporation	$ 237	$ 290

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions	Total	Retained earnings	Accumulated other comprehensive income/(loss)	Common stock	Noncontrolling interest
Beginning Balance at Mar. 31, 2023	$ 19,025	$ 16,688	$ (135)	$ 1,366	$ 1,106
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	290	265			25
Other comprehensive income (loss)	48		25		23
Ending Balance at Jun. 30, 2023	19,363	16,953	(110)	1,366	1,154
Beginning Balance at Mar. 31, 2024	18,623	16,254	(137)	1,366	1,140
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	267	250			17
Other comprehensive income (loss)	(24)		(13)		(11)
Ending Balance at Jun. 30, 2024	$ 18,866	$ 16,504	$ (150)	$ 1,366	$ 1,146

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions		3 Months Ended
		Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income		$ 267	$ 290
Adjustments to reconcile net income to net cash provided by operating activities:
Debt and derivative instrument valuation adjustments		48	36
Provision for credit losses		71	79
Early termination loss on operating leases		18	12
Depreciation on leased vehicles		1,058	1,116
Accretion of unearned subsidy income		(251)	(237)
Amortization of deferred dealer participation and other deferred costs		100	86
Gain on disposition of leased vehicles		(30)	(31)
Deferred income taxes		0	(118)
Changes in operating assets and liabilities:
Income taxes receivable/payable		115	251
Other assets		(13)	(12)
Accrued interest/discounts on debt		37	38
Other liabilities		(79)	60
Due to/from Parent and affiliated companies		(43)	(79)
Net cash provided by operating activities		1,298	1,491
Cash flows from investing activities:
Finance receivables acquired		(7,322)	(7,054)
Principal collected on finance receivables		5,217	4,443
Net change in wholesale loans		(84)	43
Purchase of operating lease vehicles		(4,478)	(3,638)
Disposal of operating lease vehicles		2,914	2,746
Cash received for unearned subsidy income		421	203
Other investing activities, net		(1)	0
Net cash used in investing activities		(3,333)	(3,257)
Cash flows from financing activities:
Proceeds from issuance of commercial paper		8,133	12,487
Paydown of commercial paper		(7,302)	(11,893)
Proceeds from issuance of short-term debt		1,099	0
Paydown of short-term debt		(600)	0
Proceeds from issuance of medium-term notes and other debt		884	2,243
Paydown of medium-term notes and other debt		(865)	(1,650)
Proceeds from issuance of secured debt		1,995	1,496
Paydown of secured debt		(1,377)	(1,153)
Net cash provided by financing activities		1,967	1,530
Effect of exchange rate changes on cash and cash equivalents		(1)	3
Net decrease in cash and cash equivalents		(69)	(233)
Cash and cash equivalents and restricted cash at beginning of period		2,385	1,964
Cash and cash equivalents and restricted cash at end of period		2,316	1,731
Supplemental disclosures of cash flow information:
Interest paid		455	216
Income taxes paid /(refunded)		3	(3)
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents		1,559	1,226
Restricted cash included in other assets	[1]	757	505
Total		$ 2,316	$ 1,731
[1] Restricted cash balances relate to securitization arrangements (Note 9).

Summary of Business and Signifi

Summary of Business and Significant Accounting Policies	3 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Business and Significant Accounting Policies	Summary of Business and Significant Accounting Policies Organizational Structure 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”, “we”, “us”, and “our” in this report include AHFC and its consolidated subsidiaries, and references to “AHFC” refer solely to American Honda Finance Corporation (excluding AHFC’s subsidiaries). Basis of Presentation The unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. Results for interim periods should not be considered indicative of results for the full year or for any other interim period. These unaudited interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements, significant accounting policies, and the other notes to the consolidated financial statements for the fiscal year ended March 31, 2024 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (SEC) on June 20, 2024. All significant intercompany balances and transactions have been eliminated upon consolidation. Recently Issued Accounting Standards In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendments improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments are effective for the Company for fiscal years beginning April 1, 2024 and for interim periods beginning April 1, 2025. The Company is currently assessing the impact of this standard on the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

Finance Receivables

Finance Receivables	3 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Finance Receivables	Finance Receivables Finance receivables consisted of the following: June 30, 2024 Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 45,305 $ 4,231 $ 49,536 Allowance for credit losses (383) (8) (391) Deferred dealer participation and other deferred costs 611 — 611 Unearned subsidy income (578) — (578) Finance receivables, net $ 44,955 $ 4,223 $ 49,178 March 31, 2024 Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 43,492 $ 4,060 $ 47,552 Allowance for credit losses (345) (8) (353) Deferred dealer participation and other deferred costs 600 — 600 Unearned subsidy income (551) — (551) Finance receivables, net $ 43,196 $ 4,052 $ 47,248 Finance receivables include retail loans with a net carrying amount of $10.5 billion and $9.8 billion as of June 30, 2024 and March 31, 2024, respectively, which have been transferred to bankruptcy-remote Special Purpose Entities (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 9 for additional information. Allowance for Credit Losses The following is a summary of the activity in the allowance for credit losses of finance receivables: Three months ended June 30, 2024 Retail Dealer Total (U.S. dollars in millions) Beginning balance as of April 1, 2024 $ 345 $ 8 $ 353 Provision 71 — 71 Charge-offs (79) — (79) Recoveries 46 — 46 Effect of translation adjustment — — — Ending balance as of June 30, 2024 $ 383 $ 8 $ 391 Three months ended June 30, 2023 Retail Dealer Total (U.S. dollars in millions) Beginning balance as of April 1, 2023 $ 248 $ 5 $ 253 Provision 79 — 79 Charge-offs (47) — (47) Recoveries 23 — 23 Effect of translation adjustment — — — Ending balance as of June 30, 2023 $ 303 $ 5 $ 308 The allowance increased during the three months ended June 30, 2024 primarily due to the expected credit losses recognized on the high volume of retail loan acquisitions during the period. The increase was also attributable to the increasing trend of delinquencies and net charge offs. 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) June 30, 2024 Retail loans: New automobile $ 282 $ 69 $ 15 $ 366 $ 35,205 $ 35,571 Used and certified automobile 148 44 11 203 8,089 8,292 Motorcycle and other 15 7 4 26 1,449 1,475 Total retail loans 445 120 30 595 44,743 45,338 Dealer loans: Wholesale flooring 1 — — 1 2,867 2,868 Commercial loans — — — — 1,363 1,363 Total dealer loans 1 — — 1 4,230 4,231 Total finance receivables $ 446 $ 120 $ 30 $ 596 $ 48,973 $ 49,569 March 31, 2024 Retail loans: New automobile $ 253 $ 59 $ 15 $ 327 $ 33,858 $ 34,185 Used and certified automobile 134 33 9 176 7,815 7,991 Motorcycle and other 15 6 3 24 1,341 1,365 Total retail loans 402 98 27 527 43,014 43,541 Dealer loans: Wholesale flooring 1 — — 1 2,785 2,786 Commercial loans — — — — 1,274 1,274 Total dealer loans 1 — — 1 4,059 4,060 Total finance receivables $ 403 $ 98 $ 27 $ 528 $ 47,073 $ 47,601 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 review of their financial condition and payment performance. 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 fiscal year 2025 2024 2023 2022 2021 Prior Total (U.S. dollars in millions) June 30, 2024 Credit grade A $ 4,205 $ 12,813 $ 5,214 $ 3,193 $ 2,413 $ 497 $ 28,335 Credit grade B 1,120 3,811 1,881 984 667 225 8,688 Credit grade C 809 2,650 1,214 668 452 197 5,990 Credit grade D 244 718 274 161 128 103 1,628 Others 103 308 128 84 48 26 697 Total retail loans $ 6,481 $ 20,300 $ 8,711 $ 5,090 $ 3,708 $ 1,048 $ 45,338 Gross charge-offs for the three months ended June 30, 2024 $ — $ 38 $ 22 $ 10 $ 5 $ 4 $ 79 Retail loans by vintage fiscal year 2024 2023 2022 2021 2020 Prior Total (U.S. dollars in millions) March 31, 2024 Credit grade A $ 14,094 $ 5,788 $ 3,713 $ 2,907 $ 597 $ 121 $ 27,220 Credit grade B 4,110 2,065 1,113 778 237 66 8,369 Credit grade C 2,853 1,338 758 526 200 61 5,736 Credit grade D 779 306 182 149 97 36 1,549 Others 338 142 96 57 22 12 667 Total retail loans $ 22,174 $ 9,639 $ 5,862 $ 4,417 $ 1,153 $ 296 $ 43,541 Gross charge-offs for the fiscal year ended March 31, 2024 $ 58 $ 109 $ 61 $ 34 $ 19 $ 12 $ 293 Dealer Loan 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 2025 2024 2023 2022 2021 Prior Revolving loans Wholesale Flooring Total (U.S. dollars in millions) June 30, 2024 Group I $ — $ 141 $ 53 $ 14 $ 118 $ 127 $ 842 $ 1,887 $ 3,182 Group II — 44 4 — — 20 — 978 1,046 Group III — — — — — — — 3 3 Total dealer loans $ — $ 185 $ 57 $ 14 $ 118 $ 147 $ 842 $ 2,868 $ 4,231 Gross charge-offs for the three months ended June 30, 2024 $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial loans by vintage fiscal year 2024 2023 2022 2021 2020 Prior Revolving loans Wholesale Flooring Total (U.S. dollars in millions) March 31, 2024 Group I $ 146 $ 55 $ 9 $ 114 $ 45 $ 84 $ 748 $ 1,874 $ 3,075 Group II 44 3 5 1 — 20 — 911 984 Group III — — — — — — — 1 1 Total dealer loans $ 190 $ 58 $ 14 $ 115 $ 45 $ 104 $ 748 $ 2,786 $ 4,060 Gross charge-offs for the fiscal year ended March 31, 2024 $ — $ — $ — $ — $ — $ — $ — $ — $ — Loan Modifications The contractual terms of loans may be modified when borrowers are experiencing financial difficulties in an effort to mitigate losses. There were no dealer loans that were modified for dealers experiencing financial difficulties during the three months ended June 30, 2024. Payment deferrals are granted on retail loans, however the delays in payments are considered insignificant since the number of deferred payments are limited and interest continues to accrue during the deferral period. Starting in April 2023, the Company began granting term extensions on retail loans in the United States. Term extensions extend the maturity date of the loan which reduces the monthly payments over the remaining extended term of the loan. Term extensions do not change the contractual interest rates or reduce the outstanding principal balances. During the three months ended June 30, 2024, term extensions were not material to the Company’s consolidated financial statements. Retail loans may also be modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, which may include interest rate adjustments, term extensions, and principal forgiveness. Retail loans modified under bankruptcy protection were not material to the Company’s consolidated financial statements during the three months ended June 30, 2024.

