10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number 1-9961

TOYOTA MOTOR CREDIT CORPORATION

(Exact name of registrant as specified in its charter)

California	95-3775816
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
19001 S. Western Avenue Torrance, California	90501
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (310) 468-1310

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

As of October 31, 2015, the number of outstanding shares of capital stock, no par value per share, of the registrant was 91,500, all of which shares were held by Toyota Financial Services Americas Corporation.

Reduced Disclosure Format

The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format.

1

TOYOTA MOTOR CREDIT CORPORATION

FORM 10-Q

For the quarter ended September 30, 2015

INDEX
PART I	3
Item 1. Financial Statements	3
Consolidated Statement of Income	3
Consolidated Statement of Comprehensive Income	3
Consolidated Balance Sheet	4
Consolidated Statement of Shareholder’s Equity	5
Consolidated Statement of Cash Flows	6
Notes to Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis	44
Item 3. Quantitative and Qualitative Disclosures About Market Risk	66
Item 4. Controls and Procedures	66
PART II	67
Item 1. Legal Proceedings	67
Item 1A. Risk Factors	67
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	67
Item 3. Defaults Upon Senior Securities	67
Item 4. Mine Safety Disclosures	67
Item 5. Other Information	68
Item 6. Exhibits	68
Signatures	69
Exhibit Index	70

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TOYOTA MOTOR CREDIT CORPORATION

CONSOLIDATED STATEMENT OF INCOME

(Dollars in millions)

(Unaudited)

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Financing revenues:
Operating lease	$	1,789	$	1,497	$	3,485	$	2,900
Retail		465		461		922		917
Dealer		99		99		201		200
Total financing revenues		2,353		2,057		4,608		4,017
Depreciation on operating leases		1,446		1,196		2,806		2,296
Interest expense		203		215		711		345
Net financing revenues		704		646		1,091		1,376
Insurance earned premiums and contract revenues		178		160		352		313
Investment and other income, net		14		60		52		95
Net financing revenues and other revenues		896		866		1,495		1,784
Expenses:
Provision for credit losses		105		79		150		117
Operating and administrative		287		253		557		486
Insurance losses and loss adjustment expenses		78		67		157		137
Total expenses		470		399		864		740
Income before income taxes		426		467		631		1,044
Provision for income taxes		161		176		231		389
Net income	$	265	$	291	$	400	$	655

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)
(Dollars in millions) 

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Net income	$	265		$	291		$	400		$	655
Other comprehensive (loss) income, net of tax:
Net unrealized (losses) gains on available-for-sale    marketable securities [net of tax benefit (provision) of    $20, $5, $41 and ($22), respectively]		(32	)		(6	)		(68	)		36
Reclassification adjustment for net losses (gains) on    available-for-sale marketable securities    included in investment and other income, net [net of    tax (benefit) provision of ($8), $11, ($4) and $16, respectively]		13			(21	)		6			(28	)
Other comprehensive (loss) income		(19	)		(27	)		(62	)		8
Comprehensive income	$	246		$	264		$	338		$	663

See accompanying Notes to Consolidated Financial Statements.

3

TOYOTA MOTOR CREDIT CORPORATION

CONSOLIDATED BALANCE SHEET

(Dollars in millions except share data)
(Unaudited)

	September 30, 2015		March 31, 2015
ASSETS
Cash and cash equivalents	$	4,958	$	2,407
Restricted cash and cash equivalents		826		784
Investments in marketable securities		6,410		7,131
Finance receivables, net		65,022		65,893
Investments in operating leases, net		33,741		31,128
Other assets		4,234		2,282
Total assets	$	115,191	$	109,625
LIABILITIES AND SHAREHOLDER’S EQUITY
Debt	$	95,097	$	90,231
Deferred income taxes		7,733		7,519
Other liabilities		3,503		3,355
Total liabilities		106,333		101,105
Commitments and contingencies (See Note 12)
Shareholder’s equity:
Capital stock, no par value (100,000 shares authorized; 91,500 issued    and outstanding) at September 30, 2015 and March 31, 2015		915		915
Additional paid-in capital		2		2
Accumulated other comprehensive income		158		220
Retained earnings		7,783		7,383
Total shareholder's equity		8,858		8,520
Total liabilities and shareholder's equity	$	115,191	$	109,625

The following table presents the assets and liabilities of our consolidated variable interest entities (See Note 10).

	September 30, 2015		March 31, 2015
ASSETS
Finance receivables, net	$	14,659	$	11,509
Investments in operating leases, net		903		1,193
Other assets		30		15
Total assets	$	15,592	$	12,717
LIABILITIES
Debt	$	13,264	$	10,837
Other liabilities		3		3
Total liabilities	$	13,267	$	10,840

See accompanying Notes to Consolidated Financial Statements.

4

TOYOTA MOTOR CREDIT CORPORATION

CONSOLIDATED STATEMENT OF SHAREHOLDER’S EQUITY

(Dollars in millions)

(Unaudited)

					Accumulated
			Additional		other
	Capital		paid-in		comprehensive			Retained
	stock		capital		income			earnings			Total
Balance at March 31, 2014	$	915	$	2	$	200		$	6,621		$	7,738
Net income for the six months ended September 30, 2014		-		-		-			655			655
Other comprehensive income, net of tax		-		-		8			-			8
Dividend		-		-		-			(435	)		(435	)
Balance at September 30, 2014	$	915	$	2	$	208		$	6,841		$	7,966
Balance at March 31, 2015	$	915	$	2	$	220		$	7,383		$	8,520
Net income for the six months ended September 30, 2015		-		-		-			400			400
Other comprehensive loss, net of tax		-		-		(62	)		-			(62	)
Balance at September 30, 2015	$	915	$	2	$	158		$	7,783		$	8,858

See accompanying Notes to Consolidated Financial Statements.

5

TOYOTA MOTOR CREDIT CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOWS

(Dollars in millions)

(Unaudited)

	Six Months Ended September 30,
	2015			2014¹
Cash flows from operating activities:
Net income	$	400		$	655
Adjustments to reconcile net income to net cash provided by operating    activities:
Depreciation and amortization		2,833			2,313
Recognition of deferred income		(841	)		(733	)
Provision for credit losses		150			117
Amortization of deferred costs		326			307
Foreign currency and other adjustments to the carrying value of debt, net		191			(828	)
Net realized gains from sales and other-than-temporary impairment on    securities		10			(44	)
Net change in:		-			-
Restricted cash		(42	)		110
Derivative assets		2			-
Other assets (Note 8) and accrued income		65			(259	)
Deferred income taxes		252			399
Derivative liabilities		(35	)		16
Other liabilities		182			208
Net cash provided by operating activities		3,493			2,261
Cash flows from investing activities:
Purchase of investments in marketable securities		(2,674	)		(2,427	)
Proceeds from sales of investments in marketable securities		356			463
Proceeds from maturities of investments in marketable securities		2,921			2,339
Acquisition of finance receivables		(13,722	)		(13,775	)
Collection of finance receivables		12,411			12,446
Net change in wholesale and certain working capital receivables		1,057			1,000
Acquisition of investments in operating leases		(10,079	)		(8,800	)
Disposals of investments in operating leases		3,978			3,198
Net change in financing support provided to affiliates		177			836
Cash equivalents (restricted) un-restricted to acquire finance receivables and    investment in operating leases, net		-			1,077
Other, net		(17	)		(18	)
Net cash used in investing activities		(5,592	)		(3,661	)
Cash flows from financing activities:
Proceeds from issuance of debt		15,301			10,718
Payments on debt		(11,204	)		(6,940	)
Net change in commercial paper		552			(572	)
Net change in financing support provided by affiliates		1			11
Dividend paid to TFSA		-			(435	)
Net cash provided by financing activities		4,650			2,782
Net increase in cash and cash equivalents		2,551			1,382
Cash and cash equivalents at the beginning of the period		2,407			3,815
Cash and cash equivalents at the end of the period	$	4,958		$	5,197
Supplemental disclosures:
Interest paid	$	573		$	529
Income taxes (received) paid, net	$	(190	)	$	164

See accompanying Notes to Consolidated Financial Statements.

¹ Certain prior period amounts have been reclassified to conform to the current period presentation.

6

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 1 – Interim Financial Data

Basis of Presentation

The information furnished in these unaudited interim financial statements for the three and six months ended September 30, 2015 and 2014 has been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).  In the opinion of management, the unaudited financial information reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented.  The results of operations for the three and six months ended September 30, 2015 do not necessarily indicate the results which may be expected for the full fiscal year ending March 31, 2016 (“fiscal 2016”).

These financial statements should be read in conjunction with the Consolidated Financial Statements, significant accounting policies, and other notes to the Consolidated Financial Statements included in Toyota Motor Credit Corporation’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended March 31, 2015 (“fiscal 2015”), which was filed with the Securities and Exchange Commission on June 2, 2015.  References herein to “TMCC” denote Toyota Motor Credit Corporation, and references herein to “we”, “our”, and “us” denote Toyota Motor Credit Corporation and its consolidated subsidiaries.

Certain prior period amounts have been reclassified to conform to the current period presentation.  Related party transactions presented in the Consolidated Financial Statements are disclosed in Note 14 – Related Party Transactions of the Notes to Consolidated Financial Statements.

Assets Held-for-Sale

As of August 31, 2015, we reclassified certain assets and liabilities related to our industrial equipment retail, lease and dealer portfolios (hereinafter the “commercial finance business” or “disposal group”) to held-for-sale as all of the following criteria were met: management, having the authority to approve the action, committed to a plan to sell the disposal group; the disposal group was available for immediate sale in its present condition subject only to terms that are usual and customary; we located a buyer; the sale of the disposal group was determined to be probable, and transfer of the disposal group was expected to qualify for recognition as a completed sale within one year; the disposal group was actively marketed for sale at a price that was reasonable in relation to its current fair value; and actions required to complete the plan indicate that it was unlikely significant changes to the plan would be made or that the plan would be withdrawn.  

We initially measure a long-lived asset or disposal group that is classified as held-for-sale at the lower of its carrying value or fair value less any costs to sell.  Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met.  Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale.  We assess the fair value of a long-lived asset or disposal group, less any costs to sell, each reporting period it remains classified as held-for-sale.  We report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held-for-sale.

Cash flows associated with the assets held-for-sale are reflected as investing activities within the Consolidated Statement of Cash Flows.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.

7

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 1 – Interim Financial Data (Continued)

New Accounting Guidance

In May 2014, the Financial Accounting Standards Board ("FASB") issued new guidance on the recognition of revenue from contracts with customers.  This comprehensive standard will supersede virtually all existing revenue recognition guidance.  This standard applies to all contracts with customers except leases, insurance contracts, financial instruments, guarantees, and certain nonmonetary exchanges.  In August 2015, the FASB issued a one-year deferral of the effective date, with early adoption as of the original effective date permitted.  We expect to adopt the new guidance on its deferred effective date, which is April 1, 2018 for TMCC.  We are currently evaluating the potential impact of this guidance on our consolidated financial statements.  

In February 2015, the FASB issued new guidance that amends the analysis a reporting entity must perform to determine whether it should consolidate certain legal entities.  This accounting guidance is effective for us on April 1, 2016.  The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued new guidance that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset.  In August 2015, the FASB issued an additional update which clarifies that debt issuance costs for line of credit agreements may continue to be deferred and amortized.  This accounting guidance will be effective for us on April 1, 2016.   The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued new guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement.  While similar guidance exists under current US GAAP for cloud service providers, this update provides explicit guidance for a customer's accounting.  This accounting guidance will be effective for us on April 1, 2016.   The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In May 2015, the FASB issued new guidance that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient.  This accounting guidance is limited to footnote disclosure and will be effective for us on April 1, 2016.   The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In May 2015, the FASB issued new guidance that requires additional disclosures related to short-duration insurance contracts.  This accounting guidance will be effective for us for the annual period beginning April 1, 2016 and for interim periods within annual periods beginning April 1, 2017.   We are currently evaluating the potential impact of this guidance on our consolidated financial statements.

Recently Adopted Accounting Guidance

In April 2015, new FASB accounting guidance became effective that amends the requirements for the reporting of discontinued operations and requires certain additional disclosures. Under the new guidance, only disposals that represent a strategic shift and that have (or will have) a major effect on an entity’s operations and financial results should be presented as discontinued operations.  This guidance was adopted by us in August 2015 when we reclassified certain assets and liabilities related to our commercial finance business as held-for-sale.  As the sale of our commercial finance business did not represent a strategic shift that will have a major effect on our operations and financial results, it did not meet the criteria to be presented as a discontinued operation.  Our adoption of this guidance did not have a material impact on our consolidated financial statements.

8

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 2 – Fair Value Measurements

Recurring Fair Value Measurements

Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  The following tables summarize our financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy.  

	As of September 30, 2015
									Counterparty
									netting &			Fair
	Level 1		Level 2			Level 3			collateral			value
Cash equivalents:
Money market instruments	$	800	$	957		$	-		$	-		$	1,757
Certificates of deposit		-		2,750			-			-			2,750
Commercial paper		-		20			-			-			20
Corporate debt securities		-		39			-			-			39
Cash equivalents total		800		3,766			-			-			4,566
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations		3,284		72			2			-			3,358
Municipal debt securities		-		11			-			-			11
Certificates of deposit		400		-			-			-			400
Commercial paper		-		124			-			-			124
Corporate debt securities		10		213			8			-			231
Mortgage-backed securities:
U.S. government agency		-		52			-			-			52
Non-agency residential		-		-			4			-			4
Non-agency commercial		-		-			41			-			41
Asset-backed securities		-		-			36			-			36
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		-		53			-			-			53
U.S. government sector fund		-		324			-			-			324
Municipal sector fund		-		20			-			-			20
Investment grade corporate sector fund		-		264			-			-			264
High-yield sector fund		-		101			-			-			101
Real return sector fund		-		225			-			-			225
Mortgage sector fund		-		430			-			-			430
Asset-backed securities sector fund		-		73			-			-			73
Emerging market sector fund		-		119			-			-			119
International sector fund		-		150			-			-			150
Equity mutual fund		394		-			-			-			394
Available-for-sale securities total		4,088		2,231			91			-			6,410
Derivative assets:
Foreign currency swaps		-		191			10			-			201
Interest rate swaps		-		554			1			-			555
Counterparty netting and collateral		-		-			-			(705	)		(705	)
Derivative assets total		-		745			11			(705	)		51
Assets at fair value		4,888		6,742			102			(705	)		11,027
Derivative liabilities:
Foreign currency swaps		-		(1,721	)		-			-			(1,721	)
Interest rate swaps		-		(512	)		(2	)		-			(514	)
Counterparty netting and collateral		-		-			-			2,180			2,180
Liabilities at fair value		-		(2,233	)		(2	)		2,180			(55	)
Net assets at fair value	$	4,888	$	4,509		$	100		$	1,475		$	10,972

9

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 2 – Fair Value Measurements (Continued)

Derivative assets were reduced by a counterparty credit valuation adjustment of $2 million and $1 million as of September 30, 2015 and March 31, 2015, respectively.  Derivative liabilities were reduced by a non-performance credit valuation adjustment of less than $1 million as of March 31, 2015.

	As of March 31, 2015
								Counterparty
								netting &			Fair
	Level 1		Level 2			Level 3		collateral			value
Cash equivalents:
Money market instruments	$	249	$	820		$	-	$	-		$	1,069
U.S. government and agency obligations		40		-			-		-			40
Certificates of deposit		-		1,105			-		-			1,105
Cash equivalents total		289		1,925			-		-			2,214
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations		4,215		142			2		-			4,359
Municipal debt securities		-		12			-		-			12
Certificates of deposit		-		175			-		-			175
Commercial paper		37		-			-		-			37
Corporate debt securities		-		131			14		-			145
Mortgage-backed securities:
U.S. government agency		-		59			-		-			59
Non-agency residential		-		-			4		-			4
Non-agency commercial		-		-			44		-			44
Asset-backed securities		-		-			39		-			39
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		-		148			-		-			148
Short-term sector fund		-		37			-		-			37
U.S. government sector fund		-		335			-		-			335
Municipal sector fund		-		20			-		-			20
Investment grade corporate sector fund		-		268			-		-			268
High-yield sector fund		-		55			-		-			55
Real return sector fund		-		232			-		-			232
Mortgage sector fund		-		399			-		-			399
Asset-backed securities sector fund		-		72			-		-			72
Emerging market sector fund		-		71			-		-			71
International sector fund		-		160			-		-			160
Equity mutual fund		460		-			-		-			460
Available-for-sale securities total		4,712		2,316			103		-			7,131
Derivative assets:
Foreign currency swaps		-		210			7		-			217
Interest rate swaps		-		470			1		-			471
Counterparty netting and collateral		-		-			-		(635	)		(635	)
Derivative assets total		-		680			8		(635	)		53
Assets at fair value		5,001		4,921			111		(635	)		9,398
Derivative liabilities:
Foreign currency swaps		-		(1,888	)		-		-			(1,888	)
Interest rate swaps		-		(386	)		-		-			(386	)
Counterparty netting and collateral		-		-			-		2,184			2,184
Liabilities at fair value		-		(2,274	)		-		2,184			(90	)
Net assets at fair value	$	5,001	$	2,647		$	111	$	1,549		$	9,308

10

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 2 – Fair Value Measurements (Continued)

Transfers between levels of the fair value hierarchy are recognized at the end of their respective reporting periods. During the six months ended September 30, 2015, $37 million was transferred from Level 1 to Level 2 and $4 million was transferred from Level 3 to Level 2 due to changes in the transparency of inputs for determination of fair value for these instruments.  During the three months ended September 30, 2015, and the three and six months ended September 30, 2014, there were no transfers between levels.

The following tables summarize the reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs:

	Three Months Ended September 30, 2015
																							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			assets
	obligations		securities		securities			securities			securities			swaps			swaps			(liabilities)
Fair value, July 1, 2015	$	2	$	8	$	46		$	37		$	93		$	1		$	30		$	31		$	124
Total gains (losses)
Included in earnings		-		-		-			-			-			(1	)		(20	)		(21	)		(21	)
Included in other comprehensive income		-		-		-			-			-			-			-			-			-
Purchases, issuances, sales, and settlements
Purchases		-		-		-			-			-			-			-			-			-
Issuances		-		-		-			-			-			-			-			-			-
Sales		-		-		-			-			-			-			-			-			-
Settlements		-		-		(1	)		(1	)		(2	)		(1	)		-			(1	)		(3	)
Transfers in to Level 3		-		-		-			-			-			-			-			-			-
Transfers out of Level 3		-		-		-			-			-			-			-			-			-
Fair value, September 30, 2015	$	2	$	8	$	45		$	36		$	91		$	(1	)	$	10		$	9		$	100
The amount of total (losses)   included in earnings   attributable to assets held   at the reporting date														$	(1	)	$	(20	)		(21	)		(21	)

	Three Months Ended September 30, 2014
																								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			assets
(Dollars in millions)	obligations		securities			securities			securities			securities			swaps			swaps			(liabilities)
Fair value, July 1, 2014	$	2	$	12		$	45		$	29		$	88		$	3		$	78		$	81		$	169
Total gains (losses)
Included in earnings		-		-			-			-			-			(1	)		(25	)		(26	)		(26	)
Included in other comprehensive income		-		-			-			-			-			-			-			-			-
Purchases, issuances, sales, and settlements
Purchases		-		3			11			3			17			-			-			-			17
Issuances		-		-			-			-			-			-			-			-			-
Sales		-		(3	)		(5	)		-			(8	)		-			-			-			(8	)
Settlements		-		-			(1	)		(2	)		(3	)		-			-			-			(3	)
Transfers in to Level 3		-		-			-			-			-			-			-			-			-
Transfers out of Level 3		-		-			-			-			-			-			-			-			-
Fair value, September 30, 2014	$	2	$	12		$	50		$	30		$	94		$	2		$	53		$	55		$	149
The amount of total (losses)   included in earnings   attributable to assets held   at the reporting date															$	(1	)	$	(25	)	$	(26	)	$	(26	)

11

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 2 – Fair Value Measurements (Continued)

	Six Months Ended September 30, 2015
																								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			assets
	obligations		securities			securities			securities			securities			swaps			swaps			(liabilities)
Fair value, April 1, 2015	$	2	$	14		$	48		$	39		$	103		$	1		$	7		$	8		$	111
Total gains (losses)
Included in earnings		-		-			-			-			-			(1	)		7			6			6
Included in other comprehensive income		-		-			(1	)		-			(1	)		-			-			-			(1	)
Purchases, issuances, sales, and settlements																-			-
Purchases		-		-			-			-			-			-			-			-			-
Issuances		-		-			-			-			-			-			-			-			-
Sales		-		(2	)		-			(1	)		(3	)		-			-			-			(3	)
Settlements		-		-			(2	)		(2	)		(4	)		(1	)		(4	)		(5	)		(9	)
Transfers in to Level 3		-		-			-			-			-			-			-			-			-
Transfers out of Level 3		-		(4	)		-			-			(4	)		-			-			-			(4	)
Fair value, September 30, 2015	$	2	$	8		$	45		$	36		$	91		$	(1	)	$	10		$	9		$	100
The amount of total (losses) gains   included in earnings   attributable to assets held   at the reporting date															$	(1	)	$	7		$	6		$	6

	Six Months Ended September 30, 2014
																								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			assets
(Dollars in millions)	obligations		securities			securities			securities			securities			swaps			swaps			(liabilities)
Fair value, April 1, 2014	$	2	$	12		$	48		$	27		$	89		$	3		$	70		$	73		$	162
Total gains (losses)
Included in earnings		-		-			-			-			-			-			(12	)		(12	)		(12	)
Included in other comprehensive income		-		-			1			-			1			-			-			-			1
Purchases, issuances, sales, and settlements
Purchases		-		3			12			6			21			-			-			-			21
Issuances		-		-			-			-			-			-			-			-			-
Sales		-		(3	)		(7	)		-			(10	)		-			-			-			(10	)
Settlements		-		-			(4	)		(3	)		(7	)		(1	)		(5	)		(6	)		(13	)
Transfers in to Level 3		-		-			-			-			-			-			-			-			-
Transfers out of Level 3		-		-			-			-			-			-			-			-			-
Fair value, September 30, 2014	$	2	$	12		$	50		$	30		$	94		$	2		$	53		$	55		$	149
The amount of total (losses)   included in earnings   attributable to assets held   at the reporting date															$	-		$	(12	)	$	(12	)	$	(12	)

12

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 2 – Fair Value Measurements (Continued)

Nonrecurring Fair Value Measurements

Nonrecurring fair value measurements include Level 3 net finance receivables that are not measured at fair value on a recurring basis, but are subject to fair value adjustments utilizing the fair value of the underlying collateral when there is evidence of impairment. We did not have any significant nonrecurring fair value items as of September 30, 2015 and March 31, 2015.

Level 3 Fair Value Measurements

The fair value measurements of Level 3 financial assets and liabilities subject to recurring and nonrecurring fair value measurement, and the corresponding change in the fair value measurements of these assets and liabilities, were not significant to our Consolidated Balance Sheet or Consolidated Statement of Income as of and for the three and six months ended September 30, 2015 and as of and for the year ended March 31, 2015.

13

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 2 – Fair Value Measurements (Continued)

Financial Instruments

The following tables provide information about assets and liabilities not carried at fair value on a recurring basis in our Consolidated Balance Sheet:

			As of September 30, 2015
	Carrying								Total Fair
	value		Level 1		Level 2		Level 3		Value
Financial assets
Finance receivables, net
Retail loan	$	50,942	$	-	$	-	$	50,776	$	50,776
Wholesale		7,715		-		-		7,766		7,766
Real estate		4,513		-		-		4,342		4,342
Working capital		1,715		-		-		1,682		1,682
Other assets
Finance receivables, held-for-sale	$	755	$	-	$	-	$	756	$	756
Financial liabilities
Commercial paper	$	27,558	$	-	$	27,558	$	-	$	27,558
Unsecured notes and loans payable		54,275		-		54,138		1,353		55,491
Secured notes and loans payable		13,264		-		-		13,246		13,246

			As of March 31, 2015
	Carrying								Total Fair
	value		Level 1		Level 2		Level 3		Value
Financial assets
Finance receivables, net
Retail loan	$	49,734	$	-	$	-	$	49,887	$	49,887
Commercial		217		-		-		223		223
Wholesale		9,123		-		-		9,176		9,176
Real estate		4,602		-		-		4,564		4,564
Working capital		1,815		-		-		1,804		1,804
Financial liabilities
Commercial paper	$	27,006	$	-	$	27,006	$	-	$	27,006
Unsecured notes and loans payable		52,388		-		53,174		634		53,808
Secured notes and loans payable		10,837		-		-		10,832		10,832

As of August 31, 2015, certain assets related to our commercial finance business were reclassified as held-for-sale.  

The carrying value of each class of finance receivables includes accrued interest and deferred fees and costs, net of deferred income and the allowance for credit losses.  The finance receivables, net amount excludes related party transactions, for which the fair value approximates the carrying value, of $112 million and $94 million at September 30, 2015 and March 31, 2015, respectively and direct finance leases of $25 million and $308 million at September 30, 2015 and March 31, 2015, respectively.  The other assets which are finance receivables held-for-sale in the table above excludes related party transactions of $47 million, for which the fair value approximates the carrying value, and direct finance leases of $304 million at September 30, 2015.

The carrying value of unsecured notes and loans payable represents the sum of unsecured notes and loans payable and carrying value adjustment as described in Note 9 - Debt.

14

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 3 – Investments in Marketable Securities

We classify all of our investments in marketable securities as available-for-sale.  The amortized cost and estimated fair value of investments in marketable securities and related unrealized gains and losses were as follows:

	September 30, 2015
	Amortized		Unrealized		Unrealized			Fair
	cost		gains		losses			value
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations	$	3,354	$	4	$	-		$	3,358
Municipal debt securities		10		1		-			11
Certificates of deposit		400		-		-			400
Commercial paper		124		-		-			124
Corporate debt securities		231		3		(3	)		231
Mortgage-backed securities:
U.S. government agency		51		1		-			52
Non-agency residential		3		1		-			4
Non-agency commercial		41		1		(1	)		41
Asset-backed securities		36		-		-			36
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		53		-		-			53
U.S. government sector fund		317		7		-			324
Municipal sector fund		19		1		-			20
Investment grade corporate sector fund		253		11		-			264
High-yield sector fund		97		4		-			101
Real return sector fund		225		-		-			225
Mortgage sector fund		420		10		-			430
Asset-backed securities sector fund		64		9		-			73
Emerging market sector fund		119		-		-			119
International sector fund		161		-		(11	)		150
Equity mutual fund		175		219		-			394
Total investments in marketable securities	$	6,153	$	272	$	(15	)	$	6,410

15

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 3 – Investments in Marketable Securities (Continued)

	March 31, 2015
	Amortized		Unrealized		Unrealized			Fair
	cost		gains		losses			value
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations	$	4,357	$	3	$	(1	)	$	4,359
Municipal debt securities		10		2		-			12
Certificates of deposit		175		-		-			175
Commercial paper		37		-		-			37
Corporate debt securities		138		7		-			145
Mortgage-backed securities:
U.S. government agency		57		2		-			59
Non-agency residential		3		1		-			4
Non-agency commercial		43		1		-			44
Asset-backed securities		39		-		-			39
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		148		-		-			148
Short-term sector fund		35		2		-			37
U.S. government sector fund		311		24		-			335
Municipal sector fund		19		1		-			20
Investment grade corporate sector fund		256		15		(3	)		268
High-yield sector fund		50		6		(1	)		55
Real return sector fund		235		-		(3	)		232
Mortgage sector fund		390		9		-			399
Asset-backed securities sector fund		63		9		-			72
Emerging market sector fund		73		-		(2	)		71
International sector fund		146		14		-			160
Equity mutual fund		190		270		-			460
Total investments in marketable securities	$	6,775	$	366	$	(10	)	$	7,131

The fixed income mutual funds are investments in funds that are privately placed and managed by an open-end investment management company (the “Trust”).  If we elect to redeem shares, the Trust will normally redeem all shares for cash, but may, in unusual circumstances, redeem amounts exceeding the lesser of $250 thousand or 1 percent of the Trust’s asset value by payment in kind of securities held by the respective fund during any 90-day period.

16

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 3 – Investments in Marketable Securities (Continued)

Unrealized Losses on Securities

Investments in marketable securities in a consecutive loss position for less than twelve months and for greater than twelve months were not significant at September 30, 2015 and March 31, 2015.

Realized Gains and Losses on Securities

The following table represents realized gains and losses by transaction type for the following:

	Three Months Ended					Six Months Ended
	September 30,					September 30,
	2015			2014		2015			2014
Available-for-sale securities:
Realized gains on sales	$	14		$	32	$	26		$	44
Realized losses on sales	$	-		$	-	$	(1	)	$	-
Other-than-temporary impairment	$	(35	)	$	-	$	(35	)	$	-

Other-than-temporary impairment write-downs were not significant during the three and six months ended September 30, 2014.

Contractual Maturities

The amortized cost, fair value, and contractual maturities of available-for-sale debt instruments are summarized in the following table.  Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.

	September 30, 2015
	AmortizedCost		Fair Value
Available-for-sale debt instruments:
Due within 1 year	$	3,367	$	3,367
Due after 1 year through 5 years		591		594
Due after 5 years through 10 years		76		76
Due after 10 years		85		87
Mortgage-backed and asset-backed securities1		131		133
Total	$	4,250	$	4,257

¹ Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities do not have a single maturity date.

17

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 4 – Finance Receivables, Net

Finance receivables, net consist of retail and dealer accounts including accrued interest and deferred fees and costs, net of the allowance for credit losses and deferred income.  Securitized receivables represent retail loan receivables that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements, as discussed further in Note 10 – Variable Interest Entities.  Cash flows from these securitized receivables are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions.  They are not available for payment of our other obligations or to satisfy claims of our other creditors.

Finance receivables, net consisted of the following:

	September 30, 2015			March 31, 2015
Retail receivables	$	36,612		$	39,141
Securitized retail receivables		14,871			11,682
Dealer financing		14,170			15,744
		65,653			66,567
Deferred origination (fees) and costs, net		667			646
Deferred income		(921	)		(911	)
Allowance for credit losses
Retail and securitized retail receivables		(263	)		(301	)
Dealer financing		(114	)		(108	)
Total allowance for credit losses		(377	)		(409	)
Finance receivables, net	$	65,022		$	65,893

As of August 31, 2015, certain finance receivables, net related to our commercial finance business were reclassified as held-for-sale.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.  Finance receivables, net and retail receivables presented in the previous table includes direct finance lease receivables, net of $25 million and $308 million at September 30, 2015 and March 31, 2015, respectively.  

Credit Quality Indicators

We are exposed to credit risk on our finance receivables.  Credit risk is the risk of loss arising from the failure of customers or dealers to meet the terms of their contracts with us or otherwise fail to perform as agreed.

As of August 31, 2015, certain assets within the commercial and dealer products portfolio segments related to our commercial finance business were reclassified as held-for-sale.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.

Retail Loan and Commercial Portfolio Segments

Retail loan and commercial portfolio segments each consist of one class of finance receivables. While we use various credit quality metrics to develop our allowance for credit losses on the retail loan and commercial portfolio segments, we primarily utilize the aging of the individual accounts to monitor the credit quality of these finance receivables.  Based on our experience, the payment status of borrowers is the strongest indicator of the credit quality of the underlying receivables.  Payment status also impacts charge-offs.

Individual borrower accounts for each class of finance receivables within the retail loan and commercial portfolio segments are segregated into aging categories based on the number of days outstanding.  The aging for each class of finance receivables is updated monthly.

18

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 4 – Finance Receivables, Net (Continued)

Dealer Products Portfolio Segment

For the three classes of finance receivables within the dealer products portfolio segment (wholesale, real estate and working capital), all loans outstanding for an individual dealer or dealer group, which includes affiliated entities, are aggregated and evaluated collectively by dealer or dealer group.  This reflects the interconnected nature of financing provided to our individual dealer and dealer group customers, and their affiliated entities.

When assessing the credit quality of the finance receivables within the dealer products portfolio segment, we segregate the finance receivables account balances into four categories representing distinct credit quality indicators based on internal risk assessments.  The internal risk assessments for all finance receivables within the dealer products portfolio segment are updated on a monthly basis.

The four credit quality indicators are:

· Performing – Account not classified as either Credit Watch, At Risk or Default

· Credit Watch – Account designated for elevated attention

· At Risk – Account where there is an increased likelihood that default may exist based on qualitative and quantitative factors

· Default – Account is not currently meeting contractual obligations or we have temporarily waived certain contractual requirements

The tables below present each credit quality indicator by class of finance receivable:

	Retail Loan				Commercial
	September 30, 2015		March 31, 2015		September 30, 2015		March 31, 2015
Aging of finance receivables:
Current	$	50,621	$	49,684	$	-	$	511
30-59 days past due		631		467		-		8
60-89 days past due		154		100		-		2
90 days or greater past due		77		51		-		-
Total	$	51,483	$	50,302	$	-	$	521

	Wholesale				Real Estate				Working Capital
	September 30, 2015		March 31, 2015		September 30, 2015		March 31, 2015		September 30, 2015		March 31, 2015
Credit quality indicators:
Performing	$	6,913	$	7,993	$	3,861	$	3,782	$	1,564	$	1,643
Credit Watch		794		1,137		676		842		166		176
At Risk		67		60		31		37		30		32
Default		18		36		45		4		5		2
Total	$	7,792	$	9,226	$	4,613	$	4,665	$	1,765	$	1,853

19

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 4 – Finance Receivables, Net (Continued)

Impaired Finance Receivables

The following table summarizes the information related to our impaired loans by class of finance receivables:

	Impaired								Individually Evaluated
	Finance Receivables				Unpaid Principal Balance				Allowance
	September 30,		March 31,		September 30,		March 31,		September 30,		March 31,
	2015		2015		2015		2015		2015		2015
Impaired account balances individually evaluated for impairment with an allowance:
Wholesale	$	76	$	76	$	76	$	76	$	11	$	14
Real estate		86		52		86		52		13		10
Working capital		33		34		33		34		30		31
Total	$	195	$	162	$	195	$	162	$	54	$	55
Impaired account balances individually evaluated for impairment without an allowance:
Wholesale	$	108	$	105	$	108	$	105
Real estate		90		91		90		91
Working capital		4		2		4		2
Total	$	202	$	198	$	202	$	198
Impaired account balances aggregated and evaluated for impairment:
Retail loan	$	245	$	264	$	241	$	261
Commercial		-		-		-		-
Total	$	245	$	264	$	241	$	261
Total impaired account balances:
Retail loan	$	245	$	264	$	241	$	261
Commercial		-		-		-		-
Wholesale		184		181		184		181
Real estate		176		143		176		143
Working capital		37		36		37		36
Total	$	642	$	624	$	638	$	621

As of September 30, 2015 and March 31, 2015, the impaired finance receivables balance for accounts in the dealer products portfolio segment that were on nonaccrual status was $195 million and $172 million, respectively, and there were no charge-offs against the allowance for credit losses for these finance receivables.  Therefore, the impaired finance receivables balance is equal to the unpaid principal balance.  As of September 30, 2015 and March 31, 2015, impaired finance receivables in the retail portfolio segment recorded at the fair value of the collateral less estimated selling costs were insignificant and therefore excluded from the table above.

20

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 4 – Finance Receivables, Net (Continued)

The following table summarizes the average impaired loans by class of finance receivables as of the balance sheet date and the interest income recognized on these loans:

	Average Impaired FinanceReceivables								Interest Income Recognized
	Three Months Ended September 30,				Six Months Ended September 30,				Three Months Ended September 30,				Six Months Ended September 30,
	2015		2014		2015		2014		2015		2014		2015		2014
Impaired account balances individually evaluated for impairment with an allowance:
Wholesale	$	88	$	20	$	84	$	17	$	1	$	-	$	1	$	-
Real estate		88		20		76		23		-		-		1		-
Working capital		35		23		35		23		1		1		1		1
Total	$	211	$	63	$	195	$	63	$	2	$	1	$	3	$	1
Impaired account balances individually evaluated for impairment without an allowance:
Wholesale	$	104	$	51	$	105	$	51	$	1	$	-	$	1	$	-
Real estate		85		96		87		94		1		1		2		2
Working capital		4		3		3		3		-		-		-		-
Total	$	193	$	150	$	195	$	148	$	2	$	1	$	3	$	2
Impaired account balances aggregated and evaluated for impairment:
Retail loan	$	252	$	302	$	256	$	309	$	4	$	6	$	9	$	12
Commercial		-		1		-		1		-		-		-		-
Total	$	252	$	303	$	256	$	310	$	4	$	6	$	9	$	12
Total impaired account balances:
Retail loan	$	252	$	302	$	256	$	309	$	4	$	6	$	9	$	12
Commercial		-		1		-		1		-		-		-		-
Wholesale		192		71		189		68		2		-		2		-
Real estate		173		116		163		117		1		1		3		2
Working capital		39		26		38		26		1		1		1		1
Total	$	656	$	516	$	646	$	521	$	8	$	8	$	15	$	15

The primary source of interest income recognized on the loans in the table above is from performing troubled debt restructurings.  In addition, interest income recognized using a cash-basis method of accounting during the three and six months ended September 30, 2015 and 2014 was not significant.

21

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 4 – Finance Receivables, Net (Continued)

Troubled Debt Restructuring

For accounts not under bankruptcy protection, the amount of finance receivables modified as a troubled debt restructuring during the three and six months ended September 30, 2015 and 2014 was not significant for each class of finance receivables.  Troubled debt restructurings for non-bankrupt accounts within the retail loan class of finance receivables are comprised exclusively of contract term extensions that reduce the monthly payment due from the customer.  Troubled debt restructurings for accounts within the commercial portfolio class of finance receivables consist of contract term extensions, interest rate adjustments, or a combination of the two.  For the three classes of finance receivables within the dealer products portfolio segment, troubled debt restructurings include contract term extensions, interest rate adjustments, waivers of loan covenants, or any combination of the three.  Troubled debt restructurings of accounts not under bankruptcy protection did not include forgiveness of principal or interest rate adjustments during the three and six months ended September 30, 2015 and 2014. As of August 31, 2015, troubled debt restructurings related to our commercial finance business were reclassified as held-for-sale.  

We consider finance receivables under bankruptcy protection within the retail loan and commercial classes to be troubled debt restructurings as of the date we receive notice of a customer filing for bankruptcy protection, regardless of the ultimate outcome of the bankruptcy proceedings.  The bankruptcy court may impose modifications as part of the proceedings, including interest rate adjustments and forgiveness of principal.  For the three and six months ended September 30, 2015 and 2014, the financial impact of troubled debt restructurings related to accounts under bankruptcy protection was not significant to our Consolidated Statement of Income and Consolidated Balance Sheet. 

Payment Defaults

Finance receivables modified as troubled debt restructurings for which there was a subsequent payment default during the three and six months ended September 30, 2015 and 2014, and for which the modification occurred within twelve months of the payment default, were not significant for all classes of such receivables.

22

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 5 – Investments in Operating Leases, Net

Investments in operating leases, net consist of vehicle and equipment leases, net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses.  Securitized investments in operating leases represent beneficial interests in a pool of certain vehicle leases that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements as discussed further in Note 10 - Variable Interest Entities.  Cash flows from these securitized investments in operating leases are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions.  They are not available for payment of our other obligations or to satisfy claims of our other creditors.

Investments in operating leases, net consisted of the following:

	September 30, 2015			March 31, 2015
Investments in operating leases	$	40,897		$	37,555
Securitized investments in operating leases		1,242			1,571
		42,139			39,126
Deferred origination (fees) and costs, net		(191	)		(169	)
Deferred income		(1,080	)		(968	)
Accumulated depreciation		(7,031	)		(6,785	)
Allowance for credit losses		(96	)		(76	)
Investments in operating leases, net	$	33,741		$	31,128

As of August 31, 2015, investments in operating leases related to our commercial finance business were reclassified as held-for-sale.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.

