Attached files
| file | filename |
|---|---|
| EXCEL - IDEA: XBRL DOCUMENT - TOYOTA MOTOR CREDIT CORP | Financial_Report.xls |
| EX-31.2 - EXHIBIT 31.2 - TOYOTA MOTOR CREDIT CORP | dp48527_ex3102.htm |
| EX-31.1 - EXHIBIT 31.1 - TOYOTA MOTOR CREDIT CORP | dp48527_ex3101.htm |
| EX-12.1 - EXHIBIT 12.1 - TOYOTA MOTOR CREDIT CORP | dp48527_ex1201.htm |
| EX-32.1 - EXHIBIT 32.1 - TOYOTA MOTOR CREDIT CORP | dp48527_ex3201.htm |
| EX-32.2 - EXHIBIT 32.2 - TOYOTA MOTOR CREDIT CORP | dp48527_ex3202.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2014
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission File Number 1-9961
TOYOTA MOTOR CREDIT CORPORATION
(Exact name of registrant as specified in its charter)
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California
(State or other jurisdiction of
incorporation or organization)
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95-3775816
(I.R.S. Employer
Identification No.)
|
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19001 S. Western Avenue
Torrance, California
(Address of principal executive offices)
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90501
(Zip Code)
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Registrant's telephone number, including area code: (310) 468-1310
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No ___
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes x No ___
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer __
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Accelerated filer __
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Non-accelerated filer x
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Smaller reporting company __
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes __ No x
As of July 31, 2014, the number of outstanding shares of capital stock, no par value per share, of the registrant was 91,500, all of which shares were held by Toyota Financial Services Americas Corporation.
Reduced Disclosure Format
The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format.
TOYOTA MOTOR CREDIT CORPORATION
FORM 10-Q
For the quarter ended June 30, 2014
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3
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3
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3
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4
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5
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6
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7
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42
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67
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67
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68
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68
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68
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68
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68
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71
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71
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70
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71
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TOYOTA MOTOR CREDIT CORPORATION
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||||||
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(Unaudited)
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Three Months Ended
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|||||||
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June 30,
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|||||||
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(Dollars in millions)
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2014
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2013
|
||||||
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Financing revenues:
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||||||
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Operating lease
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$ | 1,403 | $ | 1,209 | ||||
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Retail
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456 | 478 | ||||||
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Dealer
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101 | 108 | ||||||
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Total financing revenues
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1,960 | 1,795 | ||||||
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||||||||
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Depreciation on operating leases
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1,100 | 951 | ||||||
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Interest expense
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130 | 536 | ||||||
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Net financing revenues
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730 | 308 | ||||||
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||||||||
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Insurance earned premiums and contract revenues
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153 | 139 | ||||||
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Investment and other income, net
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35 | 6 | ||||||
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Net financing revenues and other revenues
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918 | 453 | ||||||
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||||||||
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Expenses:
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||||||||
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Provision for credit losses
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38 | 11 | ||||||
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Operating and administrative
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233 | 227 | ||||||
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Insurance losses and loss adjustment expenses
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70 | 71 | ||||||
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Total expenses
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341 | 309 | ||||||
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||||||||
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Income before income taxes
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577 | 144 | ||||||
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Provision for income taxes
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213 | 53 | ||||||
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||||||||
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Net income
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$ | 364 | $ | 91 | ||||
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Three Months Ended
|
|||||||
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June 30,
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|||||||
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(Dollars in millions)
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2014
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2013
|
||||||
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Net income
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$ | 364 | $ | 91 | ||||
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Other comprehensive income (loss), net of tax:
|
||||||||
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Net unrealized gains (losses) on available-for-sale
|
||||||||
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marketable securities [net of tax (provision) benefit of
|
||||||||
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($27) and $31, respectively]
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42 | (54 | ) | |||||
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Reclassification adjustment for net (gains) losses on
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||||||||
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available-for-sale marketable securities
|
||||||||
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included in investment and other income, net [net of
|
||||||||
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tax provision (benefit) of $5 and ($10), respectively]
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(7 | ) | 16 | |||||
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Other comprehensive income (loss)
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35 | (38 | ) | |||||
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Comprehensive income
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$ | 399 | $ | 53 | ||||
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See accompanying Notes to Consolidated Financial Statements.
|
||||||||
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TOYOTA MOTOR CREDIT CORPORATION
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||||||
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(Unaudited)
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(Dollars in millions)
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June 30, 2014
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March 31, 2014
|
||||||
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ASSETS
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|
||||||
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|
||||||
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Cash and cash equivalents
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$ | 5,364 | $ | 3,815 | ||||
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Restricted cash and cash equivalents
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992 | 1,721 | ||||||
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Investments in marketable securities
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5,036 | 5,389 | ||||||
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Finance receivables, net
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65,267 | 65,176 | ||||||
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Investments in operating leases, net
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26,518 | 24,769 | ||||||
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Other assets
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1,513 | 1,870 | ||||||
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Total assets
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$ | 104,690 | $ | 102,740 | ||||
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||||||||
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LIABILITIES AND SHAREHOLDER'S EQUITY
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||||||||
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||||||||
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Debt
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$ | 86,560 | $ | 85,367 | ||||
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Deferred income taxes
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6,890 | 6,747 | ||||||
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Other liabilities
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3,103 | 2,888 | ||||||
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Total liabilities
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96,553 | 95,002 | ||||||
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||||||||
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Commitments and contingencies (See Note 12)
|
||||||||
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||||||||
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Shareholder's equity:
|
||||||||
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Capital stock, no par value (100,000 shares authorized; 91,500 issued
|
||||||||
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and outstanding) at June 30, 2014 and March 31, 2014
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915 | 915 | ||||||
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Additional paid-in capital
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2 | 2 | ||||||
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Accumulated other comprehensive income
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235 | 200 | ||||||
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Retained earnings
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6,985 | 6,621 | ||||||
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Total shareholder's equity
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8,137 | 7,738 | ||||||
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Total liabilities and shareholder's equity
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$ | 104,690 | $ | 102,740 | ||||
The following table presents the assets and liabilities of our consolidated variable interest entities (See Note 10).
