SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of February, 2020

Commission File Number 001-14948

 

 

Toyota Motor Corporation

(Translation of Registrant’s Name Into English)

 

 

1, Toyota-cho, Toyota City,

Aichi Prefecture 471-8571,

Japan

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F       X        Form 40-F             

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):             

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):             

 

 

 

Material Contained in this Report:

 

I.	English translations of the original Japanese-language documents, as filed with the Tokyo Stock Exchange on February 6, 2020, with respect to the registrant’s results of operations for the third quarter of FY2020 ended December 31, 2019.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: February 6, 2020

FINANCIAL SUMMARY

(All financial information has been prepared in accordance with U.S. generally accepted accounting principles)

FY2020 Third Quarter

(April 1, 2019 through December 31, 2019)

English translation from the original Japanese-language document

TOYOTA MOTOR CORPORATION

FY2020 Third Quarter Consolidated Financial Results

(All financial information has been prepared in accordance with U.S. generally accepted accounting principles)

English translation from the original Japanese-language document

February 6, 2020

 

Company name		: Toyota Motor Corporation
Stock exchanges on which the shares are listed		: Tokyo and Nagoya Stock Exchanges in Japan
Code number		: 7203
URL Representative		: https://global.toyota/jp/ : Akio Toyoda, President
Contact person		: Kaname Shimizu, General Manager, Accounting Division   Tel. (0565)28-2121
Filing date of quarterly securities report		: February 10, 2020
Payment date of cash dividends		: —
Supplemental materials prepared for quarterly financial results		: yes
Earnings announcement for quarterly financial results		: yes

(Amounts are rounded to the nearest million yen)

 

1.	Consolidated Results for FY2020 First Nine Months (April 1, 2019 through December 31, 2019)

 

(1)	Consolidated financial results (For the nine months ended December 31)

 

		(% of change from previous first nine months)
		Net revenues								Operating income								Income before income taxes and equity in earnings of affiliated companies								Net income attributable to Toyota Motor Corporation
		Million yen				%				Million yen				%				Million yen				%				Million yen				%
FY2020 first nine months			22,830,164				1.6				2,058,783				6.2				2,515,779				45.8				2,013,010				41.4
FY2019 first nine months			22,475,548				3.1				1,937,974				9.5				1,725,779				-13.8				1,423,307				-29.3

 

(Note) Comprehensive income: FY2020 first nine months 2,025,004 million yen (30.4 %), FY2019 first nine months 1,553,353 million yen (-36.0 %)

 

		Net income attributable to Toyota Motor Corporation per common share  – Basic				Net income attributable to Toyota Motor Corporation per common share – Diluted
		Yen				Yen
FY2020 first nine months			712.46				705.25
FY2019 first nine months			489.82				485.72

 

(2)	Consolidated financial position

 

		Total assets				Mezzanine equity and Shareholders’ equity				Toyota Motor Corporation shareholders’ equity				Ratio of Toyota Motor Corporation shareholders’ equity
		Million yen				Million yen				Million yen				%
FY2020 third quarter			53,801,134				21,531,654				20,305,523				37.7
FY2019			51,936,949				20,565,210				19,348,152				37.3

 

2.	Cash Dividends

 

		Annual cash dividends per common share
		End of first quarter				End of second quarter				End of third quarter				Year-end				Total
		Yen				Yen				Yen				Yen				Yen
FY2019			—				100.00				—				120.00				220.00
FY2020			—				100.00				—
FY2020 (forecast)															—				—

 

(Note)		Revisions to the forecast of cash dividends since the latest announcement: none
		Please refer to “(Reference) Cash Dividends on Class Shares” for information regarding cash dividends on class shares, which are unlisted and have different rights from common stock.

 

3.	Forecast of Consolidated Results for FY2020 (April 1, 2019 through March 31, 2020)

 

		(% of change from FY2019)
		Net revenues								Operating income								Income before income taxes and equity in earnings of affiliated companies								Net income attributable to Toyota Motor Corporation								Net income attributable to Toyota Motor Corporation per common share – Basic
		Million yen				%				Million yen				%				Million yen				%				Million yen				%				Yen
Full-year			29,500,000				-2.4				2,500,000				1.3				2,910,000				27.3				2,350,000				24.8				832.84

 

(Note) Revisions to the forecast of consolidated results since the latest announcement: yes

Notes

 

(1)	Changes in significant subsidiaries during the current quarter

(Changes in specified subsidiaries that caused a change in the scope of consolidation): none

 

(2)	Simplified accounting procedures and specific accounting procedures: yes

Note: For more details, please see page 9 “Other Information”.

