Fair Value Measurements (Tables)

3 Months Ended

Jun. 30, 2012

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis


As of June 30, 2012
					Fair value measurements on a recurring basis
										Counterparty
										netting &		Fair
(Dollars in millions)				Level 1		Level 2		Level 3		collateral		value
Cash equivalents:
	Money market instruments			$	3,518	$	556	$	-	$	-	$	4,074
	Certificates of deposit				-		350		-		-		350
	Commercial paper				-		1,039		-		-		1,039
	Cash equivalents total				3,518		1,945		-		-		5,463
Available-for-sale securities:
	Debt instruments:
		U.S. government and agency obligations			73		62		-		-		135
		Municipal debt securities			-		19		-		-		19
		Certificates of deposit			-		1,724		-		-		1,724
		Commercial paper			-		344		-		-		344
		Foreign government debt securities			-		3		-		-		3
		Corporate debt securities			-		91		4		-		95
		Mortgage-backed securities:
			U.S. government agency		-		100		-		-		100
			Non-agency residential		-		-		7		-		7
			Non-agency commercial		-		-		25		-		25
		Asset-backed securities			-		-		12		-		12
	Equity instruments:
		Fixed income mutual funds:
			Short-term sector fund		-		40		-		-		40
			U.S. government sector fund		-		342		-		-		342
			Municipal sector fund		-		21		-		-		21
			Investment grade corporate sector fund		-		299		-		-		299
			High-yield sector fund		-		37		-		-		37
			Real return sector fund		-		287		-		-		287
			Mortgage sector fund		-		637		-		-		637
			Asset-backed securities sector fund		-		42		-		-		42
			Emerging market sector fund		-		64		-		-		64
			International sector fund		-		164		-		-		164
		Equity mutual fund			439		-		-		-		439
	Available-for-sale securities total				512		4,276		48		-		4,836
	Derivative assets:
		Foreign currency swaps			-		1,903		72		-		1,975
		Interest rate swaps			-		649		11		-		660
		Counterparty netting and collateral			-		-		-		(2,436)		(2,436)
	Derivative assets total				-		2,552		83		(2,436)		199
	Embedded derivative assets				-		-		-		-		-
Assets at fair value					4,030		8,773		131		(2,436)		10,498
	Derivative liabilities:
		Foreign currency swaps			-		(57)		(13)		-		(70)
		Interest rate swaps			-		(980)		-		-		(980)
		Counterparty netting and collateral			-		-		-		1,027		1,027
	Derivative liabilities total				-		(1,037)		(13)		1,027		(23)
	Embedded derivative liabilities				-		-		(27)		-		(27)
Liabilities at fair value					-		(1,037)		(40)		1,027		(50)
Net assets at fair value				$	4,030	$	7,736	$	91	$	(1,409)	$	10,448

Note 2 – Fair Value Measurements (Continued)

As of March 31, 2012
					Fair value measurements on a recurring basis
										Counterparty		Fair
(Dollars in millions)				Level 1		Level 2		Level 3		netting & collateral		value
Cash equivalents:
	Money market instruments			$	2,591	$	256	$	-	$	-	$	2,847
	Certificates of deposit				-		495		-		-		495
	Commercial paper				-		1,537		-		-		1,537
	Cash equivalents total				2,591		2,288		-		-		4,879
Available-for-sale securities:
	Debt instruments:
		U.S. government and agency obligations			-		108		-		-		108
		Municipal debt securities			-		20		-		-		20
		Certificates of deposit			-		1,341		-		-		1,341
		Commercial paper			-		633		-		-		633
		Foreign government debt securities			-		3		-		-		3
		Corporate debt securities			-		106		1		-		107
		Mortgage-backed securities:
			U.S. government agency		-		105		-		-		105
			Non-agency residential		-		4		4		-		8
			Non-agency commercial		-		11		15		-		26
		Asset-backed securities			-		12		1		-		13
	Equity instruments:
		Fixed income mutual funds:
			Short-term sector fund		-		40		-		-		40
			U.S. government sector fund		-		313		-		-		313
			Municipal sector fund		-		21		-		-		21
			Investment grade corporate sector fund		-		298		-		-		298
			High-yield sector fund		-		37		-		-		37
			Real return sector fund		-		231		-		-		231
			Mortgage sector fund		-		639		-		-		639
			Asset-backed securities sector fund		-		41		-		-		41
			Emerging market sector fund		-		62		-		-		62
			International sector fund		-		162		-		-		162
		Equity mutual fund			451		-		-		-		451
	Available-for-sale securities total				451		4,187		21		-		4,659
	Derivative assets:
		Foreign currency swaps			-		2,142		79		-		2,221
		Interest rate swaps			-		426		13		-		439
		Counterparty netting and collateral			-		-		-		(2,590)		(2,590)
	Derivative assets total				-		2,568		92		(2,590)		70
	Embedded derivative assets				-		-		-		-		-
Assets at fair value					3,042		9,043		113		(2,590)		9,608
	Derivative liabilities:
		Foreign currency swaps			-		(63)		(10)		-		(73)
		Interest rate swaps			-		(1,008)		-		-		(1,008)
		Counterparty netting and collateral			-		-		-		1,038		1,038
	Derivative liabilities total				-		(1,071)		(10)		1,038		(43)
	Embedded derivative liabilities				-		-		(24)		-		(24)
Liabilities at fair value					-		(1,071)		(34)		1,038		(67)
Net assets at fair value				$	3,042	$	7,972	$	79	$	(1,552)	$	9,541

