Our reportable segments are Finance and Insurance operations. Finance operations include retail, leasing, and dealer financing provided to authorized dealers and their customers in the U.S. and Puerto Rico. Insurance operations are performed by TMIS and its subsidiaries.

Financial information for our reportable operating segments, which includes allocated corporate expenses, is summarized as follows:

	Year ended March 31, 2020
	Finance		Insurance		Intercompany
	operations		operations		eliminations			Total

Total financing revenues	$	12,029	$	-	$	-		$	12,029
Depreciation on operating leases		6,820		-		-			6,820
Interest expense		2,854		-		(20	)		2,834
Net financing revenues		2,355		-		20			2,375

Insurance earned premiums and contract revenues		-		933		-			933
Investment and other income, net		155		187		(20	)		322
Net financing and other revenues		2,510		1,120		-			3,630

Expenses:
Provision for credit losses		590		-		-			590
Operating and administrative expenses		1,197		364		-			1,561
Insurance losses and loss adjustment expenses		-		455		-			455
Total expenses		1,787		819		-			2,606

Income before income taxes		723		301		-			1,024
Provision for income taxes		39		72		-			111

Net income	$	684	$	229	$	-		$	913

Total assets	$	121,180	$	5,520	$	(1,145	)	$	125,555

	Year ended March 31, 2019
	Finance		Insurance		Intercompany
	operations		operations		eliminations			Total

Total financing revenues	$	11,640	$	-	$	-		$	11,640
Depreciation on operating leases		6,909		-		-			6,909
Interest expense		2,769		-		(22	)		2,747
Net financing revenues		1,962		-		22			1,984

Insurance earned premiums and contract revenues		-		904		-			904
Investment and other income, net		188		126		(22	)		292
Net financing and other revenues		2,150		1,030		-			3,180

Expenses:
Provision for credit losses		372		-		-			372
Operating and administrative expenses		1,038		347		-			1,385
Insurance losses and loss adjustment expenses		-		446		-			446
Total expenses		1,410		793		-			2,203

Income before income taxes		740		237		-			977
Provision for income taxes		147		35		-			182

Net income	$	593	$	202	$	-		$	795

Total assets	$	112,615	$	5,066	$	(1,165	)	$	116,516

	Year ended March 31, 2018
	Finance			Insurance		Intercompany
	operations			operations		eliminations			Total

Total financing revenues	$	10,717		$	-	$	-		$	10,717
Depreciation on operating leases		7,041			-		-			7,041
Interest expense		1,863			-		(12	)		1,851
Net financing revenues		1,813			-		12			1,825

Insurance earned premiums and contract revenues		-			882		-			882
Investment and other income, net		140			129		(12	)		257
Net financing and other revenues		1,953			1,011		-			2,964

Expenses:
Provision for credit losses		401			-		-			401
Operating and administrative expenses		1,028			329		-			1,357
Insurance losses and loss adjustment expenses		-			425		-			425
Total expenses		1,429			754		-			2,183

Income before income taxes		524			257		-			781
(Benefit) provision for income taxes		(2,654	)		25		-			(2,629	)

Net income	$	3,178		$	232	$	-		$	3,410

Total assets	$	116,942		$	4,691	$	(1,087	)	$	120,546

The Insurance operations segment offers vehicle and payment protection products on Toyota, Lexus and other domestic and import vehicles that are sold by dealers along with the sale of a vehicle.

Revenues from providing coverage under various contractual agreements are recognized over the term of the coverage in relation to the timing and level of anticipated claims and administrative expenses. Revenues from insurance policies, net of premiums ceded to reinsurers, are earned over the terms of the respective policies in proportion to the estimated loss development. Management relies on historical loss experience as a basis for establishing earnings factors used to recognize revenue over the term of the contract or policy.

We receive the contractually determined dealer cost at the inception of the contract. Revenue is then deferred and recognized over the term of the contract according to earnings factors established by management that are based upon historical loss experience. Contracts sold range in term from 3 to 120 months and are typically cancellable at any time. The effect of subsequent cancellations is recorded as an offset to unearned contract revenues in Other liabilities on our Consolidated Balance Sheets.

For the year ended March 31, 2020 and 2019, respectively, approximately 84 percent of Insurance earned premiums and contract revenues in the Insurance operations segment were accounted for under ASU 2014-09.

The Insurance operations segment defers contractually determined incentives paid to dealers as contract costs for selling vehicle and payment protection products. These costs are recorded in Other assets on our Consolidated Balance Sheets and are amortized to Operating and administrative expenses on 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 years ended March 31, 2020 and 2019.

We had $2.2 billion and $2.4 billion of unearned insurance premiums and contract revenues from contracts with customers included in Other liabilities on our Consolidated Balance Sheets as of March 31, 2019 and March 31, 2020, respectively. We recognized $673 million of the unearned amounts in Insurance earned premiums and contract revenues in our Consolidated Statements of Income during fiscal 2020. We expect to recognize as revenue approximately $700 million in fiscal 2021 and $1.7 billion thereafter.

Insurance losses and loss adjustment expenses include amounts paid and accrued for loss events that are known and have been recorded as claims, estimates of losses incurred but not reported based on actuarial estimates and historical loss development patterns, and loss adjustment expenses that are expected to be incurred in connection with settling and paying these claims.

Accruals for unpaid losses, losses incurred but not reported, and loss adjustment expenses are included in Other liabilities in our Consolidated Balance Sheets. These accruals arising from contractual agreements entered into by TMIS are not significant as of March 31, 2020 and 2019. Estimated liabilities are reviewed regularly, and we recognize any adjustments in the periods in which they are determined. If anticipated losses, loss adjustment expenses, and unamortized acquisition and maintenance costs exceed the recorded unearned premium, a premium deficiency is recognized by first charging any unamortized acquisition costs to expense and then by recording a liability for any excess deficiency.

Our insurance operations transfer certain risks to protect us against the impact of unpredictable high severity losses. The amounts recoverable from reinsurers and other companies that assume liabilities relating to our Insurance operations are determined in a manner consistent with the related reinsurance or risk transfer agreement. Amounts recoverable from reinsurers and other companies on unpaid losses are recorded as a receivable but are not collectible until the losses are paid. Revenues related to risks transferred are recognized on the same basis as the related revenues from the underlying agreements. Covered losses are recorded as a reduction to Insurance losses and loss adjustment expenses.