 

(3)	Changes in accounting policies

 

(i)

Changes by a newly issued accounting pronouncement: yes

 

(ii)

Changes other than (3)-(i) above: yes

Note: For more details, please see page 9 “Other Information”.

 

(4)	Number of shares issued and outstanding (common stock)

 

(i)

Number of shares issued and outstanding at the end of each period (including treasury stock):

FY2020 third quarter 3,262,997,492 shares, FY2019 3,262,997,492 shares

 

(ii)

Number of treasury stock at the end of each period:

FY2020 third quarter 482,948,520 shares, FY2019 430,558,325 shares

 

(iii)

Average number of shares issued and outstanding in each period:

FY2020 first nine months 2,807,226,955 shares, FY2019 first nine months 2,883,125,232 shares

This report is not reviewed.

Cautionary Statement with Respect to Forward-Looking Statements, and Other Information

This report contains forward-looking statements that reflect Toyota’s plans and expectations. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause Toyota’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. These factors include, but are not limited to: (i) changes in economic conditions, market demand, and the competitive environment affecting the automotive markets in Japan, North America, Europe, Asia and other markets in which Toyota operates; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar, the euro, the Australian dollar, the Russian ruble, the Canadian dollar and the British pound, fluctuations in stock prices, and interest rates fluctuations; (iii) changes in funding environment in financial markets and increased competition in the financial services industry; (iv) Toyota’s ability to market and distribute effectively; (v) Toyota’s ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (vi) changes in the laws, regulations and government policies in the markets in which Toyota operates that affect Toyota’s automotive operations, particularly laws, regulations and government policies relating to vehicle safety including remedial measures such as recalls, trade, environmental protection, vehicle emissions and vehicle fuel economy, as well as changes in laws, regulations and government policies that affect Toyota’s other operations, including the outcome of current and future litigation and other legal proceedings, government proceedings and investigations; (vii) political and economic instability in the markets in which Toyota operates; (viii) Toyota’s ability to timely develop and achieve market acceptance of new products that meet customer demand; (ix) any damage to Toyota’s brand image; (x) Toyota’s reliance on various suppliers for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyota’s reliance on various digital and information technologies; (xiii) fuel shortages or interruptions in electricity, transportation systems, labor strikes, work stoppages or other interruptions to, or difficulties in, the employment of labor in the major markets where Toyota purchases materials, components and supplies for the production of its products or where its products are produced, distributed or sold; and (xiv) the impact of natural calamities including the negative effect on Toyota’s vehicle production and sales.

A discussion of these and other factors which may affect Toyota’s actual results, performance, achievements or financial position is contained in Toyota’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.

This report contains summarized and condensed financial information prepared in accordance with U.S. generally accepted accounting principles.

(Reference) Cash Dividends on Class Shares

Cash dividends on class shares, which have different rights from common stock, are as follows:

 

		Annual cash dividends per First Series Model AA Class Share
		End of first quarter				End of second quarter				End of third quarter				Year-end				Total
		Yen				Yen				Yen				Yen				Yen
FY2019			—				105.50				—				105.50				211.00
FY2020			—				132.00				—
FY2020 (forecast)															—				—

 

(Note) The First Series Model AA Class Shares were issued in July 2015.

TOYOTA MOTOR CORPORATION    FY2020 Third Quarter Financial Summary

 

TABLE OF CONTENTS

 

1.  Consolidated Financial Statements			2
(1) Consolidated Balance Sheets			2
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			4
(3) Consolidated Statements of Cash Flows			8
(4) Going Concern Assumption			9
(5) Significant Changes in Shareholders’ Equity			9
2.  Other Information			9
(1) Changes in significant subsidiaries during the current period			9
(2) Simplified accounting procedures and accounting procedures specific to quarterly consolidated financial statements			9
(3) Changes in accounting principles, procedures, and disclosures for consolidated financial statements			9
Supplemental Material for Financial Results for FY2020 Third Quarter

 

1

TOYOTA MOTOR CORPORATION    FY2020 Third Quarter Financial Summary

 

1.	Consolidated Financial Statements

(1) Consolidated Balance Sheets

 

