v3.25.2
Investment in Operating Leases (Tables)
 3 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Schedule of Investment in Operating Leases
Investment in operating leases consisted of the following:

June 30, 2025March 31, 2025
 (U.S. dollars in millions)
Operating lease vehicles (1)
$39,070 $37,647 
Accumulated depreciation(6,046)(5,770)
Deferred dealer participation and initial direct costs127 123 
Unearned subsidy income(1,237)(1,291)
Estimated early termination losses(122)(113)
Investment in operating leases, net$31,792 $30,596 
 ________________________
(1)Net of investment tax credits. Refer to Note 7 for additional information.
Schedule of Operating Lease Revenue
Operating lease revenue consisted of the following:

Three months ended June 30,
20252024
 (U.S. dollars in millions)
Lease payments$1,553 $1,390 
Subsidy income and dealer rate participation, net199 139 
Reimbursed lessor costs15 12 
Total operating lease revenue, net$1,767 $1,541 
Schedule of Operating Lease Expense
Leased vehicle expenses consisted of the following:

Three months ended June 30,
20252024
 (U.S. dollars in millions)
Depreciation expense$1,164 $1,058 
Initial direct costs and other lessor costs35 29 
Gain on disposition of leased vehicles (1)
(19)(30)
Total leased vehicle expenses, net$1,180 $1,057 
________________________
(1)Included in the gain on disposition of leased vehicles are end of term charges of $1 million and $4 million for the three months ended June 30, 2025 and 2024, respectively.
Schedule of Contractual Operating Lease Payments
Contractual operating lease payments due as of June 30, 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.
Twelve-month periods ending June 30,(U.S. dollars in millions)
2026$5,752 
20274,185 
20281,749 
2029324 
203062 
Total$12,072