23

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 6 – Allowance for Credit Losses

The following table provides information related to our allowance for credit losses on finance receivables and investments in operating leases:

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Allowance for credit losses at beginning of period	$	467		$	447		$	485		$	454
Provision for credit losses		105			79			150			117
Transferred to held-for-sale		(7	)		-			(7	)		-
Charge-offs, net of recoveries		(92	)		(81	)		(155	)		(126	)
Allowance for credit losses at end of period	$	473		$	445		$	473		$	445

Charge-offs are shown net of recoveries of $18 million and $38 million for the three and six months ended September 30, 2015, respectively, and recoveries of $20 million and $42 million for the three and six months ended September 30, 2014.

Allowance for Credit Losses and Finance Receivables by Portfolio Segment

The following tables provide information related to our allowance for credit losses and finance receivables by portfolio segment:

	Three Months Ended September 30, 2015
	Retail Loan			Commercial			DealerProducts			Total
Allowance for Credit Losses for Finance Receivables:
Beginning balance, July 1, 2015	$	279		$	1		$	115		$	395
Charge-offs		(82	)		-			-			(82	)
Recoveries		12			-			-			12
Provisions		54			1			3			58
Transferred to held-for-sale		-			(2	)		(4	)		(6	)
Ending balance, September 30, 2015	$	263		$	-		$	114		$	377
	Six Months Ended September 30, 2015
Beginning balance, April 1, 2015	$	299		$	2		$	108		$	409
Charge-offs		(142	)		(1	)		-			(143	)
Recoveries		27			-			-			27
Provisions		79			1			10			90
Transferred to held-for-sale		-			(2	)		(4	)		(6	)
Ending balance, September 30, 2015	$	263		$	-		$	114		$	377
Ending balance: Individually evaluated for impairment	$	-		$	-		$	54		$	54
Ending balance: Collectively evaluated for impairment	$	263		$	-		$	60		$	323
Finance Receivables:
Ending balance, September 30, 2015	$	51,483		$	-		$	14,170		$	65,653
Ending balance: Individually evaluated for impairment	$	-		$	-		$	397		$	397
Ending balance: Collectively evaluated for impairment	$	51,483		$	-		$	13,773		$	65,256

24

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 6 – Allowance for Credit Losses (Continued)

The ending balance of finance receivables collectively evaluated for impairment includes approximately $245 million of finance receivables within the retail loan segment that are specifically identified as impaired.  These amounts are aggregated with their respective portfolio segments when determining the allowance for credit losses as of September 30, 2015, as they are deemed to be insignificant for individual evaluation and we have determined that the allowance for credit losses would not be materially different if the amounts had been individually evaluated for impairment.  The ending balance of finance receivables for the dealer products portfolio segment collectively evaluated for impairment as of September 30, 2015 includes $992 million in receivables, which are guaranteed by Toyota Motor Sales, U.S.A., Inc. (“TMS”) and $138 million in receivables, which are guaranteed by third party private Toyota distributors.  These receivables are related to certain Toyota and Lexus dealers and other third parties to whom we provided financing at the request of TMS or such private distributors.

	Three Months Ended September 30, 2014
	Retail Loan			Commercial			DealerProducts			Total
Allowance for Credit Losses for Finance Receivables:
Beginning balance, July 1, 2014	$	291		$	2		$	88		$	381
Charge-offs		(76	)		(1	)		-			(77	)
Recoveries		15			-			-			15
Provisions		69			-			(7	)		62
Ending balance, September 30, 2014	$	299		$	1		$	81		$	381
	Six Months Ended September 30, 2014
Beginning balance, April 1, 2014	$	296		$	2		$	88		$	386
Charge-offs		(128	)		(1	)		-			(129	)
Recoveries		31			-			-			31
Provisions		100			-			(7	)		93
Ending balance, September 30, 2014	$	299		$	1		$	81		$	381
Ending balance: Individually evaluated for impairment	$	-		$	-		$	26		$	26
Ending balance: Collectively evaluated for impairment	$	299		$	1		$	55		$	355
Finance Receivables:
Ending balance, September 30, 2014	$	50,726		$	481		$	14,953		$	66,160
Ending balance: Individually evaluated for impairment	$	-		$	-		$	206		$	206
Ending balance: Collectively evaluated for impairment	$	50,726		$	481		$	14,747		$	65,954

The ending balance of finance receivables collectively evaluated for impairment includes approximately $292 million and $1 million of finance receivables within the retail loan and commercial portfolio segments, respectively, that are specifically identified as impaired.  These amounts are aggregated with their respective portfolio segments when determining the allowance for credit losses as of September 30, 2014, as they are deemed to be insignificant for individual evaluation and we have determined that the allowance for credit losses would not be materially different if the amounts had been individually evaluated for impairment.  The ending balance of finance receivables for the dealer products portfolio segment collectively evaluated for impairment as of September 30, 2014 includes $866 million in receivables, which are guaranteed by TMS and $152 million in receivables, which are guaranteed by third party private Toyota distributors.  These receivables are related to certain Toyota and Lexus dealers and other third parties to whom we provided financing at the request of TMS or such private distributors.

25

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 6 – Allowance for Credit Losses (Continued)

Past Due Finance Receivables and Investments in Operating Leases

The following table shows aggregate balances of finance receivables and investments in operating leases 60 or more days past due:

	September 30, 2015		March 31, 2015
Aggregate balances 60 or more days past due
Finance receivables	$	231	$	153
Investments in operating leases		81		52
Total	$	312	$	205

Substantially all finance and operating lease receivables do not involve recourse to the dealer in the event of customer default.  Finance and operating lease receivables 60 or more days past due include accounts in bankruptcy and accounts greater than 120 days past due, which are recorded at the fair value of collateral less estimated costs to sell. Accounts for which vehicles have been repossessed are excluded.

Past Due Finance Receivables by Class

The following tables summarize the aging of finance receivables by class:

	As of September 30, 2015
	30 - 59 Days Past Due		60 - 89 Days Past Due		90Daysor Greater Past Due		TotalPast Due		Current		TotalFinance Receivables		90 Days or GreaterPast Due and Accruing
Retail loan	$	631	$	154	$	77	$	862	$	50,621	$	51,483	$	53
Wholesale		-		-		-		-		7,792		7,792		-
Real estate		-		-		-		-		4,613		4,613		-
Working capital		-		-		-		-		1,765		1,765		-
Total	$	631	$	154	$	77	$	862	$	64,791	$	65,653	$	53

	As of March 31, 2015
	30 - 59 Days Past Due		60 - 89 Days Past Due		90Daysor Greater Past Due		TotalPast Due		Current		TotalFinance Receivables		90Daysor GreaterPast Due and Accruing
Retail loan	$	467	$	100	$	51	$	618	$	49,684	$	50,302	$	32
Commercial		8		2		-		10		511		521		-
Wholesale		-		-		-		-		9,226		9,226		-
Real estate		-		-		-		-		4,665		4,665		-
Working capital		-		-		-		-		1,853		1,853		-
Total	$	475	$	102	$	51	$	628	$	65,939	$	66,567	$	32

As of August 31, 2015, certain finance receivables related to our commercial finance business were reclassified as held-for-sale.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.

26

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 7 – Derivatives, Hedging Activities and Interest Expense

Derivative Instruments

Our liabilities consist mainly of fixed and floating rate debt, denominated in various currencies, which we issue in the global capital markets, while our assets consist primarily of U.S. dollar denominated, fixed rate receivables.  We enter into interest rate swaps and foreign currency swaps to hedge the interest rate and foreign currency risks that result from the different characteristics of our assets and liabilities.  Our use of derivative transactions is intended to reduce long-term fluctuations in cash flows and fair value adjustments of assets and liabilities caused by market movements.  All of our derivative activities are authorized and monitored by our management and our Asset Liability Committee which provides a framework for financial controls and governance to manage market risk.

Credit Risk Related Contingent Features

Our derivative contracts are governed by International Swaps and Derivatives Association (“ISDA”) Master Agreements.  Substantially all of these ISDA Master Agreements contain reciprocal ratings triggers providing either party with an option to terminate the agreement at market value in the event of a ratings downgrade of the other party below a specified threshold.  As of September 30, 2015, we have daily valuation and collateral exchange arrangements with all of our counterparties.  Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization arrangement.  However, due to the time required to move collateral, there may be a delay of up to one day between the exchange of collateral and the valuation of our derivatives.

The aggregate fair value of derivative instruments that contain credit risk related contingent features that were in a net liability position at September 30, 2015 was $55 million, excluding adjustments made for our own non-performance risk.  However, we would not be required to post additional collateral to the counterparties with whom we were in a net liability position at September 30, 2015 if our credit ratings were to decline, since we fully collateralize without regard to credit ratings with these counterparties.

27

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued)

Derivative Activity Impact on Financial Statements

The following tables show the financial statement line item and amount of our derivative assets and liabilities that are reported in the Consolidated Balance Sheet:

	As of September 30, 2015
	Hedge accounting				Non-hedge
	derivatives				accountingderivatives				Total
			Fair				Fair				Fair
	Notional		value		Notional		value		Notional		value
Other assets
Interest rate swaps	$	-	$	-	$	26,650	$	555	$	26,650	$	555
Foreign currency swaps		271		21		1,399		180		1,670		201
Total	$	271	$	21	$	28,049	$	735	$	28,320	$	756
Counterparty netting and collateral held												(705	)
Carrying value of derivative    contracts – Other assets											$	51
Other liabilities
Interest rate swaps	$	-	$	-	$	68,128	$	514	$	68,128	$	514
Interest rate caps		-		-		30		-		30		-
Foreign currency swaps		251		58		13,830		1,663		14,081		1,721
Total	$	251	$	58	$	81,988	$	2,177	$	82,239	$	2,235
Counterparty netting and collateral held												(2,180	)
Carrying value of derivative    contracts – Other liabilities											$	55

As of September 30, 2015, we held collateral of $121 million, which offset derivative assets, and posted collateral of $1,596 million, which offset derivative liabilities.  We also posted excess collateral of $11 million, which we did not use to offset derivative liabilities.   

28

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued)

	As of March 31, 2015
	Hedge accounting				Non-hedge
	derivatives				accountingderivatives				Total
			Fair				Fair				Fair
	Notional		value		Notional		value		Notional		value
Other Assets
Interest rate swaps	$	190	$	4	$	26,549	$	467	$	26,739	$	471
Foreign currency swaps		271		24		913		193		1,184		217
Total	$	461	$	28	$	27,462	$	660	$	27,923	$	688
Counterparty netting and collateral held												(635	)
Carrying value of derivative    contracts – Other assets											$	53
Other liabilities
Interest rate swaps	$	-	$	-	$	64,852	$	386	$	64,852	$	386
Interest rate caps		-		-		50		-		50		-
Foreign currency swaps		251		43		12,971		1,845		13,222		1,888
Total	$	251	$	43	$	77,873	$	2,231	$	78,124	$	2,274
Counterparty netting and collateral held												(2,184	)
Carrying value of derivative    contracts – Other liabilities											$	90

As of March 31, 2015, we held collateral of $145 million which offset derivative assets, and posted collateral of $1,694 million which offset derivative liabilities.  We also held excess collateral of $10 million which we did not use to offset derivative assets, and we posted excess collateral of $2 million which we did not use to offset derivative liabilities.

29

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued)

The following table summarizes the components of interest expense, including the location and amount of gains and losses on derivative instruments and related hedged items, as reported in our Consolidated Statement of Income:

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Interest expense on debt	$	307		$	298		$	630		$	619
Interest income on hedge accounting derivatives		(4	)		(10	)		(8	)		(25	)
Interest income on non-hedge accounting foreign currency    swaps		(21	)		(37	)		(55	)		(92	)
Interest expense on non-hedge accounting interest rate swaps		31			27			58			64
Interest expense on debt and derivatives,  net		313			278			625			566
Loss on hedge accounting derivatives:
Interest rate swaps		-			5			-			10
Foreign currency swaps		2			64			17			63
Loss on hedge accounting derivatives		2			69			17			73
Less hedged item:  change in fair value of fixed rate debt		(3	)		(69	)		(18	)		(73	)
Ineffectiveness related to hedge accounting derivatives		(1	)		-			(1	)		-
(Gain) loss from foreign currency transactions    and non-hedge accounting derivatives:
(Gain) loss on non-hedge accounting foreign currency    transactions		(200	)		(867	)		154			(787	)
Loss (gain) on non-hedge accounting foreign currency swaps		141			866			(93	)		711
(Gain) loss on non-hedge accounting interest rate    swaps		(50	)		(62	)		26			(145	)
Total interest expense	$	203		$	215		$	711		$	345

Interest expense on debt and derivatives represents net interest settlements and changes in accruals.  Gains and losses from hedge accounting derivatives and foreign currency transactions exclude net interest settlements and changes in accruals.

The relative fair value allocation of derivative credit value adjustments for counterparty and non-performance credit risk within interest expense is not significant for the three and six months ended September 30, 2015 and 2014 as we fully collateralize our derivatives without regard to credit ratings.

30

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 8 – Other Assets and Other Liabilities

Other assets and other liabilities consisted of the following:

	September 30, 2015		March 31, 2015
Other assets:
Notes receivable from affiliates	$	1,007	$	1,184
Used vehicles held for sale		225		188
Deferred charges		121		122
Income taxes receivable		5		174
Derivative assets		51		53
Assets held-for-sale		2,127		-
Other assets		698		561
Total other assets	$	4,234	$	2,282
Other liabilities:
Unearned insurance premiums and contract revenues	$	1,921	$	1,825
Derivative liabilities		55		90
Accounts payable and accrued expenses		899		855
Deferred income		441		405
Liabilities held-for-sale		13		-
Other liabilities		174		180
Total other liabilities	$	3,503	$	3,355

In December 2014, we entered into an agreement for the sale of certain assets and liabilities relating to the commercial finance business to Toyota Industries Commercial Finance, Inc. (“TICF”), a newly-formed subsidiary of Toyota Industries Corporation, which forms part of the group of companies known as the Toyota Group and is a related party to TMCC.  In August 2015, a closing date was determined and several closing conditions were resolved such that we determined all six held-for-sale criteria had been satisfied, which resulted in the reclassification of the assets and liabilities relating to our commercial finance business to held-for-sale as of August 31, 2015.  The reclassification occurred at carrying value, as the fair value exceeded carrying value as of August 31, 2015.  See Note 1 – Interim Financial Data of the Notes to the Consolidated Financial Statements for additional detail.

The assets held-for-sale in the table above include approximately $1.1 billion of finance receivables, net and $1.0 billion of investments in operating leases, net as of September 30, 2015.  The major components of finance receivables which are included in assets held-for-sale are $546 million of commercial loan receivables, $490 million of wholesale receivables, $53 million of real estate receivables, and $16 million of working capital receivables.  Finance receivables held-for-sale within the dealer products portfolio segment are primarily classified as performing.   The past-due portion of finance receivables held-for-sale within the commercial portfolio segment is not significant as of September 30, 2015.    

31

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 9 – Debt

Debt and the related weighted average contractual interest rates are summarized as follows:

					Weighted average
					contractual interest rates
	September 30,		March 31,		September 30,			March 31,
	2015		2015		2015			2015
Commercial paper	$	27,558	$	27,006		0.29	%		0.21	%
Unsecured notes and loans payable		54,215		52,307		1.84	%		1.86	%
Secured notes and loans payable		13,264		10,837		0.67	%		0.60	%
Carrying value adjustment		60		81
Total debt	$	95,097	$	90,231		1.23	%		1.22	%

The commercial paper balance includes unamortized premiums and discounts.  As of September 30, 2015, our commercial paper had a weighted average remaining maturity of 74 days, while our notes and loans payable mature on various dates through fiscal 2047.  Weighted average contractual interest rates are calculated based on original notional or par value before consideration of premium or discount.

The carrying value of our unsecured notes and loans payable at September 30, 2015 included $18.7 billion of unsecured floating rate debt with contractual interest rates ranging from 0 percent to 3.4 percent and $35.5 billion of unsecured fixed rate debt with contractual interest rates ranging from 0.8 percent to 9.4 percent.  The carrying value of our unsecured notes and loans payable at March 31, 2015 included $17.4 billion of unsecured floating rate debt with contractual interest rates ranging from 0 percent to 3.3 percent and $35.0 billion of unsecured fixed rate debt with contractual interest rates ranging from 0.8 percent to 9.4 percent.  Upon issuance of fixed rate notes, we generally elect to enter into interest rate swaps to convert fixed rate payments on notes to floating rate payments.

Included in unsecured notes and loans payable are notes and loans denominated in various foreign currencies, unamortized premiums and discounts and the effects of foreign currency transaction gains and losses on non-hedged or de-designated foreign currency denominated notes and loans payable.  At September 30, 2015 and March 31, 2015, the carrying values of these foreign currency denominated notes payable were $13.9 billion and $12.4 billion, respectively.  Concurrent with the issuance of these foreign currency unsecured notes, we entered into currency swaps in the same notional amount to convert non-U.S. currency payments to U.S. dollar denominated payments.

Our secured notes and loans payable are denominated in U.S. dollars and consist of both fixed and variable rate debt with interest rates ranging from 0.4 percent to 1.7 percent at September 30, 2015 and 0.4 percent to 1.5 percent at March 31, 2015.  Secured notes and loans are issued by on-balance sheet securitization trusts, as further discussed in Note 10 – Variable Interest Entities.  These notes are repayable only from collections on the underlying securitized retail finance receivables and the beneficial interests in investments in operating leases and from related credit enhancements.

The carrying value adjustment on debt represents the effects of fair value adjustments to debt in hedging relationships, accrued redemption premiums, and the unamortized fair value adjustments on the hedged item for terminated fair value hedge accounting relationships.  The carrying value adjustment on debt decreased by $21 million at September 30, 2015 compared to March 31, 2015 primarily as a result of a stronger U.S. dollar relative to certain other currencies in which our hedged debt is denominated. 

32

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 10 – Variable Interest Entities

Consolidated Variable Interest Entities

We use one or more special purpose entities that are considered Variable Interest Entities (“VIEs”) to issue asset-backed securities to third party bank-sponsored asset-backed securitization vehicles and to investors in securitization transactions.  The securities issued by these VIEs are backed by the cash flows related to retail finance receivables and beneficial interests in investments in operating leases (“Securitized Assets”).  We hold variable interests in the VIEs that could potentially be significant to the VIEs.  We determined that we are the primary beneficiary of the securitization trusts because (i) our servicing responsibilities for the Securitized Assets give us the power to direct the activities that most significantly impact the performance of the VIEs, and (ii) our variable interests in the VIEs give us the obligation to absorb losses and the right to receive residual returns that could potentially be significant.

The following tables show the assets and liabilities related to our VIE securitization transactions that were included in our financial statements:

	September 30, 2015
			VIE Assets						VIE Liabilities
			Gross		Net
	Restricted Cash		Securitized Assets		Securitized Assets		Other Assets		Debt		Other Liabilities
Retail finance receivables	$	771	$	14,871	$	14,659	$	5	$	12,656	$	3
Investments in operating leases		54		1,242		903		25		608		-
Total	$	825	$	16,113	$	15,562	$	30	$	13,264	$	3

	March 31, 2015
			VIE Assets						VIE Liabilities
			Gross		Net
	Restricted Cash		Securitized Assets		Securitized Assets		Other Assets		Debt		Other Liabilities
Retail finance receivables	$	730	$	11,682	$	11,509	$	4	$	9,980	$	3
Investment in operating leases		54		1,571		1,193		11		857		-
Total	$	784	$	13,253	$	12,702	$	15	$	10,837	$	3

Restricted cash shown in the table above represents collections from the underlying Securitized Assets and certain reserve deposits held by TMCC for the VIEs and is included as part of the Restricted Cash and Cash Equivalents on our Consolidated Balance Sheet.  Gross Securitized Assets represent finance receivables and beneficial interests in investments in operating leases securitized for the asset-backed securities issued.  Net Securitized Assets are presented net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses.  Other Assets represent used vehicles held-for-sale that were repossessed by or returned to TMCC for the benefit of the VIEs.  The related debt of these consolidated VIEs is presented net of $1,522 million and $1,275 million of securities retained by TMCC at September 30, 2015 and March 31, 2015, respectively.  Other Liabilities represents accrued interest on the debt of the consolidated VIEs.

The assets of the VIEs and the restricted cash held by TMCC serve as the sole source of repayment for the asset-backed securities issued by these entities.  Investors in the notes issued by the VIEs do not have recourse to us or our other assets, with the exception of customary representation and warranty repurchase provisions and indemnities.

As the primary beneficiary of these entities, we are exposed to credit, residual value, interest rate, and prepayment risk from the Securitized Assets in the VIEs.  However, our exposure to these risks did not change as a result of the transfer of the assets to the VIEs.  We may also be exposed to interest rate risk arising from the secured notes issued by the VIEs.

In addition, we entered into interest rate swaps with certain special purpose entities that issue variable rate debt.  Under the terms of these swaps, the special purpose entities are obligated to pay TMCC a fixed rate of interest on certain payment dates in exchange for receiving a floating rate of interest on notional amounts equal to the outstanding balance of the secured debt.  

33

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 10 – Variable Interest Entities (Continued)

This arrangement enables the special purpose entities to mitigate the interest rate risk inherent in issuing variable rate debt that is secured by fixed rate Securitized Assets.

The transfers of the Securitized Assets to the special purpose entities in our securitizations are considered to be sales for legal purposes.  However, the Securitized Assets and the related debt remain on our Consolidated Balance Sheet.  We recognize financing revenue on the Securitized Assets and interest expense on the secured debt issued by the special purpose entities.  We also maintain an allowance for credit losses on the Securitized Assets to cover estimated probable credit losses using a methodology consistent with that used for our non-securitized asset portfolio.  The interest rate swaps between TMCC and the special purpose entities are considered intercompany transactions and therefore are eliminated in our consolidated financial statements.

Non-consolidated Variable Interest Entities

We provide lending to Toyota dealers through the Toyota Dealer Investment Group’s Dealer Capital Program (“TDIG Program”) operated by our affiliate TMS, which has an equity position in these dealerships.  Dealers participating in this program have been determined to be VIEs.  We do not consolidate the dealerships in this program as we are not the primary beneficiary and any exposure to loss is limited to the amount of the credit facility.  At September 30, 2015 and March 31, 2015, amounts due from these dealers under the TDIG Program that are classified as finance receivables, net in the Consolidated Balance Sheet and revenues received during the three and six months ended September 30, 2015 and 2014 were not significant. 

We also have other lending relationships, which have been determined to be VIEs, but these relationships are not consolidated as we are not the primary beneficiary.  Amounts due under these relationships were not significant.

34

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 11 – Liquidity Facilities and Letters of Credit

For additional liquidity purposes, we maintain syndicated bank credit facilities with certain banks.

364 Day Credit Agreement, Three Year Credit Agreement and Five Year Credit Agreement

In November 2014, TMCC, Toyota Credit de Puerto Rico Corp. (“TCPR”) and other Toyota affiliates entered into a $5.0 billion 364 day syndicated bank credit facility, a $5.0 billion three year syndicated bank credit facility and a $5.0 billion five year syndicated bank credit facility, expiring in fiscal 2016, 2018, and 2020, respectively.

The ability to make draws is subject to covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets.  These agreements may be used for general corporate purposes and none were drawn upon as of September 30, 2015 and March 31, 2015.  We are in compliance with the covenants and conditions of the credit agreements described above.

Other Unsecured Credit Agreements

TMCC has entered into additional unsecured credit facilities with various banks.  As of September 30, 2015, TMCC had committed bank credit facilities totaling $5.5 billion of which $1.9 billion, $850 million, $1.9 billion, $450 million and $375 million mature in fiscal 2016, 2017, 2018, 2019 and 2020, respectively.

These credit agreements contain covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets.  These credit facilities were not drawn upon as of September 30, 2015 and March 31, 2015. We are in compliance with the covenants and conditions of the credit agreements described above.

35

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 12 – Commitments and Contingencies

Commitments and Guarantees

We have entered into certain commitments and guarantees for which the maximum unfunded amounts are summarized in the table below:

	September 30, 2015		March 31, 2015
Commitments:
Credit facilities commitments with vehicle and    industrial equipment dealers	$	1,311	$	1,137
Minimum lease commitments		60		60
Total commitments		1,371		1,197
Guarantees of affiliate pollution control and    solid waste disposal bonds		100		100
Total commitments and guarantees	$	1,471	$	1,297

Wholesale financing demand note facilities are not considered to be contractual commitments as they are not binding arrangements under which TMCC is required to perform.

We are party to a 15-year lease agreement, which expires in 2018, with TMS for our headquarters location in the TMS headquarters complex in Torrance, California.  Minimum lease commitments include $20 million and $23 million for facilities leases with affiliates at September 30, 2015 and March 31, 2015, respectively.  At September 30, 2015, minimum future commitments under lease agreements to which we are a lessee, including those under the TMS lease, are as follows:

	Futureminimum
Years ending March 31,	leasepayments
2016	$	10
2017		21
2018		16
2019		8
2020		3
Thereafter		2
Total	$	60

Commitments

We provide fixed and variable rate credit facilities to vehicle and industrial equipment dealers.  These credit facilities are typically used for facilities refurbishment, real estate purchases, and working capital requirements.  These loans are generally collateralized with liens on real estate, vehicle inventory, and/or other dealership assets, as appropriate.  We obtain a personal guarantee from the vehicle or industrial equipment dealer or a corporate guarantee from the dealership when deemed prudent.  Although the loans are typically collateralized or guaranteed, the value of the underlying collateral or guarantees may not be sufficient to cover our exposure under such agreements.  Our credit facility pricing reflects market conditions, the competitive environment, the level of dealer support required for the facility, and the credit worthiness of each dealer.  Amounts drawn under these facilities are reviewed for collectability on a quarterly basis, in conjunction with our evaluation of the allowance for credit losses.  We also provide financing to various multi-franchise dealer organizations, often as part of a lending consortium, for wholesale, working capital, real estate, and business acquisitions.

On April 28, 2014, the Company announced that our corporate headquarters will move from Torrance, California to Plano, Texas beginning in 2017 as part of TMC’s planned consolidation of its three North American headquarters for manufacturing, sales and marketing to a single new headquarters facility.   To date, the Company has not incurred any significant costs related to employees, lease termination or other related relocation expenses as a result of this planned headquarters move.  These moving costs are currently estimated to be approximately $80 million and will be expensed as incurred over the next several years.

36

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 12 – Commitments and Contingencies (Continued)

Guarantees and Other Contingencies

TMCC has guaranteed bond obligations totaling $100 million in principal that were issued by Putnam County, West Virginia and Gibson County, Indiana to finance the construction of pollution control facilities at manufacturing plants of certain TMCC affiliates.  The bonds mature in the following fiscal years ending March 31: 2028 - $20 million; 2029 - $50 million; 2030 - $10 million; 2031 - $10 million; and 2032 - $10 million.  TMCC would be required to perform under the guarantees in the event of non-payment on the bonds and other related obligations.  TMCC is entitled to reimbursement by the affiliates for any amounts paid.  TMCC receives an annual fee of $78 thousand for guaranteeing such payments.  TMCC has not been required to perform under any of these affiliate bond guarantees as of September 30, 2015 and March 31, 2015.

Indemnification

In the ordinary course of business, we enter into agreements containing indemnification provisions standard in the industry related to several types of transactions, including, but not limited to, debt funding, derivatives, securitization transactions, and our vendor and supplier agreements.  Performance under these indemnities would occur upon a breach of the representations, warranties or covenants made or given, or a third party claim. In addition, we have agreed in certain debt and derivative issuances, and subject to certain exceptions, to gross-up payments due to third parties in the event that withholding tax is imposed on such payments.  In addition, certain of our funding arrangements may require us to pay lenders for increased costs due to certain changes in laws or regulations.  Due to the difficulty in predicting events which could cause a breach of the indemnification provisions or trigger a gross-up or other payment obligation, we are not able to estimate our maximum exposure to future payments that could result from claims made under such provisions.  We have not made any material payments in the past as a result of these provisions, and as of September 30, 2015, we determined that it is not probable that we will be required to make any material payments in the future.  As of September 30, 2015 and March 31, 2015, no amounts have been recorded under these indemnification provisions.

Litigation and Governmental Proceedings

Various legal actions, governmental proceedings and other claims are pending or may be instituted or asserted in the future against us with respect to matters arising in the ordinary course of business.  Certain of these actions are or purport to be class action suits, seeking sizeable damages and/or changes in our business operations, policies and practices.  Certain of these actions are similar to suits that have been filed against other financial institutions and captive finance companies.  We perform periodic reviews of pending claims and actions to determine the probability of adverse verdicts and resulting amounts of liability.  We establish accruals for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated.  When we are able, we also determine estimates of reasonably possible loss or range of loss, whether in excess of any related accrued liability or where there is no accrued liability.  Given the inherent uncertainty associated with legal matters, the actual costs of resolving legal claims and associated costs of defense may be substantially higher or lower than the amounts for which accruals have been established.  Based on available information and established accruals, we do not believe it is reasonably possible that the results of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial condition or results of operations.

As previously disclosed, we continue to engage in communications with the Consumer Financial Protection Bureau and the U.S. Department of Justice (together, the “Agencies”) regarding our purchases of auto finance contracts from dealers and related discretionary dealer compensation practices. As of September 30, 2015, we have recorded as a loss contingency an amount that was not material to our consolidated financial condition or results of operations. Based on the current state of discussions with the Agencies, we believe the range of reasonably possible losses in excess of the amount accrued is not material.  We are continuing discussions with the Agencies and intend to achieve a voluntary resolution to these matters. However, if such resolution does not occur, we may be subject to an enforcement action.  In addition, we have received a request for documents and information from the New York State Department of Financial Services relating to our lending practices (including fair lending), and we are fully cooperating with this request.  We cannot predict the outcome of this request given its preliminary status.

37

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 13 – Income Taxes

Our effective tax rate was 37 percent for the first half of fiscal 2016 and fiscal 2015, respectively and 38 percent for the second quarter of fiscal 2016 and fiscal 2015, respectively. Our provision for income taxes for the three and six months ended September 30, 2015 was $161 million and $231 million, respectively, compared to $176 million and $389 million for the same periods in fiscal 2015.  The decrease in the provision is consistent with the decrease in our income before tax for the first half and second quarter of fiscal 2016 compared to the same periods in fiscal 2015.

Tax-related Contingencies

As of September 30, 2015, we remain under IRS examination for fiscal 2016 and 2015.  The IRS examination for fiscal 2014 was concluded in the second quarter of fiscal 2016.  

We periodically review our uncertain tax positions.  Our assessment is based on many factors including the ongoing IRS audits.  For the quarter ended September 30, 2015, our assessment did not result in a material change in unrecognized tax benefits.

Our deferred tax assets were $2.1 billion and $2.2 billion at September 30, 2015 and March 31, 2015, and were primarily due to the deferred deduction of allowance for credit losses and cumulative federal tax loss carryforwards that expire in varying amounts beginning in fiscal 2029 through fiscal 2036.  The total deferred tax liability at September 30, 2015, net of these deferred tax assets, was $7.7 billion compared with $7.5 billion at March 31, 2015.  Realization with respect to the federal tax loss carryforwards is dependent on sufficient income prior to expiration of the loss carryforwards.  Although realization is not assured, management believes it is more likely than not that the deferred tax assets will be realized.  The amount of the deferred tax assets considered realizable could be reduced if management’s estimates change.

In October 2015, TMCC sold its commercial finance business to TICF.  Pursuant to an agreement with TICF, TMCC will recognize a taxable gain that will result in a federal and state income tax liability in the third quarter of fiscal 2016.

38

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 14 – Related Party Transactions

As of September 30, 2015, there were no material changes to our related party agreements or relationships as described in our fiscal 2015 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						Six Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Net financing revenues:
Manufacturers’ subvention support and other revenues	$	330		$	296		$	647		$	569
Origination costs paid to affiliates	$	(1	)	$	-		$	(1	)	$	-
Credit support fees incurred	$	(23	)	$	(22	)	$	(45	)	$	(43	)
Interest and other expenses paid to affiliates	$	-		$	-		$	(2	)	$	(1	)
Insurance earned premiums and contract revenues:
Affiliate insurance premiums and contract revenues	$	33		$	33		$	65		$	65
Investments and other income, net:
Interest earned on notes receivable from affiliates	$	2		$	1		$	3		$	2
Expenses:
Shared services charges and other expenses	$	13		$	16		$	27		$	32
Employee benefits expense	$	8		$	7		$	16		$	13

39

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 14 – Related Party Transactions (Continued)

	September 30, 2015			March 31, 2015
Assets:
Investments in marketable securities
Investments in affiliates’ commercial paper	$	20		$	37
Finance receivables, net
Accounts receivable from affiliates	$	102		$	83
Direct finance lease receivables from affiliates	$	-		$	6
Notes receivable under home loan programs	$	10		$	11
Deferred retail origination costs paid to affiliates	$	1		$	1
Deferred retail subvention income from affiliates	$	(837	)	$	(802	)
Investments in operating leases, net
Leases to affiliates	$	2		$	7
Deferred lease origination costs paid to affiliates	$	1		$	1
Deferred lease subvention income from affiliates	$	(1,058	)	$	(950	)
Other assets
Notes receivable from affiliates	$	1,007		$	1,184
Other receivables from affiliates	$	10		$	6
Subvention support receivable from affiliates	$	175		$	126
Assets held-for-sale	$	57		$	-
Liabilities:
Other liabilities
Unearned affiliate insurance premiums and contract revenues	$	260		$	252
Accounts payable to affiliates	$	80		$	136
Notes payable to affiliates	$	25		$	24
Shareholder’s Equity:
Stock-based compensation	$	2		$	2

In August 2015, certain assets and liabilities related to the commercial finance business were reclassified to held-for-sale.  

In September 2015, TMCC entered into a promissory note with Toyota Financial Services Securities USA Corporation, an affiliate, under which TMCC can borrow up to $15 million.  As of September 30, 2015, no amounts have been borrowed on this promissory note.

40

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 15 – Segment Information

Financial information for our reportable operating segments is summarized as follows (dollars in millions):

	Three Months Ended September 30, 2015
	Finance		Insurance			Intercompany
	operations		operations			eliminations			Total
Total financing revenues	$	2,353	$	-		$	-		$	2,353
Insurance earned premiums and contract revenues		-		178			-			178
Investment and other income, net		22		(8	)		-			14
Total gross revenues		2,375		170			-			2,545
Less:
Depreciation on operating leases		1,446		-			-			1,446
Interest expense		203		-			-			203
Provision for credit losses		105		-			-			105
Operating and administrative expenses		225		62			-			287
Insurance losses and loss adjustment expenses		-		78			-			78
Provision for income taxes		150		11			-			161
Net income	$	246	$	19		$	-		$	265
	Six Months Ended September 30, 2015
	Finance		Insurance			Intercompany
	operations		operations			eliminations			Total
Total financing revenues	$	4,608	$	-		$	-		$	4,608
Insurance earned premiums and contract revenues		-		352			-			352
Investment and other income, net		43		9			-			52
Total gross revenues		4,651		361			-			5,012
Less:
Depreciation on operating leases		2,806		-			-			2,806
Interest expense		711		-			-			711
Provision for credit losses		150		-			-			150
Operating and administrative expenses		434		123			-			557
Insurance losses and loss adjustment expenses		-		157			-			157
Provision for income taxes		201		30			-			231
Net income	$	349	$	51		$	-		$	400
Total assets at September 30, 2015	$	112,166	$	4,046		$	(1,021	)	$	115,191

41

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 15 – Segment Information (Continued)

	Three Months Ended September 30, 2014
	Finance		Insurance		Intercompany
	operations		operations		eliminations			Total
Total financing revenues	$	2,057	$	-	$	-		$	2,057
Insurance earned premiums and contract revenues		-		160		-			160
Investment and other income, net		27		33		-			60
Total gross revenues		2,084		193		-			2,277
Less:
Depreciation on operating leases		1,196		-		-			1,196
Interest expense		215		-		-			215
Provision for credit losses		79		-		-			79
Operating and administrative expenses		200		53		-			253
Insurance losses and loss adjustment expenses		-		67		-			67
Provision for income taxes		149		27		-			176
Net income	$	245	$	46	$	-		$	291
	Six Months Ended September 30, 2014
	Finance		Insurance		Intercompany
	operations		operations		eliminations			Total
Total financing revenues	$	4,017	$	-	$	-		$	4,017
Insurance earned premiums and contract revenues		-		313		-			313
Investment and other income, net		47		48		-			95
Total gross revenues		4,064		361		-			4,425
Less:
Depreciation on operating leases		2,296		-		-			2,296
Interest expense		345		-		-			345
Provision for credit losses		117		-		-			117
Operating and administrative expenses		380		106		-			486
Insurance losses and loss adjustment expenses		-		137		-			137
Provision for income taxes		345		44		-			389
Net income	$	581	$	74	$	-		$	655
Total assets at September 30, 2014	$	103,307	$	3,602	$	(894	)	$	106,015

42

TOYOTA MOTOR CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions)

(Unaudited)

Note 16 – Subsequent Events

On October 1, 2015, we completed the sale of our commercial finance business to TICF for cash proceeds of $2.3 billion, which is subject to post-closing purchase price adjustments.  The transaction resulted in a gain of approximately $197 million, which will be reflected in our results of operations in the third quarter of fiscal 2016.  As part of this transaction, we entered into an Expense Reimbursement Agreement with TICF relating to certain expenses incurred by TMCC and a Transition Services Agreement relating to certain post-close services to be provided by TMCC to TICF.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional information.

43

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statement Regarding Forward-Looking Information

Certain statements contained in this Form 10-Q or incorporated by reference herein are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are based on current expectations and currently available information.  However, since these statements are based on factors that involve risks and uncertainties, our performance and results may differ materially from those described or implied by such forward-looking statements.  Words such as “believe,” “anticipate,” “expect,” “estimate,” “project,” “should,” “intend,” “will,”  “may” or words or phrases of similar meaning are intended to identify forward-looking statements.  We caution that the forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the risk factors set forth in “Item 1A. Risk Factors” of our Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended March 31, 2015  (“fiscal 2015”), including the following:

· Changes in general business, economic, and geopolitical conditions, as well as in consumer demand and the competitive environment in the automotive markets in the United States;

· A decline in TMS sales volume and the level of TMS sponsored subvention programs;

· A sale of all or a portion of our portfolio of loans and leases;

· Increased competition from other financial institutions seeking to increase their share of financing Toyota, Scion and Lexus vehicles;

· Fluctuations in interest rates and currency exchange rates;

· Fluctuations in the value of our investment securities or market prices;

· Changes or disruptions in our funding environment or access to the global capital markets;

· Failure or changes in commercial soundness of our counterparties and other financial institutions;

· Changes in our credit ratings and those of TMC;

· Changes in the laws, regulatory requirements and regulatory scrutiny, including as a result of recent financial services legislation, and related costs;

· Natural disasters, changes in fuel prices, manufacturing disruptions and production suspensions of Toyota, Lexus and Scion vehicle models and related parts supply;

· Operational risks, including security breaches or cyber attacks;

· Challenges related to the relocation of our corporate headquarters to Plano, Texas;

· Revisions to the estimates and assumptions for our allowance for credit losses;

· Changes in prices of used vehicles and their effect on residual values of our off-lease vehicles and return rates;

· The failure of a customer or dealer to meet the terms of any contract with us, or otherwise fail to perform as agreed; and

· Recalls announced by TMS and the perceived quality of Toyota, Lexus and Scion vehicles.

Forward-looking statements speak only as of the date they are made.  We will not update the forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking statements.

44

OVERVIEW

Key Performance Indicators and Factors Affecting Our Business

In our finance operations, we generate revenue, income, and cash flows by providing retail financing, leasing, and dealer financing to vehicle and industrial equipment dealers and their customers.  We measure the performance of our financing operations using the following metrics: financing volume, market share, financial leverage, financing margins, operating expense, residual value and credit loss metrics.

In our insurance operations, we generate revenue through marketing, underwriting, and claims administration related to covering certain risks of vehicle dealers and their customers.  We measure the performance of our insurance operations using the following metrics: issued agreement volume, number of agreements in force, loss metrics, and investment income.

