Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 30, 2018 | Sep. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2018 | ||
Amendment Flag | false | ||
Entity Registrant Name | Toyota Motor Credit Corporation | ||
Entity Central Index Key | 834,071 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --03-31 | ||
Trading Symbol | TMCC | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Common Stock Shares Outstanding | 91,500 | ||
Entity Public Float | $ 0 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Inco
Consolidated Statements of Income - 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 | |
Financing revenues: | |||||||||||
Operating lease | $ 2,102 | $ 2,068 | $ 2,016 | $ 1,981 | $ 1,958 | $ 1,946 | $ 1,925 | $ 1,891 | $ 8,167 | $ 7,720 | $ 7,141 |
Retail | 512 | 498 | 490 | 474 | 467 | 468 | 459 | 456 | 1,974 | 1,850 | 1,859 |
Dealer | 152 | 140 | 141 | 143 | 130 | 123 | 112 | 111 | 576 | 476 | 403 |
Total financing revenues | 2,766 | 2,706 | 2,647 | 2,598 | 2,555 | 2,537 | 2,496 | 2,458 | 10,717 | 10,046 | 9,403 |
Depreciation on operating leases | 1,863 | 1,778 | 1,719 | 1,681 | 1,859 | 1,722 | 1,683 | 1,589 | 7,041 | 6,853 | 5,914 |
Interest expense | 523 | 428 | 452 | 448 | 449 | 701 | 297 | 307 | 1,851 | 1,754 | 1,137 |
Net financing revenues | 380 | 500 | 476 | 469 | 247 | 114 | 516 | 562 | 1,825 | 1,439 | 2,352 |
Insurance earned premiums and contract revenues | 225 | 220 | 221 | 216 | 210 | 202 | 199 | 193 | 882 | 804 | 719 |
Gain on sale of commercial finance business | 0 | 0 | 197 | ||||||||
Investment and other income, net | 51 | 63 | 55 | 47 | 37 | 52 | 42 | 39 | 216 | 170 | 158 |
Realized gains, net on investments in marketable securities | (4) | 3 | 1 | 41 | (14) | 157 | 70 | 13 | 41 | 226 | 6 |
Net financing revenues and other revenues | 652 | 786 | 753 | 773 | 480 | 525 | 827 | 807 | 2,964 | 2,639 | 3,432 |
Expenses: | |||||||||||
Provision for credit losses | 81 | 108 | 127 | 85 | 186 | 183 | 161 | 52 | 401 | 582 | 441 |
Operating and administrative | 384 | 323 | 337 | 313 | 356 | 325 | 317 | 279 | 1,357 | 1,277 | 1,161 |
Insurance losses and loss adjustment expenses | 109 | 100 | 102 | 114 | 99 | 92 | 91 | 89 | 425 | 371 | 318 |
Total expenses | 574 | 531 | 566 | 512 | 641 | 600 | 569 | 420 | 2,183 | 2,230 | 1,920 |
Income before income taxes | 78 | 255 | 187 | 261 | (161) | (75) | 258 | 387 | 781 | 409 | 1,512 |
(Benefit) provision for income taxes | 26 | (2,821) | 70 | 96 | (70) | (29) | 95 | 146 | (2,629) | 142 | 580 |
Net income | $ 52 | $ 3,076 | $ 117 | $ 165 | $ (91) | $ (46) | $ 163 | $ 241 | $ 3,410 | $ 267 | $ 932 |
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 | $ 3,410 | $ 267 | $ 932 |
Other comprehensive loss, net of tax: | |||
Net unrealized losses on available-for-sale marketable securities [net of tax benefit of $6, $0 and $32, respectively] | (29) | (1) | (51) |
Reclassification adjustment for net gains on available-for-sale marketable securities included in realized gains, net on investments in marketable securities [net of tax provision of $16, $87 and $2, respectively] | (25) | (139) | (4) |
Other comprehensive loss | (54) | (140) | (55) |
Comprehensive income | $ 3,356 | $ 127 | $ 877 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net unrealized losses on available-for-sale marketable securities, tax benefit | $ 6 | $ 0 | $ 32 |
Reclassification adjustment for net gains on available-for-sale marketable securities included in realized gains, net on investment in marketable securities, net of tax provision | $ 16 | $ 87 | $ 2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 3,540 | $ 4,198 |
Restricted cash and cash equivalents | 1,219 | 1,087 |
Investments in marketable securities | 5,829 | 5,692 |
Finance receivables, net | 69,647 | 68,462 |
Investments in operating leases, net | 38,697 | 38,152 |
Other assets | 1,614 | 2,044 |
Total assets | 120,546 | 119,635 |
LIABILITIES AND SHAREHOLDER’S EQUITY | ||
Debt | 98,353 | 98,233 |
Deferred income taxes | 5,326 | 7,926 |
Other liabilities | 3,987 | 3,952 |
Total liabilities | 107,666 | 110,111 |
Commitments and contingencies (Refer to Note 14) | ||
Shareholder’s equity: | ||
Capital stock, no par value (100,000 shares authorized; 91,500 issued and outstanding) at March 31, 2018 and 2017 | 915 | 915 |
Additional paid-in capital | 2 | 2 |
Accumulated other comprehensive (loss) income | (29) | 25 |
Retained earnings | 11,992 | 8,582 |
Total shareholder's equity | 12,880 | 9,524 |
Total liabilities and shareholder's equity | $ 120,546 | $ 119,635 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Mar. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | ||
Common Stock, Shares Authorized | 100,000 | 100,000 |
Common Stock, Shares, Issued | 91,500 | 91,500 |
Common Stock, Shares, Outstanding | 91,500 | 91,500 |
Consolidated Balance Sheets (Su
Consolidated Balance Sheets (Supplemental) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
ASSETS | ||
Finance receivables, net | $ 69,647 | $ 68,462 |
Investments in operating leases, net | 38,697 | 38,152 |
Other assets | 1,614 | 2,044 |
Total assets | 120,546 | 119,635 |
LIABILITIES | ||
Debt | 98,353 | 98,233 |
Other liabilities | 3,987 | 3,952 |
Total liabilities | 107,666 | 110,111 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Finance receivables, net | 11,927 | 12,865 |
Investments in operating leases, net | 5,706 | 4,888 |
Other assets | 125 | 87 |
Total assets | 17,758 | 17,840 |
LIABILITIES | ||
Debt | 13,638 | 14,319 |
Other liabilities | 10 | 6 |
Total liabilities | $ 13,648 | $ 14,325 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Millions | Total | Capital stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings |
Balance at Mar. 31, 2015 | $ 8,520 | $ 915 | $ 2 | $ 220 | $ 7,383 |
Net income | 932 | 0 | 0 | 0 | 932 |
Other comprehensive loss, net of tax | (55) | 0 | 0 | (55) | 0 |
Balance at Mar. 31, 2016 | 9,397 | 915 | 2 | 165 | 8,315 |
Net income | 267 | 0 | 0 | 0 | 267 |
Other comprehensive loss, net of tax | (140) | 0 | 0 | (140) | 0 |
Balance at Mar. 31, 2017 | 9,524 | 915 | 2 | 25 | 8,582 |
Net income | 3,410 | 0 | 0 | 0 | 3,410 |
Other comprehensive loss, net of tax | (54) | 0 | 0 | (54) | 0 |
Balance at Mar. 31, 2018 | $ 12,880 | $ 915 | $ 2 | $ (29) | $ 11,992 |
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 | $ 3,410 | $ 267 | $ 932 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,123 | 6,916 | 5,965 |
Recognition of deferred income | (2,003) | (1,779) | (1,713) |
Provision for credit losses | 401 | 582 | 441 |
Amortization of deferred costs | 607 | 625 | 620 |
Foreign currency and other adjustments to the carrying value of debt, net | 1,502 | (704) | 1,195 |
Net realized gains from sales and other-than-temporary impairment on available-for-sale securities | (41) | (226) | (6) |
Gain on sale of commercial finance business | 0 | 0 | (197) |
Net change in: | |||
Restricted cash and cash equivalents | 41 | (77) | (226) |
Derivative assets | (10) | 17 | (15) |
Other assets and accrued interest | (117) | (167) | 66 |
Deferred income taxes | (2,578) | (3) | 531 |
Derivative liabilities | (40) | 39 | (83) |
Other liabilities | 81 | 347 | 329 |
Net cash provided by operating activities | 8,376 | 5,837 | 7,839 |
Cash flows from investing activities: | |||
Purchase of investments in marketable securities | (7,137) | (3,702) | (7,447) |
Proceeds from sales of investments in marketable securities | 1,376 | 875 | 914 |
Proceeds from maturities of investments in marketable securities | 5,580 | 3,656 | 7,026 |
Acquisition of finance receivables | (25,713) | (25,497) | (24,956) |
Collection of finance receivables | 24,100 | 24,324 | 24,523 |
Net change in wholesale and certain working capital receivables | 388 | (1,859) | (512) |
Acquisition of investments in operating leases | (16,575) | (17,947) | (19,917) |
Disposals of investments in operating leases | 9,821 | 10,230 | 8,283 |
Proceeds from sale of commercial finance business | 0 | 0 | 2,317 |
Net change in financing support provided to affiliates | 755 | 354 | 7 |
Cash equivalents (restricted) to acquire finance receivables and investment in operating leases, net | (173) | 0 | 0 |
Other, net | (79) | (110) | (68) |
Net cash used in investing activities | (7,657) | (9,676) | (9,830) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 21,768 | 28,817 | 25,564 |
Payments on debt | (23,814) | (23,463) | (22,865) |
Net change in commercial paper | 664 | (12) | (410) |
Net change in financing support provided by affiliates | 5 | (6) | (4) |
Net cash (used in) provided by financing activities | (1,377) | 5,336 | 2,285 |
Net (decrease) increase in cash and cash equivalents | (658) | 1,497 | 294 |
Cash and cash equivalents at the beginning of the period | 4,198 | 2,701 | 2,407 |
Cash and cash equivalents at the end of the period | 3,540 | 4,198 | 2,701 |
Supplemental disclosures: | |||
Interest paid, net | 1,722 | 1,406 | 1,190 |
Income taxes paid (received), net | $ 8 | $ 53 | $ (95) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies Nature of Operations Toyota Motor Credit Corporation (“TMCC”) is a wholly-owned subsidiary of Toyota Financial Services International Corporation (“TFSIC”), a California corporation, which is a wholly-owned subsidiary of Toyota Financial Services Corporation (“TFSC”), a Japanese corporation. TFSC, in turn, is a wholly-owned subsidiary of Toyota Motor Corporation (“TMC”), a Japanese corporation. TFSC manages TMC’s worldwide financial services operations. References herein to the “Company”, “we”, “our”, and “us” denote TMCC and its consolidated subsidiaries. TMCC is marketed under the brands of Toyota Financial Services and Lexus Financial Services. We provide a variety of finance and insurance products to authorized Toyota and Lexus dealers or dealer groups and, to a lesser extent, other domestic and import franchise dealers (collectively referred to as “dealers”) and their customers in the United States of America (excluding Hawaii) (the “U.S.”) and Puerto Rico. Our business is substantially dependent upon the sale of Toyota and Lexus vehicles. Our products fall primarily into the following product categories: • Finance - We acquire retail installment sales contracts from dealers in the U.S. and Puerto Rico (“retail contracts”) and leasing contracts accounted for as operating leases (“lease contracts”) from dealers in the U.S. We collectively refer to our retail and lease contracts as the “consumer portfolio.” We also provide dealer financing, including wholesale financing, working capital loans, revolving lines of credit and real estate financing to dealers in the U.S. and Puerto Rico. We collectively refer to our dealer financing portfolio as the “dealer portfolio.” • Insurance - Through Toyota Motor Insurance Services, Inc., a wholly-owned subsidiary, and its insurance company subsidiaries (collectively referred to as “TMIS”), we provide marketing, underwriting, and claims administration for vehicle and payment protection products sold by dealers in the U.S. Our vehicle and payment protection products include vehicle service agreements, guaranteed auto protection agreements, prepaid maintenance contracts, excess wear and use agreements, tire and wheel protection agreements and key replacement protection. TMIS also covers certain risks of dealers and provides coverage and related administrative services to certain of our affiliates in the U.S. Although the vehicle and payment protection products are generally not regulated as insurance products, for ease of reference we collectively refer to the group of products provided by TMIS herein as “insurance products.” Our finance operations are located in the U.S. and Puerto Rico with earning assets principally sourced through Toyota and Lexus dealers. As of March 31, 2018, approximately 22 percent of retail and lease contracts were concentrated in California, 11 percent in Texas, 8 percent in New York, and 5 percent in New Jersey. Our insurance operations are located in the U.S. As of March 31, 2018, approximately 26 percent of insurance policies and contracts were concentrated in California, 6 percent in New York, and 5 percent in both Maryland and New Jersey. Any material adverse changes to the economies or applicable laws in these states could have an adverse effect on our financial condition and results of operations. In December 2014, we entered into an agreement for the sale of certain assets and liabilities related to our industrial equipment retail, lease, and dealer portfolios (hereinafter the “commercial finance business”) to Toyota Industries Commercial Finance, Inc. (“TICF”), a subsidiary of Toyota Industries Corporation, which forms part of the group of companies known as the Toyota Group and is a related party to TMCC. As discussed in our Form 10-K for fiscal 2016, the sale was completed on October 1, 2015 and resulted in cash proceeds of $2.3 billion and a gain of $197 million that was reflected in our results of operations in fiscal 2016. The sale of our commercial finance business did not meet the criteria to be presented as a discontinued operation. Note 1 – Summary of Significant Accounting Policies (Continued) Basis of Presentation Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Related party transactions presented in the Consolidated Financial Statements are disclosed in Note 15 – Related Party Transactions. Principles of Consolidation The consolidated financial statements include the accounts of TMCC, its wholly-owned subsidiaries and all variable interest entities (“VIE”) of which we are the primary beneficiary. All intercompany transactions and balances have been eliminated. Variable Interest Entities A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. The primary beneficiary of a VIE is the party with both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE. To assess whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider all the facts and circumstances including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes identifying the activities that most significantly impact the VIE’s economic performance and identifying which party, if any, has power over those activities. In general, the party that makes the most significant decisions affecting the VIE is determined to have the power to direct the activities of the VIE. To assess whether we have the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity interests, servicing rights and fee arrangements, and any other variable interests in the VIE. If we determine that we are the party with the power to make the most significant decisions affecting the VIE, and we have an obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE, then we consolidate the VIE. We perform ongoing reassessments, usually quarterly, of whether we are the primary beneficiary of a VIE. The reassessment process considers whether we have acquired or divested the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. We also reconsider whether entities previously determined not to be VIEs have become VIEs, based on new events, and therefore could be subject to the VIE consolidation framework. Refer to Note 10 – Variable Interest Entities for additional discussion and disclosure. Note 1 – Summary of Significant Accounting Policies (Continued) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of inherent uncertainty involved in making estimates, actual results could differ from those estimates and assumptions. The accounting estimates that are most important to our business are the determination of residual value relating to our investments in operating leases and the allowance for credit losses as well as estimates related to the fair value of our derivative instruments, marketable securities and other financial instruments. Revenue Recognition Operating Lease Revenues Operating lease revenues are recorded to income on a straight-line basis over the term of the lease. Incremental direct fees and costs received or paid in connection with the acquisition of operating leases, including incentive and rate participation payments made to dealers and acquisition fees collected from customers, are capitalized or deferred and amortized on a straight-line basis over the term of the related contracts. Payments received on affiliate sponsored special rate programs (“subvention”) and other consumer incentives are deferred and recognized on a straight-line basis over the term of the related contracts. Operating lease revenue is recorded net of sales taxes collected from customers. Included in operating lease revenues are other fees, including late fees and other service charges, the amounts of which are not significant to total operating lease revenue. Retail and Dealer Financing Revenues Revenues associated with retail and dealer financing are recognized so as to approximate a constant effective yield over the contract term. Incremental direct fees and costs incurred in connection with the acquisition of retail contracts and dealer financing receivables, including incentive and rate participation payments made to dealers, are capitalized and amortized so as to approximate a constant effective yield over the term of the related contracts. Payments received on subvention and other consumer incentives are deferred and recognized to approximate a constant effective yield over the term of the related contracts. Included in financing revenues are other fees, including late fees and other service charges, the amounts of which are not significant to total financing revenues. Note 1 – Summary of Significant Accounting Policies (Continued) Insurance Earned Premiums and Contract Revenues Revenues from providing coverage under various contractual agreements are recognized over the term of the coverage in relation to the timing and level of anticipated claims and administrative expenses. Revenues from insurance policies, net of premiums ceded to reinsurers, are earned over the terms of the respective policies in proportion to the estimated loss development. Management relies on historical loss experience as a basis for establishing earnings factors used to recognize revenue over the term of the contract or policy. The portion of premiums and contract revenues applicable to the unexpired terms of the agreements is recorded as unearned insurance premiums and contract revenues. Policies and contracts sold range in term from 3 to 120 months. Certain costs of acquiring new policies and contracts, consisting primarily of dealer commissions and premium taxes, are deferred and amortized over the term of the related policies on the same basis as the revenues are earned. The effect of subsequent cancellations is recorded as an offset to unearned insurance premiums and contract revenues. Service commissions and fees are recognized over the term of the coverage in relation to the timing of services performed. Depreciation on Operating Leases Depreciation on operating leases is recognized using the straight-line method over the lease term, typically two to five years. The depreciable basis is the original acquisition cost of the vehicle less the estimated residual value of the vehicle at the end of the lease term. During the lease term, adjustments to depreciation expense reflecting revised estimates of expected residual values and return rates at the end of the lease terms are recorded prospectively on a straight-line basis over the remaining lease term. Note 1 – Summary of Significant Accounting Policies (Continued) Allowance for Credit Losses We maintain an allowance for credit losses to cover probable and estimable losses incurred on our finance receivables and investments in operating leases resulting from the failure of customers or dealers to make contractual payments. Management evaluates the allowance at least quarterly, considering a variety of factors and assumptions to determine whether the allowance is considered adequate to cover probable and estimable losses incurred as of the balance sheet date. Management develops and documents the allowance for credit losses on finance receivables based on two portfolio segments. The determination of portfolio segments is based primarily on the qualitative consideration of the nature of our business operations and the characteristics of the underlying finance receivables, as follows: • Retail Loan Portfolio Segment – The retail loan portfolio segment consists of retail contracts acquired from dealers in the U.S. and Puerto Rico. Under a retail contract, we are granted a security interest in the underlying collateral which consists primarily of Toyota and Lexus vehicles. Based on the common risk characteristics associated with the finance receivables, the retail loan portfolio segment is considered a single class of finance receivable. • Dealer Products Portfolio Segment – The dealer products portfolio segment consists of wholesale financing, working capital loans, revolving lines of credit and real estate loans to dealers in the U.S. and Puerto Rico. Wholesale financing is primarily collateralized by new or used vehicle inventory with the outstanding balance fluctuating based on the level of inventory. Working capital loans and revolving lines of credit are granted for working capital purposes and are secured by dealership assets. Real estate loans are collateralized by the underlying real estate, are underwritten primarily on a loan-to-value basis and are typically for a fixed term. Based on the risk characteristics associated with the underlying finance receivables, the dealer products portfolio segment consists of three classes of finance receivables: wholesale, working capital (including revolving lines of credit), and real estate. We also separately develop and document the allowance for credit losses for investments in operating leases. Investments in operating leases are not within the scope of accounting guidance governing the disclosure of portfolio segments. Note 1 – Summary of Significant Accounting Policies (Continued) Methodology Used to Develop the Allowance for Credit Losses Retail Loan Portfolio Segment and Investments in Operating Leases The level of credit risk in our retail loan portfolio segment and our investments in operating leases is influenced primarily by two factors: default frequency and loss severity, which in turn are influenced by various factors such as economic conditions, the used vehicle market, purchase quality mix, contract term length, and collection strategies and practices. We evaluate the retail loan portfolio segment and investments in operating leases using methodologies that include roll rate, credit risk grade/tier, and vintage analysis. We review and analyze external factors, including changes in economic conditions, actual or perceived quality, safety and reliability of Toyota and Lexus vehicles, unemployment levels, the used vehicle market, and consumer behavior. In addition, internal factors, such as purchase quality mix and operational changes are also considered in the analyses. We utilize a loss emergence period assumption in developing our allowance for credit losses. This assumption represents the average length of time between when a loss event first occurs and when the account is charged off. We apply judgment in estimating the loss emergence period using available credit information and trends. Dealer Products Portfolio Segment The level of credit risk in our dealer products portfolio segment is influenced primarily by the financial strength of dealers within our portfolio, dealer concentration, collateral quality, and other economic factors. The financial strength of dealers within our portfolio is influenced by, among other factors, general economic conditions, the overall demand for new and used vehicles and the financial condition of automotive manufacturers. We evaluate the dealer portfolio by aggregating dealer financing receivables into loan-risk pools, which are determined based on the risk characteristics of the loan (e.g. secured by vehicles, real estate or dealership assets). We analyze the loan-risk pools using internally developed risk ratings for each dealer. We also utilize a loss emergence period assumption in developing our allowance for credit losses. The loss emergence period represents the time period between the date at which the loss event is estimated to have occurred and the ultimate realization of that loss through charge-off. In addition, field operations management and our special assets group are consulted each quarter to determine if any specific dealer loan is considered impaired. If impaired loans are identified, specific reserves are established, as appropriate, and the loan is removed from the loan-risk pool for separate monitoring. Note 1 – Summary of Significant Accounting Policies (Continued) Accounting for the Allowance for Credit Losses and Impaired Receivables The majority of the allowance for credit losses covers estimated losses on the retail loan portfolio segment which is collectively evaluated for impairment. The remainder of the allowance for credit losses covers the estimated losses on investments in operating leases and the dealer products portfolio segment. Within the dealer products portfolio segment, we establish specific reserves to cover the estimated losses on individual impaired loans (including loans modified in a troubled debt restructuring). The specific reserves are assessed based on discounted cash flows, the loan’s observable market price, or the fair value of the underlying collateral if the loan is collateral dependent. Troubled debt restructurings in the retail loan portfolio segment are aggregated when determining the allowance for credit losses. These loans are homogenous in nature and insignificant for individual evaluation and we have determined that the allowance for credit losses for the retail loan portfolio segment would not be materially different if the loans had been individually evaluated for impairment. Increases to the allowance for credit losses are accompanied by corresponding charges to the Provision for credit losses on our Consolidated Statements of Income. The uncollectible portion of finance receivables and investments in operating leases is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is greater than 120 days past due. In the event we repossess the collateral, the receivable is charged-off and we record the collateral at its estimated fair value less costs to sell and report it in Other assets in our Consolidated Balance Sheets. Recoveries of finance receivables and investments in operating leases previously charged off as uncollectible are credited to the allowance for credit losses. Refer to Note 6 – Allowance for Credit Losses for additional discussion and disclosure. Insurance Losses and Loss Adjustment Expenses Insurance losses and loss adjustment expenses include amounts paid and accrued for loss events that are known and have been recorded as claims, estimates of losses incurred but not reported that are based on actuarial estimates and historical loss development patterns, and loss adjustment expenses that are expected to be incurred in connection with settling and paying these claims. Accruals for unpaid losses, losses incurred but not reported, and loss adjustment expenses are included in Other liabilities in our Consolidated Balance Sheets. These accruals arising from contractual agreements entered into by TMIS are not significant as of March 31, 2018 and 2017. Estimated liabilities are reviewed regularly, and we recognize any adjustments in the periods in which they are determined. If anticipated losses, loss adjustment expenses, and unamortized acquisition and maintenance costs exceed the recorded unearned premium, a premium deficiency is recognized by first charging any unamortized acquisition costs to expense and then by recording a liability for any excess deficiency. Cash Equivalents Cash equivalents represent highly liquid investments with maturities of three months or less at purchase and may include money market instruments, commercial paper, certificates of deposit, U.S. government and agency obligations, or similar instruments. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents includes customer collections on securitized receivables to be distributed to investors as payments on the related secured debt, which are primarily related to securitization trusts. Restricted cash equivalents may also contain amounts unrelated to financing activities which are restricted as to use and proceeds from certain debt issuances for which the use of the cash is restricted. Note 1 – Summary of Significant Accounting Policies (Continued) Investments in Marketable Securities Investments in marketable securities consist of debt and equity securities. Debt and equity securities designated as available-for-sale (“AFS”) are recorded at fair value using quoted market prices where available with unrealized gains or losses included in accumulated other comprehensive income (“AOCI”), net of applicable taxes. Realized gains and losses are determined using either the specific identification method or first in first out method, depending on the type of investment in our portfolio. Other-than-Temporary Impairment An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in AOCI. We conduct periodic reviews of securities in unrealized loss positions for the purpose of evaluating whether the impairment is other-than-temporary. As part of our ongoing assessment of other-than-temporary impairment (“OTTI”), we consider a variety of factors. Such factors include the length of time and extent to which the market value of a security has been less than amortized cost, adverse conditions specifically related to the industry, geographic area or financial condition of the issuer or underlying collateral of the security and the volatility of the fair value changes. An OTTI loss with respect to AFS debt securities must be recognized in earnings if we have the intent to sell the debt security or it is more likely than not that we will be required to sell the debt security before recovery of its amortized cost basis. If we have the intent to sell, the cost basis of the security is written down to fair value and the loss is reflected in Realized gains, net on investments in marketable securities in our Consolidated Statements of Income. If we have no intent to sell and we believe that it is more likely than not we will not be required to sell these securities prior to recovery, the credit loss component of the unrealized losses is recognized in Realized gains, net on investments in marketable securities in our Consolidated Statements of Income, while the remainder of the loss is recognized in AOCI. The credit loss component recognized in Realized gains, net on investments in marketable securities in our Consolidated Statements of Income is identified as the portion of the amortized cost of the security not expected to be collected over the remaining term as projected using a cash flow analysis for debt securities. We perform periodic reviews of our AFS equity securities to determine whether unrealized losses are temporary in nature. We consider our intent and ability to hold the security for a period of time sufficient for recovery of fair value. Where we lack that intent or ability, the equity security’s decline in fair value is deemed to be other-than-temporary. If losses are considered to be other-than-temporary, the cost basis of the security is written down to fair value and the loss is reflected in Realized gains, net on investments in marketable securities in our Consolidated Statements of Income. Refer to Note 3 – Investments in Marketable Securities for additional discussion and disclosure. Note 1 – Summary of Significant Accounting Policies (Continued) Finance Receivables Our finance receivables consist of the retail loan and the dealer products portfolio segments. Finance receivables recorded on our balance sheet include accrued interest and deferred fees and costs, net of the allowance for credit losses, certain other dealer funds and deferred income. 