Allowance for Credit Losses

9 Months Ended

Dec. 31, 2018

Loans And Leases Receivable Disclosure [Abstract]

Note 6 – Allowance for Credit Losses

The following table provides information related to our allowance for credit losses on finance receivables and investments in operating leases:

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2018			2017			2018			2017
Allowance for credit losses at beginning of period	$	585		$	636		$	597		$	622
Charge-offs		(121	)		(128	)		(339	)		(371	)
Recoveries		22			18			72			63
Provision for credit losses		110			108			266			320
Allowance for credit losses at end of period	$	596		$	634		$	596		$	634

Note 6 – Allowance for Credit Losses (Continued)

Allowance for Credit Losses and Finance Receivables by Portfolio Segment

The following tables provide information related to our allowance for credit losses for finance receivables and finance receivables by portfolio segment:

	Three Months Ended December 31, 2018
	Retail Loan			Dealer Products		Total
Allowance for Credit Losses for Finance Receivables:
Beginning balance, October 1, 2018	$	307		$	140	$	447
Charge-offs		(87	)		-		(87	)
Recoveries		12			-		12
Provision for credit losses		69			34		103
Ending balance, December 31, 2018	$	301		$	174	$	475

	Nine Months Ended December 31, 2018
	Retail Loan			Dealer Products		Total
Beginning balance, April 1, 2018	$	312		$	151	$	463
Charge-offs		(238	)		-		(238	)
Recoveries		38			-		38
Provision for credit losses		189			23		212
Ending balance, December 31, 2018	$	301		$	174	$	475

Allowance for Credit Losses for Finance Receivables:
Ending balance: Individually evaluated for impairment	$	-		$	88	$	88
Ending balance: Collectively evaluated for impairment	$	301		$	86	$	387

Finance Receivables:
Ending balance, December 31, 2018	$	53,992		$	16,744	$	70,736
Ending balance: Individually evaluated for impairment	$	-		$	596	$	596
Ending balance: Collectively evaluated for impairment	$	53,992		$	16,148	$	70,140

The ending balance of finance receivables collectively evaluated for impairment in the above table includes approximately $225 million of finance receivables within the retail loan portfolio segment that are specifically identified as impaired. These amounts are aggregated within their respective portfolio segment when determining the allowance for credit losses as of December 31, 2018, as they are deemed to be insignificant for individual evaluation, and we have determined that the allowance for credit losses is not significant and would not be materially different if the amounts had been individually evaluated for impairment. The ending balance of finance receivables for the dealer products portfolio segment collectively evaluated for impairment as of December 31, 2018 includes $1,063 million in finance receivables that are guaranteed by Toyota Motor North America, Inc. (“TMNA”), and $135 million in finance receivables that are guaranteed by third party private Toyota distributors. These finance receivables are related to certain Toyota and Lexus dealers and other third parties to whom we provided financing at the request of TMNA and third party private Toyota distributors.

Note 6 – Allowance for Credit Losses (Continued)

	Three Months Ended December 31, 2017
	Retail Loan			Dealer Products		Total
Allowance for Credit Losses for Finance Receivables:
Beginning balance, October 1, 2017	$	359		$	123	$	482
Charge-offs		(92	)		-		(92	)
Recoveries		9			-		9
Provision for credit losses		81			11		92
Ending balance, December 31, 2017	$	357		$	134	$	491

	Nine Months Ended December 31, 2017
	Retail Loan			Dealer Products		Total
Beginning balance, April 1, 2017	$	344		$	123	$	467
Charge-offs		(257	)		-		(257	)
Recoveries		35			-		35
Provision for credit losses		235			11		246
Ending balance, December 31, 2017	$	357		$	134	$	491

Allowance for Credit Losses for Finance Receivables:
Ending balance: Individually evaluated for impairment	$	-		$	52	$	52
Ending balance: Collectively evaluated for impairment	$	357		$	82	$	439

Finance Receivables:
Ending balance, December 31, 2017	$	52,892		$	17,092	$	69,984
Ending balance: Individually evaluated for impairment	$	-		$	458	$	458
Ending balance: Collectively evaluated for impairment	$	52,892		$	16,634	$	69,526

The ending balance of finance receivables collectively evaluated for impairment in the above table includes approximately $222 million of finance receivables within the retail loan portfolio segment that are specifically identified as impaired. These amounts are aggregated within their respective portfolio segment when determining the allowance for credit losses as of December 31, 2017, as they are deemed to be insignificant for individual evaluation and we have determined that the allowance for credit losses is not significant and would not be materially different if the amounts had been individually evaluated for impairment. The ending balance of finance receivables for the dealer products portfolio segment collectively evaluated for impairment as of December 31, 2017 includes $1,089 million in finance receivables that are guaranteed by TMNA, and $165 million in finance receivables that are guaranteed by third party private Toyota distributors. These finance receivables are related to certain Toyota and Lexus dealers and other third parties to whom we provided financing at the request of TMNA and third party private Toyota distributors.

Note 6 – Allowance for Credit Losses (Continued)

Past Due Finance Receivables and Investments in Operating Leases

The following table shows aggregate balances of finance receivables and investments in operating leases 60 or more days past due:

	December 31,		March 31,
	2018		2018
Aggregate balances 60 or more days past due
Finance receivables	$	291	$	223
Investments in operating leases		127		106
Total	$	418	$	329

Substantially all finance receivables and investments in operating leases do not involve recourse to the dealer in the event of customer default. Finance receivables and investments in operating leases 60 or more days past due include contracts in bankruptcy and contracts greater than 120 days past due, which are recorded at the fair value of collateral less estimated costs to sell. Contracts for which vehicles have been repossessed are excluded.

Past Due Finance Receivables by Class

The following tables summarize the aging of finance receivables by class:

	December 31, 2018
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Finance Receivables		90 Days or Greater Past Due and Accruing
Retail loan	$	772	$	200	$	91	$	1,063	$	52,929	$	53,992	$	61
Wholesale		1		-		-		1		9,658		9,659		-
Real estate		-		-		-		-		4,589		4,589		-
Working capital		-		-		-		-		2,496		2,496		-
Total	$	773	$	200	$	91	$	1,064	$	69,672	$	70,736	$	61

	March 31, 2018
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Finance Receivables		90 Days or Greater Past Due and Accruing
Retail loan	$	613	$	158	$	65	$	836	$	52,559	$	53,395	$	46
Wholesale		-		-		-		-		10,513		10,513		-
Real estate		-		-		-		-		4,630		4,630		-
Working capital		-		-		-		-		2,277		2,277		-
Total	$	613	$	158	$	65	$	836	$	69,979	$	70,815	$	46