Our financial results are affected by a variety of economic and industry factors, including but not limited to, new and used vehicle markets, Toyota, Lexus and Scion sales volume, new vehicle incentives, consumer behavior, employment levels, our ability to respond to changes in interest rates with respect to both contract pricing and funding, the actual or perceived quality, safety or reliability of Toyota, Lexus and Scion vehicles, the financial health of the dealers we finance, and competitive pressure. Changes in these factors can influence financing and lease contract volume, the number of financing and lease contracts that default and the loss per occurrence, our inability to realize originally estimated contractual residual values on leased vehicles, the volume and performance of our insurance operations, and our gross margins on financing and leasing volume.  Changes in the volume of vehicle sales, vehicle dealers’ utilization of our insurance programs, or the level of coverage purchased by affiliates could materially and adversely impact our insurance operations.  Additionally, our funding programs and related costs are influenced by changes in the global capital markets, prevailing interest rates, and our credit ratings and those of our parent companies, which may affect our ability to obtain cost effective funding to support earning asset growth.

45

Fiscal 2016 First Six Months Operating Environment

During the first half of the fiscal year ending March 31, 2016 (“fiscal 2016”), slow economic growth in the United States (“U.S.”) has continued as employment rates improved, consumer spending increased, and the housing market remained strong.  While the overall U.S. economy has continued to show positive trends during the first half of fiscal 2016, consumer debt levels continued to rise as consumers experienced greater access to credit.  

Conditions in the global capital markets experienced volatility during the latter months of the first half of fiscal 2016 due to concerns regarding global economic growth as well as uncertainty regarding future changes in U.S. monetary policy.  We continue to maintain broad global access to both domestic and international markets.  Future changes in interest rates in the U.S. and foreign markets could result in volatility in our interest expense, which could affect our results of operations.

Industry-wide vehicle sales in the United States increased and sales incentives throughout the auto industry remained elevated during the first half of fiscal 2016 as compared to the same period in fiscal 2015.  Vehicle sales by Toyota Motor Sales, USA, Inc. (“TMS”) increased slightly in the first half of fiscal 2016 compared to the same period in fiscal 2015.  In addition, lease volume increased and retail volume decreased during the first half of fiscal 2016 due primarily to a higher focus by TMS on lease subvention.  Overall market share remained relatively consistent for the first half of fiscal 2016 compared to the same period in fiscal 2015.

Used vehicle values have remained strong during the first half of fiscal 2016 but deteriorated slightly compared to the same period in fiscal 2015.  However, it remains uncertain whether the used vehicle market will continue to be as strong as it has been in the past few years.  Declines in used vehicle values and a higher proportion of lease volume as compared to retail volume could affect return rates, depreciation expense and credit losses.

46

RESULTS OF OPERATIONS

Fiscal 2016 Summary

The following table summarizes total net income by our reportable operating segments:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
(Dollars in millions)	2015		2014		2015		2014
Net income:
Finance operations1	$	246	$	245	$	349	$	581
Insurance operations1		19		46		51		74
Total net income	$	265	$	291	$	400	$	655

¹ Refer to Note 15 - Segment Information of the Notes to Consolidated Financial Statements for the total asset balances of our finance and insurance operations.

Our consolidated net income was $400 million and $265 million for the first half and second quarter of fiscal 2016, respectively, compared to $655 million and $291 million for the same periods in fiscal 2015.  The decrease for the first half of fiscal 2016 was primarily due to a $510 million increase in depreciation on operating leases, a $366 million increase in interest expense and a $33 million increase in provision for credit losses, partially offset by a $585 million increase in operating lease revenues and a $158 million decrease in provision for income taxes.  The decrease in net income for the second quarter of fiscal 2016 was primarily due to a $250 million increase in depreciation on operating leases, a $46 million decrease in net investment and other income and a $26 million increase in provision for credit losses, partially offset by a $292 million increase in operating lease revenues and $15 million decrease in provision for income taxes.

In August 2015, certain assets and liabilities related to our industrial equipment retail, lease and dealer portfolios (hereinafter the “commercial finance business”) were reclassified to held-for-sale, which did not have a material impact on our financial condition or the results of operations for the first half and second quarter of fiscal 2016.  On October 1, 2015, we completed the sale of our commercial finance business to Toyota Industries Commercial Finance, Inc. (“TICF”), a newly-formed subsidiary of Toyota Industries Corporation, which forms part of the group of companies known as the Toyota Group and is a related party to TMCC.  The sale resulted in cash proceeds of $2.3 billion, which is subject to post-closing purchase price adjustments, and is expected to be utilized for general corporate purposes, including the purchase of retail and lease contracts and the payment of debt.  The transaction resulted in a gain of approximately $197 million, which will be reflected in our results of operations in the third quarter of fiscal 2016.  We do not expect the sale of the commercial finance business to have a material impact on our revenue in the future.

Our overall capital position increased $0.3 billion, bringing total shareholder’s equity to $8.9 billion at September 30, 2015.  Our debt increased to $95.1 billion at September 30, 2015 from $90.2 billion at March 31, 2015.  Our debt-to-equity ratio increased to 10.7 at September 30, 2015 from 10.6 at March 31, 2015.

47

Finance Operations

The following table summarizes key results of our Finance Operations:

	Three Months Ended							Six Months Ended
	September 30,				Percentage			September 30,				Percentage
(Dollars in millions)	2015		2014		Change			2015		2014		Change
Financing revenues:
Operating lease	$	1,789	$	1,497		20	%	$	3,485	$	2,900		20	%
Retail1		465		461		1	%		922		917		1	%
Dealer		99		99		-	%		201		200		1	%
Total financing revenues		2,353		2,057		14	%		4,608		4,017		15	%
Investment and other income, net		22		27		(19	)%		43		47		(9	)%
Gross revenues from finance operations		2,375		2,084		14	%		4,651		4,064		14	%
Less:
Depreciation on operating leases		1,446		1,196		21	%		2,806		2,296		22	%
Interest expense		203		215		(6	)%		711		345		106	%
Provision for credit losses		105		79		33	%		150		117		28	%
Operating and administrative expenses		225		200		13	%		434		380		14	%
Provision for income taxes		150		149		1	%		201		345		(42	)%
Net income from finance operations	$	246	$	245		-	%	$	349	$	581		(40	)%

¹ Includes direct finance lease revenues.

Our finance operations reported net income of $349 million and $246 million for the first half and second quarter of fiscal 2016, respectively, compared to $581 million and $245 million for the same periods in fiscal 2015.  Finance operations results for the first half of fiscal 2016 decreased compared to the same period in fiscal 2015, driven by a $510 million increase in depreciation on operating leases, a $366 million increase in interest expense and a $33 million increase in provision for credit losses, partially offset by a $585 million increase in operating lease revenues and a $144 million decrease in provision for income taxes. Finance operations results for the second quarter of fiscal 2016 remained relatively flat as compared to the same period in fiscal 2015, primarily due to a $292 million increase in operating lease revenues, offset by a $250 million increase in depreciation on operating leases, a $26 million increase in provision for credit losses and a $25 million increase in operating and administrative expenses.

Financing Revenues

Total financing revenues increased 15 percent and 14 percent during the first half and second quarter of fiscal 2016, respectively, as compared to the same periods in fiscal 2015 due to the following:

· Operating lease revenues increased 20 percent in the first half and second quarter of fiscal 2016 as compared to the same periods in fiscal 2015, primarily due to higher average outstanding earning asset balances, partially offset by lower portfolio yields.

· Retail contract revenues increased slightly in the first half and second quarter of fiscal 2016 as compared to the same periods in fiscal 2015, driven by a slight increase in earning assets.

· Dealer financing revenues remained relatively consistent in the first half and second quarter of fiscal 2016 as compared to the same periods in fiscal 2015, as higher portfolio yields were offset by lower average outstanding earning asset balances.

Our total portfolio yield, which includes operating lease, retail and dealer financing, remained relatively flat at 3.7 percent in the first half and second quarter of fiscal 2016 as compared to the same periods in fiscal 2015.  

Depreciation on Operating Leases

Depreciation on operating leases increased 22 percent and 21 percent during the first half and second quarter of fiscal 2016, respectively, as compared to the same periods in fiscal 2015.  The increase in depreciation was primarily attributable to an increase in average operating lease units outstanding during the first half and second quarter of fiscal 2016 as compared to the same periods in fiscal 2015.

48

Interest Expense

Our liabilities consist mainly of fixed and floating rate debt, denominated in various currencies, which we issue in the global capital markets, while our assets consist primarily of U.S. dollar denominated, fixed rate receivables.  We enter into interest rate swaps and foreign currency swaps to hedge the interest rate and foreign currency risks that result from the different characteristics of our assets and liabilities.  The following table summarizes the consolidated components of interest expense:

	Three Months Ended						Six Months Ended
	September 30,						September 30,
(Dollars in millions)	2015			2014			2015			2014
Interest expense on debt	$	307		$	298		$	630		$	619
Interest expense (income) on derivatives		6			(20	)		(5	)		(53	)
Interest expense on debt and derivatives		313			278			625			566
Ineffectiveness related to hedge accounting derivatives		(1	)		-			(1	)		-
(Gain) loss on non-hedge accounting foreign currency transactions		(200	)		(867	)		154			(787	)
Loss (gain) on non-hedge accounting foreign currency swaps		141			866			(93	)		711
(Gain) loss on non-hedge accounting interest rate swaps		(50	)		(62	)		26			(145	)
Total interest expense	$	203		$	215		$	711		$	345

During the first half of fiscal 2016, total interest expense increased to $711 million from $345 million in the same period in fiscal 2015. The increase in total interest expense for the first half of 2016 can be primarily attributed to losses of $61 million on foreign currency transactions, net of foreign currency swaps, and $26 million in losses on non-hedge accounting interest rate swaps, as compared to gains of $76 million and $145 million respectively in the prior year.  During the second quarter of fiscal 2016, total interest expense decreased slightly to $203 million from $215 million in fiscal 2015.

Interest expense on debt primarily represents net interest settlements and changes in accruals on secured and unsecured notes and loans payable and commercial paper, and includes amortization of discount and premium, debt issuance costs, and basis adjustments.  Interest expense on debt in the first half and second quarter of fiscal 2016 increased to $630 million and $307 million, respectively, from $619 million and $298 million in the same periods in fiscal 2015 due to an increase in the amount of outstanding debt, partially offset by a decrease in the weighted average cost of debt.

Interest expense on derivatives represents net interest settlements and changes in accruals on both hedge and non-hedge accounting interest rate and foreign currency derivatives.  During the first half and second quarter of fiscal 2016, we recorded net interest income of $5 million and net interest expense of $6 million, respectively, compared to net interest income of $53 million and $20 million in the same periods in fiscal 2015.

Gain or loss on non-hedge accounting foreign currency transactions represents the revaluation of foreign currency denominated debt transactions for which hedge accounting has not been elected.  We use non-hedge accounting foreign currency swaps to economically hedge these foreign currency transactions. During the first half of fiscal 2016, the net loss of $61 million on our foreign currency transactions, net of foreign currency swaps, resulted from an increase in foreign currency swap rates.  For the second quarter of fiscal 2016, the net gain of $59 million on our foreign currency transactions, net of foreign currency swaps, resulted from a decrease in foreign currency swap rates. During the first half of fiscal 2015, we recorded a net gain of $76 million on foreign currency transactions, net of foreign currency swaps, resulting from a decrease in foreign currency swap rates. For the second quarter of fiscal 2015, changes in the foreign currency transactions mostly offset the foreign currency swaps.

Gain or loss on non-hedge accounting interest rate swaps represents the revaluation of U.S. dollar interest rate swaps. During the first six months of fiscal 2016 we experienced a loss of $26 million on non-hedge accounting interest rate swaps. During the second quarter of fiscal 2016, swap rates decreased resulting in gains of $50 million. We recorded a gain of $145 million and $62 million on non-hedge accounting interest rate swaps during the first half and second quarter of fiscal 2015, respectively, as a result of an increase in medium term U.S. dollar swap rates.  

Future changes in interest and foreign exchange rates could continue to result in significant volatility in our interest expense, thereby affecting our results of operations.

49

Provision for Credit Losses

We recorded a provision for credit losses of $150 million and $105 million for the first half and second quarter of fiscal 2016, respectively, compared to $117 million and $79 million for the same periods in fiscal 2015.  The increase in the provision for credit losses for the first half and second quarter of fiscal 2016 was due to higher default frequency and loss severity, and overall portfolio growth.

Operating and Administrative Expenses

Operating and administrative expenses increased 14 percent and 13 percent during the first half and second quarter of fiscal 2016, respectively, compared to the same periods in fiscal 2015 primarily reflecting increases in employee and general operating expenses and certain expenses associated with the planned relocation of our headquarters to Plano, Texas.  We expect to incur additional expenses over the next several years relating to our planned relocation.  

50

Insurance Operations

The following table summarizes key results of our Insurance Operations:

	Three Months Ended								Six Months Ended
	September 30,					Percentage			September 30,				Percentage
(Dollars in millions)	2015			2014¹		Change			2015		2014¹		Change
Agreements (units in thousands)
Issued		573			507		13	%		1,120		978		15	%
Average in force		6,344			5,796		9	%		6,260		5,750		9	%
Insurance earned premiums and contract revenues	$	178		$	160		11	%	$	352	$	313		12	%
Investment and other income, net		(8	)		33		(124	)%		9		48		(81	)%
Revenues from insurance operations		170			193		(12	)%		361		361	-%
Less:
Insurance losses and loss adjustment expenses		78			67		16	%		157		137		15	%
Operating and administrative expenses		62			53		17	%		123		106		16	%
Provision for income taxes		11			27		(59	)%		30		44		(32	)%
Net income from insurance operations	$	19		$	46		(59	)%	$	51	$	74		(31	)%

¹  Certain prior year amounts have been reclassified to conform to the current year presentation.

Our insurance operations reported net income of $51 million and $19 million for the first half and second quarter of fiscal 2016, respectively, compared to $74 million and $46 million for the same periods in fiscal 2015.  The decrease in net income for the first half of fiscal 2016 was primarily attributable to a $39 million decrease in investment and other income, net, a $20 million increase in insurance losses and loss adjustment expenses and a $17 million increase in operating and administrative expenses, partially offset by a $39 million increase in insurance earned premiums and contract revenues.  The decrease in net income for the second quarter of fiscal 2016 was primarily due to a $41 million decrease in investment and other income, net, an $11 million increase in insurance losses and loss adjustment expenses and a $9 million increase in operating and administrative expenses, partially offset by a $18 million increase in insurance earned premiums and contract revenues.

Agreements issued increased 15 percent and 13 percent during the first half and second quarter of fiscal 2016, respectively, compared to the same periods in fiscal 2015.  The average number of agreements in force increased 9 percent during the first half and second quarter of fiscal 2016 compared to the same periods in fiscal 2015.  The increase in the issued and the average in force agreements in both periods was primarily due to increased sales of prepaid maintenance contracts and tire and wheel agreements. The increase in prepaid maintenance agreements was primarily due to expanded product offerings introduced in fiscal 2014.

Revenue from Insurance Operations

Our insurance operations reported insurance earned premiums and contract revenues of $352 million and $178 million for the first half and second quarter of fiscal 2016, respectively, compared to $313 million and $160 million for the same periods in fiscal 2015.  Insurance earned premiums and contract revenues represent revenues from in force agreements and are affected by sales volume as well as the level, age, and mix of in force agreements.  Insurance earned premiums and contract revenues are recognized over the term of the agreements in relation to the timing and level of anticipated claims and administrative expenses.  The increase in both periods was due to an increase in the average in force agreements, as well as a change in the mix of in force agreements.  

Our insurance operations reported investment and other income, net of $9 million and a loss of $8 million for the first half and second quarter of fiscal 2016, respectively, compared to income of $48 million and $33 million for the same periods in fiscal 2015.  Investment and other income consist primarily of dividend and interest income, realized gains and losses and other-than-temporary impairment on available-for-sale securities, if any.  In the first half and second quarter of fiscal 2016, we had $35 million of other-than-temporary impairments on our fixed income mutual funds resulting from interest rate volatility. The increase in other-than-temporary impairment in both periods was partially offset by an increase in dividend income due to overall higher yields.

51

Insurance Losses and Loss Adjustment Expenses

Our insurance operations reported insurance losses and loss adjustment expenses of $157 million and $78 million for the first half and second quarter of fiscal 2016, compared to $137 million and $67 million for the same periods in fiscal 2015.  Insurance losses and loss adjustment expenses incurred are a function of the amount of covered risks, the frequency and severity of claims associated with in force agreements and the level of risk retained by our insurance operations.  Insurance losses and loss adjustment expenses include amounts paid and accrued for reported losses, estimates of losses incurred but not reported, and any related claim adjustment expenses. The increase in both periods was primarily due to an increase in the number of claims as a result of a higher number of average in force agreements, as well as an increase in the severity of claims.

Operating and Administrative Expenses

Our insurance operations reported operating and administrative expenses of $123 million and $62 million for the first half and second quarter of fiscal 2016 compared to $106 million and $53 million for the same periods in fiscal 2015.  The increase in both periods was attributable to higher insurance dealer back-end program expenses, product expenses, and general operating expenses driven by the continued growth of our insurance business. Insurance dealer back-end program expenses are incentives or expense reduction programs we provide to dealers based on certain performance criteria.

Provision for Income Taxes

Our overall provision for income taxes for the first half and second quarter of fiscal 2016 was $231 million and $161 million, compared to $389 million and $176 million for the same periods in fiscal 2015.  Our effective tax rate was 37 percent for the first half of fiscal 2016 and fiscal 2015, respectively, and 38 percent for the second quarter of fiscal 2016 and fiscal 2015, respectively. The decrease in the provision for income taxes is consistent with the decrease in our income before tax for the first half and second quarter of fiscal 2016 compared to the same periods in fiscal 2015.

52

FINANCIAL CONDITION

Vehicle Financing Volume and Net Earning Assets

The composition of our vehicle contract volume and market share is summarized below:

	Three Months Ended									Six Months Ended
	September 30,						Percentage			September 30,						Percentage
(units in thousands):	2015			2014			Change			2015			2014			Change
TMS new sales volume1		508			509			-	%		994			986			1	%
Vehicle financing volume2
New retail contracts		181			200			(10	)%		355			376			(6	)%
Used retail contracts		76			70			9	%		148			142			4	%
Lease contracts		166			147			13	%		314			286			10	%
Total		423			417			1	%		817			804			2	%
TMS subvened vehicle financing volume (units included in the above table):
New retail contracts		112			141			(21	)%		218			257			(15	)%
Used retail contracts		11			13			(15	)%		22			31			(29	)%
Lease contracts		149			138			8	%		281			265			6	%
Total		272			292			(7	)%		521			553			(6	)%
TMS subvened vehicle financing volume as a percent of vehicle financing volume:
New retail contracts		61.9	%		70.5	%					61.4	%		68.4	%
Used retail contracts		14.5	%		18.6	%					14.9	%		21.8	%
Lease contracts		89.8	%		93.9	%					89.5	%		92.7	%
Overall subvened contracts		64.3	%		70.0	%					63.8	%		68.8	%
Market share:3
Retail contracts		35.6	%		39.1	%					35.5	%		38.0	%
Lease contracts		32.5	%		28.9	%					31.3	%		28.9	%
Total		68.1	%		68.0	%					66.8	%		66.9	%

^l Represents total domestic TMS sales of new Toyota, Lexus and Scion vehicles excluding sales under dealer rental car and commercial fleet programs and sales of a private Toyota distributor.  TMS new sales volume is comprised of approximately 84 percent Toyota and Scion and 16 percent Lexus for the first half and second quarter of fiscal 2016.  TMS new sales volume was comprised of approximately 85 percent Toyota and Scion and 15 percent Lexus for the first half and second quarter of fiscal 2015.

² Total financing volume is comprised of approximately 79 percent Toyota and Scion, 18 percent Lexus, and 3 percent non-Toyota/Lexus for the first half and second quarter of fiscal 2016.  Total financing volume was comprised of approximately 80 percent Toyota and Scion, 17 percent Lexus, and 3 percent non-Toyota/Lexus vehicles for the first half and second quarter of fiscal 2015.

³ Represents the percentage of total domestic TMS sales of new Toyota, Lexus and Scion vehicles financed by us, excluding sales under dealer rental car and commercial fleet programs and sales of a private Toyota distributor.

53

Vehicle Financing Volume

The volume of our retail and lease contracts, which are acquired primarily from Toyota and Lexus vehicle dealers, is substantially dependent upon TMS sales volume and subvention.  Vehicle sales by TMS increased slightly for the first half of fiscal 2016 as compared to the same period in fiscal 2015.

Our financing volume increased 2 percent and 1 percent in the first half and second quarter of fiscal 2016 compared to the same periods in fiscal 2015.  The increase in financing volume was driven primarily by growth in TMS sales.  Lease volume increased and retail volume decreased in the first half and second quarter of fiscal 2016 due primarily to a higher focus by TMS on lease subvention.  Overall market share remained relatively consistent for the first half and second quarter of fiscal 2016 compared to the same periods in fiscal 2015 due to more competitive programs on non-subvened contracts and despite a decrease in subvention.

The majority of our lease terms are 36 and 24 months, which represent 81 percent and 10 percent, respectively, of our lease originations for the first half of fiscal 2016 compared to 65 percent and 27 percent, respectively, for the same period in fiscal 2015.

The composition of our net earning assets is summarized below:

					Percentage
(Dollars in millions)	September 30, 2015		March 31, 2015		Change
Net Earning Assets
Finance receivables, net
Retail finance receivables, net1	$	50,967	$	50,257		1	%
Dealer financing, net2		14,055		15,636		(10	)%
Total finance receivables, net		65,022		65,893		(1	)%
Investments in operating leases, net		33,741		31,128		8	%
Net earning assets	$	98,763	$	97,021		2	%
Dealer Financing
(Number of dealers serviced)
Toyota and Lexus dealers2		995		999		-	%
Vehicle dealers outside of the    Toyota/Lexus dealer network		407		456		(11	)%
Industrial equipment dealers3		137		140		(2	)%
Total number of dealers receiving    wholesale financing		1,539		1,595		(4	)%
Dealer inventory outstanding (units in thousands)3		269		301		(11	)%

¹ Includes direct finance leases.

² Includes wholesale and other credit arrangements in which we participate as part of a syndicate of lenders.

³ The September 30, 2015 figures include dealer relationships and inventory outstanding that were reclassified as held-for-sale as of August 31, 2015.

54

Retail Contract Volume and Earning Assets

Our retail contract volume decreased 6 percent and 10 percent during the first half and second quarter of fiscal 2016 compared to the same periods in fiscal 2015 primarily due to the higher focus by TMS on lease subvention as compared to retail subvention.  Market share also decreased for the first half and second quarter of fiscal 2016 as compared to the same periods in fiscal 2015 due to the decrease in retail subvention.  Our retail finance receivables, net increased 1 percent from March 31, 2015, due to higher average amounts financed.

Lease Contract Volume and Earning Assets

Our vehicle lease contract volume increased 10 percent and 13 percent during the first half and second quarter of fiscal 2016 as compared to the same periods in fiscal 2015.  Much of the increase during the first half and second quarter of fiscal 2016 was attributable to a higher focus by TMS on lease subvention in comparison to retail subvention, resulting in an increase of 8 percent in investments in operating leases, net at September 30, 2015, as compared to the balance at March 31, 2015.

Dealer Financing and Earning Assets

Dealer financing, net decreased 10 percent from March 31, 2015, primarily due to decreases in dealer inventory outstanding.  

55

Residual Value Risk

The primary factors affecting our exposure to residual value risk are the levels at which residual values are established at lease inception, current economic conditions and outlook, projected end-of-term market values, and the resulting impact on vehicle lease return rates and loss severity.

On a quarterly basis, we review the estimated end-of-term market values of leased vehicles to assess the appropriateness of our carrying values.  To the extent the estimated end-of-term market value of a leased vehicle is lower than the residual value established at lease inception, the residual value of the leased vehicle is adjusted downward so that the carrying value at lease end will approximate the estimated end-of-term market value.  For operating leases, adjustments are made on a straight-line basis over the remaining terms of the lease contracts and are included in depreciation on operating leases in the Consolidated Statement of Income as a change in accounting estimate.  For direct finance leases, adjustments are made at the time of assessment and are recorded as a reduction of direct finance lease revenues which is included in our retail revenues in the Consolidated Statement of Income.

Depreciation on Operating Leases

Depreciation on operating leases and average operating lease units outstanding are as follows:

	Three Months Ended							Six Months Ended
	September 30,				Percentage			September 30,				Percentage
	2015		2014		Change			2015		2014		Change
Depreciation on operating    leases (dollars in millions)	$	1,446	$	1,196		21	%	$	2,806	$	2,296		22	%
Average operating lease units    outstanding (in thousands)		1,262		1,042		21	%		1,231		1,008		22	%

Depreciation expense on operating leases increased 22 percent and 21 percent during the first half and second quarter of fiscal 2016, respectively, as compared to the same periods in fiscal 2015, due primarily to an increase in the average operating lease units outstanding.  We continue to experience higher leasing volume which will result in an increase in our maturities in future years.  This trend could affect return rates, residual value risk and depreciation expense.

56

Credit Risk

Credit Loss Experience

Our credit loss experience may be affected by a number of factors including the economic environment, our purchasing and servicing practices, used vehicle market conditions and subvention.  We continuously evaluate and refine our purchasing practices and collection efforts to minimize risk.  In addition, subvention contributes to our overall portfolio quality, as subvened contracts typically have higher credit scores than non-subvened contracts.

The following table provides information related to our credit loss experience:

	September 30,			March 31,			September 30,
	2015			2015			2014
Net charge-offs as a percentage of average gross    earning assets 1
Finance receivables		0.35	%		0.32	%		0.30	%
Operating leases		0.24	%		0.23	%		0.20	%
Total		0.31	%		0.29	%		0.27	%
Default frequency as a percentage of outstanding    contracts		1.19	%		1.21	%		1.16	%
Average loss severity per unit2	$	6,491		$	6,632		$	6,364
Aggregate balances for accounts 60 or more days    past due as a percentage of gross earning assets 3
Finance receivables 4		0.35	%		0.23	%		0.26	%
Operating leases 4		0.23	%		0.17	%		0.19	%
Total		0.31	%		0.21	%		0.24	%

¹ Net charge-off ratios have been annualized using six month results for the periods ended September 30, 2015 and 2014.

² Average loss per unit upon disposition of repossessed vehicles or charge-off prior to repossession.

³ Substantially all retail, direct finance lease and operating lease receivables do not involve recourse to the dealer in the event of customer default.

⁴ Includes accounts in bankruptcy and excludes accounts for which vehicles have been repossessed.

The level of credit losses primarily reflects two factors: default frequency and loss severity.  Net charge-offs as a percentage of average gross earning assets increased from 0.27 percent at September 30, 2014 to 0.31 percent at September 30, 2015 due to increased default frequency and loss severity.  Default frequency as a percentage of outstanding contracts increased to 1.19 percent for the first half of fiscal 2016 compared to 1.16 percent in the same period in fiscal 2015.  Our delinquencies increased to 0.31 percent for the first half of fiscal 2016 compared to 0.24 percent in the same period in fiscal 2015 as a result of rising consumer debt levels as customers experienced greater access to credit.  The increase in our delinquencies from March 31, 2015 to September 30, 2015 reflects our typical seasonal pattern for delinquency.  Our average loss severity for the first half of fiscal 2016 increased to $6,491 from $6,364 in the first half of fiscal 2015.  

57

Allowance for Credit Losses

We maintain an allowance for credit losses to cover probable and estimable losses as of the balance sheet date resulting from the non-performance of our customers and dealers under their contractual obligations.  The determination of the allowance involves significant assumptions, complex analyses, and management judgment.

The allowance for credit losses for our consumer portfolio is established through a process that estimates probable losses incurred as of the balance sheet date based upon consistently applied statistical analyses of portfolio data.  This process utilizes delinquency migration analysis, in which historical delinquency and credit loss experience is applied to the current aging of the portfolio, and incorporates current and expected trends and other relevant factors, including used vehicle market conditions, economic conditions, unemployment rates, purchase quality mix, and operational factors.  This process, along with management judgment, is used to establish the allowance to cover probable and estimable losses incurred as of the balance sheet date.  Movement in any of these factors would cause changes in estimated probable losses.

The allowance for credit losses for our dealer portfolio is established by aggregating dealer financing receivables into loan-risk pools, which are determined based on the risk characteristics of the loan (e.g. secured by either vehicles and industrial equipment, real estate or dealership assets, or unsecured).  We analyze the dealer pools using internally developed risk ratings for each dealer.  In addition, we have established procedures that focus on managing high risk loans in our dealer portfolio.  Our field operations management and special assets group are consulted each quarter to determine if any specific dealer loan is considered impaired.  If impaired loans are identified, specific reserves are established, as appropriate, and the loan is removed from the loan-risk pool for separate monitoring.

The following table provides information related to our allowance for credit losses:

	Three Months Ended						Six Months Ended
	September 30,						September 30,
(Dollars in millions)	2015			2014			2015			2014
Allowance for credit losses at beginning of period	$	467		$	447		$	485		$	454
Provision for credit losses		105			79			150			117
Transferred to held-for-sale		(7	)		-			(7	)		-
Charge-offs, net of recoveries1		(92	)		(81	)		(155	)		(126	)
Allowance for credit losses at end of period	$	473		$	445		$	473		$	445

¹ Charge-offs are shown net of recoveries of $18 million and $38 million for the three and six months ended September 30, 2015, respectively, and recoveries of $20 million and $42 million for the same periods in fiscal 2015.

Our allowance for credit losses increased $28 million from $445 million at September 30, 2014 to $473 million at September 30, 2015 due to higher default frequency and loss severity, and overall portfolio growth.  Our allowance for credit losses decreased $12 million from $485 million at March 31, 2015 primarily due to the transfer of assets within the commercial portfolio segment to held-for-sale as of August 31, 2015.

58

LIQUIDITY AND CAPITAL RESOURCES

Liquidity risk is the risk relating to our ability to meet our financial obligations when they come due.  Our liquidity strategy is to ensure that we maintain the ability to fund assets and repay liabilities in a timely and cost-effective manner, even in adverse market conditions.  Our strategy includes raising funds via the global capital markets and through loans, credit facilities, and other transactions as well as generating liquidity from our earning assets.  This strategy has led us to develop a borrowing base that is diversified by market and geographic distribution, investor type and financing structure, among other factors.

The following table summarizes the components of our outstanding funding sources at carrying value:

(Dollars in millions)	September 30, 2015		March 31, 2015
Commercial paper1	$	27,558	$	27,006
Unsecured notes and loans payable2		54,215		52,307
Secured notes and loans payable		13,264		10,837
Carrying value adjustment3		60		81
Total debt	$	95,097	$	90,231

¹ Includes unamortized premium/discount.

² Includes unamortized premium/discount and the effects of foreign currency transaction gains and losses on non-hedged or de-designated notes and loans payable which are denominated in foreign currencies.

³ Represents the effects of fair value adjustments to debt in hedging relationships, accrued redemption premiums, and the unamortized fair value adjustments on the hedged item for terminated fair value hedge accounting relationships.

Liquidity management involves forecasting and maintaining sufficient capacity to meet our cash needs, including unanticipated events.  To ensure adequate liquidity through a full range of potential operating environments and market conditions, we conduct our liquidity management and business activities in a manner that will preserve and enhance funding stability, flexibility and diversity.  Key components of this operating strategy include a strong focus on developing and maintaining direct relationships with commercial paper investors and wholesale market funding providers and maintaining the ability to sell certain assets when and if conditions warrant.

We develop and maintain contingency funding plans and regularly evaluate our liquidity position under various operating circumstances, allowing us to assess how we will be able to operate through a period of stress when access to normal sources of capital is constrained.  The plans project funding requirements during a potential period of stress, specify and quantify sources of liquidity, and outline actions and procedures for effectively managing through the problem period. In addition, we monitor the ratings and credit exposure of the lenders that participate in our credit facilities to ascertain any issues that may arise with potential draws on these facilities if that contingency becomes warranted.

We maintain broad access to a variety of domestic and global markets and may choose to realign our funding activities depending upon market conditions, relative costs, and other factors.  We believe that our funding sources, combined with operating and investing activities, provide sufficient liquidity to meet future funding requirements and business growth. Our funding volume is primarily based on expected net change in earning assets and debt maturities.

For liquidity purposes, we hold cash in excess of our immediate funding needs.  These excess funds are invested in short-term, highly liquid and investment grade money market instruments, which provide liquidity for our short-term funding needs and flexibility in the use of our other funding sources.  We maintained excess funds ranging from $6.5 billion to $10.3 billion with an average balance of $8.3 billion during the quarter ended September 30, 2015.

We may lend to or borrow from affiliates on terms based upon a number of business factors such as funds availability, cash flow timing, relative cost of funds, and market access capabilities.

Credit support is provided to us by our indirect parent Toyota Financial Services Corporation (“TFSC”), and, in turn to TFSC by Toyota Motor Corporation (“TMC”).  Taken together, these credit support agreements provide an additional source of liquidity to us, although we do not rely upon such credit support in our liquidity planning and capital and risk management.  The credit support agreements are not a guarantee by TMC or TFSC of any securities or obligations of TFSC or TMCC, respectively.  The fees paid pursuant to these agreements are disclosed in Note 14 – Related Party Transactions.

TMC’s obligations under its credit support agreement with TFSC rank pari passu with TMC’s senior unsecured debt obligations.  Refer to Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations “Liquidity and Capital Resources” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2015 for further discussion.

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We routinely monitor global financial conditions and our financial exposure to our global counterparties.  Specifically, we focus on those countries experiencing significant economic, fiscal or political strain and the corresponding likelihood of default.  During the reporting period, we identified the following countries for which these conditions exist: Portugal, Ireland, Italy, Greece, Spain, Cyprus, Russia, Ukraine and certain other countries.  We do not currently have exposure to these or other sovereign counterparties.  As ofSeptember 30, 2015, our gross non-sovereign exposures to investments in marketable securities and derivatives counterparty positions in the countries identified were not material, either individually or collectively.  We also maintained a total of $20.5 billion in committed syndicated and bilateral credit facilities for our liquidity purposes as ofSeptember 30, 2015.  As ofSeptember 30, 2015,approximately 3 percent of such commitments were from counterparties in the countries identified.  Refer to the “Liquidity and Capital Resources - Liquidity Facilities and Letters of Credit” section and “Part I, Item 1A. Risk Factors - The failure or commercial soundness of our counterparties and other financial institutions may have an effect on our liquidity, operating results or financial condition” in our fiscal 2015Form 10-K for further discussion.

Commercial Paper

Short-term funding needs are met through the issuance of commercial paper in the United States.  Commercial paper outstanding under our commercial paper programs ranged from approximately $26.8 billion to $29.8 billion during the quarter ended September 30, 2015, with an average outstanding balance of $27.7 billion.  Our commercial paper programs are supported by the liquidity facilities discussed under the heading “Liquidity Facilities and Letters of Credit.”  We believe we have ample capacity to meet our short-term funding requirements and manage our liquidity.

Unsecured Notes and Loans Payable

The following table summarizes the components of our unsecured notes and loans payable:

(Dollars in millions)	U.S.medium term notes ("MTNs") and domestic bonds				Euro MTNs ("EMTNs")			Eurobonds		Other				Total unsecured notes and loans payable4
Balance at March 31, 20151	$	32,722			$	16,100		$	480	$	5,222			$	54,524
Issuances during the six months ended September 30, 2015		6,713		2		1,797			-		1,250		3		9,760
Maturities and terminations during the six months ended September 30, 2015		(5,935	)			(885	)		-		(1,250	)			(8,070	)
Balance at September 30, 20151	$	33,500			$	17,012		$	480	$	5,222			$	56,214

¹ Amounts represent par values and as such exclude unamortized premium/discount, foreign currency transaction gains and losses on debt denominated in foreign currencies, fair value adjustments to debt in hedge accounting relationships, accrued redemption premiums, and the unamortized fair value adjustments on the hedged item for terminated hedge accounting relationships.  Par values of non-U.S. currency denominated notes are determined using foreign exchange rates applicable as of the issuance dates.

² MTNs and domestic bonds issued during the first half of fiscal 2016 had terms to maturity ranging from approximately 1 year to 30 years, and had interest rates at the time of issuance ranging from 0.3 percent to 4.3 percent.

³ Consists of long-term borrowings, with terms to maturity ranging from approximately 1 year to 5 years, and interest rates at the time of issuance ranging from 0.2 percent to 0.9 percent.

⁴ Consists of fixed and floating rate debt and other obligations.  Upon the issuance of fixed rate debt and other obligations, we generally elect to enter into pay float interest rate swaps.  Refer to “Derivative Instruments” for further discussion.

We maintain a shelf registration statement with the SEC to provide for the issuance of debt securities in the U.S. capital markets to retail and institutional investors. We qualify as a well-known seasoned issuer under SEC rules, which allows us to issue under our registration statement an unlimited amount of debt securities during the three year period ending February 2018.  Debt securities issued under the U.S. shelf registration statement are issued pursuant to the terms of an indenture which requires TMCC to comply with certain covenants, including negative pledge provisions.  We are in compliance with these covenants.

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Our EMTN program, shared with our affiliates Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc. and Toyota Finance Australia Limited (TMCC and such affiliates, the “EMTN Issuers”), provides for the issuance of debt securities in the international capital markets.  In September 2015, the EMTN Issuers renewed the EMTN program for a one year period.  The maximum aggregate principal amount authorized under the EMTN Program to be outstanding at any time is €50 billion or the equivalent in other currencies, of which €26.5 billion was available for issuance atSeptember 30, 2015.  The authorized amount is shared among all EMTN Issuers.  The authorized aggregate principal amount under the EMTN program may be increased from time to time.  Debt securities issued under the EMTN program are issued pursuant to the terms of an agency agreement.  Certain debt securities issued under the EMTN program are subject to negative pledge provisions.  Debt securities issued under our EMTN program prior to October 2007 are also subject to cross-default provisions.  We are in compliance with these covenants.

In addition, we may issue other debt securities or enter into other unsecured financing arrangements through the global capital markets.

Secured Notes and Loans Payable

Overview

Asset-backed securitization of our earning asset portfolio provides us with an alternative source of funding.  We securitize finance receivables and beneficial interests in investments in operating leases (“Securitized Assets”) using a variety of structures.  Our securitization transactions involve the transfer of Securitized Assets to bankruptcy-remote special purpose entities.  These bankruptcy-remote entities are used to ensure that the Securitized Assets are isolated from the claims of creditors of TMCC and that the cash flows from these assets are available solely for the benefit of the investors in these asset-backed securities.  Investors in asset-backed securities do not have recourse to our other assets, and neither TMCC nor our affiliates guarantee these obligations.  We are not required to repurchase or make reallocation payments with respect to the Securitized Assets that become delinquent or default after securitization.  As seller and servicer of the Securitized Assets, we are required to repurchase or make a reallocation payment with respect to the underlying assets that are subsequently discovered not to have met specified eligibility requirements.  This repurchase obligation is customary in securitization transactions.

We service the Securitized Assets in accordance with our customary servicing practices and procedures.  Our servicing duties include collecting payments on Securitized Assets and submitting them to a trustee for distribution to security holders and other interest holders.  We prepare monthly servicer certificates on the performance of the Securitized Assets, including collections, investor distributions, delinquencies, and credit losses.  We also perform administrative services for the special purpose entities.

Our use of special purpose entities in securitizations is consistent with conventional practice in the securitization market.  None of our officers, directors, or employees hold any equity interests or receive any direct or indirect compensation from our special purpose entities.  These entities do not own our stock or the stock of any of our affiliates.  Each special purpose entity has a limited purpose and generally is permitted only to purchase assets, issue asset-backed securities, and make payments to the security holders, other interest holders and certain service providers as required under the terms of the transactions.

Our securitizations are structured to provide credit enhancement to reduce the risk of loss to security holders and other interest holders in the asset-backed securities.  Credit enhancement may include some or all of the following:

· Overcollateralization:  The principal of the Securitized Assets that exceeds the principal amount of the related secured debt.

