Fair Value Measurements (Tables)

3 Months Ended

Jun. 30, 2025

Summary of Fair Value Hierarchy of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:


	June 30, 2025
	Level 1		Level 2		Level 3		Total

	(U.S. dollars in millions)
Assets:
Derivative instruments:
Interest rate swaps	$	—	$	368	$	—	$	368
Cross currency swaps	—		558		—		558
Total assets	$	—	$	926	$	—	$	926
Liabilities:
Derivative instruments:
Interest rate swaps	$	—	$	616	$	—	$	616
Cross currency swaps	—		166		—		166
Total liabilities	$	—	$	782	$	—	$	782

	March 31, 2025
	Level 1		Level 2		Level 3		Total

	(U.S. dollars in millions)
Assets:
Derivative instruments:
Interest rate swaps	$	—	$	338	$	—	$	338
Cross currency swaps	—		51		—		51
Total assets	$	—	$	389	$	—	$	389
Liabilities:
Derivative instruments:
Interest rate swaps	$	—	$	676	$	—	$	676
Cross currency swaps	—		444		—		444
Total liabilities	$	—	$	1,120	$	—	$	1,120

Summary of Nonrecurring Fair Value Measurements Recognized for Assets

The following tables summarize nonrecurring fair value measurements recognized for assets still held at the end of the reporting periods presented:


	Level 1		Level 2		Level 3		Total		Lower-of-cost or fair value adjustment

	(U.S. dollars in millions)
June 30, 2025
Vehicles held for disposition	$	—	$	—	$	119	$	119	$	46
June 30, 2024
Vehicles held for disposition	$	—	$	—	$	136	$	136	$	47

Summary of Carrying Values and Fair Values of Financial Instruments Except for those Measured at Fair Value on a Recurring Basis

The following tables summarize the carrying values and fair values of the Company’s financial instruments except for those measured at fair value on a recurring basis. Certain financial instruments and all nonfinancial assets and liabilities are excluded from fair value disclosure requirements including the Company’s investment in operating leases. The carrying values of cash and cash equivalents, restricted cash, and short-term investments approximate fair values due to the short-term nature and limited credit risk of the instruments.


	June 30, 2025
	Carrying		Fair value
	value		Level 1	Level 2		Level 3		Total

	(U.S. dollars in millions)
Assets:
Dealer loans, net	$	4,576	—	—		$	4,186	$	4,186
Retail loans, net	49,698		—	—		49,795		49,795
Liabilities:
Commercial paper	$	6,751	—	$	6,751	—		$	6,751
Related party debt	1,000			999				999
Bank loans	2,663		—	2,665		—		2,665
Medium-term note program	38,010		—	37,855		—		37,855
Other debt	3,301		—	3,355		—		3,355
Secured debt	12,700		—	12,807		—		12,807

	March 31, 2025
	Carrying		Fair value
	value		Level 1	Level 2		Level 3		Total

	(U.S. dollars in millions)
Assets:
Dealer loans, net	$	4,335	—	—		$	3,940	$	3,940
Retail loans, net	48,181		—	—		48,102		48,102
Liabilities:
Commercial paper	$	6,022	—	$	6,023	—		$	6,023
Related party debt	1,800			1,800				1,800
Bank loans	2,100		—	2,099		—		2,099
Medium-term note program	37,153		—	36,795		—		36,795
Other debt	3,088		—	3,130		—		3,130
Secured debt	12,384		—	12,472		—		12,472