Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2021 | Jan. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2021 | |
Amendment Flag | false | |
Entity Registrant Name | TOYOTA MOTOR CREDIT CORPORATION | |
Entity Central Index Key | 0000834071 | |
Current Fiscal Year End Date | --03-31 | |
Trading Symbol | TM/28 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock Shares Outstanding | 91,500 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-9961 | |
Entity Tax Identification Number | 95-3775816 | |
Entity Address, Address Line One | 6565 Headquarters Drive | |
Entity Address, City or Town | Plano | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75024 | |
City Area Code | 469 | |
Local Phone Number | 486-9300 | |
Entity Incorporation, State or Country Code | CA | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Medium-Term Notes, Series BStated Maturity Date January 11, 2028 | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing revenues: | ||||
Operating lease | $ 2,081 | $ 2,122 | $ 6,329 | $ 6,365 |
Retail | 830 | 749 | 2,442 | 2,144 |
Dealer | 80 | 103 | 251 | 312 |
Total financing revenues | 2,991 | 2,974 | 9,022 | 8,821 |
Depreciation on operating leases | 1,460 | 1,450 | 4,400 | 4,484 |
Interest expense | 346 | 491 | 1,055 | 1,534 |
Net financing revenues | 1,185 | 1,033 | 3,567 | 2,803 |
Voluntary protection contract revenues and insurance earned premiums | 255 | 241 | 758 | 714 |
Investment and other income, net | 76 | 179 | 239 | 445 |
Net financing revenues and other revenues | 1,516 | 1,453 | 4,564 | 3,962 |
Expenses: | ||||
Provision for credit losses | 45 | 118 | 110 | 366 |
Operating and administrative | 394 | 354 | 1,163 | 1,088 |
Voluntary protection contract expenses and insurance losses | 96 | 98 | 303 | 265 |
Total expenses | 535 | 570 | 1,576 | 1,719 |
Income before income taxes | 981 | 883 | 2,988 | 2,243 |
Provision for income taxes | 233 | 215 | 697 | 546 |
Net income | $ 748 | $ 668 | $ 2,291 | $ 1,697 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 748 | $ 668 | $ 2,291 | $ 1,697 |
Other comprehensive income, net of tax | ||||
Net unrealized (losses) gains on available-for-sale marketable securities [net of tax benefit (provision) of $1, $0, ($1) and ($6), respectively] | (3) | 2 | 4 | 26 |
Reclassification adjustment for net gains on available-for-sale marketable securities included in investment and other income, net [net of tax provision of $0, $0, $0 and $4, respectively] | (1) | (2) | (1) | (15) |
Other comprehensive (loss) income | (4) | 0 | 3 | 11 |
Comprehensive income | $ 744 | $ 668 | $ 2,294 | $ 1,708 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net unrealized (losses) gains on available-for-sale marketable securities, tax provision | $ 1 | $ 0 | $ (1) | $ (6) |
Reclassification adjustment for net gains on available-for-sale marketable securities included in investment and other income, tax provision | $ 0 | $ 0 | $ 0 | $ 4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 8,431 | $ 8,195 |
Restricted cash and cash equivalents | 2,372 | 1,957 |
Investments in marketable securities | 5,121 | 4,820 |
Finance receivables, net of allowance for credit losses of $1,185 and $1,178 | 80,925 | 79,192 |
Investments in operating leases, net | 36,836 | 37,091 |
Other assets | 2,450 | 2,473 |
Total assets | 136,135 | 133,728 |
LIABILITIES AND SHAREHOLDER’S EQUITY | ||
Debt | 110,122 | 109,725 |
Deferred income taxes | 2,399 | 2,860 |
Other liabilities | 5,725 | 5,548 |
Total liabilities | 118,246 | 118,133 |
Commitments and contingencies (Refer to Note 9) | ||
Shareholder’s equity: | ||
Capital stock, no par value (100,000 shares authorized; 91,500 issued and outstanding) at December 31, 2021 and March 31, 2021 | 915 | 915 |
Additional paid-in capital | 2 | 2 |
Accumulated other comprehensive income | 11 | 8 |
Retained earnings | 16,961 | 14,670 |
Total shareholder's equity | 17,889 | 15,595 |
Total liabilities and shareholder's equity | $ 136,135 | $ 133,728 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Finance receivables, allowance for credit losses | $ 1,185 | $ 1,178 |
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 | Dec. 31, 2021 | Mar. 31, 2021 |
ASSETS | ||
Finance receivables, net | $ 80,925 | $ 79,192 |
Investments in operating leases, net | 36,836 | 37,091 |
Other assets | 2,450 | 2,473 |
Total assets | 136,135 | 133,728 |
LIABILITIES | ||
Debt | 110,122 | 109,725 |
Other liabilities | 5,725 | 5,548 |
Total liabilities | 118,246 | 118,133 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Finance receivables, net | 21,637 | 21,745 |
Investments in operating leases, net | 12,434 | 6,599 |
Other assets | 73 | 89 |
Total assets | 34,144 | 28,433 |
LIABILITIES | ||
Debt | 28,068 | 24,212 |
Other liabilities | 10 | 14 |
Total liabilities | $ 28,078 | $ 24,226 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Millions | Total | Cumulative Effect Period of Adoption Adjustment | Capital stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Retained earningsCumulative Effect Period of Adoption Adjustment |
Balance at Mar. 31, 2020 | $ 14,503 | $ 915 | $ 2 | $ 15 | $ 13,571 | ||
Balance (ASU 2016-13) at Mar. 31, 2020 | $ (218) | $ (218) | |||||
Net income | 1,697 | 0 | 0 | 0 | 1,697 | ||
Other comprehensive income (loss), net of tax | 11 | 0 | 0 | 11 | 0 | ||
Balance at Dec. 31, 2020 | 15,993 | 915 | 2 | 26 | 15,050 | ||
Balance at Sep. 30, 2020 | 15,325 | 915 | 2 | 26 | 14,382 | ||
Net income | 668 | 0 | 0 | 0 | 668 | ||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 0 | ||
Balance at Dec. 31, 2020 | 15,993 | 915 | 2 | 26 | 15,050 | ||
Balance at Mar. 31, 2021 | 15,595 | 915 | 2 | 8 | 14,670 | ||
Net income | 2,291 | 0 | 0 | 0 | 2,291 | ||
Other comprehensive income (loss), net of tax | 3 | 0 | 0 | 3 | 0 | ||
Balance at Dec. 31, 2021 | 17,889 | 915 | 2 | 11 | 16,961 | ||
Balance at Sep. 30, 2021 | 17,145 | 915 | 2 | 15 | 16,213 | ||
Net income | 748 | 0 | 0 | 0 | 748 | ||
Other comprehensive income (loss), net of tax | (4) | 0 | 0 | (4) | 0 | ||
Balance at Dec. 31, 2021 | $ 17,889 | $ 915 | $ 2 | $ 11 | $ 16,961 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 2,291 | $ 1,697 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,489 | 4,572 |
Recognition of deferred income | (1,841) | (1,864) |
Provision for credit losses | 110 | 366 |
Amortization of deferred costs | 743 | 572 |
Foreign currency and other adjustments to the carrying value of financial instruments, net | (164) | 1,806 |
Net gains from investments in marketable securities | (108) | (222) |
Net change in: | ||
Derivative assets | (9) | (9) |
Other assets and accrued interest | (421) | 140 |
Deferred income taxes | (462) | (1,797) |
Derivative liabilities | (1) | (21) |
Other liabilities | 150 | 993 |
Net cash provided by operating activities | 4,777 | 6,233 |
Cash flows from investing activities: | ||
Purchase of investments in marketable securities | (1,780) | (1,862) |
Proceeds from sales of investments in marketable securities | 1,284 | 405 |
Proceeds from maturities of investments in marketable securities | 296 | 916 |
Acquisition of finance receivables | (30,681) | (29,164) |
Collection of finance receivables | 25,604 | 20,390 |
Net change in wholesale and certain working capital receivables | 3,370 | 3,261 |
Acquisition of investments in operating leases | (12,293) | (11,777) |
Disposals of investments in operating leases | 9,435 | 8,570 |
Long term loans to affiliates | (200) | (200) |
Payments on long term loans from affiliates | 300 | 406 |
Other, net | (39) | (48) |
Net cash used in investing activities | (4,704) | (9,103) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 29,270 | 38,669 |
Payments on debt | (29,246) | (21,909) |
Net change in commercial paper and other short-term financing | 537 | (7,334) |
Payment on loan from affiliate | 0 | (3,000) |
Net change in financing support provided by affiliates | 17 | (17) |
Net cash provided by financing activities | 578 | 6,409 |
Net increase in cash and cash equivalents and restricted cash and cash equivalents | 651 | 3,539 |
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period | 10,152 | 8,529 |
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period | 10,803 | 12,068 |
Supplemental disclosures: | ||
Interest paid, net | 1,310 | 1,909 |
Income taxes paid, net | $ 1,296 | $ 1,177 |
Interim Financial Data
Interim Financial Data | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Interim Financial Data | Note 1 – Interim Financial Data Basis of Presentation The information furnished in these unaudited interim consolidated financial statements as of and for the three and nine months ended December 31, 2021 and 2020 has been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). In the opinion of management, the unaudited consolidated financial information reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The results of operations for the three and nine months ended December 31, 2021 do not necessarily indicate the results which may be expected for the full fiscal year ending March 31, 2022 (“fiscal 2022”). These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in Toyota Motor Credit Corporation’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended March 31, 2021 (“fiscal 2021”), which was filed with the Securities and Exchange Commission on June 3, 2021. References herein to “TMCC” denote Toyota Motor Credit Corporation, and references herein to “we”, “our”, and “us” denote Toyota Motor Credit Corporation and its consolidated subsidiaries. Other Matters In fiscal 2021, TMCC began providing private label financial services to third-party automotive and mobility companies commencing with the provision of services to Mazda Motor of America, Inc. (“Mazda”). We are currently leveraging our existing processes and personnel to originate and service the new assets; however, we will continue to evaluate the private label financial services business, which includes partnering with or transitioning a portion of the business to our affiliates, some of which are not consolidated with TMCC. We have also made certain technology investments to support the Mazda program and future private label customers. On November 19, 2021, TMCC announced, in furtherance of its private label financial services initiative for third party automotive and mobility companies, that we entered into a nonbinding letter of intent with Great American Outdoors Group LLC, the parent company of Bass Pro Shops, Cabela’s and the White River Marine Group (“Bass Pro Shops”) to provide private label financial services for Bass Pro Shop’s boats, all-terrain vehicle products, and other mobility products. The Company expects to provide inventory financing for Bass Pro Shops, its affiliates, and authorized independent dealers, starting in fiscal 2023, with additional private label services, including consumer financing and voluntary protection products and services, to be added over time. Recently Adopted Accounting Guidance On April 1, 2021, we adopted the following new accounting standards: We adopted Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, We adopted ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs Accounting Guidance Issued But Not Yet Adopted In July 2021, the FASB issued ASU 2021-05, Lessors-Certain Leases with Variable Lease Payments (Topic 842) |
Investments in Marketable Secur
Investments in Marketable Securities | 9 Months Ended |
Dec. 31, 2021 | |
Marketable Securities [Abstract] | |
Investments in Marketable Securities | Note 2 – Investments in Marketable Securities Investments in marketable securities consist of debt securities and equity investments. We classify all of our debt securities as available-for-sale (“AFS”). Except when fair value option is elected, AFS debt securities are recorded at fair value with unrealized gains or losses included in accumulated other comprehensive income (“AOCI”), net of applicable taxes. All equity investments are recorded at fair value with changes in fair value included in Investment and other income, net in our Consolidated Statements of Income. In fiscal 2022, we have elected the fair value option for certain debt securities held within one of our affiliate investment portfolios for operational ease given the size and composition of this portfolio. All debt securities within this specific portfolio are recorded at fair value with changes in fair value included in Investment and other income, net in our Consolidated Statements of Income. We estimate the fair value of these securities using observed transaction prices, independent third-party pricing valuation vendors, and internal valuation models. AFS debt securities for which fair value option is elected are not subject to credit loss impairment. As of December 31, 2021, we held AFS debt securities for which fair value option was elected of $703 million. The difference between the aggregate fair value and the aggregate unpaid principal balance of long-term AFS debt securities for which the fair value option was elected was not significant. Investments in marketable securities consisted of the following: December 31, 2021 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 491 $ 5 $ (6 ) $ 490 Foreign government and agency obligations 32 - (1 ) 31 Municipal debt securities 9 2 - 11 Commercial paper 25 - - 25 Corporate debt securities 589 15 (3 ) 601 Mortgage-backed securities: U.S. government agency 21 1 - 22 Non-agency residential 11 - - 11 Non-agency commercial 75 2 (1 ) 76 Asset-backed securities 86 3 (1 ) 88 Total available-for-sale debt securities $ 1,339 $ 28 $ (12 ) $ 1,355 Equity investments 3,766 Total investments in marketable securities $ 5,121 March 31, 2021 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 217 $ 4 $ (10 ) $ 211 Municipal debt securities 8 2 - 10 Commercial paper 196 - - 196 Corporate debt securities 177 12 (2 ) 187 Mortgage-backed securities: U.S. government agency 31 1 - 32 Non-agency residential 1 - - 1 Non-agency commercial 47 2 (2 ) 47 Asset-backed securities 49 3 - 52 Total available-for-sale debt securities $ 726 $ 24 $ (14 ) $ 736 Equity investments 4,084 Total investments in marketable securities $ 4,820 Note 2 – Investments in Marketable Securities (Continued) A portion of our equity investments are investments in funds that are privately placed and managed by an open-end investment management company (the “Trust”). If we elect to redeem shares, the Trust will normally redeem all shares for cash, but may, in unusual circumstances, redeem amounts exceeding the lesser of $250 thousand or 1 percent of the Trust’s asset value by payment in kind of securities held by the respective fund during any 90-day period. We also invest in actively traded open-end mutual funds. Redemptions are subject to normal terms and conditions as described in each fund’s prospectus. For the nine months ended December 31, 2021, non-cash investing activities related to in-kind redemptions and subsequent purchases amounted to $1.1 billion. There were no non-cash investing activities related to in-kind redemptions for the three months ended December 31, 2021. Unrealized Losses on Securities Available-for-sale debt securities in a continuous loss position for less than twelve months and greater than twelve months were not significant as of December 31, 2021 and March 31, 2021. An allowance for credit losses is established when it is determined that a credit loss has occurred. As of December 31, 2021, management determined that credit losses did not exist for securities in an unrealized loss position. This analysis considered a variety of factors including, but not limited to, performance indicators of the issuer, default rates, industry analyst reports, credit ratings, and other relevant information, which indicated that contractual cash flows are expected to occur. Gains and Losses on Securities The following table represents gains and losses on our investments in marketable securities presented in our Consolidated Statements of Income: Three months ended Nine months ended December 31, December 31, 2021 2020 2021 2020 Available-for-sale debt securities: Unrealized (losses) gains on securities for which the fair value option was elected $ (4 ) $ - $ 3 $ - Realized (losses) gains $ (1 ) $ 2 $ (1 ) $ 19 Equity investments: Unrealized gains $ 26 $ 49 $ 84 $ 188 Realized gains on sales $ - $ 3 $ 22 $ 15 Contractual Maturities The amortized cost and fair value by contractual maturities of available-for-sale debt securities are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations. December 31, 2021 Amortized c Fair value Available-for-sale debt securities: Due within 1 year $ 127 $ 127 Due after 1 year through 5 years 372 375 Due after 5 years through 10 years 357 359 Due after 10 years 290 297 Mortgage-backed and asset-backed securities 1 193 197 Total $ 1,339 $ 1,355 1 |
Finance Receivables, Net