Investment in Operating Leases

Investment in Operating Leases	3 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Investment in Operating Leases	Investment in Operating Leases Investment in operating leases consisted of the following: June 30, 2024 March 31, 2024 (U.S. dollars in millions) Operating lease vehicles $ 34,723 $ 34,840 Accumulated depreciation (6,065) (6,616) Deferred dealer participation and initial direct costs 109 103 Unearned subsidy income (997) (854) Estimated early termination losses (103) (95) Investment in operating leases, net $ 27,667 $ 27,378 Operating lease revenue consisted of the following: Three months ended June 30, 2024 2023 (U.S. dollars in millions) Lease payments $ 1,390 $ 1,400 Subsidy income and dealer rate participation, net 139 128 Reimbursed lessor costs 12 9 Total operating lease revenue, net $ 1,541 $ 1,537 Leased vehicle expenses consisted of the following: Three months ended June 30, 2024 2023 (U.S. dollars in millions) Depreciation expense $ 1,058 $ 1,116 Initial direct costs and other lessor costs 29 25 Gain on disposition of leased vehicles (1) (30) (31) Total leased vehicle expenses, net $ 1,057 $ 1,110 ________________________ (1) Included in the gain on disposition of leased vehicles are end of term charges of $4 million and $1 million for the three months ended June 30, 2024, and 2023, respectively. Contractual operating lease payments due as of June 30, 2024 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. Twelve-month periods ending June 30, (U.S. dollars in millions) 2025 $ 4,704 2026 3,471 2027 1,605 2028 324 2029 46 Total $ 10,150 The Company recognized early termination losses on operating leases of $18 million and of $12 million during the three months ended June 30, 2024 and 2023, respectively. Net realized losses totaled $10 million and $3 million during the three months ended June 30, 2024 and 2023, respectively. The general allowance for uncollectible operating lease receivables was recorded through a reduction to revenue of $6 million and $3 million for the three months ended June 30, 2024 and 2023, respectively. No impairment losses due to declines in estimated residual values were recognized during both the three months ended June 30, 2024 and 2023.

Debt

Debt	3 Months Ended
	Jun. 30, 2024
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 June 30, 2024 March 31, 2024 June 30, 2024 March 31, 2024 June 30, 2024 March 31, 2024 (U.S. dollars in millions) Unsecured debt: Commercial paper $ 6,105 $ 5,293 5.59 % 5.64 % 4.64 - 5.63% 5.02 - 5.70% Bank loans 1,795 1,804 5.92 % 6.05 % 5.35 - 6.60% 5.68 - 6.57% Public MTN program 31,509 31,151 3.68 % 3.58 % 0.30 - 6.14% 0.30 - 6.06% Other debt 3,429 3,318 3.90 % 3.59 % 1.34 - 6.16% 1.34 - 6.40% Total unsecured debt 42,838 41,566 Secured debt 9,967 9,351 4.75 % 4.56 % 0.33 - 5.87% 0.27 - 5.94% Total debt $ 52,805 $ 50,917 _______________________ (1) Weighted average contractual interest rates for commercial paper are bond equivalent yields. Contractual interest rates approximate effective yields. As of June 30, 2024, the outstanding principal balance of long-term debt with floating interest rates totaled $8.1 billion, long-term debt with fixed interest rates totaled $36.9 billion, and short-term debt with floating or fixed interest rates totaled $7.8 billion. As of March 31, 2024, the outstanding principal balance of long-term debt with floating interest rates totaled $7.7 billion, long-term debt with fixed interest rates totaled $36.9 billion, and short-term debt with floating or fixed interest rates totaled $6.3 billion. Commercial Paper As of both June 30, 2024 and March 31, 2024, the Company had commercial paper programs that provide the Company with available funds of up to $8.8 billion, 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 $5.4 billion and $6.8 billion during the three months ended June 30, 2024 and 2023, respectively. The maximum balance outstanding at any month-end during the three months ended June 30, 2024 and 2023 was $6.1 billion and $7.0 billion, respectively. Bank Loans Outstanding bank loans at June 30, 2024 were 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 June 30, 2024 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. 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 June 30, 2024 were short-term and 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. Other Debt The outstanding balances as of June 30, 2024 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 June 30, 2024 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. Refer to Note 9 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 21, 2025, 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 June 30, 2024, 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 $731 million credit agreement, which expires on March 25, 2025 and a $731 million credit agreement, which expires on March 25, 2027. As of June 30, 2024, no amounts were drawn upon under the HCFI credit agreements. HCFI intends to renew or replace the credit agreements prior to or on the expiration dates. 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. Other Credit Agreements

Derivative Instruments

Derivative Instruments	3 Months Ended
	Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments 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 12 regarding the valuation of derivative instruments. June 30, 2024 March 31, 2024 Notional Assets Liabilities Notional Assets Liabilities (U.S. dollars in millions) Interest rate swaps $ 63,471 $ 565 $ 744 $ 64,146 $ 714 $ 881 Cross currency swaps 5,755 32 590 5,755 29 591 Gross derivative assets/liabilities 597 1,334 743 1,472 Collateral posted/held 5 6 1 9 Counterparty netting adjustment (564) (564) (701) (701) Net derivative assets/liabilities $ 38 $ 776 $ 43 $ 780 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. Three months ended June 30, 2024 2023 (U.S. dollars in millions) Interest rate swaps $ 1 $ 126 Cross currency swaps (89) (55) Total gain/(loss) on derivative instruments $ (88) $ 71 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 periodic interest settlements of derivative instruments are presented within cash flows from operating activities in the consolidated statements of cash flows. The final notional exchange of cross currency swaps are presented within cash flows from financing activities along with the paydowns of the related foreign currency denominated debt. 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.

Transactions Involving Related

Transactions Involving Related Parties	3 Months Ended
	Jun. 30, 2024
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: Three months ended June 30, Income Statement 2024 2023 (U.S. dollars in millions) Revenue: Subsidy income $ 249 $ 236 General and administrative expenses: Support Compensation Agreement fees 20 15 Benefit plan expenses 1 2 Shared services 19 18 Lease expense 1 1 Balance Sheet June 30, 2024 March 31, 2024 (U.S. dollars in millions) Assets : Finance receivables, net: Unearned subsidy income $ (567) $ (542) Investment in operating leases, net: Unearned subsidy income (995) (853) Due from Parent and affiliated companies 161 137 Liabilities: Due to Parent and affiliated companies 135 153 Other liabilities: Accrued benefit expenses 65 64 Operating lease liabilities 10 11 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. Shared Services The Company shares certain common expenditures with AHM and HCI, 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. 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 Note 7 for additional information. Other The majority of the amounts due from the Parent and affiliated companies at June 30, 2024 and March 31, 2024 were related to incentive financing program subsidies. The majority of the amounts due to the Parent and affiliated companies at June 30, 2024 and March 31, 2024 were 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 AHM and HCFI leases its premises from HCI. In July 2024 and 2023, AHFC declared cash dividends of $536 million and $553 million, to its parent, AHM. In July 2024, HCFI declared cash dividends to AHFC and HCI of $74 million and $68 million , respectively. In July 2023, HCFI declared cash dividends to AHFC and HCI of $37 million and $34 million, respectively.

