| California(State or other jurisdiction ofincorporation or organization)             | 95-3775816(I.R.S. EmployerIdentification No.) |
|-------------------------------------------------------------------------------------|-----------------------------------------------|
|                                                                                |                                          |
| 19001 S. Western AvenueTorrance, California(Address of principal executive offices) | 90501(Zip Code)                               |

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|  INDEX                                                                                                                                                                                           |                                                                                                                                                                                                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  PART I ................................................................................................................................................................................... | 3                                                                                                                                                                                                             |
|                                                                                                                                                                                                  |                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                  |  Item 1.     Financial Statements.............................................................................................................................................. |  3 |
|                                                                                                                                                                                                  |     Consolidated Statement of Income.....................................................................................................................................                      |  3 |
|                                                                                                                                                                                                  |     Consolidated Statement of Comprehensive Income...........................................................................................................                                  |  3 |
|                                                                                                                                                                                                  |     Consolidated Balance Sheet................................................................................................................................................                 |  4 |
|                                                                                                                                                                                                  |     Consolidated Statement of Shareholder’s Equity...............................................................................................................                        |  5 |
|                                                                                                                                                                                                  |     Consolidated Statement of Cash Flows..............................................................................................................................                    |  6 |
|                                                                                                                                                                                                  |     Notes to Consolidated Financial Statements......................................................................................................................                      |  7 |
|                                                                                                                                                                                                  |  Item 2.     Management’s Discussion and Analysis...............................................................................................................          |  46 |
|                                                                                                                                                                                                  |  Item 3.     Quantitative and Qualitative Disclosures About Market Risk..............................................................................                           |  72 |
|                                                                                                                                                                                                  |  Item 4.     Controls and Procedures.......................................................................................................................................     |  72 |

|  PART II ................................................................................................................................................................................. | 73                                                                                                                                                                                                                   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                 |                                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                 |  Item 1.     Legal Proceedings.................................................................................................................................................        |  73 |
|                                                                                                                                                                                                 |  Item 1A.  Risk Factors...........................................................................................................................................................                    |  73 |
|                                                                                                                                                                                                 |  Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds..............................................................................                                 |  73 |
|                                                                                                                                                                                                 |  Item 3.     Defaults Upon Senior Securities...........................................................................................................................                |  73 |
|                                                                                                                                                                                                 |  Item 4.     Mine Safety Disclosures.......................................................................................................................................            |  73 |
|                                                                                                                                                                                                 |  Item 5.     Other Information.................................................................................................................................................        |  74 |
|                                                                                                                                                                                                 |  Item 6.     Exhibits................................................................................................................................................................. |  74 |
|                                                                                                                                                                                                 |  Signatures..............................................................................................................................................................................                       |  75 |
|                                                                                                                                                                                                 |  Exhibit Index.........................................................................................................................................................................                         |  76 |

----

| PART I. FINANCIAL INFORMATION                                                                                   |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| ITEM 1. FINANCIAL STATEMENTS                                                                                    |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| TOYOTA MOTOR CREDIT CORPORATION                                                                                 |
| CONSOLIDATED STATEMENT OF INCOME                                                                                |
|  (Unaudited)                                                                                               |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            |   |   Three Months Ended |   |   Nine Months Ended |
|                                                                                                            |   |   December 31, |   |   December 31, |
| (Dollars in millions)                                                                                           | 2013 |   | 20121 |   | 2013 |   | 20121 |
| Financing revenues:                                                                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            | Operating lease | $ |  1,290 |   | $ |  1,197 |   | $ |  3,754 |   | $ |  3,541 |
|                                                                                                            | Retail |   |  475 |   |   |  514 |   |   |  1,436 |   |   |  1,571 |
|                                                                                                            | Dealer |   |  111 |   |   |  110 |   |   |  326 |   |   |  328 |
| Total financing revenues                                                                                        |   |  1,876 |   |   |  1,821 |   |   |  5,516 |   |   |  5,440 |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            | Depreciation on operating leases |   |  1,033 |   |   |  907 |   |   |  2,950 |   |   |  2,653 |
|                                                                                                            | Interest expense |   |  386 |   |   |  284 |   |   |  1,236 |   |   |  625 |
| Net financing revenues                                                                                          |   |  457 |   |   |  630 |   |   |  1,330 |   |   |  2,162 |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Insurance earned premiums and contract revenues                                                                 |   |  141 |   |   |  140 |   |   |  423 |   |   |  435 |
| Investment and other income, net                                                                                |   |  68 |   |   |  63 |   |   |  88 |   |   |  136 |
| Net financing revenues and other revenues                                                                       |   |  666 |   |   |  833 |   |   |  1,841 |   |   |  2,733 |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            | Provision for credit losses |   |  63 |   |   |  88 |   |   |  102 |   |   |  107 |
|                                                                                                            | Operating and administrative |   |  240 |   |   |  229 |   |   |  700 |   |   |  674 |
|                                                                                                            | Insurance losses and loss adjustment expenses |   |  57 |   |   |  77 |   |   |  196 |   |   |  231 |
| Total expenses                                                                                                  |   |  360 |   |   |  394 |   |   |  998 |   |   |  1,012 |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                                                                      |   |  306 |   |   |  439 |   |   |  843 |   |   |  1,721 |
| Provision for income taxes                                                                                      |   |  113 |   |   |  156 |   |   |  315 |   |   |  635 |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                      | $ |  193 |   | $ |  283 |   | $ |  528 |   | $ |  1,086 |
| 1  Certain prior period amounts have been reclassified to conform to the current period presentation. |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                                                  |
|  (Unaudited)                                                                                               |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            |   |   Three Months Ended |   |   Nine Months Ended |
|                                                                                                            |   |   December 31, |   |   December 31, |
| (Dollars in millions)                                                                                           | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Net income                                                                                                      | $ |  193 |   | $ |  283 |   | $ |  528 |   | $ |  1,086 |
| Other comprehensive (loss) income, net of tax:                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Net unrealized gains (losses) on available-for-sale                                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            | marketable securities [net of tax (provision) |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            | benefit of ($1), $13, $20 and ($22), respectively] |   |  2 |   |   | (22) |   |   | (36) |   |   |  31 |
| Reclassification adjustment for net (gains) losses on                                                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            | available-for-sale marketable securities included in |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            | investment and other income, net [net of tax |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            | provision (benefit) of $4, $0, ($11) and $2, respectively] | (7) |   |   |  - |   |   |  18 |   |   | (5) |
| Other comprehensive (loss) income                                                                               |   | (5) |   |   | (22) |   |   | (18) |   |   |  26 |
| Comprehensive income                                                                                            | $ |  188 |   | $ |  261 |   | $ |  510 |   | $ |  1,112 |
| See accompanying Notes to Consolidated Financial Statements.                                                    |

----

| TOYOTA MOTOR CREDIT CORPORATION                                       |
|-----------------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEET                                            |
|  (Unaudited)                                                     |
|                                                                  |   |   |   |   |   |   |
| (Dollars in millions)                                                 | December 31, 2013 |   | March 31, 2013 |
| ASSETS                                                                |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |
| Cash and cash equivalents                                             | $ |  2,900 |   | $ |  4,723 |
| Restricted cash                                                       |   |  480 |   |   |  491 |
| Investments in marketable securities                                  |   |  4,450 |   |   |  5,397 |
| Finance receivables, net                                              |   |  66,126 |   |   |  62,567 |
| Investments in operating leases, net                                  |   |  23,541 |   |   |  20,384 |
| Other assets                                                          |   |  2,154 |   |   |  1,740 |
| Total assets                                                          | $ |  99,651 |   | $ |  95,302 |
|                                                                  |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDER'S EQUITY                        |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |
| Debt                                                                  | $ |  82,693 |   | $ |  78,832 |
| Deferred income taxes                                                 |   |  6,561 |   |   |  6,236 |
| Other liabilities                                                     |   |  2,995 |   |   |  2,677 |
| Total liabilities                                                     |   |  92,249 |   |   |  87,745 |
|                                                                  |   |   |   |   |   |   |
| Commitments and contingencies (See Note 12)                           |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |
| Shareholder's equity:                                                 |   |   |   |   |   |
| Capital stock, no par value (100,000 shares authorized; 91,500 issued |   |   |   |   |   |
|                                                                  | and outstanding) at December 31, 2013 and March 31, 2013 |   |  915 |   |   |  915 |
| Additional paid-in-capital                                            |   |  2 |   |   |  2 |
| Accumulated other comprehensive income                                |   |  193 |   |   |  211 |
| Retained earnings                                                     |   |  6,292 |   |   |  6,429 |
| Total shareholder's equity                                            |   |  7,402 |   |   |  7,557 |
| Total liabilities and shareholder's equity                            | $ |  99,651 |   | $ |  95,302 |

| (Dollars in millions)                                        | December 31, 2013 |        | March 31, 2013 |
|--------------------------------------------------------------|-------------------|-------------|----------------|
| ASSETS                                                       |              |        |           |   |   |
| Finance receivables, net                                     | $                 |  8,064 |           | $ |  7,556 |
| Investments in operating leases, net                         |              |  210   |           |   |  434 |
| Other assets                                                 |              |  9     |           |   |  12 |
| Total assets                                                 | $                 |  8,283 |           | $ |  8,002 |
|                                                         |              |        |           |   |   |
| LIABILITIES                                                  |              |        |           |   |   |
| Debt                                                         | $                 |  7,195 |           | $ |  7,009 |
| Other liabilities                                            |              |  1     |           |   |  1 |
| Total liabilities                                            | $                 |  7,196 |           | $ |  7,010 |
|                                                         |              |        |           |   |   |
| See accompanying Notes to Consolidated Financial Statements. |

----

|  TOYOTA MOTOR CREDIT CORPORATION                        |
|--------------------------------------------------------------|
| CONSOLIDATED STATEMENT OF SHAREHOLDER’S EQUITY         |
|  (Unaudited)                                            |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   | other |   |   |   |   |   |
|                                                         |   | Capital |   | Additional |  comprehensive | Retained |   |   |   |
| (Dollars in millions)                                        |  stock |   |  paid-in capital | income | earnings |   | Total |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2012                                    | $ |  915 |   | $ |  2 |   | $ |  160 |   | $ |  6,585 |   | $ |  7,662 |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income for the nine months ended                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | December 31, 2012 |   |  - |   |   |  - |   |   |  - |   |   |  1,086 |   |   |  1,086 |
| Other comprehensive income, net                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | of tax |   |  - |   |   |  - |   |   |  26 |   |   |  - |   |   |  26 |
| Dividend                                                     |   |  - |   |   |  - |   |   |  - |   |   | (744) |   |   | (744) |
| Balance at December 31, 2012                                 | $ |  915 |   | $ |  2 |   | $ |  186 |   | $ |  6,927 |   | $ |  8,030 |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2013                                    | $ |  915 |   | $ |  2 |   | $ |  211 |   | $ |  6,429 |   | $ |  7,557 |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income for the nine months ended                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | December 31, 2013 |   |  - |   |   |  - |   |   |  - |   |   |  528 |   |   |  528 |
| Other comprehensive loss, net                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | of tax |   |  - |   |   |  - |   |   | (18) |   |   |  - |   |   | (18) |
| Dividend                                                     |   |  - |   |   |  - |   |   |  - |   |   | (665) |   |   | (665) |
| Balance at December 31, 2013                                 | $ |  915 |   | $ |  2 |   | $ |  193 |   | $ |  6,292 |   | $ |  7,402 |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying Notes to Consolidated Financial Statements. |   |   |   |

----

| TOYOTA MOTOR CREDIT CORPORATION                              |
|--------------------------------------------------------------|
| CONSOLIDATED STATEMENT OF CASH FLOWS                         |
|  (Unaudited)                                            |
|                                                         |   |   |   | Nine Months Ended December 31, |
| (Dollars in millions)                                        | 2013 |   | 2012 |
| Cash flows from operating activities:                        |   |   |   |   |   |
|                                                         | Net income | $ |  528 |   | $ |  1,086 |
|                                                         | Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |   |   |
|                                                         |   | Depreciation and amortization |   |  2,974 |   |   |  2,665 |
|                                                         |   | Recognition of deferred income |   | (943) |   |   | (886) |
|                                                         |   | Provision for credit losses |   |  102 |   |   |  107 |
|                                                         |   | Amortization of deferred costs |   |  422 |   |   |  404 |
|                                                         |   | Foreign currency and other adjustments to the carrying value of debt, net |   | (243) |   |   | (628) |
|                                                         | Net realized loss (gain) from sales and other-than-temporary impairment on securities |  29 |   |   | (7) |
|                                                         | Net change in: |   |   |   |   |   |
|                                                         |   | Restricted cash |   |  11 |   |   |  100 |
|                                                         |   | Derivative assets |   |  9 |   |   |  19 |
|                                                         |   | Other assets (See Note 8) and accrued income |   | (73) |   |   |  14 |
|                                                         |   | Deferred income taxes |   |  334 |   |   |  629 |
|                                                         |   | Derivative liabilities |   | (4) |   |   | (49) |
|                                                         |   | Other liabilities |   |  344 |   |   |  190 |
| Net cash provided by operating activities                    |   |  3,490 |   |   |  3,644 |
| Cash flows from investing activities:                        |   |   |   |   |   |
|                                                         | Purchase of investments in marketable securities |   | (2,679) |   |   | (3,932) |
|                                                         | Proceeds from sales of investments in marketable securities |   |  411 |   |   |  242 |
|                                                         | Proceeds from maturities of investments in marketable securities |   |  3,159 |   |   |  3,291 |
|                                                         | Acquisition of finance receivables |   | (19,924) |   |   | (19,841) |
|                                                         | Collection of finance receivables |   |  17,846 |   |   |  17,074 |
|                                                         | Net change in wholesale and certain working capital receivables |   | (1,481) |   |   | (1,819) |
|                                                         | Acquisition of investments in operating leases |   | (10,803) |   |   | (7,386) |
|                                                         | Disposals of investments in operating leases |   |  5,179 |   |   |  4,066 |
|                                                         | Advances to affiliates |   | (3,419) |   |   | (4,035) |
|                                                         | Repayments from affiliates |   |  3,040 |   |   |  3,407 |
|                                                         | Other, net |   | (23) |   |   | (14) |
| Net cash used in investing activities                        |   | (8,694) |   |   | (8,947) |
| Cash flows from financing activities:                        |   |   |   |   |   |
|                                                         | Proceeds from issuance of debt |   |  14,025 |   |   |  12,723 |
|                                                         | Payments on debt |   | (12,380) |   |   | (10,670) |
|                                                         | Net change in commercial paper |   |  2,425 |   |   |  3,672 |
|                                                         | Advances from affiliates |   |  91 |   |   |  49 |
|                                                         | Repayments to affiliates |   | (115) |   |   | (2,059) |
|                                                         | Dividend paid |   | (665) |   |   | (744) |
| Net cash provided by financing activities                    |   |  3,381 |   |   |  2,971 |
| Net decrease in cash and cash equivalents                    |   | (1,823) |   |   | (2,332) |
| Cash and cash equivalents at the beginning of the period     |   |  4,723 |   |   |  5,060 |
| Cash and cash equivalents at the end of the period           | $ |  2,900 |   | $ |  2,728 |
| Supplemental disclosures:                                    |   |   |   |   |   |
|                                                         | Interest paid | $ |  876 |   | $ |  985 |
|                                                         | Income taxes received, net | $ | (39) |   | $ | (3) |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |
| See accompanying Notes to Consolidated Financial Statements. |
|                                                         |

