American Honda Finance 10-K 21 Jun 18 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	May 31, 2018
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY
Entity Registrant Name	AMERICAN HONDA FINANCE CORP
Entity Central Index Key	864,270
Current Fiscal Year End Date	--03-31
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float	$ 0
Entity Common Stock, Shares Outstanding		13,660,000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Assets
Cash and cash equivalents	$ 783	$ 760
Finance receivables, net	37,956	35,904
Investment in operating leases, net	31,817	31,310
Due from Parent and affiliated companies	139	228
Income taxes receivable	16	256
Vehicles held for disposition	231	255
Other assets	934	892
Derivative instruments	750	249
Total assets	72,626	69,854
Liabilities and Equity
Debt	47,861	46,227
Due to Parent and affiliated companies	87	91
Accrued interest expense	146	120
Income taxes payable	105
Deferred income taxes	6,035	8,792
Other liabilities	1,382	1,389
Derivative instruments	414	449
Total liabilities	56,030	57,068
Commitments and contingencies (Note 9)
Shareholder’s equity:
Common stock, $100 par value. Authorized 15,000,000 shares; issued and outstanding 13,660,000 shares as of March 31, 2018 and 2017	1,366	1,366
Retained earnings	14,449	10,787
Accumulated other comprehensive loss	(85)	(110)
Total shareholder’s equity	15,730	12,043
Noncontrolling interest in subsidiary	866	743
Total equity	16,596	12,786
Total liabilities and equity	72,626	69,854
Consolidated variable interest entities
Assets
Finance receivables, net	8,895	8,512
Vehicles held for disposition	4	3
Other assets	452	367
Total assets	9,351	8,882
Liabilities and Equity
Secured debt	8,733	8,422
Accrued interest expense	6	4
Total liabilities	$ 8,739	$ 8,426

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Mar. 31, 2017
Statement Of Financial Position [Abstract]
Common stock, par value	$ 100	$ 100
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	13,660,000	13,660,000
Common stock, shares outstanding	13,660,000	13,660,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Direct financing leases	$ 13	$ 34	$ 72
Retail	1,369	1,188	1,185
Dealer	175	147	122
Operating leases	6,890	6,333	5,523
Total revenues	8,447	7,702	6,902
Depreciation on operating leases	5,481	5,056	4,421
Interest expense	897	728	592
Net revenues	2,069	1,918	1,889
Gain on disposition of lease vehicles	93	43	51
Other income	56	105	97
Total net revenues	2,218	2,066	2,037
Expenses:
General and administrative expenses	439	434	403
Provision for credit losses	244	210	150
Early termination loss on operating leases	108	73	46
Impairment loss on operating leases	0	0	8
Loss on lease residual values	3	15	13
(Gain)/Loss on derivative instruments	(550)	315	(101)
(Gain)/Loss on foreign currency revaluation of debt	494	(171)	60
Total expenses	738	876	579
Income before income taxes	1,480	1,190	1,458
Income tax expense/(benefit)	(2,629)	437	548
Net income	4,109	753	910
Less: Net income attributable to noncontrolling interest	100	70	54
Net income attributable to American Honda Finance Corporation	$ 4,009	$ 683	$ 856

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 4,109	$ 753	$ 910
Other comprehensive income/(loss):
Foreign currency translation adjustment	48	(35)	(32)
Comprehensive income	4,157	718	878
Less: Comprehensive income attributable to noncontrolling interest	123	53	39
Comprehensive income attributable to American Honda Finance Corporation	$ 4,034	$ 665	$ 839

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - USD ($) $ in Millions	Total	Retained earnings	Accumulated other comprehensive income/(loss)	Common stock	Noncontrolling interest
Balance at Mar. 31, 2015	$ 11,190	$ 9,248	$ (75)	$ 1,366	$ 651
Net income	910	856	0	0	54
Other comprehensive income (loss)	(32)	0	(17)	0	(15)
Balance at Mar. 31, 2016	12,068	10,104	(92)	1,366	690
Net income	753	683	0	0	70
Other comprehensive income (loss)	(35)	0	(18)	0	(17)
Balance at Mar. 31, 2017	12,786	10,787	(110)	1,366	743
Net income	4,109	4,009	0	0	100
Other comprehensive income (loss)	48	0	25	0	23
Dividends paid	(347)	(347)	0	0	0
Balance at Mar. 31, 2018	$ 16,596	$ 14,449	$ (85)	$ 1,366	$ 866

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 4,109	$ 753	$ 910
Adjustments to reconcile net income to net cash provided by operating activities:
Debt and derivative instrument valuation adjustments	(42)	161	(186)
Loss on lease residual values and provision for credit losses	247	225	163
Early termination loss on operating leases and impairment on operating leases	108	73	54
Depreciation and amortization	5,491	5,063	4,426
Accretion of unearned subsidy income	(1,451)	(1,243)	(1,089)
Amortization of deferred dealer participation and other deferred costs	318	315	316
Gain on disposition of lease vehicles and fixed assets	(93)	(43)	(51)
Deferred income taxes	(2,768)	688	969
Changes in operating assets and liabilities:
Income taxes receivable/payable	349	257	(449)
Other assets	(43)	(72)	(7)
Accrued interest/discounts on debt	69	54	44
Other liabilities	96	124	81
Due to/from Parent and affiliated companies	88	(85)	(19)
Net cash provided by operating activities	6,478	6,270	5,162
Cash flows from investing activities:
Finance receivables acquired	(17,971)	(16,761)	(14,285)
Principal collected on finance receivables	15,732	16,140	16,947
Net change in wholesale loans	(337)	(197)	(467)
Purchase of operating lease vehicles	(14,268)	(15,949)	(15,445)
Disposal of operating lease vehicles	8,304	7,364	6,765
Cash received for unearned subsidy income	1,676	1,593	1,281
Other investing activities, net	(130)	(79)	(49)
Net cash used in investing activities	(6,994)	(7,889)	(5,253)
Cash flows from financing activities:
Proceeds from issuance of commercial paper	36,190	41,162	36,995
Paydown of commercial paper	(35,520)	(41,303)	(36,916)
Proceeds from issuance of short-term debt	381	0	0
Paydown of short-term debt	(325)	0	0
Proceeds from issuance of related party debt	4,135	12,514	19,491
Paydown of related party debt	(4,294)	(13,567)	(20,657)
Proceeds from issuance of medium term notes and other debt	7,238	10,488	7,951
Paydown of medium term notes and other debt	(7,174)	(8,411)	(6,948)
Proceeds from issuance of secured debt	5,149	5,708	4,500
Paydown of secured debt	(4,901)	(4,868)	(4,283)
Dividends paid	(347)	0	0
Net cash provided by financing activities	532	1,723	133
Effect of exchange rate changes on cash and cash equivalents	7	(2)	(18)
Net increase in cash and cash equivalents	23	102	24
Cash and cash equivalents at beginning of year	760	658	634
Cash and cash equivalents at end of year	783	760	658
Supplemental disclosures of cash flow information:
Interest paid	826	674	536
Income taxes paid/(received)	$ (206)	$ (508)	$ 32

Summary of Business and Signifi

Summary of Business and Significant Accounting Policies	12 Months Ended
	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Summary of Business and Significant Accounting Policies	(1) Summary of Business and Significant Accounting Policies American Honda Finance Corporation (AHFC) is a wholly-owned subsidiary of American Honda Motor Co., Inc. (AHM or the Parent). Honda Canada Finance Inc. (HCFI) is a majority-owned subsidiary of AHFC. Noncontrolling interest in HCFI is held by Honda Canada Inc. (HCI), an affiliate of AHFC. AHM is a wholly-owned subsidiary and HCI is an indirect wholly-owned subsidiary of Honda Motor Co., Ltd. (HMC). AHM and HCI are the sole authorized distributors of Honda and Acura products, including motor vehicles, parts, and accessories in the United States and Canada. Unless otherwise indicated by the context, all references to the “Company” include AHFC and its consolidated subsidiaries (refer Note 1(b) Principles of Consolidation The Company provides various forms of financing to authorized independent dealers of Honda and Acura products and their customers in the United States and Canada. The Company also finances a limited number of vehicles other than Honda and Acura products. The Company’s financing products include the following categories: Retail Loans – The Company acquires retail installment contracts from dealers who originate the contracts with consumers. Retail loans are collateralized by liens on the related vehicles or equipment. Retail loan terms range primarily from two to six years. Retail Leases – The Company acquires closed-end vehicle lease contracts between dealers and their customers. The dealer assigns all of its rights, title, and interest in the lease and motor vehicle to the Company upon acquisition. Lease terms range primarily from two to five years. Dealer Loans – The Company provides wholesale and commercial loans to dealers. Wholesale loans are used by dealers to finance the purchase of inventory. The Company retains purchase money security interest in all inventory financed; however, the Company has no right to recover a product sold to consumers in the ordinary course of business. The Company has agreements with AHM and HCI, which provide for their repurchase of new, unused, and unregistered vehicles or equipment that have been repossessed from a dealer who defaults on a wholesale loan. Commercial loans are used primarily for financing dealership property and working capital purposes. Commercial loans are generally secured by the associated properties, as well as corporate or personal guarantees from, or on behalf of, the related dealer’s principals. The Company’s finance receivables and investment in operating leases are geographically diversified throughout the United States and Canada. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated balance sheets and revenues and expenses for the applicable periods. Those estimates include, among other things, the residual value estimates of lease vehicles and estimates for the allowances for credit losses and early termination losses on operating leases. Actual results could differ significantly from these estimates. (a) Business Risks The Company’s business is substantially dependent upon the sale of Honda and Acura products. The financing business is also highly competitive. The Company’s competitors and potential competitors include national, regional, and local finance companies and other types of financial services companies, such as commercial banks, savings and loan associations, leasing companies, and credit unions. The Company’s future profitability will be largely dependent upon its ability to provide cost-competitive, quality financial products and services to its customers and to the availability and cost of its capital in relation to that of its competitors. The Company’s liquidity is largely dependent on access to credit markets. The Company has been able to meet funding needs through diversified funding sources. Higher than expected credit losses and lower than anticipated lease residual values due to prolonged periods of negative economic and market conditions can adversely affect the Company’s financial position, results of operations, and related cash flows. The Company manages these risks with purchasing and residual value setting standards, collection efforts, and lease remarketing programs. Refer to Note 1(g) for additional discussion on the allowance for credit losses and Note 1(h) for additional discussion on the determination of lease residual values. The Company is exposed to market risks, principally interest rate and foreign currency risks, and utilizes derivative instruments to manage those risks. Although the use of derivative instruments mitigates a substantial portion of these risks, not all risk is eliminated. Refer to Note 1(n) for additional discussion on derivative instruments. (b) Principles of Consolidation The consolidated financial statements include the accounts of AHFC and its subsidiaries. All subsidiaries are wholly-owned, except for HCFI, which is majority-owned (52.33% as of March 31, 2018 and 2017). The Company also consolidates variable interest entities (VIEs) where the Company is the primary beneficiary. All consolidated VIEs are statutory trusts formed by the Company to accommodate securitization structures. In April 2017, the Company sold all issued and outstanding common stock of its wholly-owned subsidiary American Honda Service Contract Corporation (AHSCC) to AHM for an amount equal to AHSCC’s total equity as of March 31, 2017. AHSCC was not material to the Company’s operations. All significant intercompany balances and transactions have been eliminated upon consolidation. (c) Comprehensive Income Comprehensive income consists of net income and the effect of foreign currency translation adjustments and is presented in the consolidated statements of comprehensive income. (d) Cash and Cash Equivalents Cash and cash equivalents include cash on hand and short-term, highly liquid investments with original maturities of three months or less. (e) Finance Receivables Finance receivables include retail loan, direct financing lease, and dealer loan portfolio segments. The retail loan portfolio segment consists of retail installment contracts with consumers. The direct financing lease portfolio segment consists of closed-end vehicle lease contracts with consumers. The dealer loan portfolio segment consists of wholesale and commercial loans with dealers. Finance receivables are classified as held-for-investment if the Company has the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. As of March 31, 2018 and 2017, all finance receivables were classified as held-for-investment and reported at amortized cost. Retail and dealer loans include the outstanding principal balance, allowance for credit losses, unearned origination fees, and deferred origination costs. Direct financing leases include the gross receivable balances, unearned interest income, write-down of lease residual values, allowance for credit losses, unearned origination fees, and deferred origination costs. Origination fees include payments received from AHM and HCI for incentive programs (refer to Note 6 regarding these related party transactions). For a limited number of contracts, origination fees include payments received from dealers to buy down the interest rates charged to their customers. Origination costs include initial direct origination costs (IDC) and payments made to dealers for rate participation. Revenue on finance receivables includes contractual interest income, accretion of origination fees, and amortization of origination costs. Interest income on retail and dealer loans is accrued as earned using the simple interest method. Unearned interest income on direct financing leases is recognized as finance revenue over the term of the lease using the interest method. Origination fees and costs are recognized as revenue using the interest method over the contractual life of the finance receivables. The recognition of finance revenue on retail loans and leases is discontinued when the underlying collateral is repossessed or accounts are charged off. The recognition of finance revenue on dealer loans is discontinued when it has been determined the Company will be unable to collect all principal and interest payments. Retail loans and leases 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 contractual balance of retail loans and leases, including accrued interest and fees, are automatically charged off when they become 120 days past due or earlier if they have been specifically identified as uncollectible. Dealer loans are charged off when they have been individually identified as uncollectible. Charge-offs of loan and lease balances, including uncollected interest and fees, are recognized as a reduction to the allowance for credit losses. Subsequent recoveries of amounts previously charged off are credited to the allowance. (f) Investment in Operating Leases The investment in operating leases is reported at cost, less accumulated depreciation and net of unearned origination fees and deferred origination costs. Origination fees include payments received from AHM for incentive programs (refer to Note 6 regarding these related party transactions). For a limited number of contracts, origination fees include payments received from dealers to buy down the rental charges. Origination costs include payments made for dealer participation. Operating lease revenue is recognized on a straight-line basis over the lease term. Operating lease revenue includes accretion of origination fees and is net of amortization of origination costs, which are also recognized on a straight-line basis over the lease term. Operating lease vehicles are depreciated on a straight-line basis over the lease term to the estimated residual value. Refer to Note 1(h) regarding the determination of lease residual values. A portion of the Company’s operating leases is expected to terminate prior to their scheduled maturities when lessees default on their contractual obligations. Losses are generally realized upon the disposition of the repossessed operating lease vehicles. The methodologies used to determine the estimated losses are similar to the methodologies used to determine the allowance for credit losses on consumer finance receivables. Operating leases are collectively evaluated to determine the estimated losses incurred. Estimated early termination losses are recognized as a reduction to the carrying value of operating lease assets. A review for impairment of the Company’s operating lease assets is performed whenever events or changes in circumstances indicate that the carrying values may not be recoverable. Generally, an impairment condition is determined to exist if estimated undiscounted cash flows from the use and eventual disposition of the asset is lower than the carrying value. For the purposes of testing for impairment, operating lease assets are grouped at the lowest level the Company can reasonably estimate cash flows. When impairment conditions are met, impairment losses are measured by the amount carrying values exceed their fair values. (g) Allowance for Credit Losses The allowance for credit losses is management’s estimate of probable losses incurred on finance receivables and is evaluated, at minimum, on a quarterly basis. The retail loan and direct financing lease portfolio segments consist primarily of pools of homogeneous loans and leases with relatively small balances, which are collectively evaluated for impairment. Dealer loans are individually evaluated for impairment when specifically identified as impaired. Dealer loans that have not been specifically identified as impaired are collectively evaluated. An allowance for credit losses is also maintained for estimated probable losses incurred on past due operating lease rental payments. (h) Determination of Lease Residual Values Contractual residual values of lease vehicles are determined at lease inception based on expectations of end of term used vehicle values, taking into consideration external industry data and the Company’s own historical experience. Lease customers have the option at the end of the lease term to return the vehicle to the dealer or to buy the vehicle for the contractual residual value (or if purchased prior to lease maturity, for the outstanding contractual balance). Returned lease vehicles can be purchased by the grounding dealer for the contractual residual value (or if purchased prior to lease maturity, for the outstanding contractual balance) or a market based price. Returned lease vehicles that are not purchased by the grounding dealers are sold through online and physical auctions. The Company is exposed to risk of loss on the disposition of returned lease vehicles when the proceeds from the sale of the vehicles are less than the contractual residual values at the end of lease term. The Company assesses the estimated end of term market values of the lease vehicles, at minimum, on a quarterly basis. The primary factors affecting the estimates are the percentage of leased vehicles the Company expects to be returned by the lessee at the end of lease term and expected loss severities. Factors considered in this evaluation include, among other factors, economic conditions, historical trends, and market information on new and used vehicles. For operating leases, adjustments to the estimated residual values are made on a straight-line basis over the remaining term of the lease and recognized as depreciation expense. For direct financing leases, downward adjustments for declines in estimated residual values deemed other-than-temporary are recognized as a loss in the period in which the estimate changed. (i) Vehicles Held for Disposition Vehicles held for disposition consist of returned and repossessed vehicles. The vehicles are either sold at used vehicle auctions or purchased by dealers, usually within two months of return or repossession. The vehicles are valued at the lower of their carrying value or estimated fair value, less estimated disposition costs. For returned vehicles, valuation adjustments are recorded as a charge against the gain/loss on disposition of lease vehicles. Valuation adjustments made for repossessed collateral of finance receivables and operating leases are recognized as charges to the allowance for credit loss and estimated early termination losses on operating leases, respectively. (j) Vehicle Service Contract Administration AHFC performs administrative services for vehicle service contracts (VSC) issued by AHM and its subsidiary, American Honda Protection Products Corporation. AHFC receives fees for performing the services when the contracts are acquired, which is recognized in other income over the lives of the underlying contracts, proportionate to the anticipated amount of service to be performed. HCFI performs marketing services for vehicle service contracts issued by HCI. HCFI receives fees as the services are performed, which is recognized in other income. (k) Securitizations and Variable Interest Entities The Company enters into securitization transactions for funding purposes. Securitization transactions involve transferring pools of the Company’s retail loans to statutory trusts. The trusts are special purpose entities formed by the Company to accommodate securitization structures. Securitization trusts have the limited purpose of acquiring assets, issuing asset-backed securities, and making payments on the securities. Assets transferred to securitization trusts are considered legally isolated from the Company and the claims of the Company’s creditors. The Company continues to service the retail loans transferred to the trusts. Investors in the notes issued by the trusts only have recourse to the assets of the trusts and do not have recourse to the general credit of the Company. The Company’s securitizations are structured to provide credit enhancements to investors in notes issued by the trusts. Credit enhancements can include the following: Subordinated certificates – Securities issued by the trusts, which are retained by the Company and are subordinated in priority of payment to the notes. Overcollateralization – Principal balance of securitized assets exceed the balance of securities issued by the trust. Excess interest – Excess interest collections can be used to cover losses on defaulted loans. Reserve funds – Restricted cash accounts held by the trusts to cover shortfalls in payments of interest and principal required to be paid on the notes. Yield supplement accounts – Restricted cash accounts held by the trusts to supplement interest payments on notes. The risk retention regulations in Regulation RR of the Securities Exchange Act of 1934, as amended, require the sponsor to retain an economic interest in the credit risk of the securitized receivables, either directly or through one or more majority-owned affiliates. Standard risk retention options allow the sponsor to retain either an eligible vertical interest, an eligible horizontal residual interest, or a combination of both. The Company has satisfied this obligation by retaining an eligible vertical interest of an amount equal to at least 5% of the principal amount of each class of note and certificate issued for the securitization transaction that was subject to this rule but may choose to use other structures in the future. The securitization trusts formed by the Company are VIEs, which are required to be consolidated by their primary beneficiary. The Company is considered to be the primary beneficiary of these trusts due to (i) the power to direct the activities of the trusts that most significantly impact the trusts’ economic performance through its role as servicer, and (ii) the obligation to absorb losses or the right to receive residual returns that could potentially be significant to the trusts through the subordinated certificates and residual interest retained. Consolidation of these trusts results in the securitization transactions being accounted for as on-balance sheet secured financings. The securitized receivables remain on the consolidated balance sheet of the Company along with the notes issued by the trusts. The notes are secured solely by the assets of the trusts and not by any other assets of the Company. The assets of the trusts are the only source of funds for repayment on the notes. Restricted cash accounts held by the trusts can only be used to support payments on the notes. The restricted cash accounts are included in the Company’s consolidated balance sheet in other assets. Company recognizes finance revenue and provisions for credit losses on the securitized receivables and interest expense on the related secured debt. (l) Income Taxes The Company’s U.S. entities are included in the consolidated U.S. federal and many consolidated or combined state and local income tax returns of the Parent, though in some cases the Company files separately as required by certain state and local jurisdictions. The Company provides its share of the consolidated or combined income tax on a modified separate return basis pursuant to an intercompany income tax allocation agreement that it has entered into with the Parent. The Company files a separate California return based on California’s worldwide income and apportionment rules. To the extent the Company’s U.S. entities have taxable losses in its consolidated federal, and consolidated or combined state and local tax returns, a benefit will be recognized to the extent that it is more likely than not that these losses will be utilized by the consolidated or combined return group in the current or future year and thus would be subject to current or future reimbursement by the Parent under the terms of the intercompany income tax allocation agreement. To the extent such losses are attributable to a state where the Company files a separate return, a benefit for such losses would be recognized to the extent such losses are more likely than not to be utilized in the future. All but an insignificant amount of the federal and state taxes payable or receivable shown on the consolidated balance sheets are due to or from the Parent, pursuant to the intercompany income tax allocation agreement. The Company’s Canadian subsidiary, HCFI, files Canadian federal and provincial income tax returns based on the separate legal entity financial statements. HCFI does not file U.S. federal, state, or local income tax returns. Consequently, HCFI does not participate in the intercompany income tax allocation agreement that the Company has with the Parent. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income during the period in which the enactment date occurs. A valuation allowance is provided to offset deferred tax assets if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In addition, tax benefits related to positions considered uncertain are recognized only if, based on the technical merits of the issue, the Company believes that it is more likely than not to sustain the position and then at the largest amount that is greater than 50% likely to be realized upon settlement. (m) Foreign Currency Translation Upon consolidation, the assets and liabilities of HCFI are translated at year-end exchange rates, and the revenues and expenses are translated at the average rates of exchange during the respective years. The resulting translation adjustment is included in other comprehensive income and the cumulative translation adjustment is reported as a separate component of equity in accumulated other comprehensive income and noncontrolling interest. Foreign currency denominated debt is translated at year-end exchange rates, and the foreign currency transaction gains and losses are recognized through earnings. (n) Derivative Instruments The Company utilizes derivative instruments to manage exposures to interest rate and foreign currency risks. The Company’s assets consist primarily of fixed rate receivables and operating lease assets. The Company’s liabilities consist of both floating and fixed rate debt, denominated in various currencies. Interest rate and basis swaps are used to match the interest rate characteristics of the Company’s assets and debt. Currency swaps are used to manage currency risk exposure on foreign currency denominated debt. Derivative instruments are not used for trading or any other speculative purposes. All derivative financial instruments are recorded on the consolidated balance sheets at fair value. The Company elects to present derivative instruments in the Company’s consolidated balance sheets on a gross basis rather than on a net basis by counterparty. Refer to Note 5 for additional information. Except in very limited circumstances involving counterparties with consolidated securitization trusts, AHFC generally has not entered into credit support (collateral) agreements with its counterparties. Changes in the fair value of derivatives are recognized in earnings in the period of the change. In Canada, HCFI is a party to credit support agreements that require posting of cash collateral to mitigate credit risk on derivative positions. (o) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). Revenue Recognition In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases Notes to Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,