Income Taxes

Income Taxes	3 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On August 16, 2022, the Inflation Reduction Act of 2022 (IRA) was enacted into law. The IRA includes tax provisions for new corporate alternative minimum tax (CAMT) of 15% on adjusted financial statement income of corporations with profits greater than $1.0 billion, effective for taxable years beginning after December 31, 2022, in addition to a new tax credit for qualified commercial clean vehicles (QCCV) that applies to vehicles acquired after December 31, 2022. At June 30, 2024, based on proposed guidance and regulations issued to date, the Company does not expect to incur CAMT liability for fiscal year 2025 and expects to generate and utilize material QCCV tax credits during the fiscal year 2025. The Company accounts for the QCCV tax credits using the deferral method. The Company will continue to evaluate the effects of IRA as additional guidance and regulations are issued. During fiscal years 2024 and 2025, several countries, including Japan and Canada, enacted tax laws to adopt various aspects of the Organization for Economic Cooperation and Development (OECD) Global Anti-Base Erosion Model Rules (GloBE Rules). The GloBE Rules are designed to ensure large multinational enterprises (MNEs) pay a minimum level of tax (“Minimum Tax”) on income in each of the jurisdictions in which they operate. These rules generally apply to MNE groups with annual revenue of €750 million or more. The Company is in scope of the GloBE Rules, effective as of April 1, 2024, as a result of our affiliation with HMC. On June 20, 2024, Canada, where the Company’s Canadian subsidiary HCFI is incorporated, enacted the Global Minimum Tax Act, which implemented the Income Inclusion Rule and Qualified Domestic Minimum Top-up tax under the GloBE Rules, effective from April 1, 2024. Since HCFI is expected to have an effective tax rate that exceeds the 15% minimum rate, the Company has no related current tax expense associated with the Minimum Tax as of June 30, 2024. To date, the U.S., where we have operations and conduct business, has not enacted laws to adopt the GloBE Rules. Based on preliminary analysis, we do not expect a material tax impact as a result of the GloBE Rules. The Company will continue to monitor legislative developments and changes in business for potential impacts of the GloBE Rules on future periods. The Company's effective tax rate was 31.0% and 31.3% for the three months ended June 30, 2024 and 2023, respectively. The Company's effective tax rates for the three months ended June 30, 2024, differs from the U.S. federal statutory tax rate primarily as a result of U.S. state taxes. 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 June 30, 2024, $1.0 billion of accumulated undistributed earnings of HCFI were intended to be so reinvested. If the undistributed earnings as of June 30, 2024 were to be distributed, the tax liability associated with these earnings would be $126 million, inclusive of currency translation adjustments. As of June 30, 2024, the Company is subject to examination for U.S. federal returns filed for the taxable years ended March 31, 2014 through 2023, and for various U.S state returns filed for the taxable years ended March 31, 2008 through 2023. The Company’s Canadian subsidiary, HCFI, is subject to examination for federal and provincial returns filed for the taxable years ended March 31, 2017 through 2023. The Company believes appropriate provision has been made for all outstanding issues for all open years and does not expect any material changes in the amounts of unrecognized tax benefits during the fiscal year ending March 31, 2025.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jun. 30, 2024
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. Operating lease liabilities are reported in other liabilities on the Company's consolidated balance sheets. At June 30, 2024, maturities of operating lease liabilities were as follows: Twelve-month periods ending June 30, (U.S. dollars in millions) 2025 $ 10 2026 10 2027 10 2028 9 2029 7 Thereafter 22 Total undiscounted future lease obligations 68 Less: imputed interest (7) Operating lease liabilities $ 61 Lease expense under operating leases was $2 million for both the three months ended June 30, 2024 and 2023. Lease expense is included within general and administrative expenses. As of June 30, 2024, the weighted average remaining lease term for operating leases was 7.3 years and the weighted average remaining discount rate for operating leases was 3% . 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 $479 million as of June 30, 2024. The Company also has commitments to finance the construction of automobile dealership facilities. The remaining unfunded balance for these construction loans was $7 million as of June 30, 2024. 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. In November 2023, the Company received a civil investigative demand issued by the Consumer Financial Protection Bureau (CFPB) in connection with the Company’s furnishing of credit reporting information on consumer credit accounts. The Company is cooperating with the CFPB and is responding to their information requests. Management cannot predict the eventual scope, duration or outcome of this investigation and is unable to estimate the amount or range of potential losses, if any, at this time.

Securitizations and Variable In

Securitizations and Variable Interest Entities (VIE)	3 Months Ended
	Jun. 30, 2024
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 three months ended June 30, 2024 and 2023, the Company issued notes through asset-backed securitizations, which were accounted for as secured financing transactions totaling $2.0 billion and $1.5 billion, respectively. The notes were secured by assets with an initial balance of $2.2 billion and $1.6 billion, 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. There were no outstanding operating lease securitizations as of June 30, 2024. June 30, 2024 Assets Liabilities (U.S. dollars in millions) Securitized assets Restricted cash (1) Other Secured debt Other Retail loan securitizations $ 10,482 $ 757 $ 27 $ 9,967 $ 18 March 31, 2024 Assets Liabilities (U.S. dollars in millions) Securitized assets Restricted cash (1) Other Secured debt Other Retail loan securitizations $ 9,796 $ 715 $ 25 $ 9,351 $ 17 ________________________ (1) Included with other assets in the Company’s consolidated balance sheets (Note 10). 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 June 30, 2024 and March 31, 2024, AHFC and HCFI had combined cash collections of $488 million and $476 million, respectively, which were required to be remitted to the SPEs.

Other Assets

Other Assets	3 Months Ended
	Jun. 30, 2024
Other Assets [Abstract]
Other Assets	Other Assets Other assets consisted of the following: June 30, 2024 March 31, 2024 (U.S. dollars in millions) Accrued interest and fees on finance receivables $ 173 $ 163 Accrued lease payments and fees on operating leases 66 64 Vehicles held for disposition 186 138 Restricted cash 757 715 Operating lease right-of-use assets 52 54 Other miscellaneous assets 79 80 Total $ 1,313 $ 1,214

Other Liabilities

Other Liabilities	3 Months Ended
	Jun. 30, 2024
Other Liabilities Disclosure [Abstract]
Other Liabilities	Other Liabilities Other liabilities consisted of the following: June 30, 2024 March 31, 2024 (U.S. dollars in millions) Dealer payables $ 222 $ 288 Accrued interest expense 415 317 Accounts payable and accrued expenses 318 334 Lease security deposits 49 50 Unearned income, operating leases 242 250 Operating lease liabilities 61 62 Uncertain tax positions 107 105 Other liabilities 48 49 Total $ 1,462 $ 1,455

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jun. 30, 2024
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: June 30, 2024 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 565 $ — $ 565 Cross currency swaps — 32 — 32 Total assets $ — $ 597 $ — $ 597 Liabilities: Derivative instruments: Interest rate swaps $ — $ 744 $ — $ 744 Cross currency swaps — 590 — 590 Total liabilities $ — $ 1,334 $ — $ 1,334 March 31, 2024 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 714 $ — $ 714 Cross currency swaps — 29 — 29 Total assets $ — $ 743 $ — $ 743 Liabilities: Derivative instruments: Interest rate swaps $ — $ 881 $ — $ 881 Cross currency swaps — 591 — 591 Total liabilities $ — $ 1,472 $ — $ 1,472 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 three months ended June 30, 2024 and 2023. Refer to Note 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) June 30, 2024 Vehicles held for disposition $ — $ — $ 136 $ 136 $ 47 June 30, 2023 Vehicles held for disposition $ — $ — $ 33 $ 33 $ 8 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 and cash equivalents, restricted cash, and short-term investments approximate fair values due to the short-term nature and limited credit risk of the instruments. June 30, 2024 Carrying Fair value value Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Dealer loans, net $ 4,223 — — $ 3,861 $ 3,861 Retail loans, net 44,955 — 44,061 44,061 Liabilities: Commercial paper $ 6,105 — $ 6,105 — $ 6,105 Bank loans 1,795 — 1,799 — 1,799 Medium-term note programs 31,509 — 30,764 — 30,764 Other debt 3,429 — 3,382 — 3,382 Secured debt 9,967 — 9,962 — 9,962 March 31, 2024 Carrying Fair value value Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Dealer loans, net $ 4,052 — — $ 3,700 $ 3,700 Retail loans, net 43,196 — — 42,280 42,280 Liabilities: Commercial paper $ 5,293 — $ 5,293 — $ 5,293 Bank loans 1,804 — 1,811 — 1,811 Medium-term note programs 31,151 — 30,387 — 30,387 Other debt 3,318 — 3,251 — 3,251 Secured debt 9,351 — 9,333 — 9,333 Fair value information presented in the tables above is based on information available at June 30, 2024 and March 31, 2024. 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	3 Months Ended
	Jun. 30, 2024
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 three months ended June 30, 2024 and 2023 is summarized in the following tables: United Canada Valuation Consolidated (U.S. dollars in millions) Three months ended June 30, 2024 Revenues: Retail $ 567 $ 63 $ — $ 630 Dealer 65 7 — 72 Operating leases 1,329 212 — 1,541 Total revenues 1,961 282 — 2,243 Leased vehicle expenses 897 160 — 1,057 Interest expense 492 62 — 554 Realized (gains)/losses on derivatives and foreign 26 (9) (17) — Net revenues 546 69 17 632 Other income, net 36 4 — 40 Total net revenues 582 73 17 672 Expenses: General and administrative expenses 118 14 — 132 Provision for credit losses 67 4 — 71 Early termination loss on operating leases 18 — — 18 Loss on derivative instruments — — 88 88 Gain on foreign currency revaluation of debt — — (24) (24) Income before income taxes $ 379 $ 55 $ (47) $ 387 June 30, 2024 Finance receivables, net $ 44,278 $ 4,900 $ — $ 49,178 Investment in operating leases, net 24,171 3,496 — 27,667 Total assets 71,790 8,696 — 80,486 United Canada Valuation Consolidated (U.S. dollars in millions) Three months ended June 30, 2023 Revenues: Retail $ 388 $ 48 $ — $ 436 Dealer 45 5 — 50 Operating leases 1,297 240 — 1,537 Total revenues 1,730 293 — 2,023 Leased vehicle expenses 925 185 — 1,110 Interest expense 269 54 — 323 Realized (gains)/losses on derivatives and foreign (40) (16) 56 — Net revenues 576 70 (56) 590 Other income, net 25 4 — 29 Total net revenues 601 74 (56) 619 Expenses: General and administrative expenses 114 13 — 127 Provision for credit losses 77 2 — 79 Early termination loss on operating leases 12 — — 12 Gain on derivative instruments — — (71) (71) Loss on foreign currency revaluation of debt — — 50 50 Income before income taxes $ 398 $ 59 $ (35) $ 422 June 30, 2023 Finance receivables, net $ 35,680 $ 4,444 $ — $ 40,124 Investment in operating leases, net 23,723 3,909 — 27,632 Total assets 62,475 8,754 — 71,229