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. Impaired Finance Receivables A finance receivable is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the terms of the contract. Factors such as payment history, compliance with terms and conditions of the underlying loan agreement and other subjective factors related to the financial stability of the borrower are considered when determining whether a finance receivable is impaired. Troubled Debt Restructurings A troubled debt restructuring occurs when a finance receivable is modified through a concession to a borrower experiencing financial difficulty. A finance receivable modified under a troubled debt restructuring is considered to be impaired. In addition, troubled debt restructurings include finance receivables for which the customer has filed for bankruptcy protection. For such finance receivables, we no longer have the ability to modify the terms of the agreement without the approval of the bankruptcy court and the court may impose term modifications that we are obligated to accept. Nonaccrual Policy Retail Loan Portfolio Segment The accrual of revenue is discontinued at the time a retail loan finance receivable is determined to be uncollectible. These finance receivables may be restored to accrual status when future payments are reasonably assured. For these finance receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are applied first to outstanding interest and then to the unpaid principal balance. Dealer Products Portfolio Segment Impaired receivables in the dealer products portfolio segment are placed on nonaccrual status if full payment of principal or interest is in doubt, or when principal or interest is 90 days or more past due. Interest accrued, but not collected at the date a receivable is placed on nonaccrual status, is reversed against interest income. In addition, the amortization of net deferred fees is suspended. Interest income on nonaccrual receivables is recognized only to the extent it is received in cash. Finance receivables are restored to accrual status only when interest and principal payments are brought current and future payments are reasonably assured. Finance receivables in the dealer products portfolio segment are charged off against the allowance for credit losses when the loss has been realized. Refer to Note 4 – Finance Receivables, Net for additional discussion and disclosure. Note 1 – Summary of Significant Accounting Policies (Continued) Investments in Operating Leases We record our investments in operating leases at acquisition cost, net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses. Nonaccrual Policy The accrual of revenue on investments in operating leases is discontinued at the time an account is determined to be uncollectible. Operating leases may be restored to accrual status when future payments are reasonably assured. For investments in operating leases in non-accrual status, subsequent operating lease revenue is recognized only to the extent a payment is received. Determination of Residual Value Residual values of lease contracts are estimated at lease inception by examining external industry data, the anticipated Toyota and Lexus product pipeline and our own experience. Factors considered in this evaluation include, but are not limited to, local, regional and national economic forecasts, new vehicle pricing, new vehicle incentive programs, new vehicle sales, competitor actions and behavior, product attributes of popular vehicles, the mix and level of used vehicle supply, the level of current used vehicle values, buying and leasing behavior trends, and fuel prices. We use various channels to sell vehicles returned at lease-end. On a quarterly basis, we review the estimated end-of-term market values and return rates of leased vehicles to assess the appropriateness of the carrying values at lease-end. To the extent the estimated end-of-term market value of a leased vehicle is lower than the residual value established at lease inception, the residual value of the leased vehicle is adjusted downward, thereby adjusting depreciation expense, so that the carrying value at lease end will approximate the estimated end-of-term market value. Factors affecting the estimated end-of-term market value are similar to those considered in the evaluation of residual values at lease inception discussed above. These factors are evaluated in the context of their historical trends to anticipate potential future changes in the relationship among these factors. For investments in operating leases, adjustments to depreciation expense are made prospectively on a straight-line basis over the remaining terms of the leases and are included in Depreciation on operating leases in our Consolidated Statements of Income. We evaluate our investment in operating leases portfolio for potential impairment when we determine a triggering event has occurred. When a triggering event has occurred, we perform a test of recoverability by comparing the expected undiscounted future cash flows (including expected residual values) over the remaining lease terms to the carrying value of the asset group. If the test of recoverability identifies a possible impairment, the asset group’s fair value is measured in accordance with the fair value measurement framework. An impairment charge would be recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value and would be recorded in our Consolidated Statements of Income. Refer to Note 5 – Investments in Operating Leases, Net for additional discussion and disclosure. Note 1 – Summary of Significant Accounting Policies (Continued) Used Vehicles Held for Sale Used vehicles held for sale, reported in Other assets in our Consolidated Balance Sheets, consist of off-lease vehicles and repossessed vehicles. These vehicles are recorded at the lower of their carrying value or estimated fair value less costs to sell. These vehicles are sold promptly after grounding or repossession. Debt Issuance Costs Costs that are direct and incremental to debt issuance are deferred and amortized to interest expense on an effective yield basis over the contractual term of the debt. These costs are presented as a direct deduction from the carrying value of the related debt liability and reported in Debt in our Consolidated Balance Sheets. All other costs related to debt issuance are expensed as incurred. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If quoted prices in an active market are available, fair value is determined by reference to these prices. If quoted prices are not available, fair value is determined by valuation models that primarily use, as inputs, market-based or independently sourced parameters, including but not limited to interest rates, volatilities, foreign exchange rates and credit curves. Additionally, we may reference prices for similar instruments, quoted prices or recent transactions in less active markets. We use prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the availability of prices and inputs may be reduced for certain financial instruments. This condition could result in a financial instrument being reclassified from Level 1 to Level 2 or from Level 2 to Level 3. Level 1: Quoted (unadjusted) prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in active marke |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 2 – Fair Value Measurements Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables summarize our financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy except for certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and are excluded from the leveling information provided in the tables below. Fair value amounts presented below are intended to permit reconciliation of the fair value hierarchy to the amounts presented in our Consolidated Balance Sheets. March 31, 2018 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Cash equivalents: Money market instruments $ 347 $ 550 $ - $ - $ 897 Certificates of deposit - 2,240 - - 2,240 Commercial paper - 255 - - 255 Cash equivalents total 347 3,045 - - 3,392 Restricted cash equivalents - money market instruments 173 709 - - 882 Available-for-sale securities: Debt instruments: U.S. government and agency obligations 2,774 24 - - 2,798 Municipal debt securities - 11 - - 11 Certificates of deposit - 474 - - 474 Commercial paper - 52 - - 52 Corporate debt securities 15 186 - - 201 Mortgage-backed securities: U.S. government agency - 39 - - 39 Non-agency residential - - 2 - 2 Non-agency commercial - - 29 - 29 Asset-backed securities - - 39 - 39 Equity instruments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 660 Total return bond funds 1,524 - - - 1,524 Available-for-sale securities total 4,313 786 70 - 5,829 Derivative assets: Interest rate swaps - 872 - - 872 Interest rate floors - 1 - - 1 Foreign currency swaps - 485 - - 485 Counterparty netting and collateral - - - (1,297 ) (1,297 ) Derivative assets total - 1,358 - (1,297 ) 61 Assets at fair value 4,833 5,898 70 (1,297 ) 10,164 Derivative liabilities: Interest rate swaps - (607 ) (21 ) - (628 ) Foreign currency swaps - (200 ) - - (200 ) Counterparty netting and collateral - - - 822 822 Liabilities at fair value - (807 ) (21 ) 822 (6 ) Net assets at fair value $ 4,833 $ 5,091 $ 49 $ (475 ) $ 10,158 Note 2 – Fair Value Measurements (Continued) March 31, 2017 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Cash equivalents: Money market instruments $ 287 $ 1,045 $ - $ - $ 1,332 Certificates of deposit - 2,630 - - 2,630 Cash equivalents total 287 3,675 - - 3,962 Available-for-sale securities: Debt instruments: U.S. government and agency obligations 2,273 33 2 - 2,308 Municipal debt securities - 11 - - 11 Certificates of deposit 105 650 - - 755 Corporate debt securities 211 150 8 - 369 Mortgage-backed securities: U.S. government agency - 45 - - 45 Non-agency residential - - 2 - 2 Non-agency commercial - - 37 - 37 Asset-backed securities - - 31 - 31 Equity instruments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 1,740 Total return bond funds 394 - - - 394 Available-for-sale securities total 2,983 889 80 - 5,692 Derivative assets: Interest rate swaps - 474 1 - 475 Interest rate floors - 2 - - 2 Foreign currency swaps - 122 - - 122 Counterparty netting and collateral - - - (548 ) (548 ) Derivative assets total - 598 1 (548 ) 51 Assets at fair value 3,270 5,162 81 (548 ) 9,705 Derivative liabilities: Interest rate swaps - (271 ) (6 ) - (277 ) Foreign currency swaps - (1,114 ) (62 ) - (1,176 ) Counterparty netting and collateral - - - 1,407 1,407 Liabilities at fair value - (1,385 ) (68 ) 1,407 (46 ) Net assets at fair value $ 3,270 $ 3,777 $ 13 $ 859 $ 9,659 Note 2 – Fair Value Measurements (Continued) Transfers between levels of the fair value hierarchy are recognized at the end of their respective reporting periods. Transfers between levels of the fair value hierarchy during the years ended March 31, 2018 and 2017 resulted from changes in the transparency of inputs and were not significant. The following tables summarize the rollforward of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs: Year Ended March 31, 2018 Total net assets Available-for-sale securities Derivative instruments, net (liabilities) U.S. Total Total government Corporate Mortgage- Asset- available- Interest Foreign derivative and agency debt backed backed for-sale rate currency assets obligations securities securities securities securities swaps swaps (liabilities) Fair value, April 1, 2017 $ 2 $ 8 $ 39 $ 31 $ 80 $ (5 ) $ (62 ) $ (67 ) $ 13 Total gains (losses) Included in earnings - - - - - - 7 7 7 Included in other comprehensive income - - - - - - - - - Purchases, issuances, sales, and settlements Purchases - - 5 30 35 - - - 35 Issuances - - - - - - - - - Sales - - - - - - - - - Settlements - (9 ) (13 ) (22 ) (44 ) (16 ) 55 39 (5 ) Transfers in to Level 3 - 1 - - 1 - - - 1 Transfers out of Level 3 (2 ) - - - (2 ) - - - (2 ) Fair value, March 31, 2018 $ - $ - $ 31 $ 39 $ 70 $ (21 ) $ - $ (21 ) $ 49 The amount of total gains (losses) included in earnings attributable to assets held at the reporting date $ - $ - $ - $ - Year Ended March 31, 2017 Total net assets Available-for-sale securities Derivative instruments, net (liabilities) U.S. Total Total government Corporate Mortgage- Asset- available- Interest Foreign derivative and agency debt backed backed for-sale rate currency assets obligations securities securities securities securities swaps swaps (liabilities) Fair value, April 1, 2016 $ 2 $ 7 $ 45 $ 37 $ 91 $ 39 $ (14 ) $ 25 $ 116 Total gains (losses) Included in earnings - - - - - (24 ) (43 ) (67 ) (67 ) Included in other comprehensive income - 1 - 1 2 - - - 2 Purchases, issuances, sales, and settlements Purchases - - 4 6 10 - - - 10 Issuances - - - - - - - - - Sales - - - - - - - - - Settlements - - (10 ) (13 ) (23 ) (20 ) (5 ) (25 ) (48 ) Transfers in to Level 3 - - - - - - - - - Transfers out of Level 3 - - - - - - - - - Fair value, March 31, 2017 $ 2 $ 8 $ 39 $ 31 $ 80 $ (5 ) $ (62 ) $ (67 ) $ 13 The amount of total gains (losses) included in earnings attributable to assets held at the reporting date $ (24 ) $ (43 ) $ (67 ) $ (67 ) Note 2 – Fair Value Measurements (Continued) Nonrecurring Fair Value Measurements Nonrecurring fair value measurements include Level 3 net finance receivables that are not measured at fair value on a recurring basis, but are subject to fair value adjustments utilizing the fair value of the underlying collateral when there is evidence of impairment. We did not have any significant nonrecurring fair value items as of March 31, 2018 and 2017. Level 3 Fair Value Measurements The Level 3 financial assets and liabilities recorded at fair value which are subject to recurring and nonrecurring fair value measurement, and the corresponding change in the fair value measurements of these assets and liabilities, were not significant to our Consolidated Balance Sheets or Consolidated Statements of Income as of and for the years ended March 31, 2018 and 2017. Note 2 – Fair Value Measurements (Continued) Financial Instruments The following tables provide information about assets and liabilities not carried at fair value on a recurring basis on our Consolidated Balance Sheets: March 31, 2018 Carrying Total Fair value Level 1 Level 2 Level 3 Value Financial assets Finance receivables, net Retail loan $ 52,374 $ - $ - $ 52,081 $ 52,081 Wholesale 10,365 - - 10,413 10,413 Real estate 4,492 - - 4,409 4,409 Working capital 2,222 - - 2,197 2,197 Financial liabilities Commercial paper $ 27,313 $ - $ 27,313 $ - $ 27,313 Unsecured notes and loans payable 57,402 - 55,441 2,341 57,782 Secured notes and loans payable 13,638 - - 13,588 13,588 March 31, 2017 Carrying Total Fair value Level 1 Level 2 Level 3 Value Financial assets Finance receivables, net Retail loan $ 50,682 $ - $ - $ 50,733 $ 50,733 Wholesale 10,819 - - 10,881 10,881 Real estate 4,602 - - 4,459 4,459 Working capital 2,218 - - 2,222 2,222 Financial liabilities Commercial paper $ 26,632 $ - $ 26,632 $ - $ 26,632 Unsecured notes and loans payable 57,282 - 55,838 2,385 58,223 Secured notes and loans payable 14,319 - - 14,322 14,322 The carrying value of each class of finance receivables includes accrued interest and deferred fees and costs, net of deferred income and the allowance for credit losses. Finance receivables, net excludes related party transactions, for which the fair value approximates the carrying value, of $189 million and $136 million at March 31, 2018 and 2017, respectively. Fair values of related party finance receivables, net would be classified as Level 3 of the fair value hierarchy. |
Investments in Marketable Secur
Investments in Marketable Securities | 12 Months Ended |
Mar. 31, 2018 | |
Marketable Securities [Abstract] | |
Investments in Marketable Securities | Note 3 – Investments in Marketable Securities We classify all of our investments in marketable securities as available-for-sale. The amortized cost and estimated fair value of investments in marketable securities and related unrealized gains and losses were as follows: March 31, 2018 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale securities: Debt instruments: U.S. government and agency obligations $ 2,821 - $ (23 ) $ 2,798 Municipal debt securities 10 1 - 11 Certificates of deposit 475 - (1 ) 474 Commercial paper 52 - - 52 Corporate debt securities 203 1 (3 ) 201 Mortgage-backed securities: U.S. government agency 38 1 - 39 Non-agency residential 1 1 - 2 Non-agency commercial 30 - (1 ) 29 Asset-backed securities 39 - - 39 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II 2 - - 2 U.S. government sector fund 202 - - 202 Municipal sector fund 8 - - 8 Investment grade corporate sector fund 122 - (3 ) 119 High-yield sector fund 22 1 - 23 Mortgage sector fund 154 - (3 ) 151 Asset-backed securities sector fund 58 1 - 59 Emerging market sector fund 39 4 - 43 International sector fund 54 - (1 ) 53 Total return bond funds 1,535 5 (16 ) 1,524 Total investments in marketable securities $ 5,865 $ 15 $ (51 ) $ 5,829 Note 3 – Investments in Marketable Securities (Continued) March 31, 2017 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale securities: Debt instruments: U.S. government and agency obligations $ 2,314 $ 1 $ (7 ) $ 2,308 Municipal debt securities 10 1 - 11 Certificates of deposit 755 - - 755 Corporate debt securities 368 2 (1 ) 369 Mortgage-backed securities: U.S. government agency 45 1 (1 ) 45 Non-agency residential 2 - - 2 Non-agency commercial 37 1 (1 ) 37 Asset-backed securities 31 - - 31 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II 39 - - 39 U.S. government sector fund 389 - - 389 Municipal sector fund 20 - - 20 Investment grade corporate sector fund 252 9 - 261 High-yield sector fund 83 6 - 89 Real return sector fund 147 5 - 152 Mortgage sector fund 390 2 - 392 Asset-backed securities sector fund 140 10 - 150 Emerging market sector fund 105 7 - 112 International sector fund 136 - - 136 Total return bond funds 389 5 - 394 Total investments in marketable securities $ 5,652 $ 50 $ (10 ) $ 5,692 The Fixed income mutual funds, exclusive of the Total return bond funds, are investments in funds that are privately placed and managed by an open-end investment management company (the “Trust”). If we elect to redeem shares, the Trust will normally redeem all shares for cash, but may, in unusual circumstances, redeem amounts exceeding the lesser of $250 thousand or 1 percent of the Trust’s asset value by payment in kind of securities held by the respective fund during any 90-day period. The Total return bond funds are investments in actively traded open-end mutual funds. Redemptions are subject to normal terms and conditions as described in each fund’s prospectus. Note 3 – Investments in Marketable Securities (Continued) Unrealized Losses on Securities Investments in marketable securities in a continuous loss position for less than twelve months and for greater than twelve months were not significant at March 31, 2018 and 2017. Realized Gains and Losses on Securities The following table represents realized gains and losses on our available-for-sale securities presented in our Consolidated Statements of Income: Years Ended March 31, 2018 2017 2016 Available-for-sale securities: Realized gains on sales $ 46 $ 251 $ 59 Realized losses on sales $ (2 ) $ (1 ) $ (3 ) Other-than-temporary impairment $ (3 ) $ (24 ) $ (50 ) The other-than-temporary impairment write-downs in the table above were related to our fixed income mutual funds. Contractual Maturities The amortized cost, fair value and contractual maturities of available-for-sale debt instruments are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations. March 31, 2018 Amortized Fair Value Available-for-sale debt instruments: Due within 1 year $ 2,089 $ 2,082 Due after 1 year through 5 years 1,247 1,235 Due after 5 years through 10 years 151 146 Due after 10 years 74 73 Mortgage-backed and asset-backed securities 1 108 109 Total $ 3,669 $ 3,645 1 |
Finance Receivables, Net
Finance Receivables, Net | 12 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Finance Receivables, Net | Note 4 – Finance Receivables, Net Finance receivables, net consist of retail receivables and dealer financing, which includes accrued interest and deferred fees and costs, net of the allowance for credit losses and deferred income. Finance receivables, net also includes securitized retail receivables, which represent retail receivables that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements, as discussed further in Note 10 – Variable Interest Entities. Cash flows from these securitized retail receivables are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. Finance receivables, net consisted of the following: March 31, March 31, 2018 2017 Retail receivables $ 41,265 $ 38,338 Securitized retail receivables 12,130 13,071 Dealer financing 17,420 17,899 70,815 69,308 Deferred origination (fees) and costs, net 630 644 Deferred income (1,335 ) (1,023 ) Allowance for credit losses Retail and securitized retail receivables (312 ) (344 ) Dealer financing (151 ) (123 ) Total allowance for credit losses (463 ) (467 ) Finance receivables, net $ 69,647 $ 68,462 Contractual maturities on retail receivables and dealer financing are as follows: Contractual maturities Years ending March 31, Retail Dealer financing 2019 $ 14,348 $ 13,220 2020 12,838 1,527 2021 10,702 772 2022 8,051 667 2023 5,232 515 Thereafter 2,224 719 Total $ 53,395 $ 17,420 A significant portion of our finance receivables has historically settled prior to contractual maturity. Contractual maturities shown above should not be considered indicative of future cash collections. Note 4 – Finance Receivables, Net (Continued) Credit Quality Indicators We are exposed to credit risk on our finance receivables. Credit risk is the risk of loss arising from the failure of customers or dealers to meet the terms of their contracts with us or otherwise fail to perform as agreed. Retail Loan Portfolio Segment The retail loan portfolio segment consists of one class of finance receivables. While we use various credit quality metrics to develop our allowance for credit losses on the retail loan portfolio segment, we primarily utilize the aging of the individual accounts to monitor the credit quality of these finance receivables. Based on our experience, the payment status of borrowers is the strongest indicator of the credit quality of the underlying receivables. Payment status also impacts charge-offs. Individual borrower accounts within the retail loan segment are segregated into aging categories based on the number of days outstanding. The aging for each class of finance receivables is updated monthly. Dealer Products Portfolio Segment For the three classes of finance receivables within the dealer products portfolio segment (wholesale, real estate and working capital), all loans outstanding for an individual dealer or dealer group, which includes affiliated entities, are aggregated and evaluated collectively by dealer or dealer group. This reflects the interconnected nature of financing provided to our individual dealer and dealer group customers, and their affiliated entities. When assessing the credit quality of the finance receivables within the dealer products portfolio segment, we segregate the finance receivables account balances into four categories representing distinct credit quality indicators based on internal risk assessments. The internal risk assessments for all finance receivables within the dealer products portfolio segment are updated on a monthly basis. The four credit quality indicators are: • Performing – Account not classified as either Credit Watch, At Risk or Default • Credit Watch – Account designated for elevated attention • At Risk – Account where there is an increased likelihood that default may exist based on qualitative and quantitative factors • Default – Account is not currently meeting contractual obligations or we have temporarily waived certain contractual requirements Note 4 – Finance Receivables, Net (Continued) The tables below present each credit quality indicator by class of finance receivables: Retail Loan March 31, March 31, 2018 2017 Aging of finance receivables: Current $ 52,559 $ 50,631 30-59 days past due 613 586 60-89 days past due 158 129 90 days or greater past due 65 63 Total $ 53,395 $ 51,409 Wholesale Real Estate Working Capital March 31, March 31, March 31, March 31, March 31, March 31, 2018 2017 2018 2017 2018 2017 Credit quality indicators: Performing $ 9,451 $ 9,592 $ 4,070 $ 4,010 $ 2,118 $ 2,082 Credit Watch 946 1,269 484 613 105 143 At Risk 75 12 29 45 33 5 Default 41 78 47 45 21 5 Total $ 10,513 $ 10,951 $ 4,630 $ 4,713 $ 2,277 $ 2,235 Note 4 – Finance Receivables, Net (Continued) Impaired Finance Receivables The following table summarizes the information related to our impaired loans by class of finance receivables: Impaired Individually Evaluated Finance Receivables Unpaid Principal Balance Allowance March 31, March 31, March 31, March 31, March 31, March 31, 2018 2017 2018 2017 2018 2017 Impaired account balances individually evaluated for impairment with an allowance: Wholesale $ 107 $ 93 $ 107 $ 93 $ 14 $ 12 Real estate 86 94 86 94 5 12 Working capital 55 31 55 31 51 9 Total $ 248 $ 218 $ 248 $ 218 $ 70 $ 33 Impaired account balances individually evaluated for impairment without an allowance: Wholesale $ 83 $ 134 $ 83 $ 134 Real estate 142 105 142 105 Working capital 22 - 22 - Total $ 247 $ 239 $ 247 $ 239 Impaired account balances aggregated and evaluated for impairment: Retail loan $ 222 $ 220 $ 220 $ 217 Total impaired account balances: Retail loan $ 222 $ 220 $ 220 $ 217 Wholesale 190 227 190 227 Real estate 228 199 228 199 Working capital 77 31 77 31 Total $ 717 $ 677 $ 715 $ 674 As of March 31, 2018 and 2017, the impaired finance receivables balance for accounts in the dealer products portfolio segment that were on nonaccrual status was $249 million and $251 million, respectively, and there were no charge-offs against the allowance for credit losses for these finance receivables. Therefore, the impaired finance receivables balance is equal to the unpaid principal balance. As of March 31, 2018 and 2017, impaired finance receivables in the retail portfolio segment recorded at the fair value of the collateral less estimated selling costs were not significant and therefore excluded from the table above. Refer to Note 6 – Allowance for Credit Losses for details related to the retail loan portfolio segment’s impaired account balances which are aggregated and evaluated for impairment when determining the allowance for credit losses. Note 4 – Finance Receivables, Net (Continued) The following table summarizes the average impaired loans by class of finance receivables as of the balance sheet date: Average Impaired Finance Years Ended March 31, 2018 2017 Impaired account balances individually evaluated for impairment with an allowance: Wholesale $ 103 $ 77 Real estate 88 96 Working capital 42 33 Total $ 233 $ 206 Impaired account balances individually evaluated for impairment without an allowance: Wholesale $ 104 $ 153 Real estate 115 107 Working capital 9 1 Total $ 228 $ 261 Impaired account balances aggregated and evaluated for impairment: Retail loan $ 222 $ 223 Total impaired account balances: Retail loan $ 222 $ 223 Wholesale 207 230 Real estate 203 203 Working capital 51 34 Total $ 683 $ 690 The primary source of interest income recognized on the loans in the table above is from performing troubled debt restructurings. Interest income on impaired finance receivables and interest income recognized using a cash-basis method of accounting during fiscal 2018 and 2017 were not significant. Note 4 – Finance Receivables, Net (Continued) Troubled Debt Restructuring For accounts not under bankruptcy protection, the amount of finance receivables modified as a troubled debt restructuring during fiscal 2018 and 2017 was not significant for each class of finance receivables. Troubled debt restructurings for non-bankrupt accounts within the retail loan class of finance receivables are comprised exclusively of contract term extensions that reduce the monthly payment due from the customer. For the three classes of finance receivables within the dealer products portfolio segment, troubled debt restructurings include contract term extensions, interest rate adjustments, waivers of loan covenants, or any combination of the three. Troubled debt restructurings of accounts not under bankruptcy protection did not include forgiveness of principal or interest rate adjustments during fiscal 2018 and 2017. We consider finance receivables under bankruptcy protection within the retail loan class to be troubled debt restructurings as of the date we receive notice of a customer filing for bankruptcy protection, regardless of the ultimate outcome of the bankruptcy proceedings. The bankruptcy court may impose modifications as part of the proceedings, including interest rate adjustments and forgiveness of principal. For fiscal 2018 and 2017, the financial impact of troubled debt restructurings related to finance receivables under bankruptcy protection was not significant to our Consolidated Statements of Income and Consolidated Balance Sheets. Payment Defaults Finance receivables modified as troubled debt restructurings for which there was a subsequent payment default during fiscal 2018 and 2017, and for which the modification occurred within twelve months of the payment default, were not significant for all classes of such receivables. |
Investments in Operating Leases
Investments in Operating Leases, Net | 12 Months Ended |
Mar. 31, 2018 | |
Leases Operating [Abstract] | |
Investments in Operating Leases, Net | Note 5 – Investments in Operating Leases, Net Investments in operating leases, net consist of leases, net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses. Securitized investments in operating leases represent beneficial interests in a pool of certain vehicle leases that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements as discussed further in Note 10 – Variable Interest Entities. Cash flows from these securitized investments in operating leases are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. Investments in operating leases, net consisted of the following: March 31, March 31, 2018 2017 Investments in operating leases $ 42,863 $ 41,874 Securitized investments in operating leases 7,869 6,502 50,732 48,376 Deferred origination (fees) and costs, net (224 ) (201 ) Deferred income (1,700 ) (1,196 ) Accumulated depreciation (9,977 ) (8,672 ) Allowance for credit losses (134 ) (155 ) Investments in operating leases, net $ 38,697 $ 38,152 Future minimum rentals on investments in operating leases are as follows: Years ending March 31, Future minimum rentals on operating leases 2019 $ 6,067 2020 3,769 2021 1,438 2022 157 2023 6 Total $ 11,437 A portion of our operating lease contracts has historically terminated prior to maturity. Future minimum rentals shown above should not be considered indicative of future cash collections. As of March 31, 2018 and 2017, there was no impairment in our investment in operating leases portfolio. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Mar. 31, 2018 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses | Note 6 – Allowance for Credit Losses The following table provides information related to our allowance for credit losses on finance receivables and investments in operating leases: Years Ended March 31, 2018 2017 2016 Allowance for credit losses at beginning of period $ 622 $ 535 $ 485 Provision for credit losses 401 582 441 Transferred to held-for-sale 1 - - (7 ) Charge-offs, net of recoveries (426 ) (495 ) (384 ) Allowance for credit losses at end of period $ 597 $ 622 $ 535 1 Charge-offs are shown net of recoveries of $90 million, $79 million and $72 million for fiscal 2018, 2017 and 2016, respectively. Allowance for Credit Losses and Finance Receivables by Portfolio Segment The following tables provide information related to our allowance for credit losses and finance receivables by portfolio segment: Year Ended March 31, 2018 Retail Loan Dealer Total Beginning balance, April 1, 2017 $ 344 $ 123 $ 467 Charge-offs (355 ) - (355 ) Recoveries 50 - 50 Provision for credit losses 273 28 301 Ending balance, March 31, 2018 $ 312 $ 151 $ 463 Allowance for Credit Losses for Finance Receivables: Ending balance: Individually evaluated for impairment $ - $ 70 $ 70 Ending balance: Collectively evaluated for impairment $ 312 $ 81 $ 393 Finance Receivables: Ending balance, March 31, 2018 $ 53,395 $ 17,420 $ 70,815 Ending balance: Individually evaluated for impairment $ - $ 495 $ 495 Ending balance: Collectively evaluated for impairment $ 53,395 $ 16,925 $ 70,320 The ending balance of finance receivables collectively evaluated for impairment in the above table includes approximately $222 million of finance receivables within the retail loan portfolio segment that are specifically identified as impaired. These amounts are aggregated within their respective portfolio segment when determining the allowance for credit losses as of March 31, 2018, as they are deemed to be insignificant for individual evaluation and we have determined that the allowance for credit losses is not significant and would not be materially different if the amounts had been individually evaluated for impairment. The ending balance of finance receivables for the dealer products portfolio segment collectively evaluated for impairment as of March 31, 2018 includes $1,030 million in finance receivables that are guaranteed by TMNA and $146 million in finance receivables that are guaranteed by third party private Toyota distributors. These finance receivables are related to certain Toyota and Lexus dealers and other third parties to whom we provided financing at the request of TMNA and third party private Toyota distributors. Note 6 – Allowance for Credit Losses (Continued) Year Ended March 31, 2017 Retail Loan Dealer Total Beginning balance, April 1, 2016 $ 289 $ 132 $ 421 Charge-offs (399 ) - (399 ) Recoveries 50 - 50 Provision for credit losses 404 (9 ) 395 Ending balance, March 31, 2017 $ 344 $ 123 $ 467 Allowance for Credit Losses for Finance Receivables: Ending balance: Individually evaluated for impairment $ - $ 33 $ 33 Ending balance: Collectively evaluated for impairment $ 344 $ 90 $ 434 Finance Receivables: Ending balance, March 31, 2017 $ 51,409 $ 17,899 $ 69,308 Ending balance: Individually evaluated for impairment $ - $ 457 $ 457 Ending balance: Collectively evaluated for impairment $ 51,409 $ 17,442 $ 68,851 The ending balance of finance receivables collectively evaluated for impairment in the above table includes approximately $220 million of finance receivables within the retail loan portfolio segment that are specifically identified as impaired. These amounts are aggregated within their respective portfolio segment when determining the allowance for credit losses as of March 31, 2017, as they are deemed to be insignificant for individual evaluation and we have determined that the allowance for credit losses is not significant and would not be materially different if the amounts had been individually evaluated for impairment. The ending balance of finance receivables for the dealer products portfolio segment collectively evaluated for impairment as of March 31, 2017 includes $1,051 million in finance receivables that are guaranteed by TMNA and $166 million in finance receivables that are guaranteed by third party private Toyota distributors. These finance receivables are related to certain Toyota and Lexus dealers and other third parties to whom we provided financing at the request of TMNA and third party private Toyota distributors. Note 6 – Allowance for Credit Losses (Continued) Past Due Finance Receivables and Investments in Operating Leases The following table shows aggregate balances of finance receivables and investments in operating leases 60 or more days past due: March 31, March 31, 2018 2017 Aggregate balances 60 or more days past due Finance receivables $ 223 $ 192 Investments in operating leases 106 95 Total $ 329 $ 287 Substantially all finance receivables and investments in operating leases do not involve recourse to the dealer in the event of customer default. Finance receivables and investments in operating leases 60 or more days past due include contracts in bankruptcy and contracts greater than 120 days past due, which are recorded at the fair value of collateral less estimated costs to sell. Contracts for which vehicles have been repossessed are excluded. Past Due Finance Receivables by Class The following tables summarize the aging of finance receivables by class: March 31, 2018 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Greater Past Due Total Due Current Total Receivables 90 Days or Greater Due and Accruing Retail loan $ 613 $ 158 $ 65 $ 836 $ 52,559 $ 53,395 $ 46 Wholesale - - - - 10,513 10,513 - Real estate - - - - 4,630 4,630 - Working capital - - - - 2,277 2,277 - Total $ 613 $ 158 $ 65 $ 836 $ 69,979 $ 70,815 $ 46 March 31, 2017 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Greater Past Due Total Due Current Total Receivables 90 Greater Due and Accruing Retail loan $ 586 $ 129 $ 63 $ 778 $ 50,631 $ 51,409 $ 41 Wholesale - - - - 10,951 10,951 - Real estate - - - - 4,713 4,713 - Working capital 3 - - 3 2,232 2,235 - Total $ 589 $ 129 $ 63 $ 781 $ 68,527 $ 69,308 $ 41 |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Interest Expense | 12 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Activities and Interest Expense | Note 7 – Derivatives, Hedging Activities and Interest Expense Derivative Instruments Our liabilities consist mainly of fixed and floating rate debt, denominated in U.S. dollars and various other currencies, which we issue in the global capital markets, while our assets consist primarily of U.S. dollar denominated, fixed rate receivables. We enter into interest rate swaps, interest rate floors, interest rate caps and foreign currency swaps to hedge the interest rate and foreign currency risks that result from the different characteristics of our assets and liabilities. Our use of derivative transactions is intended to reduce long-term fluctuations in the fair value of assets and liabilities caused by market movements. All of our derivative activities are authorized and monitored by our management and our Asset-Liability Committee, which provides a framework for financial controls and governance to manage market risk. Credit Risk Related Contingent Features Our derivative contracts are governed by International Swaps and Derivatives Association (“ISDA”) Master Agreements. Substantially all of these ISDA Master Agreements contain reciprocal ratings triggers providing either party with an option to terminate the agreement at market value in the event of a ratings downgrade of the other party below a specified threshold. We have daily valuation and collateral exchange arrangements with all of our counterparties. Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization arrangement. However, due to the time required to move collateral, there may be a delay of up to one day between the exchange of collateral and the valuation of our derivatives. We would not be required to post additional collateral to the counterparties with whom we were in a net liability position at March 31, 2018, if our credit ratings were to decline, since we fully collateralize without regard to credit ratings with these counterparties. Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued) Derivative Activity Impact on Financial Statements The following tables show the financial statement line item and amount of our derivative assets and liabilities that are reported in our Consolidated Balance Sheets: March 31, 2018 Hedge accounting Non-hedge derivatives accounting Total Fair Fair Fair Notional value Notional value Notional value Other assets: Interest rate swaps $ - $ - $ 71,464 $ 872 $ 71,464 $ 872 Interest rate floors - - 847 1 847 1 Foreign currency swaps 119 8 7,248 477 7,367 485 Total $ 119 $ 8 $ 79,559 $ 1,350 $ 79,678 $ 1,358 Counterparty netting and collateral held (1,297 ) Carrying value of derivative contracts – Other assets $ 61 Other liabilities: Interest rate swaps $ - $ - $ 41,513 $ 628 $ 41,513 $ 628 Foreign currency swaps - - 5,863 200 5,863 200 Total $ - $ - $ 47,376 $ 828 $ 47,376 $ 828 Counterparty netting and collateral posted (822 ) Carrying value of derivative contracts – Other liabilities $ 6 As of March 31, 2018, we held collateral of $737 million which offset derivative assets and we posted collateral of $262 million which offset derivative liabilities. In addition, there was $560 million in counterparty netting included for both derivative assets and derivative liabilities. We also held excess collateral of $11 million which we did not use to offset derivative assets, and we posted excess collateral of $3 million which we did not use to offset derivative liabilities. Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued) March 31, 2017 Hedge accounting Non-hedge derivatives accounting Total Fair Fair Fair Notional value Notional value Notional value Other assets: Interest rate swaps $ - $ - $ 62,525 $ 475 $ 62,525 $ 475 Interest rate floors - - 1,673 2 1,673 2 Foreign currency swaps 271 28 1,648 94 1,919 122 Total $ 271 $ 28 $ 65,846 $ 571 $ 66,117 $ 599 Counterparty netting and collateral held (548 ) Carrying value of derivative contracts – Other assets $ 51 Other liabilities: Interest rate swaps $ - $ - $ 45,297 $ 277 $ 45,297 $ 277 Interest rate caps - - 30 - 30 - Foreign currency swaps 93 1 12,570 1,175 12,663 1,176 Total $ 93 $ 1 $ 57,897 $ 1,452 $ 57,990 $ 1,453 Counterparty netting and collateral posted (1,407 ) Carrying value of derivative contracts – Other liabilities $ 46 As of March 31, 2017, we held collateral of $154 million which offset derivative assets and we posted collateral of $1,013 million which offset derivative liabilities. In addition, there was $394 million in counterparty netting included for both derivative assets and derivative liabilities. We also held excess collateral of $5 million which we did not use to offset derivative assets, and we posted excess collateral of $5 million which we did not use to offset derivative liabilities. Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued) The following table summarizes the components of interest expense, including the location and amount of gains and losses on derivative instruments and related hedged items, as reported in our Consolidated Statements of Income: Years Ended March 31, 2018 2017 2016 Interest expense on debt $ 1,970 $ 1,570 $ 1,308 Interest income on derivatives (67 ) (18 ) (7 ) Interest expense on debt and derivatives, net 1,903 1,552 1,301 (Gain) loss on hedge accounting derivatives: Foreign currency swaps (1 ) 11 - (Gain) loss on hedge accounting derivatives (1 ) 11 - Less hedged item: change in fair value of fixed rate debt denominated in a foreign currency 1 (11 ) (2 ) Ineffectiveness related to hedge accounting derivatives - - (2 ) Loss (gain) on debt denominated in foreign currencies and U.S. dollar non-hedge accounting derivatives: Loss (gain) on non-hedge accounting debt denominated in foreign currencies 1,344 (652 ) 503 (Gain) loss on non-hedge accounting foreign currency swaps (1,306 ) 880 (573 ) (Gain) on U.S. dollar non-hedge accounting interest rate swaps (90 ) (26 ) (92 ) Total interest expense $ 1,851 $ 1,754 $ 1,137 Interest expense on debt and derivatives represents net interest settlements and changes in accruals. Gains and losses on hedge accounting derivatives and debt denominated in foreign currencies exclude net interest settlements and changes in accruals. Cash flows associated with hedge accounting, non-hedge accounting, and de-designated derivatives are reported in Net cash provided by operating activities in our Consolidated Statements of Cash Flows. The relative fair value allocation of derivative credit value adjustments for counterparty and non-performance credit risk within interest expense was not significant for the years ended March 31, 2018, 2017 and 2016, as we are fully collateralized on substantially all of our derivatives without regard to credit ratings. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 12 Months Ended |
Mar. 31, 2018 | |
Other Assets And Other Liabilities [Abstract] | |
Other Assets and Other Liabilities | Note 8 – Other Assets and Other Liabilities Other assets and other liabilities consisted of the following: March 31, March 31, 2018 2017 Other assets: Notes receivable from affiliates $ 68 $ 823 Used vehicles held for sale 366 264 Derivative assets 61 51 Other assets 1,119 906 Total other assets $ 1,614 $ 2,044 Other liabilities: Unearned insurance premiums and contract revenues $ 2,271 $ 2,154 Accounts payable and accrued expenses 1,054 1,057 Deferred income 468 468 Income taxes payable 2 62 Derivative liabilities 6 46 Other liabilities 186 165 Total other liabilities $ 3,987 $ 3,952 |
Debt
Debt | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 – Debt Debt and the related weighted average contractual interest rates are summarized as follows: Weighted average contractual interest rates March 31, March 31, March 31, March 31, 2018 2017 2018 2017 Commercial paper $ 27,313 $ 26,632 1.80 % 1.11 % Unsecured notes and loans payable 57,402 57,282 2.18 % 1.91 % Secured notes and loans payable 13,638 14,319 1.95 % 1.32 % Total debt $ 98,353 $ 98,233 2.04 % 1.60 % The carrying value of our debt includes unamortized premiums, discounts and debt issuance costs of $353 million and $307 million as of March 31, 2018 and 2017, respectively. The face value of commercial paper, unsecured notes and loans payable and secured notes and loans payable was $27.4 billion, $57.6 billion and $13.7 billion, respectively, as of March 31, 2018 and $26.7 billion, $57.4 billion and $14.3 billion, respectively, as of March 31, 2017. As of March 31, 2018, our commercial paper had a weighted average remaining maturity of 70 days, while our unsecured and secured notes and loans payable mature on various dates through fiscal 2047. Weighted average contractual interest rates are calculated based on original notional or par value before consideration of premium or discount. Our unsecured notes and loans payable consist of both fixed and variable rate debt with contractual interest rates ranging from 0 percent to 5.0 percent at March 31, 2018 and 0 percent to 5.8 percent at March 31, 2017. Upon issuance of fixed rate notes, we generally elect to enter into interest rate swaps to convert fixed rate payments on notes to floating rate payments. Our unsecured notes and loans payable contain covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets. We are currently in compliance with these covenants and conditions. Certain unsecured notes and loans payable are denominated in various foreign currencies, and include the impact of translation adjustments. The carrying values of these foreign currency denominated unsecured notes and loans payable were $13.3 billion at March 31, 2018 and 2017. Concurrent with the issuance of these foreign currency unsecured notes and loans payable, we entered into currency swaps in the same notional amount to convert non-U.S. currency payments to U.S. dollar denominated payments. Our secured notes and loans payable are denominated in U.S. dollars and consist of both fixed and variable rate debt with contractual interest rates ranging from 1.1 percent to 2.5 percent at March 31, 2018 and 0.8 percent to 2.1 percent at March 31, 2017. Secured notes and loans payable are issued using on-balance sheet securitization trusts, as further discussed in Note 10 – Variable Interest Entities. These notes are repayable only from collections on the underlying securitized retail finance receivables and the beneficial interests in investments in operating leases and from related credit enhancements. Note 9 – Debt (Continued) Scheduled maturities of our debt portfolio are summarized below. Actual repayment of secured debt will vary based on the repayment activity on the related pledged assets. Future Years ending March 31, debt maturities 2019 $ 50,535 2020 13,347 2021 9,981 2022 11,434 2023 8,587 Thereafter 4,816 Unamortized discounts, costs and carrying value adjustment (347 ) Total debt $ 98,353 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Mar. 31, 2018 | |
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract] | |
Variable Interest Entities | Note 10 – Variable Interest Entities Consolidated Variable Interest Entities We use one or more special purpose entities that are considered Variable Interest Entities to issue asset-backed securities to third party bank-sponsored asset-backed securitization vehicles and to investors in securitization transactions. The securities issued by these VIEs are backed by the cash flows related to retail finance receivables and beneficial interests in investments in operating leases (“Securitized Assets”). We hold variable interests in the VIEs that could potentially be significant to the VIEs. We determined that we are the primary beneficiary of the securitization trusts because (i) our servicing responsibilities for the Securitized Assets give us the power to direct the activities that most significantly impact the performance of the VIEs, and (ii) our variable interests in the VIEs give us the obligation to absorb losses and the right to receive residual returns that could potentially be significant. The following tables show the assets and liabilities related to our VIE securitization transactions that were included in our Consolidated Balance Sheets: March 31, 2018 VIE Assets VIE Liabilities Gross Net Restricted Cash Securitized Assets Securitized Assets Other Assets Debt Other Liabilities Retail finance receivables $ 729 $ 12,130 $ 11,927 $ 7 $ 9,958 $ 7 Investments in operating leases 297 7,869 5,706 118 3,680 3 Total $ 1,026 $ 19,999 $ 17,633 $ 125 $ 13,638 $ 10 March 31, 2017 VIE Assets VIE Liabilities Gross Net Restricted Cash Securitized Assets Securitized Assets Other Assets Debt Other Liabilities Retail finance receivables $ 856 $ 13,071 $ 12,865 $ 7 $ 11,017 $ 5 Investments in operating leases 211 6,502 4,888 80 3,302 1 Total $ 1,067 $ 19,573 $ 17,753 $ 87 $ 14,319 $ 6 Restricted Cash, including cash equivalents, shown in the table above represents collections from the underlying Gross Securitized Assets shown in the table above and certain reserve deposits held by TMCC for the VIEs and is included as part of Restricted cash and cash equivalents on our Consolidated Balance Sheets. Gross Securitized Assets represent finance receivables and beneficial interests in investments in operating leases securitized for the asset-backed securities issued. Net Securitized Assets shown in the table above are presented net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses. Other Assets represent used vehicles held-for-sale that were repossessed by or returned to TMCC for the benefit of the VIEs. The related debt of these consolidated VIEs is presented net of $1,520 million and $1,526 million of securities retained by TMCC at March 31, 2018 and 2017, respectively. Other Liabilities represents accrued interest on the debt of the consolidated VIEs. The assets of the VIEs and the restricted cash and cash equivalents held by TMCC serve as the sole source of repayment for the asset-backed securities issued by these entities. Investors in the notes issued by the VIEs do not have recourse to us or our other assets, with the exception of customary representation and warranty repurchase provisions and indemnities. As the primary beneficiary of these entities, we are exposed to credit, residual value, interest rate, and prepayment risk from the Securitized Assets in the VIEs. However, our exposure to these risks did not change as a result of the transfer of the assets to the VIEs. We may also be exposed to interest rate risk arising from the secured notes issued by the VIEs. Note 10 – Variable Interest Entities (Continued) In addition, we entered into interest rate swaps with certain special purpose entities that issue variable rate debt. Under the terms of these swaps, the special purpose entities are obligated to pay TMCC a fixed rate of interest on certain payment dates in exchange for receiving a floating rate of interest on notional amounts equal to the outstanding balance of the secured debt. This arrangement enables the special purpose entities to mitigate the interest rate risk inherent in issuing variable rate debt that is secured by fixed rate Securitized Assets. The transfers of the Securitized Assets to the special purpose entities in our securitizations are considered to be sales for legal purposes. However, the Securitized Assets and the related debt remain on our Consolidated Balance Sheets. We recognize financing revenue on the Securitized Assets and interest expense on the secured debt issued by the special purpose entities. We also maintain an allowance for credit losses on the Securitized Assets to cover estimated probable credit losses using a methodology consistent with that used for our non-securitized asset portfolio. The interest rate swaps between TMCC and the special purpose entities are considered intercompany transactions and therefore are eliminated in our consolidated financial statements. Non-consolidated Variable Interest Entities We provide lending to Toyota and Lexus dealers through the Toyota Dealer Investment Group’s Dealer Capital Program (“TDIG Program”) operated by our affiliate, TMNA, which has an equity interest in these dealerships. Dealers participating in this program have been determined to be VIEs. We do not consolidate the dealerships in this program as we are not the primary beneficiary and any exposure to loss is limited to the amount of the credit facility. Amounts due from these dealers under the TDIG Program that are classified as Finance receivables, net in our Consolidated Balance Sheets at March 31, 2018 and 2017 and revenues earned from these dealers during fiscal 2018, 2017 and 2016 were not significant. We also have other lending relationships which have been determined to be VIEs, but these relationships are not consolidated as we are not the primary beneficiary. Amounts due and revenues earned under these relationships as of March 31, 2018 and 2017 were not significant. |
Liquidity Facilities and Letter
Liquidity Facilities and Letters of Credit | 12 Months Ended |
Mar. 31, 2018 | |
Line Of Credit Facility [Abstract] | |
Liquidity Facilities and Letters of Credit | Note 11 – Liquidity Facilities and Letters of Credit For additional liquidity purposes, we maintain syndicated credit facilities with certain banks. 364 Day Credit Agreement, Three Year Credit Agreement and Five Year Credit Agreement In November 2017, TMCC, Toyota Credit de Puerto Rico Corp. (“TCPR”) and other Toyota affiliates entered into a $5.0 billion 364 day syndicated bank credit facility, a $5.0 billion three year syndicated bank credit facility and a $5.0 billion five year syndicated bank credit facility, expiring in fiscal 2019, 2021, and 2023, respectively. The ability to make draws is subject to covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets. These agreements may be used for general corporate purposes and none were drawn upon as of March 31, 2018. We are currently in compliance with the covenants and conditions of the credit agreements described above. Other Unsecured Credit Agreements TMCC has entered into additional unsecured credit facilities with various banks. As of March 31, 2018, TMCC had committed bank credit facilities totaling $5.5 billion, of which $2.4 billion, $450 million and $2.6 billion mature in fiscal 2019, 2020 and 2021, respectively. These credit agreements contain covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets. These credit facilities were not drawn upon as of March 31, 2018 and 2017. We are currently in compliance with the covenants and conditions of the credit agreements described above. |
Pension and Other Benefits Plan
Pension and Other Benefits Plans | 12 Months Ended |
Mar. 31, 2018 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Pension and Other Benefits | Note 12 – Pension and Other Benefit Plans We are a participating employer in certain retirement and post-employment health care, life insurance, and other benefits sponsored by TMNA, an affiliate. Costs of each plan are generally allocated to us by TMNA based on relative payroll costs associated with participating or eligible employees at TMCC as compared to the plan as a whole. Defined Benefit Plan Prior to January 1, 2015, our employees were generally eligible to participate in the Toyota Motor Sales, U.S.A., Inc. Pension Plan (the “Pension Plan”) the Benefits payable under this non-contributory defined benefit pension plan are based, generally, upon the employees' years of credited service (up to a maximum of 25 years), the highest average annual compensation (as defined in the plan) for any 60 consecutive month period out of the last 120 months of employment (the “Applicable Years”), and one-half of eligible bonus/gift payments for the Applicable Years (recalculated to determine the annual average of such amount), reduced by a percentage of the estimated amount of social security benefits. Costs allocated to TMCC for our employees in the Pension Plan and certain other non-qualified plans were not significant for fiscal 2018, 2017 and 2016. Defined Contribution Plan Employees meeting certain eligibility requirements, as defined in the plan documents, may participate in the Toyota Motor North America, Inc. Retirement TMCC employer contributions to the savings plan were not significant for fiscal 2018, 2017 and 2016. Other Post-Retirement Benefit Plans Employees are generally eligible to participate in other post-retirement benefits sponsored by TMNA which provide certain health care and life insurance benefits to eligible retired employees. Generally, in order to be eligible for these benefits, the employee must be age 55 or older with 10 or more years of service. Other post-retirement benefit costs allocated to TMCC were not significant for fiscal 2018, 2017 and 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13 – Income Taxes On December 22, 2017, the TCJA was signed into law. It changed many aspects of U.S. corporate income taxation and included a reduction of the corporate income tax rate from 35% to 21% and imposed a tax on deemed repatriated earnings of foreign subsidiaries. Our assessment of the impact of the TCJA is substantially complete and is reflected in our consolidated financial statements as of March 31, 2018 and for the year then ended. As a result of the TCJA in fiscal 2018, we recorded a $2.9 billion tax benefit from the revaluation of our net deferred tax liabilities, offset by a provisional deemed repatriation tax of $10 million. Upon completion of our fiscal 2018 income tax return, we may identify additional revaluation adjustments to our recorded deferred tax liabilities, including the deemed repatriation tax. The issuance of future administrative guidance may further clarify the interpretation of the new law and require adjustments to the provisional amount we recorded. Any adjustment required to the provisional amount for repatriation tax recorded in fiscal 2018 is not expected to be material. The (benefit) provision for income taxes consisted of the following: Years ended March 31, 2018 2017 2016 Current Federal $ (45 ) $ 136 $ 73 State (10 ) 2 (33 ) Foreign 3 7 9 Total (52 ) 145 49 Deferred Federal (2,625 ) (9 ) 420 State 48 5 111 Foreign - 1 - Total (2,577 ) (3 ) 531 (Benefit) provision for income taxes $ (2,629 ) $ 142 $ 580 A reconciliation between the U.S. federal statutory tax rate and the effective tax rate is as follows: Years ended March 31, 2018 2017 2016 Provision for income taxes at U.S. federal statutory tax rate 1 31.6 % 35.0 % 35.0 % State and local taxes (net of federal tax benefit) 4.8 % 3.6 % 3.2 % Revaluation of federal deferred tax liability from TCJA (371.6 )% - - Other, net (1.4 )% (3.9 )% 0.2 % Effective tax rate (336.6 )% 34.7 % 38.4 % 1 Note 13 – Income Taxes (Continued) Our net deferred income tax liability consisted of the following deferred tax liabilities and assets: March 31, 2018 2017 Liabilities: Lease transactions $ 5,642 $ 7,647 State taxes, net of federal tax benefit 856 640 Mark-to-market of investments in marketable securities and derivatives 185 267 Other 244 383 Deferred tax liabilities $ 6,927 $ 8,937 Assets: Provision for credit and residual value losses 420 593 Deferred costs and fees 186 306 Net operating loss and tax credit carryforwards 993 67 Other 31 66 Deferred tax assets 1,630 1,032 Valuation allowance (29 ) (21 ) Net deferred tax assets $ 1,601 $ 1,011 Net deferred income tax liability 1 $ 5,326 $ 7,926 1 We have deferred tax assets related to cumulative federal and state net operating loss carryforwards of $857 million and $109 million at March 31, 2018, respectively, compared to no federal net operating loss deferred tax assets and $59 million in state net operating loss deferred tax assets at March 31, 2017, respectively. We also have deferred tax assets for federal alternative fuel credits of $8 million and a deferred tax asset for foreign tax credit carryforwards of $10 million at March 31, 2018 compared to no deferred tax assets for federal alternative fuel vehicle credits or foreign tax credit carryforwards at March 31, 2017. The federal net operating loss carryforwards have no expiration and other tax credit carryforwards will expire beginning in fiscal 2028. Some state net operating loss carryforwards have no expiration while others expire beginning in fiscal 2020. The deferred tax assets related to foreign tax credit and state tax net operating loss carryforwards are reduced by a valuation allowance of $29 million at March 31, 2018. The deferred tax assets related to state tax net operating loss carryforwards were reduced by a valuation allowance of $21 million at March 31, 2017. The determination of the valuation allowance is based on management’s estimate of future taxable income during the respective carryforward periods. Apart from the valuation allowance, we believe that the remaining deferred tax assets will be realized in full. Realization with respect to the federal tax loss and alternative fuel vehicle credit carryforwards is dependent on generating sufficient income. Although realization is not assured, management believes it is more likely than not that the deferred assets will be realized. The amount of the deferred tax assets considered realizable could be reduced if management’s estimates change. Note 13 – Income Taxes (Continued) We have made an assertion of permanent reinvestment of earnings from our foreign subsidiary; as a result, other than the deemed repatriation tax that is provided pursuant to the TCJA, state and local taxes have not been provided for unremitted earnings of our foreign subsidiary. At March 31, 2018 and 2017, these unremitted earnings totaled $223 million and $220 million, respectively. Determination of the amount of the deferred state and local tax liability is not practicable, and accordingly no estimate of the unrecorded deferred state and local tax liability is provided. Although we do not foresee any events causing repatriation of earnings, possible examples may include but are not limited to parent company capital needs or exiting the business in the foreign country. Our share of the income tax payable or receivable in those states where we filed consolidated or combined returns with TMNA and its subsidiaries was not significant for both March 31, 2018 and 2017. Additionally, our federal and state income tax payable or receivable from TMCC affiliated companies, including TFSIC, Toyota Financial Savings Bank (“TFSB”), and Toyota Financial Services Securities USA Corporation, was not significant for both March 31, 2018 and 2017. The guidance for the accounting and reporting for income taxes requires us to assess tax positions in cases where the interpretation of the tax law may be uncertain. Unrecognized tax benefits were not significant as of March 31, 2018, 2017 and 2016. We do not have any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months. We accrue interest, if applicable, related to uncertain income tax positions in interest expense. Statutory penalties, if applicable, accrued with respect to uncertain income tax positions are recognized as an addition to the income tax liability. For each of fiscal 2018, 2017, and 2016, accrued interest was not significant and no penalties were accrued. Tax-related Contingencies As of March 31, 2018, we remained under IRS examination for fiscal 2018 and fiscal 2017. The IRS examination for fiscal 2016 was concluded in the second quarter of fiscal 2018 and the IRS examination for fiscal 2017 was concluded in the first quarter of fiscal 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14 – Commitments and Contingencies Commitments and Guarantees We have entered into certain commitments and guarantees for which the maximum unfunded amounts are summarized in the table below: March 31, March 31, 2018 2017 Commitments: Credit facilities commitments with dealers $ 1,286 $ 1,199 Minimum lease commitments 162 59 Total commitments 1,448 1,258 Guarantees of affiliate pollution control and solid waste disposal bonds 100 100 Total commitments and guarantees $ 1,548 $ 1,358 Wholesale financing is not considered to be a contractual commitment as the arrangements are not binding arrangements under which TMCC is required to perform. In July 2017, we entered into a 15-year lease agreement, which expires in August 2032, with TMNA for our new headquarters facility in Plano, Texas. Total rental expense, including payments to affiliates, was $30 million, $27 million, and $25 million for fiscal 2018, 2017, and 2016, respectively. Minimum lease commitments in the table above include $105 million and $10 million for facilities leases with affiliates at March 31, 2018 and 2017, respectively. At March 31, 2018, minimum future commitments under lease agreements to which we are a lessee, including those with affiliates, are as follows: Future Years ending March 31, lease 2019 $ 24 2020 21 2021 17 2022 18 2023 12 Thereafter 70 Total $ 162 Commitments We provide fixed and variable rate working capital loans, revolving lines of credit, and real estate financing to dealers and various multi-franchise organizations referred to as dealer groups for facilities construction and refurbishment, working capital requirements, real estate purchases, business acquisitions and other general business purposes. These loans are typically secured with liens on real estate, vehicle inventory, and/or other dealership assets, as appropriate, and may be guaranteed by individual or corporate guarantees of affiliated dealers, dealer groups, or dealer principals. Although the loans are typically collateralized or guaranteed, the value of the underlying collateral or guarantees may not be sufficient to cover our exposure under such agreements. Our pricing reflects market conditions, the competitive environment, the level of support dealers provide our retail, lease and insurance business and the credit worthiness of each dealer. Amounts drawn under these facilities are reviewed for collectability on a quarterly basis, in conjunction with our evaluation of the allowance for credit losses. Note 14 – Commitments and Contingencies (Continued) In fiscal 2018, we completed the move of our corporate headquarters from Torrance, California to Plano, Texas as part of TMC’s consolidation of its three North American headquarters for manufacturing, sales and marketing, and finance operations to a single new headquarters facility. Total relocation costs for employees and other relocation expenses were estimated to be approximately $114 million and have been expensed as incurred. To date, the Company has incurred $105 million in relocation expenses. The relocation costs incurred during the years ended March 31, 2018, 2017 and 2016 were $43 million, $43 million and $15 million, respectively. We did not incur lease termination costs as a result of our relocation. Guarantees and Other Contingencies TMCC has guaranteed bond obligations totaling $100 million in principal that were issued by Putnam County, West Virginia and Gibson County, Indiana to finance the construction of pollution control facilities at manufacturing plants of certain TMCC affiliates. The bonds mature in the following fiscal years ending March 31: 2028 - $20 million; 2029 - $50 million; 2030 - $10 million; 2031 - $10 million; and 2032 - $10 million. TMCC would be required to perform under the guarantees in the event of non-payment on the bonds and other related obligations. TMCC is entitled to reimbursement by the applicable affiliates for any amounts paid. TMCC receives an annual fee of $78 thousand for guaranteeing such payments. TMCC has not been required to perform under any of these affiliate bond guarantees as of March 31, 2018 and 2017. Indemnification In the ordinary course of business, we enter into agreements containing indemnification provisions standard in the industry related to several types of transactions, including, but not limited to, debt funding, derivatives, securitization transactions, and our vendor and supplier agreements. Performance under these indemnities would occur upon a breach of the representations, warranties or covenants made or given, or a third party claim. In addition, we have agreed in certain debt and derivative issuances, and subject to certain exceptions, to gross-up payments due to third parties in the event that withholding tax is imposed on such payments. In addition, certain of our funding arrangements may require us to pay lenders for increased costs due to certain changes in laws or regulations. Due to the difficulty in predicting events which could cause a breach of the indemnification provisions or trigger a gross-up or other payment obligation, we are not able to estimate our maximum exposure to future payments that could result from claims made under such provisions. We have not made any material payments in the past as a result of these provisions, and as of March 31, 2018, we determined that it is not probable that we will be required to make any material payments in the future. As of March 31, 2018 and 2017, no amounts have been recorded under these indemnification provisions. Note 14 – Commitments and Contingencies (Continued) Litigation and Governmental Proceedings Various legal actions, governmental proceedings and other claims are pending or may be instituted or asserted in the future against us with respect to matters arising in the ordinary course of business. Certain of these actions are or purport to be class action suits, seeking sizeable damages and/or changes in our business operations, policies and practices. Certain of these actions are similar to suits that have been filed against other financial institutions and captive finance companies. On January 28, 2015, we received a request for documents and information from the New York State Department of Financial Services relating to our lending practices (including fair lending), and on April 6, 2016, we received a request for documents and information pursuant to a civil investigative demand from the Commonwealth of Massachusetts Office of the Attorney General relating to our financing of guaranteed auto protection insurance products in Massachusetts on retail contracts. We provided the requested documents and information, but have not had further communication with either agency regarding their respective reviews. We perform periodic reviews of pending claims and actions to determine the probability of adverse verdicts and resulting amounts of liability. We establish accruals for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. When we are able, we also determine estimates of reasonably possible loss or range of loss, whether in excess of any related accrued liability or where there is no accrued liability. Given the inherent uncertainty associated with legal matters, the actual costs of resolving legal claims and associated costs of defense may be substantially higher or lower than the amounts for which accruals have been established. Based on available information and established accruals, we do not believe it is reasonably possible that the results of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial condition or results of operations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15 – Related Party Transactions The tables below summarize amounts included in our Consolidated Statements of Income and in our Consolidated Balance Sheets under various related party agreements or relationships: Years Ended March 31, 2018 2017 2016 Total financing revenues: Manufacturers’ subvention and other revenues $ 1,602 $ 1,374 $ 1,315 Interest expense: Credit support fees incurred $ 94 $ 92 $ 91 Interest and other expenses $ 1 $ 3 $ 4 Insurance earned premiums and contract revenues: Insurance premiums and contract revenues $ 182 $ 149 $ 132 Investment and other income, net: Gain on sale of commercial finance business $ - $ - $ 197 Interest and other income $ 13 $ 9 $ 8 Expenses: Operating and administrative $ 80 $ 73 $ 81 Insurance losses and loss adjustment expenses 1 $ (3 ) $ - $ - 1 Amount includes the transfer of insurance losses and loss adjustment expenses under a reinsurance contract. Note 15 – Related Party Transactions (Continued) March 31, March 31, 2018 2017 Assets: Cash and cash equivalents Commercial paper $ 255 $ - Investments in marketable securities Commercial paper $ 52 $ - Finance receivables, net Accounts receivable $ 191 $ 138 Deferred retail subvention income $ (1,279 ) $ (967 ) Investments in operating leases, net Investments in operating leases, net $ 6 $ 4 Deferred lease subvention income $ (1,682 ) $ (1,174 ) Other assets Notes receivable $ 68 $ 823 Other receivables, net $ 310 $ 202 Liabilities: Other liabilities Unearned affiliate insurance premiums and contract revenues $ 328 $ 332 Other payables, net $ 74 $ 74 Notes payable $ 18 $ 13 TMCC receives subvention payments from TMNA which results in a gross monthly subvention receivable. As of March 31, 2018 and 2017, the subvention receivable from TMNA was $279 million and $165 million, respectively. The subvention receivable is recorded in Other receivables, net in Other assets as of March 31, 2018 and 2017. We have a master netting agreement with TMNA, which allows us to net settle payments for shared services and subvention transactions. Note 15 – Related Party Transactions (Continued) Financing Support Arrangements with Affiliates TMCC is party to a credit support agreement with TFSC (the “TMCC Credit Support Agreement”). The TMCC Credit Support Agreement requires TFSC to maintain certain ownership, net worth maintenance, and debt service provisions with respect to TMCC, but is not a guarantee by TFSC of any securities or obligations of TMCC. In conjunction with this credit support agreement, TMCC has agreed to pay TFSC a semi-annual fee based on a fixed rate applied to the weighted average outstanding amount of securities entitled to credit support. TCPR is the beneficiary of a credit support agreement with TFSC containing provisions similar to the TMCC Credit Support Agreement described above. In addition, TMCC receives support from and provides financing support to TFSC and other affiliates in the form of promissory notes, conduit finance agreements and various loan and credit facility agreements. As of March 31, 2018, total financing support available from affiliates totaled approximately $3.6 billion and total financing support available to affiliates totaled approximately $5.6 billion. The amounts outstanding under these agreements are recorded in Other assets and Other liabilities in our Consolidated Balance Sheets at March 31, 2018 and 2017. Other Financing Support Provided to Affiliates • TMCC provides home loans to certain employees. In addition, we also provide home equity advances through a relocation provider to certain employees relocating to Texas. TMCC executive officers and directors are not eligible for the home loan or home equity advance programs. • TMCC provides wholesale financing, real estate and working capital loans to certain dealerships that were consolidated with another affiliate under the accounting guidance for variable interest entities. TMCC also pays these dealers origination fees. These costs represent direct costs incurred in connection with the acquisition of retail and lease contracts, including subvention and other cash incentive programs. • TMCC has guaranteed the payments of principal and interest with respect to the bonds of manufacturing facilities of certain affiliates. The nature, business purpose, and amounts of these guarantees are described in Note 14 – Commitments and Contingencies. • TMCC and TFSB are parties to a master participation agreement pursuant to which TMCC agreed to purchase up to $60 million per year of residential mortgage loans originated by TFSB that meet specified credit underwriting guidelines. At March 31, 2018 and 2017, we had $30 million and $33 million, respectively, in loan participations outstanding that had been purchased by TMCC under this agreement. Note 15 – Related Party Transactions (Continued) Shared Service Arrangements with Affiliates TMCC is subject to the following shared service agreements: • TMCC and TCPR incur costs under various shared service agreements with our affiliates. Services provided by affiliates under the shared service agreements include marketing, technological, facilities, and administrative services, as well as services related to our funding and risk management activities and our bank and investor relationships. • TMCC provides various services to our financial services affiliates, including certain administrative, systems and operational support. • TMCC provides various services to TFSB, including marketing, administrative, systems, and operational support in exchange for TFSB making available certain financial products and services to TMCC’s customers and dealers meeting TFSB’s credit standards. TMCC is party to a master netting agreement with TFSB, which allows TMCC to net settle payments for shared services between TMCC and TFSB. • TMCC is a party to expense reimbursement agreements with TFSB and TFSC related to costs incurred by TMCC or these affiliates on behalf of the other party in connection with TMCC’s provision of services to these affiliates or the provision by these affiliates of certain financial products and services to our customers and dealers in support of TMCC’s customer loyalty strategy and programs, and other brand and sales support. TMCC is also party to an expense reimbursement agreement with TFSIC that reimbursed expenses incurred by TFSIC with respect to costs related to TFSB’s credit card rewards program. TFSB sold its credit card rewards portfolio in October 2015 and no credit card reward program costs have been incurred after such date. Note 15 – Related Party Transactions (Continued) Operational Support Arrangements with Affiliates • TMCC and TCPR provide various wholesale financing to dealers, which result in our having payables to TMNA and Toyota de Puerto Rico Corp (“TDPR”). • TMCC is party to a lease agreement with TMNA for our new headquarters facility in Plano, Texas, expiring in 2032 and our Customer Service Center located in Cedar Rapids, Iowa, expiring in 2019. TMCC was party to a lease agreement with TMNA for our former headquarters location in the TMS headquarters complex in Torrance, California, that was terminated in the third quarter of fiscal 2018. The lease commitments are described in Note 14 – Commitments and Contingencies. • Subvention receivable represents amounts due from TMNA and other affiliates in support of retail and lease subvention and other cash incentive programs offered by TMCC. Deferred subvention income represents the unearned portion of amounts received from these transactions, and manufacturers’ subvention and other revenues primarily represent the earned portion of such amounts. • Leases represent the investment in operating leases of vehicles leased to affiliates. • TMCC is a participating employer in certain retirement, postretirement health care and life insurance benefits sponsored by TMNA. Refer to Note 12 – Pension and Other Benefit Plans for additional information. TMCC also participates in share-based compensation plans sponsored by TMC. • TMCC is party to agreements with TMNA and other affiliates relating to the team member vehicle benefit program, which allows team members to lease Toyota and Lexus vehicles on terms exclusive to the benefit program. TMNA serves as the chief administrator of the program. TMCC acquires and services team member leases entered into after the third quarter of fiscal 2018. A portion of the vehicles used for the team member vehicle benefit program are acquired from TMNA. TMCC receives a per vehicle contribution from participating affiliates to assist with the costs of its contribution to the benefit program, and TMCC pays a per vehicle participation fee to TMNA to participate in the benefit program. • Affiliate insurance premiums and contract revenues primarily represent revenues from TMIS for administrative services and various types of coverage provided to TMNA and affiliates. This includes contractual indemnity coverage for limited warranties on certified Toyota and Lexus pre-owned vehicles and related administrative services for TMNA’s certified pre-owned vehicle program and umbrella liability policy. TMIS provides umbrella liability insurance to TMNA and affiliates covering certain dollar value layers of risk above various primary or self-insured retentions. On all layers in which TMIS has provided coverage, 99 percent of the risk has been ceded to various reinsurers. Up until April 30, 2016, TMIS also provided property deductible reimbursement insurance to TMNA and affiliates covering losses incurred under their primary policy. |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 16 – Segment Information Our reportable segments are finance and insurance operations. Finance operations include retail, leasing, and dealer financing provided to authorized dealers and their customers in the U.S. and Puerto Rico. Insurance operations are performed by TMIS and its subsidiaries. The segment information presented below includes allocated corporate expenses for the respective segments. The accounting policies of the operating segments are the same as those described in Note 1 – Summary of Significant Accounting Policies. Financial information for our reportable operating segments is summarized as follows: Year ended March 31, 2018 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 10,717 $ - $ - $ 10,717 Depreciation on operating leases 7,041 - - 7,041 Interest expense 1,863 - (12 ) 1,851 Net financing revenues 1,813 - 12 1,825 Insurance earned premiums and contract revenues - 882 - 882 Investment and other income, net 140 88 (12 ) 216 Realized gains, net on investments in marketable securities - 41 - 41 Net financing and other revenues 1,953 1,011 - 2,964 Expenses: Provision for credit losses 401 - - 401 Operating and administrative expenses 1,028 329 - 1,357 Insurance losses and loss adjustment expenses - 425 - 425 Total expenses 1,429 754 - 2,183 Income before income taxes 524 257 - 781 (Benefit) provision for income taxes (2,654 ) 25 - (2,629 ) Net income $ 3,178 $ 232 $ - $ 3,410 Total assets $ 116,942 $ 4,691 $ (1,087 ) $ 120,546 Note 16 – Segment Information (Continued) Year ended March 31, 2017 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 10,046 $ - $ - $ 10,046 Depreciation on operating leases 6,853 - - 6,853 Interest expense 1,759 - (5 ) 1,754 Net financing revenues 1,434 - 5 1,439 Insurance earned premiums and contract revenues - 804 - 804 Investment and other income, net 96 79 (5 ) 170 Realized gains (losses), net on investments in marketable securities 241 (15 ) - 226 Net financing and other revenues 1,771 868 - 2,639 Expenses: Provision for credit losses 582 - - 582 Operating and administrative expenses 979 298 - 1,277 Insurance losses and loss adjustment expenses - 371 - 371 Total expenses 1,561 669 - 2,230 Income before income taxes 210 199 - 409 Provision for income taxes 67 75 - 142 Net income $ 143 $ 124 $ - $ 267 Total assets $ 116,242 $ 4,476 $ (1,083 ) $ 119,635 Note 16 – Segment Information (Continued) Year ended March 31, 2016 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 9,403 $ - $ - $ 9,403 Depreciation on operating leases 5,914 - - 5,914 Interest expense 1,137 - - 1,137 Net financing revenues 2,352 - - 2,352 Insurance earned premiums and contract revenues - 719 - 719 Gain on sale of commercial finance business 197 - - 197 Investment and other income, net 59 99 - 158 Realized gains (losses), net on investments in marketable securities 40 (34 ) - 6 Net financing and other revenues 2,648 784 - 3,432 Expenses: Provision for credit losses 441 - - 441 Operating and administrative expenses 909 252 - 1,161 Insurance losses and loss adjustment expenses - 318 - 318 Total Expenses 1,350 570 - 1,920 Income before income taxes 1,298 214 - 1,512 Provision for income taxes 501 79 - 580 Net income $ 797 $ 135 $ - $ 932 Total assets $ 111,496 $ 4,161 $ (1,065 ) $ 114,592 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Note 17 – Selected Quarterly Financial Data Unaudited First Second Third Fourth Quarter Quarter Quarter Quarter Year ended March 31, 2018: Financing revenues: Operating lease $ 1,981 $ 2,016 $ 2,068 $ 2,102 Retail 474 490 498 512 Dealer 143 141 140 152 Total financing revenues 2,598 2,647 2,706 2,766 Depreciation on operating leases 1,681 1,719 1,778 1,863 Interest expense 448 452 428 523 Net financing revenues 469 476 500 380 Insurance earned premiums and contract revenues 216 221 220 225 Investment and other income, net 47 55 63 51 Realized gains (losses), net on investments in marketable securities 41 1 3 (4 ) Net financing revenues and other revenues 773 753 786 652 Expenses: Provision for credit losses 85 127 108 81 Operating and administrative 313 337 323 384 Insurance losses and loss adjustment expenses 114 102 100 109 Total expenses 512 566 531 574 Income before income taxes 261 187 255 78 Provision (benefit) for income taxes 96 70 (2,821 ) 26 Net income $ 165 $ 117 $ 3,076 $ 52 Note 17 – Selected Quarterly Financial Data (Continued) Unaudited First Second Third Fourth Quarter Quarter Quarter Quarter Year ended March 31, 2017: Financing revenues: Operating lease $ 1,891 $ 1,925 $ 1,946 $ 1,958 Retail 456 459 468 467 Dealer 111 112 123 130 Total financing revenues 2,458 2,496 2,537 2,555 Depreciation on operating leases 1,589 1,683 1,722 1,859 Interest expense 307 297 701 449 Net financing revenues 562 516 114 247 Insurance earned premiums and contract revenues 193 199 202 210 Investment and other income, net 39 42 52 37 Realized gains (losses), net on investments in marketable securities 13 70 157 (14 ) Net financing revenues and other revenues 807 827 525 480 Expenses: Provision for credit losses 52 161 183 186 Operating and administrative 279 317 325 356 Insurance losses and loss adjustment expenses 89 91 92 99 Total expenses 420 569 600 641 Income (loss) before income taxes 387 258 (75 ) (161 ) Provision (benefit) for income taxes 146 95 (29 ) (70 ) Net income (loss) $ 241 $ 163 $ (46 ) $ (91 ) |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Related party transactions presented in the Consolidated Financial Statements are disclosed in Note 15 – Related Party Transactions. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of TMCC, its wholly-owned subsidiaries and all variable interest entities (“VIE”) of which we are the primary beneficiary. All intercompany transactions and balances have been eliminated. Variable Interest Entities A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. The primary beneficiary of a VIE is the party with both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE. To assess whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider all the facts and circumstances including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes identifying the activities that most significantly impact the VIE’s economic performance and identifying which party, if any, has power over those activities. In general, the party that makes the most significant decisions affecting the VIE is determined to have the power to direct the activities of the VIE. To assess whether we have the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity interests, servicing rights and fee arrangements, and any other variable interests in the VIE. If we determine that we are the party with the power to make the most significant decisions affecting the VIE, and we have an obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE, then we consolidate the VIE. We perform ongoing reassessments, usually quarterly, of whether we are the primary beneficiary of a VIE. The reassessment process considers whether we have acquired or divested the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. We also reconsider whether entities previously determined not to be VIEs have become VIEs, based on new events, and therefore could be subject to the VIE consolidation framework. Refer to Note 10 – Variable Interest Entities for additional discussion and disclosure. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of inherent uncertainty involved in making estimates, actual results could differ from those estimates and assumptions. The accounting estimates that are most important to our business are the determination of residual value relating to our investments in operating leases and the allowance for credit losses as well as estimates related to the fair value of our derivative instruments, marketable securities and other financial instruments. |
Revenue Recognition | Revenue Recognition Operating Lease Revenues Operating lease revenues are recorded to income on a straight-line basis over the term of the lease. Incremental direct fees and costs received or paid in connection with the acquisition of operating leases, including incentive and rate participation payments made to dealers and acquisition fees collected from customers, are capitalized or deferred and amortized on a straight-line basis over the term of the related contracts. Payments received on affiliate sponsored special rate programs (“subvention”) and other consumer incentives are deferred and recognized on a straight-line basis over the term of the related contracts. Operating lease revenue is recorded net of sales taxes collected from customers. Included in operating lease revenues are other fees, including late fees and other service charges, the amounts of which are not significant to total operating lease revenue. Retail and Dealer Financing Revenues Revenues associated with retail and dealer financing are recognized so as to approximate a constant effective yield over the contract term. Incremental direct fees and costs incurred in connection with the acquisition of retail contracts and dealer financing receivables, including incentive and rate participation payments made to dealers, are capitalized and amortized so as to approximate a constant effective yield over the term of the related contracts. Payments received on subvention and other consumer incentives are deferred and recognized to approximate a constant effective yield over the term of the related contracts. Included in financing revenues are other fees, including late fees and other service charges, the amounts of which are not significant to total financing revenues. Note 1 – Summary of Significant Accounting Policies (Continued) Insurance Earned Premiums and Contract Revenues Revenues from providing coverage under various contractual agreements are recognized over the term of the coverage in relation to the timing and level of anticipated claims and administrative expenses. Revenues from insurance policies, net of premiums ceded to reinsurers, are earned over the terms of the respective policies in proportion to the estimated loss development. Management relies on historical loss experience as a basis for establishing earnings factors used to recognize revenue over the term of the contract or policy. The portion of premiums and contract revenues applicable to the unexpired terms of the agreements is recorded as unearned insurance premiums and contract revenues. Policies and contracts sold range in term from 3 to 120 months. Certain costs of acquiring new policies and contracts, consisting primarily of dealer commissions and premium taxes, are deferred and amortized over the term of the related policies on the same basis as the revenues are earned. The effect of subsequent cancellations is recorded as an offset to unearned insurance premiums and contract revenues. Service commissions and fees are recognized over the term of the coverage in relation to the timing of services performed. |
Depreciation on Operating Leases | Depreciation on Operating Leases Depreciation on operating leases is recognized using the straight-line method over the lease term, typically two to five years. The depreciable basis is the original acquisition cost of the vehicle less the estimated residual value of the vehicle at the end of the lease term. During the lease term, adjustments to depreciation expense reflecting revised estimates of expected residual values and return rates at the end of the lease terms are recorded prospectively on a straight-line basis over the remaining lease term. |
Allowance for Credit Losses | Allowance for Credit Losses We maintain an allowance for credit losses to cover probable and estimable losses incurred on our finance receivables and investments in operating leases resulting from the failure of customers or dealers to make contractual payments. Management evaluates the allowance at least quarterly, considering a variety of factors and assumptions to determine whether the allowance is considered adequate to cover probable and estimable losses incurred as of the balance sheet date. Management develops and documents the allowance for credit losses on finance receivables based on two portfolio segments. The determination of portfolio segments is based primarily on the qualitative consideration of the nature of our business operations and the characteristics of the underlying finance receivables, as follows: • Retail Loan Portfolio Segment – The retail loan portfolio segment consists of retail contracts acquired from dealers in the U.S. and Puerto Rico. Under a retail contract, we are granted a security interest in the underlying collateral which consists primarily of Toyota and Lexus vehicles. Based on the common risk characteristics associated with the finance receivables, the retail loan portfolio segment is considered a single class of finance receivable. • Dealer Products Portfolio Segment – The dealer products portfolio segment consists of wholesale financing, working capital loans, revolving lines of credit and real estate loans to dealers in the U.S. and Puerto Rico. Wholesale financing is primarily collateralized by new or used vehicle inventory with the outstanding balance fluctuating based on the level of inventory. Working capital loans and revolving lines of credit are granted for working capital purposes and are secured by dealership assets. Real estate loans are collateralized by the underlying real estate, are underwritten primarily on a loan-to-value basis and are typically for a fixed term. Based on the risk characteristics associated with the underlying finance receivables, the dealer products portfolio segment consists of three classes of finance receivables: wholesale, working capital (including revolving lines of credit), and real estate. We also separately develop and document the allowance for credit losses for investments in operating leases. Investments in operating leases are not within the scope of accounting guidance governing the disclosure of portfolio segments. Note 1 – Summary of Significant Accounting Policies (Continued) Methodology Used to Develop the Allowance for Credit Losses Retail Loan Portfolio Segment and Investments in Operating Leases The level of credit risk in our retail loan portfolio segment and our investments in operating leases is influenced primarily by two factors: default frequency and loss severity, which in turn are influenced by various factors such as economic conditions, the used vehicle market, purchase quality mix, contract term length, and collection strategies and practices. We evaluate the retail loan portfolio segment and investments in operating leases using methodologies that include roll rate, credit risk grade/tier, and vintage analysis. We review and analyze external factors, including changes in economic conditions, actual or perceived quality, safety and reliability of Toyota and Lexus vehicles, unemployment levels, the used vehicle market, and consumer behavior. In addition, internal factors, such as purchase quality mix and operational changes are also considered in the analyses. We utilize a loss emergence period assumption in developing our allowance for credit losses. This assumption represents the average length of time between when a loss event first occurs and when the account is charged off. We apply judgment in estimating the loss emergence period using available credit information and trends. Dealer Products Portfolio Segment The level of credit risk in our dealer products portfolio segment is influenced primarily by the financial strength of dealers within our portfolio, dealer concentration, collateral quality, and other economic factors. The financial strength of dealers within our portfolio is influenced by, among other factors, general economic conditions, the overall demand for new and used vehicles and the financial condition of automotive manufacturers. We evaluate the dealer portfolio by aggregating dealer financing receivables into loan-risk pools, which are determined based on the risk characteristics of the loan (e.g. secured by vehicles, real estate or dealership assets). We analyze the loan-risk pools using internally developed risk ratings for each dealer. We also utilize a loss emergence period assumption in developing our allowance for credit losses. The loss emergence period represents the time period between the date at which the loss event is estimated to have occurred and the ultimate realization of that loss through charge-off. In addition, field operations management and our special assets group are consulted each quarter to determine if any specific dealer loan is considered impaired. If impaired loans are identified, specific reserves are established, as appropriate, and the loan is removed from the loan-risk pool for separate monitoring. Note 1 – Summary of Significant Accounting Policies (Continued) Accounting for the Allowance for Credit Losses and Impaired Receivables The majority of the allowance for credit losses covers estimated losses on the retail loan portfolio segment which is collectively evaluated for impairment. The remainder of the allowance for credit losses covers the estimated losses on investments in operating leases and the dealer products portfolio segment. Within the dealer products portfolio segment, we establish specific reserves to cover the estimated losses on individual impaired loans (including loans modified in a troubled debt restructuring). The specific reserves are assessed based on discounted cash flows, the loan’s observable market price, or the fair value of the underlying collateral if the loan is collateral dependent. Troubled debt restructurings in the retail loan portfolio segment are aggregated when determining the allowance for credit losses. These loans are homogenous in nature and insignificant for individual evaluation and we have determined that the allowance for credit losses for the retail loan portfolio segment would not be materially different if the loans had been individually evaluated for impairment. Increases to the allowance for credit losses are accompanied by corresponding charges to the Provision for credit losses on our Consolidated Statements of Income. The uncollectible portion of finance receivables and investments in operating leases is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is greater than 120 days past due. In the event we repossess the collateral, the receivable is charged-off and we record the collateral at its estimated fair value less costs to sell and report it in Other assets in our Consolidated Balance Sheets. Recoveries of finance receivables and investments in operating leases previously charged off as uncollectible are credited to the allowance for credit losses. Refer to Note 6 – Allowance for Credit Losses for additional discussion and disclosure. |
Insurance Losses and Loss Adjustment Expenses | Insurance Losses and Loss Adjustment Expenses Insurance losses and loss adjustment expenses include amounts paid and accrued for loss events that are known and have been recorded as claims, estimates of losses incurred but not reported that are based on actuarial estimates and historical loss development patterns, and loss adjustment expenses that are expected to be incurred in connection with settling and paying these claims. Accruals for unpaid losses, losses incurred but not reported, and loss adjustment expenses are included in Other liabilities in our Consolidated Balance Sheets. These accruals arising from contractual agreements entered into by TMIS are not significant as of March 31, 2018 and 2017. Estimated liabilities are reviewed regularly, and we recognize any adjustments in the periods in which they are determined. If anticipated losses, loss adjustment expenses, and unamortized acquisition and maintenance costs exceed the recorded unearned premium, a premium deficiency is recognized by first charging any unamortized acquisition costs to expense and then by recording a liability for any excess deficiency. |
Cash Equivalents | Cash Equivalents Cash equivalents represent highly liquid investments with maturities of three months or less at purchase and may include money market instruments, commercial paper, certificates of deposit, U.S. government and agency obligations, or similar instruments. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents includes customer collections on securitized receivables to be distributed to investors as payments on the related secured debt, which are primarily related to securitization trusts. Restricted cash equivalents may also contain amounts unrelated to financing activities which are restricted as to use and proceeds from certain debt issuances for which the use of the cash is restricted. |
Investments in Marketable Securities | Investments in Marketable Securities Investments in marketable securities consist of debt and equity securities. Debt and equity securities designated as available-for-sale (“AFS”) are recorded at fair value using quoted market prices where available with unrealized gains or losses included in accumulated other comprehensive income (“AOCI”), net of applicable taxes. Realized gains and losses are determined using either the specific identification method or first in first out method, depending on the type of investment in our portfolio. Other-than-Temporary Impairment An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in AOCI. We conduct periodic reviews of securities in unrealized loss positions for the purpose of evaluating whether the impairment is other-than-temporary. As part of our ongoing assessment of other-than-temporary impairment (“OTTI”), we consider a variety of factors. Such factors include the length of time and extent to which the market value of a security has been less than amortized cost, adverse conditions specifically related to the industry, geographic area or financial condition of the issuer or underlying collateral of the security and the volatility of the fair value changes. An OTTI loss with respect to AFS debt securities must be recognized in earnings if we have the intent to sell the debt security or it is more likely than not that we will be required to sell the debt security before recovery of its amortized cost basis. If we have the intent to sell, the cost basis of the security is written down to fair value and the loss is reflected in Realized gains, net on investments in marketable securities in our Consolidated Statements of Income. If we have no intent to sell and we believe that it is more likely than not we will not be required to sell these securities prior to recovery, the credit loss component of the unrealized losses is recognized in Realized gains, net on investments in marketable securities in our Consolidated Statements of Income, while the remainder of the loss is recognized in AOCI. The credit loss component recognized in Realized gains, net on investments in marketable securities in our Consolidated Statements of Income is identified as the portion of the amortized cost of the security not expected to be collected over the remaining term as projected using a cash flow analysis for debt securities. We perform periodic reviews of our AFS equity securities to determine whether unrealized losses are temporary in nature. We consider our intent and ability to hold the security for a period of time sufficient for recovery of fair value. Where we lack that intent or ability, the equity security’s decline in fair value is deemed to be other-than-temporary. If losses are considered to be other-than-temporary, the cost basis of the security is written down to fair value and the loss is reflected in Realized gains, net on investments in marketable securities in our Consolidated Statements of Income. Refer to Note 3 – Investments in Marketable Securities for additional discussion and disclosure. |
Finance Receivables | Finance Receivables Our finance receivables consist of the retail loan and the dealer products portfolio segments. Finance receivables recorded on our balance sheet include accrued interest and deferred fees and costs, net of the allowance for credit losses, certain other dealer funds and deferred income. 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. Impaired Finance Receivables A finance receivable is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the terms of the contract. Factors such as payment history, compliance with terms and conditions of the underlying loan agreement and other subjective factors related to the financial stability of the borrower are considered when determining whether a finance receivable is impaired. Troubled Debt Restructurings A troubled debt restructuring occurs when a finance receivable is modified through a concession to a borrower experiencing financial difficulty. A finance receivable modified under a troubled debt restructuring is considered to be impaired. In addition, troubled debt restructurings include finance receivables for which the customer has filed for bankruptcy protection. For such finance receivables, we no longer have the ability to modify the terms of the agreement without the approval of the bankruptcy court and the court may impose term modifications that we are obligated to accept. Nonaccrual Policy Retail Loan Portfolio Segment The accrual of revenue is discontinued at the time a retail loan finance receivable is determined to be uncollectible. These finance receivables may be restored to accrual status when future payments are reasonably assured. For these finance receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are applied first to outstanding interest and then to the unpaid principal balance. Dealer Products Portfolio Segment Impaired receivables in the dealer products portfolio segment are placed on nonaccrual status if full payment of principal or interest is in doubt, or when principal or interest is 90 days or more past due. Interest accrued, but not collected at the date a receivable is placed on nonaccrual status, is reversed against interest income. In addition, the amortization of net deferred fees is suspended. Interest income on nonaccrual receivables is recognized only to the extent it is received in cash. Finance receivables are restored to accrual status only when interest and principal payments are brought current and future payments are reasonably assured. Finance receivables in the dealer products portfolio segment are charged off against the allowance for credit losses when the loss has been realized. Refer to Note 4 – Finance Receivables, Net for additional discussion and disclosure. |