Finance Receivables

Finance Receivables	12 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Finance Receivables	(2) Finance Receivables Finance receivables consisted of the following: March 31, 2018 Lease Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 154 $ 33,140 $ 5,495 $ 38,789 Allowance for credit losses — (179 ) — (179 ) Write-down of lease residual values (9 ) — — (9 ) Unearned interest income and fees (2 ) — — (2 ) Deferred dealer participation and other deferred costs — 396 — 396 Unearned subsidy income (2 ) (1,037 ) — (1,039 ) Finance receivables, net $ 141 $ 32,320 $ 5,495 $ 37,956 March 31, 2017 Lease Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 410 $ 31,103 $ 5,006 $ 36,519 Allowance for credit losses (1 ) (132 ) — (133 ) Write-down of lease residual values (16 ) — — (16 ) Unearned interest income and fees (8 ) — — (8 ) Deferred dealer participation and other deferred costs — 371 — 371 Unearned subsidy income (10 ) (819 ) — (829 ) Finance receivables, net $ 375 $ 30,523 $ 5,006 $ 35,904 Finance receivables include retail loans with a principal balance of $9.1 billion and $8.6 billion as of March 31, 2018 and 2017, respectively, which have been transferred to securitization trusts and are considered to be legally isolated but do not qualify for sale accounting treatment. These finance receivables are restricted as collateral for the payment of the related secured debt obligations. Refer to Note 10 for additional information. Contractual maturities of direct financing lease and retail loans at March 31, 2018 were as follows: Lease Retail (U.S. dollars in millions) Year ending March 31: 2019 $ 104 $ 9,520 2020 50 8,123 2021 — 6,651 2022 — 4,963 2023 — 2,900 Thereafter — 983 Total $ 154 $ 33,140 It is the Company’s experience that a portion of the finance receivable portfolio generally is repaid before contractual maturity dates. Aggregate contractual maturities, as shown above for direct financing lease and retail finance receivables, should not be regarded as a forecast of future cash collections. The uninsured portions of the direct financing lease residual values were $35 million and $78 million at March 31, 2018 and 2017, respectively. Included in the gain or loss on disposition of lease vehicles are end of term charges on both direct financing and operating leases of $63 million, $42 million and $27 million for the fiscal years ended March 31, 2018, 2017 and 2016, respectively. Credit Quality of Financing Receivables Credit losses are an expected cost of extending credit. The majority of the credit risk is with consumer financing and to a lesser extent with dealer financing. Credit risk can be affected by general economic conditions. Adverse changes such as a rise in unemployment can increase the likelihood of defaults. Declines in used vehicle prices can reduce the amount of recoveries on repossessed collateral. Credit risk on dealer loans is affected primarily by the financial strength of the dealers within the portfolio. Exposure to credit risk is managed through purchasing standards, pricing of contracts for expected losses, focusing collection efforts to minimize losses, and ongoing reviews of the financial condition of dealers. Allowance for Credit Losses The allowance for credit losses is management’s estimate of probable losses incurred on finance receivables, which requires significant judgment and assumptions that are inherently uncertain. The allowance is based on management’s evaluation of many factors, including the Company’s historical credit loss experience, the value of the underlying collateral, delinquency trends, and economic conditions. Consumer finance receivables in the retail loan and direct financing lease portfolio segments are collectively evaluated for impairment. Delinquencies and losses are monitored on an ongoing basis and the historical experience provides the primary basis for estimating the allowance. Management utilizes various methodologies when estimating the allowance for credit losses, including models which incorporate vintage loss and delinquency migration analysis. These models take into consideration attributes of the portfolio including loan-to-value ratios, internal and external credit scores, collateral types, and loan terms. Market and economic factors such as used vehicle prices, unemployment, and consumer debt service burdens are also incorporated into these models. Dealer loans are individually evaluated for impairment when specifically identified as impaired. Dealer loans are considered impaired when it is probable that the Company will be unable to collect all amounts due according to the terms of the contract. The Company’s determination of whether dealer loans are impaired is based on evaluations of dealership payment history, financial condition, and ability to perform under the terms of the loan agreements. Dealer loans that have not been specifically identified as impaired are collectively evaluated for impairment. There were no modifications to dealer loans that constituted troubled debt restructurings during the fiscal years ended March 31, 2018, 2017 and 2016. The Company generally does not grant concessions on consumer finance receivables that are considered troubled debt restructurings other than modifications of retail loans in reorganization proceedings pursuant to the U.S. Bankruptcy Code. Retail loans modified under bankruptcy protection were not material to the Company’s consolidated financial statements during the fiscal years ended March 31, 2018, 2017 and 2016. The Company does allow payment deferrals on consumer finance receivables. However, these payment deferrals are not considered troubled debt restructurings since the deferrals are deemed insignificant and interest continues to accrue during the deferral period. The following is a summary of the activity in the allowance for credit losses of finance receivables, excluding the provisions related to past due operating leases: Year ended March 31, 2018 Lease Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 1 $ 132 $ — $ 133 Provision — 211 2 213 Charge-offs (1 ) (243 ) (2 ) (246 ) Recoveries — 79 — 79 Effect of translation adjustment — — — — Ending balance $ — $ 179 $ — $ 179 Allowance for credit losses – ending balance: Individually evaluated for impairment $ — $ — $ — $ — Collectively evaluated for impairment — 179 — 179 Finance receivables – ending balance: Individually evaluated for impairment $ — $ — $ 128 $ 128 Collectively evaluated for impairment 150 32,499 5,367 38,016 Year ended March 31, 2017 Lease Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 2 $ 91 $ — $ 93 Provision 1 186 — 187 Charge-offs (2 ) (224 ) — (226 ) Recoveries — 79 — 79 Effect of translation adjustment — — — — Ending balance $ 1 $ 132 $ — $ 133 Allowance for credit losses – ending balance: Individually evaluated for impairment $ — $ — $ — $ — Collectively evaluated for impairment 1 132 — 133 Finance receivables – ending balance: Individually evaluated for impairment $ — $ — $ 1 $ 1 Collectively evaluated for impairment 392 30,655 5,005 36,052 Year ended March 31, 2016 Lease Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 2 $ 84 $ — $ 86 Provision 3 129 (1 ) 131 Charge-offs (4 ) (196 ) — (200 ) Recoveries 1 74 1 76 Effect of translation adjustment — — — — Ending balance $ 2 $ 91 $ — $ 93 Allowance for credit losses – ending balance: Individually evaluated for impairment $ — $ — $ — $ — Collectively evaluated for impairment 2 91 — 93 Finance receivables – ending balance: Individually evaluated for impairment $ — $ — $ 1 $ 1 Collectively evaluated for impairment 953 30,178 4,770 35,901 Delinquencies The following is an aging analysis of past due finance receivables: 90 days Current or Total 30 – 59 days 60 – 89 days or greater Total less than 30 finance past due past due past due past due days receivables (U.S. dollars in millions) March 31, 2018 Retail loans: New auto $ 188 $ 35 $ 10 $ 233 $ 27,034 $ 27,267 Used and certified auto 59 11 2 72 3,967 4,039 Motorcycle and other 10 3 2 15 1,178 1,193 Total retail 257 49 14 320 32,179 32,499 Direct financing leases 2 — — 2 148 150 Dealer loans: Wholesale flooring 2 1 2 5 4,447 4,452 Commercial loans — — — — 1,043 1,043 Total dealer loans 2 1 2 5 5,490 5,495 Total finance receivables $ 261 $ 50 $ 16 $ 327 $ 37,817 $ 38,144 March 31, 2017 Retail loans: New auto $ 162 $ 26 $ 7 $ 195 $ 25,785 $ 25,980 Used and certified auto 48 8 2 58 3,474 3,532 Motorcycle and other 10 3 2 15 1,128 1,143 Total retail 220 37 11 268 30,387 30,655 Direct financing leases 3 2 — 5 387 392 Dealer loans: Wholesale flooring 2 — — 2 4,098 4,100 Commercial loans — — — — 906 906 Total dealer loans 2 — — 2 5,004 5,006 Total finance receivables $ 225 $ 39 $ 11 $ 275 $ 35,778 $ 36,053 Credit Quality Indicators Retail Loan and Direct Financing Lease Portfolio Segments The Company utilizes proprietary credit scoring systems to evaluate the credit risk of applicants for retail loans and leases. The scoring systems assign internal credit scores based on various factors including the applicant’s credit bureau information and contract terms. The internal credit score provides the primary basis for credit decisions when acquiring retail loan and lease contracts. Internal credit scores are determined only at the time of origination and are not reassessed during the life of the contract. Subsequent to origination, collection experience provides a current indication of the credit quality of consumer finance receivables. The likelihood of accounts charging off is significantly higher once an account becomes 60 days delinquent. Accounts that are current or less than 60 days past due are considered to be performing. Accounts that are 60 days or more past due are considered to be nonperforming. The table below presents the Company’s portfolio of retail loans and direct financing leases by this credit quality indicator: Retail Retail Direct Total consumer Retail used and motorcycle financing finance new auto certified auto and other lease receivables (U.S. dollars in millions) March 31, 2018 Performing $ 27,222 $ 4,026 $ 1,188 $ 150 $ 32,586 Nonperforming 45 13 5 — 63 Total $ 27,267 $ 4,039 $ 1,193 $ 150 $ 32,649 March 31, 2017 Performing $ 25,947 $ 3,522 $ 1,138 $ 390 $ 30,997 Nonperforming 33 10 5 2 50 Total $ 25,980 $ 3,532 $ 1,143 $ 392 $ 31,047 Dealer Loan Portfolio Segment The Company utilizes an internal risk rating system to evaluate dealer credit risk. Dealerships are assigned an internal risk rating based on an assessment of their financial condition. Factors including liquidity, financial strength, management effectiveness, and operating efficiency are evaluated when assessing their financial condition. Financing limits and interest rates are determined from 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. The Company’s outstanding portfolio of dealer loans has been divided into two groups in the tables below. Group A includes the loans of dealerships with the strongest internal risk rating. Group B includes the loans of all remaining dealers. Although the likelihood of losses can be higher for dealerships in Group B, the overall risk of losses is not considered significant. March 31, 2018 2017 Wholesale Commercial Wholesale Commercial flooring loans Total flooring loans Total (U.S. dollars in millions) Group A $ 2,791 $ 684 $ 3,475 $ 2,689 $ 628 $ 3,317 Group B 1,661 359 2,020 1,411 278 1,689 Total $ 4,452 $ 1,043 $ 5,495 $ 4,100 $ 906 $ 5,006

Investment in Operating Leases

Investment in Operating Leases	12 Months Ended
	Mar. 31, 2018
Leases Operating [Abstract]
Investment in Operating Leases	(3) Investment in Operating Leases Investment in operating leases consisted of the following: March 31, 2018 2017 (U.S. dollars in millions) Operating lease vehicles $ 41,285 $ 39,684 Accumulated depreciation (8,169 ) (7,136 ) Deferred dealer participation and other deferred costs 117 118 Unearned subsidy income (1,317 ) (1,285 ) Estimated early termination losses (99 ) (71 ) Investment in operating leases, net $ 31,817 $ 31,310 The Company recognized $108 million, $73 million and $46 million of estimated early termination losses due to lessee defaults for the fiscal years ended March 31, 2018, 2017 and 2016, respectively. Actual net losses realized for the fiscal years ended March 31, 2018, 2017 and 2016 totaled $80 million, $62 million and $44 million, respectively. Included in the provision for credit losses for the fiscal years ended March 31, 2018, 2017 and 2016 are provisions related to past due receivables on operating leases in the amounts of $31 million, $23 million and $19 million, respectively. Certain Honda and Acura vehicles were recalled during the fourth quarter of the fiscal year ended March 31, 2016 based on a determination of a safety related defect in driver’s airbag inflators. AHM and HCI instructed their authorized dealers to cease the sale of affected new and used vehicles until the recall repairs are completed. Tests for recoverability were performed on operating leases affected by this recall, which reflected the anticipated delays in the disposition of returned lease vehicles. For the operating lease assets that did not pass the test for recoverability, the Company recognized $8 million of impairment losses for the fiscal year ended March 31, 2016. No impairment losses due to declines in estimated residual values were recognized during the fiscal years ended March 31, 2018 and 2017. Future minimum rental payments for operating leases at March 31, 2018 were as follows (U.S. dollars in millions): Year ending March 31: 2019 $ 5,342 2020 3,358 2021 1,290 2022 224 2023 40 Total $ 10,254 Based on the Company’s leasing experience, it is expected that a portion of the Company’s operating lease vehicles will be purchased by the lessee prior to the scheduled lease term. Future minimum rental payments, as shown above, should not be regarded as a forecast of future cash collections.

Debt

Debt	12 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Debt	(4) 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 contractual interest rate interest rate ranges March 31, March 31, March 31, 2018 2017 2018 2017 2018 2017 (U.S. dollars in millions) Unsecured debt: Commercial paper $ 5,167 $ 4,462 1.86 % 0.99 % 1.07 - 2.21% 0.78 - 1.15% Related party debt 1,085 1,201 1.64 % 0.95 % 1.43 - 1.72% 0.93 - 0.96% Bank loans 5,419 5,883 2.48 % 1.65 % 2.02 - 3.15% 1.28 - 2.00% Private MTN program 1,698 2,946 5.40 % 3.77 % 3.80 - 7.63% 1.50 - 7.63% Public MTN program 21,398 19,491 1.92 % 1.63 % 0.07 - 3.50% 0.07 - 2.90% Euro MTN programme 1,111 1,086 1.95 % 1.83 % 1.88 - 2.33% 1.52 - 2.23% Other debt 3,250 2,736 2.20 % 1.90 % 1.63 - 2.76% 1.28 - 2.35% Total unsecured debt 39,128 37,805 Secured debt 8,733 8,422 1.74 % 1.24 % 1.04 - 2.83% 0.77 - 2.05% Total debt $ 47,861 $ 46,227 As of March 31, 2018, the outstanding principal balance of long-term debt with floating interest rates totaled $13.2 billion, long-term debt with fixed interest rates totaled $27.8 billion, and short-term debt totaled $7.0 billion. As of March 31, 2017, the outstanding principal balance of long-term debt with floating interest rates totaled $12.2 billion, long-term debt with fixed interest rates totaled $27.9 billion, and short-term debt totaled $6.2 billion. The Company’s secured debt is amortizing and unsecured debt is non-amortizing. Scheduled and projected maturities of the Company’s debt at March 31, 2018 are summarized below: 2019 2020 2021 2022 2023 Thereafter Total (U.S. dollars in millions) Unsecured debt: Commercial paper $ 5,178 $ — $ — $ — $ — $ — $ 5,178 Related party debt 1,085 — — — — — 1,085 Bank loans 771 1,494 1,078 1,310 697 78 5,428 Private MTN program 700 — 500 500 — — 1,700 Public MTN program 6,116 4,700 3,100 2,791 2,630 2,116 21,453 Euro MTN programme 160 924 — — 28 — 1,112 Other debt 659 465 892 310 930 — 3,256 Total unsecured debt 14,669 7,583 5,570 4,911 4,285 2,194 39,212 Secured debt (1) 4,660 2,604 1,193 240 48 — 8,745 Total debt (2) $ 19,329 $ 10,187 $ 6,763 $ 5,151 $ 4,333 $ 2,194 47,957 Unamortized discounts/fees (96 ) Total debt $ 47,861 (1) Projected repayment schedule of secured debt. Reflects payment performance assumptions on underlying receivables. (2) Principal amounts. Commercial Paper As of March 31, 2018 and 2017, the Company had commercial paper programs that provide the Company with available funds of up to $8.6 billion and $8.5 billion, respectively, at prevailing market interest rates for terms up to one year. The commercial paper programs are supported by the Keep Well Agreements with HMC described in Note 6. Outstanding commercial paper averaged $5.6 billion and $5.8 billion during fiscal years 2018 and 2017, respectively. The maximum balance outstanding at any month-end during fiscal years 2018 and 2017 was $6.2 billion and $6.6 billion, respectively. Related Party Debt AHFC no longer issues fixed rate short-term notes to AHM to help fund AHFC’s general corporate operations. AHFC had no outstanding notes to AHM during fiscal year ended March 31, 2018. AHFC incurred interest expense on these notes totaling $3 million for both the fiscal years ended March 31, 2017 and 2016. As of March 31, 2017, AHFC had no outstanding notes issued to AHM. HCFI issues fixed rate short-term notes to HCI to help fund HCFI’s general corporate operations. HCFI incurred interest expense on these notes totaling $14 million, $12 million and $13 million for the fiscal years ended March 31, 2018, 2017 and 2016, respectively. Bank Loans Outstanding bank loans at March 31, 2018 and 2017 were either short-term or long-term, with floating interest rates, and denominated in U.S. dollars or Canadian dollars. Outstanding bank loans have prepayment options. No outstanding bank loans as of March 31, 2018 and 2017 were supported by the Keep Well Agreements with HMC described in Note 6. Outstanding bank loans contain certain covenants, including limitations on liens, mergers, consolidations and asset sales. Medium Term Note (MTN) Programs Private MTN Program AHFC no longer issues MTNs under its Rule 144A Private MTN Program. Notes outstanding under the Private MTN Program as of March 31, 2018 were long-term, with fixed interest rates, and denominated in U.S. dollars. Notes under this program were issued pursuant to the terms of an issuing and paying agency agreement which contains certain covenants, including negative pledge provisions. Public MTN Program In August 2016, AHFC filed 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. The aggregate principal amount of MTNs offered under this program may be increased from time to time. Notes outstanding under this program as of March 31, 2018 were either long-term or short-term, with either fixed or floating interest rates, and denominated in U.S. dollars, Euro or Sterling. Notes under this program are issued pursuant to an indenture which contains certain covenants, including negative pledge provisions and limitations on mergers, consolidations and asset sales. Euro MTN Programme The Euro MTN Programme was retired in August 2014. Notes under this program that are currently listed on the Luxembourg Stock Exchange will remain listed through their maturities. Notes under this program were issued pursuant to the terms of an agency agreement which contains certain covenants, including negative pledge provisions. The MTN programs are supported by the Keep Well Agreement with HMC described in Note 6. Other Debt The outstanding balances as of March 31, 2018 and 2017 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 contains certain covenants, including negative pledge provisions. Secured Debt The Company issues notes through financing transactions that are secured by assets held by the issuing securitization trusts. Notes outstanding as of March 31, 2018 and 2017 were both long-term and short-term, with either fixed or floating interest rates, and denominated in U.S. dollars or Canadian dollars. Repayment on the notes is dependent on the performance of the underlying receivables. Refer to Note 10 for additional information on the Company’s secured financing transactions. Credit Agreements Syndicated Bank Credit Facilities AHFC maintains a $3.5 billion 364-day credit agreement, which expires on March 1, 2019, a $2.1 billion three-year credit agreement, which expires on March 3, 2021, and a $1.4 billion five-year credit agreement, which expires on March 3, 2023. As of March 31, 2018, 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 $1.2 billion credit agreement which provides that HCFI may borrow up to $620 million on a one-year and up to $620 million on a five-year revolving basis. The one-year tranche of the credit agreement expires on March 24, 2019 and the five-year tranche of the credit agreement expires on March 24, 2023. As of March 31, 2018, no amounts were drawn upon under the HCFI credit agreement. HCFI intends to renew or replace the credit agreement prior to or on the expiration date of each respective tranche. The credit agreements contain customary covenants, including limitations on liens, mergers, consolidations and asset sales. Other Credit Agreements AHFC maintains other committed lines of credit that allow the Company access to an additional $1.0 billion in unsecured funding with multiple banks. The credit agreements contain customary covenants, including limitations on liens, mergers, consolidations and asset sales. As of March 31, 2018, no amounts were drawn upon under these agreements. These agreements expire in September 2018. AHFC intends to renew these credit agreements prior to or on their expiration dates.