Summary of Business and Signi_2

Summary of Business and Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organizational Structure	Organizational Structure 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”, “we”, “us”, and “our” in this report include AHFC and its consolidated subsidiaries, and references to “AHFC” refer solely to American Honda Finance Corporation (excluding AHFC’s subsidiaries).
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. Results for interim periods should not be considered indicative of results for the full year or for any other interim period. These unaudited interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements, significant accounting policies, and the other notes to the consolidated financial statements for the fiscal year ended March 31, 2024 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (SEC) on June 20, 2024. All significant intercompany balances and transactions have been eliminated upon consolidation.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendments improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments are effective for the Company for fiscal years beginning April 1, 2024 and for interim periods beginning April 1, 2025. The Company is currently assessing the impact of this standard on the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

Finance Receivables (Tables)

Finance Receivables (Tables)	3 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Summary of Finance Receivables	Finance receivables consisted of the following: June 30, 2024 Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 45,305 $ 4,231 $ 49,536 Allowance for credit losses (383) (8) (391) Deferred dealer participation and other deferred costs 611 — 611 Unearned subsidy income (578) — (578) Finance receivables, net $ 44,955 $ 4,223 $ 49,178 March 31, 2024 Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 43,492 $ 4,060 $ 47,552 Allowance for credit losses (345) (8) (353) Deferred dealer participation and other deferred costs 600 — 600 Unearned subsidy income (551) — (551) Finance receivables, net $ 43,196 $ 4,052 $ 47,248
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: Three months ended June 30, 2024 Retail Dealer Total (U.S. dollars in millions) Beginning balance as of April 1, 2024 $ 345 $ 8 $ 353 Provision 71 — 71 Charge-offs (79) — (79) Recoveries 46 — 46 Effect of translation adjustment — — — Ending balance as of June 30, 2024 $ 383 $ 8 $ 391 Three months ended June 30, 2023 Retail Dealer Total (U.S. dollars in millions) Beginning balance as of April 1, 2023 $ 248 $ 5 $ 253 Provision 79 — 79 Charge-offs (47) — (47) Recoveries 23 — 23 Effect of translation adjustment — — — Ending balance as of June 30, 2023 $ 303 $ 5 $ 308
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) June 30, 2024 Retail loans: New automobile $ 282 $ 69 $ 15 $ 366 $ 35,205 $ 35,571 Used and certified automobile 148 44 11 203 8,089 8,292 Motorcycle and other 15 7 4 26 1,449 1,475 Total retail loans 445 120 30 595 44,743 45,338 Dealer loans: Wholesale flooring 1 — — 1 2,867 2,868 Commercial loans — — — — 1,363 1,363 Total dealer loans 1 — — 1 4,230 4,231 Total finance receivables $ 446 $ 120 $ 30 $ 596 $ 48,973 $ 49,569 March 31, 2024 Retail loans: New automobile $ 253 $ 59 $ 15 $ 327 $ 33,858 $ 34,185 Used and certified automobile 134 33 9 176 7,815 7,991 Motorcycle and other 15 6 3 24 1,341 1,365 Total retail loans 402 98 27 527 43,014 43,541 Dealer loans: Wholesale flooring 1 — — 1 2,785 2,786 Commercial loans — — — — 1,274 1,274 Total dealer loans 1 — — 1 4,059 4,060 Total finance receivables $ 403 $ 98 $ 27 $ 528 $ 47,073 $ 47,601
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 fiscal year 2025 2024 2023 2022 2021 Prior Total (U.S. dollars in millions) June 30, 2024 Credit grade A $ 4,205 $ 12,813 $ 5,214 $ 3,193 $ 2,413 $ 497 $ 28,335 Credit grade B 1,120 3,811 1,881 984 667 225 8,688 Credit grade C 809 2,650 1,214 668 452 197 5,990 Credit grade D 244 718 274 161 128 103 1,628 Others 103 308 128 84 48 26 697 Total retail loans $ 6,481 $ 20,300 $ 8,711 $ 5,090 $ 3,708 $ 1,048 $ 45,338 Gross charge-offs for the three months ended June 30, 2024 $ — $ 38 $ 22 $ 10 $ 5 $ 4 $ 79 Retail loans by vintage fiscal year 2024 2023 2022 2021 2020 Prior Total (U.S. dollars in millions) March 31, 2024 Credit grade A $ 14,094 $ 5,788 $ 3,713 $ 2,907 $ 597 $ 121 $ 27,220 Credit grade B 4,110 2,065 1,113 778 237 66 8,369 Credit grade C 2,853 1,338 758 526 200 61 5,736 Credit grade D 779 306 182 149 97 36 1,549 Others 338 142 96 57 22 12 667 Total retail loans $ 22,174 $ 9,639 $ 5,862 $ 4,417 $ 1,153 $ 296 $ 43,541 Gross charge-offs for the fiscal year ended March 31, 2024 $ 58 $ 109 $ 61 $ 34 $ 19 $ 12 $ 293 The following table summarizes the amortized cost of dealer loans by risk rating groups: Commercial loans by vintage fiscal year 2025 2024 2023 2022 2021 Prior Revolving loans Wholesale Flooring Total (U.S. dollars in millions) June 30, 2024 Group I $ — $ 141 $ 53 $ 14 $ 118 $ 127 $ 842 $ 1,887 $ 3,182 Group II — 44 4 — — 20 — 978 1,046 Group III — — — — — — — 3 3 Total dealer loans $ — $ 185 $ 57 $ 14 $ 118 $ 147 $ 842 $ 2,868 $ 4,231 Gross charge-offs for the three months ended June 30, 2024 $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial loans by vintage fiscal year 2024 2023 2022 2021 2020 Prior Revolving loans Wholesale Flooring Total (U.S. dollars in millions) March 31, 2024 Group I $ 146 $ 55 $ 9 $ 114 $ 45 $ 84 $ 748 $ 1,874 $ 3,075 Group II 44 3 5 1 — 20 — 911 984 Group III — — — — — — — 1 1 Total dealer loans $ 190 $ 58 $ 14 $ 115 $ 45 $ 104 $ 748 $ 2,786 $ 4,060 Gross charge-offs for the fiscal year ended March 31, 2024 $ — $ — $ — $ — $ — $ — $ — $ — $ —

Investment in Operating Leases

Investment in Operating Leases (Tables)	3 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Schedule of Investment in Operating Leases	Investment in operating leases consisted of the following: June 30, 2024 March 31, 2024 (U.S. dollars in millions) Operating lease vehicles $ 34,723 $ 34,840 Accumulated depreciation (6,065) (6,616) Deferred dealer participation and initial direct costs 109 103 Unearned subsidy income (997) (854) Estimated early termination losses (103) (95) Investment in operating leases, net $ 27,667 $ 27,378
Schedule of Operating Lease Revenue	Operating lease revenue consisted of the following: Three months ended June 30, 2024 2023 (U.S. dollars in millions) Lease payments $ 1,390 $ 1,400 Subsidy income and dealer rate participation, net 139 128 Reimbursed lessor costs 12 9 Total operating lease revenue, net $ 1,541 $ 1,537
Schedule of Operating Lease Expense	Leased vehicle expenses consisted of the following: Three months ended June 30, 2024 2023 (U.S. dollars in millions) Depreciation expense $ 1,058 $ 1,116 Initial direct costs and other lessor costs 29 25 Gain on disposition of leased vehicles (1) (30) (31) Total leased vehicle expenses, net $ 1,057 $ 1,110 ________________________ (1) Included in the gain on disposition of leased vehicles are end of term charges of $4 million and $1 million
Schedule of Contractual Operating Lease Payments	Contractual operating lease payments due as of June 30, 2024 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. Twelve-month periods ending June 30, (U.S. dollars in millions) 2025 $ 4,704 2026 3,471 2027 1,605 2028 324 2029 46 Total $ 10,150

Debt (Tables)

Debt (Tables)	3 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Outstanding Debt, 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 June 30, 2024 March 31, 2024 June 30, 2024 March 31, 2024 June 30, 2024 March 31, 2024 (U.S. dollars in millions) Unsecured debt: Commercial paper $ 6,105 $ 5,293 5.59 % 5.64 % 4.64 - 5.63% 5.02 - 5.70% Bank loans 1,795 1,804 5.92 % 6.05 % 5.35 - 6.60% 5.68 - 6.57% Public MTN program 31,509 31,151 3.68 % 3.58 % 0.30 - 6.14% 0.30 - 6.06% Other debt 3,429 3,318 3.90 % 3.59 % 1.34 - 6.16% 1.34 - 6.40% Total unsecured debt 42,838 41,566 Secured debt 9,967 9,351 4.75 % 4.56 % 0.33 - 5.87% 0.27 - 5.94% Total debt $ 52,805 $ 50,917 _______________________ (1) Weighted average contractual interest rates for commercial paper are bond equivalent yields. Contractual interest rates approximate effective yields.

