Finance Receivables (Tables)

9 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Summary of Finance Receivables

Finance receivables consisted of the following:

		December 31, 2023
		Retail		Dealer		Total
	(U.S. dollars in millions)
Finance receivables		$	42,238	$	3,595	$	45,833
Allowance for credit losses		(336)		(7)		(343)
Deferred dealer participation and other deferred costs		596		—		596
Unearned subsidy income		(551)		—		(551)
Finance receivables, net		$	41,947	$	3,588	$	45,535
		March 31, 2023
		Retail		Dealer		Total
	(U.S. dollars in millions)
Finance receivables		$	35,110	$	2,836	$	37,946
Allowance for credit losses		(248)		(5)		(253)
Deferred dealer participation and other deferred costs		472		—		472
Unearned subsidy income		(580)		—		(580)
Finance receivables, net		$	34,754	$	2,831	$	37,585

Summary of Activity in Allowance for Credit Losses of Finance Receivables

The following is a summary of the activity in the allowance for credit losses of finance receivables:

		Three and nine months ended December 31, 2023
		Retail		Dealer		Total
	(U.S. dollars in millions)
Beginning balance as of October 1, 2023		$	327	$	5	$	332
Provision		72		2		74
Charge-offs		(87)		—		(87)
Recoveries		24		—		24
Effect of translation adjustment		—		—		—
Ending balance as of December 31, 2023		$	336	$	7	$	343
Beginning balance as of April 1, 2023		$	248	$	5	$	253
Provision		220		2		222
Charge-offs		(202)		—		(202)
Recoveries		70		—		70
Effect of translation adjustment		—		—		—
Ending balance as of December 31, 2023		$	336	$	7	$	343
		Three and nine months ended December 31, 2022
		Retail		Dealer		Total
	(U.S. dollars in millions)
Beginning balance as of October 1, 2022		$	216	$	5	$	221
Provision		49		—		49
Charge-offs		(56)		—		(56)
Recoveries		22		—		22
Effect of translation adjustment		—		—		—
Ending balance as of December 31, 2022		$	231	$	5	$	236
Beginning balance as of April 1, 2022		$	206	$	5	$	211
Provision		101		—		101
Charge-offs		(140)				(140)
Recoveries		65		—		65
Effect of translation adjustment		(1)		—		(1)
Ending balance as of December 31, 2022		$	231	$	5	$	236

Summary of Aging Analysis of Past Due Finance Receivables

The following is an aging analysis of past due finance receivables:

	30 – 59 days past due		60 – 89 days past due		90 days or greater past due		Total past due		Current or less than 30 days past due		Total finance receivables
	(U.S. dollars in millions)
December 31, 2023
Retail loans:
New auto	$	290	$	81	$	22	$	393	$	32,650	$	33,043
Used and certified auto	153		46		13		212		7,664		7,876
Motorcycle and other	17		8		5		30		1,334		1,364
Total retail loans	460		135		40		635		41,648		42,283
Dealer loans:
Wholesale flooring	1		—		—		1		2,380		2,381
Commercial loans	—		—		—		—		1,214		1,214
Total dealer loans	1		—		—		1		3,594		3,595
Total finance receivables	$	461	$	135	$	40	$	636	$	45,242	$	45,878
March 31, 2023
Retail loans:
New auto	$	217	$	44	$	11	$	272	$	27,479	$	27,751
Used and certified auto	103		25		6		134		5,870		6,004
Motorcycle and other	14		5		2		21		1,226		1,247
Total retail loans	334		74		19		427		34,575		35,002
Dealer loans:
Wholesale flooring	—		—		—		—		1,946		1,946
Commercial loans	—		—		—		—		890		890
Total dealer loans	—		—		—		—		2,836		2,836
Total finance receivables	$	334	$	74	$	19	$	427	$	37,411	$	37,838

Summary of Portfolio of Retail Loans and Dealer Loans Leases by Credit Quality Indicator

The following table summarizes the amortized cost of retail loans by internal credit grade:

	Retail loans by vintage fiscal year
	2024		2023		2022		2021		2020		Prior		Total
	(U.S. dollars in millions)
December 31, 2023
Credit grade A	$	11,327	$	6,396	$	4,262	$	3,440	$	811	$	206	$	26,442
Credit grade B	3,342		2,253		1,248		900		297		104		8,144
Credit grade C	2,272		1,467		852		607		247		95		5,540
Credit grade D	608		342		207		173		118		53		1,501
Others	278		159		108		67		29		15		656
Total retail loans	$	17,827	$	10,617	$	6,677	$	5,187	$	1,502	$	473	$	42,283
Gross charge-offs for the nine months ended December 31, 2023	$	24	$	79	$	48	$	27	$	15	$	9	$	202

	Retail loans by vintage fiscal year
	2023		2022		2021		2020		2019		Prior		Total
	(U.S. dollars in millions)
March 31, 2023
Credit grade A	$	8,332	$	5,994	$	5,188	$	1,570	$	661	$	171	$	21,916
Credit grade B	2,828		1,693		1,308		504		229		78		6,640
Credit grade C	1,864		1,174		887		407		189		71		4,592
Credit grade D	447		294		255		191		92		36		1,315
Others	211		146		97		50		22		13		539
Total retail loans	$	13,682	$	9,301	$	7,735	$	2,722	$	1,193	$	369	$	35,002

The following table summarizes the amortized cost of dealer loans by risk rating groups:

	Commercial loans by vintage fiscal year
	2024		2023		2022		2021		2020		Prior		Revolving loans		Wholesale Flooring		Total
	(U.S. dollars in millions)
December 31, 2023
Group I	$	147	$	56	$	15	$	116	$	45	$	85	$	685	$	1,505	$	2,654
Group II	41		3		—		—		—		21		—		873		938
Group III	—		—		—		—		—		—		—		3		3
Total dealer loans	$	188	$	59	$	15	$	116	$	45	$	106	$	685	$	2,381	$	3,595
Gross charge-offs for the nine months ended December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	Commercial loans by vintage fiscal year
	2023		2022		2021		2020		2019		Prior		Revolving loans		Wholesale Flooring		Total
	(U.S. dollars in millions)
March 31, 2023
Group I	$	67	$	10	$	143	$	56	$	24	$	89	$	428	$	1,223	$	2,040
Group II	1		6		29		6		—		31		—		723		796
Group III	—		—		—		—		—		—		—		—		—
Total dealer loans	$	68	$	16	$	172	$	62	$	24	$	120	$	428	$	1,946	$	2,836