Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2013

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis


As of September 30, 2013
					Fair value measurements on a recurring basis
										Counterparty
										netting &		Fair
(Dollars in millions)				Level 1		Level 2		Level 3		collateral		value
Cash equivalents:
	Money market instruments			$	2,152	$	443	$	-	$	-	$	2,595
	Certificates of deposit				-		1,270		-		-		1,270
	Commercial paper				-		3		-		-		3
	Cash equivalents total				2,152		1,716		-		-		3,868
Available-for-sale securities:
	Debt instruments:
		U.S. government and agency obligations			46		57		2		-		105
		Municipal debt securities			-		14		-		-		14
		Certificates of deposit			-		1,412		-		-		1,412
		Commercial paper			-		202		-		-		202
		Foreign government debt securities			-		3		-		-		3
		Corporate debt securities			-		135		2		-		137
		Mortgage-backed securities:
			U.S. government agency		-		74		-		-		74
			Non-agency residential		-		-		5		-		5
			Non-agency commercial		-		-		49		-		49
		Asset-backed securities			-		-		19		-		19
	Equity instruments:
		Fixed income mutual funds:
			Short-term sector fund		-		43		-		-		43
			U.S. government sector fund		-		321		-		-		321
			Municipal sector fund		-		21		-		-		21
			Investment grade corporate sector fund		-		305		-		-		305
			High-yield sector fund		-		42		-		-		42
			Real return sector fund		-		273		-		-		273
			Mortgage sector fund		-		559		-		-		559
			Asset-backed securities sector fund		-		48		-		-		48
			Emerging market sector fund		-		64		-		-		64
			International sector fund		-		169		-		-		169
		Equity mutual fund			499		-		-		-		499
	Available-for-sale securities total				545		3,742		77		-		4,364
	Derivative assets:
		Foreign currency swaps			-		887		64		-		951
		Interest rate swaps			-		393		13		-		406
		Counterparty netting and collateral			-		-		-		(1,295)		(1,295)
	Derivative assets total				-		1,280		77		(1,295)		62
Assets at fair value					2,697		6,738		154		(1,295)		8,294
	Derivative liabilities:
		Foreign currency swaps			-		(150)		(14)		-		(164)
		Interest rate swaps			-		(688)		-		-		(688)
		Counterparty netting and collateral			-		-		-		851		851
	Derivative liabilities total				-		(838)		(14)		851		(1)
	Embedded derivative liabilities				-		-		(9)		-		(9)
Liabilities at fair value					-		(838)		(23)		851		(10)
Net assets at fair value				$	2,697	$	5,900	$	131	$	(444)	$	8,284

Note 2 – Fair Value Measurements (Continued)

As of March 31, 2013
					Fair value measurements on a recurring basis
										Counterparty
										netting &		Fair
(Dollars in millions)				Level 1		Level 2		Level 3		collateral		value
Cash equivalents:
	Money market instruments			$	900	$	608	$	-	$	-	$	1,508
	Certificates of deposit				-		1,945		-		-		1,945
	Commercial paper				-		798		-		-		798
	Cash equivalents total				900		3,351		-		-		4,251
Available-for-sale securities:
	Debt instruments:
		U.S. government and agency obligations			42		62		-		-		104
		Municipal debt securities			-		16		-		-		16
		Certificates of deposit			-		2,041		-		-		2,041
		Commercial paper			-		495		-		-		495
		Foreign government debt securities			-		3		-		-		3
		Corporate debt securities			-		124		4		-		128
		Mortgage-backed securities:
			U.S. government agency		-		87		-		-		87
			Non-agency residential		-		-		5		-		5
			Non-agency commercial		-		-		51		-		51
		Asset-backed securities			-		-		13		-		13
	Equity instruments:
		Fixed income mutual funds:
			Short-term sector fund		-		43		-		-		43
			U.S. government sector fund		-		312		-		-		312
			Municipal sector fund		-		22		-		-		22
			Investment grade corporate sector fund		-		327		-		-		327
			High-yield sector fund		-		42		-		-		42
			Real return sector fund		-		293		-		-		293
			Mortgage sector fund		-		648		-		-		648
			Asset-backed securities sector fund		-		47		-		-		47
			Emerging market sector fund		-		66		-		-		66
			International sector fund		-		170		-		-		170
		Equity mutual fund			484		-		-		-		484
	Available-for-sale securities total				526		4,798		73		-		5,397
	Derivative assets:
		Foreign currency swaps			-		1,076		63		-		1,139
		Interest rate swaps			-		568		12		-		580
		Counterparty netting and collateral			-		-		-		(1,661)		(1,661)
	Derivative assets total				-		1,644		75		(1,661)		58
Assets at fair value					1,426		9,793		148		(1,661)		9,706
	Derivative liabilities:
		Foreign currency swaps			-		(123)		(8)		-		(131)
		Interest rate swaps			-		(766)		-		-		(766)
		Counterparty netting and collateral			-		-		-		892		892
	Derivative liabilities total				-		(889)		(8)		892		(5)
	Embedded derivative liabilities				-		-		(12)		-		(12)
Liabilities at fair value					-		(889)		(20)		892		(17)
Net assets at fair value				$	1,426	$	8,904	$	128	$	(769)	$	9,689