Investments in Operating Leases | Investments in Operating Leases We record our investments in operating leases at acquisition cost, net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses. Nonaccrual Policy The accrual of revenue on investments in operating leases is discontinued at the time an account is determined to be uncollectible. Operating leases may be restored to accrual status when future payments are reasonably assured. For investments in operating leases in non-accrual status, subsequent operating lease revenue is recognized only to the extent a payment is received. Determination of Residual Value Residual values of lease contracts are estimated at lease inception by examining external industry data, the anticipated Toyota and Lexus product pipeline and our own experience. Factors considered in this evaluation include, but are not limited to, local, regional and national economic forecasts, new vehicle pricing, new vehicle incentive programs, new vehicle sales, competitor actions and behavior, product attributes of popular vehicles, the mix and level of used vehicle supply, the level of current used vehicle values, buying and leasing behavior trends, and fuel prices. We use various channels to sell vehicles returned at lease-end. On a quarterly basis, we review the estimated end-of-term market values and return rates of leased vehicles to assess the appropriateness of the carrying values at lease-end. To the extent the estimated end-of-term market value of a leased vehicle is lower than the residual value established at lease inception, the residual value of the leased vehicle is adjusted downward, thereby adjusting depreciation expense, so that the carrying value at lease end will approximate the estimated end-of-term market value. Factors affecting the estimated end-of-term market value are similar to those considered in the evaluation of residual values at lease inception discussed above. These factors are evaluated in the context of their historical trends to anticipate potential future changes in the relationship among these factors. For investments in operating leases, adjustments to depreciation expense are made prospectively on a straight-line basis over the remaining terms of the leases and are included in Depreciation on operating leases in our Consolidated Statements of Income. We evaluate our investment in operating leases portfolio for potential impairment when we determine a triggering event has occurred. When a triggering event has occurred, we perform a test of recoverability by comparing the expected undiscounted future cash flows (including expected residual values) over the remaining lease terms to the carrying value of the asset group. If the test of recoverability identifies a possible impairment, the asset group’s fair value is measured in accordance with the fair value measurement framework. An impairment charge would be recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value and would be recorded in our Consolidated Statements of Income. Refer to Note 5 – Investments in Operating Leases, Net for additional discussion and disclosure. |
Used Vehicles Held for Sale | Used Vehicles Held for Sale Used vehicles held for sale, reported in Other assets in our Consolidated Balance Sheets, consist of off-lease vehicles and repossessed vehicles. These vehicles are recorded at the lower of their carrying value or estimated fair value less costs to sell. These vehicles are sold promptly after grounding or repossession. |
Debt Issuance Costs | Debt Issuance Costs Costs that are direct and incremental to debt issuance are deferred and amortized to interest expense on an effective yield basis over the contractual term of the debt. These costs are presented as a direct deduction from the carrying value of the related debt liability and reported in Debt in our Consolidated Balance Sheets. All other costs related to debt issuance are expensed as incurred. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If quoted prices in an active market are available, fair value is determined by reference to these prices. If quoted prices are not available, fair value is determined by valuation models that primarily use, as inputs, market-based or independently sourced parameters, including but not limited to interest rates, volatilities, foreign exchange rates and credit curves. Additionally, we may reference prices for similar instruments, quoted prices or recent transactions in less active markets. We use prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the availability of prices and inputs may be reduced for certain financial instruments. This condition could result in a financial instrument being reclassified from Level 1 to Level 2 or from Level 2 to Level 3. Level 1: Quoted (unadjusted) prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in active markets for similar assets and liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Unobservable inputs that are supported by little or no market activity and may require significant judgment in order to determine the fair value of the assets and liabilities. The use of observable and unobservable inputs is reflected in the fair value hierarchy assessment disclosed in the tables within this document. The availability of observable inputs can vary based upon the financial instrument and other factors, such as instrument type, market liquidity and other specific characteristics particular to the financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires additional judgment by management. When the inputs are unobservable, financial instruments are classified as or transferred to the Level 3 category. Note 1 – Summary of Significant Accounting Policies (Continued) Valuation Methods We maintain policies and procedures to value financial instruments using the best and most relevant data available. Our Treasury Risk and Analytics Group (“TR&A”) is responsible for determining the fair value of our financial instruments. TR&A consists of quantitative analysts and risk and accounting professionals. Using benchmarking techniques, TR&A reviews our valuation pricing models at least annually to assess their ongoing propriety. As markets and products develop and the pricing for certain products becomes more or less transparent, TR&A refines its valuation methodologies. TR&A reviews the appropriateness of fair value measurements including validation processes, key model inputs, and the reconciliation of period-over-period fluctuations based on changes in key market inputs. Where possible, valuations, including both internally and externally obtained transaction prices, are validated against independent valuation sources. Our Fair Value Working Group (“FVWG”) reviews and approves the fair value measurement results and other relevant data quarterly. The FVWG consists of a cross-section of internal stakeholders who are knowledgeable in the area of financial valuations. All changes to our valuation methodologies are reviewed and approved by the FVWG. We conduct reviews of our primary pricing vendors to understand and assess the reasonableness of inputs used in their pricing process. While we do not have access to our vendors’ proprietary models, we perform detailed reviews of the pricing process, methodologies and control procedures for each asset class for which prices are provided. Our reviews include examination of the underlying inputs and assumptions for a sample of individual securities selected based on the nature and complexity of the securities. In addition, our pricing vendors have established processes in place for all valuations, which facilitates identification and resolution of potentially erroneous prices. The prices received from our pricing vendors, which represent fair value, are representative of prices that would be received to sell the assets or paid to transfer the liabilities at the measurement date and are classified appropriately in the hierarchy. Valuation Adjustments We may make valuation adjustments to ensure that financial instruments are recorded at fair value. These adjustments include amounts to reflect counterparty credit quality, our own creditworthiness, as well as constraints due to market illiquidity or unobservable parameters. Counterparty Credit Valuation Adjustments – Adjustments are required when the market price (or parameter) is not indicative of the credit quality of the counterparty. Non-Performance Credit Valuation Adjustments – Adjustments reflect our own non-performance risk when our liabilities are measured at fair value. Liquidity Valuation Adjustments – Adjustments are necessary when we are unable to observe prices for a financial instrument due to market illiquidity. Note 1 – Summary of Significant Accounting Policies (Continued) Recurring Fair Value Measurements Cash Equivalents and Restricted Cash Equivalents Cash equivalents and restricted cash equivalents include money market instruments, commercial paper, certificates of deposit, U.S. government and agency obligations or similar instruments, which represent highly liquid investments with maturities of three months or less at purchase. Where cash equivalent instruments produce a daily net asset value in an active market, we use this value to determine the fair value of the investment and classify the investment in Level 1 of the fair value hierarchy. All other types of cash equivalents are classified in Level 2 of the fair value hierarchy. Investments in Marketable Securities The marketable securities portfolio consists of debt and equity securities. We estimate the value of our debt securities using observed transaction prices, independent pricing vendors, and internal pricing models. Pricing methodologies and inputs to valuation models used by the pricing vendors depend on the security type. Where possible, quoted prices in active markets for identical securities are used to determine the fair value of the investment securities; these securities are classified in Level 1 of the fair value hierarchy. Where quoted prices in active markets are not available, the pricing vendor uses various pricing models for each asset class that are consistent with what market participants use. The inputs and assumptions to the models of the pricing vendors are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market-related data. Since many fixed income securities do not trade on a daily basis, the pricing vendors use applicable available information, such as benchmark curves, benchmarking of similar securities, sector groupings, and matrix pricing. These investments are classified in Level 2 of the fair value hierarchy. Our pricing vendors may provide us with valuations that are based on significant unobservable inputs; in such circumstances, we classify these investments in Level 3 of the fair value hierarchy. Valuations obtained from third party pricing vendors are validated to assess their reasonableness. We may hold investments in actively traded open-end and private placement fixed income mutual funds. Where the funds produce a daily net asset value that is quoted in an active market, we use this value to determine the fair value of the fund investment and classify the investment in Level 1 of the fair value hierarchy. The fair value of funds that produce a daily net asset value that is not quoted in an active market is estimated using the net asset value per share and have been excluded from the fair value hierarchy. Derivatives We estimate the fair value of our derivatives using industry standard valuation models that require observable market inputs, including market prices, yield curves, credit curves, interest rates, foreign exchange rates, volatilities and the contractual terms of the derivative instruments. For derivatives that trade in liquid markets, model inputs can generally be verified and do not require significant management judgment. These derivative instruments are classified in Level 2 of the fair value hierarchy. Certain other derivative transactions trade in less liquid markets with limited pricing information. For such derivatives, key inputs to the valuation process include quotes from counterparties and other market data used to corroborate and adjust values where appropriate. Other market data includes values obtained from a market participant that serves as a third party pricing vendor. Inputs obtained from counterparties and third party pricing vendors are internally validated using valuation models to assess the reasonableness of changes in factors such as market prices, yield curves, credit curves, interest rates, foreign exchange rates and volatilities. These derivative instruments are classified in Level 3 of the fair value hierarchy. Our derivative fair value measurements consider assumptions about counterparty credit risk and our own non-performance risk. We consider counterparty credit risk and our own non-performance risk through credit valuation adjustments. Note 1 – Summary of Significant Accounting Policies (Continued) Nonrecurring Fair Value Measurements Impaired Dealer Finance Receivables For finance receivables within the dealer products portfolio segment for which there is evidence of impairment, we may measure impairment based on discounted cash flows, the loan’s observable market price or the fair value of the underlying collateral if the loan is collateral-dependent. If the loan is collateral-dependent, the fair values of impaired finance receivables are reported at fair value on a nonrecurring basis. The methods used to estimate the fair value of the underlying collateral depends on the specific class of finance receivable. For finance receivables within the wholesale class of finance receivables, the collateral value is generally based on wholesale market value or liquidation value for new and used vehicles. For finance receivables within the real estate class of finance receivables, the collateral value is generally based on appraisals. For finance receivables within the working capital class of finance receivables, the collateral value is generally based on the expected liquidation value of the underlying dealership assets. Adjustments may be performed in circumstances where market comparables are not specific to the attributes of the specific collateral or appraisal information may not be reflective of current market conditions due to the passage of time and the occurrence of market events since receipt of the information. As these valuations utilize unobservable inputs, our impaired finance receivables are classified in Level 3 of the fair value hierarchy. Impaired Retail Receivables Retail finance receivables greater than 120 days past due are measured at fair value based on the fair value of the underlying collateral less costs to sell. The fair value of collateral is based on the current average selling prices for like vehicles at wholesale used vehicle auctions. Vehicles are sold promptly upon repossession. Financial Instruments Not Carried at Fair Value Finance Receivables Our finance receivables consist of retail loans and dealer financing, which is comprised of wholesale, real estate and working capital financing. Retail finance receivables are primarily valued using a securitization model that incorporates expected cash flows. Cash flows expected to be collected are estimated using contractual principal and interest payments adjusted for specific factors, such as prepayments, extensions, default rates, loss severity, credit scores, and collateral type. The securitization model utilizes quoted secondary market rates if available, or estimated market rates that incorporate management's best estimate of investor assumptions about the portfolio. The dealer financing portfolio is valued using a discounted cash flow model. Discount rates are derived based on market rates for equivalent portfolio bond ratings. As these valuations utilize unobservable inputs, our finance receivables are classified in Level 3 of the fair value hierarchy. Commercial Paper The carrying value of commercial paper issued is assumed to approximate fair value due to its short duration and generally negligible credit risk. We validate this assumption by recalculating the fair value of our commercial paper using quoted market rates. Commercial paper is classified in Level 2 of the fair value hierarchy. Note 1 – Summary of Significant Accounting Policies (Continued) Unsecured Notes and Loans Payable Unsecured notes and loans payable are primarily valued using current market rates and credit spreads for debt with similar maturities. Our valuation models utilize observable inputs such as standard industry curves; therefore, we classify these unsecured notes and loans payables in Level 2 of the fair value hierarchy. Where observable inputs are not available, we use quoted market prices to estimate the fair value of unsecured notes and loans payable. These unsecured notes and loans payable are classified in Level 3 of the fair value hierarchy since the market for these instruments is not active. In a limited number of instances, where neither observable inputs nor quoted market prices are available, we estimate the fair value of unsecured notes and loans payable using quotes from counterparties or a third party pricing vendor. We review the appropriateness of these fair value measurements by assessing the reasonableness of period over period fluctuations. Since the valuations utilize unobservable inputs, we classify these unsecured notes and loans payable in Level 3 of the fair value hierarchy. Secured Notes and Loans Payable Fair value is estimated based on current market rates and credit spreads for debt with similar maturities. We also use internal assumptions, including prepayment speeds and expected credit losses on the underlying securitized assets, to estimate the timing of cash flows to be paid on these instruments. As these valuations utilize unobservable inputs, our secured notes and loans payables are classified in Level 3 of the fair value hierarchy. Refer to Note 2 – Fair Value Measurements for additional discussion and disclosure. |
Derivative Instruments | Derivative Instruments All derivative instruments are recorded on the balance sheet at fair value, taking into consideration the effects of legally enforceable master netting agreements that allow us to net settle asset and liability positions and offset cash collateral held with the same counterparty on a net basis. Changes in the fair value of derivatives are recorded in Interest expense in our Consolidated Statements of Income. We categorize derivatives as those designated for hedge accounting (“hedge accounting derivatives”) and those that are not designated for hedge accounting (“non-hedge accounting derivatives”). At the inception of a derivative contract, we may elect to designate a derivative as a hedge accounting derivative if certain criteria are met. Hedge accounting derivatives are not widely used as a part of our risk management strategy. Hedge Accounting Derivatives We use derivatives to reduce the risk of changes in the fair value of debt. We occasionally designate certain derivatives as hedge accounting derivatives. In these instances, the risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged. When we designate a derivative in a hedging relationship, we contemporaneously document the risk management objective and strategy. This documentation includes the identification of the hedging instrument, the hedged item and the risk exposure, how we will assess effectiveness prospectively and retrospectively, and how often we will carry out this assessment. We use the “long-haul” method of assessing effectiveness for our fair value hedges. Any ineffective portion of the derivative that is designated as a fair value hedge is recognized as a component of Interest expense in our Consolidated Statements of Income. We recognize changes in the fair value of derivatives designated in fair value hedging relationships (including foreign currency fair value hedging relationships) in Interest expense in our Consolidated Statements of Income along with the fair value changes of the related hedged item. Note 1 – Summary of Significant Accounting Policies (Continued) We review the effectiveness of our hedging relationships at least quarterly to determine whether the relationships have been and continue to be effective. We use regression analysis to assess the effectiveness of our hedges. When we determine that a hedging relationship is not or has not been effective, hedge accounting is no longer applied. If hedge accounting is discontinued, we continue to carry the derivative instrument as a component of Other assets or Other liabilities in our Consolidated Balance Sheets at fair value, with changes in fair value reported in Interest expense in our Consolidated Statements of Income. Additionally, for discontinued fair value hedges, we cease to adjust the hedged item for changes in fair value and amortize the cumulative fair value adjustments recognized in prior periods over the remaining term of the hedged item. We will also discontinue the use of hedge accounting if a derivative is sold, terminated, or if management determines that designating a derivative under hedge accounting is no longer deemed appropriate based on current investment strategy (“de-designated derivatives”). De-designated derivatives are included within the category of non-hedge accounting derivatives. Non-hedge accounting derivatives Our non-hedge accounting derivatives are carried at fair value. The full change in the fair value of the derivative instrument is recognized as a component of Interest expense in our Consolidated Statements of Income with no offsetting adjustment for the economically hedged item. The derivative instrument is included as a component of Other assets or Other liabilities in our Consolidated Balance Sheets. Embedded Derivatives Periodically, we issue debt instruments which are considered “hybrid financial instruments”. These debt instruments are assessed to determine whether they contain embedded derivatives requiring separate accounting and reporting. The embedded derivative may be bifurcated and recorded on the balance sheet at fair value or the entire financial instrument may be recorded at fair value. As applicable, changes in the fair value of the bifurcated embedded derivative or the entire hybrid financial instrument are reported in Interest expense in our Consolidated Statements of Income. We had no embedded derivatives that required bifurcation as of March 31, 2018 and 2017. Offsetting of Derivatives The accounting guidance permits the net presentation on our Consolidated Balance Sheets of derivative receivables and derivative payables with the same counterparty and the related cash collateral when a legally enforceable master netting agreement exists. When we meet this condition, we elect to present such balances on a net basis. We use master netting agreements to mitigate counterparty credit risk in derivative transactions. A master netting agreement is a contract with a counterparty that permits multiple transactions governed by that contract to be cancelled and settled with a single net balance paid to either party in the event of default or other termination event outside the normal course of business, such as a ratings downgrade of either party to the contract. Our reciprocal collateral agreements require the transfer of cash collateral to the party in a net asset position across all transactions governed by the master netting agreement. Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization arrangement. Upon default, the collateral agreement grants the party in a net asset position the right to set-off amounts receivable against any posted collateral. Refer to Note 7 – Derivatives, Hedging Activities and Interest Expense for additional discussion and disclosure. |
Foreign Currency Transactions | Foreign Currency Transactions Certain of our debt transactions are denominated in foreign currencies. If the debt is not in a designated hedge accounting relationship, the debt is translated into U.S. dollars using the applicable exchange rate at the transaction date and retranslated at each balance sheet date using the exchange rate in effect at that date. Gains and losses related to foreign currency transactions are included in Interest expense in our Consolidated Statements of Income. Payments on debt in our Consolidated Statements of Cash Flows include repayment of principal and the net amount of exchange of notional on currency swaps that economically hedge these transactions. Proceeds from issuance of debt in our Consolidated Statements of Cash Flows include both the proceeds from the initial issuance of debt and the net amount of exchange of notional on currency swaps that economically hedge these transactions. |
Risk Transfer | Risk Transfer Our insurance operations transfer certain risks to protect us against the impact of unpredictable high severity losses. The amounts recoverable from reinsurers and other companies that assume liabilities relating to our insurance operations are determined in a manner consistent with the related reinsurance or risk transfer agreement. Amounts recoverable from reinsurers and other companies on unpaid losses are recorded as a receivable but are not collectible until the losses are paid. Revenues related to risks transferred are recognized on the same basis as the related revenues from the underlying agreements. Covered losses are recorded as a reduction to insurance losses and loss adjustment expenses. |
Income Taxes | Income Taxes We use the liability method of accounting for income taxes under which deferred tax assets and liabilities are adjusted to reflect changes in tax rates and laws in the period such changes are enacted resulting in adjustments to the current fiscal year’s provision for income taxes. TMCC files a consolidated federal income tax return with its subsidiaries and TFSIC. TMCC files either separate or consolidated/combined state income tax returns with Toyota Motor North America, Inc. (“TMNA”), TFSIC, or subsidiaries of TMCC. State income tax expense is generally recognized as if TMCC and its subsidiaries filed their tax returns on a stand-alone basis. In those states where TMCC and its subsidiaries join in the filing of consolidated or combined income tax returns, TMCC and its subsidiaries are allocated their share of the total income tax expense based on combined allocation/apportionment factors and separate company income or loss. Based on the federal and state tax sharing agreements, TFSIC and TMCC and its subsidiaries pay for their share of the income tax expense and are reimbursed for the benefit of any of their tax losses utilized in the federal and state income tax returns. Refer to Note 13 – Income Taxes for additional discussion and disclosure. |
New Accounting Guidance | New Accounting Guidance In May 2014, the Financial Accounting Standards Board ("FASB") issued new guidance on the recognition of revenue from contracts with customers. This comprehensive standard will supersede virtually all existing revenue recognition guidance. In August 2015, the FASB issued a one-year deferral of the effective date, with early adoption as of the original effective date permitted. The FASB also subsequently issued guidance amending and clarifying various aspects of the new revenue recognition standard. The majority of our revenues are outside the scope of the standard; however, certain insurance products fall within the scope of this guidance. Upon adoption of the guidance on April 1, 2018, we expect to recognize the cumulative effect of adoption by recording a reduction to our opening retained earnings of approximately $110 million, net of income taxes, resulting from an increase to unearned revenues (included in Other liabilities) of approximately $219 million, and deferred expenses (included in Other assets) of approximately $73 million, and an increase to deferred tax assets of approximately $36 million. While the adoption of the standard will change the timing of recognition of certain revenues and costs, the total revenue and expense recognized will not change as a result of the adoption of the standard. In January 2016, the FASB issued new guidance that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments and will require entities to measure equity investments at fair value and recognize any changes in fair value in earnings. This guidance also requires an entity to present, separately in other comprehensive income, the portion of the total change in the fair value of a liability resulting from changes in instrument-specific credit risk for instruments where the entity has elected the fair value option. Upon adoption of the guidance on April 1, 2018, we expect to recognize the cumulative effect of adoption by recording a reduction to our opening retained earnings that is not significant to our consolidated financial statements. In February 2016, the FASB issued new guidance that introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard. The new leasing standard represents a wholesale change to lease accounting for lessees and requires additional disclosures regarding leasing arrangements. This accounting guidance is effective for us on April 1, 2019. Upon adoption, we expect to recognize lease liabilities and right-of-use assets (at their present value) in our Consolidated Balance Sheets related to predominantly all of the future minimum lease payments disclosed in Note 14 – Commitments and Contingencies. We are continuing to evaluate the other potential impacts of this guidance from both a lessee and lessor perspective on our consolidated financial statements and related disclosures. In June 2016, the FASB issued new guidance that introduces a new impairment model based on expected losses rather than incurred losses for certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. This accounting guidance is effective for us on April 1, 2020. We expect this new guidance will result in an increase in our allowance for credit losses with a cumulative-effect adjustment to our opening retained earnings. The magnitude of the increase in our allowance for credit losses is under evaluation. We are currently evaluating the other potential impacts of this guidance on our consolidated financial statements and related disclosures. In August 2016, the FASB issued new guidance that is intended to reduce diversity in practice in the classification of certain items in the statement of cash flows. This accounting guidance is effective for us on April 1, 2018. The adoption of this guidance will not have a material impact on our consolidated financial statements and related disclosures. In November 2016, the FASB issued new guidance that clarifies how restricted cash and cash equivalents should be classified and presented on the statement of cash flows and requires new disclosures related to restricted cash and cash equivalents. This guidance was intended to reduce diversity in practice in the classification of restricted cash and cash equivalents on the statement of cash flows. This accounting guidance is effective for us on April 1, 2018 at which time we will no longer report the change in restricted cash and cash equivalents in the operating section in our Consolidated Statements of Cash Flows, and cash and cash equivalents at the beginning and end of the period will include restricted cash and cash equivalents. These changes will be applied using a retrospective transition method to each period presented and will not have a material impact on our consolidated statements of cash flows and related disclosures. Note 1 – Summary of Significant Accounting Policies (Continued) In March 2017, the FASB issued new guidance that requires certain premiums on callable debt securities to be amortized to the earliest call date. This accounting guidance is effective for us on April 1, 2019. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In August 2017, the FASB issued new guidance that makes targeted improvements to accounting for hedging activities. This guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance provides new alternatives for applying hedge accounting and measuring the hedged item in fair value hedges of interest rate risk. The guidance also modifies certain disclosure requirements. This accounting guidance is effective for us on April 1, 2019. We are currently evaluating the potential impact of this guidance on our consolidated financial statements and disclosures. In February 2018, the FASB issued new guidance that would allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cut and Jobs Act of 2017 (“TCJA”). The amount of the reclassification would be the difference between the historical 35% corporate income tax rate and the newly enacted 21% corporate income tax rate. The accounting guidance is effective for us on April 1, 2019, with early adoption permitted. The adoption of this guidance will not have a material impact on our consolidated financial statements and disclosures. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In April 2017, we adopted new FASB accounting guidance which clarifies that a change in the counterparty to a designated derivative hedging instrument does not, in and of itself, require de-designation of that hedging relationship; provided that all other hedge accounting criteria continue to be met. The adoption of this guidance did not have an impact on our consolidated financial statements. In April 2017, we adopted new FASB accounting guidance which clarifies whether an embedded contingent put or call option is clearly and closely related to the debt host when bifurcating an embedded derivative. The adoption of this guidance did not have an impact on our consolidated financial statements. In April 2017, we adopted new FASB accounting guidance that further amends the analysis a reporting entity must perform to determine whether it should consolidate certain legal entities. This guidance specifically addresses interests held through related parties that are under common control. The adoption of this guidance did not change our consolidation conclusions, and therefore, did not have an impact on our consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables summarize our financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy except for certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and are excluded from the leveling information provided in the tables below. Fair value amounts presented below are intended to permit reconciliation of the fair value hierarchy to the amounts presented in our Consolidated Balance Sheets. March 31, 2018 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Cash equivalents: Money market instruments $ 347 $ 550 $ - $ - $ 897 Certificates of deposit - 2,240 - - 2,240 Commercial paper - 255 - - 255 Cash equivalents total 347 3,045 - - 3,392 Restricted cash equivalents - money market instruments 173 709 - - 882 Available-for-sale securities: Debt instruments: U.S. government and agency obligations 2,774 24 - - 2,798 Municipal debt securities - 11 - - 11 Certificates of deposit - 474 - - 474 Commercial paper - 52 - - 52 Corporate debt securities 15 186 - - 201 Mortgage-backed securities: U.S. government agency - 39 - - 39 Non-agency residential - - 2 - 2 Non-agency commercial - - 29 - 29 Asset-backed securities - - 39 - 39 Equity instruments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 660 Total return bond funds 1,524 - - - 1,524 Available-for-sale securities total 4,313 786 70 - 5,829 Derivative assets: Interest rate swaps - 872 - - 872 Interest rate floors - 1 - - 1 Foreign currency swaps - 485 - - 485 Counterparty netting and collateral - - - (1,297 ) (1,297 ) Derivative assets total - 1,358 - (1,297 ) 61 Assets at fair value 4,833 5,898 70 (1,297 ) 10,164 Derivative liabilities: Interest rate swaps - (607 ) (21 ) - (628 ) Foreign currency swaps - (200 ) - - (200 ) Counterparty netting and collateral - - - 822 822 Liabilities at fair value - (807 ) (21 ) 822 (6 ) Net assets at fair value $ 4,833 $ 5,091 $ 49 $ (475 ) $ 10,158 March 31, 2017 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Cash equivalents: Money market instruments $ 287 $ 1,045 $ - $ - $ 1,332 Certificates of deposit - 2,630 - - 2,630 Cash equivalents total 287 3,675 - - 3,962 Available-for-sale securities: Debt instruments: U.S. government and agency obligations 2,273 33 2 - 2,308 Municipal debt securities - 11 - - 11 Certificates of deposit 105 650 - - 755 Corporate debt securities 211 150 8 - 369 Mortgage-backed securities: U.S. government agency - 45 - - 45 Non-agency residential - - 2 - 2 Non-agency commercial - - 37 - 37 Asset-backed securities - - 31 - 31 Equity instruments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 1,740 Total return bond funds 394 - - - 394 Available-for-sale securities total 2,983 889 80 - 5,692 Derivative assets: Interest rate swaps - 474 1 - 475 Interest rate floors - 2 - - 2 Foreign currency swaps - 122 - - 122 Counterparty netting and collateral - - - (548 ) (548 ) Derivative assets total - 598 1 (548 ) 51 Assets at fair value 3,270 5,162 81 (548 ) 9,705 Derivative liabilities: Interest rate swaps - (271 ) (6 ) - (277 ) Foreign currency swaps - (1,114 ) (62 ) - (1,176 ) Counterparty netting and collateral - - - 1,407 1,407 Liabilities at fair value - (1,385 ) (68 ) 1,407 (46 ) Net assets at fair value $ 3,270 $ 3,777 $ 13 $ 859 $ 9,659 |