Finance Receivables, Net | 9 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Finance Receivables, Net | Note 3 – Finance Receivables, Net Finance receivables, net consists of the retail loan and dealer products portfolio segments, and includes deferred origination costs, deferred income, and allowance for credit losses. Finance receivables, net also includes securitized retail receivables, which represent retail receivables that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements, as discussed further in Note 8 – Variable Interest Entities. Cash flows from these securitized retail receivables are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. Finance receivables, net consisted of the following: December 31, March 31, 2021 2021 Retail receivables 1 $ 71,727 $ 66,991 Dealer financing 10,254 13,642 81,981 80,633 Deferred origination costs 1,305 1,145 Deferred income (1,176 ) (1,408 ) Allowance for credit losses Retail receivables (1,140 ) (1,075 ) Dealer financing (45 ) (103 ) Total allowance for credit losses (1,185 ) (1,178 ) Finance receivables, net $ 80,925 $ 79,192 1 Accrued interest related to finance receivables is presented in Other assets on the Consolidated Balance Sheets and was $214 million and $187 million at December 31, 2021 and March 31, 2021, respectively. Note 3 – Finance Receivables, Net (Continued) Credit Quality Indicators We are exposed to credit risk on our finance receivables. Credit risk is the risk of loss arising from the failure of customers or dealers to meet the terms of their contracts with us or otherwise fail to perform as agreed. Retail Loan Portfolio Segment The retail loan portfolio segment consists of one class of finance receivables. While we use various credit quality metrics to develop our allowance for credit losses on the retail loan portfolio segment, we primarily utilize the aging of the individual accounts to monitor the credit quality of these finance receivables. Based on our experience, the payment status of borrowers is the strongest indicator of the credit quality of the underlying receivables. Payment status also impacts charge-offs. Individual borrower accounts within the retail loan portfolio segment are segregated into aging categories based on the number of days past due. The aging of finance receivables is updated monthly. The following tables present the amortized cost basis of our retail loan portfolio by origination fiscal year by credit quality indicator based on number of days past due: Amortized Cost Basis by Origination Fiscal Year at December 31, 2021 2022 2021 2020 2019 2018 2017 and Prior Total Aging of finance receivables: Current $ 25,098 $ 24,373 $ 10,913 $ 5,626 $ 3,390 $ 1,057 $ 70,457 30-59 days past due 215 341 177 119 81 52 985 60-89 days past due 54 97 49 36 22 16 274 90 days or greater past due 29 51 23 15 11 11 140 Total $ 25,396 $ 24,862 $ 11,162 $ 5,796 $ 3,504 $ 1,136 $ 71,856 Amortized Cost Basis by Origination Fiscal Year at March 31, 2021 2021 2020 2019 2018 2017 2016 and Prior Total Aging of finance receivables: Current $ 32,026 $ 16,047 $ 8,972 $ 5,977 $ 2,435 $ 496 $ 65,953 30-59 days past due 147 145 114 83 46 27 562 60-89 days past due 37 39 28 21 11 8 144 90 days or greater past due 18 18 13 9 5 6 69 Total $ 32,228 $ 16,249 $ 9,127 $ 6,090 $ 2,497 $ 537 $ 66,728 The amortized cost of retail loan portfolio excludes accrued interest of $193 million and $160 million at December 31, 2021 and March 31, 2021 Note 3 – Finance Receivables, Net (Continued) Dealer Products Portfolio Segment The dealer products portfolio segment consists of three classes of finance receivables: wholesale, real estate and working capital. All loans outstanding for an individual dealer or dealer group, which includes affiliated entities, are aggregated and evaluated collectively by dealer or dealer group. This reflects the interconnected nature of financing provided to our individual dealer and dealer group customers, and their affiliated entities. When assessing the credit quality of the finance receivables within the dealer products portfolio segment, we segregate the finance receivables account balances into four categories representing distinct credit quality indicators based on internal risk assessments. The internal risk assessments for all finance receivables within the dealer products portfolio segment are updated on a monthly basis. The four credit quality indicators are: • Performing – Account not classified as either Credit Watch, At Risk or Default; • Credit Watch – Account designated for elevated attention; • At Risk – Account where there is an increased likelihood that default may exist based on qualitative and quantitative factors; and • Default – Account is not currently meeting contractual obligations or we have temporarily waived certain contractual requirements. The following tables present the amortized cost basis of our dealer products portfolio by credit quality indicator based on internal risk assessments by origination fiscal year: Amortized Cost Basis by Origination Fiscal Year at December 31, 2021 2022 2021 2020 2019 2018 2017 and Prior Revolving loans Total Wholesale Performing $ - $ - $ - $ - $ - $ - $ 2,852 $ 2,852 Credit Watch - - - - - - 12 12 At Risk - - - - - - 2 2 Default - - - - - - - - Wholesale total $ - $ - $ - $ - $ - $ - $ 2,866 $ 2,866 Real estate Performing $ 1,164 $ 1,316 $ 280 $ 568 $ 292 $ 1,434 $ - $ 5,054 Credit Watch - 2 - - - 12 - 14 At Risk - - - - - 8 - 8 Default - - - - - - - - Real estate total $ 1,164 $ 1,318 $ 280 $ 568 $ 292 $ 1,454 $ - $ 5,076 Working Capital Performing $ 519 $ 368 $ 216 $ 162 $ 40 $ 183 $ 823 $ 2,311 Credit Watch - 1 - - - - - 1 At Risk - - - - - - - - Default - - - - - - - - Working capital total $ 519 $ 369 $ 216 $ 162 $ 40 $ 183 $ 823 $ 2,312 Total $ 1,683 $ 1,687 $ 496 $ 730 $ 332 $ 1,637 $ 3,689 $ 10,254 Note 3 – Finance Receivables, Net (Continued) Amortized Cost Basis by Origination Fiscal Year at March 31, 2021 2021 2020 2019 2018 2017 2016 and Prior Revolving loans Total Wholesale Performing $ - $ - $ - $ - $ - $ - $ 5,893 $ 5,893 Credit Watch - - - - - - 218 218 At Risk - - - - - - 35 35 Default - - - - - - 11 11 Wholesale total $ - $ - $ - $ - $ - $ - $ 6,157 $ 6,157 Real estate Performing $ 1,874 $ 320 $ 596 $ 356 $ 312 $ 1,493 $ - $ 4,951 Credit Watch 8 49 3 20 9 99 - 188 At Risk 13 - - - 12 17 - 42 Default - - - 13 9 - - 22 Real estate total $ 1,895 $ 369 $ 599 $ 389 $ 342 $ 1,609 $ - $ 5,203 Working Capital Performing $ 503 $ 334 $ 200 $ 41 $ 106 $ 176 $ 878 $ 2,238 Credit Watch 1 - 6 1 - 19 9 36 At Risk 1 - - - 7 - - 8 Default - - - - - - - - Working capital total $ 505 $ 334 $ 206 $ 42 $ 113 $ 195 $ 887 $ 2,282 Total $ 2,400 $ 703 $ 805 $ 431 $ 455 $ 1,804 $ 7,044 $ 13,642 The amortized cost of the dealer products portfolio excludes accrued interest of $21 million and $27 million at December 31, 2021 and March 31, 2021 March 31, 2021 Note 3 – Finance Receivables, Net (Continued) Past Due Finance Receivables by Class Substantially all finance receivables do not involve recourse to the dealer in the event of customer default. Finance receivables include contracts greater than 120 days past due, which are recorded at the fair value of collateral less estimated costs to sell, and contracts in bankruptcy. Contracts for which vehicles have been repossessed are excluded. For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 30 days past the contractual due date. For any customer who is granted a payment extension under an extension program, the aging of the receivable is adjusted for the number of days of the extension granted. The following tables summarize the aging of the amortized cost basis of our finance receivables by class: December 31, 2021 30 - 59 Days past due 60 - 89 Days past due 90 greater past due Total due Current Total receivables 90 Days or greater p due and accruing Retail loan $ 985 $ 274 $ 140 $ 1,399 $ 70,457 $ 71,856 $ 89 Wholesale - - - - 2,866 2,866 - Real estate - - - - 5,076 5,076 - Working capital - - - - 2,312 2,312 - Total $ 985 $ 274 $ 140 $ 1,399 $ 80,711 $ 82,110 $ 89 March 31, 2021 30 - 59 Days past due 60 - 89 Days past due 90 greater past due Total due Current Total receivables 90 greater p due and accruing Retail loan $ 562 $ 144 $ 69 $ 775 $ 65,953 $ 66,728 $ 39 Wholesale - - - - 6,157 6,157 - Real estate - - - - 5,203 5,203 - Working capital - - - - 2,282 2,282 - Total $ 562 $ 144 $ 69 $ 775 $ 79,595 $ 80,370 $ 39 Note 3 – 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 the three and nine months ended December 31, 2021 and 2020 was not significant for each class of finance receivables. Troubled debt restructurings for accounts not under bankruptcy protection within the retail loan class of finance receivables are comprised exclusively of contract term extensions that reduce the monthly payment due from the customer. For the three classes of finance receivables within the dealer products portfolio segment, troubled debt restructurings include contract term extensions, interest rate adjustments, waivers of loan covenants, or any combination of the three. Troubled debt restructurings of accounts not under bankruptcy protection did not include forgiveness of principal or interest rate adjustments during the three and nine months ended December 31, 2021 and 2020. 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 the three and nine months ended December 31, 2021 and 2020, 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. For a limited time during fiscal 2021, we offered several programs to provide relief to customers during the COVID-19 pandemic. These programs, which were broadly available to our customers, included retail loan payment extensions and lease payment deferrals. We concluded that these programs did not meet troubled debt restructuring criteria due to the short-term nature of the modifications with no change in the contractual interest rate. To provide relief for our dealers we offered certain temporary interest reductions, interest payment deferrals, and interest waivers on dealer floorplan financing, and principal payment deferrals on dealer floorplan financing, dealer real estate and working capital loans. We also concluded that these programs did not meet troubled debt restructuring criteria as the finance receivables from the dealers were current. |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Dec. 31, 2021 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses | Note 4 – Allowance for Credit Losses The following tables provide information related to our allowance for credit losses for finance receivables and certain off-balance sheet lending commitments by portfolio segment: Three months ended December 31, 2021 Retail loan Dealer p Total Beginning balance, October 1, 2021 $ 1,135 $ 89 $ 1,224 Charge-offs (64 ) - (64 ) Recoveries 14 - 14 Provision for credit losses 55 (10 ) 45 Ending balance, December 31, 2021 1 $ 1,140 $ 79 $ 1,219 Nine months ended December 31, 2021 Retail loan Dealer p Total Beginning balance, April 1, 2021 $ 1,075 $ 140 $ 1,215 Charge-offs (152 ) - (152 ) Recoveries 46 - 46 Provision for credit losses 171 (61 ) 110 Ending balance, December 31, 2021 1 $ 1,140 $ 79 $ 1,219 1 Ending balance includes $34 million of allowance for credit losses related to off-balance sheet commitments in the dealer products portfolio which is included in Other liabilities on the Consolidated Balance Sheet. Three months ended December 31, 2020 Retail loan Dealer p Total Beginning balance, October 1, 2020 $ 1,020 $ 154 $ 1,174 Charge-offs (113 ) - (113 ) Recoveries 12 8 20 Provision for credit losses 133 (15 ) 118 Ending balance, December 31, 2020 2 $ 1,052 $ 147 $ 1,199 Nine months ended December 31, 2020 Retail loan Dealer p Total Beginning balance, April 1, 2020 $ 486 $ 241 $ 727 Adoption of ASU 2016-13 1 281 11 292 Charge-offs (228 ) - (228 ) Recoveries 33 9 42 Provision for credit losses 480 (114 ) 366 Ending balance, December 31, 2020 2 $ 1,052 $ 147 $ 1,199 1 Cumulative pre-tax adjustments recorded to retained earnings as of April 1, 2020. See Note 1 – Basis of Presentation and Significant Accounting Policies in our fiscal 2021 Form 10-K. 2 Ending balance includes $37 million of allowance for credit losses related to off-balance sheet commitments in the dealer products portfolio which is included in Other liabilities on the Consolidated Balance Sheet. Note 4 – Allowance for Credit Losses (Continued) We have elected to exclude accrued interest from the measurement of expected credit losses as we apply policies and procedures that result in the timely write-offs of accrued interest. Accrued interest is written off within 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. Finance receivables for the dealer products portfolio segment as of December 31, 2021 includes $922 million in finance receivables that are guaranteed by Toyota Motor North America, Inc. (“TMNA”), and $183 million in finance receivables that are guaranteed by third-party private Toyota distributors. Finance receivables for the dealer products portfolio segment as of December 31, 2020 includes $1,025 million in finance receivables that are guaranteed by TMNA, and $164 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. During the first nine months of fiscal 2022, the allowance for credit losses increased $4 million as the growth of our retail loan portfolio and increase in delinquencies was largely offset by improvement in the financial performance of our dealers. In contrast, during the first nine months of fiscal 2021, the allowance for credit losses increased $472 million reflecting an increase to the allowance for credit losses of $292 million related to the adoption of ASU 2016-13, and an increase of $180 million primarily due to the increase in expected credit losses for the retail loan portfolio driven by economic conditions caused by the COVID-19 pandemic and the restrictions designed to slow the spread of COVID-19, including stay-at-home orders, increased unemployment, and decreased consumer spending. |
Investments in Operating Leases
Investments in Operating Leases, Net | 9 Months Ended |
Dec. 31, 2021 | |
Leases Operating [Abstract] | |
Investments in Operating Leases, Net | Note 5 – Investments in Operating Leases, Net Investments in operating leases, net consists of vehicle lease contracts acquired from dealers, and includes deferred origination fees and costs, deferred income, and accumulated depreciation. Securitized investments in operating leases represent beneficial interests in a pool of certain vehicle leases that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements as discussed further in Note 8 - Variable Interest Entities. Cash flows from these securitized investments in operating leases are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. Investments in operating leases, net consisted of the following: December 31, March 31, 2021 2021 Investments in operating leases 1 $ 47,397 $ 48,337 Deferred origination (fees) and costs, net (56 ) (101 ) Deferred income (1,488 ) (1,759 ) Accumulated depreciation (9,017 ) (9,386 ) Investments in operating leases, net $ 36,836 $ 37,091 1 Includes securitized investments in operating leases of $16.8 billion and $9.3 billion as of December 31, 2021 and March 31, 2021 |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Interest Expense | 9 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Activities and Interest Expense | Note 6 – Derivatives, Hedging Activities and Interest Expense Derivative Instruments Our liabilities consist mainly of fixed and variable rate debt, denominated in U.S. dollars and various other currencies, which we issue in the global capital markets, while our assets consist primarily of U.S. dollar denominated, fixed rate receivables. We enter into interest rate swaps, and foreign currency swaps to economically hedge the interest rate and foreign currency risks that result from the different characteristics of our assets and liabilities. Our use of derivative transactions is intended to reduce long-term fluctuations in the fair value of assets and liabilities caused by market movements. All of our derivative activities are authorized and monitored by our management and our Asset-Liability Committee which provides a framework for financial controls and governance to manage market risk. Offsetting of Derivatives 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, or when the derivative receivables and derivative payables meet all the conditions for the right of setoff to exist. When we meet this condition, we elect to present such balances on a net basis. Over-the-Counter (“OTC”) Derivatives Our International Swaps and Derivatives Association (“ISDA”) Master Agreements are our master netting agreements which permit multiple transactions to be cancelled and settled with a single net balance paid to either party for our OTC derivatives. The master netting agreements also contain reciprocal collateral agreements which require the transfer of cash collateral to the party in a net asset position across all transactions. Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization arrangement. Although we have daily valuation and collateral exchange arrangements with all of our counterparties, due to the time required to move collateral, there may be a delay of up to one day between the exchange of collateral and the valuation of our derivatives. We would not be required to post additional collateral to the counterparties with whom we were in a net liability position at December 31, 2021, if our credit ratings were to decline, since we fully collateralize without regard to credit ratings with these counterparties. In addition, as our collateral agreements include legal right of offset provisions, collateral amounts are netted against derivative assets or derivative liabilities, and the net amount is included in Other assets or Other liabilities on our Consolidated Balance Sheets. Centrally Cleared Derivatives For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments and accounted for with corresponding derivative positions as one unit of account as opposed to collateral. Initial margin payments are separately recorded in Other assets on our Consolidated Balance Sheets. We perform valuation and margin exchange on a daily basis. Similar to the OTC swaps, there may be a delay of up to one day between the exchange of margin payments and the valuation of our derivatives. Note 6 – Derivatives, Hedging Activities and Interest Expense (Continued) Derivative Activity Impact on Consolidated Financial Statements The following tables show the financial statement line item and amount of our derivative assets and liabilities that are reported on our Consolidated Balance Sheets: December 31, 2021 March 31, 2021 Fair Fair Notional value Notional value Other assets: Interest rate swaps $ 63,788 $ 998 $ 44,125 $ 1,026 Foreign currency swaps 2,776 85 7,274 330 Total $ 66,564 $ 1,083 $ 51,399 $ 1,356 Counterparty netting (640 ) (840 ) Collateral held (380 ) (462 ) Carrying value of derivative contracts – Other assets $ 63 $ 54 Other liabilities: Interest rate swaps $ 33,127 $ 514 $ 55,062 $ 1,142 Foreign currency swaps 7,007 424 4,321 243 Total $ 40,134 $ 938 $ 59,383 $ 1,385 Counterparty netting (640 ) (840 ) Collateral posted (298 ) (544 ) Carrying value of derivative contracts – Other liabilities $ - $ 1 As of December 31, 2021 and March 31, 2021, we held excess collateral of $1 million and $29 million, respectively, which we did not use to offset derivative assets and was recorded in Other liabilities on our Consolidated Balance Sheets. As of December 31, 2021 and March 31, 2021, we posted initial margin and excess collateral of $121 million and $10 million, respectively, which we did not use to offset derivative liabilities and was recorded in Other assets on our Consolidated Balance Sheets. Note 6 – Derivatives, Hedging Activities and Interest Expense (Continued) The following table summarizes the components of interest expense, including the location and amount of gains and losses on derivative instruments and related hedged items, as reported in our Consolidated Statements of Income: Three months ended Nine months ended December 31, December 31, 2021 2020 2021 2020 Interest expense on debt $ 362 $ 460 $ 1,134 $ 1,531 Interest expense on derivatives 23 103 137 334 Interest expense on debt and derivatives 385 563 1,271 1,865 (Gains) losses on debt denominated in foreign currencies (60 ) 655 (338 ) 1,703 Losses (gains) on foreign currency swaps 151 (658 ) 509 (1,754 ) Gains on U.S. dollar interest rate swaps (130 ) (69 ) (387 ) (280 ) Total interest expense $ 346 $ 491 $ 1,055 $ 1,534 Interest expense on debt and derivatives represents net interest settlements and changes in accruals. Gains and losses on derivatives and debt denominated in foreign currencies exclude net interest settlements and changes in accruals. Cash flows associated with derivatives are reported in Net cash provided by operating activities in our Consolidated Statements of Cash Flows. |
