Related Party Transactions

9 Months Ended

Dec. 31, 2016

Note 14 – Related Party Transactions

As of December 31, 2016, there were no material changes to our related party agreements or relationships as described in our fiscal 2016 Form 10-K. The tables below summarize amounts included in our Consolidated Statement of Income and in our Consolidated Balance Sheet under various related party agreements or relationships:

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2016			2015			2016			2015
Net financing revenues:
Manufacturers’ subvention support and other revenues	$	349		$	335		$	1,020		$	982
Origination costs paid to affiliates	$	-		$	-		$	(1	)	$	(1	)
Credit support fees incurred	$	(22	)	$	(24	)	$	(68	)	$	(69	)
Interest and other expenses paid to affiliates	$	-		$	(1	)	$	(1	)	$	(3	)

Insurance earned premiums and contract revenues:
Affiliate insurance premiums and contract revenues	$	36		$	33		$	105		$	98

Investments and other income, net:
Gain on sale of commercial finance business	$	-		$	197		$	-		$	197
Interest earned on notes receivable from affiliates	$	1		$	1		$	5		$	4
Other income from affiliates	$	-		$	-		$	1		$	-

Expenses:
Shared services charges and other expenses	$	12		$	7		$	34		$	34
Employee benefits expense	$	6		$	8		$	18		$	24
Insurance losses and loss adjustment expenses	$	-		$	1		$	1		$	1

Note 14 – Related Party Transactions (Continued)

	December 31,			March 31,
	2016			2016
Assets:
Cash and cash equivalents
Investments in affiliates' commercial paper	$	15		$	-

Finance receivables, net
Accounts receivable from affiliates	$	137		$	119
Notes receivable under home loan programs	$	4		$	9
Deferred retail origination costs paid to affiliates	$	2		$	1
Deferred retail subvention income from affiliates	$	(944	)	$	(794	)

Investments in operating leases, net
Leases to affiliates	$	3		$	2
Deferred lease origination costs paid to affiliates	$	1		$	1
Deferred lease subvention income from affiliates	$	(1,134	)	$	(1,057	)

Other assets
Notes receivable from affiliates	$	889		$	1,177
Other receivables from affiliates, net	$	204		$	7

Liabilities:
Other liabilities
Unearned affiliate insurance premiums and contract revenues	$	325		$	278
Other payables to affiliates, net	$	51		$	82
Notes payable to affiliates	$	13		$	20

Shareholder’s Equity:
Stock-based compensation	$	2		$	2

TMCC receives subvention payments from TMS which results in a gross monthly subvention receivable. As of December 31, 2016 and March 31, 2016, the subvention receivable from TMS was $172 million and $127 million, respectively. The subvention receivable is recorded in other receivables from affiliates, net in Other assets as of December 31, 2016. We have a settlement arrangement with TMS which allows us to net settle payments for shared services and subvention transactions. Under this arrangement, we had a net payable to TMS which resulted in the subvention receivable being recorded in other payables to affiliates, net as of March 31, 2016.