Assets and Liabilities Measured on Recurring Basis Using Significant Unobservable Inputs | The following tables summarize the rollforward of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs: Year Ended March 31, 2018 Total net assets Available-for-sale securities Derivative instruments, net (liabilities) U.S. Total Total government Corporate Mortgage- Asset- available- Interest Foreign derivative and agency debt backed backed for-sale rate currency assets obligations securities securities securities securities swaps swaps (liabilities) Fair value, April 1, 2017 $ 2 $ 8 $ 39 $ 31 $ 80 $ (5 ) $ (62 ) $ (67 ) $ 13 Total gains (losses) Included in earnings - - - - - - 7 7 7 Included in other comprehensive income - - - - - - - - - Purchases, issuances, sales, and settlements Purchases - - 5 30 35 - - - 35 Issuances - - - - - - - - - Sales - - - - - - - - - Settlements - (9 ) (13 ) (22 ) (44 ) (16 ) 55 39 (5 ) Transfers in to Level 3 - 1 - - 1 - - - 1 Transfers out of Level 3 (2 ) - - - (2 ) - - - (2 ) Fair value, March 31, 2018 $ - $ - $ 31 $ 39 $ 70 $ (21 ) $ - $ (21 ) $ 49 The amount of total gains (losses) included in earnings attributable to assets held at the reporting date $ - $ - $ - $ - Year Ended March 31, 2017 Total net assets Available-for-sale securities Derivative instruments, net (liabilities) U.S. Total Total government Corporate Mortgage- Asset- available- Interest Foreign derivative and agency debt backed backed for-sale rate currency assets obligations securities securities securities securities swaps swaps (liabilities) Fair value, April 1, 2016 $ 2 $ 7 $ 45 $ 37 $ 91 $ 39 $ (14 ) $ 25 $ 116 Total gains (losses) Included in earnings - - - - - (24 ) (43 ) (67 ) (67 ) Included in other comprehensive income - 1 - 1 2 - - - 2 Purchases, issuances, sales, and settlements Purchases - - 4 6 10 - - - 10 Issuances - - - - - - - - - Sales - - - - - - - - - Settlements - - (10 ) (13 ) (23 ) (20 ) (5 ) (25 ) (48 ) Transfers in to Level 3 - - - - - - - - - Transfers out of Level 3 - - - - - - - - - Fair value, March 31, 2017 $ 2 $ 8 $ 39 $ 31 $ 80 $ (5 ) $ (62 ) $ (67 ) $ 13 The amount of total gains (losses) included in earnings attributable to assets held at the reporting date $ (24 ) $ (43 ) $ (67 ) $ (67 ) |
Financial Assets and Liabilities Not Carried at Fair Value on Recurring Basis on Consolidated Balance Sheets | The following tables provide information about assets and liabilities not carried at fair value on a recurring basis on our Consolidated Balance Sheets: March 31, 2018 Carrying Total Fair value Level 1 Level 2 Level 3 Value Financial assets Finance receivables, net Retail loan $ 52,374 $ - $ - $ 52,081 $ 52,081 Wholesale 10,365 - - 10,413 10,413 Real estate 4,492 - - 4,409 4,409 Working capital 2,222 - - 2,197 2,197 Financial liabilities Commercial paper $ 27,313 $ - $ 27,313 $ - $ 27,313 Unsecured notes and loans payable 57,402 - 55,441 2,341 57,782 Secured notes and loans payable 13,638 - - 13,588 13,588 March 31, 2017 Carrying Total Fair value Level 1 Level 2 Level 3 Value Financial assets Finance receivables, net Retail loan $ 50,682 $ - $ - $ 50,733 $ 50,733 Wholesale 10,819 - - 10,881 10,881 Real estate 4,602 - - 4,459 4,459 Working capital 2,218 - - 2,222 2,222 Financial liabilities Commercial paper $ 26,632 $ - $ 26,632 $ - $ 26,632 Unsecured notes and loans payable 57,282 - 55,838 2,385 58,223 Secured notes and loans payable 14,319 - - 14,322 14,322 |
Investments in Marketable Sec29
Investments in Marketable Securities (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Marketable Securities [Abstract] | |
Summary of Investments in Marketable Securities | The amortized cost and estimated fair value of investments in marketable securities and related unrealized gains and losses were as follows: March 31, 2018 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale securities: Debt instruments: U.S. government and agency obligations $ 2,821 - $ (23 ) $ 2,798 Municipal debt securities 10 1 - 11 Certificates of deposit 475 - (1 ) 474 Commercial paper 52 - - 52 Corporate debt securities 203 1 (3 ) 201 Mortgage-backed securities: U.S. government agency 38 1 - 39 Non-agency residential 1 1 - 2 Non-agency commercial 30 - (1 ) 29 Asset-backed securities 39 - - 39 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II 2 - - 2 U.S. government sector fund 202 - - 202 Municipal sector fund 8 - - 8 Investment grade corporate sector fund 122 - (3 ) 119 High-yield sector fund 22 1 - 23 Mortgage sector fund 154 - (3 ) 151 Asset-backed securities sector fund 58 1 - 59 Emerging market sector fund 39 4 - 43 International sector fund 54 - (1 ) 53 Total return bond funds 1,535 5 (16 ) 1,524 Total investments in marketable securities $ 5,865 $ 15 $ (51 ) $ 5,829 March 31, 2017 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale securities: Debt instruments: U.S. government and agency obligations $ 2,314 $ 1 $ (7 ) $ 2,308 Municipal debt securities 10 1 - 11 Certificates of deposit 755 - - 755 Corporate debt securities 368 2 (1 ) 369 Mortgage-backed securities: U.S. government agency 45 1 (1 ) 45 Non-agency residential 2 - - 2 Non-agency commercial 37 1 (1 ) 37 Asset-backed securities 31 - - 31 Equity instruments: Fixed income mutual funds: Short-term floating NAV fund II 39 - - 39 U.S. government sector fund 389 - - 389 Municipal sector fund 20 - - 20 Investment grade corporate sector fund 252 9 - 261 High-yield sector fund 83 6 - 89 Real return sector fund 147 5 - 152 Mortgage sector fund 390 2 - 392 Asset-backed securities sector fund 140 10 - 150 Emerging market sector fund 105 7 - 112 International sector fund 136 - - 136 Total return bond funds 389 5 - 394 Total investments in marketable securities $ 5,652 $ 50 $ (10 ) $ 5,692 |
Schedule of Realized Gains and Losses on Sales from AFS Presented in Our Consolidated Statement of Income | The following table represents realized gains and losses on our available-for-sale securities presented in our Consolidated Statements of Income: Years Ended March 31, 2018 2017 2016 Available-for-sale securities: Realized gains on sales $ 46 $ 251 $ 59 Realized losses on sales $ (2 ) $ (1 ) $ (3 ) Other-than-temporary impairment $ (3 ) $ (24 ) $ (50 ) |
Summary of Contractual Maturities of Available-for-Sale Securities | The amortized cost, fair value and contractual maturities of available-for-sale debt instruments are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations. March 31, 2018 Amortized Fair Value Available-for-sale debt instruments: Due within 1 year $ 2,089 $ 2,082 Due after 1 year through 5 years 1,247 1,235 Due after 5 years through 10 years 151 146 Due after 10 years 74 73 Mortgage-backed and asset-backed securities 1 108 109 Total $ 3,669 $ 3,645 1 |
Finance Receivables, Net (Table
Finance Receivables, Net (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Net Financing Receivables | Finance receivables, net consisted of the following: March 31, March 31, 2018 2017 Retail receivables $ 41,265 $ 38,338 Securitized retail receivables 12,130 13,071 Dealer financing 17,420 17,899 70,815 69,308 Deferred origination (fees) and costs, net 630 644 Deferred income (1,335 ) (1,023 ) Allowance for credit losses Retail and securitized retail receivables (312 ) (344 ) Dealer financing (151 ) (123 ) Total allowance for credit losses (463 ) (467 ) Finance receivables, net $ 69,647 $ 68,462 |
Contractual Maturities on Retail Receivables and Dealer Financing | Contractual maturities on retail receivables and dealer financing are as follows: Contractual maturities Years ending March 31, Retail Dealer financing 2019 $ 14,348 $ 13,220 2020 12,838 1,527 2021 10,702 772 2022 8,051 667 2023 5,232 515 Thereafter 2,224 719 Total $ 53,395 $ 17,420 |
Finance Receivable Credit Quality Indicators | The tables below present each credit quality indicator by class of finance receivables: Retail Loan March 31, March 31, 2018 2017 Aging of finance receivables: Current $ 52,559 $ 50,631 30-59 days past due 613 586 60-89 days past due 158 129 90 days or greater past due 65 63 Total $ 53,395 $ 51,409 Wholesale Real Estate Working Capital March 31, March 31, March 31, March 31, March 31, March 31, 2018 2017 2018 2017 2018 2017 Credit quality indicators: Performing $ 9,451 $ 9,592 $ 4,070 $ 4,010 $ 2,118 $ 2,082 Credit Watch 946 1,269 484 613 105 143 At Risk 75 12 29 45 33 5 Default 41 78 47 45 21 5 Total $ 10,513 $ 10,951 $ 4,630 $ 4,713 $ 2,277 $ 2,235 |
Summary of Impaired Loans by Class of Finance Receivable | The following table summarizes the information related to our impaired loans by class of finance receivables: Impaired Individually Evaluated Finance Receivables Unpaid Principal Balance Allowance March 31, March 31, March 31, March 31, March 31, March 31, 2018 2017 2018 2017 2018 2017 Impaired account balances individually evaluated for impairment with an allowance: Wholesale $ 107 $ 93 $ 107 $ 93 $ 14 $ 12 Real estate 86 94 86 94 5 12 Working capital 55 31 55 31 51 9 Total $ 248 $ 218 $ 248 $ 218 $ 70 $ 33 Impaired account balances individually evaluated for impairment without an allowance: Wholesale $ 83 $ 134 $ 83 $ 134 Real estate 142 105 142 105 Working capital 22 - 22 - Total $ 247 $ 239 $ 247 $ 239 Impaired account balances aggregated and evaluated for impairment: Retail loan $ 222 $ 220 $ 220 $ 217 Total impaired account balances: Retail loan $ 222 $ 220 $ 220 $ 217 Wholesale 190 227 190 227 Real estate 228 199 228 199 Working capital 77 31 77 31 Total $ 717 $ 677 $ 715 $ 674 The following table summarizes the average impaired loans by class of finance receivables as of the balance sheet date: Average Impaired Finance Years Ended March 31, 2018 2017 Impaired account balances individually evaluated for impairment with an allowance: Wholesale $ 103 $ 77 Real estate 88 96 Working capital 42 33 Total $ 233 $ 206 Impaired account balances individually evaluated for impairment without an allowance: Wholesale $ 104 $ 153 Real estate 115 107 Working capital 9 1 Total $ 228 $ 261 Impaired account balances aggregated and evaluated for impairment: Retail loan $ 222 $ 223 Total impaired account balances: Retail loan $ 222 $ 223 Wholesale 207 230 Real estate 203 203 Working capital 51 34 Total $ 683 $ 690 |
Investments in Operating Leas31
Investments in Operating Leases, Net (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Leases Operating [Abstract] | |
Investments in Operating Leases, Net | Investments in operating leases, net consisted of the following: March 31, March 31, 2018 2017 Investments in operating leases $ 42,863 $ 41,874 Securitized investments in operating leases 7,869 6,502 50,732 48,376 Deferred origination (fees) and costs, net (224 ) (201 ) Deferred income (1,700 ) (1,196 ) Accumulated depreciation (9,977 ) (8,672 ) Allowance for credit losses (134 ) (155 ) Investments in operating leases, net $ 38,697 $ 38,152 |
Future Minimum Rentals on Investments in Operating Leases | Future minimum rentals on investments in operating leases are as follows: Years ending March 31, Future minimum rentals on operating leases 2019 $ 6,067 2020 3,769 2021 1,438 2022 157 2023 6 Total $ 11,437 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses on Finance Receivables and Investments in Operating Leases | The following table provides information related to our allowance for credit losses on finance receivables and investments in operating leases: Years Ended March 31, 2018 2017 2016 Allowance for credit losses at beginning of period $ 622 $ 535 $ 485 Provision for credit losses 401 582 441 Transferred to held-for-sale 1 - - (7 ) Charge-offs, net of recoveries (426 ) (495 ) (384 ) Allowance for credit losses at end of period $ 597 $ 622 $ 535 1 |
Allowance for Credit Losses and Finance Receivables by Portfolio Segment | The following tables provide information related to our allowance for credit losses and finance receivables by portfolio segment: Year Ended March 31, 2018 Retail Loan Dealer Total Beginning balance, April 1, 2017 $ 344 $ 123 $ 467 Charge-offs (355 ) - (355 ) Recoveries 50 - 50 Provision for credit losses 273 28 301 Ending balance, March 31, 2018 $ 312 $ 151 $ 463 Allowance for Credit Losses for Finance Receivables: Ending balance: Individually evaluated for impairment $ - $ 70 $ 70 Ending balance: Collectively evaluated for impairment $ 312 $ 81 $ 393 Finance Receivables: Ending balance, March 31, 2018 $ 53,395 $ 17,420 $ 70,815 Ending balance: Individually evaluated for impairment $ - $ 495 $ 495 Ending balance: Collectively evaluated for impairment $ 53,395 $ 16,925 $ 70,320 Year Ended March 31, 2017 Retail Loan Dealer Total Beginning balance, April 1, 2016 $ 289 $ 132 $ 421 Charge-offs (399 ) - (399 ) Recoveries 50 - 50 Provision for credit losses 404 (9 ) 395 Ending balance, March 31, 2017 $ 344 $ 123 $ 467 Allowance for Credit Losses for Finance Receivables: Ending balance: Individually evaluated for impairment $ - $ 33 $ 33 Ending balance: Collectively evaluated for impairment $ 344 $ 90 $ 434 Finance Receivables: Ending balance, March 31, 2017 $ 51,409 $ 17,899 $ 69,308 Ending balance: Individually evaluated for impairment $ - $ 457 $ 457 Ending balance: Collectively evaluated for impairment $ 51,409 $ 17,442 $ 68,851 |
Past Due Finance Receivables and Investments in Operating Leases | The following table shows aggregate balances of finance receivables and investments in operating leases 60 or more days past due: March 31, March 31, 2018 2017 Aggregate balances 60 or more days past due Finance receivables $ 223 $ 192 Investments in operating leases 106 95 Total $ 329 $ 287 |
Past Due Finance Receivables by Class | The following tables summarize the aging of finance receivables by class: March 31, 2018 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Greater Past Due Total Due Current Total Receivables 90 Days or Greater Due and Accruing Retail loan $ 613 $ 158 $ 65 $ 836 $ 52,559 $ 53,395 $ 46 Wholesale - - - - 10,513 10,513 - Real estate - - - - 4,630 4,630 - Working capital - - - - 2,277 2,277 - Total $ 613 $ 158 $ 65 $ 836 $ 69,979 $ 70,815 $ 46 March 31, 2017 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Greater Past Due Total Due Current Total Receivables 90 Greater Due and Accruing Retail loan $ 586 $ 129 $ 63 $ 778 $ 50,631 $ 51,409 $ 41 Wholesale - - - - 10,951 10,951 - Real estate - - - - 4,713 4,713 - Working capital 3 - - 3 2,232 2,235 - Total $ 589 $ 129 $ 63 $ 781 $ 68,527 $ 69,308 $ 41 |
Derivatives, Hedging Activiti33
Derivatives, Hedging Activities and Interest Expense (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Activity Impact on Consolidated Balance Sheet | The following tables show the financial statement line item and amount of our derivative assets and liabilities that are reported in our Consolidated Balance Sheets: March 31, 2018 Hedge accounting Non-hedge derivatives accounting Total Fair Fair Fair Notional value Notional value Notional value Other assets: Interest rate swaps $ - $ - $ 71,464 $ 872 $ 71,464 $ 872 Interest rate floors - - 847 1 847 1 Foreign currency swaps 119 8 7,248 477 7,367 485 Total $ 119 $ 8 $ 79,559 $ 1,350 $ 79,678 $ 1,358 Counterparty netting and collateral held (1,297 ) Carrying value of derivative contracts – Other assets $ 61 Other liabilities: Interest rate swaps $ - $ - $ 41,513 $ 628 $ 41,513 $ 628 Foreign currency swaps - - 5,863 200 5,863 200 Total $ - $ - $ 47,376 $ 828 $ 47,376 $ 828 Counterparty netting and collateral posted (822 ) Carrying value of derivative contracts – Other liabilities $ 6 Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued) March 31, 2017 Hedge accounting Non-hedge derivatives accounting Total Fair Fair Fair Notional value Notional value Notional value Other assets: Interest rate swaps $ - $ - $ 62,525 $ 475 $ 62,525 $ 475 Interest rate floors - - 1,673 2 1,673 2 Foreign currency swaps 271 28 1,648 94 1,919 122 Total $ 271 $ 28 $ 65,846 $ 571 $ 66,117 $ 599 Counterparty netting and collateral held (548 ) Carrying value of derivative contracts – Other assets $ 51 Other liabilities: Interest rate swaps $ - $ - $ 45,297 $ 277 $ 45,297 $ 277 Interest rate caps - - 30 - 30 - Foreign currency swaps 93 1 12,570 1,175 12,663 1,176 Total $ 93 $ 1 $ 57,897 $ 1,452 $ 57,990 $ 1,453 Counterparty netting and collateral posted (1,407 ) Carrying value of derivative contracts – Other liabilities $ 46 |
Components of Interest Expense | The following table summarizes the components of interest expense, including the location and amount of gains and losses on derivative instruments and related hedged items, as reported in our Consolidated Statements of Income: Years Ended March 31, 2018 2017 2016 Interest expense on debt $ 1,970 $ 1,570 $ 1,308 Interest income on derivatives (67 ) (18 ) (7 ) Interest expense on debt and derivatives, net 1,903 1,552 1,301 (Gain) loss on hedge accounting derivatives: Foreign currency swaps (1 ) 11 - (Gain) loss on hedge accounting derivatives (1 ) 11 - Less hedged item: change in fair value of fixed rate debt denominated in a foreign currency 1 (11 ) (2 ) Ineffectiveness related to hedge accounting derivatives - - (2 ) Loss (gain) on debt denominated in foreign currencies and U.S. dollar non-hedge accounting derivatives: Loss (gain) on non-hedge accounting debt denominated in foreign currencies 1,344 (652 ) 503 (Gain) loss on non-hedge accounting foreign currency swaps (1,306 ) 880 (573 ) (Gain) on U.S. dollar non-hedge accounting interest rate swaps (90 ) (26 ) (92 ) Total interest expense $ 1,851 $ 1,754 $ 1,137 |
Other Assets and Other Liabil34
Other Assets and Other Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Other Assets And Other Liabilities [Abstract] | |
Other Assets and Other Liabilities | Other assets and other liabilities consisted of the following: March 31, March 31, 2018 2017 Other assets: Notes receivable from affiliates $ 68 $ 823 Used vehicles held for sale 366 264 Derivative assets 61 51 Other assets 1,119 906 Total other assets $ 1,614 $ 2,044 Other liabilities: Unearned insurance premiums and contract revenues $ 2,271 $ 2,154 Accounts payable and accrued expenses 1,054 1,057 Deferred income 468 468 Income taxes payable 2 62 Derivative liabilities 6 46 Other liabilities 186 165 Total other liabilities $ 3,987 $ 3,952 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Related Weighted Average Contractual Interest Rates | Debt and the related weighted average contractual interest rates are summarized as follows: Weighted average contractual interest rates March 31, March 31, March 31, March 31, 2018 2017 2018 2017 Commercial paper $ 27,313 $ 26,632 1.80 % 1.11 % Unsecured notes and loans payable 57,402 57,282 2.18 % 1.91 % Secured notes and loans payable 13,638 14,319 1.95 % 1.32 % Total debt $ 98,353 $ 98,233 2.04 % 1.60 % |
Schedule of Maturities of Long-term Debt | Scheduled maturities of our debt portfolio are summarized below. Actual repayment of secured debt will vary based on the repayment activity on the related pledged assets. Future Years ending March 31, debt maturities 2019 $ 50,535 2020 13,347 2021 9,981 2022 11,434 2023 8,587 Thereafter 4,816 Unamortized discounts, costs and carrying value adjustment (347 ) Total debt $ 98,353 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract] | |
Schedule of Variable Interest Entities, Securitization Transactions Assets and Liabilities | The following tables show the assets and liabilities related to our VIE securitization transactions that were included in our Consolidated Balance Sheets: March 31, 2018 VIE Assets VIE Liabilities Gross Net Restricted Cash Securitized Assets Securitized Assets Other Assets Debt Other Liabilities Retail finance receivables $ 729 $ 12,130 $ 11,927 $ 7 $ 9,958 $ 7 Investments in operating leases 297 7,869 5,706 118 3,680 3 Total $ 1,026 $ 19,999 $ 17,633 $ 125 $ 13,638 $ 10 March 31, 2017 VIE Assets VIE Liabilities Gross Net Restricted Cash Securitized Assets Securitized Assets Other Assets Debt Other Liabilities Retail finance receivables $ 856 $ 13,071 $ 12,865 $ 7 $ 11,017 $ 5 Investments in operating leases 211 6,502 4,888 80 3,302 1 Total $ 1,067 $ 19,573 $ 17,753 $ 87 $ 14,319 $ 6 |
Income Taxes(Tables)
Income Taxes(Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision (benefit) for Income Taxes | The (benefit) provision for income taxes consisted of the following: Years ended March 31, 2018 2017 2016 Current Federal $ (45 ) $ 136 $ 73 State (10 ) 2 (33 ) Foreign 3 7 9 Total (52 ) 145 49 Deferred Federal (2,625 ) (9 ) 420 State 48 5 111 Foreign - 1 - Total (2,577 ) (3 ) 531 (Benefit) provision for income taxes $ (2,629 ) $ 142 $ 580 |
Reconciliation Between U.S. Federal Statutory Tax Rate and Effective Tax Rate | A reconciliation between the U.S. federal statutory tax rate and the effective tax rate is as follows: Years ended March 31, 2018 2017 2016 Provision for income taxes at U.S. federal statutory tax rate 1 31.6 % 35.0 % 35.0 % State and local taxes (net of federal tax benefit) 4.8 % 3.6 % 3.2 % Revaluation of federal deferred tax liability from TCJA (371.6 )% - - Other, net (1.4 )% (3.9 )% 0.2 % Effective tax rate (336.6 )% 34.7 % 38.4 % 1 |
Deferred Tax Liabilities and Assets | Our net deferred income tax liability consisted of the following deferred tax liabilities and assets: March 31, 2018 2017 Liabilities: Lease transactions $ 5,642 $ 7,647 State taxes, net of federal tax benefit 856 640 Mark-to-market of investments in marketable securities and derivatives 185 267 Other 244 383 Deferred tax liabilities $ 6,927 $ 8,937 Assets: Provision for credit and residual value losses 420 593 Deferred costs and fees 186 306 Net operating loss and tax credit carryforwards 993 67 Other 31 66 Deferred tax assets 1,630 1,032 Valuation allowance (29 ) (21 ) Net deferred tax assets $ 1,601 $ 1,011 Net deferred income tax liability 1 $ 5,326 $ 7,926 1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | We have entered into certain commitments and guarantees for which the maximum unfunded amounts are summarized in the table below: March 31, March 31, 2018 2017 Commitments: Credit facilities commitments with dealers $ 1,286 $ 1,199 Minimum lease commitments 162 59 Total commitments 1,448 1,258 Guarantees of affiliate pollution control and solid waste disposal bonds 100 100 Total commitments and guarantees $ 1,548 $ 1,358 |
Future Minimum Lease Payments under Non-cancelable Operating Leases | At March 31, 2018, minimum future commitments under lease agreements to which we are a lessee, including those with affiliates, are as follows: Future Years ending March 31, lease 2019 $ 24 2020 21 2021 17 2022 18 2023 12 Thereafter 70 Total $ 162 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Included in Consolidated Statements of Income | The tables below summarize amounts included in our Consolidated Statements of Income and in our Consolidated Balance Sheets under various related party agreements or relationships: Years Ended March 31, 2018 2017 2016 Total financing revenues: Manufacturers’ subvention and other revenues $ 1,602 $ 1,374 $ 1,315 Interest expense: Credit support fees incurred $ 94 $ 92 $ 91 Interest and other expenses $ 1 $ 3 $ 4 Insurance earned premiums and contract revenues: Insurance premiums and contract revenues $ 182 $ 149 $ 132 Investment and other income, net: Gain on sale of commercial finance business $ - $ - $ 197 Interest and other income $ 13 $ 9 $ 8 Expenses: Operating and administrative $ 80 $ 73 $ 81 Insurance losses and loss adjustment expenses 1 $ (3 ) $ - $ - 1 Amount includes the transfer of insurance losses and loss adjustment expenses under a reinsurance contract. |
Related Party Transactions Included in Consolidated Balance Sheets | The tables below summarize amounts included in our Consolidated Statements of Income and in our Consolidated Balance Sheets under various related party agreements or relationships: March 31, March 31, 2018 2017 Assets: Cash and cash equivalents Commercial paper $ 255 $ - Investments in marketable securities Commercial paper $ 52 $ - Finance receivables, net Accounts receivable $ 191 $ 138 Deferred retail subvention income $ (1,279 ) $ (967 ) Investments in operating leases, net Investments in operating leases, net $ 6 $ 4 Deferred lease subvention income $ (1,682 ) $ (1,174 ) Other assets Notes receivable $ 68 $ 823 Other receivables, net $ 310 $ 202 Liabilities: Other liabilities Unearned affiliate insurance premiums and contract revenues $ 328 $ 332 Other payables, net $ 74 $ 74 Notes payable $ 18 $ 13 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information for our reportable operating segments is summarized as follows: Year ended March 31, 2018 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 10,717 $ - $ - $ 10,717 Depreciation on operating leases 7,041 - - 7,041 Interest expense 1,863 - (12 ) 1,851 Net financing revenues 1,813 - 12 1,825 Insurance earned premiums and contract revenues - 882 - 882 Investment and other income, net 140 88 (12 ) 216 Realized gains, net on investments in marketable securities - 41 - 41 Net financing and other revenues 1,953 1,011 - 2,964 Expenses: Provision for credit losses 401 - - 401 Operating and administrative expenses 1,028 329 - 1,357 Insurance losses and loss adjustment expenses - 425 - 425 Total expenses 1,429 754 - 2,183 Income before income taxes 524 257 - 781 (Benefit) provision for income taxes (2,654 ) 25 - (2,629 ) Net income $ 3,178 $ 232 $ - $ 3,410 Total assets $ 116,942 $ 4,691 $ (1,087 ) $ 120,546 Note 16 – Segment Information (Continued) Year ended March 31, 2017 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 10,046 $ - $ - $ 10,046 Depreciation on operating leases 6,853 - - 6,853 Interest expense 1,759 - (5 ) 1,754 Net financing revenues 1,434 - 5 1,439 Insurance earned premiums and contract revenues - 804 - 804 Investment and other income, net 96 79 (5 ) 170 Realized gains (losses), net on investments in marketable securities 241 (15 ) - 226 Net financing and other revenues 1,771 868 - 2,639 Expenses: Provision for credit losses 582 - - 582 Operating and administrative expenses 979 298 - 1,277 Insurance losses and loss adjustment expenses - 371 - 371 Total expenses 1,561 669 - 2,230 Income before income taxes 210 199 - 409 Provision for income taxes 67 75 - 142 Net income $ 143 $ 124 $ - $ 267 Total assets $ 116,242 $ 4,476 $ (1,083 ) $ 119,635 Note 16 – Segment Information (Continued) Year ended March 31, 2016 Finance Insurance Intercompany operations operations eliminations Total Total financing revenues $ 9,403 $ - $ - $ 9,403 Depreciation on operating leases 5,914 - - 5,914 Interest expense 1,137 - - 1,137 Net financing revenues 2,352 - - 2,352 Insurance earned premiums and contract revenues - 719 - 719 Gain on sale of commercial finance business 197 - - 197 Investment and other income, net 59 99 - 158 Realized gains (losses), net on investments in marketable securities 40 (34 ) - 6 Net financing and other revenues 2,648 784 - 3,432 Expenses: Provision for credit losses 441 - - 441 Operating and administrative expenses 909 252 - 1,161 Insurance losses and loss adjustment expenses - 318 - 318 Total Expenses 1,350 570 - 1,920 Income before income taxes 1,298 214 - 1,512 Provision for income taxes 501 79 - 580 Net income $ 797 $ 135 $ - $ 932 Total assets $ 111,496 $ 4,161 $ (1,065 ) $ 114,592 |
Selected Quarterly Financial 41
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Unaudited First Second Third Fourth Quarter Quarter Quarter Quarter Year ended March 31, 2018: Financing revenues: Operating lease $ 1,981 $ 2,016 $ 2,068 $ 2,102 Retail 474 490 498 512 Dealer 143 141 140 152 Total financing revenues 2,598 2,647 2,706 2,766 Depreciation on operating leases 1,681 1,719 1,778 1,863 Interest expense 448 452 428 523 Net financing revenues 469 476 500 380 Insurance earned premiums and contract revenues 216 221 220 225 Investment and other income, net 47 55 63 51 Realized gains (losses), net on investments in marketable securities 41 1 3 (4 ) Net financing revenues and other revenues 773 753 786 652 Expenses: Provision for credit losses 85 127 108 81 Operating and administrative 313 337 323 384 Insurance losses and loss adjustment expenses 114 102 100 109 Total expenses 512 566 531 574 Income before income taxes 261 187 255 78 Provision (benefit) for income taxes 96 70 (2,821 ) 26 Net income $ 165 $ 117 $ 3,076 $ 52 Unaudited First Second Third Fourth Quarter Quarter Quarter Quarter Year ended March 31, 2017: Financing revenues: Operating lease $ 1,891 $ 1,925 $ 1,946 $ 1,958 Retail 456 459 468 467 Dealer 111 112 123 130 Total financing revenues 2,458 2,496 2,537 2,555 Depreciation on operating leases 1,589 1,683 1,722 1,859 Interest expense 307 297 701 449 Net financing revenues 562 516 114 247 Insurance earned premiums and contract revenues 193 199 202 210 Investment and other income, net 39 42 52 37 Realized gains (losses), net on investments in marketable securities 13 70 157 (14 ) Net financing revenues and other revenues 807 827 525 480 Expenses: Provision for credit losses 52 161 183 186 Operating and administrative 279 317 325 356 Insurance losses and loss adjustment expenses 89 91 92 99 Total expenses 420 569 600 641 Income (loss) before income taxes 387 258 (75 ) (161 ) Provision (benefit) for income taxes 146 95 (29 ) (70 ) Net income (loss) $ 241 $ 163 $ (46 ) $ (91 ) |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | Apr. 01, 2018 | Oct. 02, 2015 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cash proceeds from sale of business | $ 0 | $ 0 | $ 2,317,000,000 | |||||
Gain on sale of commercial finance business | 0 | 0 | 197,000,000 | |||||
Embedded derivatives | $ 0 | 0 | 0 | |||||
Increase in deferred tax assets | $ 2,578,000,000 | $ 3,000,000 | $ (531,000,000) | |||||
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | 35.00% | 31.60% | 35.00% | 35.00% | |||
Scenario, Plan [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | |||||||
Accounting Standards Update 2014-05 [Member] | Subsequent Event [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cumulative effect of adoption of the guidance, reduction in retained earnings | $ 110,000,000 | |||||||
Increase in unearned revenue | 219,000,000 | |||||||
Increase in deferred expenses | 73,000,000 | |||||||
Increase in deferred tax assets | $ 36,000,000 | |||||||
Minimum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Insurance Policy Term | 3 months | |||||||
Maximum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Insurance Policy Term | 120 months | |||||||
Sale of Commercial Finance Business [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cash proceeds from sale of business | $ 2,300,000,000 | |||||||
Gain on sale of commercial finance business | $ 197,000,000 | |||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Finance Operations [Member] | California [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration Percentage | 22.00% | |||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Finance Operations [Member] | Texas [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration Percentage | 11.00% | |||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Finance Operations [Member] | New York [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration Percentage | 8.00% | |||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Finance Operations [Member] | New Jersey [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration Percentage | 5.00% | |||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Insurance Operations [Member] | California [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration Percentage | 26.00% | |||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Insurance Operations [Member] | New York [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration Percentage | 6.00% | |||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Insurance Operations [Member] | New Jersey [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration Percentage | 5.00% | |||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Insurance Operations [Member] | Maryland [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration Percentage | 5.00% |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | $ 3,645 | |
