Toyota Motor Credit Earnings 2020-12-31

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

tmcc-10q_20201231.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2020

☐	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)

California		95-3775816
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

6565 Headquarters Drive Plano, Texas		75024
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (469) 486-9300

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Medium-Term Notes, Series B
Stated Maturity Date January 11, 2028

TM/28

New York Stock Exchange

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of January 31, 2021, 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 International 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 December 31, 2020

INDEX
PART I	3
Item 1. Financial Statements	3
Consolidated Statements of Income	3
Consolidated Statements of Comprehensive Income	3
Consolidated Balance Sheets	4
Consolidated Statements of Shareholder’s Equity	5
Consolidated Statements of Cash Flows	6
Notes to Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	44
Item 3. Quantitative and Qualitative Disclosures About Market Risk	76
Item 4. Controls and Procedures	76
PART II	77
Item 1. Legal Proceedings	77
Item 1A. Risk Factors	77
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	77
Item 3. Defaults Upon Senior Securities	77
Item 4. Mine Safety Disclosures	77
Item 5. Other Information	77
Item 6. Exhibits	78
Signatures	79

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TOYOTA MOTOR CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in millions)

(Unaudited)

	Three months ended				Nine months ended
	December 31,				December 31,
	2020		2019		2020		2019
Financing revenues:
Operating lease	$	2,122	$	2,212	$	6,365	$	6,593
Retail		749		661		2,144		1,888
Dealer		103		171		312		544
Total financing revenues		2,974		3,044		8,821		9,025
Depreciation on operating leases		1,450		1,712		4,484		4,920
Interest expense		491		755		1,534		2,065
Net financing revenues		1,033		577		2,803		2,040

Insurance earned premiums and contract revenues		241		231		714		692
Investment and other income, net		179		57		445		272
Net financing revenues and other revenues		1,453		865		3,962		3,004

Expenses:
Provision for credit losses		118		128		366		264
Operating and administrative		354		406		1,088		1,101
Insurance losses and loss adjustment expenses		98		116		265		344
Total expenses		570		650		1,719		1,709

Income before income taxes		883		215		2,243		1,295
Provision for income taxes		215		34		546		296

Net income	$	668	$	181	$	1,697	$	999

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in millions)

(Unaudited)

	Three months ended						Nine months ended
	December 31,						December 31,
	2020			2019			2020			2019
Net income	$	668		$	181		$	1,697		$	999
Other comprehensive income, net of tax
Net unrealized gains (losses) on available-for-sale marketable securities [net of tax benefit (provision) of $0, $1, ($6) and ($4), respectively]		2			(2	)		26			14
Reclassification adjustment for net gains on available-for-sale marketable securities included in investment and other income, net [net of tax provision of $0, $1, $4 and $1, respectively]		(2	)		(1	)		(15	)		(2	)
Other comprehensive income (loss)		-			(3	)		11			12
Comprehensive income	$	668		$	178		$	1,708		$	1,011

Refer to the accompanying Notes to Consolidated Financial Statements.

TOYOTA MOTOR CREDIT CORPORATION

CONSOLIDATED BALANCE SHEETS

(Dollars in millions except share data)

(Unaudited)

	December 31,		March 31,
	2020		2020
ASSETS
Cash and cash equivalents	$	10,622	$	6,790
Restricted cash and cash equivalents		1,446		1,739
Investments in marketable securities		4,596		3,820
Finance receivables, net of allowance for credit losses of $1,162 and $727		78,800		73,996
Investments in operating leases, net		36,294		36,387
Other assets		2,733		2,823
Total assets	$	134,491	$	125,555

LIABILITIES AND SHAREHOLDER’S EQUITY
Debt	$	108,972	$	97,740
Deferred income taxes		3,589		5,458
Other liabilities		5,937		7,854
Total liabilities		118,498		111,052

Commitments and contingencies (Refer to Note 9)

Shareholder’s equity:
Capital stock, no par value (100,000 shares authorized; 91,500 issued and outstanding) at December 31, 2020 and March 31, 2020		915		915
Additional paid-in capital		2		2
Accumulated other comprehensive income		26		15
Retained earnings		15,050		13,571
Total shareholder's equity		15,993		14,503
Total liabilities and shareholder's equity	$	134,491	$	125,555

The following table presents the assets and liabilities of our consolidated variable interest entities (Refer to Note 8).