Debt and Credit Facilities
Debt and Credit Facilities | 9 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Note 7 – Debt and Credit Facilities Debt and the related weighted average contractual interest rates are summarized as follows: December 31, 2021 March 31, 2021 Face value Carrying value Weighted average contractual interest rates Face value Carrying value Weighted average contractual interest rates Unsecured notes and loans payable 82,293 82,054 1.17 % 85,759 85,513 1.31 % Secured notes and loans payable 28,114 28,068 0.91 % 24,256 24,212 1.29 % Total debt $ 110,407 $ 110,122 1.10 % $ 110,015 $ 109,725 1.31 % The carrying value of our debt includes unamortized premiums, discounts, debt issuance costs and the effects of foreign currency translation adjustments. Weighted average contractual interest rates are calculated based on original notional or par value before consideration of premium or discount and approximate the effective interest rates. Debt is callable at par value. Unsecured Notes and Loans Payable Our unsecured notes and loans payable consist of commercial paper and fixed and variable rate debt. Short-term funding needs are met through the issuance of commercial paper in the U.S. Amounts outstanding under our commercial paper programs were $17.0 billion as of December 31, 2021 and March 31, 2021, respectively. Upon issuance of fixed rate debt, we generally elect to enter into pay-float swaps to convert fixed rate payments on debt to floating rate payments. Certain unsecured notes and loans payable are denominated in various foreign currencies. The debt is translated into U.S. dollars using the applicable exchange rate at the transaction date and retranslated at each balance sheet date using the exchange rate in effect at that date. Concurrent with the issuance of these foreign currency unsecured notes and loans payable, we enter into currency swaps in the same notional amount to convert non-U.S. currency payments to U.S. dollar denominated payments. Gains and losses related to foreign currency transactions are included in Interest expense in our Consolidated Statements of Income. Certain of our unsecured notes and loans payable contain covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets. We are currently in compliance with these covenants and conditions. Secured Notes and Loans Payable Our secured notes and loans payable are denominated in U.S. dollars and consist of both fixed and variable rate debt. Secured notes and loans payable are issued using on-balance sheet securitization trusts, as further discussed in Note 8 – Variable Interest Entities. These notes are repayable only from collections on the underlying securitized retail finance receivables and the beneficial interests in investments in operating leases and from related credit enhancements. Some of our secured notes are backed by a revolving pool of finance receivables and cash collateral, with the ability to repay the notes in full after the revolving period ends, after which an amortization period begins. Note 7 – Debt and Credit Facilities (Continued) Credit Facilities and Letters of Credit For additional liquidity purposes, we maintain credit facilities, which may be used for general corporate purposes, as described below: 364-Day Credit Agreement, Three-Year Credit Agreement and Five-Year Credit Agreement TMCC, Toyota Credit de Puerto Rico Corp. (“TCPR”), and other Toyota affiliates are party to 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 2023, 2025, and 2027, 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 were not drawn upon and had no outstanding balances as of December 31, 2021 and March 31, 2021. We are currently in compliance with the covenants and conditions of the credit agreements described above. Committed Revolving Asset-backed Facility We are party to a 364-day revolving securitization facility with certain bank-sponsored asset-backed conduits and other financial institutions expiring in fiscal 2023. Under the terms and subject to the conditions of this facility, the committed lenders under the facility have committed to make advances up to a facility limit of $7.0 billion backed by eligible retail finance receivables transferred by us to a special-purpose entity acting as borrower. We utilized $3.7 billion and $3.2 billion of this facility as of December 31, 2021 and March 31, 2021, respectively. Other Unsecured Credit Agreements TMCC is party to additional unsecured credit facilities with various banks. As of December 31, 2021, TMCC had committed bank credit facilities totaling $4.6 billion, of which $350 million, $2.2 billion, $300 million, and $1.7 billion mature in fiscal 2022, 2023, 2024, and 2025 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 and had no outstanding balances as of December 31, 2021 and March 31, 2021. We are currently in compliance with the covenants and conditions of the credit agreements described above. TMCC is party to a $5.0 billion three-year revolving credit facility with Toyota Motor Sales U.S.A., Inc. expiring in fiscal 2025. This credit facility was not drawn upon and had no outstanding balance as of December 31, 2021 and March 31, 2021. From time to time, we may borrow from affiliates based upon a number of business factors such as funds availability, cash flow timing, relative cost of funds, and market access capabilities. Amounts borrowed from affiliates are recorded in Other liabilities on our Consolidated Balance Sheets. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Note 8 – Variable Interest Entities Consolidated Variable Interest Entities We use one or more special purpose entities that are considered Variable Interest Entities (“VIEs”) 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 on our Consolidated Balance Sheets: December 31, 2021 VIE Assets VIE Liabilities Net Restricted cash securitized assets Other assets Debt Other liabilities Retail finance receivables $ 1,233 $ 21,637 $ 51 $ 19,230 $ 8 Investments in operating leases 616 12,434 22 8,838 2 Total $ 1,849 $ 34,071 $ 73 $ 28,068 $ 10 March 31, 2021 VIE Assets VIE Liabilities Net Restricted cash securitized assets Other assets Debt Other liabilities Retail finance receivables $ 1,521 $ 21,745 $ 46 $ 19,665 $ 13 Investments in operating leases 436 6,599 43 4,547 1 Total $ 1,957 $ 28,344 $ 89 $ 24,212 $ 14 Restricted Cash, including cash equivalents, shown in the previous tables represent collections from the underlying Net securitized assets and certain reserve deposits held by TMCC for the VIEs and is included as part of Restricted cash and cash equivalents on our Consolidated Balance Sheets. Net securitized assets shown in the previous tables are presented net of deferred fees and costs, deferred income, accumulated depreciation and allowance for credit losses. Other assets represent accrued interests related to securitized retail finance receivables and 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 $1,515 million and $1,409 million of securities retained by TMCC at December 31, 2021 and March 31, 2021, respectively. Other liabilities represent 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 8 – 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 retail finance receivables 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 as of December 31, 2021 and March 31, 2021 and revenues earned from these dealers for the three and nine months ended December 31, 2021 and 2020 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 and for the three and nine months ended December 31, 2021 and 2020 were not significant. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – Commitments and Contingencies Commitments and Guarantees We have entered into certain commitments and guarantees for which the maximum unfunded amounts are summarized in the table below: December 31, March 31, 2021 2021 Commitments: Credit facilities commitments with dealers $ 3,131 $ 2,338 Commitments under operating lease agreements 124 141 Total commitments 3,255 2,479 Guarantees of affiliate pollution control and solid waste disposal bonds 100 100 Total commitments and guarantees $ 3,355 $ 2,579 Wholesale financing is not considered to be a contractual commitment as the arrangements are not binding arrangements under which TMCC is required to perform. Commitments We provide fixed and variable rate working capital loans, revolving lines of credit, and real estate financing to dealers and various multi-franchise organizations referred to as dealer groups for facilities construction and refurbishment, working capital requirements, real estate purchases, business acquisitions and other general business purposes. These loans are typically secured with liens on real estate, vehicle inventory, and/or other dealership assets, as appropriate, and may be guaranteed by individual or corporate guarantees of affiliated dealers, dealer groups, or dealer principals. Although the loans are typically collateralized or guaranteed, the value of the underlying collateral or guarantees may not be sufficient to cover our exposure under such agreements. Our pricing reflects market conditions, the competitive environment, the level of support dealers provide our retail, lease and voluntary protection 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. In addition to the total commitments and guarantees in the previous table, we also have extended credit facilities to affiliates as described in Note 12 – Related Party Transactions in our fiscal 2021 Form 10-K. Lease Commitments Our operating lease portfolio consists of real estate leases. Total operating lease expense, including payments to affiliates, was $25 million and $8 million for the first nine months and third quarter of fiscal 2022, as compared to $28 million and $8 million for the same periods in fiscal 2021. We have a lease agreement through August 2032 with TMNA for our headquarters facility in Plano, Texas. Commitments under operating lease agreements in the previous table include $86 million and $93 million for facilities leases with affiliates at December 31, 2021 and March 31, 2021, respectively. Lease terms may contain renewal and extension options or early termination features. Generally, these options do not impact the lease term because TMCC is not reasonably certain that it will exercise the options. These lease agreements do not impose restrictions on our ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements, nor do they have residual value guarantees. We exclude from our Consolidated Balance Sheets leases with a term equal to one year or less and do not separate non-lease components from our real estate leases. Note 9 – Commitments and Contingencies (Continued) Our commitments under operating lease agreements are summarized below: December 31, Years ending March 31, 2021 2022 $ 5 2023 19 2024 16 2025 14 2026 13 Thereafter 57 Total $ 124 Present value discount (14 ) Total operating lease liability $ 110 Operating lease liabilities and right-of-use (“ROU”) assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The following table provides additional information related to operating lease agreements for which we are the lessee: December 31, 2021 ROU assets $ 101 Weighted average remaining lease term (in years) 8.4 Weighted average discount rate 2.76 % Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 21 Guarantees and Other Contingencies TMCC has guaranteed bond obligations totaling $100 million in principal that were issued by Putnam County, West Virginia and Gibson County, Indiana to finance the construction of pollution control facilities at manufacturing plants of certain TMCC affiliates. The bonds mature in the following fiscal years ending March 31: 2028 - $20 million; 2029 - $50 million; 2030 - $10 million; 2031 - $10 million; and 2032 - $10 million. TMCC would be required to perform under the guarantees in the event of non-payment on the bonds and other related obligations. TMCC is entitled to reimbursement by the applicable affiliates for any amounts paid. TMCC receives a nominal annual fee for guaranteeing such payments. TMCC has not been required to perform under any of these affiliate bond guarantees as of December 31, 2021 and March 31, 2021. Note 9 – Commitments and Contingencies (Continued) 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, supplier and service agreements. Performance under these indemnities would generally occur upon a breach of the representations, warranties, covenants or other commitments made or given in the agreement, or as a result of 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 December 31, 2021, we determined that it is not probable that we will be required to make any material payments in the future. As of December 31, 2021 and March 31, 2021, no amounts have been recorded under these indemnification provisions. Litigation and Governmental Proceedings Various legal actions, governmental proceedings and other claims are pending or may be instituted or asserted in the future against us with respect to matters arising in the ordinary course of business. Certain of these actions are or purport to be class action suits, seeking sizeable damages and/or changes in our business operations, policies and practices. Certain of these actions are similar to suits that have been filed against other financial institutions and captive finance companies. In addition, we are subject to governmental and regulatory examinations, information-gathering requests, and investigations from time to time at the state and federal levels. It is inherently difficult to predict the course of such legal actions and governmental inquiries. We perform periodic reviews of pending claims and actions to determine the probability of adverse verdicts and resulting amounts of liability. We establish accruals for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. When we are able, we also determine estimates of reasonably probable loss or range of loss, whether in excess of any related accrued liability or where there is no accrued liability. Given the inherent uncertainty associated with legal matters, the actual costs of resolving legal claims and associated costs of defense may be substantially higher or lower than the amounts for which accruals have been established. Based on available information and established accruals, we do not believe it is reasonably probable that the results of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial condition or results of operations. On November 24, 2020, the Consumer Financial Protection Bureau (“CFPB”) issued a civil investigative demand to the Company seeking, among other things, certain information relating to the Company’s vehicle and payment protection products and credit reporting policies and procedures and reporting records. We are cooperating with the inquiry and cannot predict the eventual scope, duration or outcome at this time. As a result, we are unable to estimate the amount or range of any potential loss arising from this investigation. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes Our provision for income taxes was $233 million and $697 million for the three and nine months ended December 31, 2021, respectively, compared to $215 million and $546 million for the same periods in fiscal 2021. Our effective tax rate was 24 percent and 23 percent for the three and nine months ended December 31, 2021, respectively, compared to 24 percent for each of the same periods in fiscal 2021. The increase in the provision for income taxes for the three and nine months ended December 31, 2021, compared to the same periods in fiscal 2021, was primarily due to the increase in income before income taxes. The lower effective tax rate for the first nine months of fiscal 2022, compared to the same period in fiscal 2021, was primarily attributable to the tax benefit from the federal tax credits recognized in fiscal 2022 as well as the enacted state tax law changes that resulted in higher state tax expense in fiscal 2021. Tax-related Contingencies As of December 31, 2021, we remain under IRS examination for fiscal 2018 through fiscal 2022. We periodically review our uncertain tax positions. Our assessment is based on many factors including any ongoing IRS audits. For the three months ended December 31, 2021, our assessment did not result in a material change in unrecognized tax benefits. Our deferred tax assets include the deferred deduction of allowance for credit losses and residual value loss estimates and other deferred costs. The total deferred tax liability, net of these deferred tax assets, was $2.4 billion and $2.9 billion at December 31, 2021 and March 31, 2021, respectively. Although realization of the deferred tax assets is not assured, management believes it is more likely than not that the deferred tax assets will be realized. The amount of the deferred tax assets considered realizable could be reduced if management’s estimates change. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11 – Related Party Transactions In April 2021, TMCC increased financing support available to Toyota Finance New Zealand Limited to $250 million. In July 2021, TMCC entered into a services agreement with Toyota Financial Savings Bank (“TFSB”) to subservice loans on their behalf. In August 2021, TMCC increased financing support available to TFSB to $1.0 billion and entered into a financing support agreement with Toyota Finance Corporation (“TFC”) for $100 million. In November 2021, in accordance with the financing support agreement and for general corporate purposes, TFC borrowed from TMCC in Japanese Yen a principal amount equivalent to $100 million with an interest rate of 0.0175% and repayment date of November 2023. Except for the transactions mentioned above, as of December 31, 2021, there were no material changes to our related party agreements or relationships as described in our fiscal 2021 Form 10-K. The tables below show the financial statement line items and amounts included in our Consolidated Statements of Income and in our Consolidated Balance Sheets under various related party agreements or relationships: Three months ended Nine months ended December 31, December 31, 2021 2020 2021 2020 Net financing revenues: Manufacturer's subvention and other revenues $ 425 $ 503 $ 1,361 $ 1,504 Depreciation on operating leases $ (14 ) $ (33 ) $ (67 ) $ (82 ) Interest expense: Credit support fees, interest and other expenses $ 25 $ 26 $ 76 $ 93 Voluntary protection contract revenues and insurance earned premiums: Voluntary protection contract revenues and insurance earned premiums $ 42 $ 43 $ 127 $ 130 Investment and other income, net: Interest and other income $ 1 $ 3 $ 6 $ 16 Expenses: Operating and administrative expenses $ 19 $ 20 $ 62 $ 63 Note 11 – Related Party Transactions (Continued) December 31, March 31, 2021 2021 Assets: Cash and cash equivalents Commercial paper $ 25 $ 6 Investments in marketable securities Commercial paper $ 25 $ 196 Finance receivables, net Accounts receivable $ 88 $ 140 Deferred retail subvention income $ (932 ) $ (1,156 ) Investments in operating leases, net Investments in operating leases, net $ (217 ) $ (236 ) Deferred lease subvention income $ (1,120 ) $ (1,528 ) Other assets Notes receivable $ 768 $ 869 Other receivables, net $ 80 $ 83 Liabilities: Other liabilities Unearned voluntary protection contract revenues and insurance earned premiums $ 376 $ 352 Other payables, net $ 383 $ 306 Notes payable $ 36 $ 19 TMCC receives subvention payments from TMNA which results in a gross monthly subvention receivable. As of December 31, 2021 and March 31, 2021, the subvention receivable from TMNA was $56 million and $184 million, respectively. We have a master netting agreement with TMNA which allows us to net settle payments for shared services and subvention transactions. Under this agreement, as of December 31, 2021 and March 31, 2021, respectively, we had a net amount payable to TMNA which is recorded in Other payables, net in Other liabilities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 12 – Fair Value Measurements Recurring 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. December 31, 2021 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 484 $ 6 $ - $ - $ 490 Foreign government and agency obligations - 31 - - 31 Municipal debt securities - 11 - - 11 Commercial paper - 25 - - 25 Corporate debt securities - 601 - - 601 Mortgage-backed securities: U.S. government agency - 22 - - 22 Non-agency residential - 8 3 - 11 Non-agency commercial - 60 16 - 76 Asset-backed securities - 72 16 - 88 Available-for-sale debt securities total 484 836 35 - 1,355 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 1,205 Total return bond funds 1,569 - - - 1,569 Equity mutual funds 992 - - - 992 Equity investments total 2,561 - - - 3,766 Investments in marketable securities total 3,045 836 35 - 5,121 Derivative assets: Interest rate swaps - 998 - - 998 Foreign currency swaps - 85 - - 85 Counterparty netting and collateral - - - (1,020 ) (1,020 ) Derivative assets total - 1,083 - (1,020 ) 63 Assets at fair value 3,045 1,919 35 (1,020 ) 5,184 Derivative liabilities: Interest rate swaps - (514 ) - - (514 ) Foreign currency swaps - (424 ) - - (424 ) Counterparty netting and collateral - - - 938 938 Liabilities at fair value - (938 ) - 938 - Net assets at fair value $ 3,045 $ 981 $ 35 $ (82 ) $ 5,184 Note 12 – Fair Value Measurements (Continued) March 31, 2021 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 209 $ 2 $ - $ - $ 211 Municipal debt securities - 10 - - 10 Commercial paper 20 176 - - 196 Corporate debt securities - 187 - - 187 Mortgage-backed securities: U.S. government agency - 32 - - 32 Non-agency residential - - 1 - 1 Non-agency commercial - 5 42 - 47 Asset-backed securities - 19 33 - 52 Available-for-sale debt securities total 229 431 76 - 736 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 772 Total return bond funds 2,429 - - - 2,429 Equity mutual funds 883 - - - 883 Equity investments total 3,312 - - - 4,084 Investments in marketable securities total 3,541 431 76 - 4,820 Derivative assets: Interest rate swaps - 1,026 - - 1,026 Foreign currency swaps - 330 - - 330 Counterparty netting and collateral - - - (1,302 ) (1,302 ) Derivative assets total - 1,356 - (1,302 ) 54 Assets at fair value 3,541 1,787 76 (1,302 ) 4,874 Derivative liabilities: Interest rate swaps - (1,142 ) - - (1,142 ) Foreign currency swaps - (243 ) - - (243 ) Counterparty netting and collateral - - - 1,384 1,384 Liabilities at fair value - (1,385 ) - 1,384 (1 ) Net assets at fair value $ 3,541 $ 402 $ 76 $ 82 $ 4,873 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 activity and change in the fair value measurements of these assets and liabilities, were not significant to our Consolidated Balance Sheets as of December 31, 2021and March 31, 2021, or Consolidated Statements of Income for the three and nine months ended December 31, 2021 and 2020. 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 December 31, 2021 and March 31, 2021. Note 12 – 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: December 31, 2021 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables Retail loan $ 70,904 $ - $ - $ 74,090 $ 74,090 Wholesale 2,864 - - 2,878 2,878 Real estate 5,041 - - 5,215 5,215 Working capital 2,238 - - 2,181 2,181 Financial liabilities Unsecured notes and loans payable $ 82,054 $ - $ 82,671 $ - $ 82,671 Secured notes and loans payable 28,068 - - 28,120 28,120 March 31, 2021 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables Retail loan $ 65,808 $ - $ - $ 69,007 $ 69,007 Wholesale 6,132 - - 6,158 6,158 Real estate 5,142 - - 5,224 5,224 Working capital 2,154 - - 2,171 2,171 Financial liabilities Unsecured notes and loans payable $ 85,513 $ - $ 86,205 $ 555 $ 86,760 Secured notes and loans payable 24,212 - - 24,478 24,478 Accrued interest related to finance receivables is in Other assets in the Consolidated Balance Sheets; however, TMCC measures the fair value of each class of finance receivables using scheduled principal and interest payments. Therefore, accrued interest has been included in the carrying value of each class of finance receivables in the previous tables, along with the finance receivables, deferred origination costs, deferred income, and allowance for credit losses. Finance receivables in the previous tables excludes related party transactions, for which the fair value approximates the carrying value, of $88 million and $140 million at December 31, 2021 and March 31, 2021, respectively. Fair values of related party finance receivables, net are classified as Level 3 within the fair value hierarchy. For Cash and cash equivalents and Restricted cash and cash equivalents on our Consolidated Balance Sheets, the fair value approximates the carrying value and these instruments are classified as Level 1 within the fair value hierarchy. |
Segment Information
Segment Information | 9 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 13 – Segment Information Financial information for our reportable operating segments, which includes allocated corporate expenses, is summarized as follows: Three months ended December 31, 2021 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 2,991 $ - $ - $ 2,991 Depreciation on operating leases 1,460 - - 1,460 Interest expense 346 - - 346 Net financing revenues 1,185 - - 1,185 Voluntary protection contract revenues and insurance earned premiums - 255 - 255 Investment and other income, net 12 64 - 76 Net financing and other revenues 1,197 319 - 1,516 Expenses: Provision for credit losses 45 - - 45 Operating and administrative expenses 293 101 - 394 Voluntary protection contract expenses and insurance losses - 96 - 96 Total expenses 338 197 - 535 Income before income taxes 859 122 - 981 Provision for income taxes 204 29 - 233 Net income $ 655 $ 93 $ - $ 748 Nine months ended December 31, 2021 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 9,022 $ - $ - $ 9,022 Depreciation on operating leases 4,400 - - 4,400 Interest expense 1,055 - - 1,055 Net financing revenues 3,567 - - 3,567 Voluntary protection contract revenues and insurance earned premiums - 758 - 758 Investment and other income, net 40 199 - 239 Net financing and other revenues 3,607 957 - 4,564 Expenses: Provision for credit losses 110 - - 110 Operating and administrative expenses 872 291 - 1,163 Voluntary protection contract expenses and insurance losses - 303 - 303 Total expenses 982 594 - 1,576 Income before income taxes 2,625 363 - 2,988 Provision for income taxes 610 87 - 697 Net income $ 2,015 $ 276 $ - $ 2,291 Total assets at December 31, 2021 $ 129,511 $ 6,745 $ (121 ) $ 136,135 Note 13 – Segment Information (Continued) Three months ended December 31, 2020 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 2,974 $ - $ - $ 2,974 Depreciation on operating leases 1,450 - - 1,450 Interest expense 491 - - 491 Net financing revenues 1,033 - - 1,033 Voluntary protection contract revenues and insurance earned premiums - 241 - 241 Investment and other income, net 21 158 - 179 Net financing and other revenues 1,054 399 - 1,453 Expenses: Provision for credit losses 118 - - 118 Operating and administrative expenses 268 86 - 354 Voluntary protection contract expenses and insurance losses - 98 - 98 Total expenses 386 184 - 570 Income before income taxes 668 215 - 883 Provision for income taxes 163 52 - 215 Net income $ 505 $ 163 $ - $ 668 Nine months ended December 31, 2020 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 8,821 $ - $ - $ 8,821 Depreciation on operating leases 4,484 - - 4,484 Interest expense 1,534 - - 1,534 Net financing revenues 2,803 - - 2,803 Voluntary protection contract revenues and insurance earned premiums - 714 - 714 Investment and other income, net 76 369 - 445 Net financing and other revenues 2,879 1,083 - 3,962 Expenses: Provision for credit losses 366 - - 366 Operating and administrative expenses 818 270 - 1,088 Voluntary protection contract expenses and insurance losses - 265 - 265 Total expenses 1,184 535 - 1,719 Income before income taxes 1,695 548 - 2,243 Provision for income taxes 414 132 - 546 Net income $ 1,281 $ 416 $ - $ 1,697 Total assets at December 31, 2020 $ 128,442 $ 6,176 $ (127 ) $ 134,491 Note 13 – Segment Information (Continued) Voluntary protection operations – Contract revenues For the three and nine months ended December 31, 2021 and 2020, approximately 82 percent and 83 percent, respectively, of voluntary protection contract revenues in the Voluntary protection operations segment were accounted for under the guidance for revenue from contracts with customers. The Voluntary protection operations segment defers contractually determined incentives paid to dealers as contract costs for selling voluntary protection products. These costs are recorded in Other assets on our Consolidated Balance Sheets and are amortized to Operating and administrative expenses in the Consolidated Statements of Income using a methodology consistent with the recognition of revenue. The amount of capitalized dealer incentives and the related amortization was not significant to our consolidated financial statements as of and for the three and nine months ended December 31, 2021 and 2020. We had $2.4 billion and $2.5 billion of unearned voluntary protection contract revenues from contracts with customers included in Other liabilities on our Consolidated Balance Sheets as of March 31, 2020 and March 31, 2021, respectively. We recognized $170 million and $545 million of these balances in voluntary protection contract revenues in our Consolidated Statements of Income during the three and nine months ended December 31, 2021, respectively, compared to $169 million and $537 million recognized during the same periods in fiscal 2021. As of December 31, 2021, we had unearned voluntary protection contract revenues of $2.6 billion included in Other liabilities on our Consolidated Balance Sheets, and with respect to this balance we expect to recognize revenue of $205 million during fiscal 2022 |
Interim Financial Data (Policie
Interim Financial Data (Policies) | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The information furnished in these unaudited interim consolidated financial statements as of and for the three and nine months ended December 31, 2021 and 2020 has been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). In the opinion of management, the unaudited consolidated financial information reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The results of operations for the three and nine months ended December 31, 2021 do not necessarily indicate the results which may be expected for the full fiscal year ending March 31, 2022 (“fiscal 2022”). These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in Toyota Motor Credit Corporation’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended March 31, 2021 (“fiscal 2021”), which was filed with the Securities and Exchange Commission on June 3, 2021. References herein to “TMCC” denote Toyota Motor Credit Corporation, and references herein to “we”, “our”, and “us” denote Toyota Motor Credit Corporation and its consolidated subsidiaries. Other Matters In fiscal 2021, TMCC began providing private label financial services to third-party automotive and mobility companies commencing with the provision of services to Mazda Motor of America, Inc. (“Mazda”). We are currently leveraging our existing processes and personnel to originate and service the new assets; however, we will continue to evaluate the private label financial services business, which includes partnering with or transitioning a portion of the business to our affiliates, some of which are not consolidated with TMCC. We have also made certain technology investments to support the Mazda program and future private label customers. On November 19, 2021, TMCC announced, in furtherance of its private label financial services initiative for third party automotive and mobility companies, that we entered into a nonbinding letter of intent with Great American Outdoors Group LLC, the parent company of Bass Pro Shops, Cabela’s and the White River Marine Group (“Bass Pro Shops”) to provide private label financial services for Bass Pro Shop’s boats, all-terrain vehicle products, and other mobility products. The Company expects to provide inventory financing for Bass Pro Shops, its affiliates, and authorized independent dealers, starting in fiscal 2023, with additional private label services, including consumer financing and voluntary protection products and services, to be added over time. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance On April 1, 2021, we adopted the following new accounting standards: We adopted Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, We adopted ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs |
Accounting Guidance Issued But Not Yet Adopted | Accounting Guidance Issued But Not Yet Adopted In July 2021, the FASB issued ASU 2021-05, Lessors-Certain Leases with Variable Lease Payments (Topic 842) |
Investments in Marketable Securities | Investments in marketable securities consist of debt securities and equity investments. We classify all of our debt securities as available-for-sale (“AFS”). Except when fair value option is elected, AFS debt securities are recorded at fair value with unrealized gains or losses included in accumulated other comprehensive income (“AOCI”), net of applicable taxes. All equity investments are recorded at fair value with changes in fair value included in Investment and other income, net in our Consolidated Statements of Income. |
Finance Receivables, Net | Finance receivables, net consists of the retail loan and dealer products portfolio segments, and includes deferred origination costs, deferred income, and allowance for credit losses. Finance receivables, net also includes securitized retail receivables, which represent retail receivables that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements, as discussed further in Note 8 – Variable Interest Entities. Cash flows from these securitized retail receivables are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. |
Investments in Operating Leases, Net | Investments in operating leases, net consists of vehicle lease contracts acquired from dealers, and includes deferred origination fees and costs, deferred income, and accumulated depreciation. Securitized investments in operating leases represent beneficial interests in a pool of certain vehicle leases that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements as discussed further in Note 8 - Variable Interest Entities. Cash flows from these securitized investments in operating leases are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors. |
Derivative Instruments | Derivative Instruments Our liabilities consist mainly of fixed and variable rate debt, denominated in U.S. dollars and various other currencies, which we issue in the global capital markets, while our assets consist primarily of U.S. dollar denominated, fixed rate receivables. We enter into interest rate swaps, and foreign currency swaps to economically hedge the interest rate and foreign currency risks that result from the different characteristics of our assets and liabilities. Our use of derivative transactions is intended to reduce long-term fluctuations in the fair value of assets and liabilities caused by market movements. All of our derivative activities are authorized and monitored by our management and our Asset-Liability Committee which provides a framework for financial controls and governance to manage market risk. |