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(Dollars in millions)
|
June 30, 2014
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March 31, 2014
|
||||||
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ASSETS
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|
||||||
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Finance receivables, net
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$ | 10,754 | $ | 9,501 | ||||
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Investments in operating leases, net
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- | 156 | ||||||
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Other assets
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3 | 7 | ||||||
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Total assets
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$ | 10,757 | $ | 9,664 | ||||
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LIABILITIES
|
||||||||
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Debt
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$ | 9,112 | $ | 8,158 | ||||
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Other liabilities
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2 | 2 | ||||||
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Total liabilities
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$ | 9,114 | $ | 8,160 | ||||
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See accompanying Notes to Consolidated Financial Statements.
|
||||||||
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TOYOTA MOTOR CREDIT CORPORATION
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|||||||||||||||
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(Unaudited)
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(Dollars in millions)
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Capital
stock |
Additional
paid-in capital |
Accumulated
other comprehensive income |
Retained
earnings |
Total
|
|||||||||||||||
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Balance at March 31, 2013
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$ | 915 | $ | 2 | $ | 211 | $ | 6,429 | $ | 7,557 | ||||||||||
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Net income for the three months ended
|
||||||||||||||||||||
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June 30, 2013
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- | - | - | 91 | 91 | |||||||||||||||
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Other comprehensive loss, net of tax
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- | - | (38 | ) | - | (38 | ) | |||||||||||||
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Balance at June 30, 2013
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$ | 915 | $ | 2 | $ | 173 | $ | 6,520 | $ | 7,610 | ||||||||||
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||||||||||||||||||||
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Balance at March 31, 2014
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$ | 915 | $ | 2 | $ | 200 | $ | 6,621 | $ | 7,738 | ||||||||||
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|
||||||||||||||||||||
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Net income for the three months ended
|
||||||||||||||||||||
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June 30, 2014
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- | - | - | 364 | 364 | |||||||||||||||
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Other comprehensive income, net of tax
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- | - | 35 | - | 35 | |||||||||||||||
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Balance at June 30, 2014
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$ | 915 | $ | 2 | $ | 235 | $ | 6,985 | $ | 8,137 | ||||||||||
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|
||||||||||||||||||||
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See accompanying Notes to Consolidated Financial Statements.
|
||||||||||||||||||||
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TOYOTA MOTOR CREDIT CORPORATION
|
||||||||
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(Unaudited)
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|
|
Three Months Ended June 30,
|
|||||||
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(Dollars in millions)
|
2014
|
2013
|
||||||
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Cash flows from operating activities:
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|
||||||
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Net income
|
$ | 364 | $ | 91 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
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Depreciation and amortization
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1,108 | 960 | ||||||
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Recognition of deferred income
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(352 | ) | (300 | ) | ||||
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Provision for credit losses
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38 | 11 | ||||||
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Amortization of deferred costs
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150 | 140 | ||||||
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Foreign currency and other adjustments to the carrying value of debt, net
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75 | (494 | ) | |||||
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Net realized (gain) loss from sales and other-than-temporary impairment on securities
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(12 | ) | 26 | |||||
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Net change in:
|
||||||||
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Restricted cash
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(31 | ) | (13 | ) | ||||
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Derivative assets
|
(38 | ) | 11 | |||||
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Other assets (Note 8) and accrued income
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9 | 27 | ||||||
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Deferred income taxes
|
121 | 76 | ||||||
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Derivative liabilities
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(3 | ) | 48 | |||||
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Other liabilities
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220 | 114 | ||||||
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Net cash provided by operating activities
|
1,649 | 697 | ||||||
|
Cash flows from investing activities:
|
||||||||
|
Purchase of investments in marketable securities
|
(919 | ) | (1,055 | ) | ||||
|
Proceeds from sales of investments in marketable securities
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81 | 155 | ||||||
|
Proceeds from maturities of investments in marketable securities
|
1,258 | 1,255 | ||||||
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Acquisition of finance receivables
|
(6,591 | ) | (6,505 | ) | ||||
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Collection of finance receivables
|
6,270 | 5,957 | ||||||
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Net change in wholesale and certain working capital receivables
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243 | (800 | ) | |||||
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Acquisition of investments in operating leases
|
(4,297 | ) | (3,370 | ) | ||||
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Disposals of investments in operating leases
|
1,610 | 1,817 | ||||||
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Advances to affiliates
|
(728 | ) | (1,152 | ) | ||||
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Repayments from affiliates
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1,110 | 832 | ||||||
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Cash un-restricted/(restricted) to acquire finance receivables and investment in operating leases
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760 | - | ||||||
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Other, net
|
(4 | ) | (9 | ) | ||||
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Net cash used in investing activities
|
(1,207 | ) | (2,875 | ) | ||||
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Cash flows from financing activities:
|
||||||||
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Proceeds from issuance of debt
|
5,645 | 5,336 | ||||||
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Payments on debt
|
(2,356 | ) | (4,350 | ) | ||||
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Net change in commercial paper
|
(2,183 | ) | (713 | ) | ||||
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Advances from affiliates
|
1 | - | ||||||
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Net cash provided by financing activities
|
1,107 | 273 | ||||||
|
Net increase (decrease) in cash and cash equivalents
|
1,549 | (1,905 | ) | |||||
|
Cash and cash equivalents at the beginning of the period
|
3,815 | 4,723 | ||||||
|
Cash and cash equivalents at the end of the period
|
$ | 5,364 | $ | 2,818 | ||||
|
Supplemental disclosures:
|
||||||||
|
Interest paid
|
$ | 299 | $ | 325 | ||||
|
Income taxes paid (received), net
|
$ | 19 | $ | (24 | ) | |||
|
|
||||||||
|
See accompanying Notes to Consolidated Financial Statements.
|
||||||||
Note 1 – Interim Financial Data
Basis of Presentation
The information furnished in these unaudited interim financial statements for the three months ended June 30, 2014 and 2013 has been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). In the opinion of management, the unaudited financial information reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The results of operations for the three months ended June 30, 2014 do not necessarily indicate the results which may be expected for the full fiscal year ending March 31, 2015 (“fiscal 2015”).
