v3.25.4
Segment and Geographic Information
 9 Months Ended
Dec. 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 to make strategic operating decisions.
Financial information for the three and nine months ended December 31, 2025 and 2024 is summarized in the following tables:
 
United
States		Canada
Total
 (U.S. dollars in millions)
Three months ended December 31, 2025
Revenues:
Retail$706 $82 $788 
Dealer65 4 69 
Operating leases1,614 198 1,812 
Total revenues2,385 284 2,669 
Leased vehicle expenses1,077 141 1,218 
Interest expense640 52 692 
Realized (gains)/losses on derivatives and foreign
  currency denominated debt		78 8 86 
Net revenues590 83 673 
Other income, net37 5 42 
Total net revenues627 88 715 
Expenses:
General and administrative expenses136 14 150 
Provision for credit losses123 3 126 
Early termination loss on operating leases137 1 138 
Income before income taxes and
valuation adjustments		$231 $70 $301 
Reconciliation to consolidated income before income taxes:
Gain/(loss) on derivative instruments(46)
Gain/(loss) on foreign currency revaluation of debt(23)
Less: Realized (gains)/losses included in segment profit86 
Consolidated income before income taxes $318 
Income tax expense$(19)$21 $2 
United
States		CanadaTotal
(U.S. dollars in millions)
Nine months ended December 31, 2025
Revenues:
Retail$2,094 $242 $2,336 
Dealer195 14 209 
Operating leases4,776 606 5,382 
Total revenues7,065 862 7,927 
Leased vehicle expenses3,172 435 3,607 
Interest expense1,909 163 2,072 
Realized (gains)/losses on derivatives and foreign
   currency denominated debt		213 20 233 
Net revenues1,771 244 2,015 
Other income, net118 16 134 
Total net revenues1,889 260 2,149 
Expenses:
General and administrative expenses468 42 510 
Provision for credit losses292 23 315 
Early termination loss on operating leases263 2 265 
Income before income taxes and
valuation adjustments		$866 $193 $1,059 
Reconciliation to consolidated income before income taxes:
Gain/(loss) on derivative instruments559 
Gain/(loss) on foreign currency revaluation of debt(675)
Less: Realized (gains)/losses included in segment profit233 
Consolidated income before income taxes $1,176 
Income tax expense$157 $57 $214 
December 31, 2025
Finance receivables, net$48,789 $5,425 $54,214 
Investment in operating leases, net28,995 3,463 32,458 
Total assets82,896 9,275 92,171 
United
States		CanadaTotal
(U.S. dollars in millions)
Three months ended December 31, 2024
Revenues:
Retail$642 $71 $713 
Dealer68 6 74 
Operating leases1,424 201 1,625 
Total revenues2,134 278 2,412 
Leased vehicle expenses956 149 1,105 
Interest expense573 59 632 
Realized (gains)/losses on derivatives and foreign
   currency denominated debt		34 (1)33 
Net revenues571 71 642 
Other income, net33 4 37 
Total net revenues604 75 679 
Expenses:
General and administrative expenses138 14 152 
Provision for credit losses67 3 70 
Early termination loss on operating leases39 1 40 
Income before income taxes and
valuation adjustments		$360 $57 $417 
Reconciliation to consolidated income before income taxes:
Gain/(loss) on derivative instruments(551)
Gain/(loss) on foreign currency revaluation of debt489 
Less: Realized (gains)/losses included in segment profit33 
Consolidated income before income taxes388
Income tax expense$84 $11 $95 
United
States		CanadaTotal
(U.S. dollars in millions)
Nine months ended December 31, 2024
Revenues:
Retail$1,823 $204 $2,027 
Dealer203 19 222 
Operating leases4,129 622 4,751 
Total revenues6,155 845 7,000 
Leased vehicle expenses2,779 465 3,244 
Interest expense1,615 184 1,799 
Realized (gains)/losses on derivatives and foreign
   currency denominated debt		94 (16)78 
Net revenues1,667 212 1,879 
Other income, net105 12 117 
Total net revenues1,772 224 1,996 
Expenses:
General and administrative expenses386 42 428 
Provision for credit losses218 10 228 
Early termination loss on operating leases94 1 95 
Income before income taxes and
valuation adjustments		$1,074 $171 $1,245 
Reconciliation to consolidated income before income taxes:
Gain/(loss) on derivative instruments(351)
Gain/(loss) on foreign currency revaluation of debt230 
Less: Realized (gains)/losses included in segment profit78 
Consolidated income before income taxes$1,202 
Income tax expense$288 $38 $326 
December 31, 2024
Finance receivables, net$47,061 $4,905 $51,966 
Investment in operating leases, net26,294 3,304 29,598 
Total assets76,691 8,495 85,186