Offsetting of Derivatives | Offsetting of Derivatives 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, or when the derivative receivables and derivative payables meet all the conditions for the right of setoff to exist. When we meet this condition, we elect to present such balances on a net basis. Over-the-Counter (“OTC”) Derivatives Our International Swaps and Derivatives Association (“ISDA”) Master Agreements are our master netting agreements which permit multiple transactions to be cancelled and settled with a single net balance paid to either party for our OTC derivatives. The master netting agreements also contain reciprocal collateral agreements which require the transfer of cash collateral to the party in a net asset position across all transactions. Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization arrangement. Although we have daily valuation and collateral exchange arrangements with all of our counterparties, due to the time required to move collateral, there may be a delay of up to one day between the exchange of collateral and the valuation of our derivatives. We would not be required to post additional collateral to the counterparties with whom we were in a net liability position at December 31, 2021, if our credit ratings were to decline, since we fully collateralize without regard to credit ratings with these counterparties. In addition, as our collateral agreements include legal right of offset provisions, collateral amounts are netted against derivative assets or derivative liabilities, and the net amount is included in Other assets or Other liabilities on our Consolidated Balance Sheets. |
Centrally Cleared Derivatives | Centrally Cleared Derivatives For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments and accounted for with corresponding derivative positions as one unit of account as opposed to collateral. Initial margin payments are separately recorded in Other assets on our Consolidated Balance Sheets. We perform valuation and margin exchange on a daily basis. Similar to the OTC swaps, there may be a delay of up to one day between the exchange of margin payments and the valuation of our derivatives. |
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities We use one or more special purpose entities that are considered Variable Interest Entities (“VIEs”) 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. |
Revenue Recognition | Voluntary protection operations – Contract revenues The Voluntary protection operations segment defers contractually determined incentives paid to dealers as contract costs for selling voluntary protection products. These costs are recorded in Other assets on our Consolidated Balance Sheets and are amortized to Operating and administrative expenses in the Consolidated Statements of Income using a methodology consistent with the recognition of revenue. The amount of capitalized dealer incentives and the related amortization was not significant to our consolidated financial statements as of and for the three and nine months ended December 31, 2021 and 2020. |
Investments in Marketable Sec_2
Investments in Marketable Securities (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Marketable Securities [Abstract] | |
Summary of Investments in Marketable Securities | Investments in marketable securities consisted of the following: December 31, 2021 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 491 $ 5 $ (6 ) $ 490 Foreign government and agency obligations 32 - (1 ) 31 Municipal debt securities 9 2 - 11 Commercial paper 25 - - 25 Corporate debt securities 589 15 (3 ) 601 Mortgage-backed securities: U.S. government agency 21 1 - 22 Non-agency residential 11 - - 11 Non-agency commercial 75 2 (1 ) 76 Asset-backed securities 86 3 (1 ) 88 Total available-for-sale debt securities $ 1,339 $ 28 $ (12 ) $ 1,355 Equity investments 3,766 Total investments in marketable securities $ 5,121 March 31, 2021 Amortized Unrealized Unrealized Fair cost gains losses value Available-for-sale debt securities: U.S. government and agency obligations $ 217 $ 4 $ (10 ) $ 211 Municipal debt securities 8 2 - 10 Commercial paper 196 - - 196 Corporate debt securities 177 12 (2 ) 187 Mortgage-backed securities: U.S. government agency 31 1 - 32 Non-agency residential 1 - - 1 Non-agency commercial 47 2 (2 ) 47 Asset-backed securities 49 3 - 52 Total available-for-sale debt securities $ 726 $ 24 $ (14 ) $ 736 Equity investments 4,084 Total investments in marketable securities $ 4,820 |
Schedule of Gains and Losses on Investments in Marketable Securities Presented in Our Consolidated Statement of Income | The following table represents gains and losses on our investments in marketable securities presented in our Consolidated Statements of Income: Three months ended Nine months ended December 31, December 31, 2021 2020 2021 2020 Available-for-sale debt securities: Unrealized (losses) gains on securities for which the fair value option was elected $ (4 ) $ - $ 3 $ - Realized (losses) gains $ (1 ) $ 2 $ (1 ) $ 19 Equity investments: Unrealized gains $ 26 $ 49 $ 84 $ 188 Realized gains on sales $ - $ 3 $ 22 $ 15 |
Summary of Contractual Maturities of Available-For-Sale Debt Securities | The amortized cost and fair value by contractual maturities of available-for-sale debt securities are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations. December 31, 2021 Amortized c Fair value Available-for-sale debt securities: Due within 1 year $ 127 $ 127 Due after 1 year through 5 years 372 375 Due after 5 years through 10 years 357 359 Due after 10 years 290 297 Mortgage-backed and asset-backed securities 1 193 197 Total $ 1,339 $ 1,355 1 |
Finance Receivables, Net (Table
Finance Receivables, Net (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Net Financing Receivables | Finance receivables, net consisted of the following: December 31, March 31, 2021 2021 Retail receivables 1 $ 71,727 $ 66,991 Dealer financing 10,254 13,642 81,981 80,633 Deferred origination costs 1,305 1,145 Deferred income (1,176 ) (1,408 ) Allowance for credit losses Retail receivables (1,140 ) (1,075 ) Dealer financing (45 ) (103 ) Total allowance for credit losses (1,185 ) (1,178 ) Finance receivables, net $ 80,925 $ 79,192 1 |
Schedule of Amortized Cost Basis of Retail Loan Portfolio and Dealer Products Portfolio by Credit Quality Indicator | The following tables present the amortized cost basis of our retail loan portfolio by origination fiscal year by credit quality indicator based on number of days past due: Amortized Cost Basis by Origination Fiscal Year at December 31, 2021 2022 2021 2020 2019 2018 2017 and Prior Total Aging of finance receivables: Current $ 25,098 $ 24,373 $ 10,913 $ 5,626 $ 3,390 $ 1,057 $ 70,457 30-59 days past due 215 341 177 119 81 52 985 60-89 days past due 54 97 49 36 22 16 274 90 days or greater past due 29 51 23 15 11 11 140 Total $ 25,396 $ 24,862 $ 11,162 $ 5,796 $ 3,504 $ 1,136 $ 71,856 Amortized Cost Basis by Origination Fiscal Year at March 31, 2021 2021 2020 2019 2018 2017 2016 and Prior Total Aging of finance receivables: Current $ 32,026 $ 16,047 $ 8,972 $ 5,977 $ 2,435 $ 496 $ 65,953 30-59 days past due 147 145 114 83 46 27 562 60-89 days past due 37 39 28 21 11 8 144 90 days or greater past due 18 18 13 9 5 6 69 Total $ 32,228 $ 16,249 $ 9,127 $ 6,090 $ 2,497 $ 537 $ 66,728 The following tables present the amortized cost basis of our dealer products portfolio by credit quality indicator based on internal risk assessments by origination fiscal year: Amortized Cost Basis by Origination Fiscal Year at December 31, 2021 2022 2021 2020 2019 2018 2017 and Prior Revolving loans Total Wholesale Performing $ - $ - $ - $ - $ - $ - $ 2,852 $ 2,852 Credit Watch - - - - - - 12 12 At Risk - - - - - - 2 2 Default - - - - - - - - Wholesale total $ - $ - $ - $ - $ - $ - $ 2,866 $ 2,866 Real estate Performing $ 1,164 $ 1,316 $ 280 $ 568 $ 292 $ 1,434 $ - $ 5,054 Credit Watch - 2 - - - 12 - 14 At Risk - - - - - 8 - 8 Default - - - - - - - - Real estate total $ 1,164 $ 1,318 $ 280 $ 568 $ 292 $ 1,454 $ - $ 5,076 Working Capital Performing $ 519 $ 368 $ 216 $ 162 $ 40 $ 183 $ 823 $ 2,311 Credit Watch - 1 - - - - - 1 At Risk - - - - - - - - Default - - - - - - - - Working capital total $ 519 $ 369 $ 216 $ 162 $ 40 $ 183 $ 823 $ 2,312 Total $ 1,683 $ 1,687 $ 496 $ 730 $ 332 $ 1,637 $ 3,689 $ 10,254 Amortized Cost Basis by Origination Fiscal Year at March 31, 2021 2021 2020 2019 2018 2017 2016 and Prior Revolving loans Total Wholesale Performing $ - $ - $ - $ - $ - $ - $ 5,893 $ 5,893 Credit Watch - - - - - - 218 218 At Risk - - - - - - 35 35 Default - - - - - - 11 11 Wholesale total $ - $ - $ - $ - $ - $ - $ 6,157 $ 6,157 Real estate Performing $ 1,874 $ 320 $ 596 $ 356 $ 312 $ 1,493 $ - $ 4,951 Credit Watch 8 49 3 20 9 99 - 188 At Risk 13 - - - 12 17 - 42 Default - - - 13 9 - - 22 Real estate total $ 1,895 $ 369 $ 599 $ 389 $ 342 $ 1,609 $ - $ 5,203 Working Capital Performing $ 503 $ 334 $ 200 $ 41 $ 106 $ 176 $ 878 $ 2,238 Credit Watch 1 - 6 1 - 19 9 36 At Risk 1 - - - 7 - - 8 Default - - - - - - - - Working capital total $ 505 $ 334 $ 206 $ 42 $ 113 $ 195 $ 887 $ 2,282 Total $ 2,400 $ 703 $ 805 $ 431 $ 455 $ 1,804 $ 7,044 $ 13,642 |
Aging of Amortized Cost Basis of Finance Receivables by Class | The following tables summarize the aging of the amortized cost basis of our finance receivables by class: December 31, 2021 30 - 59 Days past due 60 - 89 Days past due 90 greater past due Total due Current Total receivables 90 Days or greater p due and accruing Retail loan $ 985 $ 274 $ 140 $ 1,399 $ 70,457 $ 71,856 $ 89 Wholesale - - - - 2,866 2,866 - Real estate - - - - 5,076 5,076 - Working capital - - - - 2,312 2,312 - Total $ 985 $ 274 $ 140 $ 1,399 $ 80,711 $ 82,110 $ 89 March 31, 2021 30 - 59 Days past due 60 - 89 Days past due 90 greater past due Total due Current Total receivables 90 greater p due and accruing Retail loan $ 562 $ 144 $ 69 $ 775 $ 65,953 $ 66,728 $ 39 Wholesale - - - - 6,157 6,157 - Real estate - - - - 5,203 5,203 - Working capital - - - - 2,282 2,282 - Total $ 562 $ 144 $ 69 $ 775 $ 79,595 $ 80,370 $ 39 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses and Finance Receivables by Portfolio Segment | The following tables provide information related to our allowance for credit losses for finance receivables and certain off-balance sheet lending commitments by portfolio segment: Three months ended December 31, 2021 Retail loan Dealer p Total Beginning balance, October 1, 2021 $ 1,135 $ 89 $ 1,224 Charge-offs (64 ) - (64 ) Recoveries 14 - 14 Provision for credit losses 55 (10 ) 45 Ending balance, December 31, 2021 1 $ 1,140 $ 79 $ 1,219 Nine months ended December 31, 2021 Retail loan Dealer p Total Beginning balance, April 1, 2021 $ 1,075 $ 140 $ 1,215 Charge-offs (152 ) - (152 ) Recoveries 46 - 46 Provision for credit losses 171 (61 ) 110 Ending balance, December 31, 2021 1 $ 1,140 $ 79 $ 1,219 1 Ending balance includes $34 million of allowance for credit losses related to off-balance sheet commitments in the dealer products portfolio which is included in Other liabilities on the Consolidated Balance Sheet. Three months ended December 31, 2020 Retail loan Dealer p Total Beginning balance, October 1, 2020 $ 1,020 $ 154 $ 1,174 Charge-offs (113 ) - (113 ) Recoveries 12 8 20 Provision for credit losses 133 (15 ) 118 Ending balance, December 31, 2020 2 $ 1,052 $ 147 $ 1,199 Nine months ended December 31, 2020 Retail loan Dealer p Total Beginning balance, April 1, 2020 $ 486 $ 241 $ 727 Adoption of ASU 2016-13 1 281 11 292 Charge-offs (228 ) - (228 ) Recoveries 33 9 42 Provision for credit losses 480 (114 ) 366 Ending balance, December 31, 2020 2 $ 1,052 $ 147 $ 1,199 1 Cumulative pre-tax adjustments recorded to retained earnings as of April 1, 2020. See Note 1 – Basis of Presentation and Significant Accounting Policies in our fiscal 2021 Form 10-K. 2 Ending balance includes $37 million of allowance for credit losses related to off-balance sheet commitments in the dealer products portfolio which is included in Other liabilities on the Consolidated Balance Sheet. |
Investments in Operating Leas_2
Investments in Operating Leases, Net (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Leases Operating [Abstract] | |
Investments in Operating Leases, Net | Investments in operating leases, net consisted of the following: December 31, March 31, 2021 2021 Investments in operating leases 1 $ 47,397 $ 48,337 Deferred origination (fees) and costs, net (56 ) (101 ) Deferred income (1,488 ) (1,759 ) Accumulated depreciation (9,017 ) (9,386 ) Investments in operating leases, net $ 36,836 $ 37,091 1 Includes securitized investments in operating leases of $16.8 billion and $9.3 billion as of December 31, 2021 and March 31, 2021 |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities and Interest Expense (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
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 on our Consolidated Balance Sheets: December 31, 2021 March 31, 2021 Fair Fair Notional value Notional value Other assets: Interest rate swaps $ 63,788 $ 998 $ 44,125 $ 1,026 Foreign currency swaps 2,776 85 7,274 330 Total $ 66,564 $ 1,083 $ 51,399 $ 1,356 Counterparty netting (640 ) (840 ) Collateral held (380 ) (462 ) Carrying value of derivative contracts – Other assets $ 63 $ 54 Other liabilities: Interest rate swaps $ 33,127 $ 514 $ 55,062 $ 1,142 Foreign currency swaps 7,007 424 4,321 243 Total $ 40,134 $ 938 $ 59,383 $ 1,385 Counterparty netting (640 ) (840 ) Collateral posted (298 ) (544 ) Carrying value of derivative contracts – Other liabilities $ - $ 1 |
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: Three months ended Nine months ended December 31, December 31, 2021 2020 2021 2020 Interest expense on debt $ 362 $ 460 $ 1,134 $ 1,531 Interest expense on derivatives 23 103 137 334 Interest expense on debt and derivatives 385 563 1,271 1,865 (Gains) losses on debt denominated in foreign currencies (60 ) 655 (338 ) 1,703 Losses (gains) on foreign currency swaps 151 (658 ) 509 (1,754 ) Gains on U.S. dollar interest rate swaps (130 ) (69 ) (387 ) (280 ) Total interest expense $ 346 $ 491 $ 1,055 $ 1,534 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Related Weighted Average Contractual Interest Rates | Debt and the related weighted average contractual interest rates are summarized as follows: December 31, 2021 March 31, 2021 Face value Carrying value Weighted average contractual interest rates Face value Carrying value Weighted average contractual interest rates Unsecured notes and loans payable 82,293 82,054 1.17 % 85,759 85,513 1.31 % Secured notes and loans payable 28,114 28,068 0.91 % 24,256 24,212 1.29 % Total debt $ 110,407 $ 110,122 1.10 % $ 110,015 $ 109,725 1.31 % |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Schedule of Assets and Liabilities related to Variable Interest Entities Securitization Transactions | The following tables show the assets and liabilities related to our VIE securitization transactions that were included on our Consolidated Balance Sheets: December 31, 2021 VIE Assets VIE Liabilities Net Restricted cash securitized assets Other assets Debt Other liabilities Retail finance receivables $ 1,233 $ 21,637 $ 51 $ 19,230 $ 8 Investments in operating leases 616 12,434 22 8,838 2 Total $ 1,849 $ 34,071 $ 73 $ 28,068 $ 10 March 31, 2021 VIE Assets VIE Liabilities Net Restricted cash securitized assets Other assets Debt Other liabilities Retail finance receivables $ 1,521 $ 21,745 $ 46 $ 19,665 $ 13 Investments in operating leases 436 6,599 43 4,547 1 Total $ 1,957 $ 28,344 $ 89 $ 24,212 $ 14 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
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: December 31, March 31, 2021 2021 Commitments: Credit facilities commitments with dealers $ 3,131 $ 2,338 Commitments under operating lease agreements 124 141 Total commitments 3,255 2,479 Guarantees of affiliate pollution control and solid waste disposal bonds 100 100 Total commitments and guarantees $ 3,355 $ 2,579 |
Summary of Commitments under Operating Lease Agreements | Our commitments under operating lease agreements are summarized below: December 31, Years ending March 31, 2021 2022 $ 5 2023 19 2024 16 2025 14 2026 13 Thereafter 57 Total $ 124 Present value discount (14 ) Total operating lease liability $ 110 |
Summary of Additional Information Related to Operating Lease Agreements | The following table provides additional information related to operating lease agreements for which we are the lessee: December 31, 2021 ROU assets $ 101 Weighted average remaining lease term (in years) 8.4 Weighted average discount rate 2.76 % Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 21 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Included in Consolidated Statements of Income | The tables below show the financial statement line items and amounts included in our Consolidated Statements of Income and in our Consolidated Balance Sheets under various related party agreements or relationships: Three months ended Nine months ended December 31, December 31, 2021 2020 2021 2020 Net financing revenues: Manufacturer's subvention and other revenues $ 425 $ 503 $ 1,361 $ 1,504 Depreciation on operating leases $ (14 ) $ (33 ) $ (67 ) $ (82 ) Interest expense: Credit support fees, interest and other expenses $ 25 $ 26 $ 76 $ 93 Voluntary protection contract revenues and insurance earned premiums: Voluntary protection contract revenues and insurance earned premiums $ 42 $ 43 $ 127 $ 130 Investment and other income, net: Interest and other income $ 1 $ 3 $ 6 $ 16 Expenses: Operating and administrative expenses $ 19 $ 20 $ 62 $ 63 |
Related Party Transactions Included in Consolidated Balance Sheets | The tables below show the financial statement line items and amounts included in our Consolidated Statements of Income and in our Consolidated Balance Sheets under various related party agreements or relationships: December 31, March 31, 2021 2021 Assets: Cash and cash equivalents Commercial paper $ 25 $ 6 Investments in marketable securities Commercial paper $ 25 $ 196 Finance receivables, net Accounts receivable $ 88 $ 140 Deferred retail subvention income $ (932 ) $ (1,156 ) Investments in operating leases, net Investments in operating leases, net $ (217 ) $ (236 ) Deferred lease subvention income $ (1,120 ) $ (1,528 ) Other assets Notes receivable $ 768 $ 869 Other receivables, net $ 80 $ 83 Liabilities: Other liabilities Unearned voluntary protection contract revenues and insurance earned premiums $ 376 $ 352 Other payables, net $ 383 $ 306 Notes payable $ 36 $ 19 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