These financial statements should be read in conjunction with the Consolidated Financial Statements, significant accounting policies, and other notes to the Consolidated Financial Statements included in Toyota Motor Credit Corporation’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended March 31, 2014 (“fiscal 2014”), which was filed with the Securities and Exchange Commission (“SEC”) on May 29, 2014. References herein to “TMCC” denote Toyota Motor Credit Corporation, and references herein to “we”, “our”, and “us” denote Toyota Motor Credit Corporation and its consolidated subsidiaries.
Certain prior period amounts have been reclassified to conform to the current period presentation. Related party transactions presented in the Consolidated Financial Statements are disclosed in Note 14 – Related Party Transactions of the Notes to Consolidated Financial Statements.
New Accounting Guidance
In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance on the recognition of revenue from contracts with customers. This comprehensive standard will replace all existing revenue recognition guidance. This accounting guidance is effective for us on April 1, 2017. We are currently evaluating the impact of this guidance on our consolidated financial statements.
Recently Adopted Accounting Guidance
In April 2014, we adopted new FASB accounting guidance that requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The adoption of this guidance did not have a material impact on our consolidated financial statements.
In April 2014, we adopted new FASB accounting guidance related to the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements. Pursuant to the new guidance, an entity is required to measure these obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. Additionally, the guidance requires disclosure of the nature and amount of the obligation as well as other information about those obligations within the footnotes to its financial statements. The adoption of this guidance did not have a material impact on our consolidated financial statements.
7
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note 2 – Fair Value Measurements
Recurring Fair Value Measurements
The following tables summarize our financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2014 and March 31, 2014, by level within the fair value hierarchy. Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Derivative assets were reduced by a counterparty credit valuation adjustment of $1 million as of June 30, 2014 and March 31, 2014. Derivative liabilities were reduced by a non-performance credit valuation adjustment of less than $1 million as of June 30, 2014 and March 31, 2014.
As of June 30, 2014
|
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Fair value measurements on a recurring basis
|
|||||||||||||||||||
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Counterparty
|
|
|||||||||||||||
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netting &
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Fair
|
|||||||||||||||
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(Dollars in millions)
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Level 1
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Level 2
|
Level 3
|
collateral
|
value
|
|||||||||||||||
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Cash equivalents:
|
|
|
|
|
|
|||||||||||||||
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Money market instruments
|
$ | 805 | $ | 950 | $ | - | $ | - | $ | 1,755 | ||||||||||
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U.S. government and agency obligations
|
- | 337 | - | - | 337 | |||||||||||||||
|
Certificates of deposit
|
- | 2,931 | - | - | 2,931 | |||||||||||||||
|
Commercial paper
|
- | 157 | - | - | 157 | |||||||||||||||
|
Cash equivalents total
|
805 | 4,375 | - | - | 5,180 | |||||||||||||||
|
Restricted cash equivalents - money market instruments
|
317 | - | - | - | 317 | |||||||||||||||
|
Available-for-sale securities:
|
||||||||||||||||||||
|
Debt instruments:
|
||||||||||||||||||||
|
U.S. government and agency obligations
|
507 | 623 | 2 | - | 1,132 | |||||||||||||||
|
Municipal debt securities
|
- | 12 | - | - | 12 | |||||||||||||||
|
Certificates of deposit
|
- | 914 | - | - | 914 | |||||||||||||||
|
Commercial paper
|
- | 329 | - | - | 329 | |||||||||||||||
|
Corporate debt securities
|
- | 132 | 12 | - | 144 | |||||||||||||||
|
Mortgage-backed securities:
|
||||||||||||||||||||
|
U.S. government agency
|
- | 59 | - | - | 59 | |||||||||||||||
|
Non-agency residential
|
- | - | 5 | - | 5 | |||||||||||||||
|
Non-agency commercial
|
- | - | 40 | - | 40 | |||||||||||||||
|
Asset-backed securities
|
- | - | 29 | - | 29 | |||||||||||||||
|
Equity instruments:
|
||||||||||||||||||||
|
Fixed income mutual funds:
|
||||||||||||||||||||
|
Short-term sector fund
|
- | 45 | - | - | 45 | |||||||||||||||
|
U.S. government sector fund
|
- | 337 | - | - | 337 | |||||||||||||||
|
Municipal sector fund
|
- | 23 | - | - | 23 | |||||||||||||||
|
Investment grade corporate sector fund