Derivative Instruments

Derivative Instruments	12 Months Ended
	Mar. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments	(5) Derivative Instruments The notional balances and fair values of the Company’s derivatives are presented below. The derivative instruments are presented in the Company’s consolidated balance sheets on a gross basis. Refer to Note 14 regarding the valuation of derivative instruments. March 31, 2018 2017 Notional Notional balances Assets Liabilities balances Assets Liabilities (U.S. dollars in millions) Interest rate swaps $ 56,043 $ 465 $ 342 $ 54,664 $ 237 $ 193 Cross currency swaps 4,310 285 72 3,694 12 256 Gross derivative assets/liabilities 750 414 249 449 Counterparty netting adjustment (372 ) (371 ) (179 ) (179 ) Net derivative assets/liabilities $ 378 $ 43 $ 70 $ 270 The income statement impact of derivative instruments is presented below. There were no derivative instruments designated as part of a hedge accounting relationship during the periods presented. Years ended March 31, 2018 2017 2016 (U.S. dollars in millions) Interest rate swaps $ 126 $ (87 ) $ (8 ) Cross currency swaps 424 (228 ) 109 Total gain/(loss) on derivative instruments $ 550 $ (315 ) $ 101 The fair value of derivative instruments is subject to the fluctuations in market interest rates and foreign currency exchange rates. Since the Company has elected not to apply hedge accounting, the volatility in the changes in fair value of these derivative instruments is recognized in earnings. All settlements of derivative instruments are recognized within cash flows from operating activities in the consolidated statements of cash flows. These derivative instruments also contain an element of credit risk in the event the counterparties are unable to meet the terms of the agreements. However, the Company minimizes the risk exposure by limiting the counterparties to major financial institutions that meet established credit guidelines. In the event of default, all counterparties are subject to legally enforceable master netting agreements. In Canada, HCFI is a party to credit support agreements that require posting of cash collateral to mitigate credit risk on derivative positions.

Transactions Involving Related

Transactions Involving Related Parties	12 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Transactions Involving Related Parties	(6) Transactions Involving Related Parties The following tables summarize the income statement and balance sheet impact of transactions with the Parent and affiliated companies: Years ended March 31, Income Statement 2018 2017 2016 (U.S. dollars in millions) Revenue: Subsidy income $ 1,441 $ 1,232 $ 1,076 Interest expense: Related party debt 14 15 16 Other income, net: VSC administration fees 107 103 98 Support Service Fee (28 ) — — General and administrative expenses: Support Compensation Agreement fees 22 20 18 Benefit plan expenses 11 11 9 Shared services 62 60 58 March 31, Balance Sheet 2018 2017 (U.S. dollars in millions) Assets : Finance receivables, net: Unearned subsidy income $ (1,030 ) $ (820 ) Investment in operating leases, net: Unearned subsidy income (1,313 ) (1,281 ) Due from Parent and affiliated companies 139 228 Liabilities: Debt: Related party debt $ 1,085 $ 1,201 Due to Parent and affiliated companies 87 91 Accrued interest expense: Related party debt 3 2 Other liabilities: VSC unearned administrative fees 396 394 Accrued benefit expenses 71 66 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, Private MTN Program, Public MTN Program, Euro MTN Programme, and HCFI’s private placement debt. In connection with the above agreements, AHFC and HCFI have entered into separate Support Compensation Agreements, where each has agreed to pay HMC a quarterly fee based on the amount of outstanding debt that benefit from the Keep Well Agreements. Support Compensation Agreement fees are recognized in general and administrative expenses. Incentive Financing Programs The Company receives subsidy payments from AHM and HCI, which supplement the revenues on financing products offered under incentive programs. Subsidy payments received on retail loans and leases are deferred and recognized as revenue over the term of the related contracts. The unearned balance is recognized as reductions to the carrying value of finance receivables and investment in operating leases. Subsidy payments on dealer loans are received as earned. Refer to Notes 1(e) and 1(f) for additional information. Related Party Debt AHFC no longer issues short-term notes to AHM to fund AHFC’s general corporate operations. As of March 31, 2018, AHFC had no outstanding notes to AHM. HCFI issues short-term notes to HCI to fund HCFI’s general corporate operations. Interest rates are based on prevailing rates of debt with comparable terms. Refer to Note 4 for additional information. Vehicle Service Contract Administration AHFC receives fees to perform administrative services for VSCs issued by AHM and its subsidiaries. Unearned VSC administration fees are included in other liabilities (Note 12). VSC administration income is recognized in other income (Note 13). HCFI receives fees for marketing vehicle service contracts issued by HCI, and is also recognized in other income. Refer to Note 1(j) for additional information. AHFC pays fees to AHM for services provided in support of AHFC’s performance of VSC administrative services. The support service fees are recognized as an expense within other income, net (Note 13). Shared Services The Company shares certain common expenditures with AHM, HCI, and related parties including information technology services and facilities. The allocated costs for shared services are included in general and administrative expenses. Benefit Plans The Company participates in various employee benefit plans that are maintained by AHM and HCI. The allocated benefit plan expenses are included in general and administrative expenses. Refer to Note 8 for additional information. Income taxes The Company’s U.S. income taxes are recognized on a modified separate return basis pursuant to an intercompany income tax allocation agreement with AHM. Income tax related items are not included in the tables above. Refer to Notes 1(l) and 7 for additional information. Other AHM periodically sponsors programs that allow lessees to terminate their lease contracts prior to the contractual maturity date. AHM compensates the Company for rental payments that were waived under these programs. During the fiscal years ended March 31, 2018 and 2017, the Company recognized $19 million and $6 million, respectively, under these programs which were reflected as proceeds on the disposition of the returned lease vehicles. As a result of the recall of certain Honda and Acura vehicles announced in the fourth quarter of the fiscal year ended March 31, 2016, the Company experienced delays in the disposition of returned lease vehicles and repossessed vehicles. HCI has compensated the Company $6 million during the fiscal year ended March 31, 2017 for certain costs resulting from the delay in disposition of affected vehicles in Canada. The Company compensated AHM $3 million during fiscal year ended March 31, 2017 for certain costs related to the disposition of affected vehicles in the United States. The majority of the amounts due from the Parent and affiliated companies at March 31, 2018 and 2017 related to incentive financing program subsidies. The majority of the amounts due to the Parent and affiliated companies at March 31, 2018 and 2017 related to wholesale flooring invoices 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. In April 2017, the Company sold all issued and outstanding common stock of its wholly-owned subsidiary American Honda Service Contract Corporation (AHSCC) to AHM for $36 million which was equal to AHSCC’s total equity as of March 31, 2017. AHSCC was not material to the Company’s operations. AHFC declared and paid semi-annual cash dividends of $141 million and $206 million to its parent, AHM, during the fiscal year ended March 31, 2018. No dividends were declared or paid during the fiscal year ended March 31, 2017.

Income Taxes

Income Taxes	12 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	(7) Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Tax Act). The primary impact on the effective tax rate is the reduction of the U.S. federal corporate tax rate from 35% to 21%, effective January 1, 2018. In accordance with Section 15 of the Internal Revenue Code, our fiscal year ended March 31, 2018 will have a blended federal corporate tax rate of 31.55%. We adopted Staff Accounting Bulletin No. 118 (SAB 118) which provides guidance on accounting for the tax effects of the Tax Act in our interim quarter ended December 31, 2017 to record re-measurement of deferred taxes and a one-time deemed repatriation transition tax (Transition Tax). As of March 31, 2018, we recorded a measurement period adjustment of $51 million tax expense reflecting the change in temporary differences from the estimate as of December 31, 2017 to actual as of March 31, 2018, and we have completed the re-measurement of deferred taxes to the new 21% tax rate, resulting in a tax benefit of approximately $2,970 million as of the enactment date and the effect of a phased-in tax rate of $209 million. As of March 31, 2018, our accounting for the Transition Tax is provisional, pending further analysis of relevant U.S. federal and state interpretive guidance which continues to evolve. As of March 31, 2018, we recorded a measurement period adjustment of $27 million tax expense as a result of updated estimates and Treasury guidance published after December 31, 2017, and we have accrued provisionally a total of $52 million for the Transition Tax. We expect to complete the accounting for this item within the twelve-month measurement period afforded by SAB 118. Other effects of the Tax Act to the total expense are immaterial. The Company’s consolidated income tax expense/(benefit) was computed on a modified separate return basis pursuant to the intercompany tax allocation agreement with the Parent and consisted of the following: Current Deferred Total (U.S. dollars in millions) Year ended March 31, 2018 Federal $ 45 $ (2,838) $ (2,793) State and local 45 43 88 Foreign 49 27 76 Total $ 139 $ (2,768) $ (2,629) Year ended March 31, 2017 Federal $ (265 ) $ 596 $ 331 State and local (18 ) 72 54 Foreign 32 20 52 Total $ (251 ) $ 688 $ 437 Year ended March 31, 2016 Federal $ (428 ) $ 861 $ 433 State and local (15 ) 88 73 Foreign 22 20 42 Total $ (421 ) $ 969 $ 548 The allocation of federal tax expense between current and deferred tax expense for the fiscal years ended March 31, 2018, 2017 and 2016, reflect primarily the impact of 100% federal bonus depreciation, the elimination of personal property for like-kind exchange purposes, and the one-time Transition Tax due to the Tax Act, and 50% federal bonus depreciation due to the Protecting Americans from Tax Hikes Act of 2015. Income tax expense differs from the expected income taxes by applying the statutory federal corporate rates of 31.55%, 35% and 35% for fiscal years ended March 31, 2018, 2017 and 2016, respectively, to income before income taxes as follows: Years ended March 31, 2018 2017 2016 (U.S. dollars in millions) Computed “expected” income taxes $ 467 $ 416 $ 510 Foreign tax rate differential (14 ) (17 ) (13 ) Effect of foreign dividends and foreign tax credit (10 ) 4 3 State and local income taxes, net of federal income tax benefit 49 40 47 Change in valuation allowance — (5 ) 5 Change in estimated state tax rate, net of federal income tax benefit (5 ) (8 ) 21 Change in unrecognized tax benefit (1 ) — (6 ) Effect of state tax law changes 13 10 (16 ) Effect of Tax Act (3,127 ) Other (1 ) (3 ) (3 ) Income tax expense/(benefit) $ (2,629 ) $ 437 $ 548 Effect of the Tax Act includes $(3,179) million related to re-measurement of deferred tax assets and liabilities and $52 million related to the Transition Tax. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: March 31, 2018 2017 (U.S. dollars in millions) Deferred tax assets: State income tax $ 192 $ 294 Receivable valuation 97 90 Accrued postretirement 14 21 State loss carryforwards 47 60 Other assets 38 69 Total gross deferred tax assets 388 534 Less valuation allowance — — Net deferred tax assets 388 534 Deferred tax liabilities: HCFI leases 319 274 AHFC leases 6,035 8,949 Derivatives 17 24 Securitizations 10 9 Other 42 70 Total gross deferred tax liabilities 6,423 9,326 Net deferred tax liabilities $ 6,035 $ 8,792 The decrease in the net deferred tax liability is primarily attributable to re-measurement resulting from enactment of the 21% tax rate under the Tax Act. The effect of translating HCFI’s net deferred tax liabilities to U.S. dollars upon consolidation resulted in an increase of $8 million during the fiscal year ended March 31, 2018, and a decrease of $5 million during each of the fiscal years ended March 31, 2017 and 2016. The translation adjustments have been recognized as a component of other comprehensive income. Exception to Recognition of Deferred Tax Liabilities Prior to the passage of the Tax Act, foreign undistributed earnings were generally subject to U.S. taxation when repatriated and when subject to U.S. taxation may generally be offset by foreign tax credits. The Tax Act imposes a one-time Transition Tax on the previously untaxed U.S. federal tax “earnings and profits” (“E&P”) and generally eliminates future U.S. federal income taxes on dividends from foreign subsidiaries. The Company has provided for federal and certain states Transition Tax on the E&P of HCFI in the period ended March 31, 2018. The Company has not provided for income taxes on its share of the undistributed earnings of HCFI, exceeding E&P, which are intended to be indefinitely reinvested outside the United States. At March 31, 2018, $844 million of accumulated undistributed earnings of HCFI were intended to be so reinvested. If the undistributed earnings as of March 31, 2018 were to be distributed, the tax liability associated with these indefinitely reinvested earnings would be $73 million. State Loss Carryforwards Included in the Company’s deferred tax assets are net operating loss (NOL) carryforwards with tax benefits resulting from operating losses incurred in various states in which the Company files tax returns in the amounts of $47 million, $60 million and $60 million at March 31, 2018, 2017 and 2016, respectively. Based on the statutes of each of the applicable states, these NOL carryforwards expire at various times through March 31, 2037. Valuation Allowance In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during those periods in which those temporary differences and carryforward deferred tax assets become deductible or utilized. The Company considers sources of income, including the reversal of deferred tax liabilities, projected future taxable income, and tax planning considerations in making this assessment. Based upon these factors, during the fiscal year ended March 31, 2018, the Company believes that it is more likely than not that the deferred tax assets of $388 million recognized as of March 31, 2018 will be realized. Uncertain Tax Positions A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years ended March 31, 2018 2017 2016 (U.S. dollars in millions) Balance, beginning of year $ 21 $ 16 $ 21 Additions for current year tax positions — — — Additions for prior year tax positions 1 5 — Reductions for prior year tax positions — — (10 ) Settlements — — 5 Reductions related to a lapse in the statute of limitations — — — Foreign currency translation — — — Balance, end of year $ 22 $ 21 $ 16 Included in the balance of unrecognized tax benefits at March 31, 2018, 2017 and 2016 are $21 million, $21 million and $15 million, net of the federal benefit of state taxes, respectively, the recognition of which would affect the Company’s effective tax rate in future periods. Although it is reasonably possible that the total amounts of unrecognized tax benefits could change within the next twelve months, the Company does not believe such change would be significant. As a result of the above unrecognized tax benefits and various favorable uncertain positions, the Company has recorded a net liability for uncertain tax positions of $10 million and $14 million as of March 31, 2018 and 2017, respectively (Note 12). The Company recognizes income tax-related interest income, interest expense and penalties as a component of income tax expense. During the fiscal years ended March 31, 2018 and 2017, the Company recognized interest income in an amount less than $1 million, and interest expense in an amount less than $1 million, respectively, as a component of income tax expense. As a result of settlements during the fiscal year ended March 31, 2016, the Company received less than $1 million. There were no settlements during the fiscal year ended March 31, 2018 and 2017. As of March 31, 2018, 2017 and 2016, the Company’s consolidated balance sheets reflect accrued interest payable of $2 million, $3 million and $3 million, respectively. As of March 31, 2018, the Company is subject to examination by U.S. federal and state tax jurisdictions for returns filed for the taxable years ended March 31, 2008 through 2017, with the exception of one state which is subject to examination for returns filed for the taxable years ended March 31, 2001 through 2017. The Company’s Canadian subsidiary, HCFI, is subject to examination for returns filed for the taxable years ended March 31, 2009, and 2011 through 2017 federally, and returns filed for the taxable years ended March 31, 2009 through 2017 provincially. The Company believes appropriate provision has been made for all outstanding issues for all open years.

Benefit Plans

Benefit Plans	12 Months Ended
	Mar. 31, 2018
Compensation And Retirement Disclosure [Abstract]
Benefit Plans	(8) Benefit Plans The Company participates in certain retirement and other postretirement benefit plans maintained by AHM and HCI (collectively referred to as the Sponsors). The Company participates in defined benefit retirement plans (the Pension Plans) maintained by the Sponsors. The names of the Pension Plans maintained by AHM are the Honda Retirement Plan and the Honda Pension Equalization Plan. The name of the Pension Plan maintained by HCI is the Pension Plan for Associates of Honda Canada Inc. Employees who commenced service after September 3, 2013 are not eligible to participate in the Pension Plans maintained by AHM. Under the amendments to the Pension Plan maintained by HCI, employees who commenced service after January 1, 2014 are not eligible to participate in their Pension Plan. The Company pays for its share of the Pension Plan costs allocated by the Sponsors. The Pension Plans’ expense, included in general and administrative expenses, was $6 million for each of the fiscal years ended March 31, 2018, 2017 and 2016. The Company participates in defined contribution savings plans (the Savings Plans) maintained by the Sponsors. These plans allow participants to make contributions subject to Internal Revenue Service or Canada Revenue Agency limits. General and administrative expenses includes $8 million, $7 million and $7 million for the Company’s contributions to the Savings Plans for the fiscal years ended March 31, 2018, 2017 and 2016, respectively. The Company participates in other postretirement plans maintained by the Sponsors primarily to provide certain healthcare benefits for retired employees. Substantially all employees become eligible for these benefits if they have met certain age and service requirements at retirement. The Company’s expense for the postretirement plans, included in general and administrative expenses, was $5 million, $5 million and $3 million for the fiscal years ended March 31, 2018, 2017 and 2016, respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	(9) Commitments and Contingencies The Company leases certain premises and equipment on a long-term basis under noncancelable leases. Some of these leases require the Company to pay property taxes, insurance, and other expenses. Lease expense was $9 million, $10 million and $10 million for the fiscal years ended March 31, 2018, 2017 and 2016, respectively. Annual minimum lease commitments attributable to long-term noncancelable operating leases at March 31, 2018 were as follows (U.S. dollars in millions): Year ending March 31: 2019 $ 9 2020 10 2021 10 2022 9 2023 9 Thereafter 32 Total $ 79 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 majority of the lines have annual renewal periods. The unused balance of commercial revolving lines of credit was $189 million as of March 31, 2018. The Company also has commitments to finance the construction of auto dealerships. The remaining unfunded balance for these construction loans was $33 million as of March 31, 2018. 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. Most of these proceedings concern customer allegations of wrongful repossession or defamation of credit. The Company is also subject to governmental reviews and inquiries from time to time. Based on available information and established accruals, management does not believe it is reasonably possible that the results of these proceedings, in the aggregate, will have a material adverse effect on the Company’s consolidated financial statements.