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. December 31, 2021 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 484 $ 6 $ - $ - $ 490 Foreign government and agency obligations - 31 - - 31 Municipal debt securities - 11 - - 11 Commercial paper - 25 - - 25 Corporate debt securities - 601 - - 601 Mortgage-backed securities: U.S. government agency - 22 - - 22 Non-agency residential - 8 3 - 11 Non-agency commercial - 60 16 - 76 Asset-backed securities - 72 16 - 88 Available-for-sale debt securities total 484 836 35 - 1,355 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 1,205 Total return bond funds 1,569 - - - 1,569 Equity mutual funds 992 - - - 992 Equity investments total 2,561 - - - 3,766 Investments in marketable securities total 3,045 836 35 - 5,121 Derivative assets: Interest rate swaps - 998 - - 998 Foreign currency swaps - 85 - - 85 Counterparty netting and collateral - - - (1,020 ) (1,020 ) Derivative assets total - 1,083 - (1,020 ) 63 Assets at fair value 3,045 1,919 35 (1,020 ) 5,184 Derivative liabilities: Interest rate swaps - (514 ) - - (514 ) Foreign currency swaps - (424 ) - - (424 ) Counterparty netting and collateral - - - 938 938 Liabilities at fair value - (938 ) - 938 - Net assets at fair value $ 3,045 $ 981 $ 35 $ (82 ) $ 5,184 March 31, 2021 Counterparty netting & Fair Level 1 Level 2 Level 3 collateral value Investments in marketable securities: Available-for-sale debt securities: U.S. government and agency obligations $ 209 $ 2 $ - $ - $ 211 Municipal debt securities - 10 - - 10 Commercial paper 20 176 - - 196 Corporate debt securities - 187 - - 187 Mortgage-backed securities: U.S. government agency - 32 - - 32 Non-agency residential - - 1 - 1 Non-agency commercial - 5 42 - 47 Asset-backed securities - 19 33 - 52 Available-for-sale debt securities total 229 431 76 - 736 Equity investments: Fixed income mutual funds: Fixed income mutual funds measured at net asset value 772 Total return bond funds 2,429 - - - 2,429 Equity mutual funds 883 - - - 883 Equity investments total 3,312 - - - 4,084 Investments in marketable securities total 3,541 431 76 - 4,820 Derivative assets: Interest rate swaps - 1,026 - - 1,026 Foreign currency swaps - 330 - - 330 Counterparty netting and collateral - - - (1,302 ) (1,302 ) Derivative assets total - 1,356 - (1,302 ) 54 Assets at fair value 3,541 1,787 76 (1,302 ) 4,874 Derivative liabilities: Interest rate swaps - (1,142 ) - - (1,142 ) Foreign currency swaps - (243 ) - - (243 ) Counterparty netting and collateral - - - 1,384 1,384 Liabilities at fair value - (1,385 ) - 1,384 (1 ) Net assets at fair value $ 3,541 $ 402 $ 76 $ 82 $ 4,873 |
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: December 31, 2021 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables Retail loan $ 70,904 $ - $ - $ 74,090 $ 74,090 Wholesale 2,864 - - 2,878 2,878 Real estate 5,041 - - 5,215 5,215 Working capital 2,238 - - 2,181 2,181 Financial liabilities Unsecured notes and loans payable $ 82,054 $ - $ 82,671 $ - $ 82,671 Secured notes and loans payable 28,068 - - 28,120 28,120 March 31, 2021 Carrying Total Fair value Level 1 Level 2 Level 3 value Financial assets Finance receivables Retail loan $ 65,808 $ - $ - $ 69,007 $ 69,007 Wholesale 6,132 - - 6,158 6,158 Real estate 5,142 - - 5,224 5,224 Working capital 2,154 - - 2,171 2,171 Financial liabilities Unsecured notes and loans payable $ 85,513 $ - $ 86,205 $ 555 $ 86,760 Secured notes and loans payable 24,212 - - 24,478 24,478 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information for our reportable operating segments, which includes allocated corporate expenses, is summarized as follows: Three months ended December 31, 2021 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 2,991 $ - $ - $ 2,991 Depreciation on operating leases 1,460 - - 1,460 Interest expense 346 - - 346 Net financing revenues 1,185 - - 1,185 Voluntary protection contract revenues and insurance earned premiums - 255 - 255 Investment and other income, net 12 64 - 76 Net financing and other revenues 1,197 319 - 1,516 Expenses: Provision for credit losses 45 - - 45 Operating and administrative expenses 293 101 - 394 Voluntary protection contract expenses and insurance losses - 96 - 96 Total expenses 338 197 - 535 Income before income taxes 859 122 - 981 Provision for income taxes 204 29 - 233 Net income $ 655 $ 93 $ - $ 748 Nine months ended December 31, 2021 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 9,022 $ - $ - $ 9,022 Depreciation on operating leases 4,400 - - 4,400 Interest expense 1,055 - - 1,055 Net financing revenues 3,567 - - 3,567 Voluntary protection contract revenues and insurance earned premiums - 758 - 758 Investment and other income, net 40 199 - 239 Net financing and other revenues 3,607 957 - 4,564 Expenses: Provision for credit losses 110 - - 110 Operating and administrative expenses 872 291 - 1,163 Voluntary protection contract expenses and insurance losses - 303 - 303 Total expenses 982 594 - 1,576 Income before income taxes 2,625 363 - 2,988 Provision for income taxes 610 87 - 697 Net income $ 2,015 $ 276 $ - $ 2,291 Total assets at December 31, 2021 $ 129,511 $ 6,745 $ (121 ) $ 136,135 Note 13 – Segment Information (Continued) Three months ended December 31, 2020 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 2,974 $ - $ - $ 2,974 Depreciation on operating leases 1,450 - - 1,450 Interest expense 491 - - 491 Net financing revenues 1,033 - - 1,033 Voluntary protection contract revenues and insurance earned premiums - 241 - 241 Investment and other income, net 21 158 - 179 Net financing and other revenues 1,054 399 - 1,453 Expenses: Provision for credit losses 118 - - 118 Operating and administrative expenses 268 86 - 354 Voluntary protection contract expenses and insurance losses - 98 - 98 Total expenses 386 184 - 570 Income before income taxes 668 215 - 883 Provision for income taxes 163 52 - 215 Net income $ 505 $ 163 $ - $ 668 Nine months ended December 31, 2020 Finance Voluntary protection Intercompany operations operations eliminations Total Total financing revenues $ 8,821 $ - $ - $ 8,821 Depreciation on operating leases 4,484 - - 4,484 Interest expense 1,534 - - 1,534 Net financing revenues 2,803 - - 2,803 Voluntary protection contract revenues and insurance earned premiums - 714 - 714 Investment and other income, net 76 369 - 445 Net financing and other revenues 2,879 1,083 - 3,962 Expenses: Provision for credit losses 366 - - 366 Operating and administrative expenses 818 270 - 1,088 Voluntary protection contract expenses and insurance losses - 265 - 265 Total expenses 1,184 535 - 1,719 Income before income taxes 1,695 548 - 2,243 Provision for income taxes 414 132 - 546 Net income $ 1,281 $ 416 $ - $ 1,697 Total assets at December 31, 2020 $ 128,442 $ 6,176 $ (127 ) $ 134,491 |
Interim Financial Data - Additi
Interim Financial Data - Additional Information (Details) | Apr. 01, 2021 |
ASU 2020-04 [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Change in accounting principle, accounting standards update, adoption date | Apr. 1, 2021 |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
ASU 2020-08 [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Change in accounting principle, accounting standards update, adoption date | Apr. 1, 2021 |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Investments in Marketable Sec_3
Investments in Marketable Securities - Additional Information (Details) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Marketable Securities [Abstract] | ||
Fair value option elected | $ 703,000,000 | $ 703,000,000 |
Private placement share redemption percentage | 1.00% | 1.00% |
Private placement share redemption amount | $ 250,000 | $ 250,000 |
Share redemption period | 90 days | |
Non-cash investing activities related to in-kind transactions | $ 0 | $ 1,100,000,000 |
Investments in Marketable Sec_4
Investments in Marketable Securities - Summary of Investments in Marketable Securities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | $ 1,339 | $ 726 |
Available-for-sale debt securities, Unrealized gains | 28 | 24 |
Available-for-sale debt securities, Unrealized losses | (12) | (14) |
Available-for-sale debt securities, Fair value | 1,355 | 736 |
Equity investments, Fair value | 3,766 | 4,084 |
Investments in marketable securities total | 5,121 | 4,820 |
U.S. government and agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 491 | 217 |
Available-for-sale debt securities, Unrealized gains | 5 | 4 |
Available-for-sale debt securities, Unrealized losses | (6) | (10) |
Available-for-sale debt securities, Fair value | 490 | 211 |
Foreign government and agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 32 | |
Available-for-sale debt securities, Unrealized gains | 0 | |
Available-for-sale debt securities, Unrealized losses | (1) | |
Available-for-sale debt securities, Fair value | 31 | |
Municipal debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 9 | 8 |
Available-for-sale debt securities, Unrealized gains | 2 | 2 |
Available-for-sale debt securities, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, Fair value | 11 | 10 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 25 | 196 |
Available-for-sale debt securities, Unrealized gains | 0 | 0 |
Available-for-sale debt securities, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, Fair value | 25 | 196 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 589 | 177 |
Available-for-sale debt securities, Unrealized gains | 15 | 12 |
Available-for-sale debt securities, Unrealized losses | (3) | (2) |
Available-for-sale debt securities, Fair value | 601 | 187 |
U.S. government agency mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 21 | 31 |
Available-for-sale debt securities, Unrealized gains | 1 | 1 |
Available-for-sale debt securities, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, Fair value | 22 | 32 |
Non-agency residential mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 11 | 1 |
Available-for-sale debt securities, Unrealized gains | 0 | 0 |
Available-for-sale debt securities, Unrealized losses | 0 | 0 |
Available-for-sale debt securities, Fair value | 11 | 1 |
Non-agency commercial mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 75 | 47 |
Available-for-sale debt securities, Unrealized gains | 2 | 2 |
Available-for-sale debt securities, Unrealized losses | (1) | (2) |
Available-for-sale debt securities, Fair value | 76 | 47 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 86 | 49 |
Available-for-sale debt securities, Unrealized gains | 3 | 3 |
Available-for-sale debt securities, Unrealized losses | (1) | 0 |
Available-for-sale debt securities, Fair value | $ 88 | $ 52 |
Investments in Marketable Sec_5
Investments in Marketable Securities - Schedule of Gains and Losses on Investments in Marketable Securities Presented in Our Consolidated Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Available-for-sale debt securities: | ||||
Unrealized (losses) gains on securities for which the fair value option was elected | $ (4) | $ 0 | $ 3 | $ 0 |
Realized (losses) gains | (1) | 2 | (1) | 19 |
Equity investments: | ||||
Unrealized gains | 26 | 49 | 84 | 188 |
Realized gains on sales | $ 0 | $ 3 | $ 22 | $ 15 |
Investments in Marketable Sec_6
Investments in Marketable Securities - Summary of Contractual Maturities of Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 | |
Available-for-sale debt securities, Amortized cost | |||
Due within 1 Year, Amortized cost | $ 127 | ||
Due after 1 Year through 5 Years, Amortized cost | 372 | ||
Due after 5 Years through 10 Years, Amortized cost | 357 | ||
Due after 10 Years, Amortized cost | 290 | ||
Mortgage-backed and asset-backed securities, Amortized cost | [1] | 193 | |
Available-for-sale debt securities, Amortized cost | $ 1,339 | $ 726 | |
Debt Securities, Available-for-sale, Maturity Allocation [Extensible List] | us-gaap:DebtSecuritiesMaturityAllocationContractualMaturityMember | ||
Available-for-sale debt securities, Fair value | |||
Due within 1 Year, Fair value | $ 127 | ||
Due after 1 Year through 5 Years, Fair value | 375 | ||
Due after 5 Years through 10 Years, Fair value | 359 | ||
Due after 10 Years, Fair value | 297 | ||
Mortgage-backed and asset-backed securities, Fair value | [1] | 197 | |
Total, Fair value | $ 1,355 | $ 736 | |
Debt Securities, Available-for-sale, Maturity Allocation [Extensible List] | us-gaap:DebtSecuritiesMaturityAllocationContractualMaturityMember | ||
[1] | Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities have multiple maturity dates. |
Finance Receivables, Net - Net
Finance Receivables, Net - Net Financing Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | $ 82,110 | $ 80,370 |
Allowance for credit losses | (1,185) | (1,178) |
Finance receivables, net | 80,925 | 79,192 |
Finance Receivables, Net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 81,981 | 80,633 |
Deferred origination costs | 1,305 | 1,145 |
Deferred income | (1,176) | (1,408) |
Allowance for credit losses | (1,185) | (1,178) |
Finance receivables, net | 80,925 | 79,192 |
Finance Receivables, Net [Member] | Retail receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 71,727 | 66,991 |
Allowance for credit losses | (1,140) | (1,075) |
Finance Receivables, Net [Member] | Dealer financing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 10,254 | 13,642 |
Allowance for credit losses | $ (45) | $ (103) |
Finance Receivables, Net - Ne_2
Finance Receivables, Net - Net Financing Receivables (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | $ 82,110 | $ 80,370 |
Finance Receivables, Net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 81,981 | 80,633 |
Finance Receivables, Net [Member] | Securitized retail receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | $ 21,900 | $ 22,100 |
Finance Receivables, Net - Addi
Finance Receivables, Net - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable accrued interest before allowance for credit loss | $ 214 | $ 187 |
Retail Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable accrued interest before allowance for credit loss | 193 | 160 |
Dealer Products [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable accrued interest before allowance for credit loss | $ 21 | $ 27 |
Finance Receivables, Net - Sche
Finance Receivables, Net - Schedule of Amortized Cost Basis of Retail Loan Portfolio and Dealer Products Portfolio by Credit Quality Indicator (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | $ 1,683 | $ 2,400 |
Year two, originated, fiscal year before current fiscal year | 1,687 | 703 |
Year three, originated, two years before current fiscal year | 496 | 805 |
Year four, originated, three years before current fiscal year | 730 | 431 |
Year five, originated, four years before current fiscal year | 332 | 455 |
Originated, more than five years before current fiscal year | 1,637 | 1,804 |
Revolving loans | 3,689 | 7,044 |
Total | 10,254 | 13,642 |
Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 25,396 | 32,228 |
Year two, originated, fiscal year before current fiscal year | 24,862 | 16,249 |
Year three, originated, two years before current fiscal year | 11,162 | 9,127 |
Year four, originated, three years before current fiscal year | 5,796 | 6,090 |
Year five, originated, four years before current fiscal year | 3,504 | 2,497 |
Originated, more than five years before current fiscal year | 1,136 | 537 |
Total | 71,856 | 66,728 |
Current [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 25,098 | 32,026 |
Year two, originated, fiscal year before current fiscal year | 24,373 | 16,047 |
Year three, originated, two years before current fiscal year | 10,913 | 8,972 |
Year four, originated, three years before current fiscal year | 5,626 | 5,977 |
Year five, originated, four years before current fiscal year | 3,390 | 2,435 |
Originated, more than five years before current fiscal year | 1,057 | 496 |
Total | 70,457 | 65,953 |
30-59 Days Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 215 | 147 |
Year two, originated, fiscal year before current fiscal year | 341 | 145 |
Year three, originated, two years before current fiscal year | 177 | 114 |
Year four, originated, three years before current fiscal year | 119 | 83 |
Year five, originated, four years before current fiscal year | 81 | 46 |
Originated, more than five years before current fiscal year | 52 | 27 |
Total | 985 | 562 |
60-89 Days Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 54 | 37 |
Year two, originated, fiscal year before current fiscal year | 97 | 39 |
Year three, originated, two years before current fiscal year | 49 | 28 |
Year four, originated, three years before current fiscal year | 36 | 21 |
Year five, originated, four years before current fiscal year | 22 | 11 |
Originated, more than five years before current fiscal year | 16 | 8 |
Total | 274 | 144 |
90 Days or Greater Past Due [Member] | Retail Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 29 | 18 |
Year two, originated, fiscal year before current fiscal year | 51 | 18 |
Year three, originated, two years before current fiscal year | 23 | 13 |
Year four, originated, three years before current fiscal year | 15 | 9 |
Year five, originated, four years before current fiscal year | 11 | 5 |
Originated, more than five years before current fiscal year | 11 | 6 |
Total | 140 | 69 |
Wholesale [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 2,866 | 6,157 |
Total | 2,866 | 6,157 |
Wholesale [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 2,852 | 5,893 |
Total | 2,852 | 5,893 |
Wholesale [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 12 | 218 |
Total | 12 | 218 |
Wholesale [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 2 | 35 |
Total | 2 | 35 |
Wholesale [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 0 | 11 |
Total | 0 | 11 |
Real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 1,164 | 1,895 |
Year two, originated, fiscal year before current fiscal year | 1,318 | 369 |
Year three, originated, two years before current fiscal year | 280 | 599 |
Year four, originated, three years before current fiscal year | 568 | 389 |
Year five, originated, four years before current fiscal year | 292 | 342 |
Originated, more than five years before current fiscal year | 1,454 | 1,609 |
Revolving loans | 0 | 0 |
Total | 5,076 | 5,203 |
Real estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 1,164 | 1,874 |
Year two, originated, fiscal year before current fiscal year | 1,316 | 320 |
Year three, originated, two years before current fiscal year | 280 | 596 |
Year four, originated, three years before current fiscal year | 568 | 356 |
Year five, originated, four years before current fiscal year | 292 | 312 |
Originated, more than five years before current fiscal year | 1,434 | 1,493 |
Revolving loans | 0 | 0 |