		(Yen in millions)
		FY2019 (March 31, 2019)				FY2020 third quarter (December 31, 2019)				Increase (Decrease)
Assets
Current assets:
Cash and cash equivalents			3,574,704				3,759,240				184,536
Time deposits			1,126,352				1,488,530				362,178
Marketable securities			1,127,160				795,154				(332,006	)
Trade accounts and notes receivable, less allowance for doubtful accounts			2,372,734				2,108,870				(263,864	)
Finance receivables, net			6,647,771				6,773,867				126,096
Other receivables			568,156				592,197				24,041
Inventories			2,656,396				2,433,401				(222,995	)
Prepaid expenses and other current assets			805,964				1,299,082				493,118
Total current assets			18,879,237				19,250,341				371,104
Noncurrent finance receivables, net			10,281,118				10,896,215				615,097
Investments and other assets:
Marketable securities and other securities investments			7,479,926				7,651,412				171,486
Affiliated companies			3,313,723				3,495,795				182,072
Employees receivables			21,683				23,497				1,814
Other			1,275,768				1,777,672				501,904
Total investments and other assets			12,091,100				12,948,376				857,276
Property, plant and equipment:
Land			1,386,308				1,317,567				(68,741	)
Buildings			4,802,175				4,752,932				(49,243	)
Machinery and equipment			11,857,425				12,127,185				269,760
Vehicles and equipment on operating leases			6,139,163				6,043,761				(95,402	)
Construction in progress			651,713				523,349				(128,364	)
Total property, plant and equipment, at cost			24,836,784				24,764,794				(71,990	)
Less – Accumulated depreciation			(14,151,290	)			(14,058,592	)			92,698
Total property, plant and equipment, net			10,685,494				10,706,202				20,708
Total assets			51,936,949				53,801,134				1,864,185

 

2

TOYOTA MOTOR CORPORATION    FY2020 Third Quarter Financial Summary

 

		(Yen in millions)
		FY2019 (March 31, 2019)				FY2020 third quarter (December 31, 2019)				Increase (Decrease)
Liabilities
Current liabilities:
Short-term borrowings			5,344,973				5,484,398				139,425
Current portion of long-term debt			4,254,260				4,485,926				231,666
Accounts payable			2,645,984				2,301,240				(344,744	)
Other payables			1,102,802				1,044,419				(58,383	)
Accrued expenses			3,222,446				2,927,810				(294,636	)
Income taxes payable			320,998				212,278				(108,720	)
Other current liabilities			1,335,475				1,675,911				340,436
Total current liabilities			18,226,938				18,131,982				(94,956	)
Long-term liabilities:
Long-term debt			10,550,945				10,934,987				384,042
Accrued pension and severance costs			963,406				971,702				8,296
Deferred income taxes			1,014,851				1,195,432				180,581
Other long-term liabilities			615,599				1,035,377				419,778
Total long-term liabilities			13,144,801				14,137,498				992,697
Total liabilities			31,371,739				32,269,480				897,741
Mezzanine equity
Model AA Class Shares, no par value, authorized: 150,000,000 shares at March 31, 2019 and December 31, 2019 issued: 47,100,000 shares at March 31, 2019 and December 31, 2019			498,073				499,848				1,775
Shareholders’ equity
Toyota Motor Corporation shareholders’ equity:
Common stock, no par value, authorized: 10,000,000,000 shares at March 31, 2019 and December 31, 2019 issued: 3,262,997,492 shares at March 31, 2019 and December 31, 2019			397,050				397,050				—
Additional paid-in capital			487,162				487,392				230
Retained earnings			21,987,515				23,368,761				1,381,246
Accumulated other comprehensive income (loss)			(916,650	)			(970,426	)			(53,776	)
Treasury stock, at cost, 430,558,325 shares at March 31, 2019 and 482,948,520 shares at December 31, 2019			(2,606,925	)			(2,977,254	)			(370,329	)
Total Toyota Motor Corporation shareholders’ equity			19,348,152				20,305,523				957,371
Noncontrolling interests			718,985				726,283				7,298
Total shareholders’ equity			20,067,137				21,031,806				964,669
Commitments and contingencies
Total liabilities, mezzanine equity and shareholders’ equity			51,936,949				53,801,134				1,864,185

 

Note: The total number of authorized shares for common stock and Model AA Class Shares is 10,000,000,000 shares.