|
- | 323 | - | - | 323 | |||||||||||||||
|
High-yield sector fund
|
- | 46 | - | - | 46 | |||||||||||||||
|
Real return sector fund
|
- | 285 | - | - | 285 | |||||||||||||||
|
Mortgage sector fund
|
- | 533 | - | - | 533 | |||||||||||||||
|
Asset-backed securities sector fund
|
- | 51 | - | - | 51 | |||||||||||||||
|
Emerging market sector fund
|
- | 69 | - | - | 69 | |||||||||||||||
|
International sector fund
|
- | 173 | - | - | 173 | |||||||||||||||
|
Equity mutual fund
|
487 | - | - | - | 487 | |||||||||||||||
|
Available-for-sale securities total
|
994 | 3,954 | 88 | - | 5,036 | |||||||||||||||
|
Derivative assets:
|
||||||||||||||||||||
|
Foreign currency swaps
|
- | 944 | 78 | - | 1,022 | |||||||||||||||
|
Interest rate swaps
|
- | 375 | 3 | - | 378 | |||||||||||||||
|
Counterparty netting and collateral
|
- | - | - | (1,313 | ) | (1,313 | ) | |||||||||||||
|
Derivative assets total
|
- | 1,319 | 81 | (1,313 | ) | 87 | ||||||||||||||
|
Assets at fair value
|
2,116 | 9,648 | 169 | (1,313 | ) | 10,620 | ||||||||||||||
|
Derivative liabilities:
|
||||||||||||||||||||
|
Foreign currency swaps
|
- | (180 | ) | - | - | (180 | ) | |||||||||||||
|
Interest rate swaps
|
- | (454 | ) | - | - | (454 | ) | |||||||||||||
|
Counterparty netting and collateral
|
- | - | - | 631 | 631 | |||||||||||||||
|
Liabilities at fair value
|
- | (634 | ) | - | 631 | (3 | ) | |||||||||||||
|
Net assets at fair value
|
$ | 2,116 | $ | 9,014 | $ | 169 | $ | (682 | ) | $ | 10,617 | |||||||||
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
|
Note 2 – Fair Value Measurements (Continued)
|
||||||||||||||||||
|
|
|
|
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As of March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
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
|
$ | 730 | $ | 694 | $ | - | $ | - | $ | 1,424 | ||||||||||
|
Certificates of deposit
|
- | 1,437 | - | - | 1,437 | |||||||||||||||
|
Commercial paper
|
- | 708 | - | - | 708 | |||||||||||||||
|
Cash equivalents total
|
730 | 2,839 | - | - | 3,569 | |||||||||||||||
|
Restricted cash equivalents - money market instruments
|
1,077 | - | - | - | 1,077 | |||||||||||||||
|
Available-for-sale securities:
|
||||||||||||||||||||
|
Debt instruments:
|
||||||||||||||||||||
|
U.S. government and agency obligations
|
398 | 252 | 2 | - | 652 | |||||||||||||||
|
Municipal debt securities
|
- | 11 | - | - | 11 | |||||||||||||||
|
Certificates of deposit
|
- | 1,599 | - | - | 1,599 | |||||||||||||||
|
Commercial paper
|
- | 507 | - | - | 507 | |||||||||||||||
|
Corporate debt securities
|
- | 157 | 12 | - | 169 | |||||||||||||||
|
Mortgage-backed securities:
|
||||||||||||||||||||
|
U.S. government agency
|
- | 60 | - | - | 60 | |||||||||||||||
|
Non-agency residential
|
- | - | 5 | - | 5 | |||||||||||||||
|
Non-agency commercial
|
- | - | 43 | - | 43 | |||||||||||||||
|
Asset-backed securities
|
- | - | 27 | - | 27 | |||||||||||||||
|
Equity instruments:
|
||||||||||||||||||||
|
Fixed income mutual funds:
|
||||||||||||||||||||
|
Short-term sector fund
|
- | 44 | - | - | 44 | |||||||||||||||
|
U.S. government sector fund
|
- | 327 | - | - | 327 | |||||||||||||||
|
Municipal sector fund
|
- | 22 | - | - | 22 | |||||||||||||||
|
Investment grade corporate sector fund
|
- | 316 | - | - | 316 | |||||||||||||||
|
High-yield sector fund
|
- | 45 | - | - | 45 | |||||||||||||||
|
Real return sector fund
|
- | 274 | - | - | 274 | |||||||||||||||
|
Mortgage sector fund
|
- | 520 | - | - | 520 | |||||||||||||||
|
Asset-backed securities sector fund
|
- | 50 | - | - | 50 | |||||||||||||||
|
Emerging market sector fund
|
- | 66 | - | - | 66 | |||||||||||||||
|
International sector fund
|
- | 171 | - | - | 171 | |||||||||||||||
|
Equity mutual fund
|
481 | - | - | - | 481 | |||||||||||||||
|
Available-for-sale securities total
|
879 | 4,421 | 89 | - | 5,389 | |||||||||||||||
|
Derivative assets:
|
||||||||||||||||||||
|
Foreign currency swaps
|
- | 804 | 70 | - | 874 | |||||||||||||||
|
Interest rate swaps
|
- | 358 | 3 | - | 361 | |||||||||||||||
|
Counterparty netting and collateral
|
- | - | - | (1,186 | ) | (1,186 | ) | |||||||||||||
|
Derivative assets total
|
- | 1,162 | 73 | (1,186 | ) | 49 | ||||||||||||||
|
Assets at fair value
|
2,686 | 8,422 | 162 | (1,186 | ) | 10,084 | ||||||||||||||
|
Derivative liabilities:
|
||||||||||||||||||||
|
Foreign currency swaps
|
- | (252 | ) | - | - | (252 | ) | |||||||||||||
|
Interest rate swaps
|
- | (553 | ) | - | - | (553 | ) | |||||||||||||
|
Counterparty netting and collateral
|
- | - | - | 799 | 799 | |||||||||||||||
|
Liabilities at fair value
|
- | (805 | ) | - | 799 | (6 | ) | |||||||||||||
|
Net assets at fair value
|
$ | 2,686 | $ | 7,617 | $ | 162 | $ | (387 | ) | $ | 10,078 | |||||||||
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note 2 – Fair Value Measurements (Continued)
Transfers between levels of the fair value hierarchy are recognized at the end of their respective reporting periods. There were no transfers between levels during the three months ended June 30, 2014 and 2013.
