v3.26.1
Investment in Operating Leases (Tables)
 3 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Summary of Investment in Operating Leases
Investment in operating leases consisted of the following:

June 30, 2026March 31, 2026
(U.S. dollars in millions)
Operating lease vehicles (1)
$40,344 $39,805 
Accumulated depreciation(6,431)(6,358)
Deferred dealer participation and initial direct costs123 123 
Unearned subsidy income(1,092)(1,063)
Estimated early termination losses(197)(191)
Investment in operating leases, net$32,747 $32,316 
 ________________________
(1)Net of investment tax credits.
Summary of Operating Lease Revenue
Operating lease revenue consisted of the following:

Three months ended June 30,
20262025
(U.S. dollars in millions)
Lease payments$1,662 $1,568 
Subsidy income and dealer rate participation, net205 199 
Total operating lease revenue, net$1,867 $1,767 
Summary of Operating Lease Expense
Leased vehicle expenses consisted of the following:

Three months ended June 30,
20262025
(U.S. dollars in millions)
Depreciation expense$1,224 $1,164 
Initial direct costs and other lessor costs36 35 
Gain on disposition of leased vehicles (25)(19)
Total leased vehicle expenses, net$1,235 $1,180 
Summary of Contractual Operating Lease Payments
Contractual operating lease payments due as of June 30, 2026 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)
2027$5,878 
20283,891 
20291,653 
2030260 
203161 
Total$11,743