Securitizations and Variable In

Securitizations and Variable Interest Entities	12 Months Ended
	Mar. 31, 2018
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract]
Securitizations and Variable Interest Entities	(10) Securitizations and Variable Interest Entities The trusts utilized for on-balance sheet securitizations are VIEs, which are required to be consolidated by their primary beneficiary. The Company is considered to be the primary beneficiary of these trusts due to (i) the power to direct the activities of the trusts that most significantly impact the trusts’ economic performance through its role as servicer, and (ii) the obligation to absorb losses or the right to receive residual returns that could potentially be significant to the trusts through the subordinated certificates and residual interest retained. The debt securities issued by the trusts to third-party investors along with the assets of the trusts are included in the Company’s consolidated financial statements. During the fiscal years ended March 31, 2018 and 2017, the Company issued notes through asset-backed securitizations, which were accounted for as secured financing transactions totaling $5.2 billion and $5.7 billion, respectively. The notes were secured by receivables with an initial principal balance of $5.8 billion and $6.3 billion, respectively. The table below presents the carrying amounts of assets and liabilities of consolidated securitization trusts as they are reported in the Company’s consolidated balance sheets. All amounts exclude intercompany balances, which have been eliminated upon consolidation. The assets of the trusts can only be used to settle the obligations of the trusts. The third-party investors in the obligations of the trusts do not have recourse to the general credit of the Company. March 31, 2018 2017 (U.S. dollars in millions) Assets: Finance receivables $ 9,112 $ 8,649 Unamortized costs and subsidy income, net (203 ) (125 ) Allowance for credit losses (14 ) (12 ) Finance receivables, net 8,895 8,512 Vehicles held for disposition 4 3 Restricted cash (1) 443 358 Accrued interest receivable (1) 9 9 Total assets $ 9,351 $ 8,882 Liabilities: Secured debt $ 8,745 $ 8,435 Unamortized discounts and fees (12 ) (13 ) Secured debt, net 8,733 8,422 Accrued interest expense 6 4 Total liabilities $ 8,739 $ 8,426 (1) Included with other assets in the Company’s consolidated balance sheets (Note 11). In their role as servicers, AHFC and HCFI collect principal and interest payments on the underlying receivables on behalf of the securitization trusts. Cash collected during a calendar month is required to be remitted to the trusts 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 trusts. As of March 31, 2018 and 2017, AHFC and HCFI had combined cash collections of $466 million and $462 million, respectively, which were required to be remitted to the trusts.

Other Assets

Other Assets	12 Months Ended
	Mar. 31, 2018
Other Assets [Abstract]
Other Assets	(11) Other Assets Other assets consisted of the following: March 31, 2018 2017 (U.S. dollars in millions) Interest receivable and other assets $ 84 $ 76 Other receivables 144 148 Deferred expense 122 171 Software, net of accumulated amortization of $146 and $138 as of March 31, 2018 and 2017, respectively 33 33 Property and equipment, net of accumulated depreciation of $ 2 as of March 31, 2018 and 2017, respectively 6 8 Restricted cash 443 382 Other miscellaneous assets 102 74 Total $ 934 $ 892 Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the related assets, which range from three to five years. General and administrative expenses include depreciation and amortization expense of $10 million, $7 million and $5 million for the fiscal years ended March 31, 2018, 2017 and 2016, respectively.

Other Liabilities

Other Liabilities	12 Months Ended
	Mar. 31, 2018
Other Liabilities Disclosure [Abstract]
Other Liabilities	(12) Other Liabilities Other liabilities consisted of the following: March 31, 2018 2017 (U.S. dollars in millions) Dealer payables $ 174 $ 148 Accounts payable and accrued expenses 363 313 Lease security deposits 78 66 VSC unearned administrative fees (Note 6) 396 394 Unearned income, operating lease 347 330 Uncertain tax positions 10 14 Other liabilities 14 124 Total $ 1,382 $ 1,389

Other Income, Net

Other Income, Net	12 Months Ended
	Mar. 31, 2018
Other Income And Expenses [Abstract]
Other Income, Net	(13) Other Income, net Other income consisted of the following: Years ended March 31, 2018 2017 2016 (U.S. dollars in millions) VSC administration (Note 6) $ 107 $ 103 $ 98 Other, net (51 ) 2 (1 ) Total $ 56 $ 105 $ 97

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	(14) Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are those other than quoted prices included within Level 1 that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Nonperformance risk is also required to be reflected in the fair value measurement, including an entity’s own credit standing when measuring the fair value of a liability. Recurring Fair Value Measurements The following tables summarize the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis: March 31, 2018 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 465 $ — $ 465 Cross currency swaps — 285 — 285 Total assets $ — $ 750 $ — $ 750 Liabilities: Derivative instruments: Interest rate swaps $ — $ 342 $ — $ 342 Cross currency swaps — 72 — 72 Total liabilities $ — $ 414 $ — $ 414 March 31, 2017 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 237 $ — $ 237 Cross currency swaps — 12 — 12 Total assets $ — $ 249 $ — $ 249 Liabilities: Derivative instruments: Interest rate swaps $ — $ 193 $ — $ 193 Cross currency swaps — 256 — 256 Total liabilities $ — $ 449 $ — $ 449 The valuation techniques of assets and liabilities measured at fair value on a recurring basis are described below: Derivative Instruments The Company’s derivatives are transacted in over-the-counter markets and quoted market prices are not readily available. The Company uses third-party developed valuation models to value derivative instruments. These models estimate fair values using discounted cash flow modeling techniques, which utilize the contractual terms of the derivative instruments and market-based inputs, including interest rates and foreign exchange rates. Discount rates incorporate counterparty and HMC specific credit default spreads to reflect nonperformance risk. The Company’s derivative instruments are classified as Level 2 since all significant inputs are observable and do not require management judgment. There were no transfers between fair value hierarchy levels during the fiscal years ended March 31, 2018 and 2017. Refer to notes 1(n) and 5 for additional information on derivative instruments. Nonrecurring Fair Value Measurements The following tables summarize nonrecurring fair value measurements recognized for assets still held at the end of the reporting periods presented: Lower-of-cost or fair value Level 1 Level 2 Level 3 Total adjustment (U.S. dollars in millions) March 31, 2018 Vehicles held for disposition $ — $ — $ 170 $ 170 $ 31 March 31, 2017 Vehicles held for disposition $ — $ — $ 166 $ 166 $ 29 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 direct financing lease receivables and investment in operating leases. March 31, 2018 Carrying Fair value value Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Cash and cash equivalents $ 783 $ 783 $ — $ — $ 783 Dealer loans, net 5,495 — — 5,299 5,299 Retail loans, net 32,320 — — 32,295 32,295 Restricted cash 443 443 — — 443 Liabilities: Commercial paper $ 5,167 $ — $ 5,167 $ — $ 5,167 Related party debt 1,085 — 1,085 — 1,085 Bank loans 5,419 — 5,480 — 5,480 Medium term note programs 24,207 — 24,176 — 24,176 Other debt 3,250 — 3,229 — 3,229 Secured debt 8,733 — 8,683 — 8,683 March 31, 2017 Carrying Fair value value Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Cash and cash equivalents $ 760 $ 760 $ — $ — $ 760 Dealer loans, net 5,006 — — 4,837 4,837 Retail loans, net 30,523 — — 30,724 30,724 Restricted cash 382 382 — — 382 Liabilities: Commercial paper $ 4,462 $ — $ 4,462 $ — $ 4,462 Related party debt 1,201 — 1,202 — 1,202 Bank loans 5,883 — 5,939 — 5,939 Medium term note programs 23,523 — 23,723 — 23,723 Other debt 2,736 — 2,761 — 2,761 Secured debt 8,422 — 8,411 — 8,411 The following describes the methodologies and assumptions used to estimate the fair value of the Company’s financial instruments not measured at fair value on a recurring basis: Cash, Cash Equivalents and Restricted Cash The carrying values reported on the consolidated balance sheets approximate fair values due to the short-term nature of the assets and negligible credit risk. Restricted cash accounts held by securitization trusts are included in other assets. Finance Receivables The fair values of the Company’s retail loans and dealer wholesale loans are based on estimated proceeds of hypothetical whole loan transactions. It is assumed that market participants in whole loan transactions would acquire the loans with the intent of securitizing the loans. Internally developed valuation models are used to estimate the pricing of securitization transactions, which is adjusted for the estimated costs of securitization transactions and required profit margins of market participants. The models incorporate projected cash flows of the underlying receivables, which include prepayment and credit loss assumptions. The models also incorporate current market interest rates and market spreads for the credit and liquidity risk of securities issued in the securitizations. The estimated fair values of the Company’s dealer commercial loans are based on a discounted cash flow model. Debt The fair value of the Company’s debt is estimated based on a discounted cash flow analysis. Projected cash flows are discounted using current market interest rates and credit spreads for debt with similar maturities. The Company’s specific nonperformance risk is reflected in the credit spreads on the Company’s unsecured debt. The above fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no active market exists for a portion of the Company’s financial instruments, fair value estimates of such financial instruments are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value information presented in the tables above is based on information available at March 31, 2018 and 2017. Although the Company is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been updated since those dates, and therefore, the current estimates of fair value at dates subsequent to those dates may differ significantly from the amounts presented herein.

Segment Information

Segment Information	12 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Segment Information	(15) Segment Information The Company’s reportable segments are based on the two geographic regions where operating results are measured and evaluated by management: the United States and Canada. Segment performance is evaluated using an internal measurement basis, which differs from the Company’s consolidated results prepared in accordance with GAAP. Segment performance is evaluated on a pre-tax basis before the effect of valuation adjustments on derivative instruments and revaluations of foreign currency denominated debt. Since the Company does not elect to apply hedge accounting, the impact to earnings resulting from these valuation adjustments as reported under GAAP is not representative of segment performance as evaluated by management. Realized gains and losses on derivative instruments, net of realized gains and losses on foreign currency denominated debt, are included in the measure of net revenues when evaluating segment performance. No adjustments are made to segment performance to allocate any revenues or expenses. Financing products offered throughout the United States and Canada are substantially similar. Segment revenues from the various financing products are reported on the same basis as GAAP consolidated results. Financial information for the Company’s reportable segments for the fiscal years ended or at March 31 is summarized in the following tables: Valuation United adjustments and Consolidated States Canada reclassifications Total (U.S. dollars in millions) Year ended March 31, 2018 Revenues: Direct financing leases $ — $ 13 $ — $ 13 Retail 1,181 188 — 1,369 Dealer 158 17 — 175 Operating leases 5,815 1,075 — 6,890 Total revenues 7,154 1,293 — 8,447 Depreciation on operating leases 4,598 883 — 5,481 Interest expense 770 127 — 897 Realized (gains)/losses on derivatives and foreign currency denominated debt (13 ) (1 ) 14 — Net revenues 1,799 284 (14 ) 2,069 Gain/(Loss) on disposition of lease vehicles 66 27 — 93 Other income 50 6 — 56 Total net revenues 1,915 317 (14 ) 2,218 Expenses: General and administrative expenses 384 55 — 439 Provision for credit losses 239 5 — 244 Early termination loss on operating leases 105 3 — 108 Loss on lease residual values — 3 — 3 (Gain)/Loss on derivative instruments — — (550 ) (550 ) (Gain)/Loss on foreign currency revaluation of debt — — 494 494 Income before income taxes $ 1,187 $ 251 $ 42 $ 1,480 March 31, 2018 Finance receivables, net $ 33,311 $ 4,645 $ — $ 37,956 Investment in operating leases, net 27,040 4,777 — 31,817 Total assets 62,976 9,650 — 72,626 Valuation United adjustments and Consolidated States Canada reclassifications Total (U.S. dollars in millions) Year ended March 31, 2017 Revenues: Direct financing leases $ — $ 34 $ — $ 34 Retail 1,030 158 — 1,188 Dealer 133 14 — 147 Operating leases 5,547 786 — 6,333 Total revenues 6,710 992 — 7,702 Depreciation on operating leases 4,403 653 — 5,056 Interest expense 638 90 — 728 Realized (gains)/losses on derivatives and foreign currency denominated debt (35 ) 17 18 — Net revenues 1,704 232 (18 ) 1,918 Gain/(Loss) on disposition of lease vehicles 24 19 — 43 Other income 100 5 — 105 Total net revenues 1,828 256 (18 ) 2,066 Expenses: General and administrative expenses 383 51 — 434 Provision for credit losses 199 11 — 210 Early termination loss on operating leases 67 6 — 73 Loss on lease residual values — 15 — 15 (Gain)/Loss on derivative instruments — — 315 315 (Gain)/Loss on foreign currency revaluation of debt — — (171 ) (171 ) Income before income taxes $ 1,179 $ 173 $ (162 ) $ 1,190 March 31, 2017 Finance receivables, net $ 31,447 $ 4,457 $ — $ 35,904 Investment in operating leases, net 27,380 3,930 — 31,310 Total assets 61,328 8,526 — 69,854 Valuation United adjustments and Consolidated States Canada reclassifications Total (U.S. dollars in millions) Year ended March 31, 2016 Revenues: Direct financing leases $ — $ 72 $ — $ 72 Retail 1,041 144 — 1,185 Dealer 109 13 — 122 Operating leases 5,023 500 — 5,523 Total revenues 6,173 729 — 6,902 Depreciation on operating leases 4,012 409 — 4,421 Interest expense 518 74 — 592 Realized (gains)/losses on derivatives and foreign currency denominated debt 4 27 (31 ) — Net revenues 1,639 219 31 1,889 Gain/(Loss) on disposition of lease vehicles 46 5 — 51 Other income 94 3 — 97 Total net revenues 1,779 227 31 2,037 Expenses: General and administrative expenses 356 47 — 403 Provision for credit losses 134 16 — 150 Early termination loss on operating leases 41 5 — 46 Impairment loss on operating leases 6 2 — 8 Loss on lease residual values — 13 — 13 (Gain)/Loss on derivative instruments — — (101 ) (101 ) (Gain)/Loss on foreign currency revaluation of debt — — 60 60 Income before income taxes $ 1,242 $ 144 $ 72 $ 1,458 March 31, 2016 Finance receivables, net $ 31,080 $ 4,713 $ — $ 35,793 Investment in operating leases, net 25,245 3,002 — 28,247 Total assets 58,813 7,840 — 66,653

Selected Quarterly Financial Da

Selected Quarterly Financial Data	12 Months Ended
	Mar. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Selected Quarterly Financial Data	(16) Selected Quarterly Financial Data (Unaudited) First Second Third Fourth Quarter Quarter Quarter Quarter Full Year (U.S. dollars in millions) Year ended March 31, 2018 Total revenues $ 2,041 $ 2,111 $ 2,140 $ 2,155 $ 8,447 Depreciation on operating leases 1,346 1,363 1,378 1,394 5,481 Interest expense 204 218 229 246 897 Other income 14 13 14 15 56 Total net revenues 534 577 555 552 2,218 Provision for credit losses 39 83 65 57 244 Early termination loss on operating leases 17 42 22 27 108 Net income 248 222 3,370 269 4,109 Net income attributable to American Honda Finance Corporation 221 192 3,349 247 4,009 Year ended March 31, 2017 Total revenues $ 1,846 $ 1,911 $ 1,953 $ 1,992 $ 7,702 Depreciation on operating leases 1,182 1,250 1,306 1,318 5,056 Interest expense 169 178 186 195 728 Other income 22 22 23 38 105 Total net revenues 536 504 484 542 2,066 Provision for credit losses 31 72 54 53 210 Early termination loss on operating leases 15 16 19 23 73 Net income 237 196 119 201 753 Net income attributable to American Honda Finance Corporation 223 178 98 184 683