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Jun. 30, 2024
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 12 regarding the valuation of derivative instruments. June 30, 2024 March 31, 2024 Notional Assets Liabilities Notional Assets Liabilities (U.S. dollars in millions) Interest rate swaps $ 63,471 $ 565 $ 744 $ 64,146 $ 714 $ 881 Cross currency swaps 5,755 32 590 5,755 29 591 Gross derivative assets/liabilities 597 1,334 743 1,472 Collateral posted/held 5 6 1 9 Counterparty netting adjustment (564) (564) (701) (701) Net derivative assets/liabilities $ 38 $ 776 $ 43 $ 780
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. Three months ended June 30, 2024 2023 (U.S. dollars in millions) Interest rate swaps $ 1 $ 126 Cross currency swaps (89) (55) Total gain/(loss) on derivative instruments $ (88) $ 71

Transactions Involving Relate_2

Transactions Involving Related Parties (Tables)	3 Months Ended
	Jun. 30, 2024
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: Three months ended June 30, Income Statement 2024 2023 (U.S. dollars in millions) Revenue: Subsidy income $ 249 $ 236 General and administrative expenses: Support Compensation Agreement fees 20 15 Benefit plan expenses 1 2 Shared services 19 18 Lease expense 1 1 Balance Sheet June 30, 2024 March 31, 2024 (U.S. dollars in millions) Assets : Finance receivables, net: Unearned subsidy income $ (567) $ (542) Investment in operating leases, net: Unearned subsidy income (995) (853) Due from Parent and affiliated companies 161 137 Liabilities: Due to Parent and affiliated companies 135 153 Other liabilities: Accrued benefit expenses 65 64 Operating lease liabilities 10 11

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Maturities of Operating Lease Liabilities	At June 30, 2024, maturities of operating lease liabilities were as follows: Twelve-month periods ending June 30, (U.S. dollars in millions) 2025 $ 10 2026 10 2027 10 2028 9 2029 7 Thereafter 22 Total undiscounted future lease obligations 68 Less: imputed interest (7) Operating lease liabilities $ 61

Securitizations and Variable _2

Securitizations and Variable Interest Entities (VIE) (Tables)	3 Months Ended
	Jun. 30, 2024
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. There were no outstanding operating lease securitizations as of June 30, 2024. June 30, 2024 Assets Liabilities (U.S. dollars in millions) Securitized assets Restricted cash (1) Other Secured debt Other Retail loan securitizations $ 10,482 $ 757 $ 27 $ 9,967 $ 18 March 31, 2024 Assets Liabilities (U.S. dollars in millions) Securitized assets Restricted cash (1) Other Secured debt Other Retail loan securitizations $ 9,796 $ 715 $ 25 $ 9,351 $ 17 ________________________ (1) Included with other assets in the Company’s consolidated balance sheets (Note 10).

Other Assets (Tables)

Other Assets (Tables)	3 Months Ended
	Jun. 30, 2024
Other Assets [Abstract]
Schedule of Other Assets	Other assets consisted of the following: June 30, 2024 March 31, 2024 (U.S. dollars in millions) Accrued interest and fees on finance receivables $ 173 $ 163 Accrued lease payments and fees on operating leases 66 64 Vehicles held for disposition 186 138 Restricted cash 757 715 Operating lease right-of-use assets 52 54 Other miscellaneous assets 79 80 Total $ 1,313 $ 1,214

Other Liabilities (Tables)

Other Liabilities (Tables)	3 Months Ended
	Jun. 30, 2024
Other Liabilities Disclosure [Abstract]
Schedule of Other Liabilities	Other liabilities consisted of the following: June 30, 2024 March 31, 2024 (U.S. dollars in millions) Dealer payables $ 222 $ 288 Accrued interest expense 415 317 Accounts payable and accrued expenses 318 334 Lease security deposits 49 50 Unearned income, operating leases 242 250 Operating lease liabilities 61 62 Uncertain tax positions 107 105 Other liabilities 48 49 Total $ 1,462 $ 1,455

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jun. 30, 2024
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: June 30, 2024 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 565 $ — $ 565 Cross currency swaps — 32 — 32 Total assets $ — $ 597 $ — $ 597 Liabilities: Derivative instruments: Interest rate swaps $ — $ 744 $ — $ 744 Cross currency swaps — 590 — 590 Total liabilities $ — $ 1,334 $ — $ 1,334 March 31, 2024 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 714 $ — $ 714 Cross currency swaps — 29 — 29 Total assets $ — $ 743 $ — $ 743 Liabilities: Derivative instruments: Interest rate swaps $ — $ 881 $ — $ 881 Cross currency swaps — 591 — 591 Total liabilities $ — $ 1,472 $ — $ 1,472
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) June 30, 2024 Vehicles held for disposition $ — $ — $ 136 $ 136 $ 47 June 30, 2023 Vehicles held for disposition $ — $ — $ 33 $ 33 $ 8
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 and cash equivalents, restricted cash, and short-term investments approximate fair values due to the short-term nature and limited credit risk of the instruments. June 30, 2024 Carrying Fair value value Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Dealer loans, net $ 4,223 — — $ 3,861 $ 3,861 Retail loans, net 44,955 — 44,061 44,061 Liabilities: Commercial paper $ 6,105 — $ 6,105 — $ 6,105 Bank loans 1,795 — 1,799 — 1,799 Medium-term note programs 31,509 — 30,764 — 30,764 Other debt 3,429 — 3,382 — 3,382 Secured debt 9,967 — 9,962 — 9,962 March 31, 2024 Carrying Fair value value Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Dealer loans, net $ 4,052 — — $ 3,700 $ 3,700 Retail loans, net 43,196 — — 42,280 42,280 Liabilities: Commercial paper $ 5,293 — $ 5,293 — $ 5,293 Bank loans 1,804 — 1,811 — 1,811 Medium-term note programs 31,151 — 30,387 — 30,387 Other debt 3,318 — 3,251 — 3,251 Secured debt 9,351 — 9,333 — 9,333

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Financial Information by Segment	Financial information for the three months ended June 30, 2024 and 2023 is summarized in the following tables: United Canada Valuation Consolidated (U.S. dollars in millions) Three months ended June 30, 2024 Revenues: Retail $ 567 $ 63 $ — $ 630 Dealer 65 7 — 72 Operating leases 1,329 212 — 1,541 Total revenues 1,961 282 — 2,243 Leased vehicle expenses 897 160 — 1,057 Interest expense 492 62 — 554 Realized (gains)/losses on derivatives and foreign 26 (9) (17) — Net revenues 546 69 17 632 Other income, net 36 4 — 40 Total net revenues 582 73 17 672 Expenses: General and administrative expenses 118 14 — 132 Provision for credit losses 67 4 — 71 Early termination loss on operating leases 18 — — 18 Loss on derivative instruments — — 88 88 Gain on foreign currency revaluation of debt — — (24) (24) Income before income taxes $ 379 $ 55 $ (47) $ 387 June 30, 2024 Finance receivables, net $ 44,278 $ 4,900 $ — $ 49,178 Investment in operating leases, net 24,171 3,496 — 27,667 Total assets 71,790 8,696 — 80,486 United Canada Valuation Consolidated (U.S. dollars in millions) Three months ended June 30, 2023 Revenues: Retail $ 388 $ 48 $ — $ 436 Dealer 45 5 — 50 Operating leases 1,297 240 — 1,537 Total revenues 1,730 293 — 2,023 Leased vehicle expenses 925 185 — 1,110 Interest expense 269 54 — 323 Realized (gains)/losses on derivatives and foreign (40) (16) 56 — Net revenues 576 70 (56) 590 Other income, net 25 4 — 29 Total net revenues 601 74 (56) 619 Expenses: General and administrative expenses 114 13 — 127 Provision for credit losses 77 2 — 79 Early termination loss on operating leases 12 — — 12 Gain on derivative instruments — — (71) (71) Loss on foreign currency revaluation of debt — — 50 50 Income before income taxes $ 398 $ 59 $ (35) $ 422 June 30, 2023 Finance receivables, net $ 35,680 $ 4,444 $ — $ 40,124 Investment in operating leases, net 23,723 3,909 — 27,632 Total assets 62,475 8,754 — 71,229

Finance Receivables - Summary o

Finance Receivables - Summary of Finance Receivables (Detail) - USD ($) $ in Millions	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables	$ 49,536	$ 47,552
Allowance for credit losses	(391)	(353)	$ (308)	$ (253)
Deferred dealer participation and other deferred costs	611	600
Unearned subsidy income	(578)	(551)
Finance receivables, net	49,178	47,248	40,124
Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables	45,305	43,492
Allowance for credit losses	(383)	(345)	(303)	(248)
Deferred dealer participation and other deferred costs	611	600
Unearned subsidy income	(578)	(551)
Finance receivables, net	44,955	43,196
Dealer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables	4,231	4,060
Allowance for credit losses	(8)	(8)	$ (5)	$ (5)
Deferred dealer participation and other deferred costs	0	0
Unearned subsidy income	0	0
Finance receivables, net	$ 4,223	$ 4,052

Finance Receivables - Narrative

Finance Receivables - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables	$ 49,178	$ 47,248	$ 40,124
Retail loans and leases threshold delinquent (percent) (more than)	10%
Retail loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables	$ 44,955	43,196
Collateral Pledged | Retail loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables	$ 10,500	$ 9,800