The following tables summarize the reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs for the three months ended June 30, 2014 and 2013:
Three Months Ended June 30, 2014
| 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 | assets | |||||||||||||||||||||||||||||
| (Dollars in millions) | obligations | securities | securities | securities | securities | swaps | swaps | (liabilities) | ||||||||||||||||||||||||||||
|
Fair value, April 1, 2014
|
$ | 2 | $ | 12 | $ | 48 | $ | 27 | $ | 89 | $ | 3 | $ | 70 | $ | 73 | $ | 162 | ||||||||||||||||||
|
Total gains
|
||||||||||||||||||||||||||||||||||||
|
Included in earnings
|
- | - | - | - | - | 1 | 13 | 14 | 14 | |||||||||||||||||||||||||||
|
Included in other
comprehensive income
|
- | - | 1 | - | 1 | - | - | - | 1 | |||||||||||||||||||||||||||
|
Purchases, issuances, sales, and
|
||||||||||||||||||||||||||||||||||||
|
settlements
|
||||||||||||||||||||||||||||||||||||
|
Purchases
|
- | - | 1 | 3 | 4 | - | - | - | 4 | |||||||||||||||||||||||||||
|
Issuances
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Sales
|
- | - | (2 | ) | - | (2 | ) | - | - | - | (2 | ) | ||||||||||||||||||||||||
|
Settlements
|
- | - | (3 | ) | (1 | ) | (4 | ) | (1 | ) | (5 | ) | (6 | ) | (10 | ) | ||||||||||||||||||||
|
Transfers in to Level 3
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Transfers out of Level 3
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Fair value, June 30, 2014
|
$ | 2 | $ | 12 | $ | 45 | $ | 29 | $ | 88 | $ | 3 | $ | 78 | $ | 81 | $ | 169 | ||||||||||||||||||
|
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 | $ | 13 | $ | 14 | $ | 14 | ||||||||||||||||||||||||||||
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
|
Note 2 – Fair Value Measurements (Continued)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2013
|
||||||||||||||||||||||
|
|
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
|
securities1
|
securities
|
securities
|
swaps
|
swaps
|
derivatives
|
(liabilities)
|
|
|||||||||||||||||||||||||||
|
Fair value, April 1, 2013
|
$ | 4 | $ | 56 | $ | 13 | $ | 73 | $ | 12 | $ | 55 | $ | (12 | ) | $ | 55 | $ | 128 | |||||||||||||||||
|
Total (losses)/ gains
|
||||||||||||||||||||||||||||||||||||
|
Included in earnings
|
- | - | - | - | (1 | ) | (22 | ) | 5 | (18 | ) | (18 | ) | |||||||||||||||||||||||
|
Included in other comprehensive income
|
- | (3 | ) | - | (3 | ) | - | - | - | - | (3 | ) | ||||||||||||||||||||||||
|
Purchases, issuances, sales, and settlements
|
||||||||||||||||||||||||||||||||||||
|
Purchases
|
- | - | 7 | 7 | - | - | - | - | 7 | |||||||||||||||||||||||||||
|
Issuances
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Sales
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Settlements
|
- | - | (1 | ) | (1 | ) | - | (10 | ) | - | (10 | ) | (11 | ) | ||||||||||||||||||||||
|
Transfers in to Level 3
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Transfers out of Level 3
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Fair value, June 30, 2013
|
$ | 4 | $ | 53 | $ | 19 | $ | 76 | $ | 11 | $ | 23 | $ | (7 | ) | $ | 27 | $ | 103 | |||||||||||||||||
|
The amount of total losses 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 | ) | $ | (19 | ) | $ | (1 | ) | $ | (21 | ) | $ | (21 | ) | |||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
1 Certain prior period amounts have been reclassified to conform to the current year presentation.
|
||||||||||||||||||||||||||||||||||||
Nonrecurring Fair Value Measurements
Nonrecurring fair value measurements consist of Level 3 net finance receivables that are not measured at fair value on a recurring basis, but are subject to fair value adjustments utilizing the fair value of the underlying collateral, if collateral dependent, when there is evidence of impairment. For these assets, we record the fair value on a nonrecurring basis and disclose changes in fair value during the reporting period. These nonrecurring fair value measurements were not significant as of June 30, 2014 and March 31, 2014.
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note 2 – Fair Value Measurements (Continued)
Level 3 Fair Value Measurements
The fair value measurements of Level 3 financial assets and liabilities subject to recurring and nonrecurring fair value measurement, and the corresponding change in the fair value measurements of these assets and liabilities, were not significant to our Consolidated Balance Sheet or Consolidated Statement of Income as of and for the three months ended June 30, 2014 and as of and for the year ended March 31, 2014.