 

3

TOYOTA MOTOR CORPORATION    FY2020 Third Quarter Financial Summary

 

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

 

First nine months ended December 31
Consolidated Statements of Income
		(Yen in millions)
		FY2019 first nine months (Nine months ended December 31, 2018)				FY2020 first nine months (Nine months ended December 31, 2019)				Increase (Decrease)
Net revenues:
Sales of products			20,896,268				21,202,842				306,574
Financing operations			1,579,280				1,627,322				48,042
Total net revenues			22,475,548				22,830,164				354,616
Costs and expenses:
Cost of products sold			17,285,985				17,628,319				342,334
Cost of financing operations			1,046,333				1,014,831				(31,502	)
Selling, general and administrative			2,205,256				2,128,231				(77,025	)
Total costs and expenses			20,537,574				20,771,381				233,807
Operating income			1,937,974				2,058,783				120,809
Other income (expense):
Interest and dividend income			190,403				192,831				2,428
Interest expense			(20,508	)			(18,315	)			2,193
Foreign exchange gain (loss), net			12,772				(42,295	)			(55,067	)
Unrealized gains (losses) on equity securities			(355,812	)			360,457				716,269
Other income (loss), net			(39,050	)			(35,682	)			3,368
Total other income (expense)			(212,195	)			456,996				669,191
Income before income taxes and equity in earnings of affiliated companies			1,725,779				2,515,779				790,000
Provision for income taxes			479,739				740,549				260,810
Equity in earnings of affiliated companies			254,865				303,422				48,557
Net income			1,500,905				2,078,652				577,747
Less – Net income attributable to noncontrolling interests			(77,598	)			(65,642	)			11,956
Net income attributable to Toyota Motor Corporation			1,423,307				2,013,010				589,703
Note:  Net income attributable to common shareholders for the first nine months ended December 31, 2019 and 2018 is 2,000,047 million yen and 1,412,216 million yen, respectively, which is derived by deducting dividend and accretion to Model AA Class Shares of 12,963 million yen and 11,091 million yen, respectively, from Net income attributable to Toyota Motor Corporation.
		(Yen)
Net income attributable to Toyota Motor Corporation per common share
Basic			489.82				712.46				222.64
Diluted			485.72				705.25				219.53

 

4

TOYOTA MOTOR CORPORATION    FY2020 Third Quarter Financial Summary

 

Consolidated Statements of Comprehensive Income
		(Yen in millions)
		FY2019 first nine months (Nine months ended December 31, 2018)				FY2020 first nine months (Nine months ended December 31, 2019)				Increase (Decrease)
Net income			1,500,905				2,078,652				577,747
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments			8,809				(87,969	)			(96,778	)
Unrealized gains (losses) on securities			32,360				32,240				(120	)
Pension liability adjustments			11,279				2,081				(9,198	)
Total other comprehensive income (loss)			52,448				(53,648	)			(106,096	)
Comprehensive income			1,553,353				2,025,004				471,651
Less – Comprehensive income attributable to noncontrolling interests			(74,225	)			(65,770	)			8,455
Comprehensive income attributable to Toyota Motor Corporation			1,479,128				1,959,234				480,106

 

5

TOYOTA MOTOR CORPORATION    FY2020 Third Quarter Financial Summary

 

Third quarter for the three months ended December 31
Consolidated Statements of Income
		(Yen in millions)
		FY2019 third quarter (Three months ended December 31, 2018)				FY2020 third quarter (Three months ended December 31, 2019)				Increase (Decrease)
Net revenues:
Sales of products			7,257,438				6,996,181				(261,257	)
Financing operations			544,104				548,388				4,284
Total net revenues			7,801,542				7,544,569				(256,973	)
Costs and expenses:
Cost of products sold			5,995,359				5,787,954				(207,405	)
Cost of financing operations			352,802				360,705				7,903
Selling, general and administrative			777,252				741,463				(35,789	)
Total costs and expenses			7,125,413				6,890,122				(235,291	)
Operating income			676,129				654,447				(21,682	)
Other income (expense):
Interest and dividend income			65,625				66,610				985
Interest expense			(8,905	)			(3,469	)			5,436
Foreign exchange gain (loss), net			(52,012	)			18,872				70,884
Unrealized gains (losses) on equity securities			(503,661	)			215,030				718,691
Other income (loss), net			(206	)			(19,196	)			(18,990	)
Total other income (expense)			(499,159	)			277,847				777,006
Income before income taxes and equity in earnings of affiliated companies			176,970				932,294				755,324
Provision for income taxes			6,148				265,901				259,753
Equity in earnings of affiliated companies			32,278				97,470				65,192
Net income			203,100				763,863				560,763
Less – Net income attributable to noncontrolling interests			(22,185	)			(25,829	)			(3,644	)
Net income attributable to Toyota Motor Corporation			180,915				738,034				557,119
Note:  Net income attributable to common shareholders for the third quarter ended December 31, 2019 and 2018 is 733,713 million yen and 177,218 million yen, respectively, which is derived by deducting dividend and accretion to Model AA Class Shares of 4,321 million yen and 3,697 million yen, respectively, from Net income attributable to Toyota Motor Corporation.
		(Yen)
Net income attributable to Toyota Motor Corporation per common share
Basic			61.85				263.41				201.56
Diluted			62.12				260.56				198.44