Total | 5,054 | 4,951 |
Real estate [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 8 |
Year two, originated, fiscal year before current fiscal year | 2 | 49 |
Year three, originated, two years before current fiscal year | 0 | 3 |
Year four, originated, three years before current fiscal year | 0 | 20 |
Year five, originated, four years before current fiscal year | 0 | 9 |
Originated, more than five years before current fiscal year | 12 | 99 |
Revolving loans | 0 | 0 |
Total | 14 | 188 |
Real estate [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 13 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 12 |
Originated, more than five years before current fiscal year | 8 | 17 |
Revolving loans | 0 | 0 |
Total | 8 | 42 |
Real estate [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 13 |
Year five, originated, four years before current fiscal year | 0 | 9 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 22 |
Working capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 519 | 505 |
Year two, originated, fiscal year before current fiscal year | 369 | 334 |
Year three, originated, two years before current fiscal year | 216 | 206 |
Year four, originated, three years before current fiscal year | 162 | 42 |
Year five, originated, four years before current fiscal year | 40 | 113 |
Originated, more than five years before current fiscal year | 183 | 195 |
Revolving loans | 823 | 887 |
Total | 2,312 | 2,282 |
Working capital [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 519 | 503 |
Year two, originated, fiscal year before current fiscal year | 368 | 334 |
Year three, originated, two years before current fiscal year | 216 | 200 |
Year four, originated, three years before current fiscal year | 162 | 41 |
Year five, originated, four years before current fiscal year | 40 | 106 |
Originated, more than five years before current fiscal year | 183 | 176 |
Revolving loans | 823 | 878 |
Total | 2,311 | 2,238 |
Working capital [Member] | Credit Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 1 |
Year two, originated, fiscal year before current fiscal year | 1 | 0 |
Year three, originated, two years before current fiscal year | 0 | 6 |
Year four, originated, three years before current fiscal year | 0 | 1 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 19 |
Revolving loans | 0 | 9 |
Total | 1 | 36 |
Working capital [Member] | At Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 1 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 7 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 8 |
Working capital [Member] | Default [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one, originated, current fiscal year | 0 | 0 |
Year two, originated, fiscal year before current fiscal year | 0 | 0 |
Year three, originated, two years before current fiscal year | 0 | 0 |
Year four, originated, three years before current fiscal year | 0 | 0 |
Year five, originated, four years before current fiscal year | 0 | 0 |
Originated, more than five years before current fiscal year | 0 | 0 |
Revolving loans | 0 | 0 |
Total | $ 0 | $ 0 |
Finance Receivables, Net - Agin
Finance Receivables, Net - Aging of Amortized Cost Basis of Finance Receivables by Class (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | $ 82,110 | $ 80,370 |
90 Days or greater past due and accruing | 89 | 39 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 985 | 562 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 274 | 144 |
90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 140 | 69 |
Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 1,399 | 775 |
Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 80,711 | 79,595 |
Retail Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 71,856 | 66,728 |
90 Days or greater past due and accruing | 89 | 39 |
Retail Loan [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 985 | 562 |
Retail Loan [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 274 | 144 |
Retail Loan [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 140 | 69 |
Retail Loan [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 1,399 | 775 |
Retail Loan [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 70,457 | 65,953 |
Wholesale [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 2,866 | 6,157 |
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 Finance receivables | 0 | 0 |
Wholesale [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Wholesale [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Wholesale [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Wholesale [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 2,866 | 6,157 |
Real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 5,076 | 5,203 |
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 Finance receivables | 0 | 0 |
Real estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Real estate [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Real estate [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Real estate [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 5,076 | 5,203 |
Working capital [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 2,312 | 2,282 |
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 Finance receivables | 0 | 0 |
Working capital [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Working capital [Member] | 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Working capital [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | 0 | 0 |
Working capital [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance receivables | $ 2,312 | $ 2,282 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance for Credit Losses and Finance Receivables by Portfolio Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Allowance For Credit Losses [Abstract] | ||||
Provision for credit losses | $ 110 | $ 366 | ||
Finance Receivables, Net [Member] | ||||
Financing Receivable Allowance For Credit Losses [Abstract] | ||||
Allowance for credit losses at beginning of period | $ 1,224 | $ 1,174 | 1,215 | 727 |
Charge-offs | (64) | (113) | (152) | (228) |
Recoveries | 14 | 20 | 46 | 42 |
Provision for credit losses | 45 | 118 | 110 | 366 |
Allowance for credit losses at end of period | 1,219 | 1,199 | 1,219 | 1,199 |
Finance Receivables, Net [Member] | ASU 2016-13 [Member] | ||||
Financing Receivable Allowance For Credit Losses [Abstract] | ||||
Adoption of ASU 2016-13 | 0 | 292 | ||
Finance Receivables, Net [Member] | Retail loan [Member] | ||||
Financing Receivable Allowance For Credit Losses [Abstract] | ||||
Allowance for credit losses at beginning of period | 1,135 | 1,020 | 1,075 | 486 |
Charge-offs | (64) | (113) | (152) | (228) |
Recoveries | 14 | 12 | 46 | 33 |
Provision for credit losses | 55 | 133 | 171 | 480 |
Allowance for credit losses at end of period | 1,140 | 1,052 | 1,140 | 1,052 |
Finance Receivables, Net [Member] | Retail loan [Member] | ASU 2016-13 [Member] | ||||
Financing Receivable Allowance For Credit Losses [Abstract] | ||||
Adoption of ASU 2016-13 | 0 | 281 | ||
Finance Receivables, Net [Member] | Dealer products [Member] | ||||
Financing Receivable Allowance For Credit Losses [Abstract] | ||||
Allowance for credit losses at beginning of period | 89 | 154 | 140 | 241 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 8 | 0 | 9 |
Provision for credit losses | (10) | (15) | (61) | (114) |
Allowance for credit losses at end of period | 79 | $ 147 | $ 79 | 147 |
Finance Receivables, Net [Member] | Dealer products [Member] | ASU 2016-13 [Member] | ||||
Financing Receivable Allowance For Credit Losses [Abstract] | ||||
Adoption of ASU 2016-13 | $ 0 | $ 11 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Allowance for Credit Losses and Finance Receivables by Portfolio Segment (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finance Receivables, Net [Member] | Dealer Products [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for credit losses related to off-balance sheet commitments | $ 34 | $ 37 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Additional Information (Details) - Finance Receivables, Net [Member] - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Increase in provision for credit losses | $ 4 | $ 472 |
ASU 2016-13 [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Increase in provision for credit losses | 292 | |
COVID-19 [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Increase in provision for expected credit losses | 180 | |
TMNA [Member] | Financial Guarantee [Member] | Dealer Products [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Ending Balance: collectively evaluated for impairment | 922 | 1,025 |
Private Toyota Distributors [Member] | Financial Guarantee [Member] | Dealer Products [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Ending Balance: collectively evaluated for impairment | $ 183 | $ 164 |
Investments in Operating Leas_3
Investments in Operating Leases, Net - Investments in Operating Leases, Net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases, net | $ 36,836 | $ 37,091 |
Investments in operating leases [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | 47,397 | 48,337 |
Investments In Operating Leases, Net [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Deferred origination (fees) and costs, net | (56) | (101) |
Deferred income | (1,488) | (1,759) |
Accumulated depreciation | $ (9,017) | $ (9,386) |
Investments in Operating Leas_4
Investments in Operating Leases, Net - Investments in Operating Leases, Net (Parenthetical) (Details) - USD ($) $ in Billions | Dec. 31, 2021 | Mar. 31, 2021 |
Securitized investments in operating leases [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Investments in operating leases | $ 16.8 | $ 9.3 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities and Interest Expense - Derivative Activity Impact on Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | $ 66,564 | $ 51,399 |
Fair value | 1,083 | 1,356 |
Counterparty netting | (640) | (840) |
Collateral held | (380) | (462) |
Other assets [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 63,788 | 44,125 |
Fair value | 998 | 1,026 |
Other assets [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 2,776 | 7,274 |
Fair value | 85 | 330 |
Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 40,134 | 59,383 |
Fair value | 938 | 1,385 |
Counterparty netting | (640) | (840) |
Collateral posted | (298) | (544) |
Other liabilities [Member] | Interest rate swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 33,127 | 55,062 |
Fair value | 514 | 1,142 |
Other liabilities [Member] | Foreign currency swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional | 7,007 | 4,321 |
Fair value | 424 | 243 |
Carrying value [Member] | Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying value of derivative contracts – Other assets | 63 | 54 |
Carrying value [Member] | Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Carrying value of derivative contracts – Other liabilities | $ 0 | $ 1 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities and Interest Expense - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Collateral held in excess of the fair value of derivative assets | $ 1 | $ 29 |
Initial margin and collateral posted in excess of the fair value of derivative liabilities | $ 121 | $ 10 |
Derivatives, Hedging Activiti_5
Derivatives, Hedging Activities and Interest Expense - Components of Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Interest expense on debt | $ 362 | $ 460 | $ 1,134 | $ 1,531 |
Interest expense on derivatives | 23 | 103 | 137 | 334 |
Interest expense on debt and derivatives | 385 | 563 | 1,271 | 1,865 |
(Gains) losses on debt denominated in foreign currencies | (60) | 655 | (338) | 1,703 |
Losses (gains) on foreign currency swaps | 151 | (658) | 509 | (1,754) |
Total interest expense | 346 | 491 | 1,055 | 1,534 |
Interest Expense | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gains on U.S. dollar interest rate swaps | $ (130) | $ (69) | $ (387) | $ (280) |
Debt and Credit Facilities - De
Debt and Credit Facilities - Debt and Related Weighted Average Contractual Interest Rates (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt, Face value | $ 110,407 | $ 110,015 |
Debt, Carrying value | $ 110,122 | $ 109,725 |
Weighted average contractual interest rates | 1.10% | 1.31% |
Unsecured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Face value | $ 82,293 | $ 85,759 |
Debt, Carrying value | $ 82,054 | $ 85,513 |
Weighted average contractual interest rates | 1.17% | 1.31% |
Secured notes and loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Face value | $ 28,114 | $ 24,256 |
Debt, Carrying value | $ 28,068 | $ 24,212 |
Weighted average contractual interest rates | 0.91% | 1.29% |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Details 1) - USD ($) $ in Billions | Dec. 31, 2021 | Mar. 31, 2021 |
Debt Disclosure [Abstract] | ||
Commercial paper outstanding | $ 17 | $ 17 |
Debt and Credit Facilities - _2
Debt and Credit Facilities - Additional Information (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 |
364 Day Credit Agreement Expiring 2023 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 5,000,000,000 | |
Credit facilities amount outstanding | 0 | $ 0 |
Three Year Agreement Expiring 2025 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 5,000,000,000 | |
Credit facilities amount outstanding | 0 | 0 |
Five Year Agreement Expiring 2027 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 5,000,000,000 | |
Credit facilities amount outstanding | 0 | 0 |
Revolving Securitization Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 7,000,000,000 | |
Credit facilities amount outstanding | 3,700,000,000 | 3,200,000,000 |
Total Committed Bank Credit Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 4,600,000,000 | |
Credit facilities amount outstanding | 0 | 0 |
Committed Bank Credit Facility Expiring 2022 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 350,000,000 | |
Committed Bank Credit Facility Expiring 2023 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 2,200,000,000 | |
Committed Bank Credit Facility Expiring 2024 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 300,000,000 | |
Committed Bank Credit Facility Expiring 2025 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,700,000,000 | |
Three Year Revolving Credit Facility Expiring 2025 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 5,000,000,000 | |
Credit facilities amount outstanding | $ 0 | $ 0 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Assets and Liabilities related to Variable Interest Entities Securitization Transactions (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 2,372 | $ 1,957 |
Net securitized assets | 80,925 | 79,192 |
Other assets | 2,450 | 2,473 |
Debt | 110,122 | 109,725 |
Other liabilities | 5,725 | 5,548 |
Other assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 1,849 | 1,957 |
Net securitized assets | 34,071 | 28,344 |
Other assets | 73 | 89 |
Other liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 28,068 | 24,212 |
Other liabilities | 10 | 14 |
Retail Finance Receivables [Member] | Other assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 1,233 | 1,521 |
Net securitized assets | 21,637 | 21,745 |
Other assets | 51 | 46 |
Retail Finance Receivables [Member] | Other liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 19,230 | 19,665 |
Other liabilities | 8 | 13 |
Investments In Operating Leases, Net [Member] | Other assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 616 | 436 |
Net securitized assets | 12,434 | 6,599 |
Other assets | 22 | 43 |
Investments In Operating Leases, Net [Member] | Other liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | 8,838 | 4,547 |
Other liabilities | $ 2 | $ 1 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Variable Interest Entities [Abstract] | ||
Securities retained by TMCC | $ 1,515 | $ 1,409 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments and Guarantees (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Commitments: | ||
Credit facilities commitments with dealers | $ 3,131 | $ 2,338 |
Commitments under operating lease agreements | 124 | 141 |
Total commitments | 3,255 | 2,479 |
Total commitments and guarantees | 3,355 | 2,579 |
Performance Guarantee [Member] | Putnam and Gibson Counties [Member] | ||
Commitments: | ||
Guarantees of affiliate pollution control and solid waste disposal bonds | $ 100 | $ 100 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Commitments And Contingencies [Line Items] | |||||
Commitments under operating lease agreements | $ 110,000,000 | $ 110,000,000 | |||
Lease description | Lease terms may contain renewal and extension options or early termination features. Generally, these options do not impact the lease term because TMCC is not reasonably certain that it will exercise the options. These lease agreements do not impose restrictions on our ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements, nor do they have residual value guarantees. We exclude from our Consolidated Balance Sheets leases with a term equal to one year or less and do not separate non-lease components from our real estate leases. | ||||
Indemnification provisions | 0 | $ 0 | $ 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 | 100,000,000 | ||
TMNA [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Lease agreement expiration date | 2032-08 | ||||
Total operating lease expense, including payments to affiliates | $ 8,000,000 | $ 8,000,000 | 25,000,000 | $ 28,000,000 | |
TMCC-affiliated companies [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Commitments under operating lease agreements | 86,000,000 | 86,000,000 | $ 93,000,000 | ||
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 | 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 | 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 | 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 | 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 | 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 | $ 10,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Commitments under Operating Lease Agreements (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Amounts due on operating lease liabilities | ||
Remainder of fiscal year | $ 5 | |
Year 1 | 19 | |
Year 2 | 16 | |
Year 3 | 14 | |
Year 4 | 13 | |
Year 4 after | 57 | |
Total | 124 | $ 141 |
Present value discount | (14) | |
Total operating lease liability | $ 110 |
Commitments and Contingencies_4