Financial Instruments
The following tables provide information about assets and liabilities not carried at fair value on a recurring basis in our Consolidated Balance Sheet:
|
|
|
Fair value measurement hierarchy
|
||||||||||||||||||
|
|
Carrying
|
|
|
|
Total Fair
|
|||||||||||||||
|
(Dollars in millions)
|
value
|
Level 1
|
Level 2
|
Level 3
|
Value
|
|||||||||||||||
|
As of June 30, 2014
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Financial assets
|
|
|
|
|
|
|||||||||||||||
|
Finance receivables, net
|
|
|
|
|
|
|||||||||||||||
|
Retail loan
|
$ | 49,228 | $ | - | $ | - | $ | 49,675 | $ | 49,675 | ||||||||||
|
Commercial
|
184 | - | - | 169 | 169 | |||||||||||||||
|
Wholesale
|
9,056 | - | - | 9,094 | 9,094 | |||||||||||||||
|
Real estate
|
4,591 | - | - | 4,603 | 4,603 | |||||||||||||||
|
Working capital
|
1,845 | - | - | 1,837 | 1,837 | |||||||||||||||
|
|
||||||||||||||||||||
|
Financial liabilities
|
||||||||||||||||||||
|
Commercial paper
|
$ | 25,524 | $ | - | $ | 25,524 | $ | - | $ | 25,524 | ||||||||||
|
Unsecured notes and loans payable
|
51,924 | - | 52,333 | 745 | 53,078 | |||||||||||||||
|
Secured notes and loans payable
|
9,112 | - | - | 9,119 | 9,119 | |||||||||||||||
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
|
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, 2014
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Financial assets
|
|
|
|
|
|
|||||||||||||||
|
Finance receivables, net
|
|
|
|
|
|
|||||||||||||||
|
Retail loan
|
$ | 48,892 | $ | - | $ | - | $ | 49,392 | $ | 49,392 | ||||||||||
|
Commercial
|
174 | - | - | 160 | 160 | |||||||||||||||
|
Wholesale
|
9,344 | - | - | 9,391 | 9,391 | |||||||||||||||
|
Real estate
|
4,601 | - | - | 4,552 | 4,552 | |||||||||||||||
|
Working capital
|
1,802 | - | - | 1,807 | 1,807 | |||||||||||||||
|
|
||||||||||||||||||||
|
Financial liabilities
|
||||||||||||||||||||
|
Commercial paper
|
$ | 27,709 | $ | - | $ | 27,709 | $ | - | $ | 27,709 | ||||||||||
|
Unsecured notes and loans payable
|
49,500 | - | 49,697 | 736 | 50,433 | |||||||||||||||
|
Secured notes and loans payable
|
8,158 | - | - | 8,165 | 8,165 | |||||||||||||||
The carrying value of each class of finance receivables is presented including accrued interest and deferred fees and costs, net of deferred income and the allowance for credit losses. The amount excludes related party receivables of $90 million and $89 million at June 30, 2014 and March 31, 2014 and direct finance leases of $273 million and $274 million at June 30, 2014 and March 31, 2014, respectively.
The carrying value of unsecured notes and loans payable represents the sum of unsecured notes and loans payable and carrying value adjustment as described in Note 9 - Debt.
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note 3 – Investments in Marketable Securities
We classify all of our investments in marketable securities as available-for-sale. The amortized cost and estimated fair value of investments in marketable securities and related unrealized gains and losses were as follows:
|
|
June 30, 2014
|
|||||||||||||||
|
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||||
|
(Dollars in millions)
|
cost
|
gains
|
losses
|
value
|
||||||||||||
|
Available-for-sale securities:
|
|
|
|
|
||||||||||||
|
Debt instruments:
|
|
|
|
|
||||||||||||
|
U.S. government and agency obligations
|
$ | 1,130 | $ | 2 | $ | - | $ | 1,132 | ||||||||
|
Municipal debt securities
|
11 | 1 | - | 12 | ||||||||||||
|
Certificates of deposit
|
914 | - | - | 914 | ||||||||||||
|
Commercial paper
|
329 | - | - | 329 | ||||||||||||
|
Corporate debt securities
|
138 | 6 | - | 144 | ||||||||||||
|
Mortgage-backed securities:
|
||||||||||||||||
|
U.S. government agency
|
57 | 2 | - | 59 | ||||||||||||
|
Non-agency residential
|
4 | 1 | - | 5 | ||||||||||||
|
Non-agency commercial
|
40 | 1 | (1 | ) | 40 | |||||||||||
|
Asset-backed securities
|
29 | - | - | 29 | ||||||||||||
|
Equity instruments:
|
||||||||||||||||
|
Fixed income mutual funds:
|
||||||||||||||||
|
Short-term sector fund
|
41 | 4 | - | 45 | ||||||||||||
|
U.S. government sector fund
|
330 | 7 | - | 337 | ||||||||||||
|
Municipal sector fund
|
21 | 2 | - | 23 | ||||||||||||
|
Investment grade corporate sector fund
|
286 | 37 | - | 323 | ||||||||||||
|
High-yield sector fund
|
38 | 8 | - | 46 | ||||||||||||
|
Real return sector fund
|
278 | 7 | - | 285 | ||||||||||||
|
Mortgage sector fund
|
523 | 10 | - | 533 | ||||||||||||
|
Asset-backed securities sector fund
|
41 | 10 | - | 51 | ||||||||||||
|
Emerging market sector fund
|
64 | 5 | - | 69 | ||||||||||||
|
International sector fund
|
171 | 2 | - | 173 | ||||||||||||
|
Equity mutual fund
|
210 | 277 | - | 487 | ||||||||||||
|
Total investments in marketable securities
|
$ | 4,655 | $ | 382 | $ | (1 | ) | $ | 5,036 | |||||||
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
|
Note 3 – Investments in Marketable Securities (Continued)
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
March 31, 2014
|
|||||||||||||||
|
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||||
|
(Dollars in millions)
|
cost
|
gains
|
losses
|
value
|
||||||||||||
|
Available-for-sale securities:
|
|
|
|
|
||||||||||||
|
Debt instruments:
|
|
|
|
|
||||||||||||
|
U.S. government and agency obligations
|
$ | 652 | $ | 1 | $ | (1 | ) | $ | 652 | |||||||
|
Municipal debt securities
|
10 | 1 | - | 11 | ||||||||||||
|
Certificates of deposit
|
1,599 | - | - | 1,599 | ||||||||||||
|
Commercial paper
|
507 | - | - | 507 | ||||||||||||