----

----

----

|                           |                                |                                   |                                   |          |      |                                         |        |             |      |        |     |        |    |          |        |        |        |      |
|--------------------------------|-------------------------------------|----------------------------------------|----------------------------------------|---------------|-----------|----------------------------------------------|-------------|------------------|-----------|-------------|----------|-------------|---------|---------------|-------------|-------------|-------------|-----------|
| As of December 31, 2013        |                                |                                   |                                   |          |      |                                         |        |             |      |        |     |        |    |          |        |
|                           |                                |                                   |                                   |          |      | Fair value measurements on a recurring basis |
|                           |                                |                                   |                                   |          |      |                                         |        |             |      |        |     |        |    | Counterparty  |        |        |        |
|                           |                                |                                   |                                   |          |      |                                         |        |             |      |        |     |        |    | netting & |        | Fair        |
| (Dollars in millions)          |                                |  Level 1                          |                                   |  Level 2 |      |  Level 3                                |        |  collateral |      |  value |
| Cash equivalents:              |                                |                                   |                                   |          |      |                                         |        |             |      |        |     |        |    |          |        |
|                           | Money market instruments            |                                   | $                                      |  553     |      | $                                            |  444   |             | $         |  -     |     | $           |  - |          | $           |  997   |
|                           | Certificates of deposit             |                                   |                                   |  -       |      |                                         |  1,338 |             |      |  -     |     |        |  - |          |        |  1,338 |
|                           | Cash equivalents total              |                                   |                                   |  553     |      |                                         |  1,782 |             |      |  -     |     |        |  - |          |        |  2,335 |
| Available-for-sale securities: |                                |                                   |                                   |          |      |                                         |        |             |      |        |     |        |    |          |        |
|                           | Debt instruments:                   |                                   |                                   |          |      |                                         |        |             |      |        |     |        |    |          |        |        |
|                           |                                | U.S. government and agency obligations |                                   |          |  28  |                                         |        |  57         |      |        |  2  |        |    |  -       |        |        |  87    |
|                           |                                | Municipal debt securities              |                                   |          |  -   |                                         |        |  14         |      |        |  -  |        |    |  -       |        |        |  14    |
|                           |                                | Certificates of deposit                |                                   |          |  -   |                                         |        |  1,533      |      |        |  -  |        |    |  -       |        |        |  1,533 |
|                           |                                | Commercial paper                       |                                   |          |  -   |                                         |        |  125        |      |        |  -  |        |    |  -       |        |        |  125   |
|                           |                                | Foreign government debt securities     |                                   |          |  -   |                                         |        |  3          |      |        |  -  |        |    |  -       |        |        |  3     |
|                           |                                | Corporate debt securities              |                                   |          |  -   |                                         |        |  144        |      |        |  9  |        |    |  -       |        |        |  153   |
|                           |                                | Mortgage-backed securities:            |                                   |          |      |                                         |        |             |      |        |     |        |    |          |        |        |        |
|                           |                                |                                   | U.S. government agency                 |          |      |  -                                      |        |             |  64  |        |     |  -     |    |          |  -     |        |        |  64  |
|                           |                                |                                   | Non-agency residential                 |          |      |  -                                      |        |             |  -   |        |     |  5     |    |          |  -     |        |        |  5   |
|                           |                                |                                   | Non-agency commercial                  |          |      |  -                                      |        |             |  -   |        |     |  50    |    |          |  -     |        |        |  50  |
|                           |                                | Asset-backed securities                |                                   |          |  -   |                                         |        |  -          |      |        |  23 |        |    |  -       |        |        |  23    |
|                           | Equity instruments:                 |                                   |                                   |          |      |                                         |        |             |      |        |     |        |    |          |        |        |
|                           |                                | Fixed income mutual funds:             |                                   |          |      |                                         |        |             |      |        |     |        |    |          |        |        |        |
|                           |                                |                                   | Short-term sector fund                 |          |      |  -                                      |        |             |  44  |        |     |  -     |    |          |  -     |        |        |  44  |
|                           |                                |                                   | U.S. government sector fund            |          |      |  -                                      |        |             |  337 |        |     |  -     |    |          |  -     |        |        |  337 |
|                           |                                |                                   | Municipal sector fund                  |          |      |  -                                      |        |             |  21  |        |     |  -     |    |          |  -     |        |        |  21  |
|                           |                                |                                   | Investment grade corporate sector fund |          |      |  -                                      |        |             |  310 |        |     |  -     |    |          |  -     |        |        |  310 |
|                           |                                |                                   | High-yield sector fund                 |          |      |  -                                      |        |             |  43  |        |     |  -     |    |          |  -     |        |        |  43  |
|                           |                                |                                   | Real return sector fund                |          |      |  -                                      |        |             |  268 |        |     |  -     |    |          |  -     |        |        |  268 |
|                           |                                |                                   | Mortgage sector fund                   |          |      |  -                                      |        |             |  558 |        |     |  -     |    |          |  -     |        |        |  558 |
|                           |                                |                                   | Asset-backed securities sector fund    |          |      |  -                                      |        |             |  49  |        |     |  -     |    |          |  -     |        |        |  49  |
|                           |                                |                                   | Emerging market sector fund            |          |      |  -                                      |        |             |  64  |        |     |  -     |    |          |  -     |        |        |  64  |
|                           |                                |                                   | International sector fund              |          |      |  -                                      |        |             |  170 |        |     |  -     |    |          |  -     |        |        |  170 |
|                           |                                | Equity mutual fund                     |                                   |          |  529 |                                         |        |  -          |      |        |  -  |        |    |  -       |        |        |  529   |
|                           | Available-for-sale securities total |                                   |                                   |  557     |      |                                         |  3,804 |             |      |  89    |     |        |  - |          |        |  4,450 |
|                           | Derivative assets:                  |                                   |                                   |          |      |                                         |        |             |      |        |     |        |    |          |        |        |
|                           |                                | Foreign currency swaps                 |                                   |          |  -   |                                         |        |  927        |      |        |  67 |        |    |  -       |        |        |  994   |
|                           |                                | Interest rate swaps                    |                                   |          |  -   |                                         |        |  375        |      |        |  3  |        |    |  -       |        |        |  378   |
|                           |                                | Counterparty netting and collateral    |                                   |          |  -   |                                         |        |  -          |      |        |  -  |        |    | (1,323)       |        |        | (1,323)     |
|                           | Derivative assets total             |                                   |                                   |  -       |      |                                         |  1,302 |             |      |  70    |     |        | (1,323) |          |        |  49    |
| Assets at fair value           |                                |                                   |  1,110                            |          |      |  6,888                                  |        |             |  159 |        |     | (1,323)     |    |          |  6,834 |
|                           | Derivative liabilities:             |                                   |                                   |          |      |                                         |        |             |      |        |     |        |    |          |        |        |
|                           |                                | Foreign currency swaps                 |                                   |          |  -   |                                         |        | (348)            |      |        | (14)     |        |    |  -       |        |        | (362)       |
|                           |                                | Interest rate swaps                    |                                   |          |  -   |                                         |        | (656)            |      |        |  -  |        |    |  -       |        |        | (656)       |
|                           |                                | Counterparty netting and collateral    |                                   |          |  -   |                                         |        |  -          |      |        |  -  |        |    |  1,005   |        |        |  1,005 |
| Liabilities at fair value      |                                |                                   |  -                                |          |      | (1,004)                                      |        |             | (14)      |        |     |  1,005 |    |          | (13)        |
| Net assets at fair value       |                                | $                                      |  1,110                            |          | $         |  5,884                                  |        | $                |  145 |        | $        | (318)       |    | $             |  6,821 |

----

| Note 2 – Fair Value Measurements (Continued) |
|----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of March 31, 2013                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   | Fair value measurements on a recurring basis |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   | Counterparty |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   | netting & |   | Fair |
| (Dollars in millions)                              |   |  Level 1 |   |  Level 2 |   |  Level 3 |   | collateral |   | value |
| Cash equivalents:                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               | Money market instruments |   | $ |  900 |   | $ |  608 |   | $ |  - |   | $ |  - |   | $ |  1,508 |
|                                               | Certificates of deposit |   |   |  - |   |   |  1,945 |   |   |  - |   |   |  - |   |   |  1,945 |
|                                               | Commercial paper |   |   |  - |   |   |  798 |   |   |  - |   |   |  - |   |   |  798 |
|                                               | Cash equivalents total |   |   |  900 |   |   |  3,351 |   |   |  - |   |   |  - |   |   |  4,251 |
| Available-for-sale securities:                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               | Debt instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   | U.S. government and agency obligations |   |   |  42 |   |   |  62 |   |   |  - |   |   |  - |   |   |  104 |
|                                               |   | Municipal debt securities |   |   |  - |   |   |  16 |   |   |  - |   |   |  - |   |   |  16 |
|                                               |   | Certificates of deposit |   |   |  - |   |   |  2,041 |   |   |  - |   |   |  - |   |   |  2,041 |
|                                               |   | Commercial paper |   |   |  - |   |   |  495 |   |   |  - |   |   |  - |   |   |  495 |
|                                               |   | Foreign government debt securities |   |   |  - |   |   |  3 |   |   |  - |   |   |  - |   |   |  3 |
|                                               |   | Corporate debt securities |   |   |  - |   |   |  124 |   |   |  4 |   |   |  - |   |   |  128 |
|                                               |   | Mortgage-backed securities: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   | U.S. government agency |   |   |  - |   |   |  87 |   |   |  - |   |   |  - |   |   |  87 |
|                                               |   |   | Non-agency residential |   |   |  - |   |   |  - |   |   |  5 |   |   |  - |   |   |  5 |
|                                               |   |   | Non-agency commercial |   |   |  - |   |   |  - |   |   |  51 |   |   |  - |   |   |  51 |
|                                               |   | Asset-backed securities |   |   |  - |   |   |  - |   |   |  13 |   |   |  - |   |   |  13 |
|                                               | Equity instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   | Fixed income mutual funds: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   | Short-term sector fund |   |   |  - |   |   |  43 |   |   |  - |   |   |  - |   |   |  43 |
|                                               |   |   | U.S. government sector fund |   |   |  - |   |   |  312 |   |   |  - |   |   |  - |   |   |  312 |
|                                               |   |   | Municipal sector fund |   |   |  - |   |   |  22 |   |   |  - |   |   |  - |   |   |  22 |
|                                               |   |   | Investment grade corporate sector fund |   |   |  - |   |   |  327 |   |   |  - |   |   |  - |   |   |  327 |
|                                               |   |   | High-yield sector fund |   |   |  - |   |   |  42 |   |   |  - |   |   |  - |   |   |  42 |
|                                               |   |   | Real return sector fund |   |   |  - |   |   |  293 |   |   |  - |   |   |  - |   |   |  293 |
|                                               |   |   | Mortgage sector fund |   |   |  - |   |   |  648 |   |   |  - |   |   |  - |   |   |  648 |
|                                               |   |   | Asset-backed securities sector fund |   |   |  - |   |   |  47 |   |   |  - |   |   |  - |   |   |  47 |
|                                               |   |   | Emerging market sector fund |   |   |  - |   |   |  66 |   |   |  - |   |   |  - |   |   |  66 |
|                                               |   |   | International sector fund |   |   |  - |   |   |  170 |   |   |  - |   |   |  - |   |   |  170 |
|                                               |   | Equity mutual fund |   |   |  484 |   |   |  - |   |   |  - |   |   |  - |   |   |  484 |
|                                               | Available-for-sale securities total |   |   |  526 |   |   |  4,798 |   |   |  73 |   |   |  - |   |   |  5,397 |
|                                               | Derivative assets: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   | Foreign currency swaps |   |   |  - |   |   |  1,076 |   |   |  63 |   |   |  - |   |   |  1,139 |
|                                               |   | Interest rate swaps |   |   |  - |   |   |  568 |   |   |  12 |   |   |  - |   |   |  580 |
|                                               |   | Counterparty netting and collateral |   |   |  - |   |   |  - |   |   |  - |   |   | (1,661) |   |   | (1,661) |
|                                               | Derivative assets total |   |   |  - |   |   |  1,644 |   |   |  75 |   |   | (1,661) |   |   |  58 |
| Assets at fair value                               |   |   |  1,426 |   |   |  9,793 |   |   |  148 |   |   | (1,661) |   |   |  9,706 |
|                                               | Derivative liabilities: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   | Foreign currency swaps |   |   |  - |   |   | (123) |   |   | (8) |   |   |  - |   |   | (131) |
|                                               |   | Interest rate swaps |   |   |  - |   |   | (766) |   |   |  - |   |   |  - |   |   | (766) |
|                                               |   | Counterparty netting and collateral |   |   |  - |   |   |  - |   |   |  - |   |   |  892 |   |   |  892 |
|                                               | Derivative liabilities total |   |   |  - |   |   | (889) |   |   | (8) |   |   |  892 |   |   | (5) |
|                                               | Embedded derivative liabilities |   |   |  - |   |   |  - |   |   | (12) |   |   |  - |   |   | (12) |
| Liabilities at fair value                          |   |   |  - |   |   | (889) |   |   | (20) |   |   |  892 |   |   | (17) |
| Net assets at fair value                           |   | $ |  1,426 |   | $ |  8,904 |   | $ |  128 |   | $ | (769) |   | $ |  9,689 |

----

|                                |        |                                  | Fair value measurements using significant unobservable inputs (Level 3) |
|-------------------------------------|-------------|---------------------------------------|-------------------------------------------------------------------------|
|                                |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Total net |
|                                |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | assets |
|                                |        |                                  | Available-for-sale securities                                           |   | Derivative instruments, net |  (liabilities) |
|                                |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |        |                                  | U.S.                                                                    |   |   |   |   |   |   | Total |   |   |   |   |   |   |   | Total |   |   |
|                                |        |                                  | government                                                              | Corporate | Mortgage- | Asset- |   | available- |   | Interest | Foreign |   | derivative |   |   |
|                                |        |                                  | and agency                                                              | debt | backed | backed |   | for-sale |   |  rate | currency | Embedded | assets |   |   |
| (Dollars in millions)               | obligations | securities                            | securities                                                              | securities |   | securities |   | swaps | swaps |  derivatives | (liabilities) |   |
| Fair value, October 1, 2013         | $           |  2                               | $                                                                       |  2 | $ |  54 | $ |  19 |   | $ |  77 |   | $ |  13 | $ |  50 | $ | (9) | $ |  54 | $ |  131 |
| Total gains                         |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |        | Included in earnings                  |                                                                    |  - |   |  - |   |  - |   |  - |   |   |  - |   |   |  3 |   |  8 |   |  9 |   |  20 |   |  20 |
|                                |        | Included in othercomprehensive income |                                                                    |  - |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
| Purchases, issuances, sales, and    |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                | settlements |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |        | Purchases                             |                                                                    |  - |   |  - |   |  3 |   |  5 |   |   |  8 |   |   |  - |   |  - |   |  - |   |  - |   |  8 |
|                                |        | Issuances                             |                                                                    |  - |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
|                                |        | Sales                                 |                                                                    |  - |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
|                                |        | Settlements                           |                                                                    |  - |   |  - |   | (2) |   | (1) |   |   | (3) |   |   | (13) |   | (5) |   |  - |   | (18) |   | (21) |
| Transfers in to Level 3             |        |  -                               |                                                                    |  7 |   |  - |   |  - |   |   |  7 |   |   |  - |   |  - |   |  - |   |  - |   |  7 |
| Transfers out of Level 3            |        |  -                               |                                                                    |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
| Fair value, December 31, 2013       | $           |  2                               | $                                                                       |  9 | $ |  55 | $ |  23 |   | $ |  89 |   | $ |  3 | $ |  53 | $ |  - | $ |  56 | $ |  145 |
| The amount of total gains           |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for the period included in          |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earnings attributable to the        |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| change in unrealized gains or       |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| losses related to assets still held |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at the reporting date               |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   | $ |  - | $ |  8 | $ |  - | $ |  8 | $ |  8 |
|                                |        |                                  |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |        |

----

| Note 2 – Fair Value Measurements (Continued)                              |
|---------------------------------------------------------------------------------|
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three Months Ended December 31, 2012                                            |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   | Fair value measurements using significant unobservable inputs (Level 3) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Total net |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | assets |
|                                                                            |   |   | Available-for-sale securities |   | Derivative instruments, net | (liabilities) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   | Total |   |   |   |   |   |   | Total |   |   |
|                                                                            |   |   | Corporate | Mortgage- | Asset- |   | available- |   | Interest | Foreign |   | derivative |   |   |
|                                                                            |   |   | debt | backed | backed |   | for-sale |   |  rate | currency | Embedded | assets |   |   |
| (Dollars in millions)                                                           | securities | securities | securities |   | securities |   | swaps | swaps |  derivatives | (liabilities) |   |   |
| Fair value, October 1, 2012                                                     | $ |  4 |  $ |  31 |  $ |  9 |   |  $ |  44 |   |  $ |  12 |  $ |  74 |  $ |  (23) |  $ |  63 |  $ |  107 |
| Total gains                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   | Included in earnings |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  6 |   |  10 |   |  16 |   |  16 |
|                                                                            |   | Included in othercomprehensive income |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
| Purchases, issuances, sales, and      settlements |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   | Purchases |   |  - |   |  2 |   |  - |   |   |  2 |   |   |  - |   |  - |   |  - |   |  - |   |  2 |
|                                                                            |   | Issuances |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
|                                                                            |   | Sales |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
|                                                                            |   | Settlements |   |  - |   |  (3) |   |  (1) |   |   |  (4) |   |   |  (1) |   |  (12) |   |  - |   |  (13) |   |  (17) |
| Transfers in to Level 3                                                         |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
| Transfers out of Level 3                                                        |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
| Fair value, December 31, 2012                                                   | $ |  4 |  $ |  30 |  $ |  8 |   |  $ |  42 |   |  $ |  11 |  $ |  68 |  $ |  (13) |  $ |  66 |  $ |  108 |
| The amount of total gains                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for the period included in                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earnings attributable to the                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| change in unrealized gains or                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| losses related to assets still held                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at the reporting date                                                           |   |   |   |   |   |   |   |   |   |   | $ |  - | $ |  6 | $ |  4 | $ |  10 | $ |  10 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Nine Months Ended December 31, 2013                                             |
|---------------------------------------------------------------------------------|
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   | Fair value measurements using significant unobservable inputs (Level 3) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Total net |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | assets |
|                                                                            |   |   | Available-for-sale securities |   | Derivative instruments, net | (liabilities) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   | U.S. |   |   |   |   |   |   | Total |   |   |   |   |   |   | Total |   |   |
|                                                                            |   |   | government | Corporate | Mortgage- | Asset- |   | available- |   | Interest | Foreign |   | derivative |   |   |
|                                                                            |   |   | and agency | debt | backed | backed |   | for-sale |   |  rate | currency | Embedded | assets |   |   |
| (Dollars in millions)                                                           | obligations | securities | securities | securities |   | securities |   | swaps | swaps |  derivatives | (liabilities) |   |   |
| Fair value, April 1, 2013                                                       | $ |  - | $ |  4 |  $ |  56 |  $ |  13 |   |  $ |  73 |   | $ |  12 | $ |  55 | $ | (12) | $ |  55 | $ |  128 |
| Total gains (losses)                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   | Included in earnings |   |  - |   |  - |   |  - |   |  - |   |   |  - |   |   |  5 |   |  15 |   |  12 |   |  32 |   |  32 |
|                                                                            |   | Included in other comprehensive income |   |  - |   |  - |   | (3) |   |  - |   |   | (3) |   |   |  - |   |  - |   |  - |   |  - |   | (3) |
| Purchases, issuances, sales, and      settlements |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   | Purchases |   |  - |   |  - |   |  5 |   |  12 |   |   |  17 |   |   |  - |   |  - |   |  - |   |  - |   |  17 |
|                                                                            |   | Issuances |   |  - |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
|                                                                            |   | Sales |   |  - |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
|                                                                            |   | Settlements |   |  - |   |  - |   | (3) |   | (2) |   |   | (5) |   |   | (14) |   | (17) |   |  - |   | (31) |   | (36) |
| Transfers in to Level 3                                                         |   |  2 |   |  7 |   |  - |   |  - |   |   |  9 |   |   |  - |   |  - |   |  - |   |  - |   |  9 |
| Transfers out of Level 3                                                        |   |  - |   | (2) |   |  - |   |  - |   |   | (2) |   |   |  - |   |  - |   |  - |   |  - |   | (2) |
| Fair value, December 31, 2013                                                   | $ |  2 | $ |  9 |  $ |  55 |  $ |  23 |   |  $ |  89 |   | $ |  3 | $ |  53 | $ |  - | $ |  56 | $ |  145 |
| The amount of total (losses)/gains                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for the period included in                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earnings attributable to the                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| change in unrealized gains or                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| losses related to assets still held                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at the reporting date                                                           |   |   |   |   |   |   |   |   |   |   |   |   | $ | (2) | $ |  17 | $ |  - | $ |  15 | $ |  15 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |

----

| Note 2 – Fair Value Measurements (Continued)                  |
|---------------------------------------------------------------------|
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nine Months Ended December 31, 2012                                 |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | Fair value measurements using significant unobservable inputs (Level 3) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Total net |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | assets |
|                                                                |   | Available-for-sale securities |   | Derivative instruments, net | (liabilities) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   | Total |   |   |   |   |   |   |  Total |   |   |
|                                                                |   | Corporate | Mortgage- | Asset- | available- |   | Interest | Foreign |   |  derivative |   |   |
|                                                                |   | debt | backed | backed | for-sale |   |  rate | currency | Embedded |  assets |   |   |
| (Dollars in millions)                                               | securities | securities | securities | securities |   | swaps | swaps |  derivatives |  (liabilities) |   |   |
| Fair value, April 1, 2012                                           | $ |  1 | $ |  19 | $ |  1 |   | $ |  21 |   | $ |  13 |  $ |  69 | $ |  (24) | $ |  58 | $ |  79 |
| Total gains                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                | Included in earnings |  - |   |  - |   |  - |   |   |  - |   |   |  1 |   |  23 |   |  11 |   |  35 |   |  35 |
|                                                                | Included in othercomprehensive income |  - |   |  1 |   |  - |   |   |  1 |   |   |  - |   |  - |   |  - |   |  - |   |  1 |
| Purchases, issuances, sales, and    settlements |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                | Purchases |   |  - |   |  5 |   |  1 |   |   |  6 |   |   |  - |   |  - |   |  - |   |  - |   |  6 |
|                                                                | Issuances |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
|                                                                | Sales |   |  - |   |  (3) |   |  (1) |   |   |  (4) |   |   |  - |   |  - |   |  - |   |  - |   |  (4) |
|                                                                | Settlements |   |  - |   |  (5) |   |  (4) |   |   |  (9) |   |   |  (3) |   |  (24) |   |  - |   |  (27) |   |  (36) |
| Transfers into Level 3                                              |   |  3 |   |  13 |   |  11 |   |   |  27 |   |   |  - |   |  - |   |  - |   |  - |   |  27 |
| Transfers out of Level 3                                            |   |  - |   |  - |   |  - |   |   |  - |   |   |  - |   |  - |   |  - |   |  - |   |  - |
| Fair value, December 31, 2012                                       | $ |  4 | $ |  30 | $ |  8 |   | $ |  42 |   | $ |  11 | $ |  68 | $ |  (13) | $ |  66 | $ |  108 |
| The amount of total gains                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for the period included                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in earnings attributable to the                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| change in unrealized gains or                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| losses related to assets still held                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at the reporting date                                               |   |   |   |   |   |   |   |   |   |   | $ |  1 | $ |  21 | $ |  1 | $ |  23 | $ |  23 |

----

|                    |                              |            |         |         | Fair value measurement hierarchy |
|-------------------------|-----------------------------------|-----------------|--------------|--------------|----------------------------------|
|                    |                              |            | Carrying     |         |                             |   |   |   |   | Total Fair |
| (Dollars in millions)   | value                             | Level 1         | Level 2      | Level 3      | Value                            |
| As of December 31, 2013 |                              |            |         |         |                             |   |   |   |   |   |
|                    |                              |            |         |         |                             |   |   |   |   |   |   |   |
| Financial assets        |                              |            |         |         |                             |   |   |   |   |   |
|                    | Finance receivables, net          |            |         |         |                             |   |   |   |   |   |   |
|                    |                              | Retail loan     | $            |  49,213 | $                                |  - | $ |  - | $ |  49,649 | $ |  49,649 |
|                    |                              | Commercial      |         |  163    |                             |  - |   |  - |   |  151 |   |  151 |
|                    |                              | Wholesale       |         |  9,968  |                             |  - |   |  - |   |  10,017 |   |  10,017 |
|                    |                              | Real estate     |         |  4,601  |                             |  - |   |  - |   |  4,540 |   |  4,540 |
|                    |                              | Working capital |         |  1,831  |                             |  - |   |  - |   |  1,834 |   |  1,834 |
|                    |                              |            |         |         |                             |   |   |   |   |   |   |   |
| Financial liabilities   |                              |            |         |         |                             |   |   |   |   |   |
|                    | Commercial paper                  | $               |  27,012 | $            |  -                          | $ |  27,012 | $ |  - | $ |  27,012 |
|                    | Unsecured notes and loans payable |            |  48,486 |         |  -                          |   |  48,619 |   |  760 |   |  49,379 |
|                    | Secured notes and loans payable   |            |  7,195  |         |  -                          |   |  - |   |  7,201 |   |  7,201 |

----

| Note 2 - Fair Value Measurements (Continued) |
|----------------------------------------------|
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |   |   |   | Fair value measurement hierarchy |
|                                         |   |   | Carrying |   |   |   |   |   |   | Total Fair |
| (Dollars in millions)                        | value | Level 1 | Level 2 | Level 3 | Value |
| As of March 31, 2013                         |   |   |   |   |   |   |   |   |   |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial assets                             |   |   |   |   |   |   |   |   |   |   |
|                                         | Finance receivables, net |   |   |   |   |   |   |   |   |   |   |
|                                         |   | Retail loan | $ |  47,312 | $ |  - | $ |  - | $ |  48,313 | $ |  48,313 |
|                                         |   | Commercial |   |  134 |   |  - |   |  - |   |  126 |   |  126 |
|                                         |   | Wholesale |   |  8,620 |   |  - |   |  - |   |  8,644 |   |  8,644 |
|                                         |   | Real estate |   |  4,531 |   |  - |   |  - |   |  4,480 |   |  4,480 |
|                                         |   | Working capital |   |  1,695 |   |  - |   |  - |   |  1,708 |   |  1,708 |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities                        |   |   |   |   |   |   |   |   |   |   |
|                                         | Commercial paper | $ |  24,590 | $ |  - | $ |  24,590 | $ |  - | $ |  24,590 |
|                                         | Unsecured notes and loans payable |   |  47,233 |   |  - |   |  47,901 |   |  874 |   |  48,775 |
|                                         | Secured notes and loans payable |   |  7,009 |   |  - |   |  - |   |  7,016 |   |  7,016 |

----

|                                       |                |                                   |                                   | December 31, 2013 |
|--------------------------------------------|---------------------|----------------------------------------|----------------------------------------|-------------------|
|                                       |                |                                   |                                   | Amortized         |   | Unrealized |   | Unrealized |   | Fair |
| (Dollars in millions)                      | cost                |                                   |  gains                            |              | losses |   | value |
| Available-for-sale securities:             |                |                                   |                                   |              |   |   |   |   |   |   |   |
|                                       | Debt instruments:   |                                   |                                   |              |   |   |   |   |   |   |   |   |
|                                       |                | U.S. government and agency obligations | $                                      |  87          |   | $ |  1 |   | $ |  (1) |   | $ |  87 |
|                                       |                | Municipal debt securities              |                                   |  14          |   |   |  - |   |   |  - |   |   |  14 |
|                                       |                | Certificates of deposit                |                                   |  1,533       |   |   |  - |   |   |  - |   |   |  1,533 |
|                                       |                | Commercial paper                       |                                   |  125         |   |   |  - |   |   |  - |   |   |  125 |
|                                       |                | Foreign government debt securities     |                                   |  3           |   |   |  - |   |   |  - |   |   |  3 |
|                                       |                | Corporate debt securities              |                                   |  151         |   |   |  4 |   |   |  (2) |   |   |  153 |
|                                       |                | Mortgage-backed securities:            |                                   |              |   |   |   |   |   |   |   |   |   |
|                                       |                |                                   | U.S. government agency                 |              |  64 |   |   |  1 |   |   |  (1) |   |   |  64 |
|                                       |                |                                   | Non-agency residential                 |              |  4 |   |   |  1 |   |   |  - |   |   |  5 |
|                                       |                |                                   | Non-agency commercial                  |              |  51 |   |   |  - |   |   |  (1) |   |   |  50 |
|                                       |                | Asset-backed securities                |                                   |  23          |   |   |  - |   |   |  - |   |   |  23 |
|                                       | Equity instruments: |                                   |                                   |              |   |   |   |   |   |   |   |   |
|                                       |                | Fixed income mutual funds:             |                                   |              |   |   |   |   |   |   |   |   |   |
|                                       |                |                                   | Short-term sector fund                 |              |  41 |   |   |  3 |   |   |  - |   |   |  44 |
|                                       |                |                                   | U.S. government sector fund            |              |  343 |   |   |  - |   |   |  (6) |   |   |  337 |
|                                       |                |                                   | Municipal sector fund                  |              |  21 |   |   |  - |   |   |  - |   |   |  21 |
|                                       |                |                                   | Investment grade corporate sector fund |              |  284 |   |   |  28 |   |   |  (2) |   |   |  310 |
|                                       |                |                                   | High-yield sector fund                 |              |  36 |   |   |  7 |   |   |  - |   |   |  43 |
|                                       |                |                                   | Real return sector fund                |              |  275 |   |   |  - |   |   |  (7) |   |   |  268 |
|                                       |                |                                   | Mortgage sector fund                   |              |  567 |   |   |  - |   |   |  (9) |   |   |  558 |
|                                       |                |                                   | Asset-backed securities sector fund    |              |  40 |   |   |  9 |   |   |  - |   |   |  49 |
|                                       |                |                                   | Emerging market sector fund            |              |  64 |   |   |  1 |   |   |  (1) |   |   |  64 |
|                                       |                |                                   | International sector fund              |              |  170 |   |   |  1 |   |   |  (1) |   |   |  170 |
|                                       |                | Equity mutual fund                     |                                   |  241         |   |   |  288 |   |   |  - |   |   |  529 |
| Total investments in marketable securities | $                   |  4,137                            |                                   | $                 |  344 |   | $ |  (31) |   | $ | 4,450 |

----

| Note 3 – Investments in Marketable Securities (Continued) |
|-----------------------------------------------------------------|
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   | March 31, 2013 |
|                                                            |   |   |   | Amortized |   | Unrealized |   | Unrealized |   | Fair |
| (Dollars in millions)                                           | cost |   |  gains |   | losses |   | value |
| Available-for-sale securities:                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                            | Debt instruments: |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   | U.S. government and agency obligations | $ |  101 |   | $ |  3 |   | $ |  - |   | $ |  104 |
|                                                            |   | Municipal debt securities |   |  14 |   |   |  2 |   |   |  - |   |   |  16 |
|                                                            |   | Certificates of deposit |   |  2,040 |   |   |  1 |   |   |  - |   |   |  2,041 |
|                                                            |   | Commercial paper |   |  495 |   |   |  - |   |   |  - |   |   |  495 |
|                                                            |   | Foreign government debt securities |   |  3 |   |   |  - |   |   |  - |   |   |  3 |
|                                                            |   | Corporate debt securities |   |  122 |   |   |  6 |   |   |  - |   |   |  128 |
|                                                            |   | Mortgage-backed securities: |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |   | U.S. government agency |   |  83 |   |   |  4 |   |   |  - |   |   |  87 |
|                                                            |   |   | Non-agency residential |   |  4 |   |   |  1 |   |   |  - |   |   |  5 |
|                                                            |   |   | Non-agency commercial |   |  50 |   |   |  1 |   |   |  - |   |   |  51 |
|                                                            |   | Asset-backed securities |   |  13 |   |   |  - |   |   |  - |   |   |  13 |
|                                                            | Equity instruments: |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   | Fixed income mutual funds: |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |   | Short-term sector fund |   |  40 |   |   |  3 |   |   |  - |   |   |  43 |
|                                                            |   |   | U.S. government sector fund |   |  296 |   |   |  16 |   |   |  - |   |   |  312 |
|                                                            |   |   | Municipal sector fund |   |  19 |   |   |  3 |   |   |  - |   |   |  22 |
|                                                            |   |   | Investment grade corporate sector fund |   |  273 |   |   |  54 |   |   |  - |   |   |  327 |
|                                                            |   |   | High-yield sector fund |   |  34 |   |   |  8 |   |   |  - |   |   |  42 |
|                                                            |   |   | Real return sector fund |   |  284 |   |   |  9 |   |   |  - |   |   |  293 |
|                                                            |   |   | Mortgage sector fund |   |  663 |   |   |  - |   |   | (15) |   |   |  648 |
|                                                            |   |   | Asset-backed securities sector fund |   |  38 |   |   |  9 |   |   |  - |   |   |  47 |
|                                                            |   |   | Emerging market sector fund |   |  63 |   |   |  3 |   |   |  - |   |   |  66 |
|                                                            |   |   | International sector fund |   |  163 |   |   |  7 |   |   |  - |   |   |  170 |
|                                                            |   | Equity mutual fund |   |  259 |   |   |  225 |   |   |  - |   |   |  484 |
| Total investments in marketable securities                      | $ |  5,057 |   | $ |  355 |   | $ | (15) |   | $ |  5,397 |

----

|                           |                            |
|--------------------------------|---------------------------------|
|                           |                            |   |   |   |   | Less than 12 months as of |
|                           |                            |   |   |   |   | December 31, 2013 |   | March 31, 2013 |
|                           |                            |   |   |   |   | Fair |   | Unrealized |   | Fair |   | Unrealized |
| (Dollars in millions)          |                            | value |   | losses |   | value |   |  losses |
| Available-for-sale securities: |                            |   |   |   |   |   |   |   |   |   |   |   |
|                           | Debt instruments:               |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |                            |   | U.S. government and agency |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |                            |   |   | obligations |   |  $ |  43 |   |  $ |  (1) |   |  $ |  - |   |  $ |  - |
|                           |                            |   | Corporate debt securities |   |   |  81 |   |   |  (2) |   |   |  - |   |   |  - |
|                           |                            |   | Mortgage backed securities: |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |                            |   |   | U.S. government agency |   |   |  30 |   |   |  (1) |   |   |  - |   |   |  - |
|                           |                            |   |   | Non-agency commercial |   |   |  17 |   |   |  (1) |   |   |  - |   |   |  - |
|                           | Equity instruments:             |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |                            |   | Fixed income mutual funds: |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |                            |   |   | U.S. government sector fund |   |   |  337 |   |   |  (6) |   |   |  - |   |   |  - |
|                           |                            |   |   | Investment grade corporate sector fund |   |   |  310 |   |   |  (2) |   |   |   - |   |   |   - |
|                           |                            |   |   | Real return sector fund |   |   |  268 |   |   |  (7) |   |   |  - |   |   |  - |
|                           |                            |   |   | Mortgage sector fund |   |   |  558 |   |   |  (9) |   |   |  532 |   |   |  (12) |
|                           |                            |   |   | Emerging market sector fund |   |   |  64 |   |   |  (1) |   |   |  - |   |   |  - |
|                           |                            |   |   | International sector fund |   |   |  170 |   |   |  (1) |   |   |  - |   |   |  - |
|                           | Total investments in marketable |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |                            |   | securities |   |  $ |  1,878 |   |  $ |  (31) |   |  $ |  532 |   |  $ |  (12) |
|                           |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                           |                     |   | Three Months Ended |      | Nine Months Ended |
|--------------------------------|--------------------------|--------|--------------------|-----------|-------------------|
|                           |                     |   | December 31,       |      | December 31,      |
| (Dollars in millions)          |                     | 2013   |               | 2012      |              | 2013 |   | 2012 |
| Available-for-sale securities: |                     |   |               |      |              |   |   |   |   |   |   |   |
|                           | Realized gains on sales  |   | $                  |  12  |              | $ |  - |   | $ |  28 |   | $ | 9 |
|                           | Realized losses on sales |   | $                  |  -   |              | $ |  - |   | $ |  (3) |   | $ |  (2) |
|                           | Impairment write-downs   |   | $                  |  (1) |              | $ |  - |   | $ |  (54) |   | $ | -  |

----

|                           |                                     | Due in 1 Year or | Due after 1 Year | Due after 5 Years | Due after        |     |      |     |       |       |
|--------------------------------|------------------------------------------|------------------|------------------|-------------------|------------------|----------|-----------|----------|------------|------------|
|                           |                                     | less             |             | through 5 years   | through 10 years | 10 years |      | Total    |       |
| (Dollars in millions)          | Amount                                   |             | Yield            | Amount            |             | Yield    | Amount    |     | Yield      | Amount     |   | Yield | Amount |   | Yield |
| Available-for-Sale Securities: |                                     |             |             |              |             |     |      |     |       |       |   |   |   |   |   |   |   |   |   |   |
| Debt instruments:              |                                     |             |             |              |             |     |      |     |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           | U.S. government and                      |             |             |              |             |     |      |     |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |    agency obligations     | $                |  -          |              |  -          | %        | $         |  65 |       |  1.50 | % | $ |  21 |   |  1.61 | % | $ |  1 |   |  3.57 | % | $ |  87 |   |  1.55 | % |
|                           | Municipal debt securities                |  2          |             |  2.39        |             |     |  -   |     |  -    |       |   |  1 |   |  5.57 |   |   |  11 |   |  5.69 |   |   |  14 |   |  5.18 |   |
|                           | Certificates of deposit                  |             |  1,533      |              |  0.29       |     |      |  -  |       |  -    |   |   |  - |   |  - |   |   |  - |   |  - |   |   |  1,533 |   |  0.29 |   |
|                           | Commercial paper                         |             |  125        |              |  0.23       |     |      |  -  |       |  -    |   |   |  - |   |  - |   |   |  - |   |  - |   |   |  125 |   |  0.23 |   |
|                           | Foreign government debt                  |             |             |              |             |     |      |     |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |    securities             |             |  3          |              |  2.93       |     |      |  -  |       |  -    |   |   |  - |   |  - |   |   |  - |   |  - |   |   |  3 |   |  2.93 |   |
|                           | Corporate debt                           |             |             |              |             |     |      |     |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |    securities             |             |  7          |              |  4.14       |     |      |  49 |       |  4.31 |   |   |  71 |   |  3.55 |   |   |  26 |   |  4.39 |   |   |  153 |   |  3.97 |   |
|                           | Mortgage-backed securities:              |             |             |              |             |     |      |     |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |    U.S. government agency |  -          |             |  -           |             |     |  -   |     |  -    |       |   |  4 |   |  3.91 |   |   |  60 |   |  3.24 |   |   |  64 |   |  3.28 |   |
|                           |    Non-agency residential |  -          |             |  -           |             |     |  -   |     |  -    |       |   |  - |   |  - |   |   |  5 |   |  10.17 |   |   |  5 |   |  10.17 |   |
|                           |    Non-agency commercial  |  -          |             |  -           |             |     |  3   |     |  1.87 |       |   |  1 |   |  3.64 |   |   |  46 |   |  3.35 |   |   |  50 |   |  3.29 |   |
|                           | Asset-backed securities                  |             |  -          |              |  -          |     |      |  5  |       |  0.75 |   |   |  4 |   |  1.87 |   |   |  14 |   |  2.54 |   |   |  23 |   |  1.97 |   |
| Debt instruments total         |                                     |  1,670      |             |  0.31        |             |     |  122 |     |  2.62 |       |   |  102 |   |  3.15 |   |   |  163 |   |  3.75 |   |   |  2,057 |   |  0.86 |   |
|                           |                                     |             |             |              |             |     |      |     |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity instruments:            |                                     |             |             |              |             |     |      |     |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           | Fixed income mutual funds                |             |             |              |             |     |      |     |       |       |   |   |   |   |   |   |   |   |   | 1,864 |   |  5.56 |   |
|                           | Equity mutual fund                       |             |             |              |             |     |      |     |       |       |   |   |   |   |   |   |   |   |   |   |   |   | 529 |   |  4.29 |   |
| Equity instruments total       |                                     |  -          |             |              |             |     |  -   |     |       |       |   |  - |   |   |   |   |  - |   |   |   |   |  2,393 |   |  5.28 |   |
| Total fair value               | $                                        |  1,670      |             |  0.31        | %                | $        |  122 |     |  2.62 | %          | $ |  102 |   |  3.15 | % | $ |  163 |   |  3.75 | % | $ |  4,450 |   |  3.24 | % |
| Total amortized cost           | $                                        |  1,670      |             |              |             | $        |  119 |     |       |       | $ |  104 |   |   |   | $ | 162 |   |   |   | $ | 4,137 |   |   |   |

----

| (Dollars in millions)                      | December 31, 2013                     |                              | March 31, 2013 |
|--------------------------------------------|---------------------------------------|-----------------------------------|----------------|
| Retail receivables                         | $                                     |  41,969                      |           |  $ |  40,508 |
| Pledged retail receivables                 |                                  |  8,172                       |           |   |  7,669 |
| Dealer financing                           |                                  |  16,590                      |           |   |  14,995 |
|                                       |                                  |  66,731                      |           |   |  63,172 |
|                                       |                                  |                              |           |   |   |   |   |
| Deferred origination (fees) and costs, net |                                  |  656                         |           |   |  634 |
| Deferred income                            |                                  | (874)                             |           |   | (794) |
| Allowance for credit losses                |                                  |                              |           |   |   |
|                                       | Retail and pledged retail receivables |                              | (291)          |   |   | (338) |
|                                       | Dealer financing                      |                              | (96)           |   |   | (107) |
|                                       |                                  | Total allowance for credit losses |           | (387) |   |   | (445) |
| Finance receivables, net                   | $                                     |  66,126                      |           |  $ |  62,567 |

----

| ·     | Performing – Account not classified as either Credit Watch, At Risk or Default |
|---------------------------|--------------------------------------------------------------------------------------|

| ·     | Credit Watch – Account designated for elevated attention |
|---------------------------|----------------------------------------------------------------|

| ·     | At Risk – Account where there is an increased likelihood that default may exist based on qualitative and quantitative factors |
|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Default – Account is not currently meeting contractual obligations or we have temporarily waived certain contractual requirements |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                      |                        | Retail Loan       |         | Commercial      |        |              |            |           |        |              |
|-----------------------------------------------------------------------------------------------------------|-----------------------------|-------------------|--------------|-----------------|-------------|-------------------|-----------------|----------------|-------------|-------------------|
| (Dollars in millions)                                                                                     |                        | December 31, 2013 |         | March 31, 2013  |        | December 31, 2013 |            | March 31, 2013 |        |              |   |   |   |   |
|                                                                                                      |                        |              |         |            |        |              |            |           |        |              |   |   |   |   |   |   |   |   |   |
| Aging of finance receivables:                                                                             |                        |              |         |            |        |              |            |           |        |              |   |   |   |   |   |   |
|                                                                                                      | Current                     |              | $            |  48,908    |        | $                 |  47,236    |           | $           |  413         |   | $ |  362 |   |   |   |   |   |   |
|                                                                                                      | 30-59 days past due         |              |         |  634       |        |              |  454       |           |        |  8           |   |   |  6 |   |   |   |   |   |   |
|                                                                                                      | 60-89 days past due         |              |         |  130       |        |              |  87        |           |        |  1           |   |   |  1 |   |   |   |   |   |   |
|                                                                                                      | 90 days or greater past due |              |  47     |            |        |  31          |            |           |  -     |              |   |  - |   |   |   |   |   |   |
| Total                                                                                                     |                        |  $           |  49,719 |            |  $     |  47,808      |            |  $        |  422   |              |  $ |  369 |   |   |   |   |   |   |
|                                                                                                      |                        |              |         |            |        |              |            |           |        |              |   |   |   |   |   |   |   |   |   |
|                                                                                                      |                        |              | Wholesale    |            | Real Estate |              | Working Capital |
| (Dollars in millions)                                                                                     |                        | December 31, 2013 |         | March 31, 20131 |        | December 31, 2013 |            | March 31, 2013 |        | December 31, 2013 |   | March 31, 2013 |
|                                                                                                      |                        |              |         |            |        |              |            |           |        |              |   |   |   |   |   |   |   |   |   |
| Credit quality indicators:                                                                                |                        |              |         |            |        |              |            |           |        |              |   |   |   |   |   |   |   |   |
|                                                                                                      | Performing                  |              | $            |  8,974     |        |  $           |  7,740     |           |  $     |  4,036       |   |  $ |  3,968 |   |  $ |  1,727 |   |  $ |  1,616 |
|                                                                                                      | Credit Watch                |              |         |  1,059     |        |              |  915       |           |        |  591         |   |   |  583 |   |   |  115 |   |   |  80 |
|                                                                                                      | At Risk                     |              |         |  35        |        |              |  33        |           |        |  20          |   |   |  28 |   |   |  26 |   |   |  28 |
|                                                                                                      | Default                     |              |         |  1         |        |              |  1         |           |        |  -           |   |   |  1 |   |   |  6 |   |   |  2 |
| Total                                                                                                     |                        |  $           |  10,069 |            |  $     |  8,689       |            |  $        |  4,647 |              |  $ |  4,580 |   |  $ |  1,874 |   |  $ |  1,726 |
| 1 Certain prior period amounts have been reclassified to conform to the current period presentation. |

----

| Note 4 – Finance Receivables, Net (Continued)                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                     |
| Impaired Finance Receivables                                                                                                                             |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The following table summarizes the information related to our impaired loans by class of finance receivables as of December 31, 2013 and March 31, 2013: |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                     |   | Impaired |   |   |   |   |   |   |   | Individually Evaluated |
|                                                                                                                                                     |   | Finance Receivables |   | Unpaid Principal Balance |   | Allowance |
|                                                                                                                                                     |   | December 31, |   | March 31, |   | December 31, |   | March 31, |   | December 31, |   | March 31, |
| (Dollars in millions)                                                                                                                                    |   | 2013 |   | 2013 |   | 2013 |   | 2013 |   | 2013 |   | 2013 |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired account balances individually evaluated for impairment with an allowance:                                                                       |   |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wholesale                                                                                                                                                |   |  $ |  17 |   |  $ |  16 |   |  $ |  17 |   |  $ |  16 |   |  $ |  1 |   |  $ |  3 |
| Real estate                                                                                                                                              |   |   |  27 |   |   |  33 |   |   |  27 |   |   |  33 |   |   |  7 |   |   |  7 |
| Working capital                                                                                                                                          |   |   |  23 |   |   |  24 |   |   |  23 |   |   |  24 |   |   |  22 |   |   |  23 |
| Total                                                                                                                                                    |   |  $ |  67 |   |  $ |  73 |   |  $ |  67 |   |  $ |  73 |   |  $ |  30 |   |  $ |  33 |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired account balances individually evaluated for impairment without an allowance:                                                                    |   |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wholesale                                                                                                                                                |   |  $ |  70 |   |  $ |  66 |   |  $ |  70 |   |  $ |  66 |   |   |   |   |   |   |
| Real estate                                                                                                                                              |   |   |  91 |   |   |  97 |   |   |  91 |   |   |  97 |   |   |   |   |   |   |
| Working capital                                                                                                                                          |   |   |  4 |   |   |  5 |   |   |  4 |   |   |  5 |   |   |   |   |   |   |
| Total                                                                                                                                                    |   |  $ |  165 |   |  $ |  168 |   |  $ |  165 |   |  $ |  168 |   |   |   |   |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired account balances aggregated and evaluated for impairment:                                                                                       |   |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail loan                                                                                                                                              |   |  $ |  345 |   |  $ |  415 |   |  $ |  341 |   |  $ |  410 |   |   |   |   |   |   |
| Commercial                                                                                                                                               |   |   |  1 |   |   |  1 |   |   |  1 |   |   |  1 |   |   |   |   |   |   |
| Total                                                                                                                                                    |   |  $ |  346 |   |  $ |  416 |   |  $ |  342 |   |  $ |  411 |   |   |   |   |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total impaired account balances:                                                                                                                         |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail loan                                                                                                                                              |   |  $ |  345 |   |  $ |  415 |   |  $ |  341 |   |  $ |  410 |   |   |   |   |   |   |
| Commercial                                                                                                                                               |   |   |  1 |   |   |  1 |   |   |  1 |   |   |  1 |   |   |   |   |   |   |
| Wholesale                                                                                                                                                |   |   |  87 |   |   |  82 |   |   |  87 |   |   |  82 |   |   |   |   |   |   |
| Real estate                                                                                                                                              |   |   |  118 |   |   |  130 |   |   |  118 |   |   |  130 |   |   |   |   |   |   |
| Working capital                                                                                                                                          |   |   |  27 |   |   |  29 |   |   |  27 |   |   |  29 |   |   |   |   |   |   |
| Total                                                                                                                                                    |   |  $ |  578 |   |  $ |  657 |   |  $ |  574 |   |  $ |  652 |   |   |   |   |   |   |

----

|                                                                                  |   | Average Impaired Finance Receivables |      | Interest Income Recognized     |
|---------------------------------------------------------------------------------------|--------|--------------------------------------|-----------|--------------------------------|
|                                                                                  |   | Three Months Ended December 31,      |      | Nine Months Ended December 31, |   | Three Months Ended December 31, |   | Nine Months Ended December 31, |
| (Dollars in millions)                                                                 | 2013   |                                 | 2012      |                           | 2013 |   | 2012 |   | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                                                                                  |   |                                 |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired account balances individually evaluated for impairment with an allowance:    |   |                                 |      |
|                                                                                  |   |                                 |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wholesale                                                                             |   | $                                    |  15  |                           | $ |  32 |   | $ |  17 |   | $ |  24 |   | $ |  - |   | $ |  - |   | $ |  - |   | $ |  - |
| Real estate                                                                           |   |                                 |  31  |                           |   |  34 |   |   |  33 |   |   |  85 |   |   |  - |   |   |  - |   |   |  1 |   |   |  1 |
| Working capital                                                                       |   |                                 |  23  |                           |   |  29 |   |   |  24 |   |   |  24 |   |   |  - |   |   |  - |   |   |  1 |   |   |  1 |
| Total                                                                                 |   | $                                    |  69  |                           | $ |  95 |   | $ |  74 |   | $ |  133 |   | $ |  - |   | $ |  - |   | $ |  2 |   | $ |  2 |
|                                                                                  |   |                                 |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired account balances individually evaluated for impairment without an allowance: |   |                                 |      |
|                                                                                  |   |                                 |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wholesale                                                                             |   | $                                    |  61  |                           | $ |  63 |   | $ |  61 |   | $ |  63 |   | $ |  1 |   | $ |  - |   | $ |  1 |   | $ |  1 |
| Real estate                                                                           |   |                                 |  92  |                           |   |  99 |   |   |  93 |   |   |  50 |   |   |  1 |   |   |  - |   |   |  3 |   |   |  2 |
| Working capital                                                                       |   |                                 |  4   |                           |   |  1 |   |   |  5 |   |   |  1 |   |   |  - |   |   |  - |   |   |  - |   |   |  - |
| Total                                                                                 |   | $                                    |  157 |                           | $ |  163 |   | $ |  159 |   | $ |  114 |   | $ |  2 |   | $ |  - |   | $ |  4 |   | $ |  3 |
|                                                                                  |   |                                 |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired account balances aggregated and evaluated for impairment:                    |   |                                 |      |
|                                                                                  |   |                                 |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail loan                                                                           |   | $                                    |  355 |                           | $ |  458 |   | $ |  379 |   | $ |  473 |   | $ |  7 |   | $ |  10 |   | $ |  22 |   | $ |  29 |
| Commercial                                                                            |   |                                 |  1   |                           |   |  1 |   |   |  1 |   |   |  1 |   |   |  - |   |   |  - |   |   |  - |   |   |  - |
| Total                                                                                 |   | $                                    |  356 |                           | $ |  459 |   | $ |  380 |   | $ |  474 |   | $ |  7 |   | $ |  10 |   | $ |  22 |   | $ |  29 |
|                                                                                  |   |                                 |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total impaired account balances:                                                      |   |                                 |      |                           |   |   |   |   |   |   |   |   |
|                                                                                  |   |                                 |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail loan                                                                           |   | $                                    |  355 |                           | $ |  458 |   | $ |  379 |   | $ |  473 |   | $ |  7 |   | $ |  10 |   | $ |  22 |   | $ |  29 |
| Commercial                                                                            |   |                                 |  1   |                           |   |  1 |   |   |  1 |   |   |  1 |   |   |  - |   |   |  - |   |   |  - |   |   |  - |
| Wholesale                                                                             |   |                                 |  76  |                           |   |  95 |   |   |  78 |   |   |  87 |   |   |  1 |   |   |  - |   |   |  1 |   |   |  1 |
| Real estate                                                                           |   |                                 |  123 |                           |   |  133 |   |   |  126 |   |   |  135 |   |   |  1 |   |   |  - |   |   |  4 |   |   |  3 |
| Working capital                                                                       |   |                                 |  27  |                           |   |  30 |   |   |  29 |   |   |  25 |   |   |  - |   |   |  - |   |   |  1 |   |   |  1 |
| Total                                                                                 |   | $                                    |  582 |                           | $ |  717 |   | $ |  613 |   | $ |  721 |   | $ |  9 |   | $ |  10 |   | $ |  28 |   | $ |  34 |

----

----

| Investments in operating leases, net consisted of the following: |
|------------------------------------------------------------------|
|                                                             |   |   |   |   |   |
| (Dollars in millions)                                            | December 31, 2013 |   | March 31, 2013 |
| Investments in operating leases                                  | $ |  29,405 |   | $ |  25,957 |
| Pledged investments in operating leases                          |   |  324 |   |   |  630 |
|                                                             |   |  29,729 |   |   |  26,587 |
| Deferred origination (fees) and costs, net                       |   | (128) |   |   | (125) |
| Deferred income                                                  |   | (782) |   |   | (609) |
| Accumulated depreciation                                         |   | (5,209) |   |   | (5,387) |
| Allowance for credit losses                                      |   | (69) |   |   | (82) |
| Investments in operating leases, net                             | $ |  23,541 |   | $ |  20,384 |

----

|                                               |   |   | Three Months Ended |   | Nine Months Ended |
|----------------------------------------------------|--------|--------|--------------------|--------|-------------------|
|                                               |   |   | December 31,       |   | December 31,      |
| (Dollars in millions)                              |   |   | 2013               |   |              | 2012 |   |   | 2013 |   |   | 2012 |
| Allowance for credit losses at beginning of period |   | $      |  467          |   | $                 |  549 |   | $ |  527 |   | $ |  619 |
| Provision for credit losses                        |   |   |  63           |   |              |  88 |   |   |  102 |   |   |  107 |
| Charge-offs, net of recoveries                     |   |   |  (74)         |   |              |  (77) |   |   |  (173) |   |   |  (166) |
| Allowance for credit losses at end of period       |   | $      |  456          |   | $                 |  560 |   | $ |  456 |   | $ |  560 |

| (Dollars in millions)                                                              | Retail Loan |         | Commercial  |    | Dealer Products |      | Total   |
|------------------------------------------------------------------------------------|-------------|--------------|-------------|---------|-----------------|-----------|---------|
|                                                                               |        |         |        |    |            |      |    |   |   |   |   |   |
| Allowance for Credit Losses for Finance Receivables:                               |
|                                                                               |        |         |        |    |            |      |    |   |   |   |   |   |
| Beginning balance, October 1, 2013                                                 | $           |  290    |        |  $ |  4         |      |  $ |  102 |   |  $ |  396 |
| Charge-offs                                                                        |        |         |  (74)  |    |            |  -   |    |   |  - |   |   |  (74) |
| Recoveries                                                                         |        |         |  14    |    |            |  -   |    |   |  - |   |   |  14 |
| Provisions                                                                         |        |         |  59    |    |            |  (2) |    |   |  (6) |   |   |  51 |
| Ending balance, December 31, 2013                                                  | $           |  289    |        |  $ |  2         |      |  $ |  96 |   |  $ |  387 |
|                                                                               |        |         |        |    |            |      |    |   |   |   |   |   |
| Beginning balance, April 1, 2013                                                   | $           |  333    |        |  $ |  5         |      |  $ |  107 |   |  $ |  445 |
| Charge-offs                                                                        |        |         |  (190) |    |            |  (1) |    |   |  - |   |  $ |  (191) |
| Recoveries                                                                         |        |         |  49    |    |            |  -   |    |   |  - |   |   |  49 |
| Provisions                                                                         |        |         |  97    |    |            |  (2) |    |   |  (11) |   |   |  84 |
| Ending balance, December 31, 2013                                                  | $           |  289    |        |  $ |  2         |      |  $ |  96 |   |  $ |  387 |
|                                                                               |        |         |        |    |            |      |    |   |   |   |   |   |
| Ending balance: Individually evaluated for     impairment | $           |  -      |        |  $ |  -         |      |  $ |  30 |   |  $ |  30 |
| Ending balance: Collectively evaluated for     impairment | $           |  289    |        |  $ |  2         |      |  $ |  66 |   |  $ |  357 |
|                                                                               |        |         |        |    |            |      |    |   |   |   |   |   |
| Gross Finance Receivables:                                                         |        |         |        |    |            |      |    |   |   |   |   |
|                                                                               |        |         |        |    |            |      |    |   |   |   |   |   |
| Ending balance, December 31, 2013                                                  | $           |  49,719 |        |  $ |  422       |      |  $ |  16,590 |   |  $ |  66,731 |
| Ending balance: Individually evaluated for     impairment | $           |  -      |        |  $ |  -         |      |  $ |  232 |   |  $ |  232 |
| Ending balance: Collectively evaluated for     impairment | $           |  49,719 |        |  $ |  422       |      |  $ |  16,358 |   |  $ |  66,499 |