Commitments and Contingencies - Summary of Additional Information Related to Operating Lease Agreements (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2021USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
ROU assets | $ 101 |
Weighted average remaining lease term (in years) | 8 years 4 months 24 days |
Weighted average discount rate | 2.76% |
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows | $ 21 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 233 | $ 215 | $ 697 | $ 546 | |
Effective tax rate | 24.00% | 24.00% | 23.00% | 24.00% | |
Net deferred income tax liability | $ 2,400 | $ 2,400 | $ 2,900 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Aug. 05, 2021 | Nov. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Mar. 31, 2021 |
Related Party Transaction [Line Items] | |||||
Subvention support receivable | $ 56,000,000 | $ 184,000,000 | |||
Toyota Finance New Zealand Limited [Member] | Financing Support to Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Increase in financing support available to affiliates | $ 250,000,000 | ||||
Toyota Financial Savings Bank [Member] | Financing Support to Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Increase in financing support available to affiliates | $ 1,000,000,000 | ||||
Toyota Finance Corporation [Member] | Financing Support to Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maximum borrowing capacity | $ 100,000,000 | ||||
Credit facilities amount outstanding | $ 100,000,000 | ||||
Interest rate | 0.0175% | ||||
Repayment date | 2023-11 |
Related Party Transactions - Re
Related Party Transactions - Related Party Transactions Included in Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net financing revenues: | ||||
Depreciation on operating leases | $ (1,460) | $ (1,450) | $ (4,400) | $ (4,484) |
Voluntary protection contract revenues and insurance earned premiums: | ||||
Voluntary protection contract revenues and insurance earned premiums | 255 | 241 | 758 | 714 |
Expenses: | ||||
Operating and administrative expenses | 394 | 354 | 1,163 | 1,088 |
TMCC-affiliated companies [Member] | ||||
Net financing revenues: | ||||
Manufacturer's subvention and other revenues | 425 | 503 | 1,361 | 1,504 |
Depreciation on operating leases | (14) | (33) | (67) | (82) |
Interest expense: | ||||
Credit support fees, interest and other expenses | 25 | 26 | 76 | 93 |
Voluntary protection contract revenues and insurance earned premiums: | ||||
Voluntary protection contract revenues and insurance earned premiums | 42 | 43 | 127 | 130 |
Investment and other income, net: | ||||
Interest and other income | 1 | 3 | 6 | 16 |
Expenses: | ||||
Operating and administrative expenses | $ 19 | $ 20 | $ 62 | $ 63 |
Related Party Transactions - _2
Related Party Transactions - Related Party Transactions Included in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Cash and cash equivalents | ||
Cash and cash equivalents | $ 8,431 | $ 8,195 |
TMCC-affiliated companies [Member] | ||
Investments in marketable securities | ||
Commercial paper | 25 | 196 |
Finance receivables, net | ||
Accounts receivable | 88 | 140 |
Deferred retail subvention income | (932) | (1,156) |
Investments in operating leases, net | ||
Investments in operating leases, net | (217) | (236) |
Deferred lease subvention income | (1,120) | (1,528) |
Other assets | ||
Notes receivable | 768 | 869 |
Other receivables, net | 80 | 83 |
Other liabilities | ||
Unearned voluntary protection contract revenues and insurance earned premiums | 376 | 352 |
Other payables, net | 383 | 306 |
Notes payable | 36 | 19 |
Commercial paper [Member] | TMCC-affiliated companies [Member] | ||
Cash and cash equivalents | ||
Cash and cash equivalents | $ 25 | $ 6 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | $ 1,355 | $ 736 |
Equity investments | 3,766 | 4,084 |
Investments in marketable securities total | 5,121 | 4,820 |
Foreign government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 31 | |
U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 490 | 211 |
Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 11 | 10 |
Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 601 | 187 |
U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 22 | 32 |
Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 11 | 1 |
Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 76 | 47 |
Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 88 | 52 |
Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 1,355 | 736 |
Equity investments | 3,766 | 4,084 |
Investments in marketable securities total | 5,121 | 4,820 |
Derivative assets | 63 | 54 |
Counterparty netting and collateral | (1,020) | (1,302) |
Assets at fair value | 5,184 | 4,874 |
Counterparty netting and collateral | 938 | 1,384 |
Liabilities at fair value | 0 | (1) |
Net assets at fair value | 5,184 | 4,873 |
Recurring [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 25 | 196 |
Recurring [Member] | Foreign government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 31 | |
Recurring [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 490 | 211 |
Recurring [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 11 | 10 |
Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 601 | 187 |
Recurring [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 22 | 32 |
Recurring [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 11 | 1 |
Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 76 | 47 |
Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 88 | 52 |
Recurring [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 1,569 | 2,429 |
Recurring [Member] | Equity mutual funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 992 | 883 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Equity investments | 0 | 0 |
Investments in marketable securities total | 0 | 0 |
Derivative assets | (1,020) | (1,302) |
Counterparty netting and collateral | (1,020) | (1,302) |
Assets at fair value | (1,020) | (1,302) |
Counterparty netting and collateral | 938 | 1,384 |
Liabilities at fair value | 938 | 1,384 |
Net assets at fair value | (82) | 82 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Foreign government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | |
Recurring [Member] | Counterparty Netting & Collateral [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | 0 |
Recurring [Member] | Counterparty Netting & Collateral [Member] | Equity mutual funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | 0 |
Recurring [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 85 | 330 |
Derivative liabilities | (424) | (243) |
Recurring [Member] | Foreign currency swaps [Member] | Counterparty Netting & Collateral [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 998 | 1,026 |
Derivative liabilities | (514) | (1,142) |
Recurring [Member] | Interest rate swaps [Member] | Counterparty Netting & Collateral [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 484 | 229 |
Equity investments | 2,561 | 3,312 |
Investments in marketable securities total | 3,045 | 3,541 |
Derivative assets | 0 | 0 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 3,045 | 3,541 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | 0 | 0 |
Net assets at fair value | 3,045 | 3,541 |
Recurring [Member] | Level 1 [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 20 |
Recurring [Member] | Level 1 [Member] | Foreign government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | |
Recurring [Member] | Level 1 [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 484 | 209 |
Recurring [Member] | Level 1 [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 1,569 | 2,429 |
Recurring [Member] | Level 1 [Member] | Equity mutual funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 992 | 883 |
Recurring [Member] | Level 1 [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 836 | 431 |
Equity investments | 0 | 0 |
Investments in marketable securities total | 836 | 431 |
Derivative assets | 1,083 | 1,356 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 1,919 | 1,787 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | (938) | (1,385) |
Net assets at fair value | 981 | 402 |
Recurring [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 25 | 176 |
Recurring [Member] | Level 2 [Member] | Foreign government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 31 | |
Recurring [Member] | Level 2 [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 6 | 2 |
Recurring [Member] | Level 2 [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 11 | 10 |
Recurring [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 601 | 187 |
Recurring [Member] | Level 2 [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 22 | 32 |
Recurring [Member] | Level 2 [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 8 | 0 |
Recurring [Member] | Level 2 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 60 | 5 |
Recurring [Member] | Level 2 [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 72 | 19 |
Recurring [Member] | Level 2 [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Equity mutual funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 85 | 330 |
Derivative liabilities | (424) | (243) |
Recurring [Member] | Level 2 [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 998 | 1,026 |
Derivative liabilities | (514) | (1,142) |
Recurring [Member] | Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 35 | 76 |
Equity investments | 0 | 0 |
Investments in marketable securities total | 35 | 76 |
Derivative assets | 0 | 0 |
Counterparty netting and collateral | 0 | 0 |
Assets at fair value | 35 | 76 |
Counterparty netting and collateral | 0 | 0 |
Liabilities at fair value | 0 | 0 |
Net assets at fair value | 35 | 76 |
Recurring [Member] | Level 3 [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Foreign government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | |
Recurring [Member] | Level 3 [Member] | U.S. government and agency obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Municipal debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Corporate debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | U.S. government agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Non-agency residential mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 3 | 1 |
Recurring [Member] | Level 3 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 16 | 42 |
Recurring [Member] | Level 3 [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Debt securities | 16 | 33 |
Recurring [Member] | Level 3 [Member] | Fixed income total return bond funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Equity mutual funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Foreign currency swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Interest rate swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Fixed income mutual funds measured at net asset value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | 1,205 | 772 |
Recurring [Member] | Fixed income mutual funds measured at net asset value [Member] | Counterparty Netting & Collateral [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity investments | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Not Carried at Fair Value on Recurring Basis on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | $ 82,054 | |
Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 28,068 | |
Fair value [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 82,671 | $ 86,760 |
Fair value [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 28,120 | 24,478 |
Fair value [Member] | Level 1 [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 1 [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 2 [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 82,671 | 86,205 |
Fair value [Member] | Level 2 [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 0 |
Fair value [Member] | Level 3 [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 0 | 555 |
Fair value [Member] | Level 3 [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 28,120 | 24,478 |
Carrying value [Member] | Unsecured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 85,513 | |
Carrying value [Member] | Secured Notes and Loans Payable [Member] | ||
Financial liabilities | ||
Financial liabilities | 24,212 | |
Retail Loan [Member] | ||
Financial assets | ||
Finance receivables, net | 70,904 | |
Retail Loan [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 74,090 | 69,007 |
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 | 74,090 | 69,007 |
Retail Loan [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 65,808 | |
Wholesale [Member] | ||
Financial assets | ||
Finance receivables, net | 2,864 | |
Wholesale [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 2,878 | 6,158 |
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 | 2,878 | 6,158 |
Wholesale [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 6,132 | |
Real estate [Member] | ||
Financial assets | ||
Finance receivables, net | 5,041 | |
Real estate [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 5,215 | 5,224 |
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 | 5,215 | 5,224 |
Real estate [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | 5,142 | |
Working capital [Member] | ||
Financial assets | ||
Finance receivables, net | 2,238 | |
Working capital [Member] | Fair value [Member] | ||
Financial assets | ||
Finance receivables, net | 2,181 | 2,171 |
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 | $ 2,181 | 2,171 |
Working capital [Member] | Carrying value [Member] | ||
Financial assets | ||
Finance receivables, net | $ 2,154 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Finance receivables from related party | $ 88 | $ 140 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Total financing revenues | $ 2,991 | $ 2,974 | $ 9,022 | $ 8,821 | |
Depreciation on operating leases | 1,460 | 1,450 | 4,400 | 4,484 | |
Interest expense | 346 | 491 | 1,055 | 1,534 | |
Net financing revenues | 1,185 | 1,033 | 3,567 | 2,803 | |
Voluntary protection contract revenues and insurance earned premiums | 255 | 241 | 758 | 714 | |
Investment and other income, net | 76 | 179 | 239 | 445 | |
Net financing revenues and other revenues | 1,516 | 1,453 | 4,564 | 3,962 | |
Expenses: | |||||
Provision for credit losses | 45 | 118 | 110 | 366 | |
Operating and administrative expenses | 394 | 354 | 1,163 | 1,088 | |
Voluntary protection contract expenses and insurance losses | 96 | 98 | 303 | 265 | |
Total expenses | 535 | 570 | 1,576 | 1,719 | |
Income before income taxes | 981 | 883 | 2,988 | 2,243 | |
Provision for income taxes | 233 | 215 | 697 | 546 | |
Net income | 748 | 668 | 2,291 | 1,697 | |
Total assets | 136,135 | 134,491 | 136,135 | 134,491 | $ 133,728 |
Intercompany Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total financing revenues | 0 | 0 | 0 | 0 | |
Depreciation on operating leases | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net financing revenues | 0 | 0 | 0 | 0 | |
Voluntary protection contract revenues and insurance earned premiums | 0 | 0 | 0 | 0 | |
Investment and other income, net | 0 | 0 | 0 | 0 | |
Net financing revenues and other revenues | 0 | 0 | 0 | 0 | |
Expenses: | |||||
Provision for credit losses | 0 | 0 | 0 | 0 | |
Operating and administrative expenses | 0 | 0 | 0 | 0 | |
Voluntary protection contract expenses and insurance losses | 0 | 0 | 0 | 0 | |
Total expenses | 0 | 0 | 0 | 0 | |
Income before income taxes | 0 | 0 | 0 | 0 | |
Provision for income taxes | 0 | 0 | 0 | 0 | |
Net income | 0 | 0 | 0 | 0 | |
Total assets | (121) | (127) | (121) | (127) | |
Finance Operations [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total financing revenues | 2,991 | 2,974 | 9,022 | 8,821 | |
Depreciation on operating leases | 1,460 | 1,450 | 4,400 | 4,484 | |
Interest expense | 346 | 491 | 1,055 | 1,534 | |
Net financing revenues | 1,185 | 1,033 | 3,567 | 2,803 | |
Voluntary protection contract revenues and insurance earned premiums | 0 | 0 | 0 | 0 | |
Investment and other income, net | 12 | 21 | 40 | 76 | |
Net financing revenues and other revenues | 1,197 | 1,054 | 3,607 | 2,879 | |
Expenses: | |||||
Provision for credit losses | 45 | 118 | 110 | 366 | |
Operating and administrative expenses | 293 | 268 | 872 | 818 | |
Voluntary protection contract expenses and insurance losses | 0 | 0 | 0 | 0 | |
Total expenses | 338 | 386 | 982 | 1,184 | |
Income before income taxes | 859 | 668 | 2,625 | 1,695 | |
Provision for income taxes | 204 | 163 | 610 | 414 | |
Net income | 655 | 505 | 2,015 | 1,281 | |
Total assets | 129,511 | 128,442 | 129,511 | 128,442 | |
Voluntary Protection Operations [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total financing revenues | 0 | 0 | 0 | 0 | |
Depreciation on operating leases | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net financing revenues | 0 | 0 | 0 | 0 | |
Voluntary protection contract revenues and insurance earned premiums | 255 | 241 | 758 | 714 | |
Investment and other income, net | 64 | 158 | 199 | 369 | |
Net financing revenues and other revenues | 319 | 399 | 957 | 1,083 | |
Expenses: | |||||
Provision for credit losses | 0 | 0 | 0 | 0 | |
Operating and administrative expenses | 101 | 86 | 291 | 270 | |
Voluntary protection contract expenses and insurance losses | 96 | 98 | 303 | 265 | |
Total expenses | 197 | 184 | 594 | 535 | |
Income before income taxes | 122 | 215 | 363 | 548 | |
Provision for income taxes | 29 | 52 | 87 | 132 | |
Net income | 93 | 163 | 276 | 416 | |
Total assets | $ 6,745 | $ 6,176 | $ 6,745 | $ 6,176 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||||
Unearned voluntary protection contract revenues | $ 2,400 | $ 2,400 | ||||
Unearned amounts in voluntary protection contract revenues, recognized | $ 170 | $ 169 | $ 545 | $ 537 | ||
Other liabilities [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Unearned voluntary protection contract revenues | $ 2,600 | $ 2,600 | $ 2,500 | $ 2,400 | ||
Accounting Standards Update 2014-09 [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Percentage of voluntary protection contract revenues | 82.00% | 82.00% | 83.00% | 83.00% |
Segment Information - Additio_2
Segment Information - Additional Information (Details1) $ in Millions | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation, amount | $ 205 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01 | |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation, amount | $ 2,400 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |