v3.25.2
Segment and Geographic Information
 3 Months Ended
Jun. 30, 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 to make strategic operating decisions.
Financial information for the three months ended June 30, 2025 and 2024 is summarized in the following tables:
 
United
States		Canada
Total
 (U.S. dollars in millions)
Three months ended June 30, 2025
Revenues:
Retail$684 $78 $762 
Dealer64 5 69 
Operating leases1,562 205 1,767 
Total revenues2,310 288 2,598 
Leased vehicle expenses1,033 147 1,180 
Interest expense622 54 676 
Realized (gains)/losses on derivatives and foreign
  currency denominated debt		65 6 71 
Net revenues590 81 671 
Other income, net38 5 43 
Total net revenues628 86 714 
Expenses:
General and administrative expenses122 14 136 
Provision for credit losses98 5 103 
Early termination loss on operating leases46 1 47 
Income before income taxes and
valuation adjustments		$362 $66 $428 
Reconciliation to consolidated income before income taxes:
Gain/(loss) on derivative instruments744 
Gain/(loss) on foreign currency revaluation of debt(731)
Less: Realized (gains)/losses included in segment profit71 
Consolidated income before income taxes $512 
Income tax expense$116 $21 $137 
June 30, 2025
Finance receivables, net$48,707 $5,567 $54,274 
Investment in operating leases, net28,256 3,536 31,792 
Total assets81,648 9,445 91,093 
 
United
States		Canada
Total
 (U.S. dollars in millions)
Three months ended June 30, 2024
Revenues:
Retail$567 $63 $630 
Dealer65 7 72 
Operating leases1,329 212 1,541 
Total revenues1,961 282 2,243 
Leased vehicle expenses897 160 1,057 
Interest expense492 62 554 
Realized (gains)/losses on derivatives and foreign
   currency denominated debt		26 (9)17 
Net revenues546 69 615 
Other income, net36 4 40 
Total net revenues582 73 655 
Expenses:
General and administrative expenses118 14 132 
Provision for credit losses67 4 71 
Early termination loss on operating leases18 — 18 
Income before income taxes and
valuation adjustments		$379 $55 $434 
Reconciliation to consolidated income before income taxes:
Gain/(loss) on derivative instruments(88)
Gain/(loss) on foreign currency revaluation of debt24 
Less: Realized (gains)/losses included in segment profit17 
Consolidated income before income taxes 387
Income tax expense$107 $13 $120 
June 30, 2024
Finance receivables, net$44,278 $4,900 $49,178 
Investment in operating leases, net24,171 3,496 27,667 
Total assets71,790 8,696 80,486