----

| (Dollars in millions)                                | Retail Loan |         | Commercial  |   | Dealer Products |      | Total  |
|------------------------------------------------------|-------------|--------------|-------------|--------|-----------------|-----------|--------|
|                                                 |        |         |        |   |            |      |   |   |   |   |   |   |
| Allowance for Credit Losses for Finance Receivables: |
|                                                 |        |         |        |   |            |      |   |   |   |   |   |   |
| Beginning balance, October 1, 2012                   | $           |  333    |        | $      |  5         |      | $      |  122 |   | $ |  460 |
| Charge-offs                                          |        |         |  (79)  |   |            |  -   |   |   |  - |   |   |  (79) |
| Recoveries                                           |        |         |  13    |   |            |  1   |   |   |  - |   |   |  14 |
| Provisions                                           |        |         |  89    |   |            |  (1) |   |   |  (4) |   |   |  84 |
| Ending balance, December 31, 2012                    | $           |  356    |        | $      |  5         |      | $      |  118 |   | $ |  479 |
|                                                 |        |         |        |   |            |      |   |   |   |   |   |   |
| Beginning balance, April 1, 2012                     | $           |  395    |        | $      |  10        |      | $      |  119 |   | $ |  524 |
| Charge-offs                                          |        |         |  (188) |   |            |  (1) |   |   |  - |   |   |  (189) |
| Recoveries                                           |        |         |  46    |   |            |  1   |   |   |  - |   |   |  47 |
| Provisions                                           |        |         |  103   |   |            |  (5) |   |   |  (1) |   |   |  97 |
| Ending balance, December 31, 2012                    | $           |  356    |        | $      |  5         |      | $      |  118 |   | $ |  479 |
|                                                 |        |         |        |   |            |      |   |   |   |   |   |   |
| Ending balance: Individually evaluated for           |        |         |        |   |            |      |   |   |   |   |   |
|    impairment                         | $           |  -      |        | $      |  -         |      | $      |  43 |   | $ |  43 |
| Ending balance: Collectively evaluated for           |        |         |        |   |            |      |   |   |   |   |   |
|    impairment                         | $           |  356    |        | $      |  5         |      | $      |  75 |   | $ |  436 |
|                                                 |        |         |        |   |            |      |   |   |   |   |   |   |
| Gross Finance Receivables:                           |        |         |        |   |            |      |   |   |   |   |   |
|                                                 |        |         |        |   |            |      |   |   |   |   |   |   |
| Ending balance, December 31, 2012                    | $           |  47,880 |        | $      |  362       |      | $      |  14,937 |   | $ |  63,179 |
| Ending balance: Individually evaluated for           |        |         |        |   |            |      |   |   |   |   |   |
|     impairment                   | $           |  -      |        | $      |  -         |      | $      |  259 |   | $ |  259 |
| Ending balance: Collectively evaluated for           |        |         |        |   |            |      |   |   |   |   |   |
|     impairment                   | $           |  47,880 |        | $      |  362       |      | $      |  14,678 |   | $ |  62,920 |

----

| (Dollars in millions)                       |                | December 31, 2013 | March 31, 2013 |
|---------------------------------------------|---------------------|-------------------|----------------|
| Aggregate balances 60 or more days past due |                |              |           |   |   |   |   |   |   |   |   |
|                                        | Finance receivables |              |           |   |   |   | $ |   |  178 |   | $ |  119 |
|                                        | Operating leases    |              |           |   |   |   |   |   |  47 |   |   |  36 |
| Total                                       |                |              |           |   |   | $ |   |  225 |   | $ |  155 |

| (Dollars in millions)   | 30 - 59 DaysPast Due  | 60 - 89 DaysPast Due  | 90 Daysor GreaterPast Due | Total PastDue | Current | TotalFinance Receivables | 90 Days or Greater Past Due and Accruing |
|-------------------------|-----------------------|-----------------------|---------------------------|---------------|---------|--------------------------|------------------------------------------|
|                    |                  |                  |                      |          |    |                     |                                     |   |   |   |   |   |   |   |
| As of December 31, 2013 |                  |                  |                      |          |    |                     |                                     |   |   |   |   |   |
|                    |                  |                  |                      |          |    |                     |                                     |   |   |   |   |   |   |   |
| Retail loan             | $                     |  634             | $                         |  130     | $       |  47                 | $                                        |  811 | $ |  48,908 | $ |  49,719 | $ |  47 |
| Commercial              |                  |  8               |                      |  1       |    |  -                  |                                     |  9 |   |  413 |   |  422 |   |  - |
| Wholesale               |                  |  -               |                      |  -       |    |  -                  |                                     |  - |   |  10,069 |   |  10,069 |   |  - |
| Real estate             |                  |  -               |                      |  -       |    |  -                  |                                     |  - |   |  4,647 |   |  4,647 |   |  - |
| Working capital         |                  |  -               |                      |  -       |    |  -                  |                                     |  - |   |  1,874 |   |  1,874 |   |  - |
| Total                   | $                     |  642             | $                         |  131     | $       |  47                 | $                                        |  820 | $ |  65,911 | $ |  66,731 | $ |  47 |
|                    |                  |                  |                      |          |    |                     |                                     |   |   |   |   |   |   |   |
| (Dollars in millions)   | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 Daysor GreaterPast Due | Total PastDue | Current | TotalFinance Receivables | 90 Days or Greater Past Due and Accruing |
|                    |                  |                  |                      |          |    |                     |                                     |   |   |   |   |   |   |   |
| As of March 31, 2013    |                  |                  |                      |          |    |                     |                                     |   |   |   |   |   |
|                    |                  |                  |                      |          |    |                     |                                     |   |   |   |   |   |   |   |
| Retail loan             | $                     |  454             | $                         |  87      | $       |  31                 | $                                        |  572 | $ |  47,236 | $ |  47,808 | $ |  31 |
| Commercial              |                  |  6               |                      |  1       |    |  -                  |                                     |  7 |   |  362 |   |  369 |   |  - |
| Wholesale               |                  |  -               |                      |  -       |    |  -                  |                                     |  - |   |  8,689 |   |  8,689 |   |  - |
| Real estate             |                  |  -               |                      |  -       |    |  -                  |                                     |  - |   |  4,580 |   |  4,580 |   |  - |
| Working capital         |                  |  -               |                      |  -       |    |  -                  |                                     |  - |   |  1,726 |   |  1,726 |   |  - |
| Total                   | $                     |  460             | $                         |  88      | $       |  31                 | $                                        |  579 | $ |  62,593 | $ |  63,172 | $ |  31 |

----

----

|                                |                                                             |        |                   |        |      |      |      |    |         |         |     |      |        |    |         |         |    |      |        |
|-------------------------------------|------------------------------------------------------------------|-------------|------------------------|-------------|-----------|-----------|-----------|---------|--------------|--------------|----------|-----------|-------------|---------|--------------|--------------|---------|-----------|-------------|
|                                |                                                             |        | Hedge accounting       |        | Non-hedge |      | Total     |
| As of December 31, 2013             |                                                             | derivatives | accounting derivatives |
|                                |                                                             |        | Notional               |        | Fair      |      | Notional  |    | Fair         |         | Notional |      | Fair        |
| (Dollars in millions)               |                                                             |        | value                  |        | value     |      | value     |
| Other assets                        |                                                             |        |                   |        |      |      |      |    |         |         |     |      |        |    |         |         |    |      |
| Interest rate swaps                 |                                                             |  $     |  465              |        |  $   |  31  |      |  $ |  24,402 |         |  $  |  347 |        |  $ |  24,867 |         |  $ |  378 |
| Foreign currency swaps              |                                                             |        |  1,182            |        |      |  470 |      |    |  6,992  |         |     |  524 |        |    |  8,174  |         |    |  994 |
|                                | Total                                                            |        |  $                |  1,647 |      |  $   |  501 |    |  $      |  31,394 |     |  $   |  871   |    |  $      |  33,041 |    |  $   |  1,372 |
|                                |                                                             |        |                   |        |      |      |      |    |         |         |     |      |        |    |         |         |    |      |        |
| Counterparty netting and collateral |                                                             |        |                   |        |      |      |      |    |         |         |     |      |        | (1,323) |
|                                | Carrying value of derivative contracts – Other assets      |        |                   |        |      |      |      |    |         |  $      |  49 |
|                                |                                                             |        |                   |        |      |      |      |    |         |         |     |      |        |    |         |         |    |      |        |
| Other liabilities                   |                                                             |        |                   |        |      |      |      |    |         |         |     |      |        |    |         |         |    |      |
| Interest rate swaps                 |                                                             | $           |  -                |        |  $   |  -   |      |  $ |  55,265 |         |  $  |  656 |        |  $ |  55,265 |         |  $ |  656 |
| Interest rate caps                  |                                                             |        |  -                |        |      |  -   |      |    |  50     |         |     |  -   |        |    |  50     |         |    |  -   |
| Foreign currency swaps              |                                                             |        |  157              |        |      |  10  |      |    |  3,866  |         |     |  352 |        |    |  4,023  |         |    |  362 |
|                                | Total                                                            |        | $                      |  157   |      |  $   |  10  |    |  $      |  59,181 |     |  $   |  1,008 |    |  $      |  59,338 |    |  $   |  1,018 |
|                                |                                                             |        |                   |        |      |      |      |    |         |         |     |      |        |    |         |         |    |      |        |
| Counterparty netting and collateral |                                                             |        |                   |        |      |      |      |    |         |         |     |      |        | (1,005) |
|                                | Carrying value of derivative contracts – Other liabilities |        |                   |        |      |      |      |    |         |  $      |  13 |

----

| Note 7 – Derivatives, Hedging Activities and Interest Expense (Continued) |
|---------------------------------------------------------------------------------|
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   | Hedge accounting |   | Non-hedge |   | Total |
| As of March 31, 2013                                                            |   | derivatives | accounting derivatives |
|                                                                            |   |   | Notional |   | Fair |   | Notional |   | Fair |   | Notional |   | Fair |
| (Dollars in millions)                                                           |   |   | value |   | value |   | value |
| Other Assets                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps                                                             |   |  $ |  465 |   |  $ |  44 |   |  $ |  22,336 |   |  $ |  536 |   |  $ |  22,801 |   |  $ |  580 |
| Foreign currency swaps                                                          |   |   |  1,246 |   |   |  491 |   |   |  7,498 |   |   |  648 |   |   |  8,744 |   |   |  1,139 |
|                                                                            | Total |   |  $ |  1,711 |   |  $ |  535 |   |  $ |  29,834 |   |  $ |  1,184 |   |  $ |  31,545 |   |  $ |  1,719 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Counterparty netting and collateral                                             |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,661) |
|                                                                            | Carrying value of derivative contracts – Other assets |   |   |   |   |   |   |   |  $ |  58 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other liabilities                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps                                                             |   | $ |  - |   |  $ |  - |   |  $ |  51,342 |   |  $ |  766 |   |  $ |  51,342 |   |  $ |  766 |
| Interest rate caps                                                              |   |   |  - |   |   |  - |   |   |  50 |   |   |  - |   |   |  50 |   |   |  - |
| Foreign currency swaps                                                          |   |   |  790 |   |   |  29 |   |   |  3,103 |   |   |  102 |   |   |  3,893 |   |   |  131 |
| Embedded derivatives                                                            |   |   |  - |   |   |  - |   |   |  64 |   |   |  12 |   |   |  64 |   |   |  12 |
|                                                                            | Total |   | $ |  790 |   |  $ |  29 |   |  $ |  54,559 |   |  $ |  880 |   |  $ |  55,349 |   |  $ |  909 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Counterparty netting and collateral                                             |   |   |   |   |   |   |   |   |   |   |   |   |   | (892) |
|                                                                            | Carrying value of derivative contracts – Other liabilities |   |   |   |   |   |   |   |  $ |  17 |

----

|                                                                 |                   |                                                    | Three Months Ended |      |      | Nine Months Ended |
|----------------------------------------------------------------------|------------------------|---------------------------------------------------------|--------------------|-----------|-----------|-------------------|
|                                                                 |                   |                                                    | December 31,       |      |      | December 31,      |
| (Dollars in millions)                                                |                   | 2013                                                    |               |      | 2012      |              |   | 2013 |   |   | 2012 |
| Interest expense on debt                                             | $                      |  325                                               |               |  $   |  330 |              |  $ |  963 |   |  $ |  1,014 |
| Interest expense on hedge accounting derivatives                     |                   | (18)                                                    |               |      | (25)      |              |   | (67) |   |   | (79) |
| Interest expense on non-hedge accounting foreign currency            |                   |                                                    |               |      |      |              |   |   |   |   |   |
|                                                                 | swaps                  |                                                    | (54)               |      |      | (64)              |   |   | (159) |   |   | (198) |
| Interest expense on non-hedge accounting interest rate swaps         |                   |  39                                                |               |      |  85  |              |   |  166 |   |   |  283 |
|                                                                 |                   | Interest expense on debt and derivatives                |               |  292 |      |              |  326 |   |   |  903 |   |   |  1,020 |
|                                                                 |                   |                                                    |               |      |      |              |   |   |   |   |   |   |   |
| Loss on hedge accounting derivatives:                                |                   |                                                    |               |      |      |              |   |   |   |   |   |
|                                                                 | Interest rate swaps    |                                                    |  5            |      |      |  5           |   |   |  15 |   |   |  10 |
|                                                                 | Foreign currency swaps |                                                    |  32           |      |      |  37          |   |   |  16 |   |   |  148 |
|                                                                 |                   | Loss on hedge accounting derivatives                    |               |  37  |      |              |  42 |   |   |  31 |   |   |  158 |
| Less hedged item:  change in fair value of fixed rate debt |                   | (38)                                                    |               |      | (44)      |              |   | (34) |   |   | (166) |
|                                                                 |                   | Ineffectiveness related to hedge accounting derivatives |               | (1)       |      |              | (2) |   |   | (3) |   |   | (8) |
|                                                                 |                   |                                                    |               |      |      |              |   |   |   |   |   |   |   |
| (Gain) loss from foreign currency transactions and non-hedge         |                   |                                                    |               |      |      |              |   |   |   |   |   |
| accounting derivatives:                                              |                   |                                                    |               |      |      |              |   |   |   |   |   |
|                                                                 |                   | Gain on foreign currency transactions                   | (87)               |      |      | (189)             |   |   | (185) |   |   | (37) |
|                                                                 |                   | Loss (gain) on foreign currency swaps                   |               |  153 |      |              |  224 |   |   |  384 |   |   | (14) |
|                                                                 |                   | Loss (gain) on interest rate swaps                      |               |  29  |      |              | (75) |   |   |  137 |   |   | (336) |
| Total interest expense                                               | $                      |  386                                               |               |  $   |  284 |              |  $ |  1,236 |   |  $ |  625 |

|                                                            |   | Three Months Ended |   | Nine Months Ended |
|-----------------------------------------------------------------|--------|--------------------|--------|-------------------|
|                                                            |   | December 31,       |   | December 31,      |
| (Dollars in millions)                                           |   | 2013               |   |              | 2012 |   |   | 2013 |   |   | 2012 |
| Gains related to hedge accounting derivatives                   | $      |  -            |   | $                 | (1) |   | $ |  - |   | $ | (2) |
| Total credit valuation adjustment allocated to interest expense | $      |  -            |   | $                 | (1) |   | $ |  - |   | $ | (2) |

----

| Note 8 – Other Assets and Other Liabilities              |
|----------------------------------------------------------------|
|                                                           |   |   |   |   |   |
| Other assets and other liabilities consisted of the following: |
|                                                           |   |   |   |   |   |
| (Dollars in millions)                                          | December 31, 2013 |   | March 31, 2013 |
| Other assets:                                                  |   |   |   |   |   |
|                                                           |   |   |   |   |   |
| Notes receivable from affiliates                               | $ |  1,309 |   | $ |  931 |
| Used vehicles held for sale                                    |   |  194 |   |   |  265 |
| Deferred charges                                               |   |  112 |   |   |  120 |
| Income taxes receivable                                        |   |  - |   |   |  13 |
| Derivative assets                                              |   |  49 |   |   |  58 |
| Other assets                                                   |   |  490 |   |   |  353 |
| Total other assets                                             | $ |  2,154 |   | $ |  1,740 |
|                                                           |   |   |   |   |   |
| Other liabilities:                                             |   |   |   |   |   |
|                                                           |   |   |   |   |   |
| Unearned insurance premiums and contract revenues              | $ |  1,639 |   | $ |  1,528 |
| Derivative liabilities                                         |   |  13 |   |   |  17 |
| Accounts payable and accrued expenses                          |   |  867 |   |   |  685 |
| Deferred income                                                |   |  316 |   |   |  255 |
| Other liabilities                                              |   |  160 |   |   |  192 |
| Total other liabilities                                        | $ |  2,995 |   | $ |  2,677 |