Available-for-sale securities total | 5,829 | $ 5,692 |
Derivative assets | 61 | 51 |
Counterparty netting and collateral | (737) | (154) |
Derivative liabilities | (6) | (46) |
Counterparty netting and collateral | 262 | 1,013 |
U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 2,798 | 2,308 |
Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 11 | 11 |
Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 201 | 369 |
U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 39 | 45 |
Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 2 | 2 |
Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 29 | 37 |
Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 39 | 31 |
Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 1,524 | 394 |
Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 3,392 | 3,962 |
Available-for-sale securities total | 5,829 | 5,692 |
Derivative assets | 61 | 51 |
Counterparty netting and collateral | (1,297) | (548) |
Assets at fair value | 10,164 | 9,705 |
Counterparty netting and collateral | 822 | 1,407 |
Liabilities at fair value | (6) | (46) |
Net assets at fair value | 10,158 | 9,659 |
Derivative asset liability collateral obligation right to return reclaim cash offset | (475) | 859 |
Recurring [Member] | Money market instruments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 897 | 1,332 |
Restricted cash equivalents | 882 | |
Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,240 | 2,630 |
Available-for-sale securities, Debt instruments | 474 | 755 |
Recurring [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 255 | |
Available-for-sale securities, Debt instruments | 52 | |
Recurring [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 2,798 | 2,308 |
Recurring [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 11 | 11 |
Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 201 | 369 |
Recurring [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 39 | 45 |
Recurring [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 2 | 2 |
Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 29 | 37 |
Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 39 | 31 |
Recurring [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 1,524 | 394 |
Recurring [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 485 | 122 |
Derivative liabilities | (200) | (1,176) |
Recurring [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 872 | 475 |
Derivative liabilities | (628) | (277) |
Recurring [Member] | Interest rate floors [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | 2 |
Recurring [Member] | Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 347 | 287 |
Available-for-sale securities total | 4,313 | 2,983 |
Derivative assets | 0 | 0 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 4,833 | 3,270 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | 0 | 0 |
Net assets at fair value | 4,833 | 3,270 |
Recurring [Member] | Level 1 [Member] | Money market instruments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 347 | 287 |
Restricted cash equivalents | 173 | |
Recurring [Member] | Level 1 [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available-for-sale securities, Debt instruments | 0 | 105 |
Recurring [Member] | Level 1 [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Available-for-sale securities, Debt instruments | 0 | |
Recurring [Member] | Level 1 [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 2,774 | 2,273 |
Recurring [Member] | Level 1 [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 15 | 211 |
Recurring [Member] | Level 1 [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 1,524 | 394 |
Recurring [Member] | Level 1 [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Interest rate floors [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 3,045 | 3,675 |
Available-for-sale securities total | 786 | 889 |
Derivative assets | 1,358 | 598 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 5,898 | 5,162 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | (807) | (1,385) |
Net assets at fair value | 5,091 | 3,777 |
Recurring [Member] | Level 2 [Member] | Money market instruments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 550 | 1,045 |
Restricted cash equivalents | 709 | |
Recurring [Member] | Level 2 [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,240 | 2,630 |
Available-for-sale securities, Debt instruments | 474 | 650 |
Recurring [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 255 | |
Available-for-sale securities, Debt instruments | 52 | |
Recurring [Member] | Level 2 [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 24 | 33 |
Recurring [Member] | Level 2 [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 11 | 11 |
Recurring [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 186 | 150 |
Recurring [Member] | Level 2 [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 39 | 45 |
Recurring [Member] | Level 2 [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 485 | 122 |
Derivative liabilities | (200) | (1,114) |
Recurring [Member] | Level 2 [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 872 | 474 |
Derivative liabilities | (607) | (271) |
Recurring [Member] | Level 2 [Member] | Interest rate floors [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | 2 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available-for-sale securities total | 70 | 80 |
Derivative assets | 0 | 1 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 70 | 81 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | (21) | (68) |
Net assets at fair value | 49 | 13 |
Recurring [Member] | Level 3 [Member] | Money market instruments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted cash equivalents | 0 | |
Recurring [Member] | Level 3 [Member] | Certificates of deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Available-for-sale securities, Debt instruments | 0 | |
Recurring [Member] | Level 3 [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 2 |
Recurring [Member] | Level 3 [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 8 |
Recurring [Member] | Level 3 [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 2 | 2 |
Recurring [Member] | Level 3 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 29 | 37 |
Recurring [Member] | Level 3 [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt instruments | 39 | 31 |
Recurring [Member] | Level 3 [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | (62) |
Recurring [Member] | Level 3 [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 1 |
Derivative liabilities | (21) | (6) |
Recurring [Member] | Level 3 [Member] | Interest rate floors [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Recurring [Member] | Fixed income mutual funds measured at net asset value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Equity instruments | $ 660 | $ 1,740 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total gains (losses) included in earnings | $ 7 | $ (67) |
Total gains (losses) included in other comprehensive income | 0 | 2 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 0 | (67) |
Fair value | 13 | 116 |
Purchases | 35 | 10 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | (5) | (48) |
Transfers in to Level 3 | 1 | 0 |
Transfers out of Level 3 | (2) | 0 |
Fair value | 49 | 13 |
Available-for-sale securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | 80 | 91 |
Total gains (losses) included in earnings | 0 | 0 |
Total gains (losses) included in other comprehensive income | 0 | 2 |
Purchases | 35 | 10 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | (44) | (23) |
Transfers in to Level 3 | 1 | 0 |
Transfers out of Level 3 | (2) | 0 |
Fair value | 70 | 80 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 0 | 0 |
Available-for-sale securities [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | 2 | 2 |
Total gains (losses) included in earnings | 0 | 0 |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | (2) | 0 |
Fair value | 0 | 2 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 0 | 0 |
Available-for-sale securities [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | 8 | 7 |
Total gains (losses) included in earnings | 0 | 0 |
Total gains (losses) included in other comprehensive income | 0 | 1 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | (9) | 0 |
Transfers in to Level 3 | 1 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | 0 | 8 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 0 | 0 |
Available-for-sale securities [Member] | Mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | 39 | 45 |
Total gains (losses) included in earnings | 0 | 0 |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Purchases | 5 | 4 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | (13) | (10) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | 31 | 39 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 0 | 0 |
Available-for-sale securities [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value | 31 | 37 |
Total gains (losses) included in earnings | 0 | 0 |
Total gains (losses) included in other comprehensive income | 0 | 1 |
Purchases | 30 | 6 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | (22) | (13) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | 39 | 31 |
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 0 | 0 |
Derivative [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 0 | (67) |
Fair value | (67) | 25 |
Total gains (losses) included in earnings | 7 | (67) |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 39 | (25) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | (21) | (67) |
Derivative [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 0 | (24) |
Fair value | (5) | 39 |
Total gains (losses) included in earnings | 0 | (24) |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | (16) | (20) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | (21) | (5) |
Derivative [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
The amount of total gains (losses) included in earnings attributable to assets held at the reporting date | 0 | (43) |
Fair value | (62) | (14) |
Total gains (losses) included in earnings | 7 | (43) |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 55 | (5) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value | $ 0 | $ (62) |
Fair Value Measurements - Ass45
Fair Value Measurements - Assets and Liabilities Not Carried at Fair Value on Recurring Basis on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Financial liabilities | ||
Financial liabilities | $ 27,313 | $ 26,632 |
Financial liabilities | 98,353 | 98,233 |
Unsecured notes and loans payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 57,402 | 57,282 |
Secured notes and loans payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 13,638 | 14,319 |
Fair value [Member] | Commercial paper [Member] | ||
Financial liabilities | ||
Financial liabilities | 27,313 | 26,632 |
Fair value [Member] | Unsecured notes and loans payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 57,782 | 58,223 |
Fair value [Member] | Secured notes and loans payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 13,588 | 14,322 |
Fair value [Member] | Level 1 [Member] | Commercial paper [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 1 [Member] | Unsecured notes and loans payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 1 [Member] | Secured notes and loans payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Financial liabilities | ||
Financial liabilities | 27,313 | 26,632 |
Fair value [Member] | Level 2 [Member] | Unsecured notes and loans payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 55,441 | 55,838 |
Fair value [Member] | Level 2 [Member] | Secured notes and loans payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 3 [Member] | Commercial paper [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 3 [Member] | Unsecured notes and loans payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 2,341 | 2,385 |
Fair value [Member] | Level 3 [Member] | Secured notes and loans payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 13,588 | 14,322 |
Retail Loan [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 52,374 | 50,682 |
Retail Loan [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 52,081 | 50,733 |
Retail Loan [Member] | Fair value [Member] | Level 1 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Retail Loan [Member] | Fair value [Member] | Level 2 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Retail Loan [Member] | Fair value [Member] | Level 3 [Member] | ||
Financial assets | ||
Finance receivables, net | 52,081 | 50,733 |
Wholesale [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 10,365 | 10,819 |
Wholesale [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 10,413 | 10,881 |
Wholesale [Member] | Fair value [Member] | Level 1 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Wholesale [Member] | Fair value [Member] | Level 2 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Wholesale [Member] | Fair value [Member] | Level 3 [Member] | ||
Financial assets | ||
Finance receivables, net | 10,413 | 10,881 |
Real estate [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 4,492 | 4,602 |
Real estate [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 4,409 | 4,459 |
Real estate [Member] | Fair value [Member] | Level 1 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Real estate [Member] | Fair value [Member] | Level 2 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Real estate [Member] | Fair value [Member] | Level 3 [Member] | ||
Financial assets | ||
Finance receivables, net | 4,409 | 4,459 |
Working capital [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 2,222 | 2,218 |
Working capital [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 2,197 | 2,222 |
Working capital [Member] | Fair value [Member] | Level 1 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Working capital [Member] | Fair value [Member] | Level 2 [Member] | ||
Financial assets | ||
Finance receivables, net | 0 | 0 |
Working capital [Member] | Fair value [Member] | Level 3 [Member] | ||
Financial assets | ||
Finance receivables, net | $ 2,197 | $ 2,222 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Finance receivables from related party | $ 189 | $ 136 |
Investments in Marketable Sec47
Investments in Marketable Securities - Summary of Investments in Marketable Securities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | $ 3,669 | |
Available-for-sale securities, Debt instruments, Fair value | 3,645 | |
Amortized cost | 5,865 | $ 5,652 |
Unrealized gains | 15 | 50 |
Unrealized losses | (51) | (10) |
Fair value | 5,829 | 5,692 |
U.S. government and agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 2,821 | 2,314 |
Unrealized gains | 0 | 1 |
Unrealized losses | (23) | (7) |
Available-for-sale securities, Debt instruments, Fair value | 2,798 | 2,308 |
Municipal debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 10 | 10 |
Unrealized gains | 1 | 1 |
Unrealized losses | 0 | 0 |
Available-for-sale securities, Debt instruments, Fair value | 11 | 11 |
Certificates of deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 475 | 755 |
Unrealized gains | 0 | 0 |
Unrealized losses | (1) | 0 |
Available-for-sale securities, Debt instruments, Fair value | 474 | 755 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 52 | |
Unrealized gains | 0 | |
Unrealized losses | 0 | |
Available-for-sale securities, Debt instruments, Fair value | 52 | |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 203 | 368 |
Unrealized gains | 1 | 2 |
Unrealized losses | (3) | (1) |
Available-for-sale securities, Debt instruments, Fair value | 201 | 369 |
U.S. government agency mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 38 | 45 |
Unrealized gains | 1 | 1 |
Unrealized losses | 0 | (1) |
Available-for-sale securities, Debt instruments, Fair value | 39 | 45 |
Non-agency residential mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 1 | 2 |
Unrealized gains | 1 | 0 |
Unrealized losses | 0 | 0 |
Available-for-sale securities, Debt instruments, Fair value | 2 | 2 |
Non-agency commercial mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 30 | 37 |
Unrealized gains | 0 | 1 |
Unrealized losses | (1) | (1) |
Available-for-sale securities, Debt instruments, Fair value | 29 | 37 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Debt instruments, Amortized cost | 39 | 31 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Available-for-sale securities, Debt instruments, Fair value | 39 | 31 |
Fixed income short-term floating NAV fund II [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 2 | 39 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Equity instrument, Fair value | 2 | 39 |
Fixed income U.S. government sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 202 | 389 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Equity instrument, Fair value | 202 | 389 |
Fixed income municipal sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 8 | 20 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Equity instrument, Fair value | 8 | 20 |
Investment Grade Corporate Sector Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 122 | 252 |
Unrealized gains | 0 | 9 |
Unrealized losses | (3) | 0 |
Equity instrument, Fair value | 119 | 261 |
Fixed income high-yield sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 22 | 83 |
Unrealized gains | 1 | 6 |
Unrealized losses | 0 | 0 |
Equity instrument, Fair value | 23 | 89 |
Fixed income mortgage sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 154 | 390 |
Unrealized gains | 0 | 2 |
Unrealized losses | (3) | 0 |
Equity instrument, Fair value | 151 | 392 |
Fixed income asset-backed securities sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 58 | 140 |
Unrealized gains | 1 | 10 |
Unrealized losses | 0 | 0 |
Equity instrument, Fair value | 59 | 150 |
Fixed income emerging market sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 39 | 105 |
Unrealized gains | 4 | 7 |
Unrealized losses | 0 | 0 |
Equity instrument, Fair value | 43 | 112 |
Fixed income international sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 54 | 136 |
Unrealized gains | 0 | 0 |
Unrealized losses | (1) | 0 |
Equity instrument, Fair value | 53 | 136 |
Fixed income total return bond funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 1,535 | 389 |
Unrealized gains | 5 | 5 |
Unrealized losses | (16) | 0 |
Equity instrument, Fair value | $ 1,524 | 394 |
Fixed income real return sector fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity instrument, Amortized cost | 147 | |
Unrealized gains | 5 | |
Unrealized losses | 0 | |
Equity instrument, Fair value | $ 152 |
Investments in Marketable Sec48
Investments in Marketable Securities - Additional Information (Details) | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Marketable Securities [Abstract] | |
Private placement share redemption percentage | 1.00% |
Private placement share redemption amount | $ 250,000 |
Share redemption period | 90 days |
Investments in Marketable Sec49
Investments in Marketable Securities - Schedule of Realized Gains and Losses on Sales from AFS Presented in Our Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Available-for-sale securities: | |||
Realized gains on sales | $ 46 | $ 251 | $ 59 |
Realized losses on sales | (2) | (1) | (3) |
Other-than-temporary impairment | $ (3) | $ (24) | $ (50) |
Investments in Marketable Sec50
Investments in Marketable Securities - Summary of Contractual Maturities of Available-for-Sale Securities (Details) $ in Millions | Mar. 31, 2018USD ($) | |
Available-for-sale debt instruments, Amortized Cost | ||
Due within 1 Year, Amortized Cost | $ 2,089 | |
Due after 1 Year through 5 Years, Amortized Cost | 1,247 | |
Due after 5 Years through 10 Years, Amortized Cost | 151 | |
Due after 10 Years, Amortized Cost | 74 | |
Mortgage-backed and asset-backed securities, amortized cost | 108 | [1] |
Available-for-sale securities, Debt instruments, Amortized cost | 3,669 | |
Available-for-sale debt instruments, Fair Value | ||
Due within 1 Year, Amount | 2,082 | |
Due after 1 Year through 5 Years, Amount | 1,235 | |
Due after 5 Years through 10 Years, Amount | 146 | |
Due after 10 Years, Amount | 73 | |
Mortgage-backed and asset-backed securities, fair value | 109 | [1] |
Total, fair value | $ 3,645 | |
[1] | Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities have multiple maturity dates. |
Finance Receivables, Net (Net F
Finance Receivables, Net (Net Financing Receivables) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | $ 70,815 | $ 69,308 | |
Finance receivables, net | 69,647 | 68,462 | |
Finance Receivables, Net [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 70,815 | 69,308 | |
Deferred origination (fees) and costs, net | 630 | 644 | |
Deferred income | (1,335) | (1,023) | |
Allowance for credit losses | (463) | (467) | $ (421) |
Finance receivables, net | 69,647 | 68,462 | |
Finance Receivables, Net [Member] | Retail receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 41,265 | 38,338 | |
Finance Receivables, Net [Member] | Securitized retail receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 12,130 | 13,071 | |
Finance Receivables, Net [Member] | Dealer financing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross finance receivables | 17,420 | 17,899 | |
Allowance for credit losses | (151) | (123) | |
Finance Receivables, Net [Member] | Retail and securitized retail receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit losses | $ (312) | $ (344) |
Finance Receivables, Net (Contr
Finance Receivables, Net (Contractual Maturities on Retail Receivables and Dealer Financing) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Retail receivables [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2,019 | $ 14,348 |
2,020 | 12,838 |
2,021 | 10,702 |
2,022 | 8,051 |
2,023 | 5,232 |
Thereafter | 2,224 |
Total | 53,395 |
Dealer financing [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2,019 | 13,220 |
2,020 | 1,527 |
2,021 | 772 |
2,022 | 667 |
2,023 | 515 |
Thereafter | 719 |
Total | $ 17,420 |
Finance Receivables, Net (Finan
Finance Receivables, Net (Finance Receivable Credit Quality Indicators) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Current | $ 69,979 | $ 68,527 |
Financing receivables, past due | 836 | 781 |
Total Finance Receivables | 70,815 | 69,308 |
Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 52,559 | 50,631 |
Financing receivables, past due | 836 | 778 |
Total Finance Receivables | 53,395 | 51,409 |
Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 10,513 | 10,951 |
Financing receivables, past due | 0 | 0 |
Total Finance Receivables | 10,513 | 10,951 |
Wholesale [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 9,451 | 9,592 |
Wholesale [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 946 | 1,269 |
Wholesale [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 75 | 12 |
Wholesale [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 41 | 78 |
Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 4,630 | 4,713 |
Financing receivables, past due | 0 | 0 |
Total Finance Receivables | 4,630 | 4,713 |
Real estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 4,070 | 4,010 |
Real estate [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 484 | 613 |
Real estate [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 29 | 45 |
Real estate [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 47 | 45 |
Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 2,277 | 2,232 |
Financing receivables, past due | 0 | 3 |
Total Finance Receivables | 2,277 | 2,235 |
Working capital [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 2,118 | 2,082 |
Working capital [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 105 | 143 |
Working capital [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 33 | 5 |
Working capital [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Finance Receivables | 21 | 5 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 613 | 589 |
30-59 Days Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 613 | 586 |
30-59 Days Past Due [Member] | Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
30-59 Days Past Due [Member] | Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
30-59 Days Past Due [Member] | Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 3 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 158 | 129 |
60-89 Days Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 158 | 129 |
60-89 Days Past Due [Member] | Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
60-89 Days Past Due [Member] | Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
60-89 Days Past Due [Member] | Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 65 | 63 |
90 Days or Greater Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 65 | 63 |
90 Days or Greater Past Due [Member] | Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
90 Days or Greater Past Due [Member] | Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | 0 | 0 |
90 Days or Greater Past Due [Member] | Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, past due | $ 0 | $ 0 |
Finance Receivables, Net (Summa
Finance Receivables, Net (Summary of Impaired Loans by Class of Finance Receivable) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Impaired Finance Receivables | ||
Impaired Finance Receivables Individually Evaluated with Related Allowance | $ 248 | $ 218 |
Impaired Finance Receivables Individually Evaluated with No Related Allowance | 247 | 239 |
Impaired Finance Receivables | 717 | 677 |
Unpaid Principal Balance | ||
Unpaid Principal Balance Individually Evaluated with Related Allowance | 248 | 218 |
Unpaid Principal Balance Individually Evaluated with No Related Allowance | 247 | 239 |
Unpaid Principal Balance | 715 | 674 |
Individually Evaluated Allowance | 70 | 33 |
Average Impaired Finance Receivables | ||
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance | 233 | 206 |
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance | 228 | 261 |
Average Impaired Finance Receivables | 683 | 690 |
Wholesale [Member] | ||
Impaired Finance Receivables | ||
Impaired Finance Receivables Individually Evaluated with Related Allowance | 107 | 93 |
Impaired Finance Receivables Individually Evaluated with No Related Allowance | 83 | 134 |
Impaired Finance Receivables | 190 | 227 |
Unpaid Principal Balance | ||
Unpaid Principal Balance Individually Evaluated with Related Allowance | 107 | 93 |
Unpaid Principal Balance Individually Evaluated with No Related Allowance | 83 | 134 |
Unpaid Principal Balance | 190 | 227 |
Individually Evaluated Allowance | 14 | 12 |
Average Impaired Finance Receivables | ||
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance | 103 | 77 |
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance | 104 | 153 |
Average Impaired Finance Receivables | 207 | 230 |
Real estate [Member] | ||
Impaired Finance Receivables | ||
Impaired Finance Receivables Individually Evaluated with Related Allowance | 86 | 94 |
Impaired Finance Receivables Individually Evaluated with No Related Allowance | 142 | 105 |
Impaired Finance Receivables | 228 | 199 |
Unpaid Principal Balance | ||
Unpaid Principal Balance Individually Evaluated with Related Allowance | 86 | 94 |
Unpaid Principal Balance Individually Evaluated with No Related Allowance | 142 | 105 |
Unpaid Principal Balance | 228 | 199 |
Individually Evaluated Allowance | 5 | 12 |
Average Impaired Finance Receivables | ||
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance | 88 | 96 |
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance | 115 | 107 |
Average Impaired Finance Receivables | 203 | 203 |
Working capital [Member] | ||
Impaired Finance Receivables | ||
Impaired Finance Receivables Individually Evaluated with Related Allowance | 55 | 31 |
Impaired Finance Receivables Individually Evaluated with No Related Allowance | 22 | 0 |
Impaired Finance Receivables | 77 | 31 |
Unpaid Principal Balance | ||
Unpaid Principal Balance Individually Evaluated with Related Allowance | 55 | 31 |
Unpaid Principal Balance Individually Evaluated with No Related Allowance | 22 | 0 |
Unpaid Principal Balance | 77 | 31 |
Individually Evaluated Allowance | 51 | 9 |
Average Impaired Finance Receivables | ||
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance | 42 | 33 |
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance | 9 | 1 |
Average Impaired Finance Receivables | 51 | 34 |
Retail Loan [Member] | ||
Impaired Finance Receivables | ||
Impaired Finance Receivables Aggregated And Evaluated For Impairment | 222 | 220 |
Impaired Finance Receivables | 222 | 220 |
Unpaid Principal Balance | ||
Unpaid Principal Balance Aggregated And Evaluated For Impairment | 220 | 217 |
Unpaid Principal Balance | 220 | 217 |
Average Impaired Finance Receivables | ||
Average Impaired Finance Receivables Account Balances Aggregated And Evaluated For Impairment | 222 | 223 |
Average Impaired Finance Receivables | $ 222 | $ 223 |
Finance Receivables, Net - Addi
Finance Receivables, Net - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Receivables [Abstract] | ||
Dealer products portfolio segment accounts on nonaccrual status | $ 249 | $ 251 |
Investments in Operating Leas56
Investments in Operating Leases, Net (Investments in Operating Leases, Net) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases, net | $ 38,697 | $ 38,152 |
Investments in operating leases [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | 42,863 | 41,874 |
Securitized investments in operating leases [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | 7,869 | 6,502 |
Investments In Operating Leases, Net [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | 50,732 | 48,376 |
Deferred origination (fees) and costs, net | (224) | (201) |
Deferred income | (1,700) | (1,196) |
Accumulated depreciation | (9,977) | (8,672) |
Allowance for credit losses | $ (134) | $ (155) |
Investments in Operating Leas57
Investments in Operating Leases, Net - Future Minimum Rentals on Investments in Operating Leases (Details) $ in Millions | Mar. 31, 2018USD ($) |
Future minimum rentals on operating leases | |
2,019 | $ 6,067 |
2,020 | 3,769 |
2,021 | 1,438 |
2,022 | 157 |
2,023 | 6 |
Total | $ 11,437 |
Investments in Operating Leas58
Investments in Operating Leases, Net - Additional Information (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments in operating leases [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Impairment in investments in operating leases portfolio | $ 0 | $ 0 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance for Credit Losses on Finance Receivables and Investments in Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 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 | ||
Allowance for Credit Losses on Finance Receivables and Investments in Operating Leases | ||||||||||||
Allowance for credit losses at beginning of period | $ 622 | $ 535 | $ 622 | $ 535 | $ 485 | |||||||
Provision for credit losses | $ 81 | $ 108 | $ 127 | $ 85 | $ 186 | $ 183 | $ 161 | $ 52 | 401 | 582 | 441 | |
Transferred to held-for-sale | [1] | 0 | 0 | (7) | ||||||||
Charge-offs, net of recoveries | (426) | (495) | (384) | |||||||||
Allowance for credit losses at end of period | $ 597 | $ 622 | $ 597 | $ 622 | $ 535 | |||||||
[1] | Amount relates to the commercial finance business which was sold in fiscal 2016. |
Allowance for Credit Losses -60
Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Recoveries from credit loss charge-offs | $ 90 | $ 79 | $ 72 |
Finance Receivables, Net [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Ending balance: Collectively evaluated for impairment | 70,320 | 68,851 | |
Finance Receivables, Net [Member] | Retail and Commercial Loan [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Impaired finance receivables aggregated and collectively evaluated for impairment | 222 | 220 | |
Finance Receivables, Net [Member] | Dealer Products [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Ending balance: Collectively evaluated for impairment | 16,925 | 17,442 | |
Finance Receivables, Net [Member] | TMNA [Member] | Financial Guarantee [Member] | Dealer Products [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Ending balance: Collectively evaluated for impairment | 1,030 | 1,051 | |
Finance Receivables, Net [Member] | Private Toyota Distributors [Member] | Financial Guarantee [Member] | Dealer Products [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Ending balance: Collectively evaluated for impairment | $ 146 | $ 166 |
Allowance for Credit Losses -61
Allowance for Credit Losses - Allowance for Credit Losses and Recorded Investment in Finance Receivables by Portfolio Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 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 | ||
Allowance for Credit Losses for Finance Receivables: | ||||||||||||
Provision for credit losses | $ 81 | $ 108 | $ 127 | $ 85 | $ 186 | $ 183 | $ 161 | $ 52 | $ 401 | $ 582 | $ 441 | |
Transferred to held-for-sale | [1] | 0 | 0 | (7) | ||||||||
Finance Receivables: | ||||||||||||
Total Finance Receivables | 70,815 | 69,308 | 70,815 | 69,308 | ||||||||
Retail Loan [Member] | ||||||||||||
Finance Receivables: | ||||||||||||
Total Finance Receivables | 53,395 | 51,409 | 53,395 | 51,409 | ||||||||
Finance Receivables, Net [Member] | ||||||||||||
Allowance for Credit Losses for Finance Receivables: | ||||||||||||
Allowance for credit losses at beginning of period | 467 | 421 | 467 | 421 | ||||||||
Charge-offs | (355) | (399) | ||||||||||
Recoveries | 50 | 50 | ||||||||||
Provision for credit losses | 301 | 395 | ||||||||||
Allowance for credit losses at end of period | 463 | 467 | 463 | 467 | 421 | |||||||
Ending balance: Individually evaluated for impairment | 70 | 33 | 70 | 33 | ||||||||
Ending balance: Collectively evaluated for impairment | 393 | 434 | 393 | 434 | ||||||||
Finance Receivables: | ||||||||||||
Total Finance Receivables | 70,815 | 69,308 | 70,815 | 69,308 | ||||||||
Ending balance: Individually evaluated for impairment | 495 | 457 | 495 | 457 | ||||||||
Ending balance: Collectively evaluated for impairment | 70,320 | 68,851 | 70,320 | 68,851 | ||||||||
Finance Receivables, Net [Member] | Retail Loan [Member] | ||||||||||||
Allowance for Credit Losses for Finance Receivables: | ||||||||||||
Allowance for credit losses at beginning of period | 344 | 289 | 344 | 289 | ||||||||
Charge-offs | (355) | (399) | ||||||||||
Recoveries | 50 | 50 | ||||||||||
Provision for credit losses | 273 | 404 | ||||||||||
Allowance for credit losses at end of period | 312 | 344 | 312 | 344 | 289 | |||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | ||||||||
Ending balance: Collectively evaluated for impairment | 312 | 344 | 312 | 344 | ||||||||
Finance Receivables: | ||||||||||||
