Related Party Transactions

9 Months Ended

Dec. 31, 2019

Note 11 – Related Party Transactions

In conjunction with the April 1, 2019 adoption of ASU 2016-02, Leases, as described in Note 1 – Interim Financial Data, we recorded ROU assets and lease liabilities, which include amounts for facility leases with affiliates. As of December 31, 2019, the amounts for both affiliate related ROU assets and lease liabilities were $77 million.

Except for the transaction mentioned above, as of December 31, 2019, there were no other material changes to our related party agreements or relationships as described in our fiscal 2019 Form 10-K. The tables below show the financial statement line items and amounts included in our Consolidated Statements of Income and in our Consolidated Balance Sheets under various related party agreements or relationships:

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2019			2018			2019			2018
Net financing revenues:
Manufacturer's subvention and other revenues	$	526		$	502		$	1,546		$	1,436
Depreciation on operating leases	$	(16	)	$	(6	)	$	(39	)	$	(16	)

Interest expense:
Credit support fees, interest and other expenses	$	24		$	24		$	72		$	73

Insurance earned premiums and contract revenues:
Insurance premiums and contract revenues	$	46		$	46		$	136		$	135

Investment and other income, net:
Interest and other income	$	7		$	4		$	19		$	8

Expenses:
Operating and administrative expenses	$	29		$	24		$	65		$	71
Insurance losses and loss adjustment expenses¹	$	-		$	-		$	-		$	(3	)

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

Note 11 – Related Party Transactions (Continued)

	December 31,			March 31,
	2019			2019
Assets:
Cash and cash equivalents
Commercial paper	$	105		$	-

Investments in marketable securities
Commercial paper	$	350		$	70

Finance receivables, net
Accounts receivable	$	116		$	150
Deferred retail subvention income	$	(1,155	)	$	(1,257	)

Investments in operating leases, net
Investments in operating leases, net	$	(84	)	$	1
Deferred lease subvention income	$	(2,086	)	$	(2,062	)

Other assets
Notes receivable	$	782		$	601
Other receivables, net	$	133		$	11

Liabilities:
Other liabilities
Unearned affiliate insurance premiums and contract revenues	$	348		$	337
Other payables, net	$	138		$	147
Notes payable	$	58		$	16

TMCC receives subvention payments from TMNA which results in a gross monthly subvention receivable. As of December 31, 2019 and March 31, 2019, the subvention receivable from TMNA was $171 million. We have a master netting agreement with TMNA which allows us to net settle payments for shared services and subvention transactions. Under this agreement, as of December 31, 2019, we had a net amount receivable from TMNA, which resulted in the subvention receivable being recorded in Other receivables, net in Other assets. As of March 31, 2019, we had a net amount payable to TMNA, which resulted in the subvention receivable being recorded in Other payables, net in Other liabilities.