· Excess spread:  The expected interest collections on the Securitized Assets that exceed the expected fees and expenses of the special purpose entity, including the interest payable on the debt, net of swap settlements, if any.

· Cash reserve funds:  A portion of the proceeds from the issuance of asset-backed securities may be held by the securitization trust in a segregated reserve fund and may be used to pay principal and interest to security holders and other interest holders if collections on the underlying receivables are insufficient.

· Yield supplement arrangements:  Additional overcollateralization may be provided to supplement the future contractual interest payments from securitized receivables with relatively low contractual interest rates.

· Subordinated notes:  The subordination of principal and interest payments on subordinated notes may provide additional credit enhancement to holders of senior notes.

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In addition to the credit enhancement described above, we may enter into interest rate swaps with our special purpose entities that issue variable rate debt.  Under the terms of these swaps, the special purpose entities are obligated to pay TMCC a fixed rate of interest on payment dates in exchange for receiving a floating rate of interest on notional amounts equal to the outstanding balance of the secured debt.  This arrangement enables the special purpose entities to mitigate the interest rate risk inherent in issuing variable rate debt that is secured by fixed rate Securitized Assets.

Securitized Assets and the related debt remain on our Consolidated Balance Sheet.  We recognize financing revenue on the Securitized Assets.  We also recognize interest expense on the secured debt issued by the special purpose entities and maintain an allowance for credit losses on the Securitized Assets to cover estimated probable credit losses using a methodology consistent with that used for our non-securitized asset portfolio.  The interest rate swaps between TMCC and the special purpose entities are considered intercompany transactions and therefore are eliminated in our consolidated financial statements.

The following are asset-backed securitization transactions that we have executed.

Public Term Securitization

We maintain shelf registration statements with the Securities and Exchange Commission (“SEC”) to provide for the issuance of securities backed by Securitized Assets in the U.S. capital markets.  We regularly sponsor public securitization trusts that issue securities backed by retail finance receivables, including registered securities that we retain.  Funding obtained from our public term securitization transactions is repaid as the underlying Securitized Assets amortize.  None of these securities have defaulted, experienced any events of default or failed to pay principal in full at maturity.  As of September 30, 2015 and March 31, 2015, we did not have any outstanding lease securitization transactions registered with the SEC.

We periodically enter into public term securitization transactions whereby we agree to use the proceeds solely to acquire retail and lease contracts financing new Toyota and Lexus vehicles of certain specified “green” models.  The terms of the securitization transactions are consistent with the terms of our other similar transactions except that the proceeds we receive are included in Restricted cash and cash equivalents in our Consolidated Balance Sheet.  

Amortizing Asset-backed Commercial Paper Conduits

We have executed private securitization transactions of Securitized Assets with bank-sponsored multi-seller asset-backed conduits.  The related debt will be repaid as the underlying Securitized Assets amortize.

Liquidity Facilities and Letters of Credit

For additional liquidity purposes, we maintain syndicated credit facilities with certain banks.

364 Day Credit Agreement, Three Year Credit Agreement and Five Year Credit Agreement

In November 2014, TMCC, Toyota Credit de Puerto Rico Corp. (“TCPR”), and other Toyota affiliates entered into a $5.0 billion 364 day syndicated bank credit facility, a $5.0 billion three year syndicated bank credit facility and a $5.0 billion five year syndicated bank credit facility, expiring in fiscal 2016, 2018, and 2020, respectively.

The ability to make draws is subject to covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets.  These agreements may be used for general corporate purposes and none were drawn upon as of September 30, 2015 and March 31, 2015.  We are in compliance with the covenants and conditions of the credit agreements described above.

Other Unsecured Credit Agreements

TMCC has entered into additional unsecured credit facilities with various banks.  As of September 30, 2015, TMCC had committed bank credit facilities totaling $5.5 billion of which $1.9 billion, $850 million, $1.9 billion, $450 million, and $375 million mature in fiscal 2016, 2017, 2018, 2019, and 2020, respectively.

These credit agreements contain covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets.  These credit facilities were not drawn upon as of September 30, 2015 and March 31, 2015. We are in compliance with the covenants and conditions of the credit agreements described above.

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Credit Ratings

The cost and availability of unsecured financing is influenced by credit ratings, which are intended to be an indicator of the creditworthiness of a particular company, security, or obligation.  Lower ratings generally result in higher borrowing costs as well as reduced access to capital markets.  Credit ratings are not recommendations to buy, sell, or hold securities, and are subject to revision or withdrawal at any time by the assigning credit rating organization.  Each credit rating organization may have different criteria for evaluating risk, and therefore ratings should be evaluated independently for each organization.  Our credit ratings depend in part on the existence of the credit support agreements of TFSC and TMC.  Refer to “Part I, Item 1A. Risk Factors - Our borrowing costs and access to the unsecured debt capital markets depend significantly on the credit ratings of TMCC and its parent companies and our credit support arrangements” in our fiscal 2015 Form 10-K.

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DERIVATIVE INSTRUMENTS

Risk Management Strategy

Our liabilities consist mainly of fixed and floating rate debt, denominated in various currencies, which we issue in the global capital markets, while our assets consist primarily of U.S. dollar denominated, fixed rate receivables.  We enter into interest rate swaps and foreign currency swaps to hedge the interest rate and foreign currency risks that result from the different characteristics of our assets and liabilities.  Our use of derivative transactions is intended to reduce long-term fluctuations in cash flows and fair value adjustments of assets and liabilities caused by market movements.  All of our derivative activities are authorized and monitored by our management and our Asset Liability Committee which provides a framework for financial controls and governance to manage market risk.

Accounting for Derivative Instruments

All derivative instruments are recorded on the balance sheet at fair value, taking into consideration the effects of legally enforceable master netting agreements that allow us to net settle positive and negative positions and offset cash collateral held with the same counterparty on a net basis. Changes in the fair value of derivatives are recorded in interest expense in the Consolidated Statement of Income.

We categorize derivatives as those designated for hedge accounting (“hedge accounting derivatives”) and those that are not designated for hedge accounting (“non-hedge accounting derivatives”).  At the inception of a derivative contract, we may elect to designate a derivative as a hedge accounting derivative.

We may also, from time-to-time, issue debt which can be characterized as hybrid financial instruments. These obligations often contain an embedded derivative which may require bifurcation.  Changes in the fair value of the bifurcated embedded derivative are reported in interest expense in the Consolidated Statement of Income.  As of September 30, 2015 and March 31, 2015, we had no outstanding embedded derivatives that are required to be bifurcated. Refer to Note 1 – Summary of Significant Accounting Policies of the Notes to the Consolidated Financial Statements in our fiscal 2015 Form 10-K, and Note 7 – Derivatives, Hedging Activities and Interest Expense in this Form 10-Q for additional information.

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Derivative Assets and Liabilities

The following table summarizes our derivative assets and liabilities, which are included in other assets and other liabilities in the Consolidated Balance Sheet:

(Dollars in millions)	September 30, 2015			March 31, 2015
Gross derivatives assets, net of credit    valuation adjustment	$	756		$	688
Less: Counterparty netting and collateral		(705	)		(635	)
Derivative assets, net	$	51		$	53
Gross derivative liabilities, net of    credit valuation adjustment	$	2,235		$	2,274
Less: Counterparty netting and collateral		(2,180	)		(2,184	)
Derivative liabilities, net	$	55		$	90

Collateral represents cash received or deposited under reciprocal arrangements that we have entered into with our derivative counterparties.  As of September 30, 2015, we held collateral of $121 million, which offset derivative assets, and we posted collateral of $1,596 million, which offset derivative liabilities.  We also posted excess collateral of $11 million which we did not use to offset derivative liabilities.  As of March 31, 2015, we held collateral of $145 million, which offset derivative assets, and we posted collateral of $1,694 million which offset derivative liabilities.  We held excess collateral of $10 million, which we did not use to offset derivative assets, and we posted excess collateral of $2 million which we did not use to offset derivative liabilities.  Refer to the “Interest Expense” section for discussion on changes in derivatives.

Derivative Counterparty Credit Risk

We manage derivatives counterparty credit risk by maintaining policies for entering into derivative contracts, exercising our rights under our derivative contracts, requiring the posting of collateral and actively monitoring our exposure to counterparties.

All of our derivative counterparties to which we had credit exposure at September 30, 2015 were assigned investment grade ratings by a credit rating organization.  Our counterparty credit risk could be adversely affected by deterioration of the global economy and financial distress in the banking industry.

Our International Swaps and Derivatives Association (“ISDA”) Master Agreements contain reciprocal collateral arrangements which help mitigate our exposure to the credit risk associated with our counterparties.  As of September 30, 2015, we have daily valuation and collateral exchange arrangements with all of our counterparties.  Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization requirement, which has significantly reduced counterparty credit risk exposure.  Under our ISDA Master Agreements, cash is the only permissible form of collateral. Neither we nor our counterparties are required to hold collateral in a segregated account.  Our collateral agreements include legal right of offset provisions, pursuant to which collateral amounts are netted against derivative assets or derivative liabilities, the net amount of which is included in other assets or other liabilities in our Consolidated Balance Sheet.

In addition, many of our ISDA Master Agreements contain reciprocal ratings triggers providing either party with an option to terminate the agreement and related transactions at market value in the event of a ratings downgrade below a specified threshold.  Refer to “Part I. Item 1A. Risk Factors” in our fiscal 2015 Form 10-K for further discussion.

A summary of our net counterparty credit exposure by credit rating (net of collateral held) is presented below:

(Dollars in millions)	September 30, 2015		March 31, 2015
Credit Rating
AA	$	1	$	-
A		52		54
Total net counterparty credit exposure	$	53	$	54

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We exclude from the table above credit valuation adjustments of$2 million and $1 million as of September 30, 2015 and March 31, 2015, respectively, related to non-performance risk of our counterparties.  All derivative credit valuation adjustments are recorded in interest expense in our Consolidated Statement of Income.  Refer to Note 2 – Fair Value Measurements of the Notes to the Consolidated Financial Statements for further discussion.

NEW ACCOUNTING STANDARDS

Refer to Note 1 – Interim Financial Data of the Notes to Consolidated Financial Statements.

OFF-BALANCE SHEET ARRANGEMENTS

Guarantees

TMCC has guaranteed the payments of principal and interest with respect to the bond obligations that were issued by Putnam County, West Virginia and Gibson County, Indiana to finance the construction of pollution control facilities at manufacturing plants of certain TMCC affiliates.  Refer to Note 12 - Commitments and Contingencies of the Notes to Consolidated Financial Statements for further discussion.

Lending Commitments

A description of our lending commitments is included under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Off-Balance Sheet Arrangements” and Note 15 - Related Party Transactions of the Notes to Consolidated Financial Statements in our fiscal 2015 Form 10-K, as well as above in Note 12 - Commitments and Contingencies of the Notes to Consolidated Financial Statements.

Indemnification

Refer to Note 12 - Commitments and Contingencies of the Notes to Consolidated Financial Statements for a description of agreements containing indemnification provisions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have omitted this section pursuant to General Instruction H(2) of Form 10-Q.

ITEM 4.  CONTROLS AND PROCEDURES

Our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) evaluated the effectiveness of our “disclosure controls and procedures” as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this report.  Based on this evaluation, the CEO and CFO concluded that the disclosure controls and procedures were effective as of September 30, 2015 to ensure that information required to be disclosed in reports filed under the Exchange Act was recorded, processed, summarized and reported within the time periods specified by the SEC’s rules, regulations, and forms and that such information is accumulated and communicated to our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures.

There have been no changes in our internal control over financial reporting that occurred during the three months ended September 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II.  OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

Litigation

Various legal actions, governmental proceedings and other claims are pending or may be instituted or asserted in the future against us with respect to matters arising in the ordinary course of business.  Certain of these actions are or purport to be class action suits, seeking sizeable damages and/or changes in our business operations, policies and practices.  Certain of these actions are similar to suits that have been filed against other financial institutions and captive finance companies.  We perform periodic reviews of pending claims and actions to determine the probability of adverse verdicts and resulting amounts of liability.  We establish accruals for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated.  When we are able, we also determine estimates of reasonably possible loss or range of loss, whether in excess of any related accrued liability or where there is no accrued liability.  See Note 12 – Commitments and Contingencies.  Given the inherent uncertainty associated with legal matters, the actual costs of resolving legal claims and associated costs of defense may be substantially higher or lower than the amounts for which accruals have been established.  Based on available information and established accruals, we do not believe it is reasonably possible that the results of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial condition or results of operations.

ITEM 1A.   RISK FACTORS

There are no material changes from the risk factors set forth under “Item 1A. Risk Factors” in our fiscal 2015 Form 10-K.

ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

We have omitted this section pursuant to General Instruction H(2) of Form 10-Q.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

We have omitted this section pursuant to General Instruction H(2) of Form 10-Q.

ITEM 4.   MINE SAFETY DISCLOSURES

Not applicable.

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ITEM 5.   OTHER INFORMATION

Disclosure of Iranian Activities under Section 13(r) of the Securities Exchange Act of 1934

Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 added Section 13(r) to the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Section 13(r) requires an issuer to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with designated natural persons or entities involved in terrorism or the proliferation of weapons of mass destruction.  Disclosure is required even where the activities, transactions or dealings are conducted outside the U.S. by non-U.S. affiliates in compliance with applicable law, and whether or not the activities are sanctionable under U.S. law.

As of the date of this report, we are not aware of any activity, transaction or dealing by us or any of our affiliates during the quarter ended September 30, 2015 that requires disclosure in this report under Section 13(r) of the Exchange Act.

For affiliates that we do not control and that are our affiliates solely due to their common control by our parent Toyota Motor Corporation (“TMC”), a Japanese corporation, we have relied upon TMC for information regarding their activities, transactions and dealings. TMC has informed us that during the quarter ended September 30, 2015, TMC is not aware of any activity, transaction or dealing by TMC or any of its affiliates that requires disclosure in this report under Section 13(r) of the Exchange Act.

ITEM 6.   EXHIBITS

See Exhibit Index on page 74.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TOYOTA MOTOR CREDIT CORPORATION
	(Registrant)
Date: November 5, 2015	By	/s/ Michael Groff
		Michael Groff
		President and Chief Executive Officer
		(Principal Executive Officer)
Date: November 5, 2015	By	/s/ Chris Ballinger
		Chris Ballinger
		Senior Vice President and
		Chief Financial Officer
		(Principal Financial Officer)

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EXHIBIT INDEX

Exhibit Number	Description	Method of Filing
3.1	Restated Articles of Incorporation filed with the California Secretary of State on April 1, 2010	(1)
3.2	Bylaws as amended through December 8, 2000	(2)
4.1(a)	Indenture dated as of August 1, 1991 between TMCC and The Chase Manhattan Bank, N.A.	(3)
4.1(b)	First Supplemental Indenture dated as of October 1, 1991 among TMCC, Bankers Trust Company and The Chase Manhattan Bank, N.A.	(4)
4.1(c)	Second Supplemental Indenture, dated as of March 31, 2004, among TMCC, JPMorgan Chase Bank (as successor to The Chase Manhattan Bank, N.A.) and Deutsche Bank Trust Company Americas (formerly known as Bankers Trust Company)	(5)
4.1(d)	Third Supplemental Indenture, dated as of March 8, 2011 among TMCC, The Bank of New York Mellon Trust Company, N.A., as trustee, and Deutsche Bank Trust Company Americas, as trustee	(6)
4.1(e)	Agreement of Resignation and Acceptance dated as of April 26, 2010 between Toyota Motor Credit Corporation, The Bank of New York Mellon and The Bank of New York Trust Company, N.A.	(1)
4.2(a)	Amended and Restated Agency Agreement, dated September 11, 2015, among Toyota Motor Credit Corporation, Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc., Toyota Finance Australia Limited and The Bank of New York Mellon	(7)
4.2(b)	Amended and Restated Note Agency Agreement, dated September 11, 2015, among Toyota Motor Credit Corporation, The Bank of New York Mellon (Luxembourg) S.A. and The Bank of New York Mellon, acting through its London branch	(8)
4.3(a)	Sixth Amended and Restated Agency Agreement dated September 28, 2006, among TMCC, JP Morgan Chase Bank, N.A. and J.P. Morgan Bank Luxembourg S.A.	(9)
4.3(b)	Amendment No.1, dated as of March 4, 2011, to the Sixth Amended and Restated Agency Agreement among TMCC, The Bank of New York Mellon, acting through its London branch, as agent, and The Bank of New York Luxembourg S.A., as paying agent	(10)
4.4	TMCC has outstanding certain long-term debt as set forth in Note 9 - Debt of the Notes to Consolidated Financial Statements.  Not filed herein as an exhibit, pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of 1934, is any instrument which defines the rights of holders of such long-term debt, where the total amount of securities authorized thereunder does not exceed 10 percent of the total assets of TMCC and its subsidiaries on a consolidated basis.  TMCC agrees to furnish copies of all such instruments to the Securities and Exchange Commission upon request
10.1	364 Day Credit Agreement, dated as of November 20, 2014, among Toyota Motor Credit Corporation, (“TMCC”), Toyota Credit de Puerto Rico Corp. (“TCPR”), Toyota Motor Finance (Netherlands) B.V. (“TMFNL”), Toyota Financial Services (UK) PLC (“TFS(UK)”), Toyota Leasing GMBH (“TLG”), Toyota Credit Canada Inc. (“TCCI”) , Toyota Kreditbank GMBH (“TKG”), and Toyota Finance Australia Limited (“TFA”), as Borrowers, each lender party thereto, and BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNP Paribas Securities Corp. (“BNPP Securities”), Citigroup Global Markets Inc. (“CGMI”), Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”) and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”) as Joint Lead Arrangers and Joint Book Managers, Citibank, N.A. (“Citibank”) and Bank of America, N.A. (“Bank of America”), as Swing Line Lenders, and Citibank, Bank of America, and BTMU as Syndication Agents	(11)

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Exhibit Number	Description	Method of Filing
10.2	Three Year Credit Agreement, dated as of November 20, 2014, among TMCC, TCPR, TMFNL, TFS(UK), TLG, TCCI, TKG, and TFA, as Borrowers, each lender party thereto, and BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNPP Securities, CGMI, MLPFS, and BTMU, as Joint Lead Arrangers and Joint Book Managers, Citibank and Bank of America, as Swing Line Lenders, and Citibank, Bank of America, and BTMU as Syndication Agents	(12)
10.3	Five Year Credit Agreement, dated as of November 20, 2014, among TMCC, TCPR, TMFNL, TFS(UK), TLG, TCCI, TKG, and TFA, as Borrowers, each lender party thereto, and BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNPP Securities, CGMI, MLPFS, and BTMU, as Joint Lead Arrangers and Joint Book Managers, Citibank and Bank of America, as Swing Line Lenders, and Citibank, Bank of America, and BTMU, as Syndication Agents	(13)
12.1	Calculation of ratio of earnings to fixed charges	Filed Herewith
31.1	Certification of Chief Executive Officer	Filed Herewith
31.2	Certification of Chief Financial Officer	Filed Herewith
32.1	Certification pursuant to 18 U.S.C. Section 1350	Furnished Herewith
32.2	Certification pursuant to 18 U.S.C. Section 1350	Furnished Herewith
101.INS	XBRL instance document	Filed Herewith
101.CAL	XBRL taxonomy extension calculation linkbase document	Filed Herewith
101.DEF	XBRL taxonomy extension definition linkbase document	Filed Herewith
101.LAB	XBRL taxonomy extension labels linkbase document	Filed Herewith
101.PRE	XBRL taxonomy extension presentation linkbase document	Filed Herewith
101.SCH	XBRL taxonomy extension schema document	Filed Herewith

(1) Incorporated herein by reference to the same numbered Exhibit filed with our Annual Report on Form 10-K for the fiscal year ended March 31, 2010, Commission File Number 1-9961.

(2) Incorporated herein by reference to the same numbered Exhibit filed with our Quarterly Report on Form 10-Q for the three months ended December 31, 2000, Commission File Number 1-9961.

(3)   Incorporated herein by reference to Exhibit 4.1(a), filed with our Registration Statement on Form S-3, File Number 33-52359.

(4)   Incorporated herein by reference to Exhibit 4.1 filed with our Current Report on Form 8-K dated October 16, 1991, Commission File Number 1-9961.

(5) Incorporated herein by reference to Exhibit 4.1(c) filed with our Registration Statement on Form S-3, Commission File No. 333-113680.

(6) Incorporated herein by reference to Exhibit 4.2 filed with our Current Report on Form 8-K dated March 9, 2011, Commission File Number 1-9961.

(7) Incorporated herein by reference to Exhibit 4.1 filed with our Current Report on Form 8-K dated September 11, 2015, Commission File Number 1-9961.

(8) Incorporated herein by reference to Exhibit 4.2 filed with our Current Report on Form 8-K dated September 11, 2015, Commission File No. 1-9961.

(9) Incorporated herein by reference to Exhibit 4.1 filed with our Current Report on Form 8-K dated September 28, 2006, Commission File No. 1-9961.

(10) Incorporated herein by reference to Exhibit 4.1 filed with our Current Report on Form 8-K dated March 4, 2011, Commission File No. 1-9961.

(11) Incorporated herein by reference to Exhibit 10.1 filed with our Current Report on Form 8-K dated November 20, 2014, Commission File No. 1-9961.

71

(12) Incorporated herein by reference to Exhibit 10.2 filed with our Current Report on Form 8-K dated November 20, 2014, Commission File No. 1-9961. 

(13) Incorporated herein by reference to Exhibit 10.3 filed with our Current Report on Form 8-K dated November 20, 2014, Commission File No. 1-9961.

72

EX-12.1

EXHIBIT 12.1

TOYOTA MOTOR CREDIT CORPORATION

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Three Months Ended				Six Months Ended
	September 30,				September 30,
(Dollars in millions)	2015		2014		2015		2014
Consolidated income before provision for income taxes	$	426	$	467	$	631	$	1,044
Fixed charges:
Interest1	$	203	$	215	$	711	$	345
Portion of rent expense representative of the interest    factor (deemed to be one-third)		2		2		4		4
Total fixed charges	$	205	$	217	$	715	$	349
Earnings available for fixed charges	$	631	$	684	$	1,346	$	1,393
Ratio of earnings to fixed charges		3.08		3.15		1.88		3.99

¹ Components of interest expense are discussed under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Interest Expense.”

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Michael Groff, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Toyota Motor Credit Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2015	By	/S/ Michael Groff
		Michael Groff
		President and
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Chris Ballinger, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Toyota Motor Credit Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  November 5, 2015	By	/S/ Chris Ballinger
		Chris Ballinger
		Senior Vice President and
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002*

In connection with the Quarterly Report of Toyota Motor Credit Corporation (the "Company") on Form 10-Q for the period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Michael Groff, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By	/S/ Michael Groff
	Michael Groff
	President and Chief Executive Officer
	November 5, 2015

* A signed original of this written statement required by Section 906 has been provided to Toyota Motor Credit Corporation and will be retained by Toyota Motor Credit Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002*

In connection with the Quarterly Report of Toyota Motor Credit Corporation (the "Company") on Form 10-Q for the period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Chris Ballinger, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By	/S/ Chris Ballinger
	Chris Ballinger
	Senior Vice President and Chief Financial Officer
	November 5, 2015

* A signed original of this written statement required by Section 906 has been provided to Toyota Motor Credit Corporation and will be retained by Toyota Motor Credit Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

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Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	$ 4,257
Available-for-sale securities total	6,410	$ 7,131
Derivative assets	51	53
Counterparty netting and collateral	(121)	(145)
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Corporate debt securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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U.S. government and agency obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Municipal debt securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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U.S. government agency mortgage-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Non-agency residential mortgage-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Non-agency commercial mortgage-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Asset-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fixed income short-term floating NAV fund II [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fixed income U.S. government sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fixed income municipal sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Investment Grade Corporate Sector Fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fixed income high-yield sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fixed income asset-backed securities sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fixed income international sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fixed income short-term sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
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Available-for-sale securities, Debt instruments	0	175
Recurring [Member] | Level 2 [Member] | Commercial paper [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	20
Available-for-sale securities, Debt instruments	124	0
Recurring [Member] | Level 2 [Member] | U.S. government and agency obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents		0
Recurring [Member] | Level 2 [Member] | Corporate debt securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	39
Available-for-sale securities, Debt instruments	213	131
Recurring [Member] | Level 2 [Member] | U.S. government and agency obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	72	142
Recurring [Member] | Level 2 [Member] | Municipal debt securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	11	12
Recurring [Member] | Level 2 [Member] | U.S. government agency mortgage-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	52	59
Recurring [Member] | Level 2 [Member] | Non-agency residential mortgage-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	0	0
Recurring [Member] | Level 2 [Member] | Non-agency commercial mortgage-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	0	0
Recurring [Member] | Level 2 [Member] | Asset-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	0	0
Recurring [Member] | Level 2 [Member] | Fixed income short-term floating NAV fund II [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	53	148
Recurring [Member] | Level 2 [Member] | Fixed income U.S. government sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	324	335
Recurring [Member] | Level 2 [Member] | Fixed income municipal sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	20	20
Recurring [Member] | Level 2 [Member] | Investment Grade Corporate Sector Fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	264	268
Recurring [Member] | Level 2 [Member] | Fixed income high-yield sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	101	55
Recurring [Member] | Level 2 [Member] | Fixed income real return sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	225	232
Recurring [Member] | Level 2 [Member] | Fixed income mortgage sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	430	399
Recurring [Member] | Level 2 [Member] | Fixed income asset-backed securities sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	73	72
Recurring [Member] | Level 2 [Member] | Fixed income emerging market sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	119	71
Recurring [Member] | Level 2 [Member] | Fixed income international sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	150	160
Recurring [Member] | Level 2 [Member] | Equity mutual fund - S&P 500 index [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 2 [Member] | Fixed income short-term sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments		37
Recurring [Member] | Level 2 [Member] | Foreign currency swaps [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	191	210
Derivative liabilities	(1,721)	(1,888)
Recurring [Member] | Level 2 [Member] | Interest rate swap [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	554	470
Derivative liabilities	(512)	(386)
Recurring [Member] | Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Available-for-sale securities total	91	103
Derivative assets	11	8
Assets at fair value	102	111
Derivative liabilities	0	0
Liabilities at fair value	(2)	0
Net assets at fair value	100	111
Recurring [Member] | Level 3 [Member] | Money market instruments [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Recurring [Member] | Level 3 [Member] | Certificates of deposit [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Available-for-sale securities, Debt instruments	0	0
Recurring [Member] | Level 3 [Member] | Commercial paper [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	0	0
Recurring [Member] | Level 3 [Member] | U.S. government and agency obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents		0
Recurring [Member] | Level 3 [Member] | Corporate debt securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	8	14
Recurring [Member] | Level 3 [Member] | U.S. government and agency obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	2	2
Recurring [Member] | Level 3 [Member] | Municipal debt securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	0	0
Recurring [Member] | Level 3 [Member] | U.S. government agency mortgage-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	0	0
Recurring [Member] | Level 3 [Member] | Non-agency residential mortgage-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	4	4
Recurring [Member] | Level 3 [Member] | Non-agency commercial mortgage-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	41	44
Recurring [Member] | Level 3 [Member] | Asset-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Debt instruments	36	39
Recurring [Member] | Level 3 [Member] | Fixed income short-term floating NAV fund II [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 3 [Member] | Fixed income U.S. government sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 3 [Member] | Fixed income municipal sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 3 [Member] | Investment Grade Corporate Sector Fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 3 [Member] | Fixed income high-yield sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 3 [Member] | Fixed income real return sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 3 [Member] | Fixed income mortgage sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 3 [Member] | Fixed income asset-backed securities sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 3 [Member] | Fixed income emerging market sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 3 [Member] | Fixed income international sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 3 [Member] | Equity mutual fund - S&P 500 index [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments	0	0
Recurring [Member] | Level 3 [Member] | Fixed income short-term sector fund [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities, Equity instruments		0
Recurring [Member] | Level 3 [Member] | Foreign currency swaps [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	10	7
Derivative liabilities	0	0
Recurring [Member] | Level 3 [Member] | Interest rate swap [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	1	1
Derivative liabilities	(2)	0
Recurring [Member] | Counterparty Netting & Collateral [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	(705)	(635)
Counterparty netting and collateral	(705)	(635)
Assets at fair value	(705)	(635)
Derivative liabilities	2,180	2,184
Liabilities at fair value	2,180	2,184
Net assets at fair value	$ 1,475	$ 1,549

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Allowance for Credit Losses - Allowance for Credit Losses and Recorded Investment in Finance Receivables by Portfolio Segment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Allowance for Credit Losses for Finance Receivables:
Provisions	$ 105	$ 79	$ 150	$ 117
Transferred to held-for-sale	(7)	0	(7)	0
Finance Receivables:
Total Finance Receivables	65,653		65,653		$ 66,567
Retail Loan [Member]
Finance Receivables:
Total Finance Receivables	51,483		51,483		50,302
Finance Receivables, Net [Member]
Allowance for Credit Losses for Finance Receivables:
Allowance for credit losses at beginning of period	395	381	409	386
Charge-offs	(82)	(77)	(143)	(129)
Recoveries	12	15	27	31
Provisions	58	62	90	93
Transferred to held-for-sale	(6)		(6)
Allowance for credit losses at end of period	377	381	377	381
Ending balance: Individually evaluated for impairment	54	26	54	26
Ending balance: Collectively evaluated for impairment	323	355	323	355
Finance Receivables:
Total Finance Receivables	65,653	66,160	65,653	66,160	$ 66,567
Ending balance: Individually evaluated for impairment	397	206	397	206
Ending balance: Collectively evaluated for impairment	65,256	65,954	65,256	65,954
Finance Receivables, Net [Member] | Retail Loan [Member]
Allowance for Credit Losses for Finance Receivables:
Allowance for credit losses at beginning of period	279	291	299	296
Charge-offs	(82)	(76)	(142)	(128)
Recoveries	12	15	27	31
Provisions	54	69	79	100
Transferred to held-for-sale	0		0
Allowance for credit losses at end of period	263	299	263	299
Ending balance: Individually evaluated for impairment	0	0	0	0
Ending balance: Collectively evaluated for impairment	263	299	263	299
Finance Receivables:
Total Finance Receivables	51,483	50,726	51,483	50,726
Ending balance: Individually evaluated for impairment	0	0	0	0
Ending balance: Collectively evaluated for impairment	51,483	50,726	51,483	50,726
Finance Receivables, Net [Member] | Commercial Portfolio Segment
Allowance for Credit Losses for Finance Receivables:
Allowance for credit losses at beginning of period	1	2	2	2
Charge-offs	0	(1)	(1)	(1)
Recoveries	0	0	0	0
Provisions	1	0	1	0
Transferred to held-for-sale	(2)		(2)
Allowance for credit losses at end of period	0	1	0	1
Ending balance: Individually evaluated for impairment	0	0	0	0
Ending balance: Collectively evaluated for impairment	0	1	0	1
Finance Receivables:
Total Finance Receivables	0	481	0	481
Ending balance: Individually evaluated for impairment	0	0	0	0
Ending balance: Collectively evaluated for impairment	0	481	0	481
Finance Receivables, Net [Member] | Dealer Products [Member]
Allowance for Credit Losses for Finance Receivables:
Allowance for credit losses at beginning of period	115	88	108	88
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provisions	3	(7)	10	(7)
Transferred to held-for-sale	(4)		(4)
Allowance for credit losses at end of period	114	81	114	81
Ending balance: Individually evaluated for impairment	54	26	54	26
Ending balance: Collectively evaluated for impairment	60	55	60	55
Finance Receivables:
Total Finance Receivables	14,170	14,953	14,170	14,953
Ending balance: Individually evaluated for impairment	397	206	397	206
Ending balance: Collectively evaluated for impairment	$ 13,773	$ 14,747	$ 13,773	$ 14,747

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Finance Receivables, Net - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Receivables [Abstract]
Receivables from direct finance leases	$ 25	$ 308
Dealer products portfolio segment accounts on nonaccrual status	$ 195	$ 172

XML

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Operating Loss Carryforwards [Line Items]
Effective tax rate	38.00%	38.00%	37.00%	37.00%
Provision for income taxes	$ 161	$ 176	$ 231	$ 389
Deferred tax assets	2,100		2,100		$ 2,200
Net deferred income tax liability	$ 7,700		$ 7,700		$ 7,500
Expiration Beginning Date [Member]
Operating Loss Carryforwards [Line Items]
Expiration Dates			Mar. 31, 2029
Expiration Ending Date [Member]
Operating Loss Carryforwards [Line Items]
Expiration Dates			Mar. 31, 2036

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Allowance for Credit Losses - Past Due Finance Receivables and Investments in Operating Leases (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Past Due Finance Receivables and Investments in Operating Leases
Finance receivables	$ 231	$ 153
Investments in operating leases	81	52
Total	$ 312	$ 205

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Investments in Marketable Securities - Summary of Contractual Maturities of Available-for-Sale Securities (Details) $ in Millions	Sep. 30, 2015 USD ($)
Marketable Securities [Abstract]
Due within 1 Year, Amount	$ 3,367
Due after 1 Year through 5 Years, Amount	594
Due after 5 Years through 10 Years, Amount	76
Due after 10 Years, Amount	87
Mortgage-backed and asset-backed securities, fair value	133	[1]
Total, fair value	4,257
Due within 1 Year, Amortized Cost	3,367
Due after 1 Year through 5 Years, Amortized Cost	591
Due after 5 Years through 10 Years, Amortized Cost	76
Due after 10 Years, Amortized Cost	85
Mortgage-backed and asset-backed securities, amortized cost	131	[1]
Available-for-sale securities, Debt instruments, Amortized cost	$ 4,250

[1] Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities do not have a single maturity date.

XML

Other Assets and Other Liabilities (Tables)

6 Months Ended

Sep. 30, 2015

Other Assets And Other Liabilities [Abstract]

Other Assets and Other Liabilities

Other assets and other liabilities consisted of the following:

	September 30, 2015		March 31, 2015
Other assets:
Notes receivable from affiliates	$	1,007	$	1,184
Used vehicles held for sale		225		188
Deferred charges		121		122
Income taxes receivable		5		174
Derivative assets		51		53
Assets held-for-sale		2,127		-
Other assets		698		561
Total other assets	$	4,234	$	2,282
Other liabilities:
Unearned insurance premiums and contract revenues	$	1,921	$	1,825
Derivative liabilities		55		90
Accounts payable and accrued expenses		899		855
Deferred income		441		405
Liabilities held-for-sale		13		-
Other liabilities		174		180
Total other liabilities	$	3,503	$	3,355

XML

Related Party Transactions - Additional Information (Details) - TMCC-affiliated companies [Member]	Sep. 30, 2015 USD ($)
Related Party Transaction [Line Items]
Maximum Borrowing Capacity	$ 15,000,000
Promissory Note [Member]
Related Party Transaction [Line Items]
Credit facilities amount outstanding	$ 0

XML

Derivatives, Hedging Activities and Interest Expense - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Aggregate fair value of derivative instruments in a net liability position	$ 55
Collateral held	121	$ 145
Collateral posted in excess of the fair value of derivative liabilities	11	2
Collateral posted	$ 1,596	1,694
Collateral held in excess of the fair value of derivative assets		$ 10

XML

Related Party Transactions - Related Party Transactions Included in Consolidated Statement of Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net financing revenues:
Manufacturers’ subvention support and other revenues	$ 330	$ 296	$ 647	$ 569
Origination costs paid to affiliates	(1)	0	(1)	0
Credit support fees incurred	(23)	(22)	(45)	(43)
Interest and other expenses paid to affiliates	0	0	(2)	(1)
Insurance earned premiums and contract revenues:
Affiliate insurance premiums and contract revenues	178	160	352	313
Investments and other income, net:
Interest earned on notes receivable from affiliates	2	1	3	2
TMCC-affiliated companies [Member]
Insurance earned premiums and contract revenues:
Affiliate insurance premiums and contract revenues	33	33	65	65
Expenses:
Shared services charges and other expenses	13	16	27	32
Employee benefits expense	$ 8	$ 7	$ 16	$ 13

XML

Subsequent Events

6 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

Note 16 – Subsequent Events

On October 1, 2015, we completed the sale of our commercial finance business to TICF for cash proceeds of $2.3 billion, which is subject to post-closing purchase price adjustments.  The transaction resulted in a gain of approximately $197 million, which will be reflected in our results of operations in the third quarter of fiscal 2016.  As part of this transaction, we entered into an Expense Reimbursement Agreement with TICF relating to certain expenses incurred by TMCC and a Transition Services Agreement relating to certain post-close services to be provided by TMCC to TICF.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional information.