Total Finance Receivables | 53,395 | 51,409 | 53,395 | 51,409 | ||||||||
Ending balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | ||||||||
Ending balance: Collectively evaluated for impairment | 53,395 | 51,409 | 53,395 | 51,409 | ||||||||
Finance Receivables, Net [Member] | Dealer Products [Member] | ||||||||||||
Allowance for Credit Losses for Finance Receivables: | ||||||||||||
Allowance for credit losses at beginning of period | $ 123 | $ 132 | 123 | 132 | ||||||||
Charge-offs | 0 | 0 | ||||||||||
Recoveries | 0 | 0 | ||||||||||
Provision for credit losses | 28 | (9) | ||||||||||
Allowance for credit losses at end of period | 151 | 123 | 151 | 123 | $ 132 | |||||||
Ending balance: Individually evaluated for impairment | 70 | 33 | 70 | 33 | ||||||||
Ending balance: Collectively evaluated for impairment | 81 | 90 | 81 | 90 | ||||||||
Finance Receivables: | ||||||||||||
Total Finance Receivables | 17,420 | 17,899 | 17,420 | 17,899 | ||||||||
Ending balance: Individually evaluated for impairment | 495 | 457 | 495 | 457 | ||||||||
Ending balance: Collectively evaluated for impairment | $ 16,925 | $ 17,442 | $ 16,925 | $ 17,442 | ||||||||
[1] | Amount relates to the commercial finance business which was sold in fiscal 2016. |
Allowance for Credit Losses - P
Allowance for Credit Losses - Past Due Finance Receivables and Investments in Operating Leases (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Past Due Finance Receivables and Investments in Operating Leases | ||
Finance receivables | $ 223 | $ 192 |
Investments in operating leases | 106 | 95 |
Total | $ 329 | $ 287 |
Allowance for Credit Losses -63
Allowance for Credit Losses - Aging of Finance Receivables by Class (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 836 | $ 781 |
Current | 69,979 | 68,527 |
Total Finance Receivables | 70,815 | 69,308 |
90 Days or Greater Past Due and Accruing | 46 | 41 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 613 | 589 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 158 | 129 |
90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 65 | 63 |
Retail Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 836 | 778 |
Current | 52,559 | 50,631 |
Total Finance Receivables | 53,395 | 51,409 |
90 Days or Greater Past Due and Accruing | 46 | 41 |
Retail Loan [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 613 | 586 |
Retail Loan [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 158 | 129 |
Retail Loan [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 65 | 63 |
Wholesale [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 10,513 | 10,951 |
Total Finance Receivables | 10,513 | 10,951 |
90 Days or Greater Past Due and Accruing | 0 | 0 |
Wholesale [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Wholesale [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Wholesale [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 4,630 | 4,713 |
Total Finance Receivables | 4,630 | 4,713 |
90 Days or Greater Past Due and Accruing | 0 | 0 |
Real estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Working capital [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 3 |
Current | 2,277 | 2,232 |
Total Finance Receivables | 2,277 | 2,235 |
90 Days or Greater Past Due and Accruing | 0 | 0 |
Working capital [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 3 |
Working capital [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Working capital [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Derivatives, Hedging Activiti64
Derivatives, Hedging Activities and Interest Expense - Derivative Activity Impact on Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Derivatives Fair Value [Line Items] | ||
Carrying value of derivative contracts – Other assets | $ 61 | $ 51 |
Carrying value of derivative contracts – Other liabilities | 6 | 46 |
Counterparty netting and collateral held | (737) | (154) |
Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 79,678 | 66,117 |
Fair value | 1,358 | 599 |
Counterparty netting and collateral held | (1,297) | (548) |
Other assets [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 71,464 | 62,525 |
Fair value | 872 | 475 |
Other assets [Member] | Interest rate floors [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 847 | 1,673 |
Fair value | 1 | 2 |
Other assets [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 7,367 | 1,919 |
Fair value | 485 | 122 |
Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 47,376 | 57,990 |
Fair value | 828 | 1,453 |
Counterparty netting and collateral posted | (822) | (1,407) |
Other liabilities [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 41,513 | 45,297 |
Fair value | 628 | 277 |
Other liabilities [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 5,863 | 12,663 |
Fair value | 200 | 1,176 |
Other liabilities [Member] | Interest rate caps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 30 | |
Fair value | 0 | |
Hedge accounting derivatives [Member] | Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 119 | 271 |
Fair value | 8 | 28 |
Hedge accounting derivatives [Member] | Other assets [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | 0 |
Fair value | 0 | 0 |
Hedge accounting derivatives [Member] | Other assets [Member] | Interest rate floors [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | 0 |
Fair value | 0 | 0 |
Hedge accounting derivatives [Member] | Other assets [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 119 | 271 |
Fair value | 8 | 28 |
Hedge accounting derivatives [Member] | Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | 93 |
Fair value | 0 | 1 |
Hedge accounting derivatives [Member] | Other liabilities [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | 0 |
Fair value | 0 | 0 |
Hedge accounting derivatives [Member] | Other liabilities [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | 93 |
Fair value | 0 | 1 |
Hedge accounting derivatives [Member] | Other liabilities [Member] | Interest rate caps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 0 | |
Fair value | 0 | |
Non-hedge accounting derivatives [Member] | Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 79,559 | 65,846 |
Fair value | 1,350 | 571 |
Non-hedge accounting derivatives [Member] | Other assets [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 71,464 | 62,525 |
Fair value | 872 | 475 |
Non-hedge accounting derivatives [Member] | Other assets [Member] | Interest rate floors [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 847 | 1,673 |
Fair value | 1 | 2 |
Non-hedge accounting derivatives [Member] | Other assets [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 7,248 | 1,648 |
Fair value | 477 | 94 |
Non-hedge accounting derivatives [Member] | Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 47,376 | 57,897 |
Fair value | 828 | 1,452 |
Non-hedge accounting derivatives [Member] | Other liabilities [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 41,513 | 45,297 |
Fair value | 628 | 277 |
Non-hedge accounting derivatives [Member] | Other liabilities [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 5,863 | 12,570 |
Fair value | 200 | 1,175 |
Non-hedge accounting derivatives [Member] | Other liabilities [Member] | Interest rate caps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 30 | |
Fair value | 0 | |
Carrying value [Member] | Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying value of derivative contracts – Other assets | 61 | 51 |
Carrying value [Member] | Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying value of derivative contracts – Other liabilities | $ 6 | $ 46 |
Derivatives, Hedging Activiti65
Derivatives, Hedging Activities and Interest Expense - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Collateral held | $ 737 | $ 154 |
Collateral held in excess of the fair value of derivative assets | 11 | 5 |
Counterparty netting and collateral | 262 | 1,013 |
Counterparty netting, derivative assets | 560 | 394 |
Counterparty netting, derivative liabilities | 560 | 394 |
Collateral posted in excess of the fair value of derivative liabilities | $ 3 | $ 5 |
Derivatives, Hedging Activiti66
Derivatives, Hedging Activities and Interest Expense - Components of Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 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 | |
Derivative Instruments Gain Loss [Line Items] | |||||||||||
Interest expense on debt | $ 1,970 | $ 1,570 | $ 1,308 | ||||||||
Interest income on derivatives | (67) | (18) | (7) | ||||||||
Interest expense on debt and derivatives, net | 1,903 | 1,552 | 1,301 | ||||||||
Total interest expense | $ 523 | $ 428 | $ 452 | $ 448 | $ 449 | $ 701 | $ 297 | $ 307 | 1,851 | 1,754 | 1,137 |
Interest expense [Member] | |||||||||||
Derivative Instruments Gain Loss [Line Items] | |||||||||||
Loss (gain) on non-hedge accounting debt denominated in foreign currencies | 1,344 | (652) | 503 | ||||||||
(Gain) loss on non-hedge accounting foreign currency swaps | (1,306) | 880 | (573) | ||||||||
(Gain) on U.S. dollar non-hedge accounting interest rate swaps | (90) | (26) | (92) | ||||||||
Hedge accounting derivatives [Member] | Interest expense [Member] | |||||||||||
Derivative Instruments Gain Loss [Line Items] | |||||||||||
(Gain) loss on hedge accounting derivatives | (1) | 11 | 0 | ||||||||
Less hedged item: change in fair value of fixed rate debt denominated in a foreign currency | 1 | (11) | (2) | ||||||||
Ineffectiveness related to hedge accounting derivatives | 0 | 0 | (2) | ||||||||
Hedge accounting derivatives [Member] | Interest expense [Member] | Foreign currency swaps [Member] | |||||||||||
Derivative Instruments Gain Loss [Line Items] | |||||||||||
(Gain) loss on hedge accounting derivatives | $ (1) | $ 11 | $ 0 |
Other Assets and Other Liabil67
Other Assets and Other Liabilities - Other Assets and Other Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Other assets: | ||
Notes receivable from affiliates | $ 68 | $ 823 |
Used vehicles held for sale | 366 | 264 |
Derivative assets | 61 | 51 |
Other assets | 1,119 | 906 |
Total other assets | 1,614 | 2,044 |
Other liabilities: | ||
Unearned insurance premiums and contract revenues | 2,271 | 2,154 |
Accounts payable and accrued expenses | 1,054 | 1,057 |
Deferred income | 468 | 468 |
Income taxes payable | 2 | 62 |
Derivative liabilities | 6 | 46 |
Other liabilities | 186 | 165 |
Total other liabilities | $ 3,987 | $ 3,952 |
Debt - Debt and Related Weighte
Debt - Debt and Related Weighted Average Contractual Interest Rates (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 27,313 | $ 26,632 |
Debt | $ 98,353 | $ 98,233 |
Weighted average contractual interest rates | 2.04% | 1.60% |
Unsecured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 57,402 | $ 57,282 |
Weighted average contractual interest rates | 2.18% | 1.91% |
Secured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 13,638 | $ 14,319 |
Weighted average contractual interest rates | 1.95% | 1.32% |
Commercial paper [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average contractual interest rates | 1.80% | 1.11% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | ||
Debt instrument, unamortized premiums, discounts and debt issuance costs | $ 353 | $ 307 |
Commercial paper [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 27,400 | 26,700 |
Commercial paper average remaining maturity period | 70 days | |
Unsecured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 57,600 | 57,400 |
Debt maturity year | 2,047 | |
Debt denominated in foreign currency | $ 13,300 | $ 13,300 |
Unsecured notes and loans payable [Member] | Floating and Fixed Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual interest rate | 0.00% | 0.00% |
Unsecured notes and loans payable [Member] | Floating and Fixed Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual interest rate | 5.00% | 5.80% |
Secured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 13,700 | $ 14,300 |
Debt maturity year | 2,047 | |
Secured notes and loans payable [Member] | Floating and Fixed Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual interest rate | 1.10% | 0.80% |
Secured notes and loans payable [Member] | Floating and Fixed Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual interest rate | 2.50% | 2.10% |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Scheduled maturities due in the fiscal years ending: | ||
2,019 | $ 50,535 | |
2,020 | 13,347 | |
2,021 | 9,981 | |
2,022 | 11,434 | |
2,023 | 8,587 | |
Thereafter | 4,816 | |
Unamortized discounts, costs and carrying value adjustment | (347) | |
Total debt | $ 98,353 | $ 98,233 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Assets and Liabilities related to Variable Interest Entities Securitization Transactions (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Restricted Cash | $ 1,219 | $ 1,087 |
Net Securitized Assets | 69,647 | 68,462 |
Other Assets | 1,614 | 2,044 |
Debt | 98,353 | 98,233 |
Other liabilities | 3,987 | 3,952 |
Other assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted Cash | 1,026 | 1,067 |
Gross Securitized Assets | 19,999 | 19,573 |
Net Securitized Assets | 17,633 | 17,753 |
Other Assets | 125 | 87 |
Other liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 13,638 | 14,319 |
Other liabilities | 10 | 6 |
Retail Finance Receivables [Member] | Other assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted Cash | 729 | 856 |
Gross Securitized Assets | 12,130 | 13,071 |
Net Securitized Assets | 11,927 | 12,865 |
Other Assets | 7 | 7 |
Retail Finance Receivables [Member] | Other liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 9,958 | 11,017 |
Other liabilities | 7 | 5 |
Investments In Operating Leases, Net [Member] | Other assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted Cash | 297 | 211 |
Gross Securitized Assets | 7,869 | 6,502 |
Net Securitized Assets | 5,706 | 4,888 |
Other Assets | 118 | 80 |
Investments In Operating Leases, Net [Member] | Other liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 3,680 | 3,302 |
Other liabilities | $ 3 | $ 1 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract] | ||
Securities retained by TMCC | $ 1,520 | $ 1,526 |
Liquidity Facilities and Lett73
Liquidity Facilities and Letters of Credit - Additional Information (Details) - USD ($) | 1 Months Ended | ||
Nov. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
364 Day Credit Agreement Expiring 2019 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Initiation date | Nov. 30, 2017 | ||
Maximum borrowing capacity | $ 5,000,000,000 | ||
Credit facilities amount outstanding | $ 0 | ||
Three Year Agreement Expiring 2021 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Initiation date | Nov. 30, 2017 | ||
Maximum borrowing capacity | $ 5,000,000,000 | ||
Credit facilities amount outstanding | 0 | ||
Five Year Agreement Expiring 2023 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Initiation date | Nov. 30, 2017 | ||
Maximum borrowing capacity | $ 5,000,000,000 | ||
Credit facilities amount outstanding | 0 | ||
Total Committed Bank Credit Facilities [Member] | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 5,500,000,000 | ||
Committed Bank Credit Facility Expiring 2019 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,400,000,000 | ||
Credit facilities amount outstanding | 0 | $ 0 | |
Committed Bank Credit Facility Expiring 2020 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 450,000,000 | ||
Credit facilities amount outstanding | 0 | 0 | |
Committed Bank Credit Facility Expiring 2021 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,600,000,000 | ||
Credit facilities amount outstanding | $ 0 | $ 0 |
Pension and Other Benefits Pl74
Pension and Other Benefits Plans - Additional Information (Details) - TMNA [Member] | 12 Months Ended |
Mar. 31, 2018 | |
Defined Contribution Plan [Member] | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |
Vesting period | 4 years |
Annual minimum contribution percentage by employee | 1.00% |
Annual maximum contribution percentage by employee | 30.00% |
Employer matching contribution percentage | 66.67% |
Employer matching contribution of contribution percentage per employee | 6.00% |
Maximum annual employer contribution percentage per employee | 4.00% |
Employees contribution vested percentage | 100.00% |
Employer matching contribution, annual vesting percentage | 25.00% |
Defined Benefit Plan [Member] | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |
Vesting period | 5 years |
Maximum employee credited service years | 25 years |
Highest average compensation consecutive number of months | 60 months |
The last applicable months of employment | 120 months |
Other Post-employment Benefits [Member] | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |
Vesting period | 10 years |
Employee minimum age eligibility for post employment benefits | 55 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - 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 Tax Disclosure [Line Items] | |||||
Provision for income taxes at U.S. federal statutory tax rate | 21.00% | 35.00% | 31.60% | 35.00% | 35.00% |
Income tax benefit attributable to revaluation of net deferred tax liabilities | $ 2,900,000,000 | ||||
Provisional deemed repatriation tax | 10,000,000 | ||||
Deferred Tax Assets, Tax Credit Carryforwards, Federal and State | $ 8,000,000 | 8,000,000 | $ 0 | ||
Deferred tax asset for foreign tax credit carryforward | 10,000,000 | 10,000,000 | |||
Valuation Allowance | 29,000,000 | 29,000,000 | 21,000,000 | ||
Unremitted earnings in foreign subsidiary | 223,000,000 | 223,000,000 | 220,000,000 | ||
Income Tax Penalties Accrued | 0 | 0 | 0 | $ 0 | |
Federal [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Operating Loss Carryforwards | 857,000,000 | $ 857,000,000 | 0 | ||
Expiration Dates | Mar. 31, 2028 | ||||
State [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Operating Loss Carryforwards | $ 109,000,000 | $ 109,000,000 | $ 59,000,000 | ||
Expiration Dates | Mar. 31, 2020 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - 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 | |
Current | |||||||||||
Federal | $ (45) | $ 136 | $ 73 | ||||||||
State | (10) | 2 | (33) | ||||||||
Foreign | 3 | 7 | 9 | ||||||||
Total | (52) | 145 | 49 | ||||||||
Deferred | |||||||||||
Federal | (2,625) | (9) | 420 | ||||||||
State | 48 | 5 | 111 | ||||||||
Foreign | 0 | 1 | 0 | ||||||||
Total | (2,577) | (3) | 531 | ||||||||
(Benefit) provision for income taxes | $ 26 | $ (2,821) | $ 70 | $ 96 | $ (70) | $ (29) | $ 95 | $ 146 | $ (2,629) | $ 142 | $ 580 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between U.S. Federal Statutory Tax Rate and Effective Tax Rate (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciliation Between U.S. Federal Statutory Tax Rate and Effective Tax Rate | |||||
Provision for income taxes at U.S. federal statutory tax rate | 21.00% | 35.00% | 31.60% | 35.00% | 35.00% |
State and local taxes (net of federal tax benefit) | 4.80% | 3.60% | 3.20% | ||
Revaluation of federal deferred tax liability from TCJA | (371.60%) | 0.00% | 0.00% | ||
Other, net | (1.40%) | (3.90%) | 0.20% | ||
Effective tax rate | (336.60%) | 34.70% | 38.40% |
Income Taxes - Reconciliation78
Income Taxes - Reconciliation Between U.S. Federal Statutory Tax Rate and Effective Tax Rate (Parenthetical) (Details) | 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 Tax Disclosure [Abstract] | |||||
Provision for income taxes at U.S. federal statutory tax rate | 21.00% | 35.00% | 31.60% | 35.00% | 35.00% |
Income Taxes - Deferred Tax Lia
Income Taxes - Deferred Tax Liabilities and Assets (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Liabilities: | ||
Lease transactions | $ 5,642 | $ 7,647 |
State taxes, net of federal tax benefit | 856 | 640 |
Mark-to-market of investments in marketable securities and derivatives | 185 | 267 |
Other | 244 | 383 |
Deferred tax liabilities | 6,927 | 8,937 |
Assets: | ||
Provision for credit and residual value losses | 420 | 593 |
Deferred costs and fees | 186 | 306 |
Net operating loss and tax credit carryforwards | 993 | 67 |
Other | 31 | 66 |
Deferred tax assets | 1,630 | 1,032 |
Valuation allowance | (29) | (21) |
Net deferred tax assets | 1,601 | 1,011 |
Net deferred income tax liability | $ 5,326 | $ 7,926 |
Income Taxes - Deferred Tax L80
Income Taxes - Deferred Tax Liabilities and Assets (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets attributable to unrealized gains or losses included in accumulated other comprehensive income or loss, deferred tax liabilities | $ 7 | $ 15 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments and Guarantees (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Commitments: | ||
Credit facilities commitments with dealers | $ 1,286 | $ 1,199 |
Minimum lease commitments | 162 | 59 |
Total commitments | 1,448 | 1,258 |
Total commitments and guarantees | 1,548 | 1,358 |
Performance Guarantee [Member] | Putnam and Gibson Counties [Member] | ||
Commitments: | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | $ 100 | $ 100 |
Commitments and Contingencies82
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Commitments And Contingencies [Line Items] | |||
Minimum lease commitments | $ 162,000,000 | $ 59,000,000 | |
Indemnification provisions | 0 | 0 | |
Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantees of affiliate pollution control and solid waste disposal bonds | 100,000,000 | 100,000,000 | |
Facility Relocation [Member] | |||
Commitments And Contingencies [Line Items] | |||
Relocation costs for employees and other relocation expenses | 114,000,000 | ||
Relocation costs for employees and other relocation expenses incurred to date | 105,000,000 | ||
Relocation costs incurred during the period | $ 43,000,000 | 43,000,000 | $ 15,000,000 |
TMNA [Member] | |||
Commitments And Contingencies [Line Items] | |||
15-year lease agreement between TMCC and TMNA | 15 years | ||
Lease agreement expiration date | Aug. 31, 2032 | ||
Total rental expense, including payments to affiliates | $ 30,000,000 | 27,000,000 | $ 25,000,000 |
TMCC-affiliated companies [Member] | |||
Commitments And Contingencies [Line Items] | |||
Minimum lease commitments | 105,000,000 | $ 10,000,000 | |
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantees of affiliate pollution control and solid waste disposal bonds | 100,000,000 | ||
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2028 [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantees of affiliate pollution control and solid waste disposal bonds | 20,000,000 | ||
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2029 [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantees of affiliate pollution control and solid waste disposal bonds | 50,000,000 | ||
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2030 [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantees of affiliate pollution control and solid waste disposal bonds | 10,000,000 | ||
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2031 [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantees of affiliate pollution control and solid waste disposal bonds | 10,000,000 | ||
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2032 [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantees of affiliate pollution control and solid waste disposal bonds | 10,000,000 | ||
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Affiliate Pollution Control and Solid Waste Disposal Bonds [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantee Fee | $ 78,000 |
Commitments and Contingencies83
Commitments and Contingencies - Future Minimum Lease Payments under Non-cancelable Operating Leases (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Future minimum lease payments under non-cancelable operating leases | ||
2,019 | $ 24 | |
2,020 | 21 | |
2,021 | 17 | |
2,022 | 18 | |
2,023 | 12 | |
Thereafter | 70 | |
Total | $ 162 | $ 59 |
Related Party Transactions - Re
Related Party Transactions - Related Party Transactions Included in Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 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 | |
Total financing revenues: | |||||||||||
Manufacturers’ subvention and other revenues | $ 1,602 | $ 1,374 | $ 1,315 | ||||||||
Interest expense: | |||||||||||
Credit support fees incurred | 94 | 92 | 91 | ||||||||
Interest and other expenses | 1 | 3 | 4 | ||||||||
Insurance earned premiums and contract revenues: | |||||||||||
Insurance premiums and contract revenues | $ 225 | $ 220 | $ 221 | $ 216 | $ 210 | $ 202 | $ 199 | $ 193 | 882 | 804 | 719 |
Investment and other income, net: | |||||||||||
Gain on sale of commercial finance business | 0 | 0 | 197 | ||||||||
Expenses: | |||||||||||
Operating and administrative | $ 384 | $ 323 | $ 337 | $ 313 | $ 356 | $ 325 | $ 317 | $ 279 | 1,357 | 1,277 | 1,161 |
TMCC-affiliated companies [Member] | |||||||||||
Insurance earned premiums and contract revenues: | |||||||||||
Insurance premiums and contract revenues | 182 | 149 | 132 | ||||||||
Investment and other income, net: | |||||||||||
Interest and other income | 13 | 9 | 8 | ||||||||
Expenses: | |||||||||||
Operating and administrative | 80 | 73 | 81 | ||||||||
Insurance losses and loss adjustment expenses | $ (3) | $ 0 | $ 0 |
Related Party Transactions - 85
Related Party Transactions - Related Party Transactions Included in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Cash and cash equivalents | ||||
Cash and cash equivalents | $ 3,540 | $ 4,198 | $ 2,701 | $ 2,407 |
Finance receivables, net | ||||
Accounts receivable | 191 | 138 | ||
Deferred retail subvention income | (1,279) | (967) | ||
Investments in operating leases, net | ||||
Investments in operating leases, net | 38,697 | 38,152 | ||
Deferred lease subvention income | (1,682) | (1,174) | ||
Other assets | ||||
Notes receivable from affiliates | 68 | 823 | ||
Other receivables, net | 310 | 202 | ||
Other liabilities | ||||
Unearned insurance premiums and contract revenues | 2,271 | 2,154 | ||
Other payables, net | 74 | 74 | ||
Notes payable | 18 | 13 | ||
Commercial paper [Member] | ||||
Cash and cash equivalents | ||||
Cash and cash equivalents | 255 | 0 | ||
TMCC-affiliated companies [Member] | ||||
Investments in marketable securities | ||||
Commercial paper | 52 | 0 | ||
Investments in operating leases, net | ||||
Investments in operating leases, net | 6 | 4 | ||
Other liabilities | ||||
Unearned insurance premiums and contract revenues | $ 328 | $ 332 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | |
TMNA [Member] | |||
Related Party Transaction [Line Items] | |||
Subvention support receivable | $ 279,000,000 | $ 165,000,000 | |
Lease agreement expiration date | Aug. 31, 2032 | ||
TMNA [Member] | Operational Support Arrangements [Member] | |||
Related Party Transaction [Line Items] | |||
Lease agreement expiration year | 2,032 | ||
Lease agreement expiration date | Sep. 30, 2018 | ||
TMNA [Member] | Operational Support Arrangements [Member] | Customer Service Center [Member] | |||
Related Party Transaction [Line Items] | |||
Lease agreement expiration year | 2,019 | ||
TFSC [Member] | |||
Related Party Transaction [Line Items] | |||
Financing support available from affiliates | $ 3,600,000,000 | ||
Financing support available to affiliates | 5,600,000,000 | ||
TFSB [Member] | |||
Related Party Transaction [Line Items] | |||
Credit card reward program cost | $ 0 | ||
TFSB [Member] | Residential Mortgage [Member] | Other Financing Support Arrangements [Member] | |||
Related Party Transaction [Line Items] | |||
Annual maximum participation | 60,000,000 | ||
Loans purchased | $ 30,000,000 | $ 33,000,000 | |
TMIS [Member] | Operational Support Arrangements [Member] | |||
Related Party Transaction [Line Items] | |||
Risk ceded to reinsurers | 99.00% |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information by Segment (Details) - 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 | |
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | $ 2,766 | $ 2,706 | $ 2,647 | $ 2,598 | $ 2,555 | $ 2,537 | $ 2,496 | $ 2,458 | $ 10,717 | $ 10,046 | $ 9,403 |
Depreciation on operating leases | 1,863 | 1,778 | 1,719 | 1,681 | 1,859 | 1,722 | 1,683 | 1,589 | 7,041 | 6,853 | 5,914 |
Interest expense | 523 | 428 | 452 | 448 | 449 | 701 | 297 | 307 | 1,851 | 1,754 | 1,137 |
Net financing revenues | 380 | 500 | 476 | 469 | 247 | 114 | 516 | 562 | 1,825 | 1,439 | 2,352 |
Insurance earned premiums and contract revenues | 225 | 220 | 221 | 216 | 210 | 202 | 199 | 193 | 882 | 804 | 719 |
Gain on sale of commercial finance business | 0 | 0 | 197 | ||||||||
Investment and other income, net | 51 | 63 | 55 | 47 | 37 | 52 | 42 | 39 | 216 | 170 | 158 |
Realized gains (losses), net on investments in marketable securities | (4) | 3 | 1 | 41 | (14) | 157 | 70 | 13 | 41 | 226 | 6 |
Net financing revenues and other revenues | 652 | 786 | 753 | 773 | 480 | 525 | 827 | 807 | 2,964 | 2,639 | 3,432 |
Expenses: | |||||||||||
Provision for credit losses | 81 | 108 | 127 | 85 | 186 | 183 | 161 | 52 | 401 | 582 | 441 |
Operating and administrative expenses | 384 | 323 | 337 | 313 | 356 | 325 | 317 | 279 | 1,357 | 1,277 | 1,161 |
Insurance losses and loss adjustment expenses | 109 | 100 | 102 | 114 | 99 | 92 | 91 | 89 | 425 | 371 | 318 |
Total expenses | 574 | 531 | 566 | 512 | 641 | 600 | 569 | 420 | 2,183 | 2,230 | 1,920 |
Income before income taxes | 78 | 255 | 187 | 261 | (161) | (75) | 258 | 387 | 781 | 409 | 1,512 |
(Benefit) provision for income taxes | 26 | (2,821) | 70 | 96 | (70) | (29) | 95 | 146 | (2,629) | 142 | 580 |
Net income | 52 | $ 3,076 | $ 117 | $ 165 | (91) | $ (46) | $ 163 | $ 241 | 3,410 | 267 | 932 |
Total assets | 120,546 | 119,635 | 120,546 | 119,635 | 114,592 | ||||||
Intercompany Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | 0 | 0 | 0 | ||||||||
Depreciation on operating leases | 0 | 0 | 0 | ||||||||
Interest expense | (12) | (5) | 0 | ||||||||
Net financing revenues | 12 | 5 | 0 | ||||||||
Insurance earned premiums and contract revenues | 0 | 0 | 0 | ||||||||
Gain on sale of commercial finance business | 0 | ||||||||||
Investment and other income, net | (12) | (5) | 0 | ||||||||
Realized gains (losses), net on investments in marketable securities | 0 | 0 | 0 | ||||||||
Net financing revenues and other revenues | 0 | 0 | 0 | ||||||||
Expenses: | |||||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Operating and administrative expenses | 0 | 0 | 0 | ||||||||
Insurance losses and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Income before income taxes | 0 | 0 | 0 | ||||||||
(Benefit) provision for income taxes | 0 | 0 | 0 | ||||||||
Net income | 0 | 0 | 0 | ||||||||
Total assets | (1,087) | (1,083) | (1,087) | (1,083) | (1,065) | ||||||
Finance Operations [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | 10,717 | 10,046 | 9,403 | ||||||||
Depreciation on operating leases | 7,041 | 6,853 | 5,914 | ||||||||
Interest expense | 1,863 | 1,759 | 1,137 | ||||||||
Net financing revenues | 1,813 | 1,434 | 2,352 | ||||||||
Insurance earned premiums and contract revenues | 0 | 0 | 0 | ||||||||
Gain on sale of commercial finance business | 197 | ||||||||||
Investment and other income, net | 140 | 96 | 59 | ||||||||
Realized gains (losses), net on investments in marketable securities | 0 | 241 | 40 | ||||||||
Net financing revenues and other revenues | 1,953 | 1,771 | 2,648 | ||||||||
Expenses: | |||||||||||
Provision for credit losses | 401 | 582 | 441 | ||||||||
Operating and administrative expenses | 1,028 | 979 | 909 | ||||||||
Insurance losses and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Total expenses | 1,429 | 1,561 | 1,350 | ||||||||
Income before income taxes | 524 | 210 | 1,298 | ||||||||
(Benefit) provision for income taxes | (2,654) | 67 | 501 | ||||||||
Net income | 3,178 | 143 | 797 | ||||||||
Total assets | 116,942 | 116,242 | 116,942 | 116,242 | 111,496 | ||||||
Insurance Operations [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total financing revenues | 0 | 0 | 0 | ||||||||
Depreciation on operating leases | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Net financing revenues | 0 | 0 | 0 | ||||||||
Insurance earned premiums and contract revenues | 882 | 804 | 719 | ||||||||
Gain on sale of commercial finance business | 0 | ||||||||||
Investment and other income, net | 88 | 79 | 99 | ||||||||
Realized gains (losses), net on investments in marketable securities | 41 | (15) | (34) | ||||||||
Net financing revenues and other revenues | 1,011 | 868 | 784 | ||||||||
Expenses: | |||||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Operating and administrative expenses | 329 | 298 | 252 | ||||||||
Insurance losses and loss adjustment expenses | 425 | 371 | 318 | ||||||||
Total expenses | 754 | 669 | 570 | ||||||||
Income before income taxes | 257 | 199 | 214 | ||||||||
(Benefit) provision for income taxes | 25 | 75 | 79 | ||||||||
Net income | 232 | 124 | 135 | ||||||||
Total assets | $ 4,691 | $ 4,476 | $ 4,691 | $ 4,476 | $ 4,161 |
Selected Quarterly Financial 88
Selected Quarterly Financial Data - Selected Quarterly Financial Data (Details) - 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 | |
Financing revenues: | |||||||||||
Operating lease | $ 2,102 | $ 2,068 | $ 2,016 | $ 1,981 | $ 1,958 | $ 1,946 | $ 1,925 | $ 1,891 | $ 8,167 | $ 7,720 | $ 7,141 |
Retail | 512 | 498 | 490 | 474 | 467 | 468 | 459 | 456 | 1,974 | 1,850 | 1,859 |
Dealer | 152 | 140 | 141 | 143 | 130 | 123 | 112 | 111 | 576 | 476 | 403 |
Total financing revenues | 2,766 | 2,706 | 2,647 | 2,598 | 2,555 | 2,537 | 2,496 | 2,458 | 10,717 | 10,046 | 9,403 |
Depreciation on operating leases | 1,863 | 1,778 | 1,719 | 1,681 | 1,859 | 1,722 | 1,683 | 1,589 | 7,041 | 6,853 | 5,914 |
Interest expense | 523 | 428 | 452 | 448 | 449 | 701 | 297 | 307 | 1,851 | 1,754 | 1,137 |
Net financing revenues | 380 | 500 | 476 | 469 | 247 | 114 | 516 | 562 | 1,825 | 1,439 | 2,352 |
Insurance earned premiums and contract revenues | 225 | 220 | 221 | 216 | 210 | 202 | 199 | 193 | 882 | 804 | 719 |
Investment and other income, net | 51 | 63 | 55 | 47 | 37 | 52 | 42 | 39 | 216 | 170 | 158 |
Realized gains (losses), net on investments in marketable securities | (4) | 3 | 1 | 41 | (14) | 157 | 70 | 13 | 41 | 226 | 6 |
Net financing revenues and other revenues | 652 | 786 | 753 | 773 | 480 | 525 | 827 | 807 | 2,964 | 2,639 | 3,432 |
Expenses: | |||||||||||
Provision for credit losses | 81 | 108 | 127 | 85 | 186 | 183 | 161 | 52 | 401 | 582 | 441 |
Operating and administrative | 384 | 323 | 337 | 313 | 356 | 325 | 317 | 279 | 1,357 | 1,277 | 1,161 |
Insurance losses and loss adjustment expenses | 109 | 100 | 102 | 114 | 99 | 92 | 91 | 89 | 425 | 371 | 318 |
Total expenses | 574 | 531 | 566 | 512 | 641 | 600 | 569 | 420 | 2,183 | 2,230 | 1,920 |
Income before income taxes | 78 | 255 | 187 | 261 | (161) | (75) | 258 | 387 | 781 | 409 | 1,512 |
Provision (benefit) for income taxes | 26 | (2,821) | 70 | 96 | (70) | (29) | 95 | 146 | (2,629) | 142 | 580 |
Net income | $ 52 | $ 3,076 | $ 117 | $ 165 | $ (91) | $ (46) | $ 163 | $ 241 | $ 3,410 | $ 267 | $ 932 |