 

6

TOYOTA MOTOR CORPORATION    FY2020 Third Quarter Financial Summary

 

Consolidated Statements of Comprehensive Income
		(Yen in millions)
		FY2019 third quarter (Three months ended December 31, 2018)				FY2020 third quarter (Three months ended December 31, 2019)				Increase (Decrease)
Net income			203,100				763,863				560,763
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments			(133,039	)			163,687				296,726
Unrealized gains (losses) on securities			(33,495	)			(33,327	)			168
Pension liability adjustments			119				881				762
Total other comprehensive income (loss)			(166,415	)			131,241				297,656
Comprehensive income			36,685				895,104				858,419
Less – Comprehensive income attributable to noncontrolling interests			(16,389	)			(28,068	)			(11,679	)
Comprehensive income attributable to Toyota Motor Corporation			20,296				867,036				846,740

 

7

TOYOTA MOTOR CORPORATION    FY2020 Third Quarter Financial Summary

 

(3) Consolidated Statements of Cash Flows

 

		(Yen in millions)
		FY2019 first nine months (Nine months ended December 31, 2018)				FY2020 first nine months (Nine months ended December 31, 2019)
Cash flows from operating activities:
Net income			1,500,905				2,078,652
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation			1,321,612				1,193,770
Provision (reversal) for doubtful accounts and credit losses			51,772				60,305
Pension and severance costs, less payments			25,306				17,167
Losses on disposal of fixed assets			27,627				25,083
Unrealized losses (gains) on securities			361,112				(365,615	)
Deferred income taxes			(85,615	)			224,422
Equity in earnings of affiliated companies			(254,865	)			(303,422	)
Changes in operating assets and liabilities, and other			(81,084	)			(41,481	)
Net cash provided by operating activities			2,866,770				2,888,881
Cash flows from investing activities:
Additions to finance receivables			(11,961,107	)			(12,818,380	)
Collection of and proceeds from sales of finance receivables			11,145,254				11,711,540
Additions to fixed assets excluding equipment leased to others			(1,052,940	)			(1,057,718	)
Additions to equipment leased to others			(1,799,469	)			(1,726,189	)
Proceeds from sales of fixed assets excluding equipment leased to others			34,095				26,580
Proceeds from sales of equipment leased to others			1,055,835				1,064,860
Purchases of marketable securities and security investments			(1,563,763	)			(1,166,695	)
Proceeds from sales of and maturity of marketable securities and security investments			1,893,797				1,615,904
Changes in investments and other assets, and other			(94,370	)			(338,780	)
Net cash used in investing activities			(2,342,668	)			(2,688,878	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt			3,799,869				4,115,758
Payments of long-term debt			(3,251,657	)			(3,279,188	)
Increase in short-term borrowings			181,037				284,542
Dividends paid to Toyota Motor Corporation class shareholders			(8,690	)			(11,186	)
Dividends paid to Toyota Motor Corporation common shareholders			(636,117	)			(618,801	)
Dividends paid to noncontrolling interests			(69,132	)			(54,369	)
Reissuance (repurchase) of treasury stock			(451,420	)			(370,330	)
Net cash provided by (used in) financing activities			(436,110	)			66,426
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents			(13,704	)			(41,290	)
Net increase in cash and cash equivalents and restricted cash and cash equivalents			74,288				225,139
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period			3,219,639				3,706,515
Cash and cash equivalents reclassified to assets held for sale			—				(49,010	)
Cash and cash equivalents and restricted cash and cash equivalents at end of period			3,293,927				3,882,644

 

Note:		Cash and cash equivalents and restricted cash and cash equivalents for the first nine months ended December 31, 2019 include restricted cash and cash equivalents of 131,811 million yen and 123,404 million yen at the beginning of the period and the end of the period, respectively. Restricted cash and cash equivalents were included in Prepaid expenses and other current assets in the consolidated balance sheets.