Finance Receivables - Summary_2

Finance Receivables - Summary of Activity in Allowance for Credit Losses of Finance Receivables (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 353	$ 253	$ 253
Provision	71	79
Charge-offs	(79)	(47)
Recoveries	46	23
Effect of translation adjustment	0	0
Ending balance	391	308	353
Retail
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	345	248	248
Provision	71	79
Charge-offs	(79)	(47)
Recoveries	46	23
Effect of translation adjustment	0	0
Ending balance	383	303	345
Dealer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	8	5	5
Provision	0	0
Charge-offs	0	0
Recoveries	0	0
Effect of translation adjustment	0	0
Ending balance	$ 8	$ 5	$ 8

Finance Receivables - Summary_3

Finance Receivables - Summary of Aging Analysis of Past Due Finance Receivables (Detail) - USD ($) $ in Millions	Jun. 30, 2024	Mar. 31, 2024
Financing Receivable, Past Due [Line Items]
Total finance receivables	$ 49,569	$ 47,601
Retail loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	45,338	43,541
Retail loans | New automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	35,571	34,185
Retail loans | Used and certified automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	8,292	7,991
Retail loans | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	1,475	1,365
Dealer loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	4,231	4,060
Dealer loans | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	2,868	2,786
Dealer loans | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	1,363	1,274
Total past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	596	528
Total past due | Retail loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	595	527
Total past due | Retail loans | New automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	366	327
Total past due | Retail loans | Used and certified automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	203	176
Total past due | Retail loans | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	26	24
Total past due | Dealer loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	1	1
Total past due | Dealer loans | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	1	1
Total past due | Dealer loans | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
30 – 59 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	446	403
30 – 59 days past due | Retail loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	445	402
30 – 59 days past due | Retail loans | New automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	282	253
30 – 59 days past due | Retail loans | Used and certified automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	148	134
30 – 59 days past due | Retail loans | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	15	15
30 – 59 days past due | Dealer loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	1	1
30 – 59 days past due | Dealer loans | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	1	1
30 – 59 days past due | Dealer loans | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
60 – 89 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	120	98
60 – 89 days past due | Retail loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	120	98
60 – 89 days past due | Retail loans | New automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	69	59
60 – 89 days past due | Retail loans | Used and certified automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	44	33
60 – 89 days past due | Retail loans | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	7	6
60 – 89 days past due | Dealer loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
60 – 89 days past due | Dealer loans | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
60 – 89 days past due | Dealer loans | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
90 days or greater past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	30	27
90 days or greater past due | Retail loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	30	27
90 days or greater past due | Retail loans | New automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	15	15
90 days or greater past due | Retail loans | Used and certified automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	11	9
90 days or greater past due | Retail loans | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	4	3
90 days or greater past due | Dealer loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
90 days or greater past due | Dealer loans | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
90 days or greater past due | Dealer loans | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	0	0
Current or less than 30 days past due
Financing Receivable, Past Due [Line Items]
Total finance receivables	48,973	47,073
Current or less than 30 days past due | Retail loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	44,743	43,014
Current or less than 30 days past due | Retail loans | New automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	35,205	33,858
Current or less than 30 days past due | Retail loans | Used and certified automobile
Financing Receivable, Past Due [Line Items]
Total finance receivables	8,089	7,815
Current or less than 30 days past due | Retail loans | Motorcycle and other
Financing Receivable, Past Due [Line Items]
Total finance receivables	1,449	1,341
Current or less than 30 days past due | Dealer loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	4,230	4,059
Current or less than 30 days past due | Dealer loans | Wholesale flooring
Financing Receivable, Past Due [Line Items]
Total finance receivables	2,867	2,785
Current or less than 30 days past due | Dealer loans | Commercial loans
Financing Receivable, Past Due [Line Items]
Total finance receivables	$ 1,363	$ 1,274

Finance Receivables - Summary_4

Finance Receivables - Summary of Loans by Internal Credit Grade (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Current Period
Total	$ 49,536		$ 47,552
Current Period, Gross charge-offs
Total	79	$ 47
Prior Year
Total	49,536		47,552
Prior Period, Gross charge-offs
Total	79	47
Retail loans
Current Period
Total	45,305		43,492
Current Period, Gross charge-offs
Total	79	47
Prior Year
Total	45,305		43,492
Prior Period, Gross charge-offs
Total	79	$ 47
Performing | Retail loans
Current Period
2025	6,481		22,174
2024	20,300		9,639
2023	8,711		5,862
2022	5,090		4,417
2021	3,708		1,153
Prior	1,048		296
Total	45,338		43,541
Current Period, Gross charge-offs
2025	0		58
2024	38		109
2023	22		61
2022	10		34
2021	5		19
Prior	4		12
Total	79		293
Prior Year
2024	6,481		22,174
2023	20,300		9,639
2022	8,711		5,862
2021	5,090		4,417
2020	3,708		1,153
Prior	1,048		296
Total	45,338		43,541
Prior Period, Gross charge-offs
2024	0		58
2023	38		109
2022	22		61
2021	10		34
2020	5		19
Prior	4		12
Total	79		293
Credit grade A | Performing | Retail loans
Current Period
2025	4,205		14,094
2024	12,813		5,788
2023	5,214		3,713
2022	3,193		2,907
2021	2,413		597
Prior	497		121
Total	28,335		27,220
Prior Year
2024	4,205		14,094
2023	12,813		5,788
2022	5,214		3,713
2021	3,193		2,907
2020	2,413		597
Prior	497		121
Total	28,335		27,220
Credit grade B | Performing | Retail loans
Current Period
2025	1,120		4,110
2024	3,811		2,065
2023	1,881		1,113
2022	984		778
2021	667		237
Prior	225		66
Total	8,688		8,369
Prior Year
2024	1,120		4,110
2023	3,811		2,065
2022	1,881		1,113
2021	984		778
2020	667		237
Prior	225		66
Total	8,688		8,369
Credit grade C | Performing | Retail loans
Current Period
2025	809		2,853
2024	2,650		1,338
2023	1,214		758
2022	668		526
2021	452		200
Prior	197		61
Total	5,990		5,736
Prior Year
2024	809		2,853
2023	2,650		1,338
2022	1,214		758
2021	668		526
2020	452		200
Prior	197		61
Total	5,990		5,736
Credit grade D | Performing | Retail loans
Current Period
2025	244		779
2024	718		306
2023	274		182
2022	161		149
2021	128		97
Prior	103		36
Total	1,628		1,549
Prior Year
2024	244		779
2023	718		306
2022	274		182
2021	161		149
2020	128		97
Prior	103		36
Total	1,628		1,549
Others | Performing | Retail loans
Current Period
2025	103		338
2024	308		142
2023	128		96
2022	84		57
2021	48		22
Prior	26		12
Total	697		667
Prior Year
2024	103		338
2023	308		142
2022	128		96
2021	84		57
2020	48		22
Prior	26		12
Total	$ 697		$ 667

Finance Receivables - Summary_5

Finance Receivables - Summary of Loans by Risk Rate Grouping (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Current Period
Total	$ 49,536		$ 47,552
Current Period, Gross charge-offs
Total	79	$ 47
Prior Year
Total	49,536		47,552
Prior Period, Gross charge-offs
Total	79	47
Dealer loans
Current Period
Total	4,231		4,060
Current Period, Gross charge-offs
Total	0	0
Prior Year
Total	4,231		4,060
Prior Period, Gross charge-offs
Total	0	$ 0
Dealer loans | Performing
Current Period
Total	4,231		4,060
Current Period, Gross charge-offs
Total	0		0
Prior Year
Total	4,231		4,060
Prior Period, Gross charge-offs
Total	0		0
Dealer loans | Group I | Performing
Current Period
Total	3,182		3,075
Prior Year
Total	3,182		3,075
Dealer loans | Group II | Performing
Current Period
Total	1,046		984
Prior Year
Total	1,046		984
Dealer loans | Group III | Performing
Current Period
Total	3		1
Prior Year
Total	3		1
Dealer loans | Commercial loans | Performing
Current Period
2025	0		190
2024	185		58
2023	57		14
2022	14		115
2021	118		45
Prior	147		104
Revolving loans	842		748
Current Period, Gross charge-offs
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	0		0
Prior	0		0
Revolving loans	0		0
Prior Year
2024	0		190
2023	185		58
2022	57		14
2021	14		115
2020	118		45
Prior	147		104
Revolving loans	842		748
Prior Period, Gross charge-offs
2024	0		0
2023	0		0
2022	0		0
2021	0		0
2020	0		0
Prior	0		0
Revolving loans	0		0
Dealer loans | Commercial loans | Group I | Performing
Current Period
2025	0		146
2024	141		55
2023	53		9
2022	14		114
2021	118		45
Prior	127		84
Revolving loans	842		748
Prior Year
2024	0		146
2023	141		55
2022	53		9
2021	14		114
2020	118		45
Prior	127		84
Revolving loans	842		748
Dealer loans | Commercial loans | Group II | Performing
Current Period
2025	0		44
2024	44		3
2023	4		5
2022	0		1
2021	0		0
Prior	20		20
Revolving loans	0		0
Prior Year
2024	0		44
2023	44		3
2022	4		5
2021	0		1
2020	0		0
Prior	20		20
Revolving loans	0		0
Dealer loans | Commercial loans | Group III | Performing
Current Period
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	0		0
Prior	0		0
Revolving loans	0		0
Prior Year
2024	0		0
2023	0		0
2022	0		0
2021	0		0
2020	0		0
Prior	0		0
Revolving loans	0		0
Dealer loans | Wholesale flooring | Performing
Current Period
Total	2,868		2,786
Current Period, Gross charge-offs
Total	0		0
Prior Year
Total	2,868		2,786
Prior Period, Gross charge-offs
Total	0		0
Dealer loans | Wholesale flooring | Group I | Performing
Current Period
Total	1,887		1,874
Prior Year
Total	1,887		1,874
Dealer loans | Wholesale flooring | Group II | Performing
Current Period
Total	978		911
Prior Year
Total	978		911
Dealer loans | Wholesale flooring | Group III | Performing
Current Period
Total	3		1
Prior Year
Total	$ 3		$ 1