Assets and Liabilities Measured on Recurring Basis Using Significant Unobservable Inputs

			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
																						Total net
																						assets
			Available-for-sale securities											Derivative instruments, net								(liabilities)
					Non-agency			Non-agency
					residential			commercial				Total								Total
			Corporate		mortgage-			mortgage-		Asset-		available-		Interest		Foreign				derivative
			debt		backed			backed		backed		for-sale		rate		currency		Embedded		assets
(Dollars in millions)			securities		securities			securities		securities		securities		swaps		swaps		derivatives		(liabilities)
Fair value, April 1, 2012			$	1		$	4	$	15	$	1	$	21	$	13	$	69	$	(24)	$	58	$	79
Total losses
		Included in earnings		-			-		-		-		-		(1)		(5)		(3)		(9)		(9)
		Included in other comprehensive income		-			-		-		-		-		-		-		-		-		-
Purchases, issuances, sales, and
	settlements
		Purchases		-			-		1		-		1		-		-		-		-		1
		Issuances		-			-		-		-		-		-		-		-		-		-
		Sales		-			-		(1)		-		(1)		-		-		-		-		(1)
		Settlements		-			-		-		-		-		(1)		(5)		-		(6)		(6)
Transfers in to Level 3				3			3		10		11		27		-		-		-		-		27
Transfers out of Level 3				-			-		-		-		-		-		-		-		-		-
Fair value, June 30, 2012			$	4		$	7	$	25	$	12	$	48	$	11	$	59	$	(27)	$	43	$	91
The amount of total
losses for the period included
in earnings attributable to the
change in unrealized gains or
losses related to assets still held
at the reporting date														$	(1)	$	(5)	$	(3)	$	(9)	$	(9)

Note 2 – Fair Value Measurements (Continued)

Three Months Ended June 30, 2011

		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
											Total net
											assets
			Derivative instruments, net								(liabilities)

									Total
		Interest		Foreign					derivative
		rate		currency		Embedded			assets
(Dollars in millions)		swaps		swaps		derivatives			(liabilities)
Fair value, April 1, 2011		$	17	$	109		$	(51)	$	75	$	75
Total gains/(losses)
	Included in earnings		4		48			11		63		63
	Included in other comprehensive income		-		-			-		-		-
Purchases, issuances, sales, and settlements
	Purchases		-		-			-		-		-
	Issuances		-		-			-		-		-
	Sales		-		-			-		-		-
	Settlements		(11)		(5)			-		(16)		(16)
Transfers in to Level 3			-		-			-		-		-
Transfers out of Level 3			-		-			-		-		-
Fair value, June 30, 2011		$	10	$	152		$	(40)	$	122	$	122
The amount of total gains or
(losses) for the period included
in earnings attributable to the
change in unrealized gains or
losses related to assets still held
at the reporting date		$	4	$	48		$	(5)	$	47	$	47

Carrying Value of Certain Financial Instruments

					Fair value measurement hierarchy
			Carrying								Total Fair
(Dollars in millions)			value		Level 1		Level 2		Level 3		Value
As of June 30, 2012

Financial assets
	Finance receivables, net
		Retail loan	$	45,608	$	-	$	-	$	46,542	$	46,542
		Commercial		141		-		-		145		145
		Wholesale		7,963		-		-		7,966		7,966
		Real estate		4,321		-		-		4,249		4,249
		Working capital		1,620		-		-		1,624		1,624

Financial liabilities
	Commercial paper		$	24,634	$	-	$	24,634	$	-	$	24,634
	Unsecured notes and loans payable		$	41,114	$	-	$	38,266	$	4,301	$	42,567
	Secured notes and loans payable		$	9,484	$	-	$	-	$	9,493	$	9,493

Note 2 - Fair Value Measurements (Continued)

					Fair value measurement hierarchy
			Carrying								Total Fair
(Dollars in million)			value		Level 1		Level 2		Level 3		Value
As of March 31, 2012

Financial assets
	Finance receivables, net
		Retail loan	$	44,941	$	-	$	-	$	46,609	$	46,609
		Commercial		141		-		-		148		148
		Wholesale		6,951		-		-		6,950		6,950
		Real estate		4,280		-		-		4,204		4,204
		Working capital		1,480		-		-		1,458		1,458

Financial liabilities
	Commercial paper		$	21,247	$	-	$	21,247	$	-	$	21,247
	Unsecured notes and loans payable		$	42,198	$	-	$	36,764	$	6,538	$	43,302
	Secured notes and loans payable		$	9,789	$	-	$	-	$	9,810	$	9,810

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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