 

8

TOYOTA MOTOR CORPORATION    FY2020 Third Quarter Financial Summary

 

(4) Going Concern Assumption

  None

(5) Significant Changes in Shareholders’ Equity

 None

 

2.	Other Information

(1) Changes in significant subsidiaries during the current period

 (Changes in specified subsidiaries that caused a change in the scope of consolidation)

  None

(2) Simplified accounting procedures and accounting procedures specific to quarterly consolidated financial statements

 Provision for income taxes

The provision for income taxes is computed by multiplying income before income taxes and equity in earnings of affiliated companies for the first nine months by estimated annual effective tax rates. These estimated annual effective tax rates reflect anticipated investment tax credits, foreign tax credits and other items, including changes in valuation allowances, that are expected to affect estimated annual effective tax rates.

(3) Changes in accounting principles, procedures, and disclosures for consolidated financial statements

 Adoption of new accounting standard

In February 2016, the Financial Accounting Standards Board (“FASB”) issued updated guidance for leases. This guidance requires lessees to recognize substantially all leases on their balance sheet as a right-of-use asset and a lease liability. The parent company and its consolidated subsidiaries (“Toyota”) adopted this guidance on April 1, 2019 using the modified retrospective method of adoption and elected the transition method that allows for application of the standard at the adoption date. Additionally, Toyota elected the package of practical expedients of not reassessing lease classifications and others for lease contracts that expired or exist as of the adoption date. As a result of adoption, Toyota recognized an additional balance of ¥365,866 million as right-of-use assets as of December 31, 2019, which is included in “Other” of “Investments and other assets” of Toyota’s consolidated balance sheet. Lease liabilities are included in “Other current liabilities” and “Other long-term liabilities,” and were ¥57,844 million and ¥307,817 million, respectively.

In August 2017, the FASB issued updated guidance for hedge accounting. This guidance simplifies and expands the application of hedge accounting. Toyota adopted this guidance on April 1, 2019. The adoption of this guidance did not have a material impact on Toyota’s consolidated financial statements.

 

9

TOYOTA MOTOR CORPORATION    FY2020 Third Quarter Financial Summary

 

 Change in depreciation method

Toyota used the declining-balance method mainly for the parent company and Japanese subsidiaries, and the straight-line method for foreign subsidiary companies, regarding the depreciation method of property, plant and equipment. In recent years, Toyota has been strengthening competitiveness globally through the investments in areas such as the remodeling of cars by introducing a new platform and powertrain units, the improvement of technological capabilities and productivity, as well as the promotion of equipment versatility. In response to such recent changes, effective as of April 1, 2019, Toyota changed the depreciation method of the parent company and Japanese subsidiaries to the straight-line method because Toyota believes it better reflects the future economic benefit from the stable usage of property, plant and equipment. The impact of the change in depreciation method is recognized prospectively as a change in accounting estimate in accordance with the FASB Accounting Standards Codification (ASC) 250 “Accounting Changes and Error Corrections”.

As a result of the change in depreciation method, depreciation expense for the first nine months ended December 31, 2019 decreased by ¥123,002 million. Net income attributable to Toyota Motor Corporation and basic net income attributable to Toyota Motor Corporation per common share for the first nine months ended December 31, 2019 increased by ¥83,192 million and ¥29.63, respectively.

 

10

Supplemental Material for Financial Results for FY2020 Third Quarter (Consolidated)

< U.S. GAAP >

 

