Note 14 – Related Party Transactions

As of September 30, 2017, there were no material changes to our related party agreements or relationships as described in our fiscal 2017 Form 10-K. The tables below summarize amounts included in our Consolidated Statements of Income and in our Consolidated Balance Sheets under various related party agreements or relationships:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2017		2016		2017			2016
Total financing revenues:
Manufacturers’ subvention and other revenues	$	382	$	334	$	750		$	670

Interest expense:
Credit support fees incurred	$	24	$	23	$	47		$	46
Interest and other expenses	$	-	$	-	$	1		$	1

Insurance earned premiums and contract revenues:
Insurance premiums and contract revenues	$	45	$	35	$	89		$	69

Investment and other income, net:
Interest and other income	$	3	$	3	$	7		$	5

Expenses:
Operating and administrative	$	23	$	17	$	42		$	34
Insurance losses and loss adjustment expenses¹	$	1	$	-	$	(4	)	$	1

¹	Amount includes the transfer of insurance losses and loss adjustment expenses from the purchase of a reinsurance contract.

Note 14 – Related Party Transactions (Continued)

	September 30,			March 31,
	2017			2017
Assets:
Investments in marketable securities
Investments in commercial paper	$	5		$	-

Finance receivables, net
Accounts receivable	$	133		$	138
Deferred retail subvention income	$	(1,095	)	$	(967	)

Investments in operating leases, net
Investments in operating leases, net	$	6		$	4
Deferred lease subvention income	$	(1,428	)	$	(1,174	)

Other assets
Notes receivable	$	591		$	823
Other receivables, net	$	243		$	202

Liabilities:
Other liabilities
Unearned affiliate insurance premiums and contract revenues	$	330		$	332
Other payables, net	$	59		$	74
Notes payable	$	24		$	13

TMCC receives subvention payments from TMS which results in a gross monthly subvention receivable. As of September 30, 2017 and March 31, 2017, the subvention receivable from TMS was $227 million and $165 million, respectively. The subvention receivable is recorded in Other receivables, net in Other assets as of September 30, 2017 and March 31, 2017. We have a master netting agreement with TMS and TMNA which allows us to net settle payments for shared services and subvention transactions.