----

| Note 9 – Debt                                                                         |   |         |   |      |                             |         |       |                   |   |       |    |
|---------------------------------------------------------------------------------------------|--------|--------------|--------|-----------|----------------------------------|--------------|------------|------------------------|--------|------------|---------|
|                                                                                        |   |         |   |      |                             |         |       |                   |   |       |    |   |
| Debt and the related weighted average contractual interest rates are summarized as follows: |
|                                                                                        |   |         |   |      |                             |         |       |                   |   |       |    |   |
|                                                                                        |   |         |   |      |                             |         |       |  Weighted average |
|                                                                                        |   |         |   |      |  contractual interest rates |
|                                                                                        |   | December 31, |   | March 31, |                             | December 31, |       | March 31,              |
| (Dollars in millions)                                                                       | 2013   | 2013         | 2013   | 2013      |
| Commercial paper                                                                            | $      |  27,012 |   | $         |  24,590                     |         |  0.19 |  %                |   |  0.24 |  % |
| Unsecured notes and loans payable                                                           |   |  47,938 |   |      |  46,707                     |         |  1.98 |  %                |   |  2.19 |  % |
| Secured notes and loans payable                                                             |   |  7,195  |   |      |  7,009                      |         |  0.55 |  %                |   |  0.60 |  % |
| Carrying value adjustment                                                                   |   |  548    |   |      |  526                        |         |       |                   |   |       |    |
| Total debt                                                                                  | $      |  82,693 |   | $         |  78,832                     |         |  1.27 |  %                |   |  1.43 |  % |

----

|                            |   | December 31, 2013 |
|---------------------------------|--------|-------------------|
|                            |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |              |   |   | VIE Assets |   | VIE Liabilities |
|                            |   |              |   | Gross | Net |   |   |   |   |   |   |   |
| (Dollars in millions)           |   | RestrictedCash    |   | SecuritizedAssets |   | SecuritizedAssets |   | OtherAssets |   | Debt |   | OtherLiabilities |
|                            |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail finance receivables      |   | $                 |  459 |   | $ |  8,172 |   | $ |  8,064 |   | $ |  3 |   | $ |  7,133 |   | $ | 1 |
| Investments in operating leases |   |              |  21 |   |   |  324 |   |   |  210 |   |   |  6 |   |   |  62 |   |   |  - |
|    Total         |   | $                 |  480 |   | $ |  8,496 |   | $ |  8,274 |   | $ |  9 |   | $ |  7,195 |   | $ |  1 |

|                           |   | March 31, 2013 |
|--------------------------------|--------|----------------|
|                           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   |           |   |   | VIE Assets |   | VIE Liabilities |
|                           |   |           |   | Gross | Net |   |   |   |   |   |   |   |
| (Dollars in millions)          |   | RestrictedCash |   | SecuritizedAssets |   | SecuritizedAssets |   | OtherAssets |   | Debt |   | OtherLiabilities |
|                           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail finance receivables     |   | $              |  458 |   | $ |  7,669 |   | $ |  7,556 |   | $ |  3 |   | $ |  6,738 |   | $ |  1 |
| Investment in operating leases |   |           |  33 |   |   |  630 |   |   |  434 |   |   |  9 |   |   |  271 |   |   |  - |
|    Total        |   | $              |  491 |   | $ |  8,299 |   | $ |  7,990 |   | $ |  12 |   | $ |  7,009 |   | $ |  1 |

----

----

----

| (Dollars in millions)            | December 31, 2013                                         |                                     | March 31, 2013 |
|----------------------------------|-----------------------------------------------------------|------------------------------------------|----------------|
| Commitments:                     |                                                      |                                     |           |   |   |
|                             | Credit facilities commitments with                        |                                     |           |   |   |   |
|                             |                                                      | vehicle and industrial equipment dealers | $              |  1,137 |   | $ |  1,106 |
|                             | Minimum lease commitments                                 |                                     |  66       |   |   |  74 |
| Total commitments                |                                                      |  1,203                              |           |   |  1,180 |
|                             | Guarantees of affiliate pollution control and solid waste |                                     |           |   |   |   |
|                             |                                                      | disposal bonds                           |           |  100 |   |   |  100 |
| Total commitments and guarantees | $                                                         |  1,303                              |           | $ |  1,280 |

|                   |   |   | Future minimum |
|------------------------|--------|--------|----------------|
| Years ending March 31, |   |   | lease payments |
| 2014                   |   |   | $              |  5 |
| 2015                   |   |   |           |  19 |
| 2016                   |   |   |           |  18 |
| 2017                   |   |   |           |  13 |
| 2018                   |   |   |           |  8 |
| Thereafter             |   |   |           |  3 |
| Total                  |   |   | $              |  66 |

----

----

----

----

|                                             |                                                       |   | Three Months Ended |   | Nine Months Ended |
|--------------------------------------------------|------------------------------------------------------------|--------|--------------------|--------|-------------------|
|                                             |                                                       |   | December 31,       |   | December 31,      |
| (Dollars in millions)                            |                                                       | 2013   |               |   | 2012              |   |   | 2013 |   |   | 2012 |
| Net financing revenues:                          |                                                       |   |               |   |              |   |   |   |   |   |   |
|                                             | Manufacturers’ subvention support and other revenues | $      |  251          |   | $                 |  238 |   | $ |  733 |   | $ |  700 |
|                                             | Credit support fees incurred                               | $      | (21)               |   | $                 | (18) |   | $ | (61) |   | $ | (53) |
|                                             | Foreign exchange loss on loans payable to affiliates       | $      |  -            |   | $                 |  - |   | $ |  - |   | $ | (39) |
|                                             | Interest expense on loans payable to affiliates            | $      | (1)                |   | $                 | (1) |   | $ | (2) |   | $ | (5) |
|                                             |                                                       |   |               |   |              |   |   |   |   |   |   |   |   |
| Insurance earned premiums and contract revenues: |                                                       |   |               |   |              |   |   |   |   |   |   |
|                                             | Affiliate insurance premiums and contract revenues         | $      |  33           |   | $                 |  36 |   | $ |  99 |   | $ |  128 |
|                                             |                                                       |   |               |   |              |   |   |   |   |   |   |   |   |
| Investments and other income, net:               |                                                       |   |               |   |              |   |   |   |   |   |   |
|                                             | Interest earned on notes receivable from affiliates        | $      |  1            |   | $                 |  1 |   | $ |  4 |   | $ |  4 |
|                                             |                                                       |   |               |   |              |   |   |   |   |   |   |   |   |
| Expenses:                                        |                                                       |   |               |   |              |   |   |   |   |   |   |
|                                             | Shared services charges and other expenses                 | $      |  15           |   | $                 |  16 |   | $ |  45 |   | $ |  48 |
|                                             | Employee benefits expense                                  | $      |  9            |   | $                 |  7 |   | $ |  27 |   | $ |  22 |

----

| (Dollars in millions)                | December 31, 2013                                           |   | March 31, 2013 |
|--------------------------------------|-------------------------------------------------------------|--------|----------------|
| Assets:                              |                                                        |   |           |   |   |
| Investments in marketable securities |                                                        |   |           |   |   |
|                                 | Investments in affiliates commercial paper                  | $      |  -        |   | $ |  2 |
|                                 |                                                        |   |           |   |   |   |   |
| Finance receivables, net             |                                                        |   |           |   |   |
|                                 | Accounts receivable from affiliates                         | $      |  78       |   | $ |  22 |
|                                 | Direct finance lease receivables from affiliates            | $      |  6        |   | $ |  6 |
|                                 | Notes receivable under home loan programs                   | $      |  15       |   | $ |  18 |
|                                 | Deferred retail subvention income from affiliates           | $      | (776)          |   | $ | (699) |
|                                 |                                                        |   |           |   |   |   |   |
| Investments in operating leases, net |                                                        |   |           |   |   |
|                                 | Leases to affiliates                                        | $      |  7        |   | $ |  7 |
|                                 | Deferred lease subvention income from affiliates            | $      | (761)          |   | $ | (604) |
|                                 |                                                        |   |           |   |   |   |   |
| Other assets                         |                                                        |   |           |   |   |
|                                 | Notes receivable from affiliates                            | $      |  1,309    |   | $ |  931 |
|                                 | Other receivables from affiliates                           | $      |  2        |   | $ |  1 |
|                                 | Subvention support receivable from affiliates               | $      |  118      |   | $ |  88 |
|                                 |                                                        |   |           |   |   |   |   |
| Liabilities:                         |                                                        |   |           |   |   |
| Other liabilities                    |                                                        |   |           |   |   |
|                                 | Unearned affiliate insurance premiums and contract revenues | $      |  246      |   | $ |  235 |
|                                 | Accounts payable to affiliates                              | $      |  51       |   | $ |  192 |
|                                 | Notes payable to affiliate                                  | $      |  24       |   | $ |  48 |
|                                 |                                                        |   |           |   |   |   |   |
| Shareholder’s Equity:          |                                                        |   |           |   |   |
|                                 | Dividends paid                                              | $      |  665      |   | $ |  1,487 |
|                                 | Stock-based compensation                                    | $      |  2        |   | $ |  2 |

----

|                                            |                                          | Finance      |        | Insurance    |        | Intercompany |   |     |    |
|-------------------------------------------------|-----------------------------------------------|--------------|-------------|--------------|-------------|--------------|--------|----------|---------|
| Fiscal 2014:                                    | operations                                    | operations   |        | eliminations |        | Total        |
| Three Months Ended December 31, 2013            |                                          |         |        |         |        |         |   |     |    |   |   |
|                                            |                                          |         |        |         |        |         |   |     |    |   |   |   |
| Total financing revenues                        | $                                             |  1,869  |        | $            |  -     |         | $      |  7  |    | $ |  1,876 |
| Insurance earned premiums and contract revenues |                                          |  -      |        |         |  148   |         |   | (7)      |    |   |  141 |
| Investment and other income, net                |                                          |  22     |        |         |  46    |         |   |  -  |    |   |  68 |
| Total gross revenues                            |                                          |  1,891  |        |         |  194   |         |   |  -  |    |   |  2,085 |
|                                            |                                          |         |        |         |        |         |   |     |    |   |   |   |
| Less:                                           |                                          |         |        |         |        |         |   |     |    |   |   |
|                                            | Depreciation on operating leases              |         |  1,033 |         |        |  -      |   |     |  - |   |   |  1,033 |
|                                            | Interest expense                              |         |  386   |         |        |  -      |   |     |  - |   |   |  386 |
|                                            | Provision for credit losses                   |         |  63    |         |        |  -      |   |     |  - |   |   |  63 |
|                                            | Operating and administrative expenses         |         |  190   |         |        |  50     |   |     |  - |   |   |  240 |
|                                            | Insurance losses and loss adjustment expenses |         |  -     |         |        |  57     |   |     |  - |   |   |  57 |
|                                            | Provision for income taxes                    |         |  82    |         |        |  31     |   |     |  - |   |   |  113 |
| Net income                                      | $                                             |  137    |        | $            |  56    |         | $      |  -  |    | $ |  193 |
|                                            |                                          |         |        |         |        |         |   |     |    |   |   |   |
| Nine Months Ended December 31, 2013             |                                          |         |        |         |        |         |   |     |    |   |   |
|                                            |                                          |         |        |         |        |         |   |     |    |   |   |   |
| Total financing revenues                        | $                                             |  5,495  |        | $            |  -     |         | $      |  21 |    | $ |  5,516 |
| Insurance earned premiums and contract revenues |                                          |  -      |        |         |  444   |         |   | (21)     |    |   |  423 |
| Investment and other income, net                |                                          |  56     |        |         |  32    |         |   |  -  |    |   |  88 |
| Total gross revenues                            |                                          |  5,551  |        |         |  476   |         |   |  -  |    |   |  6,027 |
|                                            |                                          |         |        |         |        |         |   |     |    |   |   |   |
| Less:                                           |                                          |         |        |         |        |         |   |     |    |   |   |
|                                            | Depreciation on operating leases              |         |  2,950 |         |        |  -      |   |     |  - |   |   |  2,950 |
|                                            | Interest expense                              |         |  1,236 |         |        |  -      |   |     |  - |   |   |  1,236 |
|                                            | Provision for credit losses                   |         |  102   |         |        |  -      |   |     |  - |   |   |  102 |
|                                            | Operating and administrative expenses         |         |  553   |         |        |  147    |   |     |  - |   |   |  700 |
|                                            | Insurance losses and loss adjustment expenses |         |  -     |         |        |  196    |   |     |  - |   |   |  196 |
|                                            | Provision for income taxes                    |         |  267   |         |        |  48     |   |     |  - |   |   |  315 |
| Net income                                      | $                                             |  443    |        | $            |  85    |         | $      |  -  |    | $ |  528 |
|                                            |                                          |         |        |         |        |         |   |     |    |   |   |   |
| Total assets at December 31, 2013               | $                                             |  96,665 |        | $            |  3,651 |         | $      | (665)    |    | $ |  99,651 |

----

|                                                                                                            |                                          |       | Finance1     |        | Insurance |         | Intercompany |   |     |    |
|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------|------------|--------------|-------------|-----------|--------------|--------------|--------|----------|---------|
| Fiscal 2013:                                                                                                    |                                          | operations |         | operations  |      | eliminations |         | Total  |
| Three Months Ended December 31, 2012                                                                            |                                          |       |         |        |      |         |         |   |     |    |   |   |
|                                                                                                            |                                          |       |         |        |      |         |         |   |     |    |   |   |   |
| Total financing revenues                                                                                        |                                          | $          |  1,815  |        | $         |  -      |         | $      |  6  |    | $ |  1,821 |
| Insurance earned premiums and contract revenues                                                                 |                                          |       |  -      |        |      |  146    |         |   | (6)      |    |   |  140 |
| Investment and other income, net                                                                                |                                          |       |  12     |        |      |  51     |         |   |  -  |    |   |  63 |
| Total gross revenues                                                                                            |                                          |       |  1,827  |        |      |  197    |         |   |  -  |    |   |  2,024 |
|                                                                                                            |                                          |       |         |        |      |         |         |   |     |    |   |   |   |
| Less:                                                                                                           |                                          |       |         |        |      |         |         |   |     |    |   |   |
|                                                                                                            | Depreciation on operating leases              |       |         |  907   |      |         |  -      |   |     |  - |   |   |  907 |
|                                                                                                            | Interest expense                              |       |         |  284   |      |         |  -      |   |     |  - |   |   |  284 |
|                                                                                                            | Provision for credit losses                   |       |         |  88    |      |         |  -      |   |     |  - |   |   |  88 |
|                                                                                                            | Operating and administrative expenses         |       |         |  182   |      |         |  47     |   |     |  - |   |   |  229 |
|                                                                                                            | Insurance losses and loss adjustment expenses |       |         |  -     |      |         |  77     |   |     |  - |   |   |  77 |
|                                                                                                            | Provision for income taxes                    |       |         |  126   |      |         |  30     |   |     |  - |   |   |  156 |
| Net income                                                                                                      |                                          | $          |  240    |        | $         |  43     |         | $      |  -  |    | $ |  283 |
|                                                                                                            |                                          |       |         |        |      |         |         |   |     |    |   |   |   |
| Nine Months Ended December 31, 2012                                                                             |                                          |       |         |        |      |         |         |   |     |    |   |   |
|                                                                                                            |                                          |       |         |        |      |         |         |   |     |    |   |   |   |
| Total financing revenues                                                                                        |                                          | $          |  5,422  |        | $         |  -      |         | $      |  18 |    | $ |  5,440 |
| Insurance earned premiums and contract revenues                                                                 |                                          |       |  -      |        |      |  453    |         |   | (18)     |    |   |  435 |
| Investment and other income, net                                                                                |                                          |       |  33     |        |      |  103    |         |   |  -  |    |   |  136 |
| Total gross revenues                                                                                            |                                          |       |  5,455  |        |      |  556    |         |   |  -  |    |   |  6,011 |
|                                                                                                            |                                          |       |         |        |      |         |         |   |     |    |   |   |   |
| Less:                                                                                                           |                                          |       |         |        |      |         |         |   |     |    |   |   |
|                                                                                                            | Depreciation on operating leases              |       |         |  2,653 |      |         |  -      |   |     |  - |   |   |  2,653 |
|                                                                                                            | Interest expense                              |       |         |  625   |      |         |  -      |   |     |  - |   |   |  625 |
|                                                                                                            | Provision for credit losses                   |       |         |  107   |      |         |  -      |   |     |  - |   |   |  107 |
|                                                                                                            | Operating and administrative expenses         |       |         |  542   |      |         |  132    |   |     |  - |   |   |  674 |
|                                                                                                            | Insurance losses and loss adjustment expenses |       |         |  -     |      |         |  231    |   |     |  - |   |   |  231 |
|                                                                                                            | Provision for income taxes                    |       |         |  560   |      |         |  75     |   |     |  - |   |   |  635 |
| Net income                                                                                                      |                                          | $          |  968    |        | $         |  118    |         | $      |  -  |    | $ |  1,086 |
|                                                                                                            |                                          |       |         |        |      |         |         |   |     |    |   |   |   |
| Total assets at December 31, 2012                                                                               |                                          | $          |  90,184 |        | $         |  3,454  |         | $      | (463)    |    | $ |  93,175 |
| 1  Certain prior period amounts have been reclassified to conform to the current period presentation. |

----

| ·    | Changes in general business and economic conditions, as well as in consumer demand and the competitive environment in the automotive markets in the United States; |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·    | A decline in TMS sales volume and the level of TMS sponsored subvention programs; |
|--------------------------|-----------------------------------------------------------------------------------|

| ·    | Increased competition from other financial institutions seeking to increase their share of financing for Toyota vehicles; |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·    | Fluctuations in interest rates and currency exchange rates; |
|--------------------------|-------------------------------------------------------------|

| ·    | Changes or disruptions in our funding environment or access to the global capital markets; |
|--------------------------|--------------------------------------------------------------------------------------------|

| ·    | Failure or changes in commercial soundness of our counterparties and other financial institutions; |
|---------------------|----------------------------------------------------------------------------------------------------|

| ·    | Changes in our credit ratings and those of TMC; |
|---------------------|-------------------------------------------------|

| ·    | Changes in the laws and regulatory requirements, including as a result of recent financial services legislation, federal and state regulatory examinations and investigations, and related costs; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·    | Natural disasters, changes in fuel prices, manufacturing disruptions and production suspensions of Toyota, Lexus and Scion vehicles models and related parts supply; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·    | Operational risks, including security breaches or cyber attacks; |
|---------------------|------------------------------------------------------------------|

| ·    | Changes in prices of used vehicles and their effect on residual values of our off-lease vehicles and return rates; |
|---------------------|--------------------------------------------------------------------------------------------------------------------|

| ·    | The failure of a customer or dealer to meet the terms of any contract with us, or otherwise fail to perform as agreed; and |
|---------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·    | Recalls announced by TMS and the perceived quality of Toyota, Lexus and Scion vehicles. |
|---------------------|-----------------------------------------------------------------------------------------|

