v3.25.2
Segment and Geographic Information
 12 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
The Company’s reportable segments are based on the two geographic regions where the Company operates: the United States and Canada. The Company provides financing to purchasers, lessees and authorized independent dealers of Honda and Acura products. The financing products and services offered throughout the United States and Canada are substantially similar.
The Company's chief operating decision maker (CODM) is the President of AHFC. The measure of segment profit or loss the CODM uses to assess segment performance and allocate resources is income before income taxes and the effect of valuation adjustments on derivative instruments and revaluations of foreign currency denominated debt. Since the Company does not elect to apply hedge accounting, the impact to earnings resulting from these valuation adjustments as reported under GAAP is not representative of segment performance as evaluated by the CODM. Realized gains and losses on derivative instruments, net of realized gains and losses on foreign currency denominated debt, are included in the measure of segment profit or loss when evaluating segment performance. No adjustments are made to segment performance to allocate any revenues or expenses. Segment revenues from the various financing products are reported on the same basis as GAAP consolidated results. The CODM uses segment profit and loss to assess forecast to actual variances, monitor trends, and make strategic operating decisions.
Financial information for the Company’s reportable segments for the fiscal years ended or at March 31 is summarized in the following tables:
United
States		Canada
Total
 (U.S. dollars in millions)
Year ended March 31, 2025
Revenues:
Retail$2,474 $274 $2,748 
Dealer268 23 291 
Operating leases5,634 816 6,450 
Total revenues8,376 1,113 9,489 
Leased vehicle expenses3,783 607 4,390 
Interest expense2,209 236 2,445 
Realized (gains)/losses on derivatives and foreign
currency denominated debt		141 (12)129 
Net revenues2,243 282 2,525 
Other income, net141 18 159 
Total net revenues2,384 300 2,684 
Expenses:
General and administrative expenses542 55 597 
Provision for credit losses293 13 306 
Early termination loss on operating leases135 1 136 
Income before income taxes and valuation
adjustments		$1,414 $231 $1,645 
Reconciliation to consolidated income before income taxes:
Gain/(loss) on derivative instruments(172)
Gain/(loss) on foreign currency revaluation of debt(10)
Less: Realized (gains)/losses included in segment profit129 
Consolidated income before income taxes$1,592 
Income tax expense$365 $50 $415 
March 31, 2025
Finance receivables, net$47,493 $5,023 $52,516 
Investment in operating leases, net27,316 3,280 30,596 
Total assets80,254 8,715 88,969 
United
States		Canada
Total
(U.S. dollars in millions)
Year ended March 31, 2024
Revenues:
Retail$1,855 $221 $2,076 
Dealer206 24 230 
Operating leases5,192 907 6,099 
Total revenues7,253 1,152 8,405 
Leased vehicle expenses3,641 699 4,340 
Interest expense1,464 239 1,703 
Realized (gains)/losses on derivatives and foreign
 currency denominated debt		(81)(60)(141)
Net revenues2,229 274 2,503 
Other income, net110 18 128 
Total net revenues2,339 292 2,631 
Expenses:
General and administrative expenses503 54 557 
Provision for credit losses290 11 301 
Early termination loss on operating leases98 2 100 
Income before income taxes and valuation
adjustments		$1,448 $225 $1,673 
Reconciliation to consolidated income before income taxes:
Gain/(loss) on derivative instruments(19)
Gain/(loss) on foreign currency revaluation of debt25 
Less: Realized (gains)/losses included in segment profit(141)
Consolidated income before income taxes$1,538 
Income tax expense$385 $54 $439 
March 31, 2024
Finance receivables, net$42,419 $4,829 $47,248 
Investment in operating leases, net23,805 3,573 27,378 
Total assets69,722 8,747 78,469 
United
States		Canada
Total
(U.S. dollars in millions)
Year ended March 31, 2023
Revenues:
Retail$1,299 $169 $1,468 
Dealer104 12 116 
Operating leases5,535 1,065 6,600 
Total revenues6,938 1,246 8,184 
Leased vehicle expenses4,059 832 4,891 
Interest expense723 164 887 
Realized (gains)/losses on derivatives and foreign
currency denominated debt		(92)(42)(134)
Net revenues2,248 292 2,540 
Other income, net77 15 92 
Total net revenues2,325 307 2,632 
Expenses:
General and administrative expenses430 55 485 
Provision for credit losses138 8 146 
Early termination loss on operating leases38 — 38 
Income before income taxes and valuation
adjustments		$1,719 $244 $1,963 
Reconciliation to consolidated income before income taxes:
Gain/(loss) on derivative instruments(697)
Gain/(loss) on foreign currency revaluation of debt410 
Less: Realized (gains)/losses included in segment profit(134)
Consolidated income before income taxes$1,542 
Income tax expense$338 $65 $403 
March 31, 2023
Finance receivables, net$33,518 $4,067 $37,585 
Investment in operating leases, net23,853 3,925 27,778 
Total assets60,556 8,335 68,891