		FY2019																								FY2020																FY2020
		1Q (2018/4-6)				2Q (2018/7-9)				3Q (2018/10-12)				9 months (2018/4-12)				4Q (2019/1-3)				12 months (’18/4-’19/3)				1Q (2019/4-6)				2Q (2019/7-9)				3Q (2019/10-12)				9 months (2019/4-12)				Forecast 12 months (’19/4-’20/3)
Vehicle Production (thousands of units)			2,199				2,184				2,262				6,645				2,340				8,985				2,311				2,236				2,146				6,693
(Japan) – including Daihatsu & Hino			1,003				1,004				1,099				3,106				1,203				4,309				1,134				1,122				1,066				3,322
[Daihatsu & Hino]			[257	]			[257	]			[290	]			[804	]			[292	]			[1,096	]			[265	]			[275	]			[277	]			[817	]
(Overseas) – including Daihatsu & Hino			1,196				1,180				1,163				3,539				1,138				4,676				1,178				1,114				1,080				3,371
[Daihatsu & Hino]			[133	]			[162	]			[161	]			[457	]			[141	]			[598	]			[124	]			[155	]			[138	]			[418	]
North America			517				447				435				1,399				442				1,841				499				456				434				1,389
Europe			168				159				173				500				180				679				174				143				182				498
Asia			402				449				429				1,280				402				1,682				386				413				366				1,165
Central and South America			82				93				96				271				82				353				86				69				76				231
Africa			28				31				30				89				32				121				33				32				22				87
Vehicle Sales (thousands of units)			2,236				2,183				2,282				6,701				2,276				8,977				2,302				2,333				2,196				6,830				8,950
(Japan) – including Daihatsu & Hino			510				521				565				1,595				631				2,226				555				585				516				1,656				2,240
[Daihatsu & Hino]			[155	]			[161	]			[169	]			[485	]			[203	]			[688	]			[158	]			[183	]			[139	]			[480	]			[650	]
(Overseas) – including Daihatsu & Hino			1,726				1,662				1,717				5,105				1,645				6,751				1,746				1,748				1,679				5,174				6,710
[Daihatsu & Hino]			[75	]			[87	]			[89	]			[251	]			[86	]			[337	]			[65	]			[76	]			[70	]			[211	]			[300	]
North America			746				665				680				2,091				654				2,745				744				702				668				2,114				2,710
Europe			253				240				232				725				269				994				274				250				246				770				1,030
Asia			394				417				464				1,275				410				1,684				398				431				406				1,235				1,610
Central and South America			117				120				114				351				97				448				104				109				114				327				420
Oceania			72				74				66				212				60				272				66				64				63				193				260
Africa			48				50				54				152				48				200				54				63				43				159				220
Middle East			93				95				105				293				104				398				106				128				138				371				460
Other			2				2				2				6				2				8				2				2				2				5
Total Retail Unit Sales (thousands of units) [Toyota, Daihatsu and Hino]			2,616				2,677				2,707				8,000				2,602				10,603				2,709				2,745				2,685				8,140				10,730
Housing Sales (units)			1,892				4,808				2,656				9,356				5,777				15,133				2,164				4,821				2,610				9,595

 

Supplemental 1

Supplemental Material for Financial Results for FY2020 Third Quarter (Consolidated)

< U.S. GAAP >

 