----

----

----

| RESULTS OF OPERATIONS |               |   |              |   |   |   |   |      |   |   |        |
|-----------------------|--------------------|--------|-------------------|--------|--------|--------|--------|-----------|--------|--------|-------------|
|                  |               |   |              |   |   |   |   |      |   |   |        |
| Fiscal 2014 Summary   |               |   |              |   |   |   |   |      |   |   |        |
|                  |               |   |              |   |   |   |   |      |   |   |        |
|                  | Three Months Ended |   | Nine Months Ended |
|                  | December 31,       |   | December 31,      |
| (Dollars in millions) | 2013               |   | 2012              |   | 2013   |   | 2012   |
| Net income:           |               |   |              |   |   |   |   |      |   |   |        |
| Finance operations1   | $                  | 137    |              | $      | 240    |   | $      |  443 |   | $      |  968   |
| Insurance operations1 |               | 56     |              |   | 43     |   |   | 85        |   |   | 118         |
| Total net income      | $                  | 193    |              | $      | 283    |   | $      |  528 |   | $      |  1,086 |

| 1 | Refer to Note 15 - Segment Information of the Notes to Consolidated Financial Statement for the total asset balances of our finance and insurance operations. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Finance Operations                                                                                              |                                                               |               |       |     |         |              |       |   |     |        |        |     |        |      |       |
|-----------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|--------------------|------------|----------|--------------|-------------------|------------|--------|----------|-------------|-------------|----------|-------------|-----------|------------|
|                                                                                                            |                                                               |               |       |     |         |              |       |   |     |        |        |     |        |      |       |   |
|                                                                                                            |                                                               | Three Months Ended |       |     |         | Nine Months Ended |       |   |
|                                                                                                            |                                                               | December 31,       | Percentage |     | December 31, | Percentage        |
| (Dollars in millions)                                                                                           |                                                               | 2013               |       | 20121    | Change       |              | 2013       |   | 20121    | Change      |
| Financing revenues:                                                                                             |                                                               |               |       |     |         |              |       |   |     |        |        |     |        |      |       |
| Operating lease                                                                                                 | $                                                                  |  1,290        |       | $        |  1,197  |  8           | %          |   | $        |  3,754 |        | $        |  3,541 |  6   | %          |
| Retail2                                                                                                         |                                                               |  475          |       |     |  514    |  (8)         | %          |   |     |  1,436 |        |     |  1,571 |  (9) | %          |
| Dealer                                                                                                          |                                                               |  104          |       |     |  104    |  -           | %          |   |     |  305   |        |     |  310   |  (2) | %          |
| Total financing revenues                                                                                        |                                                               |  1,869        |       |     |  1,815  |  3           | %          |   |     |  5,495 |        |     |  5,422 |  1   | %          |
|                                                                                                            |                                                               |               |       |     |         |              |       |   |     |        |        |     |        |      |       |   |
| Investment and other income, net                                                                                |  22                                                           |               |       |  12 |  83     | %                 |       |   |  56 |        |        |  33 |  70    | %         |
| Gross revenues from finance operations                                                                          |                                                               |  1,891        |       |     |  1,827  |  4           | %          |   |     |  5,551 |        |     |  5,455 |  2   | %          |
|                                                                                                            |                                                               |               |       |     |         |              |       |   |     |        |        |     |        |      |       |   |
| Less:                                                                                                           |                                                               |               |       |     |         |              |       |   |     |        |        |     |        |      |       |
|                                                                                                            | Depreciation on operating     leases      |  1,033        |       |     |  907    |  14          | %          |   |     |  2,950 |        |     |  2,653 |  11  | %          |
|                                                                                                            | Interest expense                                                   |               |  386  |     |         |  284         |  36   | %      |     |        |  1,236 |     |        |  625 |  98   | % |
|                                                                                                            | Provision for credit losses                                        |               |  63   |     |         |  88          |  (28) | %      |     |        |  102   |     |        |  107 |  (5)  | % |
|                                                                                                            | Operating and administrative     expenses |  190          |       |     |  182    |  4           | %          |   |     |  553   |        |     |  542   |  2   | %          |
|                                                                                                            | Provision for income taxes                                         |               |  82   |     |         |  126         |  (35) | %      |     |        |  267   |     |        |  560 |  (52) | % |
| Net income from finance                                                                                         |                                                               |               |       |     |         |              |       |   |     |        |        |     |        |      |       |
|                                                                                                            | operations                                                         | $                  |  137  |     | $            |  240         |  (43) | %      |     | $           |  443   |     | $           |  968 |  (54) | % |
|                                                                                                            |                                                               |               |       |     |         |              |       |   |     |        |        |     |        |      |       |   |
| 1  Certain prior period amounts have been reclassified to conform to the current period presentation. |                                                               |
| 2  Includes direct finance lease revenues.                                                            |                                                               |

| ·    | Operating lease revenues increased 6 percent and 8 percent in the first nine months and third quarter of fiscal 2014, respectively, as compared to the same periods in fiscal 2013, primarily due to higher average outstanding earning asset balances, partially offset by lower portfolio yields. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·    | Retail contract revenues decreased 9 percent and 8 percent in the first nine months and third quarter of fiscal 2014, respectively, as compared to the same periods in fiscal 2013, primarily due to a decrease in our portfolio yields, partially offset by higher average outstanding earning asset balances. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·    | Dealer financing revenues decreased 2 percent in the first nine months of fiscal 2014 and were consistent in the third quarter of fiscal 2014, as compared to the same periods in fiscal 2013, primarily due to a decrease in our portfolio yields, partially offset by higher average outstanding earning asset balances. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                        | Three Months Ended |       | Nine Months Ended |
|-----------------------------------------------------------------------------|--------------------|------------|-------------------|
|                                                                        | December 31,       |       | December 31,      |
| (Dollars in millions)                                                       | 2013               |       | 2012              |   | 2013 |   | 2012 |
| Interest expense on debt                                                    |  $            |  325  |              |  $ |  330 |   |  $ |  963 |   |  $ |  1,014 |
| Interest expense on derivatives                                             |               |  (33) |              |   |  (4) |   |   |  (60) |   |   |  6 |
| Interest expense on debt and derivatives                                    |               |  292  |              |   |  326 |   |   |  903 |   |   |  1,020 |
|                                                                        |               |       |              |   |   |   |   |   |   |   |   |
| Ineffectiveness related to hedge accounting derivatives                     |               |  (1)  |              |   |  (2) |   |   |  (3) |   |   |  (8) |
| Gain on non-hedge accounting foreign currency   transactions |  (87)         |       |              |  (189) |   |   |  (185) |   |   |  (37) |
| Loss (gain) on non-hedge accounting foreign currency   swaps |  153          |       |              |  224 |   |   |  384 |   |   |  (14) |
| Loss (gain) on non-hedge accounting interest rate swaps                     |               |  29   |              |   |  (75) |   |   |  137 |   |   |  (336) |
| Total interest expense                                                      | $                  |  386  |              |  $ |  284 |   |  $ |  1,236 |   |  $ |  625 |

----

----

----

| Insurance Operations                                                         |                |               |        |    |         |              |       |   |    |      |        |    |      |        |       |
|------------------------------------------------------------------------------|---------------------|--------------------|-------------|---------|--------------|-------------------|------------|--------|---------|-----------|-------------|---------|-----------|-------------|------------|
|                                                                         |                |               |        |    |         |              |       |   |    |      |        |    |      |        |       |   |
| The following table summarizes key results of our Insurance Operations:      |                |
|                                                                         |                |               |        |    |         |              |       |   |    |      |        |    |      |        |       |   |
|                                                                         |                | Three Months Ended |        |    |         | Nine Months Ended |       |   |
|                                                                         |                | December 31,       | Percentage  |    | December 31, | Percentage        |
| (Dollars in millions)                                                        | 2013                |               | 2012        | Change  |         | 2013              |       | 2012   | Change  |
| Agreements (units in thousands)                                              |                |               |        |    |         |              |       |   |    |      |        |    |      |        |       |
|                                                                         | Issued              |               |  427   |    |         |  379         |  13   | %      |    |      |  1,361 |    |      |  1,161 |  17   | % |
|                                                                         | In force            |               |  5,968 |    |         |  5,751       |  4    | %      |    |      |  5,968 |    |      |  5,751 |  4    | % |
|                                                                         |                |               |        |    |         |              |       |   |    |      |        |    |      |        |       |   |
| Insurance earned premiums     and contract revenues |  $             |  148          |        |  $ |  146    |  1           | %          |   |  $ |  444 |        |  $ |  453 |  (2)   | %          |
| Investment and other income, net                                             |                |  46           |        |    |  51     |  (10)        | %          |   |    |  32  |        |    |  103 |  (69)  | %          |
| Gross revenues from insurance                                                |                |               |        |    |         |              |       |   |    |      |        |    |      |        |       |
|                                                                         | operations          |               |  194   |    |         |  197         |  (2)  | %      |    |      |  476   |    |      |  556   |  (14) | % |
|                                                                         |                |               |        |    |         |              |       |   |    |      |        |    |      |        |       |   |
| Less:                                                                        |                |               |        |    |         |              |       |   |    |      |        |    |      |        |       |
| Insurance losses and loss                                                    |                |               |        |    |         |              |       |   |    |      |        |    |      |        |       |
|                                                                         | adjustment expenses |               |  57    |    |         |  77          |  (26) | %      |    |      |  196   |    |      |  231   |  (15) | % |
| Operating and administrative                                                 |                |               |        |    |         |              |       |   |    |      |        |    |      |        |       |
|                                                                         | expenses            |               |  50    |    |         |  47          |  6    | %      |    |      |  147   |    |      |  132   |  11   | % |
| Provision for income taxes                                                   |                |  31           |        |    |  30     |  3           | %          |   |    |  48  |        |    |  75  |  (36)  | %          |
| Net income from insurance     operations            |  $             |  56           |        |  $ |  43     |  30          | %          |   |  $ |  85  |        |  $ |  118 |  (28)  | %          |

----

----

| FINANCIAL CONDITION                                                                  |               |       |         |              |       |   |        |   |        |   |      |   |
|--------------------------------------------------------------------------------------|--------------------|------------|--------------|-------------------|------------|--------|-------------|--------|-------------|--------|-----------|--------|
|                                                                                 |               |       |         |              |       |   |        |   |        |   |      |   |
| Vehicle Financing Volume and Net Earning Assets                                      |               |
|                                                                                 |               |       |         |              |       |   |        |   |        |   |      |   |
| The composition of our vehicle contract volume and market share is summarized below: |
|                                                                                 |               |       |         |              |       |   |        |   |        |   |      |   |
|                                                                                 | Three Months Ended |       |         | Nine Months Ended |       |   |
|                                                                                 | December 31,       | Percentage | December 31, | Percentage        |
| (units in thousands):                                                                | 2013               |       | 2012         |              | Change     | 2013   |        | 2012   |        | Change |
| TMS new sales volume1                                                                | 425                |       | 401          |              |  6    | %      |  1,342 |   |  1,244 |   |  8   | %      |
|                                                                                 |               |       |         |              |       |   |        |   |        |   |      |   |
| Vehicle financing volume2                                                            |               |       |         |              |       |   |        |   |        |   |      |   |
| New retail contracts                                                                 | 167                |       | 160          |              |  4    | %      | 545         |   | 536         |   |  2   | %      |
| Used retail contracts                                                                | 73                 |       | 74           |              |  (1)  | %      | 233         |   | 217         |   |  7   | %      |
| Lease contracts                                                                      | 107                |       | 79           |              |  35   | %      | 340         |   | 238         |   |  43  | %      |
| Total                                                                                | 347                |       | 313          |              |  11   | %      |  1,118 |   |  991   |   |  13  | %      |
|                                                                                 |               |       |         |              |       |   |        |   |        |   |      |   |
| TMS subvened vehicle financing volume (units included in the above table):           |               |       |         |              |
| New retail contracts                                                                 | 92                 |       | 94           |              |  (2)  | %      | 321         |   | 305         |   |  5   | %      |
| Used retail contracts                                                                | 19                 |       | 28           |              |  (32) | %      | 65          |   | 68          |   |  (4) | %      |
| Lease contracts                                                                      | 99                 |       | 62           |              |  60   | %      | 313         |   | 193         |   |  62  | %      |
| Total                                                                                | 210                |       | 184          |              |  14   | %      | 699         |   | 566         |   |  23  | %      |
|                                                                                 |               |       |         |              |       |   |        |   |        |   |      |   |
| TMS subvened vehicle financing volume as a percent of vehicle financing volume:      |               |       |         |
| New retail contracts                                                                 | 55.1               | %          | 58.8         | %                 |       |   | 58.9        | %      | 56.9        | %      |      |   |
| Used retail contracts                                                                | 26.0               | %          | 37.8         | %                 |       |   | 27.9        | %      | 31.3        | %      |      |   |
| Lease contracts                                                                      | 92.5               | %          | 78.5         | %                 |       |   | 92.1        | %      | 81.1        | %      |      |   |
| Overall subvened contracts                                                           | 60.5               | %          | 58.8         | %                 |       |   | 62.5        | %      | 57.1        | %      |      |   |
|                                                                                 |               |       |         |              |       |   |        |   |        |   |      |   |
| Market share:3                                                                       |               |       |         |              |       |   |        |   |        |   |      |   |
| Retail contracts                                                                     |  39.0         | %          |  39.9   | %                 |       |   |  40.5  | %      |  43.0  | %      |      |   |
| Lease contracts                                                                      |  25.2         | %          |  19.7   | %                 |       |   |  25.3  | %      |  19.1  | %      |      |   |
| Total                                                                                |  64.2         | %          |  59.6   | %                 |       |   |  65.8  | %      |  62.1  | %      |      |   |

| 1   | Represents total domestic TMS sales of new Toyota, Lexus and Scion vehicles excluding sales under dealer rental car and commercial fleet programs and sales of a private Toyota distributor.  TMS new sales volume is comprised of approximately 85% Toyota and 15% Lexus vehicles for the first nine months of fiscal 2014 and 81% Toyota and 19% Lexus vehicles for the third quarter of fiscal 2014.  TMS new sales volume is comprised of approximately 85% Toyota and 15% Lexus vehicles for the first nine months of fiscal 2013 and 83% Toyota and 17% Lexus vehicles for the third quarter of fiscal 2013. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | Total financing volume is comprised of approximately 81% Toyota, 16% Lexus, and 3% non-Toyota/Lexus vehicles for the first nine months of fiscal 2014 and approximately 78% Toyota, 19% Lexus, and 3% non-Toyota/Lexus vehicles third quarter of fiscal 2014.  Total financing volume is comprised of approximately 82% Toyota, 15% Lexus, and 3% non-Toyota/Lexus vehicles for the first nine months of fiscal 2013 and 81% Toyota, 16% Lexus, and 3% non-Toyota/Lexus for the third quarter of fiscal 2013. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | Represents the percentage of total domestic TMS sales of new Toyota, Lexus and Scion vehicles financed by us, excluding non-Toyota/Lexus sales, sales under dealer rental car and commercial fleet programs and sales of a private Toyota distributor. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| The composition of our net earning assets is summarized below: |
|----------------------------------------------------------------|
|                                                           |   |   |   |   |   |   | Percentage |
| (Dollars in millions)                                          | December 31, 2013 |   | March 31, 2013 |  Change |
| Net Earning Assets                                             |   |   |   |   |   |   |   |
| Finance receivables, net                                       |   |   |   |   |   |   |   |
|                                                           | Retail finance receivables, net1 | $ |  49,632 |   | $ |  47,679 |  4 | % |
|                                                           | Dealer financing, net |   |  16,494 |   |   |  14,888 |  11 | % |
| Total finance receivables, net                                 |   |  66,126 |   |   |  62,567 |  6 | % |
| Investments in operating leases, net                           |   |  23,541 |   |   |  20,384 |  15 | % |
| Net earning assets                                             | $ |  89,667 |   | $ |  82,951 |  8 | % |
|                                                           |   |   |   |   |   |   |   |   |
| Dealer Financing                                               |
| (Number of dealers serviced)                                   |
| Toyota and Lexus dealers2                                      |   |  1,003 |   |   |  996 |  1 | % |
| Vehicle dealers outside of the                                 |   |   |   |   |   |   |   |
|                                                           | Toyota/Lexus dealer network |   |  479 |   |   |  480 |  - | % |
| Industrial equipment dealers                                   |   |  139 |   |   |  140 | (1) | % |
| Total number of dealers receiving                              |   |   |   |   |   |   |   |
|                                                           | wholesale financing |   |  1,621 |   |   |  1,616 |  - | % |
|                                                           |   |   |   |   |   |   |   |   |
| Dealer inventory outstanding (units in thousands)              |   |  350 |   |   |  300 |  17 | % |

----

| Depreciation on Operating Leases                                                                                |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            |   | Three Months Ended |   |   |   | Nine Months Ended |   |   |
|                                                                                                            |   | December 31, | Percentage | December 31, | Percentage |
|                                                                                                            |   | 2013 | 20121 | Change | 2013 | 20121 | Change |
| Depreciation on operating                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            | leases (dollars in millions) | $ |  1,033 | $ |  907 |  14 | % |   | $ |  2,950 | $ |  2,653 |  11 | % |
| Average operating lease units                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            | outstanding (in thousands) |   |  881 |   |  810 |  9 | % |   |   |  853 |   |  798 |  7 | % |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1  Certain prior period amounts have been reclassified to conform to the current period presentation. |