	December 31,		March 31,
	2020		2020
ASSETS
Finance receivables, net	$	19,334	$	12,375
Investments in operating leases, net		6,268		5,586
Other assets		100		131
Total assets	$	25,702	$	18,092

LIABILITIES
Debt	$	21,720	$	14,568
Other liabilities		16		12
Total liabilities	$	21,736	$	14,580

Refer to the accompanying Notes to Consolidated Financial Statements.

TOYOTA MOTOR CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDER’S EQUITY

(Dollars in millions)

(Unaudited)

Three months ended December 31, 2019

Accumulated

Price	-0.00	EPS	14,503
Shares	0	P/E	-0
MCap	-0	P/FCF	-0
Net Debt	-3,605	EBIT	4,343
TEV	-3,605	TEV/EBIT	-1
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-12-31	Filed 2021-02-10
10-Q	2020-09-30	Filed 2020-11-06
10-Q	2020-06-30	Filed 2020-08-07
10-K	2020-03-31	Filed 2020-06-04
10-Q	2019-12-31	Filed 2020-02-07
10-Q	2019-09-30	Filed 2019-11-07
10-Q	2019-06-30	Filed 2019-08-02
10-K	2019-03-31	Filed 2019-06-04
10-Q	2018-12-31	Filed 2019-02-07
10-Q	2018-09-30	Filed 2018-11-07
10-Q	2018-06-30	Filed 2018-08-07
10-K	2018-03-31	Filed 2018-06-04
10-Q	2017-12-31	Filed 2018-02-13
10-Q	2017-09-30	Filed 2017-11-08
10-Q	2017-06-30	Filed 2017-08-07
10-K	2017-03-31	Filed 2017-06-01
10-Q	2016-12-31	Filed 2017-02-08
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-10
10-K	2016-03-31	Filed 2016-06-02
10-Q	2015-12-31	Filed 2016-02-10
10-Q	2015-09-30	Filed 2015-11-05
10-Q	2015-06-30	Filed 2015-08-06
10-K	2015-03-31	Filed 2015-06-02
10-Q	2014-12-31	Filed 2015-02-06
10-Q	2014-09-30	Filed 2014-11-14
10-Q	2014-06-30	Filed 2014-08-12
10-K	2014-03-31	Filed 2014-05-29
10-Q	2013-12-31	Filed 2014-02-12
10-Q	2013-09-30	Filed 2013-11-12
10-Q	2013-06-30	Filed 2013-08-12
10-K	2013-03-31	Filed 2013-06-14
10-Q	2012-12-31	Filed 2013-02-14
10-Q	2012-09-30	Filed 2012-11-07
10-Q	2012-06-30	Filed 2012-08-08
10-K	2012-03-31	Filed 2012-06-06
10-Q	2011-12-31	Filed 2012-02-08
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-06-30	Filed 2011-08-10
10-K	2011-03-31	Filed 2011-06-02
10-Q	2010-12-31	Filed 2011-02-10
10-Q	2010-09-30	Filed 2010-11-05
10-Q	2010-06-30	Filed 2010-08-04
10-K	2010-03-31	Filed 2010-06-10
10-Q	2009-12-31	Filed 2010-02-05

8-K	2020-11-17
8-K	2020-11-06
8-K	2020-09-18
8-K	2020-08-24
8-K	2020-06-18
8-K	2020-05-19
8-K	2020-05-14
8-K	2020-05-11
8-K	2020-03-27
8-K	2020-02-21
8-K	2019-11-22
8-K	2019-11-21
8-K	2019-11-08
8-K	2019-09-13
8-K	2019-08-28
8-K	2019-08-16
8-K	2019-06-21
8-K	2019-06-19
8-K	2019-06-10
8-K	2019-05-24
8-K	2019-04-16
8-K	2019-04-02
8-K	2019-02-22
8-K	2018-12-17
8-K	2018-11-09
8-K	2018-09-14
8-K	2018-08-21
8-K	2018-08-06
8-K	2018-06-27
8-K	2018-06-18
8-K	2018-05-24
8-K	2018-05-15
8-K	2018-05-01
8-K	2018-03-19
8-K	2018-03-07
8-K	2018-02-23
8-K	2018-01-25

EX-31.1	tmcc-ex311_9.htm
EX-31.2	tmcc-ex312_8.htm
EX-32.1	tmcc-ex321_6.htm
EX-32.2	tmcc-ex322_7.htm

TMCC 10Q Quarterly Report

Toyota Motor Credit Earnings 2020-12-31