Related Party Transactions (Disclosure)

3 Months Ended

Jun. 30, 2011

Note 15 – Related Party Transactions

As of June 30, 2011, there were no material changes to our related party agreements or relationships as described in our fiscal 2011 Form 10-K, except as described below. The tables below summarize amounts included in our Consolidated Statement of Income and Consolidated Balance Sheet under various related party agreements or relationships:

		Three Months Ended
		June 30,
(Dollars in millions)			2011		2010¹
Net financing revenues:
	Manufacturers’ subvention support and other revenues	$	243	$	233
	Credit support fees incurred	$	(8)	$	(9)
	Foreign exchange loss on loans payable to affiliates	$	(38)	$	(61)
	Interest expense on loans payable to affiliates	$	(11)	$	(12)

Insurance earned premiums and contract revenues:
	Affiliate insurance premiums and contract revenues	$	54	$	29

Investments and other income, net:
	Interest earned on notes receivable from affiliates	$	-	$	1

Expenses:
	Shared services charges and other expenses	$	17	$	10
	Employee benefits expense	$	10	$	8

¹Prior period amounts have been reclassified to conform to the current period presentation.

Note 15 – Related Party Transactions (Continued)

(Dollars in millions)			June 30, 2011		March 31, 2011
Assets:
Finance receivables, net
	Accounts receivable from affiliates		$	18	$	18
	Direct finance receivables from affiliates		$	4	$	5
	Notes receivable under home loan programs		$	20	$	21
	Deferred retail subvention income from affiliates		$	(688)	$	(732)

Investments in operating leases, net
	Leases to affiliates		$	5	$	5
	Deferred lease subvention income from affiliates		$	(723)	$	(761)

Other assets
	Notes receivable from affiliates		$	326	$	653
	Other receivables from affiliates		$	168	$	157
	Subvention support receivable from affiliates		$	63	$	109

Liabilities:
Debt
	Loans payable to affiliates		$	4,235	$	4,197

Other liabilities
	Unearned affiliate insurance premiums and
		contract revenues	$	343	$	364
	Accounts payable to affiliates		$	180	$	242
	Notes payable to affiliate		$	61	$	61

Shareholder’s Equity:
Dividends paid			$	-	$	266
Stock based compensation			$	1	$	1

Affiliate Insurance Premiums and Contract Revenues

Affiliate insurance premiums, and contract revenues primarily represent revenues from Toyota Motor Insurance Services, Inc. (“TMIS”) for administrative services and various levels and types of coverage provided to TMS. This includes contractual indemnity coverage and related administrative services for TMS' certified pre-owned vehicle program and the umbrella liability policy. TMIS, through its wholly-owned subsidiary, provides umbrella liability insurance to TMS and affiliates covering certain dollar value layers of risk above various primary or self-insured retentions. Revenues from affiliate agreements issued were $31 million for the three months ended June 30, 2011 and 2010.

Revenues from affiliate agreements issued temporarily to TMS for special sales and customer loyalty programs during fiscal 2011 were $43 million for the quarter ended June 30, 2010.

- Definition

This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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