Investment in Operating Lease_2

Investment in Operating Leases - Schedule of Investment in Operating Leases (Detail) - USD ($) $ in Millions	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease vehicles	$ 34,723	$ 34,840
Accumulated depreciation	(6,065)	(6,616)
Deferred dealer participation and initial direct costs	109	103
Unearned subsidy income	(997)	(854)
Estimated early termination losses	(103)	(95)
Investment in operating leases, net	$ 27,667	$ 27,378	$ 27,632

Investment in Operating Lease_3

Investment in Operating Leases - Schedule of Operating Lease Revenue (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Lease payments	$ 1,390	$ 1,400
Subsidy income and dealer rate participation, net	139	128
Reimbursed lessor costs	12	9
Total operating lease revenue, net	$ 1,541	$ 1,537

Investment in Operating Lease_4

Investment in Operating Leases - Schedule of Leased Vehicle Expenses (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Lessor, Lease, Description [Line Items]
End of term charges included in gain on disposition of vehicles	$ 4	$ 1
Leased Vehicles
Lessor, Lease, Description [Line Items]
Depreciation expense	1,058	1,116
Initial direct costs and other lessor costs	29	25
Gain on disposition of leased vehicles	(30)	(31)
Total leased vehicle expenses, net	$ 1,057	$ 1,110

Investment in Operating Lease_5

Investment in Operating Leases - Narrative (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Early termination loss on operating leases	$ 18,000,000	$ 12,000,000
Actual net losses realized on operating leases	10,000,000	3,000,000
Provision for credit losses on operating leases	6,000,000	3,000,000
Impairment losses	$ 0	$ 0

Investment in Operating Lease_6

Investment in Operating Leases - Schedule of Contractual Operating Lease Payments (Detail) $ in Millions	Jun. 30, 2024 USD ($)
Leases [Abstract]
2025	$ 4,704
2026	3,471
2027	1,605
2028	324
2029	46
Total	$ 10,150

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	Jun. 30, 2024	Mar. 31, 2024
Debt Instrument [Line Items]
Unsecured debt	$ 42,838	$ 41,566
Secured debt	9,967	9,351
Total debt	52,805	50,917
Commercial paper
Debt Instrument [Line Items]
Unsecured debt	$ 6,105	$ 5,293
Weighted average contractual interest rate (percentage)	5.59%	5.64%
Commercial paper | Minimum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	4.64%	5.02%
Commercial paper | Maximum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	5.63%	5.70%
Bank loans
Debt Instrument [Line Items]
Unsecured debt	$ 1,795	$ 1,804
Weighted average contractual interest rate (percentage)	5.92%	6.05%
Bank loans | Minimum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	5.35%	5.68%
Bank loans | Maximum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	6.60%	6.57%
Public MTN program
Debt Instrument [Line Items]
Unsecured debt	$ 31,509	$ 31,151
Weighted average contractual interest rate (percentage)	3.68%	3.58%
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)	6.14%	6.06%
Other debt
Debt Instrument [Line Items]
Unsecured debt	$ 3,429	$ 3,318
Weighted average contractual interest rate (percentage)	3.90%	3.59%
Other debt | Minimum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	1.34%	1.34%
Other debt | Maximum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	6.16%	6.40%
Secured debt
Debt Instrument [Line Items]
Secured debt	$ 9,967	$ 9,351
Weighted average contractual interest rate (percentage)	4.75%	4.56%
Secured debt | Minimum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	0.33%	0.27%
Secured debt | Maximum
Debt Instrument [Line Items]
Contractual interest rate ranges (percentage)	5.87%	5.94%

Debt - Narrative (Detail)

Debt - Narrative (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Aug. 31, 2022
Debt Instrument [Line Items]
Outstanding principal balance of long-term debt with floating interest rates	$ 8,100,000,000		$ 7,700,000,000
Outstanding principal balance of long-term debt with fixed interest rates	36,900,000,000		36,900,000,000
Short-term debt	7,800,000,000		6,300,000,000
AHFC | Other Credit Agreements
Debt Instrument [Line Items]
Maximum funds available	1,000,000,000
Line of credit facility outstanding amount	0
AHFC | Syndicated Bank Credit Facilities
Debt Instrument [Line Items]
Maximum funds available	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	3,500,000,000
AHFC | Syndicated Bank Credit Facilities With Three Year Credit Agreement
Debt Instrument [Line Items]
Maximum funds available	2,100,000,000
AHFC | Syndicated Bank Credit Facilities With Five Year Credit Agreement
Debt Instrument [Line Items]
Maximum funds available	1,400,000,000
HCFI | Syndicated Bank Credit Facilities
Debt Instrument [Line Items]
Maximum funds available	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	731,000,000
HCFI | Syndicated Bank Credit Facilities With Five Year Revolving Term
Debt Instrument [Line Items]
Maximum funds available	731,000,000
Commercial paper
Debt Instrument [Line Items]
Maximum funds available	$ 8,800,000,000		$ 8,800,000,000
Line of credit, term (up to)	1 year		1 year
Average outstanding balance	$ 5,400,000,000	$ 6,800,000,000
Commercial paper | Other Credit Agreements
Debt Instrument [Line Items]
Line of credit facility, maximum month-end outstanding amount	$ 6,100,000,000	$ 7,000,000,000
Public MTN program
Debt Instrument [Line Items]
Maximum funds available				$ 30,000,000,000

Derivative Instruments - Notion

Derivative Instruments - Notional Balances and Fair Values of Derivatives (Detail) - USD ($) $ in Millions	Jun. 30, 2024	Mar. 31, 2024
Derivatives, Fair Value [Line Items]
Assets	$ 597	$ 743
Collateral posted/held	5	1
Counterparty netting adjustment	(564)	(701)
Net derivative assets	38	43
Liabilities	1,334	1,472
Collateral posted/held	6	9
Counterparty netting adjustment	(564)	(701)
Net derivative liabilities	776	780
Interest rate swaps
Derivatives, Fair Value [Line Items]
Notional balances	63,471	64,146
Assets	565	714
Liabilities	744	881
Cross currency swaps
Derivatives, Fair Value [Line Items]
Notional balances	5,755	5,755
Assets	32	29
Liabilities	$ 590	$ 591

Derivative Instruments - Income

Derivative Instruments - Income Statement Impact of Derivative Instruments (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Total gain/(loss) on derivative instruments	$ (88)	$ 71
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Total gain/(loss) on derivative instruments	1	126
Cross currency swaps
Derivative Instruments, Gain (Loss) [Line Items]
Total gain/(loss) on derivative instruments	$ (89)	$ (55)

Transactions Involving Relate_3

Transactions Involving Related Parties - Summary of Income Statement Impact of Transactions with Parent and Affiliated Companies (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Revenue:
Subsidy income	$ 2,243	$ 2,023
General and administrative expenses:
Lease expense	2	2
Affiliated Entity
Revenue:
Subsidy income	249	236
General and administrative expenses:
Support Compensation Agreement fees	20	15
Benefit plan expenses	1	2
Shared services	19	18
Lease expense	$ 1	$ 1

Transactions Involving Relate_4

Transactions Involving Related Parties - Summary of Balance Sheet Impact of Transactions with Parent and Affiliated Companies (Detail) - USD ($) $ in Millions	Jun. 30, 2024	Mar. 31, 2024
Other liabilities:
Operating lease liabilities	$ 61	$ 62
Affiliated Entity
Finance receivables, net:
Unearned subsidy income	(567)	(542)
Investment in operating leases, net:
Unearned subsidy income	(995)	(853)
Due from Parent and affiliated companies	161	137
Liabilities
Due to Parent and affiliated companies	135	153
Other liabilities:
Accrued benefit expenses	65	64
Operating lease liabilities	$ 10	$ 11

Transactions Involving Relate_5

Transactions Involving Related Parties - Narrative (Detail) - USD ($) $ in Millions	1 Months Ended
	Jul. 31, 2024	Jul. 31, 2023	Jun. 30, 2024
AHM
Related Party Transaction [Line Items]
Dividends		$ 553
AHM | Subsequent Event
Related Party Transaction [Line Items]
Dividends	$ 536
HCFI | HMC
Related Party Transaction [Line Items]
Honda Motor Company required ownership interest (percentage)			80%
HCFI | AHFC
Related Party Transaction [Line Items]
Dividends		37
HCFI | AHFC | Subsequent Event
Related Party Transaction [Line Items]
Dividends	74
HCFI | HCI
Related Party Transaction [Line Items]
Dividends		$ 34
HCFI | HCI | Subsequent Event
Related Party Transaction [Line Items]
Dividends	$ 68
AHFC | HMC
Related Party Transaction [Line Items]
Honda Motor Company required ownership interest (percentage)			80%