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Finance Receivables, Net (Summary of Investment in Impaired Loans by Class of Finance Receivable) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Impaired Finance Receivables
Impaired Finance Receivables Individually Evaluated with Related Allowance	$ 195		$ 195		$ 162
Impaired Finance Receivables Individually Evaluated with No Related Allowance	202		202		198
Impaired Finance Receivables Aggregated And Evaluated For Impairment	245		245		264
Impaired Finance Receivables	642		642		624
Unpaid Principal Balance
Unpaid Principal Balance Individually Evaluated with Related Allowance	195		195		162
Unpaid Principal Balance Individually Evaluated with No Related Allowance	202		202		198
Unpaid Principal Balance Aggregated And Evaluated For Impairment	241		241		261
Unpaid Principal Balance	638		638		621
Individually Evaluated Allowance	54		54		55
Average Impaired Finance Receivables
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance	211	$ 63	195	$ 63
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance	193	150	195	148
Average Impaired Finance Receivables Account Balances Aggregated And Evaluated For Impairment	252	303	256	310
Average Impaired Finance Receivables	656	516	646	521
Interest Income Recognized
Interest Income Recognized Individually Evaluated with Related Allowance	2	1	3	1
Interest Income Recognized Individually Evaluated with No Related Allowance	2	1	3	2
Interest Income Recognized Aggregated And Evaluated For Impairment	4	6	9	12
Interest Income Recognized	8	8	15	15
Wholesale [Member]
Impaired Finance Receivables
Impaired Finance Receivables Individually Evaluated with Related Allowance	76		76		76
Impaired Finance Receivables Individually Evaluated with No Related Allowance	108		108		105
Impaired Finance Receivables	184		184		181
Unpaid Principal Balance
Unpaid Principal Balance Individually Evaluated with Related Allowance	76		76		76
Unpaid Principal Balance Individually Evaluated with No Related Allowance	108		108		105
Unpaid Principal Balance	184		184		181
Individually Evaluated Allowance	11		11		14
Average Impaired Finance Receivables
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance	88	20	84	17
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance	104	51	105	51
Average Impaired Finance Receivables	192	71	189	68
Interest Income Recognized
Interest Income Recognized Individually Evaluated with Related Allowance	1	0	1	0
Interest Income Recognized Individually Evaluated with No Related Allowance	1	0	1	0
Interest Income Recognized	2	0	2	0
Real estate [Member]
Impaired Finance Receivables
Impaired Finance Receivables Individually Evaluated with Related Allowance	86		86		52
Impaired Finance Receivables Individually Evaluated with No Related Allowance	90		90		91
Impaired Finance Receivables	176		176		143
Unpaid Principal Balance
Unpaid Principal Balance Individually Evaluated with Related Allowance	86		86		52
Unpaid Principal Balance Individually Evaluated with No Related Allowance	90		90		91
Unpaid Principal Balance	176		176		143
Individually Evaluated Allowance	13		13		10
Average Impaired Finance Receivables
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance	88	20	76	23
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance	85	96	87	94
Average Impaired Finance Receivables	173	116	163	117
Interest Income Recognized
Interest Income Recognized Individually Evaluated with Related Allowance	0	0	1	0
Interest Income Recognized Individually Evaluated with No Related Allowance	1	1	2	2
Interest Income Recognized	1	1	3	2
Working capital [Member]
Impaired Finance Receivables
Impaired Finance Receivables Individually Evaluated with Related Allowance	33		33		34
Impaired Finance Receivables Individually Evaluated with No Related Allowance	4		4		2
Impaired Finance Receivables	37		37		36
Unpaid Principal Balance
Unpaid Principal Balance Individually Evaluated with Related Allowance	33		33		34
Unpaid Principal Balance Individually Evaluated with No Related Allowance	4		4		2
Unpaid Principal Balance	37		37		36
Individually Evaluated Allowance	30		30		31
Average Impaired Finance Receivables
Average Impaired Finance Receivables Individually Evaluated For Impairment with An Allowance	35	23	35	23
Average Impaired Finance Receivables Individually Evaluated For Impairment Without An Allowance	4	3	3	3
Average Impaired Finance Receivables	39	26	38	26
Interest Income Recognized
Interest Income Recognized Individually Evaluated with Related Allowance	1	1	1	1
Interest Income Recognized Individually Evaluated with No Related Allowance	0	0	0	0
Interest Income Recognized	1	1	1	1
Retail Loan [Member]
Impaired Finance Receivables
Impaired Finance Receivables Aggregated And Evaluated For Impairment	245		245		264
Impaired Finance Receivables	245		245		264
Unpaid Principal Balance
Unpaid Principal Balance Aggregated And Evaluated For Impairment	241		241		261
Unpaid Principal Balance	241		241		261
Average Impaired Finance Receivables
Average Impaired Finance Receivables Account Balances Aggregated And Evaluated For Impairment	252	302	256	309
Average Impaired Finance Receivables	252	302	256	309
Interest Income Recognized
Interest Income Recognized Aggregated And Evaluated For Impairment	4	6	9	12
Interest Income Recognized	4	6	9	12
Commercial Finance [Member]
Impaired Finance Receivables
Impaired Finance Receivables Aggregated And Evaluated For Impairment	0		0		0
Impaired Finance Receivables	0		0		0
Unpaid Principal Balance
Unpaid Principal Balance Aggregated And Evaluated For Impairment	0		0		0
Unpaid Principal Balance	0		0		$ 0
Average Impaired Finance Receivables
Average Impaired Finance Receivables Account Balances Aggregated And Evaluated For Impairment	0	1	0	1
Average Impaired Finance Receivables	0	1	0	1
Interest Income Recognized
Interest Income Recognized Aggregated And Evaluated For Impairment	0	0	0	0
Interest Income Recognized	$ 0	$ 0	$ 0	$ 0

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Fair Value Measurements - Financial Assets and Liabilities Not Carried at Fair Value on Recurring Basis in Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Financial assets
Finance receivables, held-for-sale	$ 2,127	$ 0
Carrying value [Member]
Financial assets
Finance receivables, held-for-sale	755
Financial liabilities
Commercial paper	27,558	27,006
Unsecured notes and loans payable	54,275	52,388
Secured notes and loans payable	13,264	10,837
Fair value [Member]
Financial assets
Finance receivables, held-for-sale	756
Financial liabilities
Commercial paper	27,558	27,006
Unsecured notes and loans payable	55,491	53,808
Secured notes and loans payable	13,246	10,832
Fair value [Member] | Level 1 [Member]
Financial assets
Finance receivables, held-for-sale	0
Financial liabilities
Commercial paper	0	0
Unsecured notes and loans payable	0	0
Secured notes and loans payable	0	0
Fair value [Member] | Level 2 [Member]
Financial assets
Finance receivables, held-for-sale	0
Financial liabilities
Commercial paper	27,558	27,006
Unsecured notes and loans payable	54,138	53,174
Secured notes and loans payable	0	0
Fair value [Member] | Level 3 [Member]
Financial assets
Finance receivables, held-for-sale	756
Financial liabilities
Commercial paper	0	0
Unsecured notes and loans payable	1,353	634
Secured notes and loans payable	13,246	10,832
Retail Loan [Member] | Carrying value [Member]
Financial assets
Finance receivables, net	50,942	49,734
Retail Loan [Member] | Fair value [Member]
Financial assets
Finance receivables, net	50,776	49,887
Retail Loan [Member] | Fair value [Member] | Level 1 [Member]
Financial assets
Finance receivables, net	0	0
Retail Loan [Member] | Fair value [Member] | Level 2 [Member]
Financial assets
Finance receivables, net	0	0
Retail Loan [Member] | Fair value [Member] | Level 3 [Member]
Financial assets
Finance receivables, net	50,776	49,887
Commercial Finance [Member] | Carrying value [Member]
Financial assets
Finance receivables, net		217
Commercial Finance [Member] | Fair value [Member]
Financial assets
Finance receivables, net		223
Commercial Finance [Member] | Fair value [Member] | Level 1 [Member]
Financial assets
Finance receivables, net		0
Commercial Finance [Member] | Fair value [Member] | Level 2 [Member]
Financial assets
Finance receivables, net		0
Commercial Finance [Member] | Fair value [Member] | Level 3 [Member]
Financial assets
Finance receivables, net		223
Wholesale [Member] | Carrying value [Member]
Financial assets
Finance receivables, net	7,715	9,123
Wholesale [Member] | Fair value [Member]
Financial assets
Finance receivables, net	7,766	9,176
Wholesale [Member] | Fair value [Member] | Level 1 [Member]
Financial assets
Finance receivables, net	0	0
Wholesale [Member] | Fair value [Member] | Level 2 [Member]
Financial assets
Finance receivables, net	0	0
Wholesale [Member] | Fair value [Member] | Level 3 [Member]
Financial assets
Finance receivables, net	7,766	9,176
Real estate [Member] | Carrying value [Member]
Financial assets
Finance receivables, net	4,513	4,602
Real estate [Member] | Fair value [Member]
Financial assets
Finance receivables, net	4,342	4,564
Real estate [Member] | Fair value [Member] | Level 1 [Member]
Financial assets
Finance receivables, net	0	0
Real estate [Member] | Fair value [Member] | Level 2 [Member]
Financial assets
Finance receivables, net	0	0
Real estate [Member] | Fair value [Member] | Level 3 [Member]
Financial assets
Finance receivables, net	4,342	4,564
Working capital [Member] | Carrying value [Member]
Financial assets
Finance receivables, net	1,715	1,815
Working capital [Member] | Fair value [Member]
Financial assets
Finance receivables, net	1,682	1,804
Working capital [Member] | Fair value [Member] | Level 1 [Member]
Financial assets
Finance receivables, net	0	0
Working capital [Member] | Fair value [Member] | Level 2 [Member]
Financial assets
Finance receivables, net	0	0
Working capital [Member] | Fair value [Member] | Level 3 [Member]
Financial assets
Finance receivables, net	$ 1,682	$ 1,804

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Subsequent Events - Additional Information (Details) - Subsequent Events [Member] - TICF [Member] $ in Millions	Oct. 01, 2015 USD ($)
Subsequent Event [Line Items]
Cash proceeds from sale of business	$ 2,300
Gain on sale of business	$ 197

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Related Party Transactions (Tables)

6 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions Included in Consolidated Statement of Income

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Net financing revenues:
Manufacturers’ subvention support and other revenues	$	330		$	296		$	647		$	569
Origination costs paid to affiliates	$	(1	)	$	-		$	(1	)	$	-
Credit support fees incurred	$	(23	)	$	(22	)	$	(45	)	$	(43	)
Interest and other expenses paid to affiliates	$	-		$	-		$	(2	)	$	(1	)
Insurance earned premiums and contract revenues:
Affiliate insurance premiums and contract revenues	$	33		$	33		$	65		$	65
Investments and other income, net:
Interest earned on notes receivable from affiliates	$	2		$	1		$	3		$	2
Expenses:
Shared services charges and other expenses	$	13		$	16		$	27		$	32
Employee benefits expense	$	8		$	7		$	16		$	13

Related Party Transactions Included in Consolidated Balance Sheet

	September 30, 2015			March 31, 2015
Assets:
Investments in marketable securities
Investments in affiliates’ commercial paper	$	20		$	37
Finance receivables, net
Accounts receivable from affiliates	$	102		$	83
Direct finance lease receivables from affiliates	$	-		$	6
Notes receivable under home loan programs	$	10		$	11
Deferred retail origination costs paid to affiliates	$	1		$	1
Deferred retail subvention income from affiliates	$	(837	)	$	(802	)
Investments in operating leases, net
Leases to affiliates	$	2		$	7
Deferred lease origination costs paid to affiliates	$	1		$	1
Deferred lease subvention income from affiliates	$	(1,058	)	$	(950	)
Other assets
Notes receivable from affiliates	$	1,007		$	1,184
Other receivables from affiliates	$	10		$	6
Subvention support receivable from affiliates	$	175		$	126
Assets held-for-sale	$	57		$	-
Liabilities:
Other liabilities
Unearned affiliate insurance premiums and contract revenues	$	260		$	252
Accounts payable to affiliates	$	80		$	136
Notes payable to affiliates	$	25		$	24
Shareholder’s Equity:
Stock-based compensation	$	2		$	2

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Allowance for Credit Losses - Allowance for Credit Losses on Finance Receivables and Investments in Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Allowance for Credit Losses on Finance Receivables and Investments in Operating Leases
Allowance for credit losses at beginning of period	$ 467	$ 447	$ 485	$ 454
Provision for credit losses	105	79	150	117
Transferred to held-for-sale	(7)	0	(7)	0
Charge-offs, net of recoveries	(92)	(81)	(155)	(126)
Allowance for credit losses at end of period	$ 473	$ 445	$ 473	$ 445

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Commitments and Contingencies - Commitments and Guarantees (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Commitments:
Credit facilities commitments with vehicle and industrial equipment dealers	$ 1,311	$ 1,137
Minimum lease commitments	60	60
Total commitments	1,371	1,197
Total commitments and guarantees	1,471	1,297
Performance Guarantee [Member] | Putnam and Gibson Counties [Member]
Commitments:
Guarantees of affiliate pollution control and solid waste disposal bonds	$ 100	$ 100

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Other Assets and Other Liabilities - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Other Assets And Other Liabilities [Line Items]
Finance receivables, net	$ 1,007	$ 1,184
Investments in operating leases, net	33,741	31,128
TMCC-affiliated companies [Member]
Other Assets And Other Liabilities [Line Items]
Investments in operating leases, net	2	$ 7
TMCC-affiliated companies [Member] | Other Arrangements with Affiliates [Member]
Other Assets And Other Liabilities [Line Items]
Finance receivables, net	1,100
Investments in operating leases, net	1,000
Wholesale [Member] | TMCC-affiliated companies [Member] | Other Arrangements with Affiliates [Member]
Other Assets And Other Liabilities [Line Items]
Finance receivables, net	490
Commercial Finance [Member] | TMCC-affiliated companies [Member] | Other Arrangements with Affiliates [Member]
Other Assets And Other Liabilities [Line Items]
Finance receivables, net	546
Real estate [Member] | TMCC-affiliated companies [Member] | Other Arrangements with Affiliates [Member]
Other Assets And Other Liabilities [Line Items]
Finance receivables, net	53
Working capital [Member] | TMCC-affiliated companies [Member] | Other Arrangements with Affiliates [Member]
Other Assets And Other Liabilities [Line Items]
Finance receivables, net	$ 16

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Finance Receivables, Net (Net Financing Receivables) (Details) - USD ($) $ in Millions	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross finance receivables	$ 65,653		$ 66,567
Finance receivables, net	65,022		65,893
Finance Receivables, Net [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross finance receivables	65,653		66,567	$ 66,160
Deferred origination (fees) and costs, net	667		646
Deferred income	(921)		(911)
Allowance for credit losses	(377)	$ (395)	(409)	$ (381)	$ (381)	$ (386)
Finance receivables, net	65,022		65,893
Finance Receivables, Net [Member] | Retail receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross finance receivables	36,612		39,141
Finance Receivables, Net [Member] | Securitized retail receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross finance receivables	14,871		11,682
Finance Receivables, Net [Member] | Dealer financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross finance receivables	14,170		15,744
Allowance for credit losses	(114)		(108)
Finance Receivables, Net [Member] | Retail and securitized retail receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ (263)		$ (301)

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Consolidated Statement of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 400	$ 655
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,833	2,313
Recognition of deferred income	(841)	(733)
Provision for credit losses	150	117
Amortization of deferred costs	326	307
Foreign currency and other adjustments to the carrying value of debt, net	191	(828)
Net realized gains from sales and other-than-temporary impairment on securities	10	(44)
Net change in:
Restricted cash	(42)	110
Derivative assets	2	0
Other assets (Note 8) and accrued income	65	(259)
Deferred income taxes	252	399
Derivative liabilities	(35)	16
Other liabilities	182	208
Net cash provided by operating activities	3,493	2,261
Cash flows from investing activities:
Purchase of investments in marketable securities	(2,674)	(2,427)
Proceeds from sales of investments in marketable securities	356	463
Proceeds from maturities of investments in marketable securities	2,921	2,339
Acquisition of finance receivables	(13,722)	(13,775)
Collection of finance receivables	12,411	12,446
Net change in wholesale and certain working capital receivables	1,057	1,000
Acquisition of investments in operating leases	(10,079)	(8,800)
Disposals of investments in operating leases	3,978	3,198
Net change in financing support provided to affiliates	177	836	[1]
Cash equivalents (restricted) un-restricted to acquire finance receivables and investment in operating leases, net	0	1,077
Other, net	(17)	(18)
Net cash used in investing activities	(5,592)	(3,661)
Cash flows from financing activities:
Proceeds from issuance of debt	15,301	10,718
Payments on debt	(11,204)	(6,940)
Net change in commercial paper	552	(572)
Net change in financing support provided by affiliates	1	11	[1]
Dividend paid to TFSA	0	(435)
Net cash provided by financing activities	4,650	2,782
Net increase in cash and cash equivalents	2,551	1,382
Cash and cash equivalents at the beginning of the period	2,407	3,815
Cash and cash equivalents at the end of the period	4,958	5,197
Supplemental disclosures:
Interest paid	573	529
Income taxes (received) paid, net	$ (190)	$ 164

[1] Certain prior period amounts have been reclassified to conform to the current period presentation.

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Debt - Debt and Related Weighted Average Contractual Interest Rates (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Debt Instrument [Line Items]
Debt	$ 95,097	$ 90,231
Weighted average contractual interest rates	1.23%	1.22%
Commercial paper [Member]
Debt Instrument [Line Items]
Debt	$ 27,558	$ 27,006
Weighted average contractual interest rates	0.29%	0.21%
Unsecured notes and loans payable [Member]
Debt Instrument [Line Items]
Debt	$ 54,215	$ 52,307
Weighted average contractual interest rates	1.84%	1.86%
Secured notes and loans payable [Member]
Debt Instrument [Line Items]
Debt	$ 13,264	$ 10,837
Weighted average contractual interest rates	0.67%	0.60%
Carrying value adjustment [Member]
Debt Instrument [Line Items]
Debt	$ 60	$ 81

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Investments in Marketable Securities - Summary of Investments in Marketable Securities (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 6,153	$ 6,775
Available-for-sale securities, Debt instruments, Amortized cost	4,250
Available-for-sale securities, Debt instruments, Fair value	4,257
Unrealized gains	272	366
Unrealized losses	(15)	(10)
Fair value	6,410	7,131
U.S. government and agency obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Debt instruments, Amortized cost	3,354	4,357
Unrealized gains	4	3
Unrealized losses	0	(1)
Available-for-sale securities, Debt instruments, Fair value	3,358	4,359
Municipal debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Debt instruments, Amortized cost	10	10
Unrealized gains	1	2
Unrealized losses	0	0
Available-for-sale securities, Debt instruments, Fair value	11	12
Certificates of deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Debt instruments, Amortized cost	400	175
Unrealized gains	0	0
Unrealized losses	0	0
Available-for-sale securities, Debt instruments, Fair value	400	175
Commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Debt instruments, Amortized cost	124	37
Unrealized gains	0	0
Unrealized losses	0	0
Available-for-sale securities, Debt instruments, Fair value	124	37
Corporate debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Debt instruments, Amortized cost	231	138
Unrealized gains	3	7
Unrealized losses	(3)	0
Available-for-sale securities, Debt instruments, Fair value	231	145
U.S. government agency mortgage-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Debt instruments, Amortized cost	51	57
Unrealized gains	1	2
Unrealized losses	0	0
Available-for-sale securities, Debt instruments, Fair value	52	59
Non-agency residential mortgage-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Debt instruments, Amortized cost	3	3
Unrealized gains	1	1
Unrealized losses	0	0
Available-for-sale securities, Debt instruments, Fair value	4	4
Non-agency commercial mortgage-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Debt instruments, Amortized cost	41	43
Unrealized gains	1	1
Unrealized losses	(1)	0
Available-for-sale securities, Debt instruments, Fair value	41	44
Asset-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Debt instruments, Amortized cost	36	39
Unrealized gains	0	0
Unrealized losses	0	0
Available-for-sale securities, Debt instruments, Fair value	36	39
Fixed income short-term floating NAV fund II [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost	53	148
Unrealized gains	0	0
Unrealized losses	0	0
Equity instrument, Fair value	53	148
Fixed income short-term sector fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost		35
Unrealized gains		2
Unrealized losses		0
Equity instrument, Fair value		37
Fixed income U.S. government sector fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost	317	311
Unrealized gains	7	24
Unrealized losses	0	0
Equity instrument, Fair value	324	335
Fixed income municipal sector fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost	19	19
Unrealized gains	1	1
Unrealized losses	0	0
Equity instrument, Fair value	20	20
Investment Grade Corporate Sector Fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost	253	256
Unrealized gains	11	15
Unrealized losses	0	(3)
Equity instrument, Fair value	264	268
Fixed income high-yield sector fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost	97	50
Unrealized gains	4	6
Unrealized losses	0	(1)
Equity instrument, Fair value	101	55
Fixed income real return sector fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost	225	235
Unrealized gains	0	0
Unrealized losses	0	(3)
Equity instrument, Fair value	225	232
Fixed income mortgage sector fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost	420	390
Unrealized gains	10	9
Unrealized losses	0	0
Equity instrument, Fair value	430	399
Fixed income asset-backed securities sector fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost	64	63
Unrealized gains	9	9
Unrealized losses	0	0
Equity instrument, Fair value	73	72
Fixed income emerging market sector fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost	119	73
Unrealized gains	0	0
Unrealized losses	0	(2)
Equity instrument, Fair value	119	71
Fixed income international sector fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost	161	146
Unrealized gains	0	14
Unrealized losses	(11)	0
Equity instrument, Fair value	150	160
Equity mutual fund - S&P 500 index [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity instrument, Amortized cost	175	190
Unrealized gains	219	270
Unrealized losses	0	0
Equity instrument, Fair value	$ 394	$ 460

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Finance Receivables, Net (Tables)

6 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Net Financing Receivables

Finance receivables, net consisted of the following:

	September 30, 2015			March 31, 2015
Retail receivables	$	36,612		$	39,141
Securitized retail receivables		14,871			11,682
Dealer financing		14,170			15,744
		65,653			66,567
Deferred origination (fees) and costs, net		667			646
Deferred income		(921	)		(911	)
Allowance for credit losses
Retail and securitized retail receivables		(263	)		(301	)
Dealer financing		(114	)		(108	)
Total allowance for credit losses		(377	)		(409	)
Finance receivables, net	$	65,022		$	65,893

Finance Receivable Credit Quality Indicators

The tables below present each credit quality indicator by class of finance receivable:

	Retail Loan				Commercial
	September 30, 2015		March 31, 2015		September 30, 2015		March 31, 2015
Aging of finance receivables:
Current	$	50,621	$	49,684	$	-	$	511
30-59 days past due		631		467		-		8
60-89 days past due		154		100		-		2
90 days or greater past due		77		51		-		-
Total	$	51,483	$	50,302	$	-	$	521

	Wholesale				Real Estate				Working Capital
	September 30, 2015		March 31, 2015		September 30, 2015		March 31, 2015		September 30, 2015		March 31, 2015
Credit quality indicators:
Performing	$	6,913	$	7,993	$	3,861	$	3,782	$	1,564	$	1,643
Credit Watch		794		1,137		676		842		166		176
At Risk		67		60		31		37		30		32
Default		18		36		45		4		5		2
Total	$	7,792	$	9,226	$	4,613	$	4,665	$	1,765	$	1,853

Summary of Investment in Impaired Loans by Class of Finance Receivable

Impaired Finance Receivables

The following table summarizes the information related to our impaired loans by class of finance receivables:

	Impaired								Individually Evaluated
	Finance Receivables				Unpaid Principal Balance				Allowance
	September 30,		March 31,		September 30,		March 31,		September 30,		March 31,
	2015		2015		2015		2015		2015		2015
Impaired account balances individually evaluated for impairment with an allowance:
Wholesale	$	76	$	76	$	76	$	76	$	11	$	14
Real estate		86		52		86		52		13		10
Working capital		33		34		33		34		30		31
Total	$	195	$	162	$	195	$	162	$	54	$	55
Impaired account balances individually evaluated for impairment without an allowance:
Wholesale	$	108	$	105	$	108	$	105
Real estate		90		91		90		91
Working capital		4		2		4		2
Total	$	202	$	198	$	202	$	198
Impaired account balances aggregated and evaluated for impairment:
Retail loan	$	245	$	264	$	241	$	261
Commercial		-		-		-		-
Total	$	245	$	264	$	241	$	261
Total impaired account balances:
Retail loan	$	245	$	264	$	241	$	261
Commercial		-		-		-		-
Wholesale		184		181		184		181
Real estate		176		143		176		143
Working capital		37		36		37		36
Total	$	642	$	624	$	638	$	621

	Average Impaired FinanceReceivables								Interest Income Recognized
	Three Months Ended September 30,				Six Months Ended September 30,				Three Months Ended September 30,				Six Months Ended September 30,
	2015		2014		2015		2014		2015		2014		2015		2014
Impaired account balances individually evaluated for impairment with an allowance:
Wholesale	$	88	$	20	$	84	$	17	$	1	$	-	$	1	$	-
Real estate		88		20		76		23		-		-		1		-
Working capital		35		23		35		23		1		1		1		1
Total	$	211	$	63	$	195	$	63	$	2	$	1	$	3	$	1
Impaired account balances individually evaluated for impairment without an allowance:
Wholesale	$	104	$	51	$	105	$	51	$	1	$	-	$	1	$	-
Real estate		85		96		87		94		1		1		2		2
Working capital		4		3		3		3		-		-		-		-
Total	$	193	$	150	$	195	$	148	$	2	$	1	$	3	$	2
Impaired account balances aggregated and evaluated for impairment:
Retail loan	$	252	$	302	$	256	$	309	$	4	$	6	$	9	$	12
Commercial		-		1		-		1		-		-		-		-
Total	$	252	$	303	$	256	$	310	$	4	$	6	$	9	$	12
Total impaired account balances:
Retail loan	$	252	$	302	$	256	$	309	$	4	$	6	$	9	$	12
Commercial		-		1		-		1		-		-		-		-
Wholesale		192		71		189		68		2		-		2		-
Real estate		173		116		163		117		1		1		3		2
Working capital		39		26		38		26		1		1		1		1
Total	$	656	$	516	$	646	$	521	$	8	$	8	$	15	$	15

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Investments in Marketable Securities (Tables)

6 Months Ended

Sep. 30, 2015

Marketable Securities [Abstract]

Summary of Investments in Marketable Securities

The amortized cost and estimated fair value of investments in marketable securities and related unrealized gains and losses were as follows:

	September 30, 2015
	Amortized		Unrealized		Unrealized			Fair
	cost		gains		losses			value
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations	$	3,354	$	4	$	-		$	3,358
Municipal debt securities		10		1		-			11
Certificates of deposit		400		-		-			400
Commercial paper		124		-		-			124
Corporate debt securities		231		3		(3	)		231
Mortgage-backed securities:
U.S. government agency		51		1		-			52
Non-agency residential		3		1		-			4
Non-agency commercial		41		1		(1	)		41
Asset-backed securities		36		-		-			36
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		53		-		-			53
U.S. government sector fund		317		7		-			324
Municipal sector fund		19		1		-			20
Investment grade corporate sector fund		253		11		-			264
High-yield sector fund		97		4		-			101
Real return sector fund		225		-		-			225
Mortgage sector fund		420		10		-			430
Asset-backed securities sector fund		64		9		-			73
Emerging market sector fund		119		-		-			119
International sector fund		161		-		(11	)		150
Equity mutual fund		175		219		-			394
Total investments in marketable securities	$	6,153	$	272	$	(15	)	$	6,410

Note 3 – Investments in Marketable Securities (Continued)

	March 31, 2015
	Amortized		Unrealized		Unrealized			Fair
	cost		gains		losses			value
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations	$	4,357	$	3	$	(1	)	$	4,359
Municipal debt securities		10		2		-			12
Certificates of deposit		175		-		-			175
Commercial paper		37		-		-			37
Corporate debt securities		138		7		-			145
Mortgage-backed securities:
U.S. government agency		57		2		-			59
Non-agency residential		3		1		-			4
Non-agency commercial		43		1		-			44
Asset-backed securities		39		-		-			39
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		148		-		-			148
Short-term sector fund		35		2		-			37
U.S. government sector fund		311		24		-			335
Municipal sector fund		19		1		-			20
Investment grade corporate sector fund		256		15		(3	)		268
High-yield sector fund		50		6		(1	)		55
Real return sector fund		235		-		(3	)		232
Mortgage sector fund		390		9		-			399
Asset-backed securities sector fund		63		9		-			72
Emerging market sector fund		73		-		(2	)		71
International sector fund		146		14		-			160
Equity mutual fund		190		270		-			460
Total investments in marketable securities	$	6,775	$	366	$	(10	)	$	7,131

Schedule of Realized Gains and Losses on Sales from AFS

The following table represents realized gains and losses by transaction type for the following:

	Three Months Ended					Six Months Ended
	September 30,					September 30,
	2015			2014		2015			2014
Available-for-sale securities:
Realized gains on sales	$	14		$	32	$	26		$	44
Realized losses on sales	$	-		$	-	$	(1	)	$	-
Other-than-temporary impairment	$	(35	)	$	-	$	(35	)	$	-

Summary of Contractual Maturities of Available-for-Sale Securities

The amortized cost, fair value, and contractual maturities of available-for-sale debt instruments are summarized in the following table.  Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.

	September 30, 2015
	AmortizedCost		Fair Value
Available-for-sale debt instruments:
Due within 1 year	$	3,367	$	3,367
Due after 1 year through 5 years		591		594
Due after 5 years through 10 years		76		76
Due after 10 years		85		87
Mortgage-backed and asset-backed securities1		131		133
Total	$	4,250	$	4,257

¹ Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities do not have a single maturity date.

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Allowance for Credit Losses - Aging of Finance Receivables by Class (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 862	$ 628
Current	64,791	65,939
Total Finance Receivables	65,653	66,567
90 Days or Greater Past Due and Accruing	53	32
30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	631	475
60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	154	102
90 Days or Greater Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	77	51
Retail Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	862	618
Current	50,621	49,684
Total Finance Receivables	51,483	50,302
90 Days or Greater Past Due and Accruing	53	32
Retail Loan [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	631	467
Retail Loan [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	154	100
Retail Loan [Member] | 90 Days or Greater Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	77	51
Commercial Finance [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		10
Current	0	511
Total Finance Receivables	0	521
90 Days or Greater Past Due and Accruing		0
Commercial Finance [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	8
Commercial Finance [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	2
Commercial Finance [Member] | 90 Days or Greater Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Wholesale [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Current	7,792	9,226
Total Finance Receivables	7,792	9,226
90 Days or Greater Past Due and Accruing	0	0
Wholesale [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Wholesale [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Wholesale [Member] | 90 Days or Greater Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Current	4,613	4,665
Total Finance Receivables	4,613	4,665
90 Days or Greater Past Due and Accruing	0	0
Real estate [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real estate [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real estate [Member] | 90 Days or Greater Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Working capital [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Current	1,765	1,853
Total Finance Receivables	1,765	1,853
90 Days or Greater Past Due and Accruing	0	0
Working capital [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Working capital [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Working capital [Member] | 90 Days or Greater Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 0	$ 0

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Investments in Marketable Securities - Additional Information (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2015 USD ($)
Marketable Securities [Abstract]
Private placement share redemption percentage	1.00%
Private placement share redemption amount	$ 250
Share redemption period	90 days

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Investments in Operating Leases, Net (Tables)

6 Months Ended

Sep. 30, 2015

Leases Operating [Abstract]

Investments in Operating Leases, Net

Investments in operating leases, net consisted of the following:

	September 30, 2015			March 31, 2015
Investments in operating leases	$	40,897		$	37,555
Securitized investments in operating leases		1,242			1,571
		42,139			39,126
Deferred origination (fees) and costs, net		(191	)		(169	)
Deferred income		(1,080	)		(968	)
Accumulated depreciation		(7,031	)		(6,785	)
Allowance for credit losses		(96	)		(76	)
Investments in operating leases, net	$	33,741		$	31,128

As of August 31, 2015, investments in operating leases related to our commercial finance business were reclassified as held-for-sale.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.

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Allowance for Credit Losses (Tables)

6 Months Ended

Sep. 30, 2015

Loans And Leases Receivable Disclosure [Abstract]

Allowance for Credit Losses on Finance Receivables and Investments in Operating Leases

The following table provides information related to our allowance for credit losses on finance receivables and investments in operating leases:

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Allowance for credit losses at beginning of period	$	467		$	447		$	485		$	454
Provision for credit losses		105			79			150			117
Transferred to held-for-sale		(7	)		-			(7	)		-
Charge-offs, net of recoveries		(92	)		(81	)		(155	)		(126	)
Allowance for credit losses at end of period	$	473		$	445		$	473		$	445

Allowance for Credit Losses and Finance Receivables by Portfolio Segment

The following tables provide information related to our allowance for credit losses and finance receivables by portfolio segment:

	Three Months Ended September 30, 2015
	Retail Loan			Commercial			DealerProducts			Total
Allowance for Credit Losses for Finance Receivables:
Beginning balance, July 1, 2015	$	279		$	1		$	115		$	395
Charge-offs		(82	)		-			-			(82	)
Recoveries		12			-			-			12
Provisions		54			1			3			58
Transferred to held-for-sale		-			(2	)		(4	)		(6	)
Ending balance, September 30, 2015	$	263		$	-		$	114		$	377
	Six Months Ended September 30, 2015
Beginning balance, April 1, 2015	$	299		$	2		$	108		$	409
Charge-offs		(142	)		(1	)		-			(143	)
Recoveries		27			-			-			27
Provisions		79			1			10			90
Transferred to held-for-sale		-			(2	)		(4	)		(6	)
Ending balance, September 30, 2015	$	263		$	-		$	114		$	377
Ending balance: Individually evaluated for impairment	$	-		$	-		$	54		$	54
Ending balance: Collectively evaluated for impairment	$	263		$	-		$	60		$	323
Finance Receivables:
Ending balance, September 30, 2015	$	51,483		$	-		$	14,170		$	65,653
Ending balance: Individually evaluated for impairment	$	-		$	-		$	397		$	397
Ending balance: Collectively evaluated for impairment	$	51,483		$	-		$	13,773		$	65,256

	Three Months Ended September 30, 2014
	Retail Loan			Commercial			DealerProducts			Total
Allowance for Credit Losses for Finance Receivables:
Beginning balance, July 1, 2014	$	291		$	2		$	88		$	381
Charge-offs		(76	)		(1	)		-			(77	)
Recoveries		15			-			-			15
Provisions		69			-			(7	)		62
Ending balance, September 30, 2014	$	299		$	1		$	81		$	381
	Six Months Ended September 30, 2014
Beginning balance, April 1, 2014	$	296		$	2		$	88		$	386
Charge-offs		(128	)		(1	)		-			(129	)
Recoveries		31			-			-			31
Provisions		100			-			(7	)		93
Ending balance, September 30, 2014	$	299		$	1		$	81		$	381
Ending balance: Individually evaluated for impairment	$	-		$	-		$	26		$	26
Ending balance: Collectively evaluated for impairment	$	299		$	1		$	55		$	355
Finance Receivables:
Ending balance, September 30, 2014	$	50,726		$	481		$	14,953		$	66,160
Ending balance: Individually evaluated for impairment	$	-		$	-		$	206		$	206
Ending balance: Collectively evaluated for impairment	$	50,726		$	481		$	14,747		$	65,954

Past Due Finance Receivables and Investments in Operating Leases

The following table shows aggregate balances of finance receivables and investments in operating leases 60 or more days past due:

	September 30, 2015		March 31, 2015
Aggregate balances 60 or more days past due
Finance receivables	$	231	$	153
Investments in operating leases		81		52
Total	$	312	$	205

Past Due Finance Receivables by Class

The following tables summarize the aging of finance receivables by class:

	As of September 30, 2015
	30 - 59 Days Past Due		60 - 89 Days Past Due		90Daysor Greater Past Due		TotalPast Due		Current		TotalFinance Receivables		90 Days or GreaterPast Due and Accruing
Retail loan	$	631	$	154	$	77	$	862	$	50,621	$	51,483	$	53
Wholesale		-		-		-		-		7,792		7,792		-
Real estate		-		-		-		-		4,613		4,613		-
Working capital		-		-		-		-		1,765		1,765		-
Total	$	631	$	154	$	77	$	862	$	64,791	$	65,653	$	53

	As of March 31, 2015
	30 - 59 Days Past Due		60 - 89 Days Past Due		90Daysor Greater Past Due		TotalPast Due		Current		TotalFinance Receivables		90Daysor GreaterPast Due and Accruing
Retail loan	$	467	$	100	$	51	$	618	$	49,684	$	50,302	$	32
Commercial		8		2		-		10		511		521		-
Wholesale		-		-		-		-		9,226		9,226		-
Real estate		-		-		-		-		4,665		4,665		-
Working capital		-		-		-		-		1,853		1,853		-
Total	$	475	$	102	$	51	$	628	$	65,939	$	66,567	$	32

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Consolidated Statement of Shareholder's Equity - USD ($) $ in Millions	Total	Capital stock	Additional paid-in capital	Accumulated other comprehensive income	Retained earnings
Balance at Mar. 31, 2014	$ 7,738	$ 915	$ 2	$ 200	$ 6,621
Net income	655				655
Other comprehensive income (loss), net of tax	8			8
Dividend	(435)				(435)
Balance at Sep. 30, 2014	7,966	915	2	208	6,841
Balance at Mar. 31, 2015	8,520	915	2	220	7,383
Net income	400				400
Other comprehensive income (loss), net of tax	(62)			(62)
Balance at Sep. 30, 2015	$ 8,858	$ 915	$ 2	$ 158	$ 7,783

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Derivatives, Hedging Activities and Interest Expense (Tables)

6 Months Ended

Sep. 30, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Activity Impact on Consolidated Balance Sheet

The following tables show the financial statement line item and amount of our derivative assets and liabilities that are reported in the Consolidated Balance Sheet:

	As of September 30, 2015
	Hedge accounting				Non-hedge
	derivatives				accountingderivatives				Total
			Fair				Fair				Fair
	Notional		value		Notional		value		Notional		value
Other assets
Interest rate swaps	$	-	$	-	$	26,650	$	555	$	26,650	$	555
Foreign currency swaps		271		21		1,399		180		1,670		201
Total	$	271	$	21	$	28,049	$	735	$	28,320	$	756
Counterparty netting and collateral held												(705	)
Carrying value of derivative    contracts – Other assets											$	51
Other liabilities
Interest rate swaps	$	-	$	-	$	68,128	$	514	$	68,128	$	514
Interest rate caps		-		-		30		-		30		-
Foreign currency swaps		251		58		13,830		1,663		14,081		1,721
Total	$	251	$	58	$	81,988	$	2,177	$	82,239	$	2,235
Counterparty netting and collateral held												(2,180	)
Carrying value of derivative    contracts – Other liabilities											$	55

 Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued)

	As of March 31, 2015
	Hedge accounting				Non-hedge
	derivatives				accountingderivatives				Total
			Fair				Fair				Fair
	Notional		value		Notional		value		Notional		value
Other Assets
Interest rate swaps	$	190	$	4	$	26,549	$	467	$	26,739	$	471
Foreign currency swaps		271		24		913		193		1,184		217
Total	$	461	$	28	$	27,462	$	660	$	27,923	$	688
Counterparty netting and collateral held												(635	)
Carrying value of derivative    contracts – Other assets											$	53
Other liabilities
Interest rate swaps	$	-	$	-	$	64,852	$	386	$	64,852	$	386
Interest rate caps		-		-		50		-		50		-
Foreign currency swaps		251		43		12,971		1,845		13,222		1,888
Total	$	251	$	43	$	77,873	$	2,231	$	78,124	$	2,274
Counterparty netting and collateral held												(2,184	)
Carrying value of derivative    contracts – Other liabilities											$	90

Derivative Activity Impact on Consolidated Statement of Income

The following table summarizes the components of interest expense, including the location and amount of gains and losses on derivative instruments and related hedged items, as reported in our Consolidated Statement of Income:

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Interest expense on debt	$	307		$	298		$	630		$	619
Interest income on hedge accounting derivatives		(4	)		(10	)		(8	)		(25	)
Interest income on non-hedge accounting foreign currency    swaps		(21	)		(37	)		(55	)		(92	)
Interest expense on non-hedge accounting interest rate swaps		31			27			58			64
Interest expense on debt and derivatives,  net		313			278			625			566
Loss on hedge accounting derivatives:
Interest rate swaps		-			5			-			10
Foreign currency swaps		2			64			17			63
Loss on hedge accounting derivatives		2			69			17			73
Less hedged item:  change in fair value of fixed rate debt		(3	)		(69	)		(18	)		(73	)
Ineffectiveness related to hedge accounting derivatives		(1	)		-			(1	)		-
(Gain) loss from foreign currency transactions    and non-hedge accounting derivatives:
(Gain) loss on non-hedge accounting foreign currency    transactions		(200	)		(867	)		154			(787	)
Loss (gain) on non-hedge accounting foreign currency swaps		141			866			(93	)		711
(Gain) loss on non-hedge accounting interest rate    swaps		(50	)		(62	)		26			(145	)
Total interest expense	$	203		$	215		$	711		$	345

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Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset counterparty credit valuation adjustment			$ 2,000,000		$ 1,000,000
Fair value, amount transferred from level 1 to level 2	$ 37,000,000		37,000,000
Fair value, amount transferred from level 3 to level 2	4,000,000		4,000,000
Fair value, transfer between levels	0	$ 0		$ 0
Finance receivables from related party	112,000,000		112,000,000		94,000,000
Receivables from direct finance leases	25,000,000		25,000,000		308,000,000
Other Assets [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Finance receivables from related party	47,000,000		47,000,000
Receivables from direct finance leases	$ 304,000,000		$ 304,000,000
Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liability non-performance credit valuation adjustment					$ 1,000,000

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Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Financing Receivable Allowance For Credit Losses [Line Items]
Recoveries from credit loss charge-offs	$ 18	$ 20	$ 38	$ 42
Impaired finance receivables aggregated and collectively evaluated for impairment	245		245		$ 264
Retail Loan [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Impaired finance receivables aggregated and collectively evaluated for impairment	245		245		$ 264
Finance Receivables, Net [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Ending balance: Collectively evaluated for impairment	65,256	65,954	65,256	65,954
Finance Receivables, Net [Member] | Retail and Commercial Loan [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Impaired finance receivables aggregated and collectively evaluated for impairment	245		245
Finance Receivables, Net [Member] | Dealer Products [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Ending balance: Collectively evaluated for impairment	13,773	14,747	13,773	14,747
Finance Receivables, Net [Member] | Retail Loan [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Impaired finance receivables aggregated and collectively evaluated for impairment		292		292
Ending balance: Collectively evaluated for impairment	51,483	50,726	51,483	50,726
Finance Receivables, Net [Member] | Commercial Portfolio Segment
Financing Receivable Allowance For Credit Losses [Line Items]
Impaired finance receivables aggregated and collectively evaluated for impairment		1		1
Ending balance: Collectively evaluated for impairment	0	481	0	481
Finance Receivables, Net [Member] | TMS [Member] | Financial Guarantee [Member] | Dealer Products [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Ending balance: Collectively evaluated for impairment	992	866	992	866
Finance Receivables, Net [Member] | Private Toyota Distributors [Member] | Financial Guarantee [Member] | Dealer Products [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Ending balance: Collectively evaluated for impairment	$ 138	$ 152	$ 138	$ 152

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Related Party Transactions - Related Party Transactions Included in Consolidated Balance Sheet (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Investments in marketable securities
Investments in affiliates’ commercial paper	$ 20	$ 37
Finance receivables, net
Accounts receivable from affiliates	102	83
Direct finance lease receivables from affiliates	0	6
Notes receivable under home loan programs	10	11
Deferred retail origination costs paid to affiliates	1	1
Deferred retail subvention income from affiliates	(837)	(802)
Investments in operating leases, net
Leases to affiliates	33,741	31,128
Deferred lease origination costs paid to affiliates	1	1
Deferred lease subvention income from affiliates	(1,058)	(950)
Other assets:
Notes receivable from affiliates	1,007	1,184
Other receivables from affiliates	10	6
Subvention support receivable from affiliates	175	126
Assets held-for-sale	2,127	0
Other liabilities:
Unearned insurance premiums and contract revenues	1,921	1,825
Accounts payable to affiliates	80	136
Notes payable to affiliates	25	24
TMCC-affiliated companies [Member]
Investments in operating leases, net
Leases to affiliates	2	7
Other assets:
Assets held-for-sale	57	0
Other liabilities:
Unearned insurance premiums and contract revenues	260	252
Shareholder’s equity:
Stock-based compensation	$ 2	$ 2

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Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net unrealized (losses) gains on available-for-sale marketable securities, tax benefit (provision)	$ 20	$ 5	$ 41	$ (22)
Reclassification adjustment for net losses (gains) on available-for-sale marketable securities included in investment and other income, tax (benefit) provision	$ (8)	$ 11	$ (4)	$ 16

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Investments in Marketable Securities - Schedule of Realized Gains and Losses on Sales from AFS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Available-for-sale securities:
Realized gains on sales	$ 14	$ 32	$ 26	$ 44
Realized losses on sales	0	0	(1)	0
Other-than-temporary impairment	$ (35)	$ 0	$ (35)	$ 0

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Consolidated Balance Sheet (Parenthetical) - $ / shares	Sep. 30, 2015	Mar. 31, 2015
Statement Of Financial Position [Abstract]
Common Stock, Par or Stated Value Per Share
Common Stock, Shares Authorized	100,000	100,000
Common Stock, Shares, Issued	91,500	91,500
Common Stock, Shares, Outstanding	91,500	91,500

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Derivatives, Hedging Activities and Interest Expense - Derivative Activity Impact on Consolidated Statement of Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Derivative Instruments Gain Loss [Line Items]
Interest expense on debt	$ 307	$ 298	$ 630	$ 619
Interest income on hedge accounting derivatives	(4)	(10)	(8)	(25)
Interest income on non-hedge accounting foreign currency swaps	(21)	(37)	(55)	(92)
Interest expense on non-hedge accounting interest rate swaps	31	27	58	64
Interest expense on debt and derivatives, net	313	278	625	566
Total interest expense	203	215	711	345
Interest expense [Member]
Derivative Instruments Gain Loss [Line Items]
(Gain) loss on non-hedge accounting foreign currency transactions	(200)	(867)	154	(787)
Loss (gain) on non-hedge accounting foreign currency swaps	141	866	(93)	711
(Gain) loss on non-hedge accounting interest rate swaps	(50)	(62)	26	(145)
Hedge accounting derivatives [Member] | Interest expense [Member]
Derivative Instruments Gain Loss [Line Items]
Loss on hedge accounting derivatives	2	69	17	73
Less hedged item: change in fair value of fixed rate debt	(3)	(69)	(18)	(73)
Ineffectiveness related to hedge accounting derivatives	(1)	0	(1)	0
Hedge accounting derivatives [Member] | Interest expense [Member] | Interest rate swap [Member]
Derivative Instruments Gain Loss [Line Items]
Loss on hedge accounting derivatives	0	5	0	10
Hedge accounting derivatives [Member] | Interest expense [Member] | Foreign currency swaps [Member]
Derivative Instruments Gain Loss [Line Items]
Loss on hedge accounting derivatives	$ 2	$ 64	$ 17	$ 63

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Variable Interest Entities (Tables)

6 Months Ended

Sep. 30, 2015

Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract]

Schedule of Variable Interest Entities, Securitization Transactions Assets and Liabilities

The following tables show the assets and liabilities related to our VIE securitization transactions that were included in our financial statements:

	September 30, 2015
			VIE Assets						VIE Liabilities
			Gross		Net
	Restricted Cash		Securitized Assets		Securitized Assets		Other Assets		Debt		Other Liabilities
Retail finance receivables	$	771	$	14,871	$	14,659	$	5	$	12,656	$	3
Investments in operating leases		54		1,242		903		25		608		-
Total	$	825	$	16,113	$	15,562	$	30	$	13,264	$	3

	March 31, 2015
			VIE Assets						VIE Liabilities
			Gross		Net
	Restricted Cash		Securitized Assets		Securitized Assets		Other Assets		Debt		Other Liabilities
Retail finance receivables	$	730	$	11,682	$	11,509	$	4	$	9,980	$	3
Investment in operating leases		54		1,571		1,193		11		857		-
Total	$	784	$	13,253	$	12,702	$	15	$	10,837	$	3

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Variable Interest Entities - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract]
Securities retained by TMCC	$ 1,522	$ 1,275

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Income Taxes

6 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Note 13 – Income Taxes

Our effective tax rate was 37 percent for the first half of fiscal 2016 and fiscal 2015, respectively and 38 percent for the second quarter of fiscal 2016 and fiscal 2015, respectively. Our provision for income taxes for the three and six months ended September 30, 2015 was $161 million and $231 million, respectively, compared to $176 million and $389 million for the same periods in fiscal 2015.  The decrease in the provision is consistent with the decrease in our income before tax for the first half and second quarter of fiscal 2016 compared to the same periods in fiscal 2015.

Tax-related Contingencies

As of September 30, 2015, we remain under IRS examination for fiscal 2016 and 2015.  The IRS examination for fiscal 2014 was concluded in the second quarter of fiscal 2016.  

We periodically review our uncertain tax positions.  Our assessment is based on many factors including the ongoing IRS audits.  For the quarter ended September 30, 2015, our assessment did not result in a material change in unrecognized tax benefits.

Our deferred tax assets were $2.1 billion and $2.2 billion at September 30, 2015 and March 31, 2015, and were primarily due to the deferred deduction of allowance for credit losses and cumulative federal tax loss carryforwards that expire in varying amounts beginning in fiscal 2029 through fiscal 2036.  The total deferred tax liability at September 30, 2015, net of these deferred tax assets, was $7.7 billion compared with $7.5 billion at March 31, 2015.  Realization with respect to the federal tax loss carryforwards is dependent on sufficient income prior to expiration of the loss carryforwards.  Although realization is not assured, management believes it is more likely than not that the deferred tax assets will be realized.  The amount of the deferred tax assets considered realizable could be reduced if management’s estimates change.

In October 2015, TMCC sold its commercial finance business to TICF.  Pursuant to an agreement with TICF, TMCC will recognize a taxable gain that will result in a federal and state income tax liability in the third quarter of fiscal 2016.

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Commitments and Contingencies (Tables)

6 Months Ended

Sep. 30, 2015

Commitments And Contingencies Disclosure [Abstract]

Commitments and Guarantees

We have entered into certain commitments and guarantees for which the maximum unfunded amounts are summarized in the table below:

	September 30, 2015		March 31, 2015
Commitments:
Credit facilities commitments with vehicle and    industrial equipment dealers	$	1,311	$	1,137
Minimum lease commitments		60		60
Total commitments		1,371		1,197
Guarantees of affiliate pollution control and    solid waste disposal bonds		100		100
Total commitments and guarantees	$	1,471	$	1,297

Future Minimum Lease Payments under Non-cancelable Operating Leases

At September 30, 2015, minimum future commitments under lease agreements to which we are a lessee, including those under the TMS lease, are as follows:

	Futureminimum
Years ending March 31,	leasepayments
2016	$	10
2017		21
2018		16
2019		8
2020		3
Thereafter		2
Total	$	60

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Segment Information

6 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

Note 15 – Segment Information

Financial information for our reportable operating segments is summarized as follows (dollars in millions):

	Three Months Ended September 30, 2015
	Finance		Insurance			Intercompany
	operations		operations			eliminations			Total
Total financing revenues	$	2,353	$	-		$	-		$	2,353
Insurance earned premiums and contract revenues		-		178			-			178
Investment and other income, net		22		(8	)		-			14
Total gross revenues		2,375		170			-			2,545
Less:
Depreciation on operating leases		1,446		-			-			1,446
Interest expense		203		-			-			203
Provision for credit losses		105		-			-			105
Operating and administrative expenses		225		62			-			287
Insurance losses and loss adjustment expenses		-		78			-			78
Provision for income taxes		150		11			-			161
Net income	$	246	$	19		$	-		$	265
	Six Months Ended September 30, 2015
	Finance		Insurance			Intercompany
	operations		operations			eliminations			Total
Total financing revenues	$	4,608	$	-		$	-		$	4,608
Insurance earned premiums and contract revenues		-		352			-			352
Investment and other income, net		43		9			-			52
Total gross revenues		4,651		361			-			5,012
Less:
Depreciation on operating leases		2,806		-			-			2,806
Interest expense		711		-			-			711
Provision for credit losses		150		-			-			150
Operating and administrative expenses		434		123			-			557
Insurance losses and loss adjustment expenses		-		157			-			157
Provision for income taxes		201		30			-			231
Net income	$	349	$	51		$	-		$	400
Total assets at September 30, 2015	$	112,166	$	4,046		$	(1,021	)	$	115,191

Note 15 – Segment Information (Continued)

	Three Months Ended September 30, 2014
	Finance		Insurance		Intercompany
	operations		operations		eliminations			Total
Total financing revenues	$	2,057	$	-	$	-		$	2,057
Insurance earned premiums and contract revenues		-		160		-			160
Investment and other income, net		27		33		-			60
Total gross revenues		2,084		193		-			2,277
Less:
Depreciation on operating leases		1,196		-		-			1,196
Interest expense		215		-		-			215
Provision for credit losses		79		-		-			79
Operating and administrative expenses		200		53		-			253
Insurance losses and loss adjustment expenses		-		67		-			67
Provision for income taxes		149		27		-			176
Net income	$	245	$	46	$	-		$	291
	Six Months Ended September 30, 2014
	Finance		Insurance		Intercompany
	operations		operations		eliminations			Total
Total financing revenues	$	4,017	$	-	$	-		$	4,017
Insurance earned premiums and contract revenues		-		313		-			313
Investment and other income, net		47		48		-			95
Total gross revenues		4,064		361		-			4,425
Less:
Depreciation on operating leases		2,296		-		-			2,296
Interest expense		345		-		-			345
Provision for credit losses		117		-		-			117
Operating and administrative expenses		380		106		-			486
Insurance losses and loss adjustment expenses		-		137		-			137
Provision for income taxes		345		44		-			389
Net income	$	581	$	74	$	-		$	655
Total assets at September 30, 2014	$	103,307	$	3,602	$	(894	)	$	106,015

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Commitments and Contingencies - Additional Information (Details) - USD ($)	6 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Commitments And Contingencies [Line Items]
Minimum lease commitments	$ 60,000,000	$ 60,000,000
Estimated moving costs	80,000,000
Indemnification provisions	0	0
Putnam and Gibson Counties [Member] | Performance Guarantee [Member]
Commitments And Contingencies [Line Items]
Guarantees of affiliate pollution control and solid waste disposal bonds	$ 100,000,000	100,000,000
TMS [Member]
Commitments And Contingencies [Line Items]
15-year lease agreement between TMCC and TMS	15 years
Expiration date of the 15-year lease agreement between TMCC and TMS	Mar. 31, 2018
Minimum lease commitments	$ 20,000,000	$ 23,000,000
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member]
Commitments And Contingencies [Line Items]
Guarantees of affiliate pollution control and solid waste disposal bonds	100,000,000
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2028 [Member]
Commitments And Contingencies [Line Items]
Guarantees of affiliate pollution control and solid waste disposal bonds	20,000,000
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2029 [Member]
Commitments And Contingencies [Line Items]
Guarantees of affiliate pollution control and solid waste disposal bonds	50,000,000
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2030 [Member]
Commitments And Contingencies [Line Items]
Guarantees of affiliate pollution control and solid waste disposal bonds	10,000,000
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2031 [Member]
Commitments And Contingencies [Line Items]
Guarantees of affiliate pollution control and solid waste disposal bonds	10,000,000
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Performance Guarantee [Member] | 2032 [Member]
Commitments And Contingencies [Line Items]
Guarantees of affiliate pollution control and solid waste disposal bonds	10,000,000
TMCC-affiliated companies [Member] | Putnam and Gibson Counties [Member] | Affiliate Pollution Control and Solid Waste Disposal Bonds [Member]
Commitments And Contingencies [Line Items]
Guaranty Fee	$ 78,000

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Consolidated Balance Sheet (Supplemental) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
ASSETS
Finance receivables, net	$ 65,022	$ 65,893
Investments in operating leases, net	33,741	31,128
Other assets	4,234	2,282
Total assets	115,191	109,625
LIABILITIES
Debt	95,097	90,231
Other liabilities	3,503	3,355
Total liabilities	106,333	101,105
Variable Interest Entity, Primary Beneficiary
ASSETS
Finance receivables, net	14,659	11,509
Investments in operating leases, net	903	1,193
Other assets	30	15
Total assets	15,592	12,717
LIABILITIES
Debt	13,264	10,837
Other liabilities	3	3
Total liabilities	$ 13,267	$ 10,840

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Consolidated Statement of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Financing revenues:
Operating lease	$ 1,789	$ 1,497	$ 3,485	$ 2,900
Retail	465	461	922	917
Dealer	99	99	201	200
Total financing revenues	2,353	2,057	4,608	4,017
Depreciation on operating leases	1,446	1,196	2,806	2,296
Interest expense	203	215	711	345
Net financing revenues	704	646	1,091	1,376
Insurance earned premiums and contract revenues	178	160	352	313
Investment and other income, net	14	60	52	95
Net financing revenues and other revenues	896	866	1,495	1,784
Expenses:
Provision for credit losses	105	79	150	117
Operating and administrative	287	253	557	486
Insurance losses and loss adjustment expenses	78	67	157	137
Total expenses	470	399	864	740
Income before income taxes	426	467	631	1,044
Provision for income taxes	161	176	231	389
Net income	$ 265	$ 291	$ 400	$ 655

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Other Assets and Other Liabilities

6 Months Ended

Sep. 30, 2015

Other Assets And Other Liabilities [Abstract]

Other Assets and Other Liabilities

Note 8 – Other Assets and Other Liabilities

Other assets and other liabilities consisted of the following:

	September 30, 2015		March 31, 2015
Other assets:
Notes receivable from affiliates	$	1,007	$	1,184
Used vehicles held for sale		225		188
Deferred charges		121		122
Income taxes receivable		5		174
Derivative assets		51		53
Assets held-for-sale		2,127		-
Other assets		698		561
Total other assets	$	4,234	$	2,282
Other liabilities:
Unearned insurance premiums and contract revenues	$	1,921	$	1,825
Derivative liabilities		55		90
Accounts payable and accrued expenses		899		855
Deferred income		441		405
Liabilities held-for-sale		13		-
Other liabilities		174		180
Total other liabilities	$	3,503	$	3,355

In December 2014, we entered into an agreement for the sale of certain assets and liabilities relating to the commercial finance business to Toyota Industries Commercial Finance, Inc. (“TICF”), a newly-formed subsidiary of Toyota Industries Corporation, which forms part of the group of companies known as the Toyota Group and is a related party to TMCC.  In August 2015, a closing date was determined and several closing conditions were resolved such that we determined all six held-for-sale criteria had been satisfied, which resulted in the reclassification of the assets and liabilities relating to our commercial finance business to held-for-sale as of August 31, 2015.  The reclassification occurred at carrying value, as the fair value exceeded carrying value as of August 31, 2015.  See Note 1 – Interim Financial Data of the Notes to the Consolidated Financial Statements for additional detail.

The assets held-for-sale in the table above include approximately $1.1 billion of finance receivables, net and $1.0 billion of investments in operating leases, net as of September 30, 2015.  The major components of finance receivables which are included in assets held-for-sale are $546 million of commercial loan receivables, $490 million of wholesale receivables, $53 million of real estate receivables, and $16 million of working capital receivables.  Finance receivables held-for-sale within the dealer products portfolio segment are primarily classified as performing.   The past-due portion of finance receivables held-for-sale within the commercial portfolio segment is not significant as of September 30, 2015.    

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Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Entity Registrant Name	Toyota Motor Credit Corporation
Entity Central Index Key	0000834071
Current Fiscal Year End Date	--03-31
Trading Symbol	TMCC
Entity Filer Category	Non-accelerated Filer
Entity Common Stock Shares Outstanding		91,500
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2

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Debt

6 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Debt

Note 9 – Debt

Debt and the related weighted average contractual interest rates are summarized as follows:

					Weighted average
					contractual interest rates
	September 30,		March 31,		September 30,			March 31,
	2015		2015		2015			2015
Commercial paper	$	27,558	$	27,006		0.29	%		0.21	%
Unsecured notes and loans payable		54,215		52,307		1.84	%		1.86	%
Secured notes and loans payable		13,264		10,837		0.67	%		0.60	%
Carrying value adjustment		60		81
Total debt	$	95,097	$	90,231		1.23	%		1.22	%

The commercial paper balance includes unamortized premiums and discounts.  As of September 30, 2015, our commercial paper had a weighted average remaining maturity of 74 days, while our notes and loans payable mature on various dates through fiscal 2047.  Weighted average contractual interest rates are calculated based on original notional or par value before consideration of premium or discount.

The carrying value of our unsecured notes and loans payable at September 30, 2015 included $18.7 billion of unsecured floating rate debt with contractual interest rates ranging from 0 percent to 3.4 percent and $35.5 billion of unsecured fixed rate debt with contractual interest rates ranging from 0.8 percent to 9.4 percent.  The carrying value of our unsecured notes and loans payable at March 31, 2015 included $17.4 billion of unsecured floating rate debt with contractual interest rates ranging from 0 percent to 3.3 percent and $35.0 billion of unsecured fixed rate debt with contractual interest rates ranging from 0.8 percent to 9.4 percent.  Upon issuance of fixed rate notes, we generally elect to enter into interest rate swaps to convert fixed rate payments on notes to floating rate payments.

Included in unsecured notes and loans payable are notes and loans denominated in various foreign currencies, unamortized premiums and discounts and the effects of foreign currency transaction gains and losses on non-hedged or de-designated foreign currency denominated notes and loans payable.  At September 30, 2015 and March 31, 2015, the carrying values of these foreign currency denominated notes payable were $13.9 billion and $12.4 billion, respectively.  Concurrent with the issuance of these foreign currency unsecured notes, we entered into currency swaps in the same notional amount to convert non-U.S. currency payments to U.S. dollar denominated payments.

Our secured notes and loans payable are denominated in U.S. dollars and consist of both fixed and variable rate debt with interest rates ranging from 0.4 percent to 1.7 percent at September 30, 2015 and 0.4 percent to 1.5 percent at March 31, 2015.  Secured notes and loans are issued by on-balance sheet securitization trusts, as further discussed in Note 10 – Variable Interest Entities.  These notes are repayable only from collections on the underlying securitized retail finance receivables and the beneficial interests in investments in operating leases and from related credit enhancements.

The carrying value adjustment on debt represents the effects of fair value adjustments to debt in hedging relationships, accrued redemption premiums, and the unamortized fair value adjustments on the hedged item for terminated fair value hedge accounting relationships.  The carrying value adjustment on debt decreased by $21 million at September 30, 2015 compared to March 31, 2015 primarily as a result of a stronger U.S. dollar relative to certain other currencies in which our hedged debt is denominated. 

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Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 265	$ 291	$ 400	$ 655
Other comprehensive (loss) income, net of tax:
Net unrealized (losses) gains on available-for-sale marketable securities net of tax	(32)	(6)	(68)	36
Reclassification adjustment for net losses (gains) on available-for-sale marketable securities included in investment and other income, net of tax	13	(21)	6	(28)
Other comprehensive (loss) income	(19)	(27)	(62)	8
Comprehensive income	$ 246	$ 264	$ 338	$ 663

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Investments in Marketable Securities

6 Months Ended

Sep. 30, 2015

Marketable Securities [Abstract]

Investments in Marketable Securities

Note 3 – Investments in Marketable Securities

We classify all of our investments in marketable securities as available-for-sale.  The amortized cost and estimated fair value of investments in marketable securities and related unrealized gains and losses were as follows:

	September 30, 2015
	Amortized		Unrealized		Unrealized			Fair
	cost		gains		losses			value
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations	$	3,354	$	4	$	-		$	3,358
Municipal debt securities		10		1		-			11
Certificates of deposit		400		-		-			400
Commercial paper		124		-		-			124
Corporate debt securities		231		3		(3	)		231
Mortgage-backed securities:
U.S. government agency		51		1		-			52
Non-agency residential		3		1		-			4
Non-agency commercial		41		1		(1	)		41
Asset-backed securities		36		-		-			36
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		53		-		-			53
U.S. government sector fund		317		7		-			324
Municipal sector fund		19		1		-			20
Investment grade corporate sector fund		253		11		-			264
High-yield sector fund		97		4		-			101
Real return sector fund		225		-		-			225
Mortgage sector fund		420		10		-			430
Asset-backed securities sector fund		64		9		-			73
Emerging market sector fund		119		-		-			119
International sector fund		161		-		(11	)		150
Equity mutual fund		175		219		-			394
Total investments in marketable securities	$	6,153	$	272	$	(15	)	$	6,410

Note 3 – Investments in Marketable Securities (Continued)

	March 31, 2015
	Amortized		Unrealized		Unrealized			Fair
	cost		gains		losses			value
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations	$	4,357	$	3	$	(1	)	$	4,359
Municipal debt securities		10		2		-			12
Certificates of deposit		175		-		-			175
Commercial paper		37		-		-			37
Corporate debt securities		138		7		-			145
Mortgage-backed securities:
U.S. government agency		57		2		-			59
Non-agency residential		3		1		-			4
Non-agency commercial		43		1		-			44
Asset-backed securities		39		-		-			39
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		148		-		-			148
Short-term sector fund		35		2		-			37
U.S. government sector fund		311		24		-			335
Municipal sector fund		19		1		-			20
Investment grade corporate sector fund		256		15		(3	)		268
High-yield sector fund		50		6		(1	)		55
Real return sector fund		235		-		(3	)		232
Mortgage sector fund		390		9		-			399
Asset-backed securities sector fund		63		9		-			72
Emerging market sector fund		73		-		(2	)		71
International sector fund		146		14		-			160
Equity mutual fund		190		270		-			460
Total investments in marketable securities	$	6,775	$	366	$	(10	)	$	7,131

The fixed income mutual funds are investments in funds that are privately placed and managed by an open-end investment management company (the “Trust”).  If we elect to redeem shares, the Trust will normally redeem all shares for cash, but may, in unusual circumstances, redeem amounts exceeding the lesser of $250 thousand or 1 percent of the Trust’s asset value by payment in kind of securities held by the respective fund during any 90-day period.

Note 3 – Investments in Marketable Securities (Continued)

Unrealized Losses on Securities

Investments in marketable securities in a consecutive loss position for less than twelve months and for greater than twelve months were not significant at September 30, 2015 and March 31, 2015.

Realized Gains and Losses on Securities

The following table represents realized gains and losses by transaction type for the following:

	Three Months Ended					Six Months Ended
	September 30,					September 30,
	2015			2014		2015			2014
Available-for-sale securities:
Realized gains on sales	$	14		$	32	$	26		$	44
Realized losses on sales	$	-		$	-	$	(1	)	$	-
Other-than-temporary impairment	$	(35	)	$	-	$	(35	)	$	-

Other-than-temporary impairment write-downs were not significant during the three and six months ended September 30, 2014.

Contractual Maturities

The amortized cost, fair value, and contractual maturities of available-for-sale debt instruments are summarized in the following table.  Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.

	September 30, 2015
	AmortizedCost		Fair Value
Available-for-sale debt instruments:
Due within 1 year	$	3,367	$	3,367
Due after 1 year through 5 years		591		594
Due after 5 years through 10 years		76		76
Due after 10 years		85		87
Mortgage-backed and asset-backed securities1		131		133
Total	$	4,250	$	4,257

¹ Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities do not have a single maturity date.

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Fair Value Measurements

6 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 2 – Fair Value Measurements

Recurring Fair Value Measurements

Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  The following tables summarize our financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy.  

	As of September 30, 2015
									Counterparty
									netting &			Fair
	Level 1		Level 2			Level 3			collateral			value
Cash equivalents:
Money market instruments	$	800	$	957		$	-		$	-		$	1,757
Certificates of deposit		-		2,750			-			-			2,750
Commercial paper		-		20			-			-			20
Corporate debt securities		-		39			-			-			39
Cash equivalents total		800		3,766			-			-			4,566
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations		3,284		72			2			-			3,358
Municipal debt securities		-		11			-			-			11
Certificates of deposit		400		-			-			-			400
Commercial paper		-		124			-			-			124
Corporate debt securities		10		213			8			-			231
Mortgage-backed securities:
U.S. government agency		-		52			-			-			52
Non-agency residential		-		-			4			-			4
Non-agency commercial		-		-			41			-			41
Asset-backed securities		-		-			36			-			36
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		-		53			-			-			53
U.S. government sector fund		-		324			-			-			324
Municipal sector fund		-		20			-			-			20
Investment grade corporate sector fund		-		264			-			-			264
High-yield sector fund		-		101			-			-			101
Real return sector fund		-		225			-			-			225
Mortgage sector fund		-		430			-			-			430
Asset-backed securities sector fund		-		73			-			-			73
Emerging market sector fund		-		119			-			-			119
International sector fund		-		150			-			-			150
Equity mutual fund		394		-			-			-			394
Available-for-sale securities total		4,088		2,231			91			-			6,410
Derivative assets:
Foreign currency swaps		-		191			10			-			201
Interest rate swaps		-		554			1			-			555
Counterparty netting and collateral		-		-			-			(705	)		(705	)
Derivative assets total		-		745			11			(705	)		51
Assets at fair value		4,888		6,742			102			(705	)		11,027
Derivative liabilities:
Foreign currency swaps		-		(1,721	)		-			-			(1,721	)
Interest rate swaps		-		(512	)		(2	)		-			(514	)
Counterparty netting and collateral		-		-			-			2,180			2,180
Liabilities at fair value		-		(2,233	)		(2	)		2,180			(55	)
Net assets at fair value	$	4,888	$	4,509		$	100		$	1,475		$	10,972

Note 2 – Fair Value Measurements (Continued)

Derivative assets were reduced by a counterparty credit valuation adjustment of $2 million and $1 million as of September 30, 2015 and March 31, 2015, respectively.  Derivative liabilities were reduced by a non-performance credit valuation adjustment of less than $1 million as of March 31, 2015.

	As of March 31, 2015
								Counterparty
								netting &			Fair
	Level 1		Level 2			Level 3		collateral			value
Cash equivalents:
Money market instruments	$	249	$	820		$	-	$	-		$	1,069
U.S. government and agency obligations		40		-			-		-			40
Certificates of deposit		-		1,105			-		-			1,105
Cash equivalents total		289		1,925			-		-			2,214
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations		4,215		142			2		-			4,359
Municipal debt securities		-		12			-		-			12
Certificates of deposit		-		175			-		-			175
Commercial paper		37		-			-		-			37
Corporate debt securities		-		131			14		-			145
Mortgage-backed securities:
U.S. government agency		-		59			-		-			59
Non-agency residential		-		-			4		-			4
Non-agency commercial		-		-			44		-			44
Asset-backed securities		-		-			39		-			39
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		-		148			-		-			148
Short-term sector fund		-		37			-		-			37
U.S. government sector fund		-		335			-		-			335
Municipal sector fund		-		20			-		-			20
Investment grade corporate sector fund		-		268			-		-			268
High-yield sector fund		-		55			-		-			55
Real return sector fund		-		232			-		-			232
Mortgage sector fund		-		399			-		-			399
Asset-backed securities sector fund		-		72			-		-			72
Emerging market sector fund		-		71			-		-			71
International sector fund		-		160			-		-			160
Equity mutual fund		460		-			-		-			460
Available-for-sale securities total		4,712		2,316			103		-			7,131
Derivative assets:
Foreign currency swaps		-		210			7		-			217
Interest rate swaps		-		470			1		-			471
Counterparty netting and collateral		-		-			-		(635	)		(635	)
Derivative assets total		-		680			8		(635	)		53
Assets at fair value		5,001		4,921			111		(635	)		9,398
Derivative liabilities:
Foreign currency swaps		-		(1,888	)		-		-			(1,888	)
Interest rate swaps		-		(386	)		-		-			(386	)
Counterparty netting and collateral		-		-			-		2,184			2,184
Liabilities at fair value		-		(2,274	)		-		2,184			(90	)
Net assets at fair value	$	5,001	$	2,647		$	111	$	1,549		$	9,308

Note 2 – Fair Value Measurements (Continued)

Transfers between levels of the fair value hierarchy are recognized at the end of their respective reporting periods. During the six months ended September 30, 2015, $37 million was transferred from Level 1 to Level 2 and $4 million was transferred from Level 3 to Level 2 due to changes in the transparency of inputs for determination of fair value for these instruments.  During the three months ended September 30, 2015, and the three and six months ended September 30, 2014, there were no transfers between levels.

The following tables summarize the reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs:

	Three Months Ended September 30, 2015
																							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			assets
	obligations		securities		securities			securities			securities			swaps			swaps			(liabilities)
Fair value, July 1, 2015	$	2	$	8	$	46		$	37		$	93		$	1		$	30		$	31		$	124
Total gains (losses)
Included in earnings		-		-		-			-			-			(1	)		(20	)		(21	)		(21	)
Included in other comprehensive income		-		-		-			-			-			-			-			-			-
Purchases, issuances, sales, and settlements
Purchases		-		-		-			-			-			-			-			-			-
Issuances		-		-		-			-			-			-			-			-			-
Sales		-		-		-			-			-			-			-			-			-
Settlements		-		-		(1	)		(1	)		(2	)		(1	)		-			(1	)		(3	)
Transfers in to Level 3		-		-		-			-			-			-			-			-			-
Transfers out of Level 3		-		-		-			-			-			-			-			-			-
Fair value, September 30, 2015	$	2	$	8	$	45		$	36		$	91		$	(1	)	$	10		$	9		$	100
The amount of total (losses)   included in earnings   attributable to assets held   at the reporting date														$	(1	)	$	(20	)		(21	)		(21	)

	Three Months Ended September 30, 2014
																								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			assets
(Dollars in millions)	obligations		securities			securities			securities			securities			swaps			swaps			(liabilities)
Fair value, July 1, 2014	$	2	$	12		$	45		$	29		$	88		$	3		$	78		$	81		$	169
Total gains (losses)
Included in earnings		-		-			-			-			-			(1	)		(25	)		(26	)		(26	)
Included in other comprehensive income		-		-			-			-			-			-			-			-			-
Purchases, issuances, sales, and settlements
Purchases		-		3			11			3			17			-			-			-			17
Issuances		-		-			-			-			-			-			-			-			-
Sales		-		(3	)		(5	)		-			(8	)		-			-			-			(8	)
Settlements		-		-			(1	)		(2	)		(3	)		-			-			-			(3	)
Transfers in to Level 3		-		-			-			-			-			-			-			-			-
Transfers out of Level 3		-		-			-			-			-			-			-			-			-
Fair value, September 30, 2014	$	2	$	12		$	50		$	30		$	94		$	2		$	53		$	55		$	149
The amount of total (losses)   included in earnings   attributable to assets held   at the reporting date															$	(1	)	$	(25	)	$	(26	)	$	(26	)

Note 2 – Fair Value Measurements (Continued)

	Six Months Ended September 30, 2015
																								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			assets
	obligations		securities			securities			securities			securities			swaps			swaps			(liabilities)
Fair value, April 1, 2015	$	2	$	14		$	48		$	39		$	103		$	1		$	7		$	8		$	111
Total gains (losses)
Included in earnings		-		-			-			-			-			(1	)		7			6			6
Included in other comprehensive income		-		-			(1	)		-			(1	)		-			-			-			(1	)
Purchases, issuances, sales, and settlements																-			-
Purchases		-		-			-			-			-			-			-			-			-
Issuances		-		-			-			-			-			-			-			-			-
Sales		-		(2	)		-			(1	)		(3	)		-			-			-			(3	)
Settlements		-		-			(2	)		(2	)		(4	)		(1	)		(4	)		(5	)		(9	)
Transfers in to Level 3		-		-			-			-			-			-			-			-			-
Transfers out of Level 3		-		(4	)		-			-			(4	)		-			-			-			(4	)
Fair value, September 30, 2015	$	2	$	8		$	45		$	36		$	91		$	(1	)	$	10		$	9		$	100
The amount of total (losses) gains   included in earnings   attributable to assets held   at the reporting date															$	(1	)	$	7		$	6		$	6

	Six Months Ended September 30, 2014
																								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			assets
(Dollars in millions)	obligations		securities			securities			securities			securities			swaps			swaps			(liabilities)
Fair value, April 1, 2014	$	2	$	12		$	48		$	27		$	89		$	3		$	70		$	73		$	162
Total gains (losses)
Included in earnings		-		-			-			-			-			-			(12	)		(12	)		(12	)
Included in other comprehensive income		-		-			1			-			1			-			-			-			1
Purchases, issuances, sales, and settlements
Purchases		-		3			12			6			21			-			-			-			21
Issuances		-		-			-			-			-			-			-			-			-
Sales		-		(3	)		(7	)		-			(10	)		-			-			-			(10	)
Settlements		-		-			(4	)		(3	)		(7	)		(1	)		(5	)		(6	)		(13	)
Transfers in to Level 3		-		-			-			-			-			-			-			-			-
Transfers out of Level 3		-		-			-			-			-			-			-			-			-
Fair value, September 30, 2014	$	2	$	12		$	50		$	30		$	94		$	2		$	53		$	55		$	149
The amount of total (losses)   included in earnings   attributable to assets held   at the reporting date															$	-		$	(12	)	$	(12	)	$	(12	)

Note 2 – Fair Value Measurements (Continued)

Nonrecurring Fair Value Measurements

Nonrecurring fair value measurements include Level 3 net finance receivables that are not measured at fair value on a recurring basis, but are subject to fair value adjustments utilizing the fair value of the underlying collateral when there is evidence of impairment. We did not have any significant nonrecurring fair value items as of September 30, 2015 and March 31, 2015.

Level 3 Fair Value Measurements

The fair value measurements of Level 3 financial assets and liabilities subject to recurring and nonrecurring fair value measurement, and the corresponding change in the fair value measurements of these assets and liabilities, were not significant to our Consolidated Balance Sheet or Consolidated Statement of Income as of and for the three and six months ended September 30, 2015 and as of and for the year ended March 31, 2015.

Note 2 – Fair Value Measurements (Continued)

Financial Instruments

The following tables provide information about assets and liabilities not carried at fair value on a recurring basis in our Consolidated Balance Sheet:

			As of September 30, 2015
	Carrying								Total Fair
	value		Level 1		Level 2		Level 3		Value
Financial assets
Finance receivables, net
Retail loan	$	50,942	$	-	$	-	$	50,776	$	50,776
Wholesale		7,715		-		-		7,766		7,766
Real estate		4,513		-		-		4,342		4,342
Working capital		1,715		-		-		1,682		1,682
Other assets
Finance receivables, held-for-sale	$	755	$	-	$	-	$	756	$	756
Financial liabilities
Commercial paper	$	27,558	$	-	$	27,558	$	-	$	27,558
Unsecured notes and loans payable		54,275		-		54,138		1,353		55,491
Secured notes and loans payable		13,264		-		-		13,246		13,246

			As of March 31, 2015
	Carrying								Total Fair
	value		Level 1		Level 2		Level 3		Value
Financial assets
Finance receivables, net
Retail loan	$	49,734	$	-	$	-	$	49,887	$	49,887
Commercial		217		-		-		223		223
Wholesale		9,123		-		-		9,176		9,176
Real estate		4,602		-		-		4,564		4,564
Working capital		1,815		-		-		1,804		1,804
Financial liabilities
Commercial paper	$	27,006	$	-	$	27,006	$	-	$	27,006
Unsecured notes and loans payable		52,388		-		53,174		634		53,808
Secured notes and loans payable		10,837		-		-		10,832		10,832

As of August 31, 2015, certain assets related to our commercial finance business were reclassified as held-for-sale.  

The carrying value of each class of finance receivables includes accrued interest and deferred fees and costs, net of deferred income and the allowance for credit losses.  The finance receivables, net amount excludes related party transactions, for which the fair value approximates the carrying value, of $112 million and $94 million at September 30, 2015 and March 31, 2015, respectively and direct finance leases of $25 million and $308 million at September 30, 2015 and March 31, 2015, respectively.  The other assets which are finance receivables held-for-sale in the table above excludes related party transactions of $47 million, for which the fair value approximates the carrying value, and direct finance leases of $304 million at September 30, 2015.

The carrying value of unsecured notes and loans payable represents the sum of unsecured notes and loans payable and carrying value adjustment as described in Note 9 - Debt.

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Related Party Transactions

6 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Note 14 – Related Party Transactions

As of September 30, 2015, there were no material changes to our related party agreements or relationships as described in our fiscal 2015 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						Six Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Net financing revenues:
Manufacturers’ subvention support and other revenues	$	330		$	296		$	647		$	569
Origination costs paid to affiliates	$	(1	)	$	-		$	(1	)	$	-
Credit support fees incurred	$	(23	)	$	(22	)	$	(45	)	$	(43	)
Interest and other expenses paid to affiliates	$	-		$	-		$	(2	)	$	(1	)
Insurance earned premiums and contract revenues:
Affiliate insurance premiums and contract revenues	$	33		$	33		$	65		$	65
Investments and other income, net:
Interest earned on notes receivable from affiliates	$	2		$	1		$	3		$	2
Expenses:
Shared services charges and other expenses	$	13		$	16		$	27		$	32
Employee benefits expense	$	8		$	7		$	16		$	13

Note 14 – Related Party Transactions (Continued)

	September 30, 2015			March 31, 2015
Assets:
Investments in marketable securities
Investments in affiliates’ commercial paper	$	20		$	37
Finance receivables, net
Accounts receivable from affiliates	$	102		$	83
Direct finance lease receivables from affiliates	$	-		$	6
Notes receivable under home loan programs	$	10		$	11
Deferred retail origination costs paid to affiliates	$	1		$	1
Deferred retail subvention income from affiliates	$	(837	)	$	(802	)
Investments in operating leases, net
Leases to affiliates	$	2		$	7
Deferred lease origination costs paid to affiliates	$	1		$	1
Deferred lease subvention income from affiliates	$	(1,058	)	$	(950	)
Other assets
Notes receivable from affiliates	$	1,007		$	1,184
Other receivables from affiliates	$	10		$	6
Subvention support receivable from affiliates	$	175		$	126
Assets held-for-sale	$	57		$	-
Liabilities:
Other liabilities
Unearned affiliate insurance premiums and contract revenues	$	260		$	252
Accounts payable to affiliates	$	80		$	136
Notes payable to affiliates	$	25		$	24
Shareholder’s Equity:
Stock-based compensation	$	2		$	2

In August 2015, certain assets and liabilities related to the commercial finance business were reclassified to held-for-sale.  

In September 2015, TMCC entered into a promissory note with Toyota Financial Services Securities USA Corporation, an affiliate, under which TMCC can borrow up to $15 million.  As of September 30, 2015, no amounts have been borrowed on this promissory note.

