Related Party Transactions

9 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

Related Party Transactions

Note 11 – Related Party Transactions

In April 2023, TMCC entered into a one-year revolving credit agreement with Toyota Motor Sales U.S.A., Inc. (“TMS”), pursuant to which TMS is entitled to borrow a maximum amount of $500 million, and renewed a three-year revolving credit agreement with TMS, pursuant to which TMCC is entitled to borrow a maximum amount of $5 billion. In December 2023, TMCC increased the financing support available to Toyota Finance Corporation to ¥300 billion (approximately $2.1 billion as of December 31, 2023). Except for the transactions noted above, as of December 31, 2023, there were no material changes to our related party agreements or relationships as described in our fiscal 2023 Form 10-K. The tables below show the financial statement line items and amounts included in our Consolidated Statements of Income and on our Consolidated Balance Sheets under various related party agreements or relationships:

	Three months ended				Nine months ended
	December 31,				December 31,
	2023		2022		2023			2022
Net financing revenues:
Manufacturer's subvention and other revenues	$	237	$	300	$	760		$	955
Depreciation on operating leases	$	5	$	23	$	(82	)	$	79
Interest expense:
Credit support fees, interest and other expenses	$	29	$	25	$	77		$	72
Voluntary protection contract revenues   and insurance earned premiums:
Voluntary protection contract revenues   and insurance earned premiums	$	39	$	39	$	116		$	118
Investment and other income, net:
Interest and other income	$	26	$	21	$	45		$	18
Expenses:
Operating and administrative	$	26	$	42	$	72		$	79

	December 31,			March 31,
	2023			2023
Assets:
Cash and cash equivalents
Commercial paper	$	-		$	35
Finance receivables, net
Accounts receivable	$	54		$	47
Deferred retail subvention income	$	(923	)	$	(922	)
Investments in operating leases, net
Investments in operating leases, net	$	(85	)	$	(250	)
Deferred lease subvention income	$	(287	)	$	(410	)
Other assets
Notes receivable	$	1,535		$	1,237
Other receivables, net	$	87		$	89
Liabilities:
Other liabilities
Unearned voluntary protection contract revenues   and insurance earned premiums	$	432		$	399
Other payables, net	$	818		$	432
Notes payable	$	8		$	8

Note 11 – Related Party Transactions (Continued)

TMCC receives subvention payments from TMNA which result in a gross monthly subvention receivable. As of December 31, 2023 and March 31, 2023, the subvention receivable from TMNA was $74 million and $79 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, 2023 and March 31, 2023, respectively, we had a net amount payable to TMNA which is recorded in Other payables, net in Other liabilities.

Our Board of Directors declared and paid cash dividend of approximately $2.5 billion payable to Toyota Financial Services International Corporation during fiscal 2023.