Related Party Transactions

9 Months Ended

Dec. 31, 2021

Note 11 – Related Party Transactions

In April 2021, TMCC increased financing support available to Toyota Finance New Zealand Limited to $250 million. In July 2021, TMCC entered into a services agreement with Toyota Financial Savings Bank (“TFSB”) to subservice loans on their behalf. In August 2021, TMCC increased financing support available to TFSB to $1.0 billion and entered into a financing support agreement with Toyota Finance Corporation (“TFC”) for $100 million. In November 2021, in accordance with the financing support agreement and for general corporate purposes, TFC borrowed from TMCC in Japanese Yen a principal amount equivalent to $100 million with an interest rate of 0.0175% and repayment date of November 2023.

Except for the transactions mentioned above, as of December 31, 2021, there were no material changes to our related party agreements or relationships as described in our fiscal 2021 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,
	2021			2020			2021			2020
Net financing revenues:
Manufacturer's subvention and other revenues	$	425		$	503		$	1,361		$	1,504
Depreciation on operating leases	$	(14	)	$	(33	)	$	(67	)	$	(82	)

Interest expense:
Credit support fees, interest and other expenses	$	25		$	26		$	76		$	93

Voluntary protection contract revenues and insurance earned premiums:
Voluntary protection contract revenues and insurance earned premiums	$	42		$	43		$	127		$	130

Investment and other income, net:
Interest and other income	$	1		$	3		$	6		$	16

Expenses:
Operating and administrative expenses	$	19		$	20		$	62		$	63

Note 11 – Related Party Transactions (Continued)

	December 31,			March 31,
	2021			2021
Assets:
Cash and cash equivalents
Commercial paper	$	25		$	6

Investments in marketable securities
Commercial paper	$	25		$	196

Finance receivables, net
Accounts receivable	$	88		$	140
Deferred retail subvention income	$	(932	)	$	(1,156	)

Investments in operating leases, net
Investments in operating leases, net	$	(217	)	$	(236	)
Deferred lease subvention income	$	(1,120	)	$	(1,528	)

Other assets
Notes receivable	$	768		$	869
Other receivables, net	$	80		$	83

Liabilities:
Other liabilities
Unearned voluntary protection contract revenues and insurance earned premiums	$	376		$	352
Other payables, net	$	383		$	306
Notes payable	$	36		$	19

TMCC receives subvention payments from TMNA which results in a gross monthly subvention receivable. As of December 31, 2021 and March 31, 2021, the subvention receivable from TMNA was $56 million and $184 million, respectively. 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, 2021 and March 31, 2021, respectively, we had a net amount payable to TMNA which is recorded in Other payables, net in Other liabilities.