Assets and Liabilities Measured on Recurring Basis Using Significant Unobservable Inputs

			Fair value measurements using significant unobservable inputs (Level 3)
																					Total net
																					assets
			Available-for-sale securities													Derivative instruments, net							(liabilities)

			U.S.								Total								Total
			government		Corporate		Mortgage-		Asset-		available-		Interest		Foreign				derivative
			and agency		debt		backed		backed		for-sale		rate		currency		Embedded		assets
(Dollars in millions)			obligations		securities		securities		securities		securities		swaps		swaps		derivatives		(liabilities)
Fair value, July 1, 2013			$	-	$	4	$	53	$	19	$	76	$	11	$	23	$	(7)	$	27	$	103
Total gains (losses)
		Included in earnings		-		-		-		-		-		2		28		(2)		28		28
		Included in other comprehensive income		-		-		-		-		-		-		-		-		-		-
Purchases, issuances, sales, and
	settlements
		Purchases		-		-		2		-		2		-		-		-		-		2
		Issuances		-		-		-		-		-		-		-		-		-		-
		Sales		-		-		-		-		-		-		-		-		-		-
		Settlements		-		-		(1)		-		(1)		-		(1)		-		(1)		(2)
Transfers in to Level 3				2		-		-		-		2		-		-		-		-		2
Transfers out of Level 3				-		(2)		-		-		(2)		-		-		-		-		(2)
Fair value, September 30, 2013			$	2	$	2	$	54	$	19	$	77	$	13	$	50	$	(9)	$	54	$	131
The amount of total gains/(losses)
for the period included in
earnings attributable to the
change in unrealized gains or
losses related to assets still held
at the reporting date													$	2	$	28	$	(2)	$	28	$	28

Note 2 – Fair Value Measurements (Continued)

Three Months Ended September 30, 2012

		Fair value measurements using significant unobservable inputs (Level 3)
																		Total net
																		assets
		Available-for-sale securities											Derivative instruments, net							(liabilities)

								Total								Total
		Corporate		Mortgage-		Asset-		available-		Interest		Foreign				derivative
		debt		backed		backed		for-sale		rate		currency		Embedded		assets
(Dollars in millions)		securities		securities		securities		securities		swaps		swaps		derivatives		(liabilities)
Fair value, July 1, 2012		$	4	$	32	$	12	$	48	$	11	$	59	$	(27)	$	43	$	91
Total gains
	Included in earnings		-		-		-		-		2		22		4		28		28
	Included in other comprehensive income		-		1		-		1		-		-		-		-		1
Purchases, issuances, sales, and settlements
	Purchases		-		2		1		3		-		-		-		-		3
	Issuances		-		-		-		-		-		-		-		-		-
	Sales		-		(2)		(1)		(3)		-		-		-		-		(3)
	Settlements		-		(2)		(3)		(5)		(1)		(7)		-		(8)		(13)
Transfers in to Level 3			-		-		-		-		-		-		-		-		-
Transfers out of Level 3			-		-		-		-		-		-		-		-		-
Fair value, September 30, 2012		$	4	$	31	$	9	$	44	$	12	$	74	$	(23)	$	63	$	107
The amount of total gains/(losses)
for the period included in
earnings attributable to the
change in unrealized gains or
losses related to assets still held
at the reporting date										$	2	$	22	$	(2)	$	22	$	22

Six Months Ended September 30, 2013

		Fair value measurements using significant unobservable inputs (Level 3)
																				Total net
																				assets
		Available-for-sale securities													Derivative instruments, net							(liabilities)

