Related Party Transactions

9 Months Ended

Dec. 31, 2024

Related Party Transactions [Abstract]

Related Party Transactions

Note 11 – Related Party Transactions

In April 2024, TMCC renewed a three-year revolving credit agreement with Toyota Motor Sales U.S.A., Inc. (“TMS”), pursuant to which TMCC is entitled to borrow a maximum amount of $5 billion.

As discussed in Note 1 – Interim Financial Data, in connection with the MFS Transition plan, TMCC has entered into certain servicing agreements with TFSB to service the retail and lease contracts originated under the MFS Agreement by TFSB. Compensation for services provided under the servicing agreements will be commensurate with market rates and presented in Investment and other income, net in the Consolidated Income Statements.

Except for the transactions noted above, there were no material changes to our related party agreements or relationships as described in our fiscal 2024 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,
	2024			2023		2024		2023
Net financing revenues:
Manufacturer's subvention and other revenues	$	252		$	237	$	716	$	760
Depreciation on operating leases	$	3		$	5	$	24	$	(82	)
Interest expense:
Credit support fees, interest and other expenses	$	29		$	29	$	86	$	77
Voluntary protection contract revenues   and insurance earned premiums:
Voluntary protection contract revenues   and insurance earned premiums	$	48		$	39	$	131	$	116
Investment and other income, net:
Interest and other (loss) income	$	(3	)	$	26	$	45	$	45
Expenses:
Operating and administrative	$	26		$	26	$	78	$	72

Note 11 – Related Party Transactions (Continued)

	December 31,			March 31,
	2024			2024
Assets:
Investments in marketable securities
Commercial paper	$	15		$	-
Finance receivables, net
Accounts receivable	$	90		$	49
Deferred retail subvention income	$	(1,130	)	$	(953	)
Investments in operating leases, net
Investments in operating leases, net	$	(99	)	$	(80	)
Deferred lease subvention income	$	(482	)	$	(323	)
Other assets
Notes receivable	$	2,113		$	1,724
Other receivables, net	$	77		$	86
Liabilities:
Other liabilities
Unearned voluntary protection contract revenues   and insurance earned premiums	$	486		$	433
Other payables, net	$	746		$	771
Notes payable	$	-		$	8

TMCC receives subvention payments from TMNA which result in a gross monthly subvention receivable. As of December 31, 2024 and March 31, 2024, the subvention receivable from TMNA was $121 million and $111 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, 2024 and March 31, 2024, respectively, we had a net amount payable to TMNA which is recorded in Other payables, net in Other liabilities.