----

|                                                              |                                 |                  | December 31, |       | March 31, |        | December 31, |
|-------------------------------------------------------------------|--------------------------------------|-----------------------|--------------|------------|-----------|-------------|--------------|
|                                                              |                                 |                  | 2013         |       | 2013      |        | 2012         |
| Net charge-offs as a percentage of average gross earning assets 1 |                                 |                  |         |       |      |        |         |   |   |   |   |
|                                                              |                                 | Finance receivables   |         |  0.29 |  %   |        |         |  0.29 |  % |   |   |  0.31 |  % |
|                                                              |                                 | Operating leases      |         |  0.19 |  %   |        |         |  0.18 |  % |   |   |  0.17 |  % |
|                                                              |                                 | Total                 |         |  0.27 |  %   |        |         |  0.27 |  % |   |   |  0.28 |  % |
|                                                              |                                 |                  |         |       |      |        |         |   |   |   |   |   |   |
| Default frequency as a percentage of outstanding contracts        |                                 |  1.13            |  %      |       |      |  1.23  |  %      |   |   |  1.27 |  % |
| Average loss severity per unit                                    | $                                    |  6,208           |         |       | $         |  5,737 |         |   | $ |  5,508 |   |
|                                                              |                                 |                  |         |       |      |        |         |   |   |   |   |   |   |
| Aggregate balances for accounts 60 or more days past due as a     |                                 |                  |         |       |      |        |         |   |   |   |   |
|                                                              | percentage of gross earning assets 2 |                  |         |       |      |        |         |   |   |   |   |   |
|                                                              |                                 | Finance receivables 3 |         |  0.27 |  %   |        |         |  0.19 |  % |   |   |  0.27 |  % |
|                                                              |                                 | Operating leases 3    |         |  0.20 |  %   |        |         |  0.18 |  % |   |   |  0.23 |  % |
|                                                              |                                 | Total                 |         |  0.25 |  %   |        |         |  0.19 |  % |   |   |  0.26 |  % |

| 1 | Net charge-off ratios have been annualized using nine month results for the periods ended December 31, 2013 and 2012. |
|---|-----------------------------------------------------------------------------------------------------------------------|

| 2 | Substantially all retail, direct finance lease and operating lease receivables do not involve recourse to the dealer in the event of customer default. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Includes accounts in bankruptcy and excludes accounts for which vehicles have been repossessed. |
|---|-------------------------------------------------------------------------------------------------|

----

|                                               | Three Months Ended |      | Nine Months Ended |
|----------------------------------------------------|--------------------|-----------|-------------------|
|                                               | December 31,       |      | December 31,      |
| (Dollars in millions)                              | 2013               |      | 2012              |   | 2013 |   | 2012 |
| Allowance for credit losses at beginning of period | $                  |  467 |              | $ |  549 |   | $ |  527 |   | $ |  619 |
| Provision for credit losses                        |               |  63  |              |   |  88 |   |   |  102 |   |   |  107 |
| Charge-offs, net of recoveries1                    |               | (74)      |              |   | (77) |   |   | (173) |   |   | (166) |
| Allowance for credit losses at end of period       | $                  |  456 |              | $ |  560 |   | $ |  456 |   | $ |  560 |

----

| (Dollars in millions)              | December 31, 2013 |         | March 31, 2013 |
|------------------------------------|-------------------|--------------|----------------|
| Commercial paper1                  | $                 |  27,012 |           | $ |  24,590 |
| Unsecured notes and loans payable2 |              |  47,938 |           |   |  46,707 |
| Secured notes and loans payable    |              |  7,195  |           |   |  7,009 |
| Carrying value adjustment3         |              |  548    |           |   |  526 |
| Total debt                         | $                 |  82,693 |           | $ |  78,832 |

| 1   | Includes unamortized premium/discount. |
|---------------|----------------------------------------|

| 2   | Includes unamortized premium/discount and the effects of foreign currency transaction gains and losses on non-hedged or de-designated notes and loans payable which are denominated in foreign currencies. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | Represents the effects of fair value adjustments to debt in hedging relationships, accrued redemption premiums, and the unamortized fair value adjustments on the hedged item for terminated fair value hedge accounting relationships. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (Dollars in millions)                                 | U.S. mediumterm notes("MTNs")and domesticbonds |          | EuroMTNs("EMTNs") |   | Eurobonds     |   | Other  |      |   Total unsecured notes and loans payable5 |
|-------------------------------------------------------|------------------------------------------------|---------------|-------------------|--------|---------------|--------|--------|-----------|------------------------------------------------------|
| Balance at March 31, 20131                            | $                                              |  26,716  |              | $      |  13,598  |   | $      |  803 |                                                 | $ |  5,777 |   | $ |  46,894 |
| Issuances during the nine months                      |                                           |          |              |   |          |   |   |      |                                                 |   |   |   |   |   |
|      ended December 31, 2013 |                                           |  7,650 2 |              |   |  2,242 3 |   |   |  -   |                                                 |   |  650 4 |   |   |  10,542 |
| Maturities and terminations                           |                                           |          |              |   |          |   |   |      |                                                 |   |   |   |   |   |
|      during the nine months  |                                           |          |              |   |          |   |   |      |                                                 |   |   |   |   |   |
|      ended December 31, 2013 |                                           |  (5,545) |              |   |  (2,647) |   |   |  -   |                                                 |   |  (900) |   |   |  (9,092) |
| Balance at December 31, 20131                         | $                                              |  28,821  |              | $      |  13,193  |   | $      |  803 |                                                 | $ |  5,527 |   | $ |  48,344 |

| 1     | Amounts represent par values and as such exclude unamortized premium/discount, foreign currency transaction gains and losses on debt denominated in foreign currencies, fair value adjustments to debt in hedge accounting relationships, accrued redemption premiums, and the unamortized fair value adjustments on the hedged item for terminated hedge accounting relationships.  Par values of non-U.S. currency denominated notes are determined using foreign exchange rates applicable as of the issuance dates. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | MTNs and domestic bonds issued during the first nine months of fiscal 2014 had terms to maturity ranging from approximately 1 year to 10 years, and had interest rates at the time of issuance ranging from 0.2 percent to 2.0 percent. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | EMTNs issued during the first nine months of fiscal 2014 had terms to maturity ranging from approximately 1 year to 7 years, and had interest rates at the time of issuance ranging from 0.5 percent to 3.8 percent. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | Consists of long-term borrowings, with terms to maturity ranging from approximately 1 year to 3 years, and had interest rates at the time of issuance ranging from 0.1 percent to 0.5 percent. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | Consists of fixed and floating rate debt.  Upon the issuance of fixed rate debt, we generally elect to enter into pay float interest rate swaps.  Refer to “Derivative Instruments” for further discussion. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·     | Overcollateralization:  The principal of the Securitized Assets that exceeds the principal amount of the related secured debt. |
|---------------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Excess spread: The expected interest collections on the Securitized Assets that exceed the expected fees and expenses of the special purpose entity, including the interest payable on the debt, net of swap settlements, if any. |
|---------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Cash reserve funds:  A portion of the proceeds from the issuance of asset-backed securities may be held by the securitization trust in a segregated reserve fund and may be used to pay principal and interest to security holders and other interest holders if collections on the underlying receivables are insufficient. |
|---------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Yield supplement arrangements: Additional overcollateralization may be provided to supplement the future contractual interest payments from pledged receivables with relatively low contractual interest rates. |
|---------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·    | Subordinated notes: The subordination of principal and interest payments on subordinated notes may provide additional credit enhancement to holders of senior notes. |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| (Dollars in millions)                                            | December 31, 2013 |          | March 31, 2013 |
|------------------------------------------------------------------|-------------------|---------------|----------------|
| Gross derivatives assets, net of credit valuation adjustment     | $                 |  1,372   |           | $ |  1,719 |
| Less: Counterparty netting and collateral                        |              |  (1,323) |           |   |  (1,661) |
| Derivative assets, net                                           | $                 |  49      |           | $ |  58 |
|                                                             |              |          |           |   |   |
| Gross derivative liabilities, net of credit valuation adjustment | $                 |  1,018   |           | $ |  897 |
| Less: Counterparty netting and collateral                        |              |  (1,005) |           |   |  (892) |
| Derivative liabilities, net                                      | $                 |  13      |           | $ |  5 |
| Embedded derivative liabilities                                  | $                 |  -       |           | $ |  12 |

----

| (Dollars in millions)                  | December 31, 2013 |     | March 31, 2013 |
|----------------------------------------|-------------------|----------|----------------|
| Credit Rating                          |              |     |           |   |   |
| AA                                     | $                 |  -  |           | $ |  1 |
| A                                      |              |  50 |           |   |  56 |
| BBB                                    |              |  -  |           |   |  2 |
| Total net counterparty credit exposure | $                 |  50 |           | $ |  59 |

----

----

----

----

----

|   | TOYOTA MOTOR CREDIT CORPORATION |
|--------|---------------------------------|
|   | (Registrant)                    |

| Date:   February 12, 2014 | By     /S/ MICHAEL GROFF |
|------------------------------------------|---------------------------------------------------|
|                                     |                                              |
|                                     |    Michael Groff                   |
|                                     |     President and             |
|                                     | Chief Executive Officer                           |
|                                     | (Principal Executive Officer)                     |

| Date:   February 12, 2014 | By   /S/ CHRIS BALLINGER                                                     |
|------------------------------------------|---------------------------------------------------------------------------------------------|
|                                     |                                                                                        |
|                                     |    Chris Ballinger                                                           |
|                                     |            Senior Vice President and |
|                                     |   Chief Financial Officer                                                         |
|                                     |   (Principal Financial Officer)                                                   |

----

| Exhibit Number |   | Description                                                                                                                                                                                                                                   |   | Method ofFiling |
|----------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|
|           |   |                                                                                                                                                                                                                                          |   |            |
| 3.1            |   | Restated Articles of Incorporation filed with the California Secretary of State on April 1, 2010                                                                                                                                              |   | (1)             |
|           |   |                                                                                                                                                                                                                                          |   |            |
| 3.2            |   | Bylaws as amended through December 8, 2000                                                                                                                                                                                                    |   | (2)             |
|           |   |                                                                                                                                                                                                                                          |   |            |
| 4.1(a)         |   | Indenture dated as of August 1, 1991 between TMCC and The Chase Manhattan Bank, N.A                                                                                                                                                           |   | (3)             |
|           |   |                                                                                                                                                                                                                                          |   |            |
| 4.1(b)         |   | First Supplemental Indenture dated as of October 1, 1991 among TMCC, Bankers Trust Company and The Chase Manhattan Bank, N.A                                                                                                                  |   | (4)             |
|           |   |                                                                                                                                                                                                                                          |   |            |
| 4.1(c)         |   | Second Supplemental Indenture, dated as of March 31, 2004, among TMCC, JPMorgan Chase Bank (as successor to The Chase Manhattan Bank, N.A.) and Deutsche Bank Trust Company Americas (formerly known as Bankers Trust Company)                |   | (5)             |
|           |   |                                                                                                                                                                                                                                          |   |            |
| 4.1(d)         |   | Third Supplemental Indenture, dated as of March 8, 2011 among TMCC, The Bank of New York Mellon Trust Company, N.A., as trustee, and Deutsche Bank Trust Company Americas, as trustee.                                                        |   | (6)             |
|           |   |                                                                                                                                                                                                                                          |   |            |
| 4.1(e)         |   | Agreement of Resignation and Acceptance dated as of April 26, 2010 between Toyota Motor Credit Corporation, The Bank of New York Mellon and The Bank of New York Trust Company, N.A.                                                          |   | (1)             |
|           |   |                                                                                                                                                                                                                                          |   |            |
| 4.2(a)         |   | Amended and Restated Agency Agreement, dated September 13, 2013, among Toyota Motor Credit Corporation, Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc., Toyota Finance Australia Limited and The Bank of New York Mellon. |   | (7)             |
|           |   |                                                                                                                                                                                                                                          |   |            |

| (1) | Incorporated herein by reference to the same numbered Exhibit filed with our Annual Report on Form 10-K for the fiscal year ended March 31, 2010, Commission File Number 1-9961. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated herein by reference to the same numbered Exhibit filed with our Quarterly Report on Form 10-Q for the three months ended December 31, 2000, Commission File Number 1-9961. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated herein by reference to Exhibit 4.1(a), filed with our Registration Statement on Form S-3, File Number 33-52359. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated herein by reference to Exhibit 4.1 filed with our Current Report on Form 8-K dated October 16, 1991, Commission File Number 1-9961. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Incorporated herein by reference to Exhibit 4.1(c) filed with our Registration Statement on Form S-3, Commission File No. 333-113680. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Incorporated herein by reference to Exhibit 4.2 filed with our Current Report on Form 8-K dated March 9, 2011, Commission File Number 1-9961. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Incorporated herein by reference to Exhibit 4.1 filed with our Current Report on Form 8-K dated September 13, 2013, Commission File Number 1-9961. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Exhibit Number |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Method ofFiling |
|----------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            |
| 4.2(b)         |   | Amended and Restated Note Agency Agreement, dated September 13, 2013, among Toyota Motor Credit Corporation, The Bank of New York Mellon (Luxembourg) S.A. and The Bank of New York Mellon, acting through its London branch.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (8)             |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            |
| 4.3(a)         |   | Sixth Amended and Restated Agency Agreement dated September 28, 2006, among TMCC, JP Morgan Chase Bank, N.A. and J.P. Morgan Bank Luxembourg S.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | (9)             |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            |
| 4.3(b)         |   | Amendment No.1, dated as of March 4, 2011, to the Sixth Amended and Restated Agency Agreement among TMCC, The Bank of New York Mellon, acting through its London branch, as agent, and The Bank of New York Luxembourg S.A., as paying agent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (10)            |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            |
| 4.4            |   | TMCC has outstanding certain long-term debt as set forth in Note 9 - Debt of the Notes to Consolidated Financial Statements.  Not filed herein as an exhibit, pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of 1934, is any instrument which defines the rights of holders of such long-term debt, where the total amount of securities authorized thereunder does not exceed 10 percent of the total assets of TMCC and its subsidiaries on a consolidated basis.  TMCC agrees to furnish copies of all such instruments to the Securities and Exchange Commission upon request.                                                                                                                                                                                                                                                                                                                                                                                                                 |   |            |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            |
| 10.1           |   | 364 Day Credit Agreement, dated as of November 22, 2013, among Toyota Motor Credit Corporation, (“TMCC”), Toyota Credit de Puerto Rico Corp. (“TCPR”), Toyota Motor Finance (Netherlands) B.V. (“TMFNL”), Toyota Financial Services (UK) PLC (“TFS(UK)”), Toyota Leasing GMBH (“TLG”), Toyota Credit Canada Inc. (“TCCI”) and Toyota Kreditbank GMBH (“TKG”), as Borrowers, each lender party thereto, and BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNP Paribas Securities Corp. (“BNPP Securities”), Citigroup Global Markets Inc. (“CGMI”), Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”) and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”), as Joint Lead Arrangers and Joint Book Managers, Citibank, N.A. (“Citibank”) and Bank of America, N.A. (“Bank of America”), as Swing Line Lenders, and Citibank, Bank of America, and BTMU, as Syndication Agents.  |   | (11)            |

| (8) | Incorporated herein by reference to Exhibit 4.2 filed with our Current Report on Form 8-K dated September 13, 2013, Commission File No. 1-9961. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Incorporated herein by reference to Exhibit 4.1 filed with our Current Report on Form 8-K dated September 28, 2006, Commission File No. 1-9961. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Incorporated herein by reference to Exhibit 4.1 filed with our Current Report on Form 8-K dated March 4, 2011, Commission File No. 1-9961. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Incorporated herein by reference to Exhibit 10.1 filed with our Current Report on Form 8-K dated November 25, 2013, Commission File No. 1-9961. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Exhibit Number |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Method ofFiling   |
|----------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |
| 10.2           |   | Three Year Credit Agreement, dated as of November 22, 2013, among TMCC, TCPR, TMFNL, TFS(UK), TLG, TCCI and TKG, as Borrowers, each lender party thereto, and BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNPP Securities, CGMI, MLPFS, and BTMU, as Joint Lead Arrangers and Joint Book Managers, Citibank and Bank of America, as Swing Line Lenders, and Citibank, Bank of America, and BTMU, as Syndication Agents.  |   | (12)              |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |
| 10.3           |   | Five Year Credit Agreement, dated as of November 22, 2013, among TMCC, TCPR, TMFNL, TFS(UK), TLG, TCCI and TKG, as Borrowers, each lender party thereto, and BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNPP Securities, CGMI, MLPFS, and BTMU, as Joint Lead Arrangers and Joint Book Managers, Citibank and Bank of America, as Swing Line Lenders, and Citibank, Bank of America, and BTMU, as Syndication Agents.   |   | (13)              |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |
| 12.1           |   | Calculation of ratio of earnings to fixed charges                                                                                                                                                                                                                                                                                                                                                                                                               |   | FiledHerewith     |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |
| 31.1           |   | Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                        |   | FiledHerewith     |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |
| 31.2           |   | Certification of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                        |   | FiledHerewith     |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |
| 32.1           |   | Certification pursuant to 18 U.S.C. Section 1350                                                                                                                                                                                                                                                                                                                                                                                                                |   | FurnishedHerewith |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |
| 32.2           |   | Certification pursuant to 18 U.S.C. Section 1350                                                                                                                                                                                                                                                                                                                                                                                                                |   | FurnishedHerewith |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |
| 101.INS        |   | XBRL instance document                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | FiledHerewith     |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |
| 101.CAL        |   | XBRL taxonomy extension calculation linkbase document                                                                                                                                                                                                                                                                                                                                                                                                           |   | FiledHerewith     |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |
| 101.DEF        |   | XBRL taxonomy extension definition linkbase document                                                                                                                                                                                                                                                                                                                                                                                                            |   | FiledHerewith     |

| (12) | Incorporated herein by reference to Exhibit 10.2 filed with our Current Report on Form 8-K dated November 25, 2013, Commission File No. 1-9961. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Incorporated herein by reference to Exhibit 10.3 filed with our Current Report on Form 8-K dated November 25, 2013, Commission File No. 1-9961. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Exhibit Number |   | Description                                            |   | Method ofFiling |
|----------------|--------|--------------------------------------------------------|--------|-----------------|
|           |   |                                                   |   |            |
| 101.LAB        |   | XBRL taxonomy extension labels linkbase document       |   | FiledHerewith   |
|           |   |                                                   |   |            |
| 101.PRE        |   | XBRL taxonomy extension presentation linkbase document |   | FiledHerewith   |
|           |   |                                                   |   |            |
| 101.SCH        |   | XBRL taxonomy extension schema document                |   | FiledHerewith   |

| 79  |
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