|
Corporate debt securities
|
164 | 6 | (1 | ) | 169 | |||||||||||
|
Mortgage-backed securities:
|
||||||||||||||||
|
U.S. government agency
|
60 | 1 | (1 | ) | 60 | |||||||||||
|
Non-agency residential
|
4 | 1 | - | 5 | ||||||||||||
|
Non-agency commercial
|
44 | 1 | (2 | ) | 43 | |||||||||||
|
Asset-backed securities
|
27 | - | - | 27 | ||||||||||||
|
Equity instruments:
|
||||||||||||||||
|
Fixed income mutual funds:
|
||||||||||||||||
|
Short-term sector fund
|
41 | 3 | - | 44 | ||||||||||||
|
U.S. government sector fund
|
329 | - | (2 | ) | 327 | |||||||||||
|
Municipal sector fund
|
21 | 1 | - | 22 | ||||||||||||
|
Investment grade corporate sector fund
|
283 | 33 | - | 316 | ||||||||||||
|
High-yield sector fund
|
38 | 7 | - | 45 | ||||||||||||
|
Real return sector fund
|
275 | - | (1 | ) | 274 | |||||||||||
|
Mortgage sector fund
|
519 | 1 | - | 520 | ||||||||||||
|
Asset-backed securities sector fund
|
40 | 10 | - | 50 | ||||||||||||
|
Emerging market sector fund
|
65 | 1 | - | 66 | ||||||||||||
|
International sector fund
|
170 | 2 | (1 | ) | 171 | |||||||||||
|
Equity mutual fund
|
217 | 264 | - | 481 | ||||||||||||
|
Total investments in marketable securities
|
$ | 5,065 | $ | 333 | $ | (9 | ) | $ | 5,389 | |||||||
The fixed income mutual funds include investments in funds that are privately placed and managed by an open-end investment management company (the “Trust”). The total fair value of private placement fixed income mutual funds was $1.9 billion and $1.8 billion at June 30, 2014 and March 31, 2014, respectively. We may redeem shares during any 90 day period solely in cash up to the lesser of $250 thousand or 1 percent of the Trust’s asset value at the beginning of such period. Although the Trust will normally redeem all shares for cash, it may, in unusual circumstances, redeem amounts exceeding the lesser of the two amounts described above, in whole or in part, by payment in kind of securities held by the respective fund.
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note 3 – Investments in Marketable Securities (Continued)
Unrealized Losses on Securities
At June 30, 2014 and March 31, 2014, the unrealized losses of investments in marketable securities in a loss position were not significant. These unrealized losses are recorded in accumulated other comprehensive income, net of applicable taxes in our Consolidated Statement of Shareholder's Equity.
Realized Gains and Losses on Securities
The following table represents realized gains and losses by transaction type for the following:
|
|
Three Months Ended
|
|||||||
|
|
June 30,
|
|||||||
|
(Dollars in millions)
|
2014
|
2013
|
||||||
|
Available-for-sale securities:
|
|
|
||||||
|
Realized gains on sales
|
$ | 12 | $ | 5 | ||||
|
Realized losses on sales
|
$ | - | $ | (1 | ) | |||
|
Other-than-temporary impairment
|
$ | - | $ | (30 | ) | |||
Other-than-temporary impairment write-downs were not significant during the three months ended June 30, 2014. Substantially all of the other-than-temporary impairment write-downs of $30 million during the three months ended June 30, 2013, were related to fixed income mutual funds.
Contractual Maturities
The fair value and contractual maturities of available-for-sale debt instruments at June 30, 2014 are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.
|
|
June 30, 2014
|
|||||||
|
(Dollars in millions)
|
Amortized cost
|
Fair value
|
||||||
|
Available-for-sale debt instruments:
|
|
|
||||||
|
Due within 1 year
|
$ | 2,249 | $ | 2,251 | ||||
|
Due after 1 year through 5 years
|
154 | 156 | ||||||
|
Due after 5 years through 10 years
|
66 | 67 | ||||||
|
Due after 10 years
|
53 | 57 | ||||||
|
Mortgage-backed and asset-backed securities1
|
130 | 133 | ||||||
|
Total
|
$ | 2,652 | $ | 2,664 | ||||
|
|
||||||||
|
1 Mortgage-backed and asset-backed securities are shown separately because these securities do not have a single maturity date.
|
||||||||
Securities on Deposit
In accordance with statutory requirements, we had on deposit with state insurance authorities U.S. debt securities with amortized cost and fair value of $6 million at both June 30, 2014 and March 31, 2014.
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note 4 – Finance Receivables, Net
Finance receivables, net consist of retail and dealer accounts including accrued interest and deferred fees and costs, net of the allowance for credit losses and deferred income. Pledged receivables represent retail loan receivables that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements. Cash flows from these pledged receivables are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors.
|
(Dollars in millions)
|
June 30, 2014
|
March 31, 2014
|
||||||
|
Retail receivables
|
$ | 39,305 | $ | 40,216 | ||||
|
Pledged retail receivables
|
10,908 | 9,633 | ||||||
|
Dealer financing
|
15,670 | 15,925 | ||||||
|
|
65,883 | 65,774 | ||||||
|
|
||||||||
|
Deferred origination (fees) and costs, net
|
648 | 651 | ||||||
|
Deferred income
|
(883 | ) | (863 | ) | ||||
|
Allowance for credit losses
|
||||||||
|
Retail and pledged retail receivables
|
(293 | ) | (298 | ) | ||||
|
Dealer financing
|
(88 | ) | (88 | ) | ||||
|
Total allowance for credit losses
|
(381 | ) | (386 | ) | ||||
|
Finance receivables, net
|
$ | 65,267 | $ | 65,176 | ||||
Finance receivables, net and retail receivables presented in the previous table includes direct finance leases, net of $273 million and $274 million at June 30, 2014 and March 31, 2014, respectively.