		U.S.								Total								Total
		government		Corporate		Mortgage-		Asset-		available-		Interest		Foreign				derivative
		and agency		debt		backed		backed		for-sale		rate		currency		Embedded		assets
(Dollars in millions)		obligations		securities		securities		securities		securities		swaps		swaps		derivatives		(liabilities)
Fair value, April 1, 2013		$	-	$	4	$	56	$	13	$	73	$	12	$	55	$	(12)	$	55	$	128
Total gains
	Included in earnings		-		-		-		-		-		2		7		3		12		12
	Included in other comprehensive income		-		-		(3)		-		(3)		-		-		-		-		(3)
Purchases, issuances, sales, and settlements
	Purchases		-		-		2		7		9		-		-		-		-		9
	Issuances		-		-		-		-		-		-		-		-		-		-
	Sales		-		-		-		-		-		-		-		-		-		-
	Settlements		-		-		(1)		(1)		(2)		(1)		(12)		-		(13)		(15)
Transfers in to Level 3			2		-		-		-		2		-		-		-		-		2
Transfers out of Level 3			-		(2)		-		-		(2)		-		-		-		-		(2)
Fair value, September 30, 2013		$	2	$	2	$	54	$	19	$	77	$	13	$	50	$	(9)	$	54	$	131
The amount of total gains/(losses)
for the period included in
earnings attributable to the
change in unrealized gains or
losses related to assets still held
at the reporting date												$	2	$	9	$	(3)	$	8	$	8

Note 2 – Fair Value Measurements (Continued)

Six Months Ended September 30, 2012

		Fair value measurements using significant unobservable inputs (Level 3)
																		Total net
																		assets
		Available-for-sale securities											Derivative instruments, net							(liabilities)

								Total								Total
		Corporate		Mortgage-		Asset-		available-		Interest		Foreign				derivative
		debt		backed		backed		for-sale		rate		currency		Embedded		assets
(Dollars in millions)		securities		securities		securities		securities		swaps		swaps		derivatives		(liabilities)
Fair value, April 1, 2012		$	1	$	19	$	1	$	21	$	13	$	69	$	(24)	$	58	$	79
Total gains
	Included in earnings		-		-		-		-		1		17		1		19		19
	Included in other comprehensive income		-		1		-		1		-		-		-		-		1
Purchases, issuances, sales, and settlements
	Purchases		-		3		1		4		-		-		-		-		4
	Issuances		-		-		-		-		-		-		-		-		-
	Sales		-		(3)		(1)		(4)		-		-		-		-		(4)
	Settlements		-		(2)		(3)		(5)		(2)		(12)		-		(14)		(19)
Transfers into Level 3			3		13		11		27		-		-		-		-		27
Transfers out of Level 3			-		-		-		-		-		-		-		-		-
Fair value, September 30, 2012		$	4	$	31	$	9	$	44	$	12	$	74	$	(23)	$	63	$	107
The amount of total gains/
(losses) for the period included
in earnings attributable to the
change in unrealized gains or
losses related to assets still held
at the reporting date										$	1	$	16	$	(4)	$	13	$	13

Carrying Value of Certain Financial Instruments

					Fair value measurement hierarchy
			Carrying								Total Fair
(Dollars in millions)			value		Level 1		Level 2		Level 3		Value
As of September 30, 2013

Financial assets
	Finance receivables, net
		Retail loan	$	49,064	$	-	$	-	$	49,595	$	49,595
		Commercial		152		-		-		141		141
		Wholesale		8,466		-		-		8,507		8,507
		Real estate		4,513		-		-		4,435		4,435
		Working capital		1,690		-		-		1,684		1,684

Financial liabilities
	Commercial paper		$	27,517	$	-	$	27,517	$	-	$	27,517
	Unsecured notes and loans payable			46,894		-		47,157		806		47,963
	Secured notes and loans payable			7,118		-		-		7,120		7,120

Note 2 - Fair Value Measurements (Continued)

					Fair value measurement hierarchy
			Carrying								Total Fair
(Dollars in millions)			value		Level 1		Level 2		Level 3		Value
As of March 31, 2013

Financial assets
	Finance receivables, net
		Retail loan	$	47,312	$	-	$	-	$	48,313	$	48,313
		Commercial		134		-		-		126		126
		Wholesale		8,620		-		-		8,644		8,644
		Real estate		4,531		-		-		4,480		4,480
		Working capital		1,695		-		-		1,708		1,708

Financial liabilities
	Commercial paper		$	24,590	$	-	$	24,590	$	-	$	24,590
	Unsecured notes and loans payable			47,233		-		47,901		874		48,775
	Secured notes and loans payable			7,009		-		-		7,016		7,016

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 10

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 30

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details