Summary of Business and Signi24

Summary of Business and Significant Accounting Policies (Policies)	12 Months Ended
	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Nature of Operations	American Honda Finance Corporation (AHFC) is a wholly-owned subsidiary of American Honda Motor Co., Inc. (AHM or the Parent). Honda Canada Finance Inc. (HCFI) is a majority-owned subsidiary of AHFC. Noncontrolling interest in HCFI is held by Honda Canada Inc. (HCI), an affiliate of AHFC. AHM is a wholly-owned subsidiary and HCI is an indirect wholly-owned subsidiary of Honda Motor Co., Ltd. (HMC). AHM and HCI are the sole authorized distributors of Honda and Acura products, including motor vehicles, parts, and accessories in the United States and Canada. Unless otherwise indicated by the context, all references to the “Company” include AHFC and its consolidated subsidiaries (refer Note 1(b) Principles of Consolidation The Company provides various forms of financing to authorized independent dealers of Honda and Acura products and their customers in the United States and Canada. The Company also finances a limited number of vehicles other than Honda and Acura products. The Company’s financing products include the following categories: Retail Loans – The Company acquires retail installment contracts from dealers who originate the contracts with consumers. Retail loans are collateralized by liens on the related vehicles or equipment. Retail loan terms range primarily from two to six years. Retail Leases – The Company acquires closed-end vehicle lease contracts between dealers and their customers. The dealer assigns all of its rights, title, and interest in the lease and motor vehicle to the Company upon acquisition. Lease terms range primarily from two to five years. Dealer Loans – The Company provides wholesale and commercial loans to dealers. Wholesale loans are used by dealers to finance the purchase of inventory. The Company retains purchase money security interest in all inventory financed; however, the Company has no right to recover a product sold to consumers in the ordinary course of business. The Company has agreements with AHM and HCI, which provide for their repurchase of new, unused, and unregistered vehicles or equipment that have been repossessed from a dealer who defaults on a wholesale loan. Commercial loans are used primarily for financing dealership property and working capital purposes. Commercial loans are generally secured by the associated properties, as well as corporate or personal guarantees from, or on behalf of, the related dealer’s principals. The Company’s finance receivables and investment in operating leases are geographically diversified throughout the United States and Canada.
Use of Estimates	The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated balance sheets and revenues and expenses for the applicable periods. Those estimates include, among other things, the residual value estimates of lease vehicles and estimates for the allowances for credit losses and early termination losses on operating leases. Actual results could differ significantly from these estimates.
Business Risks	(a) Business Risks The Company’s business is substantially dependent upon the sale of Honda and Acura products. The financing business is also highly competitive. The Company’s competitors and potential competitors include national, regional, and local finance companies and other types of financial services companies, such as commercial banks, savings and loan associations, leasing companies, and credit unions. The Company’s future profitability will be largely dependent upon its ability to provide cost-competitive, quality financial products and services to its customers and to the availability and cost of its capital in relation to that of its competitors. The Company’s liquidity is largely dependent on access to credit markets. The Company has been able to meet funding needs through diversified funding sources. Higher than expected credit losses and lower than anticipated lease residual values due to prolonged periods of negative economic and market conditions can adversely affect the Company’s financial position, results of operations, and related cash flows. The Company manages these risks with purchasing and residual value setting standards, collection efforts, and lease remarketing programs. Refer to Note 1(g) for additional discussion on the allowance for credit losses and Note 1(h) for additional discussion on the determination of lease residual values. The Company is exposed to market risks, principally interest rate and foreign currency risks, and utilizes derivative instruments to manage those risks. Although the use of derivative instruments mitigates a substantial portion of these risks, not all risk is eliminated. Refer to Note 1(n) for additional discussion on derivative instruments.
Principles of Consolidation	(b) Principles of Consolidation The consolidated financial statements include the accounts of AHFC and its subsidiaries. All subsidiaries are wholly-owned, except for HCFI, which is majority-owned (52.33% as of March 31, 2018 and 2017). The Company also consolidates variable interest entities (VIEs) where the Company is the primary beneficiary. All consolidated VIEs are statutory trusts formed by the Company to accommodate securitization structures. In April 2017, the Company sold all issued and outstanding common stock of its wholly-owned subsidiary American Honda Service Contract Corporation (AHSCC) to AHM for an amount equal to AHSCC’s total equity as of March 31, 2017. AHSCC was not material to the Company’s operations. All significant intercompany balances and transactions have been eliminated upon consolidation.
Comprehensive Income	(c) Comprehensive Income Comprehensive income consists of net income and the effect of foreign currency translation adjustments and is presented in the consolidated statements of comprehensive income.
Cash and Cash Equivalents	(d) Cash and Cash Equivalents Cash and cash equivalents include cash on hand and short-term, highly liquid investments with original maturities of three months or less.
Finance Receivables	(e) Finance Receivables Finance receivables include retail loan, direct financing lease, and dealer loan portfolio segments. The retail loan portfolio segment consists of retail installment contracts with consumers. The direct financing lease portfolio segment consists of closed-end vehicle lease contracts with consumers. The dealer loan portfolio segment consists of wholesale and commercial loans with dealers. Finance receivables are classified as held-for-investment if the Company has the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. As of March 31, 2018 and 2017, all finance receivables were classified as held-for-investment and reported at amortized cost. Retail and dealer loans include the outstanding principal balance, allowance for credit losses, unearned origination fees, and deferred origination costs. Direct financing leases include the gross receivable balances, unearned interest income, write-down of lease residual values, allowance for credit losses, unearned origination fees, and deferred origination costs. Origination fees include payments received from AHM and HCI for incentive programs (refer to Note 6 regarding these related party transactions). For a limited number of contracts, origination fees include payments received from dealers to buy down the interest rates charged to their customers. Origination costs include initial direct origination costs (IDC) and payments made to dealers for rate participation. Revenue on finance receivables includes contractual interest income, accretion of origination fees, and amortization of origination costs. Interest income on retail and dealer loans is accrued as earned using the simple interest method. Unearned interest income on direct financing leases is recognized as finance revenue over the term of the lease using the interest method. Origination fees and costs are recognized as revenue using the interest method over the contractual life of the finance receivables. The recognition of finance revenue on retail loans and leases is discontinued when the underlying collateral is repossessed or accounts are charged off. The recognition of finance revenue on dealer loans is discontinued when it has been determined the Company will be unable to collect all principal and interest payments. Retail loans and leases 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 contractual balance of retail loans and leases, including accrued interest and fees, are automatically charged off when they become 120 days past due or earlier if they have been specifically identified as uncollectible. Dealer loans are charged off when they have been individually identified as uncollectible. Charge-offs of loan and lease balances, including uncollected interest and fees, are recognized as a reduction to the allowance for credit losses. Subsequent recoveries of amounts previously charged off are credited to the allowance.
Investment in Operating Leases	(f) Investment in Operating Leases The investment in operating leases is reported at cost, less accumulated depreciation and net of unearned origination fees and deferred origination costs. Origination fees include payments received from AHM for incentive programs (refer to Note 6 regarding these related party transactions). For a limited number of contracts, origination fees include payments received from dealers to buy down the rental charges. Origination costs include payments made for dealer participation. Operating lease revenue is recognized on a straight-line basis over the lease term. Operating lease revenue includes accretion of origination fees and is net of amortization of origination costs, which are also recognized on a straight-line basis over the lease term. Operating lease vehicles are depreciated on a straight-line basis over the lease term to the estimated residual value. Refer to Note 1(h) regarding the determination of lease residual values. A portion of the Company’s operating leases is expected to terminate prior to their scheduled maturities when lessees default on their contractual obligations. Losses are generally realized upon the disposition of the repossessed operating lease vehicles. The methodologies used to determine the estimated losses are similar to the methodologies used to determine the allowance for credit losses on consumer finance receivables. Operating leases are collectively evaluated to determine the estimated losses incurred. Estimated early termination losses are recognized as a reduction to the carrying value of operating lease assets. A review for impairment of the Company’s operating lease assets is performed whenever events or changes in circumstances indicate that the carrying values may not be recoverable. Generally, an impairment condition is determined to exist if estimated undiscounted cash flows from the use and eventual disposition of the asset is lower than the carrying value. For the purposes of testing for impairment, operating lease assets are grouped at the lowest level the Company can reasonably estimate cash flows. When impairment conditions are met, impairment losses are measured by the amount carrying values exceed their fair values.
Allowance for Credit Losses	(g) Allowance for Credit Losses The allowance for credit losses is management’s estimate of probable losses incurred on finance receivables and is evaluated, at minimum, on a quarterly basis. The retail loan and direct financing lease portfolio segments consist primarily of pools of homogeneous loans and leases with relatively small balances, which are collectively evaluated for impairment. Dealer loans are individually evaluated for impairment when specifically identified as impaired. Dealer loans that have not been specifically identified as impaired are collectively evaluated. An allowance for credit losses is also maintained for estimated probable losses incurred on past due operating lease rental payments.
Determination of Lease Residual Values	(h) Determination of Lease Residual Values Contractual residual values of lease vehicles are determined at lease inception based on expectations of end of term used vehicle values, taking into consideration external industry data and the Company’s own historical experience. Lease customers have the option at the end of the lease term to return the vehicle to the dealer or to buy the vehicle for the contractual residual value (or if purchased prior to lease maturity, for the outstanding contractual balance). Returned lease vehicles can be purchased by the grounding dealer for the contractual residual value (or if purchased prior to lease maturity, for the outstanding contractual balance) or a market based price. Returned lease vehicles that are not purchased by the grounding dealers are sold through online and physical auctions. The Company is exposed to risk of loss on the disposition of returned lease vehicles when the proceeds from the sale of the vehicles are less than the contractual residual values at the end of lease term. The Company assesses the estimated end of term market values of the lease vehicles, at minimum, on a quarterly basis. The primary factors affecting the estimates are the percentage of leased vehicles the Company expects to be returned by the lessee at the end of lease term and expected loss severities. Factors considered in this evaluation include, among other factors, economic conditions, historical trends, and market information on new and used vehicles. For operating leases, adjustments to the estimated residual values are made on a straight-line basis over the remaining term of the lease and recognized as depreciation expense. For direct financing leases, downward adjustments for declines in estimated residual values deemed other-than-temporary are recognized as a loss in the period in which the estimate changed.
Vehicles Held for Disposition	(i) Vehicles Held for Disposition Vehicles held for disposition consist of returned and repossessed vehicles. The vehicles are either sold at used vehicle auctions or purchased by dealers, usually within two months of return or repossession. The vehicles are valued at the lower of their carrying value or estimated fair value, less estimated disposition costs. For returned vehicles, valuation adjustments are recorded as a charge against the gain/loss on disposition of lease vehicles. Valuation adjustments made for repossessed collateral of finance receivables and operating leases are recognized as charges to the allowance for credit loss and estimated early termination losses on operating leases, respectively.
Vehicle Service Contract Administration	(j) Vehicle Service Contract Administration AHFC performs administrative services for vehicle service contracts (VSC) issued by AHM and its subsidiary, American Honda Protection Products Corporation. AHFC receives fees for performing the services when the contracts are acquired, which is recognized in other income over the lives of the underlying contracts, proportionate to the anticipated amount of service to be performed. HCFI performs marketing services for vehicle service contracts issued by HCI. HCFI receives fees as the services are performed, which is recognized in other income.
Securitizations and Variable Interest Entities	(k) Securitizations and Variable Interest Entities The Company enters into securitization transactions for funding purposes. Securitization transactions involve transferring pools of the Company’s retail loans to statutory trusts. The trusts are special purpose entities formed by the Company to accommodate securitization structures. Securitization trusts have the limited purpose of acquiring assets, issuing asset-backed securities, and making payments on the securities. Assets transferred to securitization trusts are considered legally isolated from the Company and the claims of the Company’s creditors. The Company continues to service the retail loans transferred to the trusts. Investors in the notes issued by the trusts only have recourse to the assets of the trusts and do not have recourse to the general credit of the Company. The Company’s securitizations are structured to provide credit enhancements to investors in notes issued by the trusts. Credit enhancements can include the following: Subordinated certificates – Securities issued by the trusts, which are retained by the Company and are subordinated in priority of payment to the notes. Overcollateralization – Principal balance of securitized assets exceed the balance of securities issued by the trust. Excess interest – Excess interest collections can be used to cover losses on defaulted loans. Reserve funds – Restricted cash accounts held by the trusts to cover shortfalls in payments of interest and principal required to be paid on the notes. Yield supplement accounts – Restricted cash accounts held by the trusts to supplement interest payments on notes. The risk retention regulations in Regulation RR of the Securities Exchange Act of 1934, as amended, require the sponsor to retain an economic interest in the credit risk of the securitized receivables, either directly or through one or more majority-owned affiliates. Standard risk retention options allow the sponsor to retain either an eligible vertical interest, an eligible horizontal residual interest, or a combination of both. The Company has satisfied this obligation by retaining an eligible vertical interest of an amount equal to at least 5% of the principal amount of each class of note and certificate issued for the securitization transaction that was subject to this rule but may choose to use other structures in the future. The securitization trusts formed by the Company are VIEs, which are required to be consolidated by their primary beneficiary. The Company is considered to be the primary beneficiary of these trusts due to (i) the power to direct the activities of the trusts that most significantly impact the trusts’ economic performance through its role as servicer, and (ii) the obligation to absorb losses or the right to receive residual returns that could potentially be significant to the trusts through the subordinated certificates and residual interest retained. Consolidation of these trusts results in the securitization transactions being accounted for as on-balance sheet secured financings. The securitized receivables remain on the consolidated balance sheet of the Company along with the notes issued by the trusts. The notes are secured solely by the assets of the trusts and not by any other assets of the Company. The assets of the trusts are the only source of funds for repayment on the notes. Restricted cash accounts held by the trusts can only be used to support payments on the notes. The restricted cash accounts are included in the Company’s consolidated balance sheet in other assets. Company recognizes finance revenue and provisions for credit losses on the securitized receivables and interest expense on the related secured debt.
Income Taxes	(l) Income Taxes The Company’s U.S. entities are included in the consolidated U.S. federal and many consolidated or combined state and local income tax returns of the Parent, though in some cases the Company files separately as required by certain state and local jurisdictions. The Company provides its share of the consolidated or combined income tax on a modified separate return basis pursuant to an intercompany income tax allocation agreement that it has entered into with the Parent. The Company files a separate California return based on California’s worldwide income and apportionment rules. To the extent the Company’s U.S. entities have taxable losses in its consolidated federal, and consolidated or combined state and local tax returns, a benefit will be recognized to the extent that it is more likely than not that these losses will be utilized by the consolidated or combined return group in the current or future year and thus would be subject to current or future reimbursement by the Parent under the terms of the intercompany income tax allocation agreement. To the extent such losses are attributable to a state where the Company files a separate return, a benefit for such losses would be recognized to the extent such losses are more likely than not to be utilized in the future. All but an insignificant amount of the federal and state taxes payable or receivable shown on the consolidated balance sheets are due to or from the Parent, pursuant to the intercompany income tax allocation agreement. The Company’s Canadian subsidiary, HCFI, files Canadian federal and provincial income tax returns based on the separate legal entity financial statements. HCFI does not file U.S. federal, state, or local income tax returns. Consequently, HCFI does not participate in the intercompany income tax allocation agreement that the Company has with the Parent. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income during the period in which the enactment date occurs. A valuation allowance is provided to offset deferred tax assets if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In addition, tax benefits related to positions considered uncertain are recognized only if, based on the technical merits of the issue, the Company believes that it is more likely than not to sustain the position and then at the largest amount that is greater than 50% likely to be realized upon settlement.
Foreign Currency Translation	(m) Foreign Currency Translation Upon consolidation, the assets and liabilities of HCFI are translated at year-end exchange rates, and the revenues and expenses are translated at the average rates of exchange during the respective years. The resulting translation adjustment is included in other comprehensive income and the cumulative translation adjustment is reported as a separate component of equity in accumulated other comprehensive income and noncontrolling interest. Foreign currency denominated debt is translated at year-end exchange rates, and the foreign currency transaction gains and losses are recognized through earnings.
Derivative Instruments	(n) Derivative Instruments The Company utilizes derivative instruments to manage exposures to interest rate and foreign currency risks. The Company’s assets consist primarily of fixed rate receivables and operating lease assets. The Company’s liabilities consist of both floating and fixed rate debt, denominated in various currencies. Interest rate and basis swaps are used to match the interest rate characteristics of the Company’s assets and debt. Currency swaps are used to manage currency risk exposure on foreign currency denominated debt. Derivative instruments are not used for trading or any other speculative purposes. All derivative financial instruments are recorded on the consolidated balance sheets at fair value. The Company elects to present derivative instruments in the Company’s consolidated balance sheets on a gross basis rather than on a net basis by counterparty. Refer to Note 5 for additional information. Except in very limited circumstances involving counterparties with consolidated securitization trusts, AHFC generally has not entered into credit support (collateral) agreements with its counterparties. Changes in the fair value of derivatives are recognized in earnings in the period of the change. In Canada, HCFI is a party to credit support agreements that require posting of cash collateral to mitigate credit risk on derivative positions.
Recently Issued Accounting Standards	(o) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). Revenue Recognition In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases Notes to Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,
Legal Proceedings	Legal Proceedings and Regulatory Matters The Company establishes accruals for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. When able, the Company will determine estimates of reasonably possible loss or range of loss, whether in excess of any related accrued liability or where there is no accrued liability. Given the inherent uncertainty associated with legal matters, the actual costs of resolving legal claims and associated costs of defense may be substantially higher or lower than the amounts for which accruals have been established.
Fair Value Measurements	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are those other than quoted prices included within Level 1 that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Nonperformance risk is also required to be reflected in the fair value measurement, including an entity’s own credit standing when measuring the fair value of a liability.
Segment Reporting	Segment performance is evaluated using an internal measurement basis, which differs from the Company’s consolidated results prepared in accordance with GAAP. Segment performance is evaluated on a pre-tax basis before the effect of valuation adjustments on derivative instruments and revaluations of foreign currency denominated debt. Since the Company does not elect to apply hedge accounting, the impact to earnings resulting from these valuation adjustments as reported under GAAP is not representative of segment performance as evaluated by management. Realized gains and losses on derivative instruments, net of realized gains and losses on foreign currency denominated debt, are included in the measure of net revenues when evaluating segment performance.

Finance Receivables (Tables)

Finance Receivables (Tables)	12 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Summary of Finance Receivables	Finance receivables consisted of the following: March 31, 2018 Lease Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 154 $ 33,140 $ 5,495 $ 38,789 Allowance for credit losses — (179 ) — (179 ) Write-down of lease residual values (9 ) — — (9 ) Unearned interest income and fees (2 ) — — (2 ) Deferred dealer participation and other deferred costs — 396 — 396 Unearned subsidy income (2 ) (1,037 ) — (1,039 ) Finance receivables, net $ 141 $ 32,320 $ 5,495 $ 37,956 March 31, 2017 Lease Retail Dealer Total (U.S. dollars in millions) Finance receivables $ 410 $ 31,103 $ 5,006 $ 36,519 Allowance for credit losses (1 ) (132 ) — (133 ) Write-down of lease residual values (16 ) — — (16 ) Unearned interest income and fees (8 ) — — (8 ) Deferred dealer participation and other deferred costs — 371 — 371 Unearned subsidy income (10 ) (819 ) — (829 ) Finance receivables, net $ 375 $ 30,523 $ 5,006 $ 35,904
Summary of Contractual Maturities of Direct Financing Lease and Retail Loans	Contractual maturities of direct financing lease and retail loans at March 31, 2018 were as follows: Lease Retail (U.S. dollars in millions) Year ending March 31: 2019 $ 104 $ 9,520 2020 50 8,123 2021 — 6,651 2022 — 4,963 2023 — 2,900 Thereafter — 983 Total $ 154 $ 33,140
Summary of Activity in Allowance for Credit Losses of Finance Receivables Excluding Provisions Related to Past Due Operating Leases	The following is a summary of the activity in the allowance for credit losses of finance receivables, excluding the provisions related to past due operating leases: Year ended March 31, 2018 Lease Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 1 $ 132 $ — $ 133 Provision — 211 2 213 Charge-offs (1 ) (243 ) (2 ) (246 ) Recoveries — 79 — 79 Effect of translation adjustment — — — — Ending balance $ — $ 179 $ — $ 179 Allowance for credit losses – ending balance: Individually evaluated for impairment $ — $ — $ — $ — Collectively evaluated for impairment — 179 — 179 Finance receivables – ending balance: Individually evaluated for impairment $ — $ — $ 128 $ 128 Collectively evaluated for impairment 150 32,499 5,367 38,016 Year ended March 31, 2017 Lease Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 2 $ 91 $ — $ 93 Provision 1 186 — 187 Charge-offs (2 ) (224 ) — (226 ) Recoveries — 79 — 79 Effect of translation adjustment — — — — Ending balance $ 1 $ 132 $ — $ 133 Allowance for credit losses – ending balance: Individually evaluated for impairment $ — $ — $ — $ — Collectively evaluated for impairment 1 132 — 133 Finance receivables – ending balance: Individually evaluated for impairment $ — $ — $ 1 $ 1 Collectively evaluated for impairment 392 30,655 5,005 36,052 Year ended March 31, 2016 Lease Retail Dealer Total (U.S. dollars in millions) Beginning balance $ 2 $ 84 $ — $ 86 Provision 3 129 (1 ) 131 Charge-offs (4 ) (196 ) — (200 ) Recoveries 1 74 1 76 Effect of translation adjustment — — — — Ending balance $ 2 $ 91 $ — $ 93 Allowance for credit losses – ending balance: Individually evaluated for impairment $ — $ — $ — $ — Collectively evaluated for impairment 2 91 — 93 Finance receivables – ending balance: Individually evaluated for impairment $ — $ — $ 1 $ 1 Collectively evaluated for impairment 953 30,178 4,770 35,901
Summary of Aging Analysis of Past Due Finance Receivables	The following is an aging analysis of past due finance receivables: 90 days Current or Total 30 – 59 days 60 – 89 days or greater Total less than 30 finance past due past due past due past due days receivables (U.S. dollars in millions) March 31, 2018 Retail loans: New auto $ 188 $ 35 $ 10 $ 233 $ 27,034 $ 27,267 Used and certified auto 59 11 2 72 3,967 4,039 Motorcycle and other 10 3 2 15 1,178 1,193 Total retail 257 49 14 320 32,179 32,499 Direct financing leases 2 — — 2 148 150 Dealer loans: Wholesale flooring 2 1 2 5 4,447 4,452 Commercial loans — — — — 1,043 1,043 Total dealer loans 2 1 2 5 5,490 5,495 Total finance receivables $ 261 $ 50 $ 16 $ 327 $ 37,817 $ 38,144 March 31, 2017 Retail loans: New auto $ 162 $ 26 $ 7 $ 195 $ 25,785 $ 25,980 Used and certified auto 48 8 2 58 3,474 3,532 Motorcycle and other 10 3 2 15 1,128 1,143 Total retail 220 37 11 268 30,387 30,655 Direct financing leases 3 2 — 5 387 392 Dealer loans: Wholesale flooring 2 — — 2 4,098 4,100 Commercial loans — — — — 906 906 Total dealer loans 2 — — 2 5,004 5,006 Total finance receivables $ 225 $ 39 $ 11 $ 275 $ 35,778 $ 36,053
Summary of Portfolio of Retail Loans and Direct Financing Leases by Credit Quality Indicator	Subsequent to origination, collection experience provides a current indication of the credit quality of consumer finance receivables. The likelihood of accounts charging off is significantly higher once an account becomes 60 days delinquent. Accounts that are current or less than 60 days past due are considered to be performing. Accounts that are 60 days or more past due are considered to be nonperforming. The table below presents the Company’s portfolio of retail loans and direct financing leases by this credit quality indicator: Retail Retail Direct Total consumer Retail used and motorcycle financing finance new auto certified auto and other lease receivables (U.S. dollars in millions) March 31, 2018 Performing $ 27,222 $ 4,026 $ 1,188 $ 150 $ 32,586 Nonperforming 45 13 5 — 63 Total $ 27,267 $ 4,039 $ 1,193 $ 150 $ 32,649 March 31, 2017 Performing $ 25,947 $ 3,522 $ 1,138 $ 390 $ 30,997 Nonperforming 33 10 5 2 50 Total $ 25,980 $ 3,532 $ 1,143 $ 392 $ 31,047
Summary of Outstanding Dealer Loans by Grouping	The Company’s outstanding portfolio of dealer loans has been divided into two groups in the tables below. Group A includes the loans of dealerships with the strongest internal risk rating. Group B includes the loans of all remaining dealers. Although the likelihood of losses can be higher for dealerships in Group B, the overall risk of losses is not considered significant. March 31, 2018 2017 Wholesale Commercial Wholesale Commercial flooring loans Total flooring loans Total (U.S. dollars in millions) Group A $ 2,791 $ 684 $ 3,475 $ 2,689 $ 628 $ 3,317 Group B 1,661 359 2,020 1,411 278 1,689 Total $ 4,452 $ 1,043 $ 5,495 $ 4,100 $ 906 $ 5,006

Investment in Operating Leases

Investment in Operating Leases (Tables)	12 Months Ended
	Mar. 31, 2018
Leases Operating [Abstract]
Schedule of Investment in Operating Leases	Investment in operating leases consisted of the following: March 31, 2018 2017 (U.S. dollars in millions) Operating lease vehicles $ 41,285 $ 39,684 Accumulated depreciation (8,169 ) (7,136 ) Deferred dealer participation and other deferred costs 117 118 Unearned subsidy income (1,317 ) (1,285 ) Estimated early termination losses (99 ) (71 ) Investment in operating leases, net $ 31,817 $ 31,310
Schedule of Future Minimum Rental Payments for Operating Leases	Future minimum rental payments for operating leases at March 31, 2018 were as follows (U.S. dollars in millions): Year ending March 31: 2019 $ 5,342 2020 3,358 2021 1,290 2022 224 2023 40 Total $ 10,254

Debt (Tables)

Debt (Tables)	12 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Outstanding Debt Net of Discounts and Fees, Weighted Average Contractual Interest Rates and Range of Contractual Interest Rates	The Company issues debt in various currencies with both floating and fixed interest rates. Outstanding debt net of discounts and fees, weighted average contractual interest rates and range of contractual interest rates were as follows: Weighted average Contractual contractual interest rate interest rate ranges March 31, March 31, March 31, 2018 2017 2018 2017 2018 2017 (U.S. dollars in millions) Unsecured debt: Commercial paper $ 5,167 $ 4,462 1.86 % 0.99 % 1.07 - 2.21% 0.78 - 1.15% Related party debt 1,085 1,201 1.64 % 0.95 % 1.43 - 1.72% 0.93 - 0.96% Bank loans 5,419 5,883 2.48 % 1.65 % 2.02 - 3.15% 1.28 - 2.00% Private MTN program 1,698 2,946 5.40 % 3.77 % 3.80 - 7.63% 1.50 - 7.63% Public MTN program 21,398 19,491 1.92 % 1.63 % 0.07 - 3.50% 0.07 - 2.90% Euro MTN programme 1,111 1,086 1.95 % 1.83 % 1.88 - 2.33% 1.52 - 2.23% Other debt 3,250 2,736 2.20 % 1.90 % 1.63 - 2.76% 1.28 - 2.35% Total unsecured debt 39,128 37,805 Secured debt 8,733 8,422 1.74 % 1.24 % 1.04 - 2.83% 0.77 - 2.05% Total debt $ 47,861 $ 46,227
Scheduled and Projected Maturities of Debt	The Company’s secured debt is amortizing and unsecured debt is non-amortizing. Scheduled and projected maturities of the Company’s debt at March 31, 2018 are summarized below: 2019 2020 2021 2022 2023 Thereafter Total (U.S. dollars in millions) Unsecured debt: Commercial paper $ 5,178 $ — $ — $ — $ — $ — $ 5,178 Related party debt 1,085 — — — — — 1,085 Bank loans 771 1,494 1,078 1,310 697 78 5,428 Private MTN program 700 — 500 500 — — 1,700 Public MTN program 6,116 4,700 3,100 2,791 2,630 2,116 21,453 Euro MTN programme 160 924 — — 28 — 1,112 Other debt 659 465 892 310 930 — 3,256 Total unsecured debt 14,669 7,583 5,570 4,911 4,285 2,194 39,212 Secured debt (1) 4,660 2,604 1,193 240 48 — 8,745 Total debt (2) $ 19,329 $ 10,187 $ 6,763 $ 5,151 $ 4,333 $ 2,194 47,957 Unamortized discounts/fees (96 ) Total debt $ 47,861 (1) Projected repayment schedule of secured debt. Reflects payment performance assumptions on underlying receivables. (2) Principal amounts.