Credit Quality Indicators
We are exposed to credit risk on our finance receivables. Credit risk is the risk of loss arising from the failure of customers or dealers to meet the terms of their contracts with us or otherwise fail to perform as agreed.
Retail Loan and Commercial Portfolio Segments
Retail loan and commercial portfolio segments each consist of one class of finance receivables. While we use various credit quality metrics to develop our allowance for credit losses on the retail loan and commercial portfolio segments, we primarily utilize the aging of the individual accounts to monitor the credit quality of these finance receivables. Based on our experience, the payment status of borrowers is the strongest indicator of the credit quality of the underlying receivables. Payment status also impacts charge-offs.
Individual borrower accounts for each class of finance receivables within the retail loan and commercial portfolio segments are segregated into one of four aging categories based on the number of days outstanding. The aging for each class of finance receivables is updated quarterly.
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note 4 – Finance Receivables, Net (Continued)
Dealer Products Portfolio Segment
For the three classes of finance receivables within the dealer products portfolio segment (wholesale, real estate and working capital), all loans outstanding for an individual dealer or dealership group, which includes affiliated entities, are aggregated and evaluated collectively by dealer or dealer group. This reflects the interconnected nature of financing provided to our individual dealer and dealer group customers, and their affiliated entities.
When assessing the credit quality of the finance receivables within the dealer products portfolio segment, we segregate the finance receivables account balances into four categories representing distinct credit quality indicators based on internal risk assessments. The internal risk assessments for all finance receivables within the dealer products portfolio segment are updated on a monthly basis.
The four credit quality indicators are:
|
|
·
|
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
|
The tables below present each credit quality indicator by class of finance receivables as of June 30, 2014 and March 31, 2014:
|
Retail Loan
|
Commercial
|
|
|
|||||||||||||||||||||
|
(Dollars in millions)
|
June 30, 2014
|
March 31, 2014
|
June 30, 2014
|
March 31, 2014
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Aging of finance receivables:
|
|
|
|
|
|
|
||||||||||||||||||
|
Current
|
$ | 49,078 | $ | 48,828 | $ | 446 | $ | 432 |
|
|
||||||||||||||
|
30-59 days past due
|
522 | 459 | 8 | 6 |
|
|
||||||||||||||||||
|
60-89 days past due
|
121 | 90 | 1 | 1 |
|
|
||||||||||||||||||
|
90 days or greater past due
|
37 | 33 | - | - |
|
|
||||||||||||||||||
|
Total
|
$ | 49,758 | $ | 49,410 | $ | 455 | $ | 439 |
|
|
||||||||||||||
|
|
|
|
||||||||||||||||||||||
|
|
Wholesale
|
Real Estate
|
Working Capital
|
|||||||||||||||||||||
|
(Dollars in millions)
|
June 30, 2014
|
March 31, 2014
|
June 30, 2014
|
March 31, 2014
|
June 30, 2014
|
March 31, 2014
|
||||||||||||||||||
|
|
|
|
||||||||||||||||||||||
|
Credit quality indicators:
|
|
|
||||||||||||||||||||||
|
Performing
|
$ | 8,145 | $ | 8,129 | $ | 3,977 | $ | 3,791 | $ | 1,741 | $ | 1,642 | ||||||||||||
|
Credit Watch
|
972 | 1,282 | 644 | 855 | 104 | 158 | ||||||||||||||||||
|
At Risk
|
31 | 24 | 23 | 12 | 25 | 25 | ||||||||||||||||||
|
Default
|
1 | 1 | 5 | - | 2 | 6 | ||||||||||||||||||
|
Total
|
$ | 9,149 | $ | 9,436 | $ | 4,649 | $ | 4,658 | $ | 1,872 | $ | 1,831 | ||||||||||||
TOYOTA MOTOR CREDIT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
|
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 June 30, 2014 and March 31, 2014:
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
Impaired
|
|
|
Individually Evaluated
|
||||||||||||||||||||
|
Finance Receivables
|
Unpaid Principal Balance
|
Allowance
|
||||||||||||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
March 31,
|
June 30,
|
March 31,
|
|||||||||||||||||||
|
(Dollars in millions)
|
2014
|
2014
|
2014
|
2014
|
2014
|
2014
|
||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
|
Impaired account balances individually evaluated for impairment with an allowance:
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
|
Wholesale
|
$ | 21 | $ | 13 | $ | 21 | $ | 13 | $ | 2 | $ | 1 | ||||||||||||
|
Real estate
|
27 | 27 | 27 | 27 | 7 | 8 | ||||||||||||||||||
|
Working capital
|
22 | 23 | 22 | 23 | 22 | 22 | ||||||||||||||||||
|
Total
|
$ | 70 | $ | 63 | $ | 70 | $ | 63 | $ | 31 | $ | 31 | ||||||||||||
|
Impaired account balances individually evaluated for impairment without an allowance:
|
||||||||||||||||||||||||
|
Wholesale
|
$ | 49 | $ | 51 | $ | 49 | $ | 51 | ||||||||||||||||
|
Real estate
|
96 | 90 | 96 | 90 | ||||||||||||||||||||
|
Working capital
|
4 | 4 | 4 | 4 | ||||||||||||||||||||
|
Total
|
$ | 149 | $ | 145 | $ | 149 | $ | 145 | ||||||||||||||||
|
Impaired account balances aggregated and evaluated for impairment:
|
||||||||||||||||||||||||
|
Retail loan
|
$ | 312 | $ | 322 | $ | 308 | $ | 318 | ||||||||||||||||
|
Commercial
|
||||||||||||||||||||||||