Income Taxes (Detail)

Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate (percentage)	31%	31.30%
Accumulated undistributed earnings of HCFI	$ 1,000
Unrecognized deferred tax liability from undistributed foreign earnings	$ 126

Commitments and Contingencies -

Commitments and Contingencies - Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2024	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
2025	$ 10
2026	10
2027	10
2028	9
2029	7
Thereafter	22
Total undiscounted future lease obligations	68
Less: imputed interest	(7)
Operating lease liabilities	$ 61	$ 62

Commitments and Contingencies_2

Commitments and Contingencies - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Commitments And Contingencies Disclosure [Line Items]
Lease expense under operating leases	$ 2	$ 2
Operating lease, weighted average remaining lease term	7 years 3 months 18 days
Operating lease, weighted average discount rate (percentage)	3%
Revolving lines of credit
Commitments And Contingencies Disclosure [Line Items]
Unused balance of commercial revolving lines of credit	$ 479
Construction of auto dealership facilities
Commitments And Contingencies Disclosure [Line Items]
Remaining unfunded balance for construction loans	$ 7

Securitizations and Variable _3

Securitizations and Variable Interest Entities (VIE) - Narrative (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Variable Interest Entity [Line Items]
Asset-backed securitization notes issued during period	$ 2,000,000,000	$ 1,500,000,000
Initial receivable principal balance underlying asset-backed securitization notes issued during period	2,200,000,000	1,600,000,000
Net carrying amount of lease assets	27,667,000,000	$ 27,632,000,000	$ 27,378,000,000
Cash to be remitted to trusts	488,000,000		$ 476,000,000
Collateral Pledged
Variable Interest Entity [Line Items]
Net carrying amount of lease assets	$ 0

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	Jun. 30, 2024		Mar. 31, 2024	Jun. 30, 2023	[1]
Assets
Restricted cash	$ 757	[1]	$ 715	$ 505
Other	79		80
Liabilities
Secured debt	$ 9,967		$ 9,351
Restricted Cash and Cash Equivalents, Statement of Financial Position [Extensible Enumeration]	Other assets		Other assets
Variable Interest Entity, Primary Beneficiary
Assets
Securitized assets	$ 10,482		$ 9,796
Restricted cash	757		715
Other	27		25
Liabilities
Secured debt	9,967		9,351
Other	$ 18		$ 17
[1] Restricted cash balances relate to securitization arrangements (Note 9).

Other Assets - Schedule of Othe

Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2024		Mar. 31, 2024	Jun. 30, 2023	[1]
Other Assets [Abstract]
Accrued interest and fees on finance receivables	$ 173		$ 163
Accrued lease payments and fees on operating leases	66		64
Vehicles held for disposition	186		138
Restricted cash	757	[1]	715	$ 505
Operating lease right-of-use assets	52		54
Other miscellaneous assets	79		80
Total	$ 1,313		$ 1,214
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Total		Total
[1] Restricted cash balances relate to securitization arrangements (Note 9).

Other Liabilities - Components

Other Liabilities - Components of Other Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2024	Mar. 31, 2024
Other Liabilities [Line Items]
Dealer payables	$ 222	$ 288
Accrued interest expense	415	317
Accounts payable and accrued expenses	318	334
Lease security deposits	49	50
Unearned income, operating leases	242	250
Operating lease liabilities	61	62
Uncertain tax positions	107	105
Other liabilities	$ 48	$ 49
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Total	Total
Nonrelated Party and Affiliated Entity
Other Liabilities [Line Items]
Total	$ 1,462	$ 1,455

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	Jun. 30, 2024	Mar. 31, 2024
Derivative instruments:
Assets	$ 597	$ 743
Liabilities	1,334	1,472
Interest rate swaps
Derivative instruments:
Assets	565	714
Liabilities	744	881
Cross currency swaps
Derivative instruments:
Assets	32	29
Liabilities	590	591
Level 1
Derivative instruments:
Assets	0	0
Liabilities	0	0
Level 1 | Interest rate swaps
Derivative instruments:
Assets	0	0
Liabilities	0	0
Level 1 | Cross currency swaps
Derivative instruments:
Assets	0	0
Liabilities	0	0
Level 2
Derivative instruments:
Assets	597	743
Liabilities	1,334	1,472
Level 2 | Interest rate swaps
Derivative instruments:
Assets	565	714
Liabilities	744	881
Level 2 | Cross currency swaps
Derivative instruments:
Assets	32	29
Liabilities	590	591
Level 3
Derivative instruments:
Assets	0	0
Liabilities	0	0
Level 3 | Interest rate swaps
Derivative instruments:
Assets	0	0
Liabilities	0	0
Level 3 | Cross currency swaps
Derivative instruments:
Assets	0	0
Liabilities	$ 0	$ 0

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of Nonrecurring Fair Value Measurements (Detail) - USD ($) $ in Millions	Jun. 30, 2024	Jun. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Vehicles held for disposition	$ 136	$ 33
Lower-of-cost or fair value adjustment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Vehicles held for disposition	47	8
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	$ 136	$ 33

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	Jun. 30, 2024	Mar. 31, 2024
Assets
Dealer loans, net	$ 4,223	$ 4,052
Retail loans, net	44,955	43,196
Liabilities
Commercial paper	6,105	5,293
Bank loans	1,795	1,804
Medium-term note programs	31,509	31,151
Other debt	3,429	3,318
Secured debt	9,967	9,351
Fair value
Assets
Dealer loans, net	3,861	3,700
Retail loans, net	44,061	42,280
Liabilities
Commercial paper	6,105	5,293
Bank loans	1,799	1,811
Medium-term note programs	30,764	30,387
Other debt	3,382	3,251
Secured debt	9,962	9,333
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
Liabilities
Commercial paper	6,105	5,293
Bank loans	1,799	1,811
Medium-term note programs	30,764	30,387
Other debt	3,382	3,251
Secured debt	9,962	9,333
Fair value | Level 3
Assets
Dealer loans, net	3,861	3,700
Retail loans, net	44,061	42,280
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	3 Months Ended
	Jun. 30, 2024 USD ($) reportable_segment	Jun. 30, 2023 USD ($)	Mar. 31, 2024 USD ($)
Number of reportable segments
Number of reportable segments | reportable_segment	2
Revenues:
Retail	$ 630	$ 436
Dealer	72	50
Operating leases	1,541	1,537
Total revenues	2,243	2,023
Leased vehicle expenses	1,057	1,110
Interest expense	554	323
Realized (gains)/losses on derivatives and foreign    currency denominated debt	0	0
Net revenues	632	590
Other income, net	40	29
Total net revenues	672	619
Expenses:
General and administrative expenses	132	127
Provision for credit losses	71	79
Early termination loss on operating leases	18	12
Gain on derivative instruments	88	(71)
Loss on foreign currency revaluation of debt	(24)	50
Income before income taxes	387	422
Assets
Finance receivables, net	49,178	40,124	$ 47,248
Investment in operating leases, net	27,667	27,632	27,378
Total assets	80,486	71,229	$ 78,469
Valuation adjustments and reclassifications
Revenues:
Retail	0	0
Dealer	0	0
Operating leases	0	0
Total revenues	0	0
Leased vehicle expenses	0	0
Interest expense	0	0
Realized (gains)/losses on derivatives and foreign    currency denominated debt	(17)	56
Net revenues	17	(56)
Other income, net	0	0
Total net revenues	17	(56)
Expenses:
General and administrative expenses	0	0
Provision for credit losses	0	0
Early termination loss on operating leases	0	0
Gain on derivative instruments	88	(71)
Loss on foreign currency revaluation of debt	(24)	50
Income before income taxes	(47)	(35)
Assets
Finance receivables, net	0	0
Investment in operating leases, net	0	0
Total assets	0	0
United States | Operating Segments
Revenues:
Retail	567	388
Dealer	65	45
Operating leases	1,329	1,297
Total revenues	1,961	1,730
Leased vehicle expenses	897	925
Interest expense	492	269
Realized (gains)/losses on derivatives and foreign    currency denominated debt	26	(40)
Net revenues	546	576
Other income, net	36	25
Total net revenues	582	601
Expenses:
General and administrative expenses	118	114
Provision for credit losses	67	77
Early termination loss on operating leases	18	12
Gain on derivative instruments	0	0
Loss on foreign currency revaluation of debt	0	0
Income before income taxes	379	398
Assets
Finance receivables, net	44,278	35,680
Investment in operating leases, net	24,171	23,723
Total assets	71,790	62,475
Canada | Operating Segments
Revenues:
Retail	63	48
Dealer	7	5
Operating leases	212	240
Total revenues	282	293
Leased vehicle expenses	160	185
Interest expense	62	54
Realized (gains)/losses on derivatives and foreign    currency denominated debt	(9)	(16)
Net revenues	69	70
Other income, net	4	4
Total net revenues	73	74
Expenses:
General and administrative expenses	14	13
Provision for credit losses	4	2
Early termination loss on operating leases	0	0
Gain on derivative instruments	0	0
Loss on foreign currency revaluation of debt	0	0
Income before income taxes	55	59
Assets
Finance receivables, net	4,900	4,444
Investment in operating leases, net	3,496	3,909
Total assets	$ 8,696	$ 8,754