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Variable Interest Entities

6 Months Ended

Sep. 30, 2015

Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract]

Variable Interest Entities

Note 10 – Variable Interest Entities

Consolidated Variable Interest Entities

We use one or more special purpose entities that are considered Variable Interest Entities (“VIEs”) to issue asset-backed securities to third party bank-sponsored asset-backed securitization vehicles and to investors in securitization transactions.  The securities issued by these VIEs are backed by the cash flows related to retail finance receivables and beneficial interests in investments in operating leases (“Securitized Assets”).  We hold variable interests in the VIEs that could potentially be significant to the VIEs.  We determined that we are the primary beneficiary of the securitization trusts because (i) our servicing responsibilities for the Securitized Assets give us the power to direct the activities that most significantly impact the performance of the VIEs, and (ii) our variable interests in the VIEs give us the obligation to absorb losses and the right to receive residual returns that could potentially be significant.

The following tables show the assets and liabilities related to our VIE securitization transactions that were included in our financial statements:

	September 30, 2015
			VIE Assets						VIE Liabilities
			Gross		Net
	Restricted Cash		Securitized Assets		Securitized Assets		Other Assets		Debt		Other Liabilities
Retail finance receivables	$	771	$	14,871	$	14,659	$	5	$	12,656	$	3
Investments in operating leases		54		1,242		903		25		608		-
Total	$	825	$	16,113	$	15,562	$	30	$	13,264	$	3

	March 31, 2015
			VIE Assets						VIE Liabilities
			Gross		Net
	Restricted Cash		Securitized Assets		Securitized Assets		Other Assets		Debt		Other Liabilities
Retail finance receivables	$	730	$	11,682	$	11,509	$	4	$	9,980	$	3
Investment in operating leases		54		1,571		1,193		11		857		-
Total	$	784	$	13,253	$	12,702	$	15	$	10,837	$	3

Restricted cash shown in the table above represents collections from the underlying Securitized Assets and certain reserve deposits held by TMCC for the VIEs and is included as part of the Restricted Cash and Cash Equivalents on our Consolidated Balance Sheet.  Gross Securitized Assets represent finance receivables and beneficial interests in investments in operating leases securitized for the asset-backed securities issued.  Net Securitized Assets are presented net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses.  Other Assets represent used vehicles held-for-sale that were repossessed by or returned to TMCC for the benefit of the VIEs.  The related debt of these consolidated VIEs is presented net of $1,522 million and $1,275 million of securities retained by TMCC at September 30, 2015 and March 31, 2015, respectively.  Other Liabilities represents accrued interest on the debt of the consolidated VIEs.

The assets of the VIEs and the restricted cash held by TMCC serve as the sole source of repayment for the asset-backed securities issued by these entities.  Investors in the notes issued by the VIEs do not have recourse to us or our other assets, with the exception of customary representation and warranty repurchase provisions and indemnities.

As the primary beneficiary of these entities, we are exposed to credit, residual value, interest rate, and prepayment risk from the Securitized Assets in the VIEs.  However, our exposure to these risks did not change as a result of the transfer of the assets to the VIEs.  We may also be exposed to interest rate risk arising from the secured notes issued by the VIEs.

In addition, we entered into interest rate swaps with certain special purpose entities that issue variable rate debt.  Under the terms of these swaps, the special purpose entities are obligated to pay TMCC a fixed rate of interest on certain payment dates in exchange for receiving a floating rate of interest on notional amounts equal to the outstanding balance of the secured debt.  

Note 10 – Variable Interest Entities (Continued)

This arrangement enables the special purpose entities to mitigate the interest rate risk inherent in issuing variable rate debt that is secured by fixed rate Securitized Assets.

The transfers of the Securitized Assets to the special purpose entities in our securitizations are considered to be sales for legal purposes.  However, the Securitized Assets and the related debt remain on our Consolidated Balance Sheet.  We recognize financing revenue on the Securitized Assets and interest expense on the secured debt issued by the special purpose entities.  We also maintain an allowance for credit losses on the Securitized Assets to cover estimated probable credit losses using a methodology consistent with that used for our non-securitized asset portfolio.  The interest rate swaps between TMCC and the special purpose entities are considered intercompany transactions and therefore are eliminated in our consolidated financial statements.

Non-consolidated Variable Interest Entities

We provide lending to Toyota dealers through the Toyota Dealer Investment Group’s Dealer Capital Program (“TDIG Program”) operated by our affiliate TMS, which has an equity position in these dealerships.  Dealers participating in this program have been determined to be VIEs.  We do not consolidate the dealerships in this program as we are not the primary beneficiary and any exposure to loss is limited to the amount of the credit facility.  At September 30, 2015 and March 31, 2015, amounts due from these dealers under the TDIG Program that are classified as finance receivables, net in the Consolidated Balance Sheet and revenues received during the three and six months ended September 30, 2015 and 2014 were not significant. 

We also have other lending relationships, which have been determined to be VIEs, but these relationships are not consolidated as we are not the primary beneficiary.  Amounts due under these relationships were not significant.

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Allowance for Credit Losses

6 Months Ended

Sep. 30, 2015

Loans And Leases Receivable Disclosure [Abstract]

Allowance for Credit Losses

Note 6 – Allowance for Credit Losses

The following table provides information related to our allowance for credit losses on finance receivables and investments in operating leases:

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Allowance for credit losses at beginning of period	$	467		$	447		$	485		$	454
Provision for credit losses		105			79			150			117
Transferred to held-for-sale		(7	)		-			(7	)		-
Charge-offs, net of recoveries		(92	)		(81	)		(155	)		(126	)
Allowance for credit losses at end of period	$	473		$	445		$	473		$	445

Charge-offs are shown net of recoveries of $18 million and $38 million for the three and six months ended September 30, 2015, respectively, and recoveries of $20 million and $42 million for the three and six months ended September 30, 2014.

Allowance for Credit Losses and Finance Receivables by Portfolio Segment

The following tables provide information related to our allowance for credit losses and finance receivables by portfolio segment:

	Three Months Ended September 30, 2015
	Retail Loan			Commercial			DealerProducts			Total
Allowance for Credit Losses for Finance Receivables:
Beginning balance, July 1, 2015	$	279		$	1		$	115		$	395
Charge-offs		(82	)		-			-			(82	)
Recoveries		12			-			-			12
Provisions		54			1			3			58
Transferred to held-for-sale		-			(2	)		(4	)		(6	)
Ending balance, September 30, 2015	$	263		$	-		$	114		$	377
	Six Months Ended September 30, 2015
Beginning balance, April 1, 2015	$	299		$	2		$	108		$	409
Charge-offs		(142	)		(1	)		-			(143	)
Recoveries		27			-			-			27
Provisions		79			1			10			90
Transferred to held-for-sale		-			(2	)		(4	)		(6	)
Ending balance, September 30, 2015	$	263		$	-		$	114		$	377
Ending balance: Individually evaluated for impairment	$	-		$	-		$	54		$	54
Ending balance: Collectively evaluated for impairment	$	263		$	-		$	60		$	323
Finance Receivables:
Ending balance, September 30, 2015	$	51,483		$	-		$	14,170		$	65,653
Ending balance: Individually evaluated for impairment	$	-		$	-		$	397		$	397
Ending balance: Collectively evaluated for impairment	$	51,483		$	-		$	13,773		$	65,256

Note 6 – Allowance for Credit Losses (Continued)

The ending balance of finance receivables collectively evaluated for impairment includes approximately $245 million of finance receivables within the retail loan segment that are specifically identified as impaired.  These amounts are aggregated with their respective portfolio segments when determining the allowance for credit losses as of September 30, 2015, as they are deemed to be insignificant for individual evaluation and we have determined that the allowance for credit losses would not be materially different if the amounts had been individually evaluated for impairment.  The ending balance of finance receivables for the dealer products portfolio segment collectively evaluated for impairment as of September 30, 2015 includes $992 million in receivables, which are guaranteed by Toyota Motor Sales, U.S.A., Inc. (“TMS”) and $138 million in receivables, which are guaranteed by third party private Toyota distributors.  These receivables are related to certain Toyota and Lexus dealers and other third parties to whom we provided financing at the request of TMS or such private distributors.

	Three Months Ended September 30, 2014
	Retail Loan			Commercial			DealerProducts			Total
Allowance for Credit Losses for Finance Receivables:
Beginning balance, July 1, 2014	$	291		$	2		$	88		$	381
Charge-offs		(76	)		(1	)		-			(77	)
Recoveries		15			-			-			15
Provisions		69			-			(7	)		62
Ending balance, September 30, 2014	$	299		$	1		$	81		$	381
	Six Months Ended September 30, 2014
Beginning balance, April 1, 2014	$	296		$	2		$	88		$	386
Charge-offs		(128	)		(1	)		-			(129	)
Recoveries		31			-			-			31
Provisions		100			-			(7	)		93
Ending balance, September 30, 2014	$	299		$	1		$	81		$	381
Ending balance: Individually evaluated for impairment	$	-		$	-		$	26		$	26
Ending balance: Collectively evaluated for impairment	$	299		$	1		$	55		$	355
Finance Receivables:
Ending balance, September 30, 2014	$	50,726		$	481		$	14,953		$	66,160
Ending balance: Individually evaluated for impairment	$	-		$	-		$	206		$	206
Ending balance: Collectively evaluated for impairment	$	50,726		$	481		$	14,747		$	65,954

The ending balance of finance receivables collectively evaluated for impairment includes approximately $292 million and $1 million of finance receivables within the retail loan and commercial portfolio segments, respectively, that are specifically identified as impaired.  These amounts are aggregated with their respective portfolio segments when determining the allowance for credit losses as of September 30, 2014, as they are deemed to be insignificant for individual evaluation and we have determined that the allowance for credit losses would not be materially different if the amounts had been individually evaluated for impairment.  The ending balance of finance receivables for the dealer products portfolio segment collectively evaluated for impairment as of September 30, 2014 includes $866 million in receivables, which are guaranteed by TMS and $152 million in receivables, which are guaranteed by third party private Toyota distributors.  These receivables are related to certain Toyota and Lexus dealers and other third parties to whom we provided financing at the request of TMS or such private distributors.

Note 6 – Allowance for Credit Losses (Continued)

Past Due Finance Receivables and Investments in Operating Leases

The following table shows aggregate balances of finance receivables and investments in operating leases 60 or more days past due:

	September 30, 2015		March 31, 2015
Aggregate balances 60 or more days past due
Finance receivables	$	231	$	153
Investments in operating leases		81		52
Total	$	312	$	205

Substantially all finance and operating lease receivables do not involve recourse to the dealer in the event of customer default.  Finance and operating lease receivables 60 or more days past due include accounts in bankruptcy and accounts greater than 120 days past due, which are recorded at the fair value of collateral less estimated costs to sell. Accounts for which vehicles have been repossessed are excluded.

Past Due Finance Receivables by Class

The following tables summarize the aging of finance receivables by class:

	As of September 30, 2015
	30 - 59 Days Past Due		60 - 89 Days Past Due		90Daysor Greater Past Due		TotalPast Due		Current		TotalFinance Receivables		90 Days or GreaterPast Due and Accruing
Retail loan	$	631	$	154	$	77	$	862	$	50,621	$	51,483	$	53
Wholesale		-		-		-		-		7,792		7,792		-
Real estate		-		-		-		-		4,613		4,613		-
Working capital		-		-		-		-		1,765		1,765		-
Total	$	631	$	154	$	77	$	862	$	64,791	$	65,653	$	53

	As of March 31, 2015
	30 - 59 Days Past Due		60 - 89 Days Past Due		90Daysor Greater Past Due		TotalPast Due		Current		TotalFinance Receivables		90Daysor GreaterPast Due and Accruing
Retail loan	$	467	$	100	$	51	$	618	$	49,684	$	50,302	$	32
Commercial		8		2		-		10		511		521		-
Wholesale		-		-		-		-		9,226		9,226		-
Real estate		-		-		-		-		4,665		4,665		-
Working capital		-		-		-		-		1,853		1,853		-
Total	$	475	$	102	$	51	$	628	$	65,939	$	66,567	$	32

As of August 31, 2015, certain finance receivables related to our commercial finance business were reclassified as held-for-sale.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.

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Other Assets and Other Liabilities - Other Assets and Other Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Other assets:
Notes receivable from affiliates	$ 1,007	$ 1,184
Used vehicles held for sale	225	188
Deferred charges	121	122
Income taxes receivable	5	174
Derivative assets	51	53
Finance receivables, held-for-sale	2,127	0
Other assets	698	561
Total other assets	4,234	2,282
Other liabilities:
Unearned insurance premiums and contract revenues	1,921	1,825
Derivative liabilities	55	90
Accounts payable and accrued expenses	899	855
Deferred income	441	405
Liabilities held-for-sale	13	0
Other liabilities	174	180
Total other liabilities	$ 3,503	$ 3,355

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Finance Receivables, Net

6 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Finance Receivables, Net

Note 4 – Finance Receivables, Net

Finance receivables, net consist of retail and dealer accounts including accrued interest and deferred fees and costs, net of the allowance for credit losses and deferred income.  Securitized receivables represent retail loan receivables that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements, as discussed further in Note 10 – Variable Interest Entities.  Cash flows from these securitized receivables are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions.  They are not available for payment of our other obligations or to satisfy claims of our other creditors.

Finance receivables, net consisted of the following:

	September 30, 2015			March 31, 2015
Retail receivables	$	36,612		$	39,141
Securitized retail receivables		14,871			11,682
Dealer financing		14,170			15,744
		65,653			66,567
Deferred origination (fees) and costs, net		667			646
Deferred income		(921	)		(911	)
Allowance for credit losses
Retail and securitized retail receivables		(263	)		(301	)
Dealer financing		(114	)		(108	)
Total allowance for credit losses		(377	)		(409	)
Finance receivables, net	$	65,022		$	65,893

As of August 31, 2015, certain finance receivables, net related to our commercial finance business were reclassified as held-for-sale.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.  Finance receivables, net and retail receivables presented in the previous table includes direct finance lease receivables, net of $25 million and $308 million at September 30, 2015 and March 31, 2015, respectively.  

Credit Quality Indicators

We are exposed to credit risk on our finance receivables.  Credit risk is the risk of loss arising from the failure of customers or dealers to meet the terms of their contracts with us or otherwise fail to perform as agreed.

As of August 31, 2015, certain assets within the commercial and dealer products portfolio segments related to our commercial finance business were reclassified as held-for-sale.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.

Retail Loan and Commercial Portfolio Segments

Retail loan and commercial portfolio segments each consist of one class of finance receivables. While we use various credit quality metrics to develop our allowance for credit losses on the retail loan and commercial portfolio segments, we primarily utilize the aging of the individual accounts to monitor the credit quality of these finance receivables.  Based on our experience, the payment status of borrowers is the strongest indicator of the credit quality of the underlying receivables.  Payment status also impacts charge-offs.

Individual borrower accounts for each class of finance receivables within the retail loan and commercial portfolio segments are segregated into aging categories based on the number of days outstanding.  The aging for each class of finance receivables is updated monthly.

Note 4 – Finance Receivables, Net (Continued)

Dealer Products Portfolio Segment

For the three classes of finance receivables within the dealer products portfolio segment (wholesale, real estate and working capital), all loans outstanding for an individual dealer or dealer group, which includes affiliated entities, are aggregated and evaluated collectively by dealer or dealer group.  This reflects the interconnected nature of financing provided to our individual dealer and dealer group customers, and their affiliated entities.

When assessing the credit quality of the finance receivables within the dealer products portfolio segment, we segregate the finance receivables account balances into four categories representing distinct credit quality indicators based on internal risk assessments.  The internal risk assessments for all finance receivables within the dealer products portfolio segment are updated on a monthly basis.

The four credit quality indicators are:

· Performing – Account not classified as either Credit Watch, At Risk or Default

· Credit Watch – Account designated for elevated attention

· At Risk – Account where there is an increased likelihood that default may exist based on qualitative and quantitative factors

· Default – Account is not currently meeting contractual obligations or we have temporarily waived certain contractual requirements

The tables below present each credit quality indicator by class of finance receivable:

	Retail Loan				Commercial
	September 30, 2015		March 31, 2015		September 30, 2015		March 31, 2015
Aging of finance receivables:
Current	$	50,621	$	49,684	$	-	$	511
30-59 days past due		631		467		-		8
60-89 days past due		154		100		-		2
90 days or greater past due		77		51		-		-
Total	$	51,483	$	50,302	$	-	$	521

	Wholesale				Real Estate				Working Capital
	September 30, 2015		March 31, 2015		September 30, 2015		March 31, 2015		September 30, 2015		March 31, 2015
Credit quality indicators:
Performing	$	6,913	$	7,993	$	3,861	$	3,782	$	1,564	$	1,643
Credit Watch		794		1,137		676		842		166		176
At Risk		67		60		31		37		30		32
Default		18		36		45		4		5		2
Total	$	7,792	$	9,226	$	4,613	$	4,665	$	1,765	$	1,853

Note 4 – Finance Receivables, Net (Continued)

Impaired Finance Receivables

The following table summarizes the information related to our impaired loans by class of finance receivables:

	Impaired								Individually Evaluated
	Finance Receivables				Unpaid Principal Balance				Allowance
	September 30,		March 31,		September 30,		March 31,		September 30,		March 31,
	2015		2015		2015		2015		2015		2015
Impaired account balances individually evaluated for impairment with an allowance:
Wholesale	$	76	$	76	$	76	$	76	$	11	$	14
Real estate		86		52		86		52		13		10
Working capital		33		34		33		34		30		31
Total	$	195	$	162	$	195	$	162	$	54	$	55
Impaired account balances individually evaluated for impairment without an allowance:
Wholesale	$	108	$	105	$	108	$	105
Real estate		90		91		90		91
Working capital		4		2		4		2
Total	$	202	$	198	$	202	$	198
Impaired account balances aggregated and evaluated for impairment:
Retail loan	$	245	$	264	$	241	$	261
Commercial		-		-		-		-
Total	$	245	$	264	$	241	$	261
Total impaired account balances:
Retail loan	$	245	$	264	$	241	$	261
Commercial		-		-		-		-
Wholesale		184		181		184		181
Real estate		176		143		176		143
Working capital		37		36		37		36
Total	$	642	$	624	$	638	$	621

As of September 30, 2015 and March 31, 2015, the impaired finance receivables balance for accounts in the dealer products portfolio segment that were on nonaccrual status was $195 million and $172 million, respectively, and there were no charge-offs against the allowance for credit losses for these finance receivables.  Therefore, the impaired finance receivables balance is equal to the unpaid principal balance.  As of September 30, 2015 and March 31, 2015, impaired finance receivables in the retail portfolio segment recorded at the fair value of the collateral less estimated selling costs were insignificant and therefore excluded from the table above.

Note 4 – Finance Receivables, Net (Continued)

The following table summarizes the average impaired loans by class of finance receivables as of the balance sheet date and the interest income recognized on these loans:

	Average Impaired FinanceReceivables								Interest Income Recognized
	Three Months Ended September 30,				Six Months Ended September 30,				Three Months Ended September 30,				Six Months Ended September 30,
	2015		2014		2015		2014		2015		2014		2015		2014
Impaired account balances individually evaluated for impairment with an allowance:
Wholesale	$	88	$	20	$	84	$	17	$	1	$	-	$	1	$	-
Real estate		88		20		76		23		-		-		1		-
Working capital		35		23		35		23		1		1		1		1
Total	$	211	$	63	$	195	$	63	$	2	$	1	$	3	$	1
Impaired account balances individually evaluated for impairment without an allowance:
Wholesale	$	104	$	51	$	105	$	51	$	1	$	-	$	1	$	-
Real estate		85		96		87		94		1		1		2		2
Working capital		4		3		3		3		-		-		-		-
Total	$	193	$	150	$	195	$	148	$	2	$	1	$	3	$	2
Impaired account balances aggregated and evaluated for impairment:
Retail loan	$	252	$	302	$	256	$	309	$	4	$	6	$	9	$	12
Commercial		-		1		-		1		-		-		-		-
Total	$	252	$	303	$	256	$	310	$	4	$	6	$	9	$	12
Total impaired account balances:
Retail loan	$	252	$	302	$	256	$	309	$	4	$	6	$	9	$	12
Commercial		-		1		-		1		-		-		-		-
Wholesale		192		71		189		68		2		-		2		-
Real estate		173		116		163		117		1		1		3		2
Working capital		39		26		38		26		1		1		1		1
Total	$	656	$	516	$	646	$	521	$	8	$	8	$	15	$	15

The primary source of interest income recognized on the loans in the table above is from performing troubled debt restructurings.  In addition, interest income recognized using a cash-basis method of accounting during the three and six months ended September 30, 2015 and 2014 was not significant.

Note 4 – Finance Receivables, Net (Continued)

Troubled Debt Restructuring

For accounts not under bankruptcy protection, the amount of finance receivables modified as a troubled debt restructuring during the three and six months ended September 30, 2015 and 2014 was not significant for each class of finance receivables.  Troubled debt restructurings for non-bankrupt accounts within the retail loan class of finance receivables are comprised exclusively of contract term extensions that reduce the monthly payment due from the customer.  Troubled debt restructurings for accounts within the commercial portfolio class of finance receivables consist of contract term extensions, interest rate adjustments, or a combination of the two.  For the three classes of finance receivables within the dealer products portfolio segment, troubled debt restructurings include contract term extensions, interest rate adjustments, waivers of loan covenants, or any combination of the three.  Troubled debt restructurings of accounts not under bankruptcy protection did not include forgiveness of principal or interest rate adjustments during the three and six months ended September 30, 2015 and 2014. As of August 31, 2015, troubled debt restructurings related to our commercial finance business were reclassified as held-for-sale.  

We consider finance receivables under bankruptcy protection within the retail loan and commercial classes to be troubled debt restructurings as of the date we receive notice of a customer filing for bankruptcy protection, regardless of the ultimate outcome of the bankruptcy proceedings.  The bankruptcy court may impose modifications as part of the proceedings, including interest rate adjustments and forgiveness of principal.  For the three and six months ended September 30, 2015 and 2014, the financial impact of troubled debt restructurings related to accounts under bankruptcy protection was not significant to our Consolidated Statement of Income and Consolidated Balance Sheet. 

Payment Defaults

Finance receivables modified as troubled debt restructurings for which there was a subsequent payment default during the three and six months ended September 30, 2015 and 2014, and for which the modification occurred within twelve months of the payment default, were not significant for all classes of such receivables.

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Investments in Operating Leases, Net

6 Months Ended

Sep. 30, 2015

Leases Operating [Abstract]

Investments in Operating Leases, Net

Note 5 – Investments in Operating Leases, Net

Investments in operating leases, net consist of vehicle and equipment leases, net of deferred fees and costs, deferred income, accumulated depreciation and the allowance for credit losses.  Securitized investments in operating leases represent beneficial interests in a pool of certain vehicle leases that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements as discussed further in Note 10 - Variable Interest Entities.  Cash flows from these securitized investments in operating leases are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions.  They are not available for payment of our other obligations or to satisfy claims of our other creditors.

Investments in operating leases, net consisted of the following:

	September 30, 2015			March 31, 2015
Investments in operating leases	$	40,897		$	37,555
Securitized investments in operating leases		1,242			1,571
		42,139			39,126
Deferred origination (fees) and costs, net		(191	)		(169	)
Deferred income		(1,080	)		(968	)
Accumulated depreciation		(7,031	)		(6,785	)
Allowance for credit losses		(96	)		(76	)
Investments in operating leases, net	$	33,741		$	31,128

As of August 31, 2015, investments in operating leases related to our commercial finance business were reclassified as held-for-sale.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.

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Derivatives, Hedging Activities and Interest Expense

6 Months Ended

Sep. 30, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives, Hedging Activities and Interest Expense

Note 7 – Derivatives, Hedging Activities and Interest Expense

Derivative Instruments

Our liabilities consist mainly of fixed and floating rate debt, denominated in various currencies, which we issue in the global capital markets, while our assets consist primarily of U.S. dollar denominated, fixed rate receivables.  We enter into interest rate swaps and foreign currency swaps to hedge the interest rate and foreign currency risks that result from the different characteristics of our assets and liabilities.  Our use of derivative transactions is intended to reduce long-term fluctuations in cash flows and fair value adjustments of assets and liabilities caused by market movements.  All of our derivative activities are authorized and monitored by our management and our Asset Liability Committee which provides a framework for financial controls and governance to manage market risk.

Credit Risk Related Contingent Features

Our derivative contracts are governed by International Swaps and Derivatives Association (“ISDA”) Master Agreements.  Substantially all of these ISDA Master Agreements contain reciprocal ratings triggers providing either party with an option to terminate the agreement at market value in the event of a ratings downgrade of the other party below a specified threshold.  As of September 30, 2015, we have daily valuation and collateral exchange arrangements with all of our counterparties.  Our collateral agreements with substantially all our counterparties include a zero threshold, full collateralization arrangement.  However, due to the time required to move collateral, there may be a delay of up to one day between the exchange of collateral and the valuation of our derivatives.

The aggregate fair value of derivative instruments that contain credit risk related contingent features that were in a net liability position at September 30, 2015 was $55 million, excluding adjustments made for our own non-performance risk.  However, we would not be required to post additional collateral to the counterparties with whom we were in a net liability position at September 30, 2015 if our credit ratings were to decline, since we fully collateralize without regard to credit ratings with these counterparties.

Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued)

Derivative Activity Impact on Financial Statements

The following tables show the financial statement line item and amount of our derivative assets and liabilities that are reported in the Consolidated Balance Sheet:

	As of September 30, 2015
	Hedge accounting				Non-hedge
	derivatives				accountingderivatives				Total
			Fair				Fair				Fair
	Notional		value		Notional		value		Notional		value
Other assets
Interest rate swaps	$	-	$	-	$	26,650	$	555	$	26,650	$	555
Foreign currency swaps		271		21		1,399		180		1,670		201
Total	$	271	$	21	$	28,049	$	735	$	28,320	$	756
Counterparty netting and collateral held												(705	)
Carrying value of derivative    contracts – Other assets											$	51
Other liabilities
Interest rate swaps	$	-	$	-	$	68,128	$	514	$	68,128	$	514
Interest rate caps		-		-		30		-		30		-
Foreign currency swaps		251		58		13,830		1,663		14,081		1,721
Total	$	251	$	58	$	81,988	$	2,177	$	82,239	$	2,235
Counterparty netting and collateral held												(2,180	)
Carrying value of derivative    contracts – Other liabilities											$	55

As of September 30, 2015, we held collateral of $121 million, which offset derivative assets, and posted collateral of $1,596 million, which offset derivative liabilities.  We also posted excess collateral of $11 million, which we did not use to offset derivative liabilities.   

 Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued)

	As of March 31, 2015
	Hedge accounting				Non-hedge
	derivatives				accountingderivatives				Total
			Fair				Fair				Fair
	Notional		value		Notional		value		Notional		value
Other Assets
Interest rate swaps	$	190	$	4	$	26,549	$	467	$	26,739	$	471
Foreign currency swaps		271		24		913		193		1,184		217
Total	$	461	$	28	$	27,462	$	660	$	27,923	$	688
Counterparty netting and collateral held												(635	)
Carrying value of derivative    contracts – Other assets											$	53
Other liabilities
Interest rate swaps	$	-	$	-	$	64,852	$	386	$	64,852	$	386
Interest rate caps		-		-		50		-		50		-
Foreign currency swaps		251		43		12,971		1,845		13,222		1,888
Total	$	251	$	43	$	77,873	$	2,231	$	78,124	$	2,274
Counterparty netting and collateral held												(2,184	)
Carrying value of derivative    contracts – Other liabilities											$	90

As of March 31, 2015, we held collateral of $145 million which offset derivative assets, and posted collateral of $1,694 million which offset derivative liabilities.  We also held excess collateral of $10 million which we did not use to offset derivative assets, and we posted excess collateral of $2 million which we did not use to offset derivative liabilities.

Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued)

The following table summarizes the components of interest expense, including the location and amount of gains and losses on derivative instruments and related hedged items, as reported in our Consolidated Statement of Income:

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Interest expense on debt	$	307		$	298		$	630		$	619
Interest income on hedge accounting derivatives		(4	)		(10	)		(8	)		(25	)
Interest income on non-hedge accounting foreign currency    swaps		(21	)		(37	)		(55	)		(92	)
Interest expense on non-hedge accounting interest rate swaps		31			27			58			64
Interest expense on debt and derivatives,  net		313			278			625			566
Loss on hedge accounting derivatives:
Interest rate swaps		-			5			-			10
Foreign currency swaps		2			64			17			63
Loss on hedge accounting derivatives		2			69			17			73
Less hedged item:  change in fair value of fixed rate debt		(3	)		(69	)		(18	)		(73	)
Ineffectiveness related to hedge accounting derivatives		(1	)		-			(1	)		-
(Gain) loss from foreign currency transactions    and non-hedge accounting derivatives:
(Gain) loss on non-hedge accounting foreign currency    transactions		(200	)		(867	)		154			(787	)
Loss (gain) on non-hedge accounting foreign currency swaps		141			866			(93	)		711
(Gain) loss on non-hedge accounting interest rate    swaps		(50	)		(62	)		26			(145	)
Total interest expense	$	203		$	215		$	711		$	345

Interest expense on debt and derivatives represents net interest settlements and changes in accruals.  Gains and losses from hedge accounting derivatives and foreign currency transactions exclude net interest settlements and changes in accruals.

The relative fair value allocation of derivative credit value adjustments for counterparty and non-performance credit risk within interest expense is not significant for the three and six months ended September 30, 2015 and 2014 as we fully collateralize our derivatives without regard to credit ratings.

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Variable Interest Entities - Schedule of Variable Interest Entities, Securitization Transactions Assets and Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Variable Interest Entity [Line Items]
Restricted Cash	$ 826	$ 784
Net Securitized Assets	65,022	65,893
Other assets	4,234	2,282
Debt	95,097	90,231
Other liabilities	3,503	3,355
Variable Interest Entities Securitized Assets [Member]
Variable Interest Entity [Line Items]
Restricted Cash	825	784
Gross Securitized Assets	16,113	13,253
Net Securitized Assets	15,562	12,702
Other assets	30	15
Related Liabilities [Member]
Variable Interest Entity [Line Items]
Debt	13,264	10,837
Other liabilities	3	3
Retail Finance Receivables [Member] | Variable Interest Entities Securitized Assets [Member]
Variable Interest Entity [Line Items]
Restricted Cash	771	730
Gross Securitized Assets	14,871	11,682
Net Securitized Assets	14,659	11,509
Other assets	5	4
Retail Finance Receivables [Member] | Related Liabilities [Member]
Variable Interest Entity [Line Items]
Debt	12,656	9,980
Other liabilities	3	3
Investments In Operating Leases, Net [Member] | Variable Interest Entities Securitized Assets [Member]
Variable Interest Entity [Line Items]
Restricted Cash	54	54
Gross Securitized Assets	1,242	1,571
Net Securitized Assets	903	1,193
Other assets	25	11
Investments In Operating Leases, Net [Member] | Related Liabilities [Member]
Variable Interest Entity [Line Items]
Debt	608	857
Other liabilities	$ 0	$ 0

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Liquidity Facilities and Letters of Credit - Additional Information (Details) - USD ($)	1 Months Ended
	Nov. 30, 2014	Sep. 30, 2015	Mar. 31, 2015
364 Day Credit Agreement Expiring 2016 [Member]
Line Of Credit Facility [Line Items]
Initiation Date	Nov. 30, 2014
Maximum Borrowing Capacity	$ 5,000,000,000	$ 5,000,000,000
Credit facilities amount outstanding		0	$ 0
Three Year Agreement Expiring 2018 [Member]
Line Of Credit Facility [Line Items]
Initiation Date	Nov. 30, 2014
Maximum Borrowing Capacity	$ 5,000,000,000	5,000,000,000
Credit facilities amount outstanding		0	0
Five Year Agreement Expiring 2020 [Member]
Line Of Credit Facility [Line Items]
Initiation Date	Nov. 30, 2014
Maximum Borrowing Capacity	$ 5,000,000,000	5,000,000,000
Credit facilities amount outstanding		0	0
Total Committed Bank Credit Facilities [Member]
Line Of Credit Facility [Line Items]
Maximum Borrowing Capacity		5,500,000,000
Committed Bank Credit Facility Expiring 2016 [Member]
Line Of Credit Facility [Line Items]
Maximum Borrowing Capacity		1,900,000,000
Credit facilities amount outstanding		0	0
Committed Bank Credit Facility Expiring 2017 [Member]
Line Of Credit Facility [Line Items]
Maximum Borrowing Capacity		850,000,000
Credit facilities amount outstanding		0	0
Committed Bank Credit Facility Expiring 2018 [Member]
Line Of Credit Facility [Line Items]
Maximum Borrowing Capacity		1,900,000,000
Credit facilities amount outstanding		0	0
Committed Bank Credit Facility Expiring 2019 [Member]
Line Of Credit Facility [Line Items]
Maximum Borrowing Capacity		450,000,000
Credit facilities amount outstanding		0	0
Committed Bank Credit Facility Expiring 2020 [Member]
Line Of Credit Facility [Line Items]
Maximum Borrowing Capacity		375,000,000
Credit facilities amount outstanding		$ 0	$ 0

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Debt - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Debt Instrument [Line Items]
Debt	$ 95,097	$ 90,231
Increase (decrease) in carrying value adjustment on debt	$ (21)
Commercial paper [Member]
Debt Instrument [Line Items]
Commercial paper weighted average remaining maturity	As of September 30, 2015, our commercial paper had a weighted average remaining maturity of 74 days
Commercial paper average remaining maturity period	74 days
Debt	$ 27,558	27,006
Secured notes and loans payable [Member]
Debt Instrument [Line Items]
Debt maturity dates	As of September 30, 2015,our notes and loans payable mature on various dates through fiscal 2047.
Debt maturity year	2047
Debt	$ 13,264	$ 10,837
Secured notes and loans payable [Member] | Floating rate [Member]
Debt Instrument [Line Items]
Contractual interest rate, minimum	0.40%	0.40%
Contractual interest rate, maximum	1.70%	1.50%
Secured notes and loans payable [Member] | Fixed rate [Member]
Debt Instrument [Line Items]
Contractual interest rate, minimum	0.40%	0.40%
Contractual interest rate, maximum	1.70%	1.50%
Unsecured notes and loans payable [Member]
Debt Instrument [Line Items]
Debt	$ 54,215	$ 52,307
Debt denominated in foreign currency	13,900	12,400
Unsecured notes and loans payable [Member] | Floating rate [Member]
Debt Instrument [Line Items]
Debt	$ 18,700	$ 17,400
Contractual interest rate, minimum	0.00%	0.00%
Contractual interest rate, maximum	3.40%	3.30%
Unsecured notes and loans payable [Member] | Fixed rate [Member]
Debt Instrument [Line Items]
Debt	$ 35,500	$ 35,000
Contractual interest rate, minimum	0.80%	0.80%
Contractual interest rate, maximum	9.40%	9.40%

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Debt (Tables)

6 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Debt and Related Weighted Average Contractual Interest Rates

Debt and the related weighted average contractual interest rates are summarized as follows:

					Weighted average
					contractual interest rates
	September 30,		March 31,		September 30,			March 31,
	2015		2015		2015			2015
Commercial paper	$	27,558	$	27,006		0.29	%		0.21	%
Unsecured notes and loans payable		54,215		52,307		1.84	%		1.86	%
Secured notes and loans payable		13,264		10,837		0.67	%		0.60	%
Carrying value adjustment		60		81
Total debt	$	95,097	$	90,231		1.23	%		1.22	%

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Investments in Operating Leases, Net (Investments in Operating Leases, Net) (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Property Subject To Or Available For Operating Lease [Line Items]
Investments in operating leases, net	$ 33,741	$ 31,128
Investments in operating leases [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Investments in operating leases	40,897	37,555
Securitized investments in operating leases [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Investments in operating leases	1,242	1,571
Investments In Operating Leases, Net [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Investments in operating leases	42,139	39,126
Deferred origination (fees) and costs, net	(191)	(169)
Deferred income	(1,080)	(968)
Accumulated depreciation	(7,031)	(6,785)
Allowance for credit losses	$ (96)	$ (76)

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Commitments and Contingencies

6 Months Ended

Sep. 30, 2015

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 12 – Commitments and Contingencies

Commitments and Guarantees

We have entered into certain commitments and guarantees for which the maximum unfunded amounts are summarized in the table below:

	September 30, 2015		March 31, 2015
Commitments:
Credit facilities commitments with vehicle and    industrial equipment dealers	$	1,311	$	1,137
Minimum lease commitments		60		60
Total commitments		1,371		1,197
Guarantees of affiliate pollution control and    solid waste disposal bonds		100		100
Total commitments and guarantees	$	1,471	$	1,297

Wholesale financing demand note facilities are not considered to be contractual commitments as they are not binding arrangements under which TMCC is required to perform.

We are party to a 15-year lease agreement, which expires in 2018, with TMS for our headquarters location in the TMS headquarters complex in Torrance, California.  Minimum lease commitments include $20 million and $23 million for facilities leases with affiliates at September 30, 2015 and March 31, 2015, respectively.  At September 30, 2015, minimum future commitments under lease agreements to which we are a lessee, including those under the TMS lease, are as follows:

	Futureminimum
Years ending March 31,	leasepayments
2016	$	10
2017		21
2018		16
2019		8
2020		3
Thereafter		2
Total	$	60

Commitments

We provide fixed and variable rate credit facilities to vehicle and industrial equipment dealers.  These credit facilities are typically used for facilities refurbishment, real estate purchases, and working capital requirements.  These loans are generally collateralized with liens on real estate, vehicle inventory, and/or other dealership assets, as appropriate.  We obtain a personal guarantee from the vehicle or industrial equipment dealer or a corporate guarantee from the dealership when deemed prudent.  Although the loans are typically collateralized or guaranteed, the value of the underlying collateral or guarantees may not be sufficient to cover our exposure under such agreements.  Our credit facility pricing reflects market conditions, the competitive environment, the level of dealer support required for the facility, and the credit worthiness of each dealer.  Amounts drawn under these facilities are reviewed for collectability on a quarterly basis, in conjunction with our evaluation of the allowance for credit losses.  We also provide financing to various multi-franchise dealer organizations, often as part of a lending consortium, for wholesale, working capital, real estate, and business acquisitions.

On April 28, 2014, the Company announced that our corporate headquarters will move from Torrance, California to Plano, Texas beginning in 2017 as part of TMC’s planned consolidation of its three North American headquarters for manufacturing, sales and marketing to a single new headquarters facility.   To date, the Company has not incurred any significant costs related to employees, lease termination or other related relocation expenses as a result of this planned headquarters move.  These moving costs are currently estimated to be approximately $80 million and will be expensed as incurred over the next several years.

Note 12 – Commitments and Contingencies (Continued)

Guarantees and Other Contingencies

TMCC has guaranteed bond obligations totaling $100 million in principal that were issued by Putnam County, West Virginia and Gibson County, Indiana to finance the construction of pollution control facilities at manufacturing plants of certain TMCC affiliates.  The bonds mature in the following fiscal years ending March 31: 2028 - $20 million; 2029 - $50 million; 2030 - $10 million; 2031 - $10 million; and 2032 - $10 million.  TMCC would be required to perform under the guarantees in the event of non-payment on the bonds and other related obligations.  TMCC is entitled to reimbursement by the affiliates for any amounts paid.  TMCC receives an annual fee of $78 thousand for guaranteeing such payments.  TMCC has not been required to perform under any of these affiliate bond guarantees as of September 30, 2015 and March 31, 2015.

Indemnification

In the ordinary course of business, we enter into agreements containing indemnification provisions standard in the industry related to several types of transactions, including, but not limited to, debt funding, derivatives, securitization transactions, and our vendor and supplier agreements.  Performance under these indemnities would occur upon a breach of the representations, warranties or covenants made or given, or a third party claim. In addition, we have agreed in certain debt and derivative issuances, and subject to certain exceptions, to gross-up payments due to third parties in the event that withholding tax is imposed on such payments.  In addition, certain of our funding arrangements may require us to pay lenders for increased costs due to certain changes in laws or regulations.  Due to the difficulty in predicting events which could cause a breach of the indemnification provisions or trigger a gross-up or other payment obligation, we are not able to estimate our maximum exposure to future payments that could result from claims made under such provisions.  We have not made any material payments in the past as a result of these provisions, and as of September 30, 2015, we determined that it is not probable that we will be required to make any material payments in the future.  As of September 30, 2015 and March 31, 2015, no amounts have been recorded under these indemnification provisions.

