Allowance for Credit Losses

9 Months Ended

Dec. 31, 2019

Loans And Leases Receivable Disclosure [Abstract]

Note 5 – 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,
	2019			2018			2019			2018
Allowance for credit losses at beginning of period	$	586		$	585		$	602		$	597
Charge-offs		(140	)		(121	)		(348	)		(339	)
Recoveries		21			22			77			72
Provision for credit losses		128			110			264			266
Allowance for credit losses at end of period	$	595		$	596		$	595		$	596

Note 5 – 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, 2019
	Retail Loan			Dealer Products		Total
Allowance for Credit Losses for Finance Receivables:
Beginning balance, October 1, 2019	$	317		$	188	$	505
Charge-offs		(117	)		-		(117	)
Recoveries		12			-		12
Provision for credit losses		116			7		123
Ending balance, December 31, 2019	$	328		$	195	$	523

	Nine Months Ended December 31, 2019
Allowance for Credit Losses for Finance Receivables:	Retail Loan			Dealer Products		Total
Beginning balance, April 1, 2019	$	304		$	195	$	499
Charge-offs		(269	)		-		(269	)
Recoveries		39			-		39
Provision for credit losses		254			-		254
Ending balance, December 31, 2019	$	328		$	195	$	523


Ending balance: Individually evaluated for impairment	$	-		$	105	$	105
Ending balance: Collectively evaluated for impairment	$	328		$	90	$	418

Finance Receivables:
Ending balance, December 31, 2019	$	57,324		$	17,000	$	74,324
Ending balance: Individually evaluated for impairment	$	-		$	617	$	617
Ending balance: Collectively evaluated for impairment	$	57,324		$	16,383	$	73,707

The ending balance of finance receivables collectively evaluated for impairment in the above table includes approximately $251 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, 2019, 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, 2019 includes $1,024 million in finance receivables that are guaranteed by Toyota Motor North America, Inc. (“TMNA”), and $137 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 5 – Allowance for Credit Losses (Continued)

	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
Allowance for Credit Losses for Finance Receivables:	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


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 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.