Derivative Instruments (Tables)

Derivative Instruments (Tables)	12 Months Ended
	Mar. 31, 2018
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 in the Company’s consolidated balance sheets on a gross basis. Refer to Note 14 regarding the valuation of derivative instruments. March 31, 2018 2017 Notional Notional balances Assets Liabilities balances Assets Liabilities (U.S. dollars in millions) Interest rate swaps $ 56,043 $ 465 $ 342 $ 54,664 $ 237 $ 193 Cross currency swaps 4,310 285 72 3,694 12 256 Gross derivative assets/liabilities 750 414 249 449 Counterparty netting adjustment (372 ) (371 ) (179 ) (179 ) Net derivative assets/liabilities $ 378 $ 43 $ 70 $ 270
Income Statement Impact of Derivative Instruments	The income statement impact of derivative instruments is presented below. There were no derivative instruments designated as part of a hedge accounting relationship during the periods presented. Years ended March 31, 2018 2017 2016 (U.S. dollars in millions) Interest rate swaps $ 126 $ (87 ) $ (8 ) Cross currency swaps 424 (228 ) 109 Total gain/(loss) on derivative instruments $ 550 $ (315 ) $ 101

Transactions Involving Relate29

Transactions Involving Related Parties (Tables)	12 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Summary of Income Statement and Balance Sheet Impact of Transactions with Parent and Affiliated Companies	The following tables summarize the income statement and balance sheet impact of transactions with the Parent and affiliated companies: Years ended March 31, Income Statement 2018 2017 2016 (U.S. dollars in millions) Revenue: Subsidy income $ 1,441 $ 1,232 $ 1,076 Interest expense: Related party debt 14 15 16 Other income, net: VSC administration fees 107 103 98 Support Service Fee (28 ) — — General and administrative expenses: Support Compensation Agreement fees 22 20 18 Benefit plan expenses 11 11 9 Shared services 62 60 58 March 31, Balance Sheet 2018 2017 (U.S. dollars in millions) Assets : Finance receivables, net: Unearned subsidy income $ (1,030 ) $ (820 ) Investment in operating leases, net: Unearned subsidy income (1,313 ) (1,281 ) Due from Parent and affiliated companies 139 228 Liabilities: Debt: Related party debt $ 1,085 $ 1,201 Due to Parent and affiliated companies 87 91 Accrued interest expense: Related party debt 3 2 Other liabilities: VSC unearned administrative fees 396 394 Accrued benefit expenses 71 66

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Consolidated Income Tax Expense/(Benefit)	The Company’s consolidated income tax expense/(benefit) was computed on a modified separate return basis pursuant to the intercompany tax allocation agreement with the Parent and consisted of the following: Current Deferred Total (U.S. dollars in millions) Year ended March 31, 2018 Federal $ 45 $ (2,838) $ (2,793) State and local 45 43 88 Foreign 49 27 76 Total $ 139 $ (2,768) $ (2,629) Year ended March 31, 2017 Federal $ (265 ) $ 596 $ 331 State and local (18 ) 72 54 Foreign 32 20 52 Total $ (251 ) $ 688 $ 437 Year ended March 31, 2016 Federal $ (428 ) $ 861 $ 433 State and local (15 ) 88 73 Foreign 22 20 42 Total $ (421 ) $ 969 $ 548
Reconciliation of the Expected Income Tax Expense to the Reported Income Tax Expense	Income tax expense differs from the expected income taxes by applying the statutory federal corporate rates of 31.55%, 35% and 35% for fiscal years ended March 31, 2018, 2017 and 2016, respectively, to income before income taxes as follows: Years ended March 31, 2018 2017 2016 (U.S. dollars in millions) Computed “expected” income taxes $ 467 $ 416 $ 510 Foreign tax rate differential (14 ) (17 ) (13 ) Effect of foreign dividends and foreign tax credit (10 ) 4 3 State and local income taxes, net of federal income tax benefit 49 40 47 Change in valuation allowance — (5 ) 5 Change in estimated state tax rate, net of federal income tax benefit (5 ) (8 ) 21 Change in unrecognized tax benefit (1 ) — (6 ) Effect of state tax law changes 13 10 (16 ) Effect of Tax Act (3,127 ) Other (1 ) (3 ) (3 ) Income tax expense/(benefit) $ (2,629 ) $ 437 $ 548
Deferred Tax Assets and Liabilities	The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: March 31, 2018 2017 (U.S. dollars in millions) Deferred tax assets: State income tax $ 192 $ 294 Receivable valuation 97 90 Accrued postretirement 14 21 State loss carryforwards 47 60 Other assets 38 69 Total gross deferred tax assets 388 534 Less valuation allowance — — Net deferred tax assets 388 534 Deferred tax liabilities: HCFI leases 319 274 AHFC leases 6,035 8,949 Derivatives 17 24 Securitizations 10 9 Other 42 70 Total gross deferred tax liabilities 6,423 9,326 Net deferred tax liabilities $ 6,035 $ 8,792
Unrecognized Tax Benefits	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years ended March 31, 2018 2017 2016 (U.S. dollars in millions) Balance, beginning of year $ 21 $ 16 $ 21 Additions for current year tax positions — — — Additions for prior year tax positions 1 5 — Reductions for prior year tax positions — — (10 ) Settlements — — 5 Reductions related to a lapse in the statute of limitations — — — Foreign currency translation — — — Balance, end of year $ 22 $ 21 $ 16

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Annual Minimum Lease Commitments Attributable to Long-Term Noncancelable Operating Leases	The Company leases certain premises and equipment on a long-term basis under noncancelable leases. Some of these leases require the Company to pay property taxes, insurance, and other expenses. Lease expense was $9 million, $10 million and $10 million for the fiscal years ended March 31, 2018, 2017 and 2016, respectively. Annual minimum lease commitments attributable to long-term noncancelable operating leases at March 31, 2018 were as follows (U.S. dollars in millions): Year ending March 31: 2019 $ 9 2020 10 2021 10 2022 9 2023 9 Thereafter 32 Total $ 79

Securitizations and Variable 32

Securitizations and Variable Interest Entities (Tables)	12 Months Ended
	Mar. 31, 2018
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [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 securitization trusts as they are reported in the Company’s consolidated balance sheets. All amounts exclude intercompany balances, which have been eliminated upon consolidation. The assets of the trusts can only be used to settle the obligations of the trusts. The third-party investors in the obligations of the trusts do not have recourse to the general credit of the Company. March 31, 2018 2017 (U.S. dollars in millions) Assets: Finance receivables $ 9,112 $ 8,649 Unamortized costs and subsidy income, net (203 ) (125 ) Allowance for credit losses (14 ) (12 ) Finance receivables, net 8,895 8,512 Vehicles held for disposition 4 3 Restricted cash (1) 443 358 Accrued interest receivable (1) 9 9 Total assets $ 9,351 $ 8,882 Liabilities: Secured debt $ 8,745 $ 8,435 Unamortized discounts and fees (12 ) (13 ) Secured debt, net 8,733 8,422 Accrued interest expense 6 4 Total liabilities $ 8,739 $ 8,426 (1) Included with other assets in the Company’s consolidated balance sheets (Note 11).

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Mar. 31, 2018
Other Assets [Abstract]
Schedule of Other Assets	Other assets consisted of the following: March 31, 2018 2017 (U.S. dollars in millions) Interest receivable and other assets $ 84 $ 76 Other receivables 144 148 Deferred expense 122 171 Software, net of accumulated amortization of $146 and $138 as of March 31, 2018 and 2017, respectively 33 33 Property and equipment, net of accumulated depreciation of $ 2 as of March 31, 2018 and 2017, respectively 6 8 Restricted cash 443 382 Other miscellaneous assets 102 74 Total $ 934 $ 892

Other Liabilities (Tables)

Other Liabilities (Tables)	12 Months Ended
	Mar. 31, 2018
Other Liabilities Disclosure [Abstract]
Components of Other Liabilities	Other liabilities consisted of the following: March 31, 2018 2017 (U.S. dollars in millions) Dealer payables $ 174 $ 148 Accounts payable and accrued expenses 363 313 Lease security deposits 78 66 VSC unearned administrative fees (Note 6) 396 394 Unearned income, operating lease 347 330 Uncertain tax positions 10 14 Other liabilities 14 124 Total $ 1,382 $ 1,389

Other Income, Net (Tables)

Other Income, Net (Tables)	12 Months Ended
	Mar. 31, 2018
Other Income And Expenses [Abstract]
Components of Other Income	Other income consisted of the following: Years ended March 31, 2018 2017 2016 (U.S. dollars in millions) VSC administration (Note 6) $ 107 $ 103 $ 98 Other, net (51 ) 2 (1 ) Total $ 56 $ 105 $ 97

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Summary of Fair Value Hierarchy of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables summarize the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis: March 31, 2018 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 465 $ — $ 465 Cross currency swaps — 285 — 285 Total assets $ — $ 750 $ — $ 750 Liabilities: Derivative instruments: Interest rate swaps $ — $ 342 $ — $ 342 Cross currency swaps — 72 — 72 Total liabilities $ — $ 414 $ — $ 414 March 31, 2017 Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Derivative instruments: Interest rate swaps $ — $ 237 $ — $ 237 Cross currency swaps — 12 — 12 Total assets $ — $ 249 $ — $ 249 Liabilities: Derivative instruments: Interest rate swaps $ — $ 193 $ — $ 193 Cross currency swaps — 256 — 256 Total liabilities $ — $ 449 $ — $ 449
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: Lower-of-cost or fair value Level 1 Level 2 Level 3 Total adjustment (U.S. dollars in millions) March 31, 2018 Vehicles held for disposition $ — $ — $ 170 $ 170 $ 31 March 31, 2017 Vehicles held for disposition $ — $ — $ 166 $ 166 $ 29
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 direct financing lease receivables and investment in operating leases. March 31, 2018 Carrying Fair value value Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Cash and cash equivalents $ 783 $ 783 $ — $ — $ 783 Dealer loans, net 5,495 — — 5,299 5,299 Retail loans, net 32,320 — — 32,295 32,295 Restricted cash 443 443 — — 443 Liabilities: Commercial paper $ 5,167 $ — $ 5,167 $ — $ 5,167 Related party debt 1,085 — 1,085 — 1,085 Bank loans 5,419 — 5,480 — 5,480 Medium term note programs 24,207 — 24,176 — 24,176 Other debt 3,250 — 3,229 — 3,229 Secured debt 8,733 — 8,683 — 8,683 March 31, 2017 Carrying Fair value value Level 1 Level 2 Level 3 Total (U.S. dollars in millions) Assets: Cash and cash equivalents $ 760 $ 760 $ — $ — $ 760 Dealer loans, net 5,006 — — 4,837 4,837 Retail loans, net 30,523 — — 30,724 30,724 Restricted cash 382 382 — — 382 Liabilities: Commercial paper $ 4,462 $ — $ 4,462 $ — $ 4,462 Related party debt 1,201 — 1,202 — 1,202 Bank loans 5,883 — 5,939 — 5,939 Medium term note programs 23,523 — 23,723 — 23,723 Other debt 2,736 — 2,761 — 2,761 Secured debt 8,422 — 8,411 — 8,411

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Financial Information for the Company's Reportable Segments	Financial information for the Company’s reportable segments for the fiscal years ended or at March 31 is summarized in the following tables: Valuation United adjustments and Consolidated States Canada reclassifications Total (U.S. dollars in millions) Year ended March 31, 2018 Revenues: Direct financing leases $ — $ 13 $ — $ 13 Retail 1,181 188 — 1,369 Dealer 158 17 — 175 Operating leases 5,815 1,075 — 6,890 Total revenues 7,154 1,293 — 8,447 Depreciation on operating leases 4,598 883 — 5,481 Interest expense 770 127 — 897 Realized (gains)/losses on derivatives and foreign currency denominated debt (13 ) (1 ) 14 — Net revenues 1,799 284 (14 ) 2,069 Gain/(Loss) on disposition of lease vehicles 66 27 — 93 Other income 50 6 — 56 Total net revenues 1,915 317 (14 ) 2,218 Expenses: General and administrative expenses 384 55 — 439 Provision for credit losses 239 5 — 244 Early termination loss on operating leases 105 3 — 108 Loss on lease residual values — 3 — 3 (Gain)/Loss on derivative instruments — — (550 ) (550 ) (Gain)/Loss on foreign currency revaluation of debt — — 494 494 Income before income taxes $ 1,187 $ 251 $ 42 $ 1,480 March 31, 2018 Finance receivables, net $ 33,311 $ 4,645 $ — $ 37,956 Investment in operating leases, net 27,040 4,777 — 31,817 Total assets 62,976 9,650 — 72,626 Valuation United adjustments and Consolidated States Canada reclassifications Total (U.S. dollars in millions) Year ended March 31, 2017 Revenues: Direct financing leases $ — $ 34 $ — $ 34 Retail 1,030 158 — 1,188 Dealer 133 14 — 147 Operating leases 5,547 786 — 6,333 Total revenues 6,710 992 — 7,702 Depreciation on operating leases 4,403 653 — 5,056 Interest expense 638 90 — 728 Realized (gains)/losses on derivatives and foreign currency denominated debt (35 ) 17 18 — Net revenues 1,704 232 (18 ) 1,918 Gain/(Loss) on disposition of lease vehicles 24 19 — 43 Other income 100 5 — 105 Total net revenues 1,828 256 (18 ) 2,066 Expenses: General and administrative expenses 383 51 — 434 Provision for credit losses 199 11 — 210 Early termination loss on operating leases 67 6 — 73 Loss on lease residual values — 15 — 15 (Gain)/Loss on derivative instruments — — 315 315 (Gain)/Loss on foreign currency revaluation of debt — — (171 ) (171 ) Income before income taxes $ 1,179 $ 173 $ (162 ) $ 1,190 March 31, 2017 Finance receivables, net $ 31,447 $ 4,457 $ — $ 35,904 Investment in operating leases, net 27,380 3,930 — 31,310 Total assets 61,328 8,526 — 69,854 Valuation United adjustments and Consolidated States Canada reclassifications Total (U.S. dollars in millions) Year ended March 31, 2016 Revenues: Direct financing leases $ — $ 72 $ — $ 72 Retail 1,041 144 — 1,185 Dealer 109 13 — 122 Operating leases 5,023 500 — 5,523 Total revenues 6,173 729 — 6,902 Depreciation on operating leases 4,012 409 — 4,421 Interest expense 518 74 — 592 Realized (gains)/losses on derivatives and foreign currency denominated debt 4 27 (31 ) — Net revenues 1,639 219 31 1,889 Gain/(Loss) on disposition of lease vehicles 46 5 — 51 Other income 94 3 — 97 Total net revenues 1,779 227 31 2,037 Expenses: General and administrative expenses 356 47 — 403 Provision for credit losses 134 16 — 150 Early termination loss on operating leases 41 5 — 46 Impairment loss on operating leases 6 2 — 8 Loss on lease residual values — 13 — 13 (Gain)/Loss on derivative instruments — — (101 ) (101 ) (Gain)/Loss on foreign currency revaluation of debt — — 60 60 Income before income taxes $ 1,242 $ 144 $ 72 $ 1,458 March 31, 2016 Finance receivables, net $ 31,080 $ 4,713 $ — $ 35,793 Investment in operating leases, net 25,245 3,002 — 28,247 Total assets 58,813 7,840 — 66,653

Selected Quarterly Financial 38

Selected Quarterly Financial Data (Tables)	12 Months Ended
	Mar. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Financial Information	First Second Third Fourth Quarter Quarter Quarter Quarter Full Year (U.S. dollars in millions) Year ended March 31, 2018 Total revenues $ 2,041 $ 2,111 $ 2,140 $ 2,155 $ 8,447 Depreciation on operating leases 1,346 1,363 1,378 1,394 5,481 Interest expense 204 218 229 246 897 Other income 14 13 14 15 56 Total net revenues 534 577 555 552 2,218 Provision for credit losses 39 83 65 57 244 Early termination loss on operating leases 17 42 22 27 108 Net income 248 222 3,370 269 4,109 Net income attributable to American Honda Finance Corporation 221 192 3,349 247 4,009 Year ended March 31, 2017 Total revenues $ 1,846 $ 1,911 $ 1,953 $ 1,992 $ 7,702 Depreciation on operating leases 1,182 1,250 1,306 1,318 5,056 Interest expense 169 178 186 195 728 Other income 22 22 23 38 105 Total net revenues 536 504 484 542 2,066 Provision for credit losses 31 72 54 53 210 Early termination loss on operating leases 15 16 19 23 73 Net income 237 196 119 201 753 Net income attributable to American Honda Finance Corporation 223 178 98 184 683

Summary of Business and Signi39

Summary of Business and Significant Accounting Policies - Narrative (Detail)	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Business And Significant Accounting Policies [Line Items]
Majority owned percentage in HCFI	52.33%	52.33%
Retail loans and leases threshold delinquent percentage	10.00%
Retail loans and leases threshold days past due for automatic charge off	120 days
Minimum
Business And Significant Accounting Policies [Line Items]
Retail loan term	2 years
Lease term	2 years
Maximum
Business And Significant Accounting Policies [Line Items]
Retail loan term	6 years
Lease term	5 years