Litigation and Governmental Proceedings

Various legal actions, governmental proceedings and other claims are pending or may be instituted or asserted in the future against us with respect to matters arising in the ordinary course of business.  Certain of these actions are or purport to be class action suits, seeking sizeable damages and/or changes in our business operations, policies and practices.  Certain of these actions are similar to suits that have been filed against other financial institutions and captive finance companies.  We perform periodic reviews of pending claims and actions to determine the probability of adverse verdicts and resulting amounts of liability.  We establish accruals for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated.  When we are able, we also determine estimates of reasonably possible loss or range of loss, whether in excess of any related accrued liability or where there is no accrued liability.  Given the inherent uncertainty associated with legal matters, the actual costs of resolving legal claims and associated costs of defense may be substantially higher or lower than the amounts for which accruals have been established.  Based on available information and established accruals, we do not believe it is reasonably possible that the results of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial condition or results of operations.

As previously disclosed, we continue to engage in communications with the Consumer Financial Protection Bureau and the U.S. Department of Justice (together, the “Agencies”) regarding our purchases of auto finance contracts from dealers and related discretionary dealer compensation practices. As of September 30, 2015, we have recorded as a loss contingency an amount that was not material to our consolidated financial condition or results of operations. Based on the current state of discussions with the Agencies, we believe the range of reasonably possible losses in excess of the amount accrued is not material.  We are continuing discussions with the Agencies and intend to achieve a voluntary resolution to these matters. However, if such resolution does not occur, we may be subject to an enforcement action.  In addition, we have received a request for documents and information from the New York State Department of Financial Services relating to our lending practices (including fair lending), and we are fully cooperating with this request.  We cannot predict the outcome of this request given its preliminary status.

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Interim Financial Data (Policies)

6 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The information furnished in these unaudited interim financial statements for the three and six months ended September 30, 2015 and 2014 has been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).  In the opinion of management, the unaudited financial information reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented.  The results of operations for the three and six months ended September 30, 2015 do not necessarily indicate the results which may be expected for the full fiscal year ending March 31, 2016 (“fiscal 2016”).

These financial statements should be read in conjunction with the Consolidated Financial Statements, significant accounting policies, and other notes to the Consolidated Financial Statements included in Toyota Motor Credit Corporation’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended March 31, 2015 (“fiscal 2015”), which was filed with the Securities and Exchange Commission on June 2, 2015.  References herein to “TMCC” denote Toyota Motor Credit Corporation, and references herein to “we”, “our”, and “us” denote Toyota Motor Credit Corporation and its consolidated subsidiaries.

Certain prior period amounts have been reclassified to conform to the current period presentation.  Related party transactions presented in the Consolidated Financial Statements are disclosed in Note 14 – Related Party Transactions of the Notes to Consolidated Financial Statements.

Assets Held-for-Sale

Assets Held-for-Sale

As of August 31, 2015, we reclassified certain assets and liabilities related to our industrial equipment retail, lease and dealer portfolios (hereinafter the “commercial finance business” or “disposal group”) to held-for-sale as all of the following criteria were met: management, having the authority to approve the action, committed to a plan to sell the disposal group; the disposal group was available for immediate sale in its present condition subject only to terms that are usual and customary; we located a buyer; the sale of the disposal group was determined to be probable, and transfer of the disposal group was expected to qualify for recognition as a completed sale within one year; the disposal group was actively marketed for sale at a price that was reasonable in relation to its current fair value; and actions required to complete the plan indicate that it was unlikely significant changes to the plan would be made or that the plan would be withdrawn.  

We initially measure a long-lived asset or disposal group that is classified as held-for-sale at the lower of its carrying value or fair value less any costs to sell.  Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met.  Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale.  We assess the fair value of a long-lived asset or disposal group, less any costs to sell, each reporting period it remains classified as held-for-sale.  We report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held-for-sale.

Cash flows associated with the assets held-for-sale are reflected as investing activities within the Consolidated Statement of Cash Flows.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.

New Accounting Guidance

New Accounting Guidance

In May 2014, the Financial Accounting Standards Board ("FASB") issued new guidance on the recognition of revenue from contracts with customers.  This comprehensive standard will supersede virtually all existing revenue recognition guidance.  This standard applies to all contracts with customers except leases, insurance contracts, financial instruments, guarantees, and certain nonmonetary exchanges.  In August 2015, the FASB issued a one-year deferral of the effective date, with early adoption as of the original effective date permitted.  We expect to adopt the new guidance on its deferred effective date, which is April 1, 2018 for TMCC.  We are currently evaluating the potential impact of this guidance on our consolidated financial statements.  

In February 2015, the FASB issued new guidance that amends the analysis a reporting entity must perform to determine whether it should consolidate certain legal entities.  This accounting guidance is effective for us on April 1, 2016.  The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued new guidance that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset.  In August 2015, the FASB issued an additional update which clarifies that debt issuance costs for line of credit agreements may continue to be deferred and amortized.  This accounting guidance will be effective for us on April 1, 2016.   The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued new guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement.  While similar guidance exists under current US GAAP for cloud service providers, this update provides explicit guidance for a customer's accounting.  This accounting guidance will be effective for us on April 1, 2016.   The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In May 2015, the FASB issued new guidance that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient.  This accounting guidance is limited to footnote disclosure and will be effective for us on April 1, 2016.   The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In May 2015, the FASB issued new guidance that requires additional disclosures related to short-duration insurance contracts.  This accounting guidance will be effective for us for the annual period beginning April 1, 2016 and for interim periods within annual periods beginning April 1, 2017.   We are currently evaluating the potential impact of this guidance on our consolidated financial statements.

Recently Adopted Accounting Guidance

Recently Adopted Accounting Guidance

In April 2015, new FASB accounting guidance became effective that amends the requirements for the reporting of discontinued operations and requires certain additional disclosures. Under the new guidance, only disposals that represent a strategic shift and that have (or will have) a major effect on an entity’s operations and financial results should be presented as discontinued operations.  This guidance was adopted by us in August 2015 when we reclassified certain assets and liabilities related to our commercial finance business as held-for-sale.  As the sale of our commercial finance business did not represent a strategic shift that will have a major effect on our operations and financial results, it did not meet the criteria to be presented as a discontinued operation.  Our adoption of this guidance did not have a material impact on our consolidated financial statements.

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Finance Receivables, Net (Finance Receivable Credit Quality Indicators) (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Current	$ 64,791	$ 65,939
Financing receivables, past due	862	628
Total Finance Receivables	65,653	66,567
Retail Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Current	50,621	49,684
Financing receivables, past due	862	618
Total Finance Receivables	51,483	50,302
Commercial Finance [Member]
Financing Receivable, Recorded Investment [Line Items]
Current	0	511
Financing receivables, past due		10
Total Finance Receivables	0	521
Wholesale [Member]
Financing Receivable, Recorded Investment [Line Items]
Current	7,792	9,226
Financing receivables, past due	0	0
Total Finance Receivables	7,792	9,226
Wholesale [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	6,913	7,993
Wholesale [Member] | Credit Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	794	1,137
Wholesale [Member] | At Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	67	60
Wholesale [Member] | Default [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	18	36
Real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Current	4,613	4,665
Financing receivables, past due	0	0
Total Finance Receivables	4,613	4,665
Real estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	3,861	3,782
Real estate [Member] | Credit Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	676	842
Real estate [Member] | At Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	31	37
Real estate [Member] | Default [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	45	4
Working capital [Member]
Financing Receivable, Recorded Investment [Line Items]
Current	1,765	1,853
Financing receivables, past due	0	0
Total Finance Receivables	1,765	1,853
Working capital [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	1,564	1,643
Working capital [Member] | Credit Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	166	176
Working capital [Member] | At Risk [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	30	32
Working capital [Member] | Default [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Finance Receivables	5	2
30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	631	475
30-59 Days Past Due [Member] | Retail Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	631	467
30-59 Days Past Due [Member] | Commercial Finance [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	0	8
30-59 Days Past Due [Member] | Wholesale [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	0	0
30-59 Days Past Due [Member] | Real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	0	0
30-59 Days Past Due [Member] | Working capital [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	0	0
60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	154	102
60-89 Days Past Due [Member] | Retail Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	154	100
60-89 Days Past Due [Member] | Commercial Finance [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	0	2
60-89 Days Past Due [Member] | Wholesale [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	0	0
60-89 Days Past Due [Member] | Real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	0	0
60-89 Days Past Due [Member] | Working capital [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	0	0
90 Days or Greater Past Due [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	77	51
90 Days or Greater Past Due [Member] | Retail Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	77	51
90 Days or Greater Past Due [Member] | Commercial Finance [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	0	0
90 Days or Greater Past Due [Member] | Wholesale [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	0	0
90 Days or Greater Past Due [Member] | Real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	0	0
90 Days or Greater Past Due [Member] | Working capital [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivables, past due	$ 0	$ 0

XML

Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value	$ 124	$ 169	$ 111	$ 162
Total gains (losses) included in earnings	(21)	(26)	6	(12)
Total gains (losses) included in other comprehensive income			(1)	1
Purchases	0	17	0	21
Issuances	0	0	0	0
Sales	0	(8)	(3)	(10)
Settlements	(3)	(3)	(9)	(13)
Transfers in to Level 3	0	0	0	0
Transfers out of Level 3	0	0	(4)	0
Fair value	100	149	100	149
The amount of total (losses) included in earnings attributable to assets held at the reporting date	(21)	(26)	6	(12)
Available-for-sale securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value	93	88	103	89
Total gains (losses) included in other comprehensive income			(1)	1
Purchases	0	17	0	21
Issuances	0	0	0	0
Sales	0	(8)	(3)	(10)
Settlements	(2)	(3)	(4)	(7)
Transfers in to Level 3	0	0	0	0
Transfers out of Level 3	0	0	(4)	0
Fair value	91	94	91	94
Available-for-sale securities [Member] | U.S. government and agency obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value	2	2	2	2
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Transfers in to Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Fair value	2	2	2	2
Available-for-sale securities [Member] | Corporate debt securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value	8	12	14	12
Purchases	0	3	0	3
Issuances	0	0	0	0
Sales	0	(3)	(2)	(3)
Settlements	0	0	0	0
Transfers in to Level 3	0	0	0	0
Transfers out of Level 3	0	0	(4)	0
Fair value	8	12	8	12
Available-for-sale securities [Member] | Mortgage-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value	46	45	48	48
Total gains (losses) included in other comprehensive income			(1)	1
Purchases	0	11	0	12
Issuances	0	0	0	0
Sales	0	(5)	0	(7)
Settlements	(1)	(1)	(2)	(4)
Transfers in to Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Fair value	45	50	45	50
Available-for-sale securities [Member] | Asset-backed securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value	37	29	39	27
Purchases	0	3	0	6
Issuances	0	0	0	0
Sales	0	0	(1)	0
Settlements	(1)	(2)	(2)	(3)
Transfers in to Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Fair value	36	30	36	30
Derivative
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value	31	81	8	73
Total gains (losses) included in earnings	(21)	(26)	6	(12)
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	(1)	0	(5)	(6)
Transfers in to Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Fair value	9	55	9	55
The amount of total (losses) included in earnings attributable to assets held at the reporting date	(21)	(26)	6	(12)
Derivative | Interest rate swap [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value	1	3	1	3
Total gains (losses) included in earnings	(1)	(1)	(1)
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	(1)	0	(1)	(1)
Transfers in to Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Fair value	(1)	2	(1)	2
The amount of total (losses) included in earnings attributable to assets held at the reporting date	(1)	(1)	(1)	0
Derivative | Foreign currency swaps [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value	30	78	7	70
Total gains (losses) included in earnings	(20)	(25)	7	(12)
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	(4)	(5)
Transfers in to Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Fair value	10	53	10	53
The amount of total (losses) included in earnings attributable to assets held at the reporting date	$ (20)	$ (25)	$ 7	$ (12)

XML

Consolidated Balance Sheet - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
ASSETS
Cash and cash equivalents	$ 4,958	$ 2,407
Restricted cash and cash equivalents	826	784
Investments in marketable securities	6,410	7,131
Finance receivables, net	65,022	65,893
Investments in operating leases, net	33,741	31,128
Other assets	4,234	2,282
Total assets	115,191	109,625
LIABILITIES AND SHAREHOLDER'S EQUITY
Debt	95,097	90,231
Deferred income taxes	7,733	7,519
Other liabilities	3,503	3,355
Total liabilities	$ 106,333	$ 101,105
Commitments and contingencies (See Note 12)
Shareholder’s equity:
Capital stock, no par value (100,000 shares authorized; 91,500 issued and outstanding) at September 30, 2015 and March 31, 2015	$ 915	$ 915
Additional paid-in capital	2	2
Accumulated other comprehensive income	158	220
Retained earnings	7,783	7,383
Total shareholder's equity	8,858	8,520
Total liabilities and shareholder's equity	$ 115,191	$ 109,625

XML

Interim Financial Data

6 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Interim Financial Data

Note 1 – Interim Financial Data

Basis of Presentation

The information furnished in these unaudited interim financial statements for the three and six months ended September 30, 2015 and 2014 has been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).  In the opinion of management, the unaudited financial information reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented.  The results of operations for the three and six months ended September 30, 2015 do not necessarily indicate the results which may be expected for the full fiscal year ending March 31, 2016 (“fiscal 2016”).

These financial statements should be read in conjunction with the Consolidated Financial Statements, significant accounting policies, and other notes to the Consolidated Financial Statements included in Toyota Motor Credit Corporation’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended March 31, 2015 (“fiscal 2015”), which was filed with the Securities and Exchange Commission on June 2, 2015.  References herein to “TMCC” denote Toyota Motor Credit Corporation, and references herein to “we”, “our”, and “us” denote Toyota Motor Credit Corporation and its consolidated subsidiaries.

Certain prior period amounts have been reclassified to conform to the current period presentation.  Related party transactions presented in the Consolidated Financial Statements are disclosed in Note 14 – Related Party Transactions of the Notes to Consolidated Financial Statements.

Assets Held-for-Sale

As of August 31, 2015, we reclassified certain assets and liabilities related to our industrial equipment retail, lease and dealer portfolios (hereinafter the “commercial finance business” or “disposal group”) to held-for-sale as all of the following criteria were met: management, having the authority to approve the action, committed to a plan to sell the disposal group; the disposal group was available for immediate sale in its present condition subject only to terms that are usual and customary; we located a buyer; the sale of the disposal group was determined to be probable, and transfer of the disposal group was expected to qualify for recognition as a completed sale within one year; the disposal group was actively marketed for sale at a price that was reasonable in relation to its current fair value; and actions required to complete the plan indicate that it was unlikely significant changes to the plan would be made or that the plan would be withdrawn.  

We initially measure a long-lived asset or disposal group that is classified as held-for-sale at the lower of its carrying value or fair value less any costs to sell.  Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met.  Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale.  We assess the fair value of a long-lived asset or disposal group, less any costs to sell, each reporting period it remains classified as held-for-sale.  We report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held-for-sale.

Cash flows associated with the assets held-for-sale are reflected as investing activities within the Consolidated Statement of Cash Flows.  See Note 8 – Other Assets and Other Liabilities of the Notes to Consolidated Financial Statements for additional detail.

Note 1 – Interim Financial Data (Continued)

New Accounting Guidance

In May 2014, the Financial Accounting Standards Board ("FASB") issued new guidance on the recognition of revenue from contracts with customers.  This comprehensive standard will supersede virtually all existing revenue recognition guidance.  This standard applies to all contracts with customers except leases, insurance contracts, financial instruments, guarantees, and certain nonmonetary exchanges.  In August 2015, the FASB issued a one-year deferral of the effective date, with early adoption as of the original effective date permitted.  We expect to adopt the new guidance on its deferred effective date, which is April 1, 2018 for TMCC.  We are currently evaluating the potential impact of this guidance on our consolidated financial statements.  

In February 2015, the FASB issued new guidance that amends the analysis a reporting entity must perform to determine whether it should consolidate certain legal entities.  This accounting guidance is effective for us on April 1, 2016.  The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued new guidance that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset.  In August 2015, the FASB issued an additional update which clarifies that debt issuance costs for line of credit agreements may continue to be deferred and amortized.  This accounting guidance will be effective for us on April 1, 2016.   The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued new guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement.  While similar guidance exists under current US GAAP for cloud service providers, this update provides explicit guidance for a customer's accounting.  This accounting guidance will be effective for us on April 1, 2016.   The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In May 2015, the FASB issued new guidance that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient.  This accounting guidance is limited to footnote disclosure and will be effective for us on April 1, 2016.   The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In May 2015, the FASB issued new guidance that requires additional disclosures related to short-duration insurance contracts.  This accounting guidance will be effective for us for the annual period beginning April 1, 2016 and for interim periods within annual periods beginning April 1, 2017.   We are currently evaluating the potential impact of this guidance on our consolidated financial statements.

Recently Adopted Accounting Guidance

In April 2015, new FASB accounting guidance became effective that amends the requirements for the reporting of discontinued operations and requires certain additional disclosures. Under the new guidance, only disposals that represent a strategic shift and that have (or will have) a major effect on an entity’s operations and financial results should be presented as discontinued operations.  This guidance was adopted by us in August 2015 when we reclassified certain assets and liabilities related to our commercial finance business as held-for-sale.  As the sale of our commercial finance business did not represent a strategic shift that will have a major effect on our operations and financial results, it did not meet the criteria to be presented as a discontinued operation.  Our adoption of this guidance did not have a material impact on our consolidated financial statements.

XML

Derivatives, Hedging Activities and Interest Expense - Derivative Activity Impact on Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Derivatives Fair Value [Line Items]
Carrying value of derivative contracts – Other assets	$ 51	$ 53
Carrying value of derivative contracts – Other liabilities	55	90
Counterparty netting and collateral held	(121)	(145)
Counterparty netting and collateral held	(1,596)	(1,694)
Other Assets [Member]
Derivatives Fair Value [Line Items]
Notional	28,320	27,923
Fair value	756	688
Counterparty netting and collateral held	(705)	(635)
Other Assets [Member] | Interest rate swap [Member]
Derivatives Fair Value [Line Items]
Notional	26,650	26,739
Fair value	555	471
Other Assets [Member] | Foreign currency swaps [Member]
Derivatives Fair Value [Line Items]
Notional	1,670	1,184
Fair value	201	217
Other Liabilities
Derivatives Fair Value [Line Items]
Notional	82,239	78,124
Fair value	2,235	2,274
Counterparty netting and collateral held	(2,180)	(2,184)
Other Liabilities | Interest rate swap [Member]
Derivatives Fair Value [Line Items]
Notional	68,128	64,852
Fair value	514	386
Other Liabilities | Foreign currency swaps [Member]
Derivatives Fair Value [Line Items]
Notional	14,081	13,222
Fair value	1,721	1,888
Other Liabilities | Interest rate cap [Member]
Derivatives Fair Value [Line Items]
Notional	30	50
Fair value	0	0
Hedge accounting derivatives [Member] | Other Assets [Member]
Derivatives Fair Value [Line Items]
Notional	271	461
Fair value	21	28
Hedge accounting derivatives [Member] | Other Assets [Member] | Interest rate swap [Member]
Derivatives Fair Value [Line Items]
Notional	0	190
Fair value	0	4
Hedge accounting derivatives [Member] | Other Assets [Member] | Foreign currency swaps [Member]
Derivatives Fair Value [Line Items]
Notional	271	271
Fair value	21	24
Hedge accounting derivatives [Member] | Other Liabilities
Derivatives Fair Value [Line Items]
Notional	251	251
Fair value	58	43
Hedge accounting derivatives [Member] | Other Liabilities | Interest rate swap [Member]
Derivatives Fair Value [Line Items]
Notional	0	0
Fair value	0	0
Hedge accounting derivatives [Member] | Other Liabilities | Foreign currency swaps [Member]
Derivatives Fair Value [Line Items]
Notional	251	251
Fair value	58	43
Hedge accounting derivatives [Member] | Other Liabilities | Interest rate cap [Member]
Derivatives Fair Value [Line Items]
Notional	0	0
Fair value	0	0
Non-hedge accounting derivatives [Member] | Other Assets [Member]
Derivatives Fair Value [Line Items]
Notional	28,049	27,462
Fair value	735	660
Non-hedge accounting derivatives [Member] | Other Assets [Member] | Interest rate swap [Member]
Derivatives Fair Value [Line Items]
Notional	26,650	26,549
Fair value	555	467
Non-hedge accounting derivatives [Member] | Other Assets [Member] | Foreign currency swaps [Member]
Derivatives Fair Value [Line Items]
Notional	1,399	913
Fair value	180	193
Non-hedge accounting derivatives [Member] | Other Liabilities
Derivatives Fair Value [Line Items]
Notional	81,988	77,873
Fair value	2,177	2,231
Non-hedge accounting derivatives [Member] | Other Liabilities | Interest rate swap [Member]
Derivatives Fair Value [Line Items]
Notional	68,128	64,852
Fair value	514	386
Non-hedge accounting derivatives [Member] | Other Liabilities | Foreign currency swaps [Member]
Derivatives Fair Value [Line Items]
Notional	13,830	12,971
Fair value	1,663	1,845
Non-hedge accounting derivatives [Member] | Other Liabilities | Interest rate cap [Member]
Derivatives Fair Value [Line Items]
Notional	30	50
Fair value	0	0
Carrying value [Member] | Other Assets [Member]
Derivatives Fair Value [Line Items]
Carrying value of derivative contracts – Other assets	51	53
Carrying value [Member] | Other Liabilities
Derivatives Fair Value [Line Items]
Carrying value of derivative contracts – Other liabilities	$ 55	$ 90

XML

Commitments and Contingencies - Future Minimum Lease Payments under Non-cancelable Operating Leases (Details) - USD ($) $ in Millions	Sep. 30, 2015	Mar. 31, 2015
Future minimum lease payments under non-cancelable operating leases
2016	$ 10
2017	21
2018	16
2019	8
2020	3
Thereafter	2
Total	$ 60	$ 60

XML

Fair Value Measurements (Tables)

6 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value On a Recurring Basis

The following tables summarize our financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy.

	As of September 30, 2015
									Counterparty
									netting &			Fair
	Level 1		Level 2			Level 3			collateral			value
Cash equivalents:
Money market instruments	$	800	$	957		$	-		$	-		$	1,757
Certificates of deposit		-		2,750			-			-			2,750
Commercial paper		-		20			-			-			20
Corporate debt securities		-		39			-			-			39
Cash equivalents total		800		3,766			-			-			4,566
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations		3,284		72			2			-			3,358
Municipal debt securities		-		11			-			-			11
Certificates of deposit		400		-			-			-			400
Commercial paper		-		124			-			-			124
Corporate debt securities		10		213			8			-			231
Mortgage-backed securities:
U.S. government agency		-		52			-			-			52
Non-agency residential		-		-			4			-			4
Non-agency commercial		-		-			41			-			41
Asset-backed securities		-		-			36			-			36
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		-		53			-			-			53
U.S. government sector fund		-		324			-			-			324
Municipal sector fund		-		20			-			-			20
Investment grade corporate sector fund		-		264			-			-			264
High-yield sector fund		-		101			-			-			101
Real return sector fund		-		225			-			-			225
Mortgage sector fund		-		430			-			-			430
Asset-backed securities sector fund		-		73			-			-			73
Emerging market sector fund		-		119			-			-			119
International sector fund		-		150			-			-			150
Equity mutual fund		394		-			-			-			394
Available-for-sale securities total		4,088		2,231			91			-			6,410
Derivative assets:
Foreign currency swaps		-		191			10			-			201
Interest rate swaps		-		554			1			-			555
Counterparty netting and collateral		-		-			-			(705	)		(705	)
Derivative assets total		-		745			11			(705	)		51
Assets at fair value		4,888		6,742			102			(705	)		11,027
Derivative liabilities:
Foreign currency swaps		-		(1,721	)		-			-			(1,721	)
Interest rate swaps		-		(512	)		(2	)		-			(514	)
Counterparty netting and collateral		-		-			-			2,180			2,180
Liabilities at fair value		-		(2,233	)		(2	)		2,180			(55	)
Net assets at fair value	$	4,888	$	4,509		$	100		$	1,475		$	10,972

	As of March 31, 2015
								Counterparty
								netting &			Fair
	Level 1		Level 2			Level 3		collateral			value
Cash equivalents:
Money market instruments	$	249	$	820		$	-	$	-		$	1,069
U.S. government and agency obligations		40		-			-		-			40
Certificates of deposit		-		1,105			-		-			1,105
Cash equivalents total		289		1,925			-		-			2,214
Available-for-sale securities:
Debt instruments:
U.S. government and agency obligations		4,215		142			2		-			4,359
Municipal debt securities		-		12			-		-			12
Certificates of deposit		-		175			-		-			175
Commercial paper		37		-			-		-			37
Corporate debt securities		-		131			14		-			145
Mortgage-backed securities:
U.S. government agency		-		59			-		-			59
Non-agency residential		-		-			4		-			4
Non-agency commercial		-		-			44		-			44
Asset-backed securities		-		-			39		-			39
Equity instruments:
Fixed income mutual funds:
Short-term floating NAV fund II		-		148			-		-			148
Short-term sector fund		-		37			-		-			37
U.S. government sector fund		-		335			-		-			335
Municipal sector fund		-		20			-		-			20
Investment grade corporate sector fund		-		268			-		-			268
High-yield sector fund		-		55			-		-			55
Real return sector fund		-		232			-		-			232
Mortgage sector fund		-		399			-		-			399
Asset-backed securities sector fund		-		72			-		-			72
Emerging market sector fund		-		71			-		-			71
International sector fund		-		160			-		-			160
Equity mutual fund		460		-			-		-			460
Available-for-sale securities total		4,712		2,316			103		-			7,131
Derivative assets:
Foreign currency swaps		-		210			7		-			217
Interest rate swaps		-		470			1		-			471
Counterparty netting and collateral		-		-			-		(635	)		(635	)
Derivative assets total		-		680			8		(635	)		53
Assets at fair value		5,001		4,921			111		(635	)		9,398
Derivative liabilities:
Foreign currency swaps		-		(1,888	)		-		-			(1,888	)
Interest rate swaps		-		(386	)		-		-			(386	)
Counterparty netting and collateral		-		-			-		2,184			2,184
Liabilities at fair value		-		(2,274	)		-		2,184			(90	)
Net assets at fair value	$	5,001	$	2,647		$	111	$	1,549		$	9,308

Assets and Liabilities Measured on Recurring Basis Using Significant Unobservable Inputs

The following tables summarize the reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs:

	Three Months Ended September 30, 2015
																							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			assets
	obligations		securities		securities			securities			securities			swaps			swaps			(liabilities)
Fair value, July 1, 2015	$	2	$	8	$	46		$	37		$	93		$	1		$	30		$	31		$	124
Total gains (losses)
Included in earnings		-		-		-			-			-			(1	)		(20	)		(21	)		(21	)
Included in other comprehensive income		-		-		-			-			-			-			-			-			-
Purchases, issuances, sales, and settlements
Purchases		-		-		-			-			-			-			-			-			-
Issuances		-		-		-			-			-			-			-			-			-
Sales		-		-		-			-			-			-			-			-			-
Settlements		-		-		(1	)		(1	)		(2	)		(1	)		-			(1	)		(3	)
Transfers in to Level 3		-		-		-			-			-			-			-			-			-
Transfers out of Level 3		-		-		-			-			-			-			-			-			-
Fair value, September 30, 2015	$	2	$	8	$	45		$	36		$	91		$	(1	)	$	10		$	9		$	100
The amount of total (losses)   included in earnings   attributable to assets held   at the reporting date														$	(1	)	$	(20	)		(21	)		(21	)

	Three Months Ended September 30, 2014
																								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			assets
(Dollars in millions)	obligations		securities			securities			securities			securities			swaps			swaps			(liabilities)
Fair value, July 1, 2014	$	2	$	12		$	45		$	29		$	88		$	3		$	78		$	81		$	169
Total gains (losses)
Included in earnings		-		-			-			-			-			(1	)		(25	)		(26	)		(26	)
Included in other comprehensive income		-		-			-			-			-			-			-			-			-
Purchases, issuances, sales, and settlements
Purchases		-		3			11			3			17			-			-			-			17
Issuances		-		-			-			-			-			-			-			-			-
Sales		-		(3	)		(5	)		-			(8	)		-			-			-			(8	)
Settlements		-		-			(1	)		(2	)		(3	)		-			-			-			(3	)
Transfers in to Level 3		-		-			-			-			-			-			-			-			-
Transfers out of Level 3		-		-			-			-			-			-			-			-			-
Fair value, September 30, 2014	$	2	$	12		$	50		$	30		$	94		$	2		$	53		$	55		$	149
The amount of total (losses)   included in earnings   attributable to assets held   at the reporting date															$	(1	)	$	(25	)	$	(26	)	$	(26	)

	Six Months Ended September 30, 2015
																								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			assets
	obligations		securities			securities			securities			securities			swaps			swaps			(liabilities)
Fair value, April 1, 2015	$	2	$	14		$	48		$	39		$	103		$	1		$	7		$	8		$	111
Total gains (losses)
Included in earnings		-		-			-			-			-			(1	)		7			6			6
Included in other comprehensive income		-		-			(1	)		-			(1	)		-			-			-			(1	)
Purchases, issuances, sales, and settlements																-			-
Purchases		-		-			-			-			-			-			-			-			-
Issuances		-		-			-			-			-			-			-			-			-
Sales		-		(2	)		-			(1	)		(3	)		-			-			-			(3	)
Settlements		-		-			(2	)		(2	)		(4	)		(1	)		(4	)		(5	)		(9	)
Transfers in to Level 3		-		-			-			-			-			-			-			-			-
Transfers out of Level 3		-		(4	)		-			-			(4	)		-			-			-			(4	)
Fair value, September 30, 2015	$	2	$	8		$	45		$	36		$	91		$	(1	)	$	10		$	9		$	100
The amount of total (losses) gains   included in earnings   attributable to assets held   at the reporting date															$	(1	)	$	7		$	6		$	6

	Six Months Ended September 30, 2014
																								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			assets
(Dollars in millions)	obligations		securities			securities			securities			securities			swaps			swaps			(liabilities)
Fair value, April 1, 2014	$	2	$	12		$	48		$	27		$	89		$	3		$	70		$	73		$	162
Total gains (losses)
Included in earnings		-		-			-			-			-			-			(12	)		(12	)		(12	)
Included in other comprehensive income		-		-			1			-			1			-			-			-			1
Purchases, issuances, sales, and settlements
Purchases		-		3			12			6			21			-			-			-			21
Issuances		-		-			-			-			-			-			-			-			-
Sales		-		(3	)		(7	)		-			(10	)		-			-			-			(10	)
Settlements		-		-			(4	)		(3	)		(7	)		(1	)		(5	)		(6	)		(13	)
Transfers in to Level 3		-		-			-			-			-			-			-			-			-
Transfers out of Level 3		-		-			-			-			-			-			-			-			-
Fair value, September 30, 2014	$	2	$	12		$	50		$	30		$	94		$	2		$	53		$	55		$	149
The amount of total (losses)   included in earnings   attributable to assets held   at the reporting date															$	-		$	(12	)	$	(12	)	$	(12	)

Financial Assets and Liabilities Not Carried at Fair Value on Recurring Basis in Consolidated Balance Sheet

The following tables provide information about assets and liabilities not carried at fair value on a recurring basis in our Consolidated Balance Sheet:

			As of September 30, 2015
	Carrying								Total Fair
	value		Level 1		Level 2		Level 3		Value
Financial assets
Finance receivables, net
Retail loan	$	50,942	$	-	$	-	$	50,776	$	50,776
Wholesale		7,715		-		-		7,766		7,766
Real estate		4,513		-		-		4,342		4,342
Working capital		1,715		-		-		1,682		1,682
Other assets
Finance receivables, held-for-sale	$	755	$	-	$	-	$	756	$	756
Financial liabilities
Commercial paper	$	27,558	$	-	$	27,558	$	-	$	27,558
Unsecured notes and loans payable		54,275		-		54,138		1,353		55,491
Secured notes and loans payable		13,264		-		-		13,246		13,246

			As of March 31, 2015
	Carrying								Total Fair
	value		Level 1		Level 2		Level 3		Value
Financial assets
Finance receivables, net
Retail loan	$	49,734	$	-	$	-	$	49,887	$	49,887
Commercial		217		-		-		223		223
Wholesale		9,123		-		-		9,176		9,176
Real estate		4,602		-		-		4,564		4,564
Working capital		1,815		-		-		1,804		1,804
Financial liabilities
Commercial paper	$	27,006	$	-	$	27,006	$	-	$	27,006
Unsecured notes and loans payable		52,388		-		53,174		634		53,808
Secured notes and loans payable		10,837		-		-		10,832		10,832

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Segment Information - Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Segment Reporting Information [Line Items]
Total financing revenues	$ 2,353	$ 2,057	$ 4,608	$ 4,017
Insurance earned premiums and contract revenues	178	160	352	313
Investment and other income, net	14	60	52	95
Total gross revenues	2,545	2,277	5,012	4,425
Depreciation on operating leases	1,446	1,196	2,806	2,296
Interest expense	203	215	711	345
Provision for credit losses	105	79	150	117
Operating and administrative expenses	287	253	557	486
Insurance losses and loss adjustment expenses	78	67	157	137
Provision for income taxes	161	176	231	389
Net income	265	291	400	655
Total assets	115,191	106,015	115,191	106,015	$ 109,625
Intercompany Eliminations [Member]
Segment Reporting Information [Line Items]
Total financing revenues	0	0	0	0
Insurance earned premiums and contract revenues	0	0	0	0
Investment and other income, net	0	0	0	0
Total gross revenues	0	0	0	0
Depreciation on operating leases	0	0	0	0
Interest expense	0	0	0	0
Provision for credit losses	0	0	0	0
Operating and administrative expenses	0	0	0	0
Insurance losses and loss adjustment expenses	0	0	0	0
Provision for income taxes	0	0	0	0
Net income	0	0	0	0
Total assets	(1,021)	(894)	(1,021)	(894)
Finance Operations [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total financing revenues	2,353	2,057	4,608	4,017
Insurance earned premiums and contract revenues	0	0	0	0
Investment and other income, net	22	27	43	47
Total gross revenues	2,375	2,084	4,651	4,064
Depreciation on operating leases	1,446	1,196	2,806	2,296
Interest expense	203	215	711	345
Provision for credit losses	105	79	150	117
Operating and administrative expenses	225	200	434	380
Insurance losses and loss adjustment expenses	0	0	0	0
Provision for income taxes	150	149	201	345
Net income	246	245	349	581
Total assets	112,166	103,307	112,166	103,307
Insurance Operations [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total financing revenues	0	0	0	0
Insurance earned premiums and contract revenues	178	160	352	313
Investment and other income, net	(8)	33	9	48
Total gross revenues	170	193	361	361
Depreciation on operating leases	0	0	0	0
Interest expense	0	0	0	0
Provision for credit losses	0	0	0	0
Operating and administrative expenses	62	53	123	106
Insurance losses and loss adjustment expenses	78	67	157	137
Provision for income taxes	11	27	30	44
Net income	19	46	51	74
Total assets	$ 4,046	$ 3,602	$ 4,046	$ 3,602

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Segment Information (Tables)

6 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Financial information for our reportable operating segments is summarized as follows (dollars in millions):

	Three Months Ended September 30, 2015
	Finance		Insurance			Intercompany
	operations		operations			eliminations			Total
Total financing revenues	$	2,353	$	-		$	-		$	2,353
Insurance earned premiums and contract revenues		-		178			-			178
Investment and other income, net		22		(8	)		-			14
Total gross revenues		2,375		170			-			2,545
Less:
Depreciation on operating leases		1,446		-			-			1,446
Interest expense		203		-			-			203
Provision for credit losses		105		-			-			105
Operating and administrative expenses		225		62			-			287
Insurance losses and loss adjustment expenses		-		78			-			78
Provision for income taxes		150		11			-			161
Net income	$	246	$	19		$	-		$	265
	Six Months Ended September 30, 2015
	Finance		Insurance			Intercompany
	operations		operations			eliminations			Total
Total financing revenues	$	4,608	$	-		$	-		$	4,608
Insurance earned premiums and contract revenues		-		352			-			352
Investment and other income, net		43		9			-			52
Total gross revenues		4,651		361			-			5,012
Less:
Depreciation on operating leases		2,806		-			-			2,806
Interest expense		711		-			-			711
Provision for credit losses		150		-			-			150
Operating and administrative expenses		434		123			-			557
Insurance losses and loss adjustment expenses		-		157			-			157
Provision for income taxes		201		30			-			231
Net income	$	349	$	51		$	-		$	400
Total assets at September 30, 2015	$	112,166	$	4,046		$	(1,021	)	$	115,191

Note 15 – Segment Information (Continued)

	Three Months Ended September 30, 2014
	Finance		Insurance		Intercompany
	operations		operations		eliminations			Total
Total financing revenues	$	2,057	$	-	$	-		$	2,057
Insurance earned premiums and contract revenues		-		160		-			160
Investment and other income, net		27		33		-			60
Total gross revenues		2,084		193		-			2,277
Less:
Depreciation on operating leases		1,196		-		-			1,196
Interest expense		215		-		-			215
Provision for credit losses		79		-		-			79
Operating and administrative expenses		200		53		-			253
Insurance losses and loss adjustment expenses		-		67		-			67
Provision for income taxes		149		27		-			176
Net income	$	245	$	46	$	-		$	291
	Six Months Ended September 30, 2014
	Finance		Insurance		Intercompany
	operations		operations		eliminations			Total
Total financing revenues	$	4,017	$	-	$	-		$	4,017
Insurance earned premiums and contract revenues		-		313		-			313
Investment and other income, net		47		48		-			95
Total gross revenues		4,064		361		-			4,425
Less:
Depreciation on operating leases		2,296		-		-			2,296
Interest expense		345		-		-			345
Provision for credit losses		117		-		-			117
Operating and administrative expenses		380		106		-			486
Insurance losses and loss adjustment expenses		-		137		-			137
Provision for income taxes		345		44		-			389
Net income	$	581	$	74	$	-		$	655
Total assets at September 30, 2014	$	103,307	$	3,602	$	(894	)	$	106,015

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Liquidity Facilities and Letters of Credit

6 Months Ended

Sep. 30, 2015

Line Of Credit Facility [Abstract]

Liquidity Facilities and Letters of Credit

Note 11 – Liquidity Facilities and Letters of Credit

For additional liquidity purposes, we maintain syndicated bank credit facilities with certain banks.

364 Day Credit Agreement, Three Year Credit Agreement and Five Year Credit Agreement

In November 2014, TMCC, Toyota Credit de Puerto Rico Corp. (“TCPR”) and other Toyota affiliates entered into a $5.0 billion 364 day syndicated bank credit facility, a $5.0 billion three year syndicated bank credit facility and a $5.0 billion five year syndicated bank credit facility, expiring in fiscal 2016, 2018, and 2020, respectively.

The ability to make draws is subject to covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets.  These agreements may be used for general corporate purposes and none were drawn upon as of September 30, 2015 and March 31, 2015.  We are in compliance with the covenants and conditions of the credit agreements described above.

Other Unsecured Credit Agreements

TMCC has entered into additional unsecured credit facilities with various banks.  As of September 30, 2015, TMCC had committed bank credit facilities totaling $5.5 billion of which $1.9 billion, $850 million, $1.9 billion, $450 million and $375 million mature in fiscal 2016, 2017, 2018, 2019 and 2020, respectively.

These credit agreements contain covenants and conditions customary in transactions of this nature, including negative pledge provisions, cross-default provisions and limitations on certain consolidations, mergers and sales of assets.  These credit facilities were not drawn upon as of September 30, 2015 and March 31, 2015. We are in compliance with the covenants and conditions of the credit agreements described above.