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Allowance for Credit Losses
 3 Months Ended
Jun. 30, 2019
Loans And Leases Receivable Disclosure [Abstract]  
Allowance for Credit Losses

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

 

 

 

 

June 30,

 

 

 

 

2019

 

 

2018

 

 

Allowance for credit losses at beginning of period

 

$

602

 

 

$

597

 

 

Charge-offs

 

 

(102

)

 

 

(113

)

 

Recoveries

 

 

30

 

 

 

27

 

 

Provision for credit losses

 

 

75

 

 

 

89

 

 

Allowance for credit losses at end of period

 

$

605

 

 

$

600

 

 

 

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 June 30, 2019

 

Allowance for Credit Losses for Finance Receivables:

 

Retail Loan

 

 

Dealer Products

 

 

Total

 

Beginning balance, April 1, 2019

 

$

304

 

 

$

195

 

 

$

499

 

Charge-offs

 

 

(72

)

 

 

-

 

 

 

(72

)

Recoveries

 

 

14

 

 

 

-

 

 

 

14

 

Provision for credit losses

 

 

81

 

 

 

(18

)

 

 

63

 

Ending balance, June 30, 2019

 

$

327

 

 

$

177

 

 

$

504

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance: Individually evaluated for impairment

 

$

-

 

 

$

92

 

 

$

92

 

Ending balance: Collectively evaluated for impairment

 

$

327

 

 

$

85

 

 

$

412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance, June 30, 2019

 

$

55,039

 

 

$

18,055

 

 

$

73,094

 

Ending balance: Individually evaluated for impairment

 

$

-

 

 

$

615

 

 

$

615

 

Ending balance: Collectively evaluated for impairment

 

$

55,039

 

 

$

17,440

 

 

$

72,479

 

 

The ending balance of finance receivables collectively evaluated for impairment in the above table includes approximately $239 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 June 30, 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 June 30, 2019 includes $1,088 million in finance receivables that are guaranteed by Toyota Motor North America, Inc. (“TMNA”), and $132 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 June 30, 2018

 

Allowance for Credit Losses for Finance Receivables:

 

Retail Loan

 

 

Dealer Products

 

 

Total

 

Beginning balance, April 1, 2018

 

$

312

 

 

$

151

 

 

$

463

 

Charge-offs

 

 

(75

)

 

 

-

 

 

 

(75

)

Recoveries

 

 

14

 

 

 

-

 

 

 

14

 

Provision for credit losses

 

 

62

 

 

 

(1

)

 

 

61

 

Ending balance, June 30, 2018

 

$

313

 

 

$

150

 

 

$

463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance: Individually evaluated for impairment

 

$

-

 

 

$

62

 

 

$

62

 

Ending balance: Collectively evaluated for impairment

 

$

313

 

 

$

88

 

 

$

401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance, June 30, 2018

 

$

53,823

 

 

$

17,860

 

 

$

71,683

 

Ending balance: Individually evaluated for impairment

 

$

-

 

 

$

482

 

 

$

482

 

Ending balance: Collectively evaluated for impairment

 

$

53,823

 

 

$

17,378

 

 

$

71,201

 

 

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 June 30, 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 June 30, 2018 includes $1,043 million in finance receivables that are guaranteed by TMNA, and $138 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.