Finance Receivables - Summary o

Finance Receivables - Summary of Finance Receivables (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Accounts Notes And Loans Receivable [Line Items]
Finance receivables	$ 38,789	$ 36,519
Allowance for credit losses	(179)	(133)	$ (93)	$ (86)
Write-down of lease residual values	(9)	(16)
Unearned interest income and fees	(2)	(8)
Deferred dealer participation and other deferred costs	396	371
Unearned subsidy income	(1,039)	(829)
Finance receivables, net	37,956	35,904	35,793
Lease
Accounts Notes And Loans Receivable [Line Items]
Finance receivables	154	410
Allowance for credit losses	0	(1)	(2)	(2)
Write-down of lease residual values	(9)	(16)
Unearned interest income and fees	(2)	(8)
Deferred dealer participation and other deferred costs	0	0
Unearned subsidy income	(2)	(10)
Finance receivables, net	141	375
Retail
Accounts Notes And Loans Receivable [Line Items]
Finance receivables	33,140	31,103
Allowance for credit losses	(179)	(132)	(91)	(84)
Write-down of lease residual values	0	0
Unearned interest income and fees	0	0
Deferred dealer participation and other deferred costs	396	371
Unearned subsidy income	(1,037)	(819)
Finance receivables, net	32,320	30,523
Dealer
Accounts Notes And Loans Receivable [Line Items]
Finance receivables	5,495	5,006
Allowance for credit losses	0	0	$ 0	$ 0
Write-down of lease residual values	0	0
Unearned interest income and fees	0	0
Deferred dealer participation and other deferred costs	0	0
Unearned subsidy income	0	0
Finance receivables, net	$ 5,495	$ 5,006

Finance Receivables - Narrative

Finance Receivables - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Accounts Notes And Loans Receivable [Line Items]
Principal balance of finance receivables securitized	$ 9,100	$ 8,600
Uninsured portions of direct financing lease residual values	35	78
End of term charges included in the gain/loss on disposition of lease vehicles	$ 63	42	$ 27
Threshold delinquency period of nonperforming finance receivables	60 days
Dealer
Accounts Notes And Loans Receivable [Line Items]
Dealer loans modified as troubled debt restructurings	$ 0	$ 0	$ 0

Finance Receivables - Summary42

Finance Receivables - Summary of Contractual Maturities of Direct Financing Lease and Retail Loans (Detail) $ in Millions	Mar. 31, 2018USD ($)
Lease
Accounts Notes And Loans Receivable [Line Items]
2,019	$ 104
2,020	50
2,021	0
2,022	0
2,023	0
Thereafter	0
Total	154
Retail
Accounts Notes And Loans Receivable [Line Items]
2,019	9,520
2,020	8,123
2,021	6,651
2,022	4,963
2,023	2,900
Thereafter	983
Total	$ 33,140

Finance Receivables - Summary43

Finance Receivables - Summary of Activity in Allowance for Credit Losses of Finance Receivables Excluding Provisions Related to Past Due Operating Leases (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	$ 133	$ 93	$ 86
Provision	213	187	131
Charge-offs	(246)	(226)	(200)
Recoveries	79	79	76
Effect of translation adjustment	0	0	0
Ending balance	179	133	93
Individually evaluated for impairment	0	0	0
Collectively evaluated for impairment	179	133	93
Individually evaluated for impairment - Finance receivables	128	1	1
Collectively evaluated for impairment - Finance receivables	38,016	36,052	35,901
Lease
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	1	2	2
Provision	0	1	3
Charge-offs	(1)	(2)	(4)
Recoveries	0	0	1
Effect of translation adjustment	0	0	0
Ending balance	0	1	2
Individually evaluated for impairment	0	0	0
Collectively evaluated for impairment	0	1	2
Individually evaluated for impairment - Finance receivables	0	0	0
Collectively evaluated for impairment - Finance receivables	150	392	953
Retail
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	132	91	84
Provision	211	186	129
Charge-offs	(243)	(224)	(196)
Recoveries	79	79	74
Effect of translation adjustment	0	0	0
Ending balance	179	132	91
Individually evaluated for impairment	0	0	0
Collectively evaluated for impairment	179	132	91
Individually evaluated for impairment - Finance receivables	0	0	0
Collectively evaluated for impairment - Finance receivables	32,499	30,655	30,178
Dealer
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	0	0	0
Provision	2	0	(1)
Charge-offs	(2)	0	0
Recoveries	0	0	1
Effect of translation adjustment	0	0	0
Ending balance	0	0	0
Individually evaluated for impairment	0	0	0
Collectively evaluated for impairment	0	0	0
Individually evaluated for impairment - Finance receivables	128	1	1
Collectively evaluated for impairment - Finance receivables	$ 5,367	$ 5,005	$ 4,770

Finance Receivables - Summary44

Finance Receivables - Summary of Aging Analysis of Past Due Finance Receivables (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	$ 327	$ 275
Current or less than 30 days past due	37,817	35,778
Total finance receivables	38,144	36,053
Financing Receivables, 30 – 59 days past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	261	225
Financing Receivables, 60 - 89 days past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	50	39
Financing Receivables, 90 days or greater past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	16	11
Retail
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	320	268
Current or less than 30 days past due	32,179	30,387
Total finance receivables	32,499	30,655
Retail | New auto
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	233	195
Current or less than 30 days past due	27,034	25,785
Total finance receivables	27,267	25,980
Retail | Used and certified auto
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	72	58
Current or less than 30 days past due	3,967	3,474
Total finance receivables	4,039	3,532
Retail | Motorcycle and other
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	15	15
Current or less than 30 days past due	1,178	1,128
Total finance receivables	1,193	1,143
Retail | Financing Receivables, 30 – 59 days past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	257	220
Retail | Financing Receivables, 30 – 59 days past due | New auto
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	188	162
Retail | Financing Receivables, 30 – 59 days past due | Used and certified auto
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	59	48
Retail | Financing Receivables, 30 – 59 days past due | Motorcycle and other
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	10	10
Retail | Financing Receivables, 60 - 89 days past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	49	37
Retail | Financing Receivables, 60 - 89 days past due | New auto
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	35	26
Retail | Financing Receivables, 60 - 89 days past due | Used and certified auto
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	11	8
Retail | Financing Receivables, 60 - 89 days past due | Motorcycle and other
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	3	3
Retail | Financing Receivables, 90 days or greater past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	14	11
Retail | Financing Receivables, 90 days or greater past due | New auto
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	10	7
Retail | Financing Receivables, 90 days or greater past due | Used and certified auto
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	2	2
Retail | Financing Receivables, 90 days or greater past due | Motorcycle and other
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	2	2
Direct financing leases
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	2	5
Current or less than 30 days past due	148	387
Total finance receivables	150	392
Direct financing leases | Financing Receivables, 30 – 59 days past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	2	3
Direct financing leases | Financing Receivables, 60 - 89 days past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	0	2
Direct financing leases | Financing Receivables, 90 days or greater past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	0	0
Dealer
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	5	2
Current or less than 30 days past due	5,490	5,004
Total finance receivables	5,495	5,006
Dealer | Wholesale flooring
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	5	2
Current or less than 30 days past due	4,447	4,098
Total finance receivables	4,452	4,100
Dealer | Commercial loans
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	0	0
Current or less than 30 days past due	1,043	906
Total finance receivables	1,043	906
Dealer | Financing Receivables, 30 – 59 days past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	2	2
Dealer | Financing Receivables, 30 – 59 days past due | Wholesale flooring
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	2	2
Dealer | Financing Receivables, 30 – 59 days past due | Commercial loans
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	0	0
Dealer | Financing Receivables, 60 - 89 days past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	1	0
Dealer | Financing Receivables, 60 - 89 days past due | Wholesale flooring
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	1	0
Dealer | Financing Receivables, 60 - 89 days past due | Commercial loans
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	0	0
Dealer | Financing Receivables, 90 days or greater past due
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	2	0
Dealer | Financing Receivables, 90 days or greater past due | Wholesale flooring
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	2	0
Dealer | Financing Receivables, 90 days or greater past due | Commercial loans
Financing Receivable Recorded Investment Past Due [Line Items]
Total past due	$ 0	$ 0

Finance Receivables - Summary45

Finance Receivables - Summary of Portfolio of Retail Loans and Direct Financing Leases by Credit Quality Indicator (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Retail | New auto
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	$ 27,267	$ 25,980
Retail | New auto | Performing Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	27,222	25,947
Retail | New auto | Nonperforming Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	45	33
Retail | Used and certified auto
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	4,039	3,532
Retail | Used and certified auto | Performing Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	4,026	3,522
Retail | Used and certified auto | Nonperforming Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	13	10
Retail | Motorcycle and other
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	1,193	1,143
Retail | Motorcycle and other | Performing Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	1,188	1,138
Retail | Motorcycle and other | Nonperforming Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	5	5
Direct financing leases
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	150	392
Direct financing leases | Performing Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	150	390
Direct financing leases | Nonperforming Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables		2
Total consumer finance receivables
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	32,649	31,047
Total consumer finance receivables | Performing Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	32,586	30,997
Total consumer finance receivables | Nonperforming Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Consumer finance receivables	$ 63	$ 50

Finance Receivables - Summary46

Finance Receivables - Summary of Outstanding Dealer Loans by Grouping (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Financing Receivable Recorded Investment [Line Items]
Dealer finance receivables	$ 5,495	$ 5,006
Wholesale flooring
Financing Receivable Recorded Investment [Line Items]
Dealer finance receivables	4,452	4,100
Commercial loans
Financing Receivable Recorded Investment [Line Items]
Dealer finance receivables	1,043	906
Group A
Financing Receivable Recorded Investment [Line Items]
Dealer finance receivables	3,475	3,317
Group A | Wholesale flooring
Financing Receivable Recorded Investment [Line Items]
Dealer finance receivables	2,791	2,689
Group A | Commercial loans
Financing Receivable Recorded Investment [Line Items]
Dealer finance receivables	684	628
Group B
Financing Receivable Recorded Investment [Line Items]
Dealer finance receivables	2,020	1,689
Group B | Wholesale flooring
Financing Receivable Recorded Investment [Line Items]
Dealer finance receivables	1,661	1,411
Group B | Commercial loans
Financing Receivable Recorded Investment [Line Items]
Dealer finance receivables	$ 359	$ 278

Investment in Operating Lease47

Investment in Operating Leases - Schedule of Investment in Operating Leases (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Leases [Abstract]
Operating lease vehicles	$ 41,285	$ 39,684
Accumulated depreciation	(8,169)	(7,136)
Deferred dealer participation and other deferred costs	117	118
Unearned subsidy income	(1,317)	(1,285)
Estimated early termination losses	(99)	(71)
Investment in operating leases, net	$ 31,817	$ 31,310	$ 28,247

Investment in Operating Lease48

Investment in Operating Leases - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Operating leases [Abstract]
Estimated early termination losses on operating leases	$ 27	$ 22	$ 42	$ 17	$ 23	$ 19	$ 16	$ 15	$ 108	$ 73	$ 46
Actual early termination net losses realized on operating leases									80	62	44
Provision for credit losses on operating leases									31	23	19
Impairment loss on operating leases									$ 0	$ 0	$ 8

Investment in Operating Lease49

Investment in Operating Leases - Future Minimum Rental Payments (Detail) $ in Millions	Mar. 31, 2018USD ($)
Year ending March 31:
2,019	$ 5,342
2,020	3,358
2,021	1,290
2,022	224
2,023	40
Total	$ 10,254

Debt - Schedule of Outstanding

Debt - Schedule of Outstanding Debt Net of Discounts and Fees, Weighted Average Contractual Interest Rates and Range of Contractual Interest Rates (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Debt Instrument [Line Items]
Unsecured debt	$ 39,128	$ 37,805
Total debt	47,861	46,227
Commercial Paper
Debt Instrument [Line Items]
Unsecured debt	$ 5,167	$ 4,462
Weighted average contractual interest rate	1.86%	0.99%
Commercial Paper | Minimum
Debt Instrument [Line Items]
Contractual interest rate range	1.07%	0.78%
Commercial Paper | Maximum
Debt Instrument [Line Items]
Contractual interest rate range	2.21%	1.15%
Related Party Debt
Debt Instrument [Line Items]
Unsecured debt	$ 1,085	$ 1,201
Weighted average contractual interest rate	1.64%	0.95%
Related Party Debt | Minimum
Debt Instrument [Line Items]
Contractual interest rate range	1.43%	0.93%
Related Party Debt | Maximum
Debt Instrument [Line Items]
Contractual interest rate range	1.72%	0.96%
Bank Loans
Debt Instrument [Line Items]
Unsecured debt	$ 5,419	$ 5,883
Weighted average contractual interest rate	2.48%	1.65%
Bank Loans | Minimum
Debt Instrument [Line Items]
Contractual interest rate range	2.02%	1.28%
Bank Loans | Maximum
Debt Instrument [Line Items]
Contractual interest rate range	3.15%	2.00%
Private MTN Program
Debt Instrument [Line Items]
Unsecured debt	$ 1,698	$ 2,946
Weighted average contractual interest rate	5.40%	3.77%
Private MTN Program | Minimum
Debt Instrument [Line Items]
Contractual interest rate range	3.80%	1.50%
Private MTN Program | Maximum
Debt Instrument [Line Items]
Contractual interest rate range	7.63%	7.63%
Public MTN Program
Debt Instrument [Line Items]
Unsecured debt	$ 21,398	$ 19,491
Weighted average contractual interest rate	1.92%	1.63%
Public MTN Program | Minimum
Debt Instrument [Line Items]
Contractual interest rate range	0.07%	0.07%
Public MTN Program | Maximum
Debt Instrument [Line Items]
Contractual interest rate range	3.50%	2.90%
Euro MTN Programme
Debt Instrument [Line Items]
Unsecured debt	$ 1,111	$ 1,086
Weighted average contractual interest rate	1.95%	1.83%
Euro MTN Programme | Minimum
Debt Instrument [Line Items]
Contractual interest rate range	1.88%	1.52%
Euro MTN Programme | Maximum
Debt Instrument [Line Items]
Contractual interest rate range	2.33%	2.23%
Other Debt
Debt Instrument [Line Items]
Unsecured debt	$ 3,250	$ 2,736
Weighted average contractual interest rate	2.20%	1.90%
Other Debt | Minimum
Debt Instrument [Line Items]
Contractual interest rate range	1.63%	1.28%
Other Debt | Maximum
Debt Instrument [Line Items]
Contractual interest rate range	2.76%	2.35%
Secured Debt
Debt Instrument [Line Items]
Secured debt	$ 8,733	$ 8,422
Weighted average contractual interest rate	1.74%	1.24%
Secured Debt | Minimum
Debt Instrument [Line Items]
Contractual interest rate range	1.04%	0.77%
Secured Debt | Maximum
Debt Instrument [Line Items]
Contractual interest rate range	2.83%	2.05%

Debt - Narrative (Detail)

Debt - Narrative (Detail) - USD ($)	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Debt Instrument [Line Items]
Outstanding principal balance of long-term debt with floating interest rates	$ 13,200,000,000	$ 12,200,000,000
Outstanding principal balance of long-term debt with fixed interest rates	27,800,000,000	27,900,000,000
Short-term debt	7,000,000,000	6,200,000,000
AHFC
Debt Instrument [Line Items]
Related party interest expense incurred		3,000,000	$ 3,000,000
Related party notes outstanding	0
Related party notes issued		0
AHFC | Syndicated Bank Credit Facilities With 364 Day Credit Agreement
Debt Instrument [Line Items]
Line of credit facility current borrowing capacity	$ 3,500,000,000
Debt instrument, term	364 days
Line of credit facility expiration date	Mar. 1, 2019
AHFC | Syndicated Bank Credit Facilities With Three Year Credit Agreement
Debt Instrument [Line Items]
Line of credit facility current borrowing capacity	$ 2,100,000,000
Debt instrument, term	3 years
Line of credit facility expiration date	Mar. 3, 2021
AHFC | Syndicated Bank Credit Facilities With Five Year Credit Agreement
Debt Instrument [Line Items]
Line of credit facility current borrowing capacity	$ 1,400,000,000
Debt instrument, term	5 years
Line of credit facility expiration date	Mar. 3, 2023
AHFC | Syndicated Bank Credit Facilities
Debt Instrument [Line Items]
Line of credit facility outstanding amount	$ 0
AHFC | Other Credit Agreements
Debt Instrument [Line Items]
Maximum funds available	1,000,000,000
Line of credit facility outstanding amount	$ 0
Line of credit facility agreement expiration date	2018-09
HCFI
Debt Instrument [Line Items]
Related party interest expense incurred	$ 14,000,000	12,000,000	$ 13,000,000
HCFI | Syndicated Bank Credit Facilities
Debt Instrument [Line Items]
Maximum funds available	620,000,000
Line of credit facility current borrowing capacity	1,200,000,000
Line of credit facility outstanding amount	$ 0
HCFI | Syndicated Bank Credit Facilities With One Year Revolving Term
Debt Instrument [Line Items]
Debt instrument, term	1 year
Line of credit facility expiration date	Mar. 24, 2019
HCFI | Syndicated Bank Credit Facilities With Five Year Revolving Term
Debt Instrument [Line Items]
Maximum funds available	$ 620,000,000
Debt instrument, term	5 years
Line of credit facility expiration date	Mar. 24, 2023
Commercial Paper
Debt Instrument [Line Items]
Maximum funds available	$ 8,600,000,000	8,500,000,000
Average outstanding balance	5,600,000,000	5,800,000,000
Maximum balance outstanding at any month-end	6,200,000,000	$ 6,600,000,000
Public MTN Program
Debt Instrument [Line Items]
Maximum funds available	$ 30,000,000,000

Debt - Scheduled and Projected

Debt - Scheduled and Projected Maturities of Debt (Detail) $ in Millions	Mar. 31, 2018USD ($)
Debt Instrument [Line Items]
2,019	$ 19,329	[1]
2,020	10,187	[1]
2,021	6,763	[1]
2,022	5,151	[1]
2,023	4,333	[1]
Thereafter	2,194	[1]
Total debt	47,957	[1]
Unamortized discounts/fees	(96)
Total debt	47,861
Commercial Paper
Debt Instrument [Line Items]
2,019	5,178
Total debt	5,178
Related Party Debt
Debt Instrument [Line Items]
2,019	1,085
Total debt	1,085
Bank Loans
Debt Instrument [Line Items]
2,019	771
2,020	1,494
2,021	1,078
2,022	1,310
2,023	697
Thereafter	78
Total debt	5,428
Private MTN Program
Debt Instrument [Line Items]
2,019	700
2,021	500
2,022	500
Total debt	1,700
Public MTN Program
Debt Instrument [Line Items]
2,019	6,116
2,020	4,700
2,021	3,100
2,022	2,791
2,023	2,630
Thereafter	2,116
Total debt	21,453
Euro MTN Programme
Debt Instrument [Line Items]
2,019	160
2,020	924
2,023	28
Total debt	1,112
Other Debt
Debt Instrument [Line Items]
2,019	659
2,020	465
2,021	892
2,022	310
2,023	930
Total debt	3,256
Total Unsecured
Debt Instrument [Line Items]
2,019	14,669
2,020	7,583
2,021	5,570
2,022	4,911
2,023	4,285
Thereafter	2,194
Total debt	39,212
Secured Debt
Debt Instrument [Line Items]
2,019	4,660	[2]
2,020	2,604	[2]
2,021	1,193	[2]
2,022	240	[2]
2,023	48	[2]
Total debt	$ 8,745	[2]
[1]	Principal amounts.
[2]	Projected repayment schedule of secured debt. Reflects payment performance assumptions on underlying receivables.

