v3.25.2
Investment in Operating Leases
 12 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Investment in Operating Leases Investment in Operating Leases
Investment in operating leases consisted of the following:
March 31,
20252024
(U.S. dollars in millions)
Operating lease vehicles (1)
$37,647 $34,840 
Accumulated depreciation(5,770)(6,616)
Deferred dealer participation and initial direct costs123 103 
Unearned subsidy income(1,291)(854)
Estimated early termination losses(113)(95)
Investment in operating leases, net$30,596 $27,378 
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(1)     Net of investment tax credits. Refer to Note 7 for additional information.

Operating lease revenue consisted of the following:
Years ended March 31,
202520242023
(U.S. dollars in millions)
Lease payments$5,740 $5,539 $5,976 
Subsidy income and dealer rate participation, net651 507 561 
Reimbursed lessor costs 59 53 63 
Total operating lease revenue, net$6,450 $6,099 $6,600 
Leased vehicle expenses consisted of the following:
Years ended March 31,
202520242023
(U.S. dollars in millions)
Depreciation expense$4,348 $4,343 $4,872 
Initial direct costs and other lessor costs126 119 134 
Gain on disposition of leased vehicles (1)
(84)(122)(115)
Total leased vehicle expenses, net$4,390 $4,340 $4,891 
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(1)     Included in the gain on disposition of leased vehicles are end of term charges of $8 million, $6 million, and $2 million for the fiscal years ended March 31, 2025, 2024 and 2023, respectively.
Contractual operating lease payments due as of March 31, 2025 are summarized below. Based on the Company's experience, it is expected that a portion of the Company's operating leases will terminate prior to the scheduled lease term. The summary below should not be regarded as a forecast of future cash collections.
Year ending March 31,
(U.S. dollars in millions)

2026$5,522 
20274,051 
20281,740 
2029288 
203048 
Total$11,649 
The Company recognized early termination losses on operating leases of $136 million, $100 million, and $38 million for the fiscal years ended March 31, 2025, 2024 and 2023, respectively. Net realized losses for the fiscal years ended March 31, 2025, 2024 and 2023 totaled $118 million, $82 million, and $43 million, respectively.
The general allowance for uncollectible operating lease receivables was recorded through a reduction to revenue of $28 million, $16 million, and $4 million for the fiscal years ended March 31, 2025, 2024 and 2023, respectively.
No impairment losses due to declines in estimated residual values were recognized during the fiscal years ended March 31, 2025 and 2024.