		FY2019																								FY2020																FY2020
		1Q (2018/4-6)				2Q (2018/7-9)				3Q (2018/10-12)				9 months (2018/4-12)				4Q (2019/1-3)				12 months (’18/4-’19/3)				1Q (2019/4-6)				2Q (2019/7-9)				3Q (2019/10-12)				9 months (2019/4-12)				Forecast 12 months (’19/4-’20/3)
Foreign Exchange Rates
Yen to US Dollar Rate			109				111				113				111				110				111				110				107				109				109				as premise: 108
Yen to Euro Rate			130				130				129				129				125				128				123				119				120				121				as premise: 121
Market Share (Japan)
Toyota (excluding Mini-Vehicles) (%)			46.2				45.2				47.3				46.2				45.1				45.9				49.0				47.6				51.2				49.1				approximately: 48.0
Toyota, Daihatsu and Hino (including Mini-Vehicles) (%)			43.8				42.7				44.9				43.8				43.1				43.6				45.2				45.2				47.4				45.8
Number of Employees			373,272				371,796				371,495				371,495				370,870				370,870				376,445				374,014				372,636				372,636	(Note 1)
Net Revenues (billions of yen)			7,362.7				7,311.2				7,801.5				22,475.5				7,750.1				30,225.6				7,646.0				7,639.5				7,544.5				22,830.1				29,500.0
Geographic Information
Japan			3,865.4				4,012.3				4,259.8				12,137.6				4,487.7				16,625.3				4,178.5				4,250.8				4,051.0				12,480.4
North America			2,791.1				2,636.4				2,753.7				8,181.2				2,635.9				10,817.2				2,833.5				2,681.7				2,708.7				8,224.0
Europe			785.8				795.8				784.0				2,365.8				873.0				3,238.8				862.1				818.7				853.9				2,534.8
Asia			1,316.2				1,318.7				1,496.5				4,131.5				1,381.4				5,513.0				1,314.3				1,367.3				1,347.1				4,028.7
Other			598.4				608.3				592.8				1,799.7				533.7				2,333.4				550.0				548.2				535.8				1,634.0
Elimination			-1,994.4				-2,060.4				-2,085.5				-6,140.4				-2,161.7				-8,302.2				-2,092.5				-2,027.4				-1,952.1				-6,072.0
Business Segment
Automotive			6,633.4				6,514.8				7,018.4				20,166.8				6,912.2				27,079.0				6,880.9				6,808.1				6,758.9				20,448.0
Financial Services			516.8				534.4				552.4				1,603.7				549.8				2,153.5				547.7				541.4				553.4				1,642.5
All Other			358.0				412.3				391.2				1,161.6				514.6				1,676.3				370.6				454.9				378.9				1,204.5
Elimination			-145.6				-150.3				-160.6				-456.6				-226.6				-683.3				-153.1				-165.0				-146.7				-464.9
Operating Income (billions of yen)			682.6				579.1				676.1				1,937.9				529.5				2,467.5				741.9				662.3				654.4				2,058.7				2,500.0
(Operating Income Ratio) (%)			(9.3	)			(7.9	)			(8.7	)			(8.6	)			(6.8	)			(8.2	)			(9.7	)			(8.7	)			(8.7	)			(9.0	)			(8.5	)
Geographic Information
Japan			395.9				354.2				494.2				1,244.4				447.2				1,691.6				436.8				391.3				403.1				1,231.2
North America			63.5				47.4				18.1				129.0				-14.5				114.5				118.9				118.0				93.2				330.2
Europe			23.0				38.1				27.9				89.2				35.6				124.8				37.7				37.1				38.4				113.4
Asia			146.3				137.1				116.7				400.2				57.2				457.4				110.9				110.6				95.2				316.9
Other			43.2				22.7				19.1				85.1				5.9				91.1				22.8				26.7				24.4				73.9
Elimination			10.4				-20.5				-0.1				-10.1				-1.9				-12.1				14.5				-21.5				-0.1				-7.1
Business Segment
Automotive			602.5				462.2				581.3				1,646.1				392.7				2,038.8				621.4				492.9				585.9				1,700.3
Financial Services			73.5				81.4				82.6				237.6				85.1				322.8				108.2				119.6				72.6				300.5
All Other			11.4				29.3				13.9				54.8				50.7				105.5				13.7				27.8				19.5				61.1
Elimination			-4.8				6.1				-1.8				-0.6				0.9				0.3				-1.4				21.9				-23.6				-3.1
Income before Income Taxes (billions of yen)			813.8				734.9				176.9				1,725.7				559.6				2,285.4				841.7				741.7				932.2				2,515.7				2,910.0
(Income before Income Taxes Ratio) (%)			(11.1	)			(10.1	)			(2.3	)			(7.7	)			(7.2	)			(7.6	)			(11.0	)			(9.7	)			(12.4	)			(11.0	)			(9.9	)
Equity in Earnings of Affiliated Companies (billions of yen)			116.5				106.0				32.2				254.8				105.2				360.0				109.5				96.3				97.4				303.4				380.0
Net Income (billions of yen)			657.3				585.0				180.9				1,423.3				459.5				1,882.8				682.9				592.0				738.0				2,013.0				2,350.0	(Note 2)
(Net Income Ratio) (%)			( 8.9	)			( 8.0	)			( 2.3	)			( 6.3	)			( 5.9	)			( 6.2	)			( 8.9	)			( 7.7	)			( 9.8	)			( 8.8	)			( 8.0	)
Dividends
Common Shares
Cash Dividends (billions of yen)			—				286.9				—				286.9				339.8				626.8				—				278.9				—				278.9	(Note 3)
Cash Dividends per Share (yen)			—				100				—				100				120				220				—				100				—				100
Payout Ratio (%)			—				23.4				—				—				54.0				33.8				—				22.2				—				—
Model AA Class Shares
Cash Dividends (billions of yen)			—				4.9				—				4.9				4.9				9.9				—				6.2				—				6.2	(Note 3)
Cash Dividends per Share (yen)			—				105.5				—				105.5				105.5				211				—				132				—				132
Value of Shares Repurchased (billions of yen)[actual purchase]			129.1				170.8				151.7				451.7				98.1				549.9				54.2				245.8				70.1				370.2	(Note 4)
Value of Shares Repurchased (billions of yen)[shareholder return]			—				249.9				—				—				300.0				550.0				—				200.0 (maximum	)			—				—	(Note 4)  (Note 5)
Number of Outstanding Common Shares (thousands)			3,262,997				3,262,997				3,262,997				3,262,997				3,262,997				3,262,997				3,262,997				3,262,997				3,262,997				3,262,997
Number of Outstanding Model AA Class Shares (thousands)			47,100				47,100				47,100				47,100				47,100				47,100				47,100				47,100				47,100				47,100

 

Supplemental 2