Derivative Instruments - Notion

Derivative Instruments - Notional Balances and Fair Values of Derivatives (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Derivatives Fair Value [Line Items]
Gross derivative assets	$ 750	$ 249
Counterparty netting, Assets	(372)	(179)
Net derivative assets	378	70
Gross derivative liabilities	414	449
Counterparty netting, Liabilities	(371)	(179)
Net derivative liabilities	43	270
Interest rate swaps
Derivatives Fair Value [Line Items]
Notional balances	56,043	54,664
Gross derivative assets	465	237
Gross derivative liabilities	342	193
Cross currency swaps
Derivatives Fair Value [Line Items]
Notional balances	4,310	3,694
Gross derivative assets	285	12
Gross derivative liabilities	$ 72	$ 256

Derivative Instruments - Income

Derivative Instruments - Income Statement Impact of Derivative Instruments (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments Gain Loss [Line Items]
Total gain/(loss) on derivative instruments	$ 550	$ (315)	$ 101
Interest rate swaps
Derivative Instruments Gain Loss [Line Items]
Total gain/(loss) on derivative instruments	126	(87)	(8)
Cross currency swaps
Derivative Instruments Gain Loss [Line Items]
Total gain/(loss) on derivative instruments	$ 424	$ (228)	$ 109

Transactions Involving Relate55

Transactions Involving Related Parties - Summary of Income Statement Impact of Transactions with Parent and Affiliated Companies (Detail) - Affiliated Entity - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Subsidy income	$ 1,441	$ 1,232	$ 1,076
Interest expense:
Related party debt	14	15	16
Other income, net:
VSC administration fees	107	103	98
Support Service Fee	(28)	0	0
General and administrative expenses:
Support Compensation Agreement fees	22	20	18
Benefit plan expenses	11	11	9
Shared services	$ 62	$ 60	$ 58

Transactions Involving Relate56

Transactions Involving Related Parties - Summary of Balance Sheet Impact of Transactions with Parent and Affiliated Companies (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Investment in operating leases, net:
Due from Parent and affiliated companies	$ 139	$ 228
Debt:
Related party debt	1,085	1,201
Due to Parent and affiliated companies	87	91
Affiliated Entity
Finance receivables, net:
Unearned subsidy income	(1,030)	(820)
Investment in operating leases, net:
Unearned subsidy income	(1,313)	(1,281)
Due from Parent and affiliated companies	139	228
Debt:
Related party debt	1,085	1,201
Due to Parent and affiliated companies	87	91
Accrued interest expense:
Related party debt	3	2
Other liabilities:
VSC unearned administrative fees	396	394
Accrued benefit expenses	$ 71	$ 66

Transactions Involving Relate57

Transactions Involving Related Parties - Narrative (Detail) - USD ($)	1 Months Ended	6 Months Ended		12 Months Ended
	Apr. 30, 2017	Mar. 31, 2018	Sep. 30, 2017	Mar. 31, 2018	Mar. 31, 2017
Related Party Transaction [Line Items]
Declared and paid cash dividend				$ 347,000,000
AHSCC
Related Party Transaction [Line Items]
Sale of common stock issued and outstanding to AHM	$ 36,000,000
AHFC
Related Party Transaction [Line Items]
Related party notes outstanding		$ 0		$ 0
AHFC | Honda Motor Co., Ltd.
Related Party Transaction [Line Items]
Honda Motor Company required ownership interest		80.00%		80.00%
HCFI | Honda Motor Co., Ltd.
Related Party Transaction [Line Items]
Honda Motor Company required ownership interest		80.00%		80.00%
AHM
Related Party Transaction [Line Items]
Compensating funds from parent for waived rental payments of returned lease vehicles				$ 19,000,000	$ 6,000,000
Compensation cost paid related to disposition of affected vehicles					3,000,000
Declared and paid cash dividend		$ 206,000,000	$ 141,000,000		0
HCI
Related Party Transaction [Line Items]
Compensation cost received resulting from delay in disposition of affected vehicles					$ 6,000,000

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Detail) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Income Taxes [Line Items]
Federal income tax rate	21.00%	35.00%	31.55%	35.00%	35.00%
Measurement period adjustment to reflect change in temporary differences			$ 51,000,000
Tax benefit from re-measurement of deferred taxes			2,970,000,000
Effect of phased-in tax rate			209,000,000
Measurement period adjustment to reflect updated Treasury guidance			27,000,000
Provisional transition tax			52,000,000
Re-measurement of deferred tax assets and liabilities			(3,179,000,000)
Increase or decrease in translation adjustments of deferred tax liabilities			8,000,000	$ (5,000,000)	$ (5,000,000)
Accumulated undistributed earnings of HCFI	$ 844,000,000		844,000,000
Unrecognized deferred tax liability from undistributed foreign earnings	73,000,000		73,000,000
State loss carryforwards	47,000,000		47,000,000	$ 60,000,000	60,000,000
Net operating loss carryforwards expiration period				Mar. 31, 2037
Net deferred tax assets	388,000,000		388,000,000	$ 534,000,000
Unrecognized tax benefits, net of federal benefit of state taxes, would affect the effective tax	21,000,000		21,000,000	21,000,000	15,000,000
Uncertain tax positions	10,000,000		10,000,000	14,000,000
Interest (paid)/received from income tax settlements	0		0	0
Accrued interest payable attributable to income taxes	$ 2,000,000		2,000,000	3,000,000	3,000,000
Maximum
Income Taxes [Line Items]
Income tax-related interest expense/(income)			$ (1,000,000)	$ 1,000,000
Interest (paid)/received from income tax settlements					$ 1,000,000

Income Taxes - Consolidated Inc

Income Taxes - Consolidated Income Tax Expense/(Benefit) (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Current:
Federal	$ 45	$ (265)	$ (428)
State and local	45	(18)	(15)
Foreign	49	32	22
Total current	139	(251)	(421)
Deferred:
Federal	(2,838)	596	861
State and local	43	72	88
Foreign	27	20	20
Total deferred	(2,768)	688	969
Income Tax Expense (Benefit):
Federal	(2,793)	331	433
State and local	88	54	73
Foreign	76	52	42
Total Income Tax Expense (Benefit)	$ (2,629)	$ 437	$ 548

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of the Expected Income Tax Expense to the Reported Income Tax Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Reconciliation of the expected income tax expense to the reported income tax expense
Computed “expected” income taxes	$ 467	$ 416	$ 510
Foreign tax rate differential	(14)	(17)	(13)
Effect of foreign dividends and foreign tax credit	(10)	4	3
State and local income taxes, net of federal income tax benefit	49	40	47
Change in valuation allowance	0	(5)	5
Change in estimated state tax rate, net of federal income tax benefit	(5)	(8)	21
Change in unrecognized tax benefit	(1)	0	(6)
Effect of state tax law changes	13	10	(16)
Effect of Tax Act	(3,127)
Other	(1)	(3)	(3)
Total Income Tax Expense (Benefit)	$ (2,629)	$ 437	$ 548

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Deferred tax assets:
State income tax	$ 192	$ 294
Receivable valuation	97	90
Accrued postretirement	14	21
State loss carryforwards	47	60	$ 60
Other assets	38	69
Total gross deferred tax assets	388	534
Less valuation allowance	0	0
Net deferred tax assets	388	534
Deferred tax liabilities:
HCFI leases	319	274
AHFC leases	6,035	8,949
Derivatives	17	24
Securitizations	10	9
Other	42	70
Total gross deferred tax liabilities	6,423	9,326
Net deferred tax liabilities	$ 6,035	$ 8,792

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward
Balance, beginning of year	$ 21	$ 16	$ 21
Additions for current year tax positions	0	0	0
Additions for prior year tax positions	1	5	0
Reductions for prior year tax positions	0	0	(10)
Settlements	0	0	5
Reductions related to a lapse in the statute of limitations	0	0	0
Foreign currency translation	0	0	0
Balance, end of year	$ 22	$ 21	$ 16

Benefit Plans - Narrative (Deta

Benefit Plans - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Compensation And Retirement Disclosure [Abstract]
Defined benefit plan, administrative expenses	$ 6	$ 6	$ 6
Defined contribution plan, administrative expenses	8	7	7
Postretirement benefit plan, administrative expenses	$ 5	$ 5	$ 3

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Commitments And Contingencies Disclosure [Line Items]
Lease expense	$ 9	$ 10	$ 10
Revolving lines of credit
Commitments And Contingencies Disclosure [Line Items]
Unused balance of commercial revolving lines of credit	189
Construction of auto dealerships
Commitments And Contingencies Disclosure [Line Items]
Remaining unfunded balance for construction loans	$ 33

Commitments and Contingencies65

Commitments and Contingencies - Annual Minimum Lease Commitments Attributable to Long-Term Noncancelable Operating Leases (Detail) $ in Millions	Mar. 31, 2018USD ($)
Operating leases future minimum payments due
2,019	$ 9
2,020	10
2,021	10
2,022	9
2,023	9
Thereafter	32
Total	$ 79

Securitizations and Variable 66

Securitizations and Variable Interest Entities - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract]
Asset-backed securitization notes issued during period	$ 5,200	$ 5,700
Initial receivable principal balance underlying asset-backed securitization notes issued during period	5,800	6,300
Cash to be remitted to trusts	$ 466	$ 462

Securitizations and Variable 67

Securitizations and Variable Interest Entities - Schedule of Carrying Amounts of Assets and Liabilities of Consolidated Securitization Trusts (Detail) - USD ($) $ in Millions		Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Assets:
Finance receivables		$ 38,789	$ 36,519
Allowance for credit losses		(179)	(133)	$ (93)	$ (86)
Finance receivables, net		37,956	35,904	35,793
Vehicles held for disposition		231	255
Restricted cash		443	382
Total assets		72,626	69,854	$ 66,653
Liabilities:
Unamortized discounts and fees		(96)
Accrued interest expense		146	120
Total liabilities		56,030	57,068
Consolidated variable interest entities
Assets:
Finance receivables		9,112	8,649
Unamortized costs and subsidy income, net		(203)	(125)
Allowance for credit losses		(14)	(12)
Finance receivables, net		8,895	8,512
Vehicles held for disposition		4	3
Restricted cash	[1]	443	358
Accrued interest receivable	[1]	9	9
Total assets		9,351	8,882
Liabilities:
Secured debt		8,745	8,435
Unamortized discounts and fees		(12)	(13)
Secured debt, net		8,733	8,422
Accrued interest expense		6	4
Total liabilities		$ 8,739	$ 8,426
[1]	Included with other assets in the Company’s consolidated balance sheets (Note 11).

Other Assets - Schedule of Othe

Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Interest receivable and other assets	$ 84	$ 76
Other receivables	144	148
Deferred expense	122	171
Software, net of accumulated amortization of $146 and $138 as of March 31, 2018 and 2017, respectively	33	33
Property and equipment, net of accumulated depreciation of $20 and $17 as of March 31, 2018 and 2017, respectively	6	8
Restricted cash	443	382
Other miscellaneous assets	102	74
Total	$ 934	$ 892

Other Assets - Schedule of Ot69

Other Assets - Schedule of Other Assets (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Software, Accumulated amortization	$ 146	$ 138
Property and equipment, Accumulated depreciation	$ 20	$ 17

Other Assets - Narrative (Detai

Other Assets - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Other Assets [Line Items]
Depreciation and amortization	$ 5,491	$ 5,063	$ 4,426
Minimum
Other Assets [Line Items]
Assets estimated useful life	3 years
Maximum
Other Assets [Line Items]
Assets estimated useful life	5 years
General and administrative expenses
Other Assets [Line Items]
Depreciation and amortization	$ 10	$ 7	$ 5

Other Liabilities - Components

Other Liabilities - Components of Other Liabilities (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Dealer payables	$ 174	$ 148
Accounts payable and accrued expenses	363	313
Lease security deposits	78	66
Unearned income, operating lease	347	330
Uncertain tax positions	10	14
Other liabilities	14	124
Total	1,382	1,389
Affiliated Entity
VSC unearned administrative fees	$ 396	$ 394

Other Income, Net - Components

Other Income, Net - Components of Other Income (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Other income, net:
Other, net									$ (51)	$ 2	$ (1)
Total	$ 15	$ 14	$ 13	$ 14	$ 38	$ 23	$ 22	$ 22	56	105	97
Affiliated Entity
Other income, net:
VSC administration									$ 107	$ 103	$ 98

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Fair Value Hierarchy of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Derivative instruments:
Assets measured at fair value	$ 750	$ 249
Liabilities measured at fair value	414	449
Level 1
Derivative instruments:
Assets measured at fair value	0	0
Liabilities measured at fair value	0	0
Level 2
Derivative instruments:
Assets measured at fair value	750	249
Liabilities measured at fair value	414	449
Level 3
Derivative instruments:
Assets measured at fair value	0	0
Liabilities measured at fair value	0	0
Interest rate swaps
Derivative instruments:
Assets measured at fair value	465	237
Liabilities measured at fair value	342	193
Interest rate swaps | Level 1
Derivative instruments:
Assets measured at fair value	0	0
Liabilities measured at fair value	0	0
Interest rate swaps | Level 2
Derivative instruments:
Assets measured at fair value	465	237
Liabilities measured at fair value	342	193
Interest rate swaps | Level 3
Derivative instruments:
Assets measured at fair value	0	0
Liabilities measured at fair value	0	0
Cross currency swaps
Derivative instruments:
Assets measured at fair value	285	12
Liabilities measured at fair value	72	256
Cross currency swaps | Level 1
Derivative instruments:
Assets measured at fair value	0	0
Liabilities measured at fair value	0	0
Cross currency swaps | Level 2
Derivative instruments:
Assets measured at fair value	285	12
Liabilities measured at fair value	72	256
Cross currency swaps | Level 3
Derivative instruments:
Assets measured at fair value	0	0
Liabilities measured at fair value	$ 0	$ 0

Fair Value Measurements - Sum74

Fair Value Measurements - Summary of Nonrecurring Fair Value Measurements (Detail) - Nonrecurring - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Vehicles held for disposition	$ 170	$ 166
Lower-of-cost or fair value adjustment
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Vehicles held for disposition	31	29
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	$ 170	$ 166

Fair Value Measurements - Sum75

Fair Value Measurements - Summary of Carrying Values and Fair Values of Financial Instruments Except for those Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Assets:
Cash and cash equivalents	$ 783	$ 760	$ 658	$ 634
Dealer loans, net	5,495	5,006
Retail loans, net	32,320	30,523
Restricted cash	443	382
Liabilities:
Commercial paper	5,167	4,462
Related party debt	1,085	1,201
Bank loans	5,419	5,883
Medium term note programs	24,207	23,523
Other debt	3,250	2,736
Secured Debt
Liabilities:
Secured debt	8,733	8,422
Fair value
Assets:
Cash and cash equivalents	783	760
Dealer loans, net	5,299	4,837
Retail loans, net	32,295	30,724
Restricted cash	443	382
Liabilities:
Commercial paper	5,167	4,462
Related party debt	1,085	1,202
Bank loans	5,480	5,939
Medium term note programs	24,176	23,723
Other debt	3,229	2,761
Secured debt	8,683	8,411
Fair value | Level 1
Assets:
Cash and cash equivalents	783	760
Dealer loans, net	0	0
Retail loans, net	0	0
Restricted cash	443	382
Liabilities:
Commercial paper	0	0
Related party debt	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:
Cash and cash equivalents	0	0
Dealer loans, net	0	0
Retail loans, net	0	0
Restricted cash	0	0
Liabilities:
Commercial paper	5,167	4,462
Related party debt	1,085	1,202
Bank loans	5,480	5,939
Medium term note programs	24,176	23,723
Other debt	3,229	2,761
Secured debt	8,683	8,411
Fair value | Level 3
Assets:
Cash and cash equivalents	0	0
Dealer loans, net	5,299	4,837
Retail loans, net	32,295	30,724
Restricted cash	0	0
Liabilities:
Commercial paper	0	0
Related party debt	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) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Direct financing leases									$ 13	$ 34	$ 72
Retail									1,369	1,188	1,185
Dealer									175	147	122
Operating leases									6,890	6,333	5,523
Total revenues	$ 2,155	$ 2,140	$ 2,111	$ 2,041	$ 1,992	$ 1,953	$ 1,911	$ 1,846	8,447	7,702	6,902
Depreciation on operating leases	1,394	1,378	1,363	1,346	1,318	1,306	1,250	1,182	5,481	5,056	4,421
Interest expense	246	229	218	204	195	186	178	169	897	728	592
Realized (gains)/losses on derivatives and foreign currency denominated debt									0	0	0
Net revenues									2,069	1,918	1,889
Gain/(Loss) on disposition of lease vehicles									93	43	51
Other income	15	14	13	14	38	23	22	22	56	105	97
Total net revenues	552	555	577	534	542	484	504	536	2,218	2,066	2,037
Expenses:
General and administrative expenses									439	434	403
Provision for credit losses	57	65	83	39	53	54	72	31	244	210	150
Early termination loss on operating leases	27	$ 22	$ 42	$ 17	23	$ 19	$ 16	$ 15	108	73	46
Impairment loss on operating leases									0	0	8
Loss on lease residual values									3	15	13
(Gain)/Loss on derivative instruments									(550)	315	(101)
(Gain)/Loss on foreign currency revaluation of debt									494	(171)	60
Income before income taxes									1,480	1,190	1,458
Assets
Finance receivables, net	37,956				35,904				37,956	35,904	35,793
Investment in operating leases, net	31,817				31,310				31,817	31,310	28,247
Total assets	72,626				69,854				72,626	69,854	66,653
Valuation adjustments and reclassifications
Revenues:
Direct financing leases									0	0	0
Retail									0	0	0
Dealer									0	0	0
Operating leases									0	0	0
Total revenues									0	0	0
Depreciation on operating leases									0	0	0
Interest expense									0	0	0
Realized (gains)/losses on derivatives and foreign currency denominated debt									14	18	(31)
Net revenues									(14)	(18)	31
Gain/(Loss) on disposition of lease vehicles									0	0	0
Other income									0	0	0
Total net revenues									(14)	(18)	31
Expenses:
General and administrative expenses									0	0	0
Provision for credit losses									0	0	0
Early termination loss on operating leases									0	0	0
Impairment loss on operating leases											0
Loss on lease residual values									0	0	0
(Gain)/Loss on derivative instruments									(550)	315	(101)
(Gain)/Loss on foreign currency revaluation of debt									494	(171)	60
Income before income taxes									42	(162)	72
Assets
Finance receivables, net	0				0				0	0	0
Investment in operating leases, net	0				0				0	0	0
Total assets	0				0				0	0	0
United States | Operating Segments
Revenues:
Direct financing leases									0	0	0
Retail									1,181	1,030	1,041
Dealer									158	133	109
Operating leases									5,815	5,547	5,023
Total revenues									7,154	6,710	6,173
Depreciation on operating leases									4,598	4,403	4,012
Interest expense									770	638	518
Realized (gains)/losses on derivatives and foreign currency denominated debt									(13)	(35)	4
Net revenues									1,799	1,704	1,639
Gain/(Loss) on disposition of lease vehicles									66	24	46
Other income									50	100	94
Total net revenues									1,915	1,828	1,779
Expenses:
General and administrative expenses									384	383	356
Provision for credit losses									239	199	134
Early termination loss on operating leases									105	67	41
Impairment loss on operating leases											6
Loss on lease residual values									0	0	0
(Gain)/Loss on derivative instruments									0	0	0
(Gain)/Loss on foreign currency revaluation of debt									0	0	0
Income before income taxes									1,187	1,179	1,242
Assets
Finance receivables, net	33,311				31,447				33,311	31,447	31,080
Investment in operating leases, net	27,040				27,380				27,040	27,380	25,245
Total assets	62,976				61,328				62,976	61,328	58,813
Canada | Operating Segments
Revenues:
Direct financing leases									13	34	72
Retail									188	158	144
Dealer									17	14	13
Operating leases									1,075	786	500
Total revenues									1,293	992	729
Depreciation on operating leases									883	653	409
Interest expense									127	90	74
Realized (gains)/losses on derivatives and foreign currency denominated debt									(1)	17	27
Net revenues									284	232	219
Gain/(Loss) on disposition of lease vehicles									27	19	5
Other income									6	5	3
Total net revenues									317	256	227
Expenses:
General and administrative expenses									55	51	47
Provision for credit losses									5	11	16
Early termination loss on operating leases									3	6	5
Impairment loss on operating leases											2
Loss on lease residual values									3	15	13
(Gain)/Loss on derivative instruments									0	0	0
(Gain)/Loss on foreign currency revaluation of debt									0	0	0
Income before income taxes									251	173	144
Assets
Finance receivables, net	4,645				4,457				4,645	4,457	4,713
Investment in operating leases, net	4,777				3,930				4,777	3,930	3,002
Total assets	$ 9,650				$ 8,526				$ 9,650	$ 8,526	$ 7,840

Selected Quarterly Financial 77

Selected Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Selected Quarterly Financial Data (Unaudited)
Total revenues	$ 2,155	$ 2,140	$ 2,111	$ 2,041	$ 1,992	$ 1,953	$ 1,911	$ 1,846	$ 8,447	$ 7,702	$ 6,902
Depreciation on operating leases	1,394	1,378	1,363	1,346	1,318	1,306	1,250	1,182	5,481	5,056	4,421
Interest expense	246	229	218	204	195	186	178	169	897	728	592
Other income	15	14	13	14	38	23	22	22	56	105	97
Total net revenues	552	555	577	534	542	484	504	536	2,218	2,066	2,037
Provision for credit losses	57	65	83	39	53	54	72	31	244	210	150
Early termination loss on operating leases	27	22	42	17	23	19	16	15	108	73	46
Net income	269	3,370	222	248	201	119	196	237	4,109	753	910
Net income attributable to American Honda Finance Corporation	$ 247	$ 3,349	$ 192	$ 221	$ 184	$ 98	$ 178	$ 223	$ 4,009	$ 683	$ 856