FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of December, 2002
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 whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.]
Yes No X
--- ---
[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):]
Materials Contained in this Report:
(1) The registrant's unaudited Semi-Annual Consolidated Financial Statements
for the six-month period ended September 30, 2002, prepared in accordance
with generally accepted accounting principles in the United States, as
submitted to the Tokyo Stock Exchange on December 26, 2002.
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.
Toyota Motor Corporation
By: /s/ Takanori Matsuo
Date: December 26, 2002 --------------------------------
Name: Takanori Matsuo
Title: General Manager,
Accounting Division
EXHIBIT I
TOYOTA MOTOR CORPORATION
CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
TOYOTA MOTOR CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
U.S.
dollars
in
millions
Yen in millions (Note 1)
----------------------------------- -------------------
March 31, September 30, September 30,
2002 2002 2002
--------------- ------------------- -------------------
Current assets:
Cash and cash equivalents (Y) 1,657,160 (Y) 1,870,153 $ 15,254
Time deposits 19,977 32,324 264
Marketable securities 600,737 561,783 4,582
Trade accounts and notes receivable, less
allowance for doubtful accounts of(Y)28,182 million
as of March 31, 2002 and(Y)24,398 million ($199
million) as of September 30, 2002 1,456,935 1,221,335 9,962
Finance receivables, net 2,020,491 2,187,518 17,843
Other receivables 508,970 518,999 4,233
Inventories 961,840 927,040 7,562
Deferred income taxes 433,524 441,378 3,600
Prepaid expenses and other current assets 413,211 442,270 3,608
--------------- ------------------- -------------------
Total current assets 8,072,845 8,202,800 66,908
--------------- ------------------- -------------------
Noncurrent finance receivables, net 2,671,460 2,708,898 22,095
--------------- ------------------- -------------------
Investments and other assets:
Marketable securities and other securities
investments 1,531,126 1,555,701 12,689
Affiliated companies 1,321,950 1,314,640 10,723
Officers and employees receivables 21,151 15,276 125
Other 580,188 622,373 5,076
--------------- ------------------- -------------------
3,454,415 3,507,990 28,613
--------------- ------------------- -------------------
Property, plant and equipment:
Land 1,032,381 1,045,286 8,526
Buildings 2,421,918 2,445,338 19,946
Machinery and equipment 6,959,054 7,014,789 57,217
Vehicles and equipment on operating leases 1,584,161 1,419,989 11,582
Construction in progress 234,224 240,200 1,959
--------------- ------------------- -------------------
12,231,738 12,165,602 99,230
Less - Accumulated depreciation (7,124,728) (7,060,763) (57,592)
--------------- ------------------- -------------------
5,107,010 5,104,839 41,638
--------------- ------------------- -------------------
Total assets (Y) 19,305,730 (Y) 19,524,527 $ 159,254
================ =================== ===================
The accompanying notes are an integral part of these statements.
TOYOTA MOTOR CORPORATION
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
(Unaudited)
U.S.
dollars
in
millions
Yen in millions (Note 1)
----------------------------------- -------------------
March 31, September 30, September 30,
2002 2002 2002
--------------- ------------------- -------------------
Current liabilities:
Short-term borrowings (Y) 1,825,564 (Y) 1,878,992 $ 15,326
Current portion of long-term debt 1,158,814 1,192,895 9,730
Accounts payable 1,420,608 1,377,863 11,239
Other payables 575,011 541,683 4,419
Accrued expenses 928,160 941,825 7,682
Income taxes payable 327,713 296,015 2,414
Other current liabilities 436,288 439,507 3,585
--------------- ------------------- -------------------
Total current liabilities 6,672,158 6,668,780 54,395
--------------- ------------------- -------------------
Long-term liabilities:
Long-term debt 3,722,706 3,798,192 30,980
Accrued pension and severance costs 754,403 727,057 5,930
Deferred income taxes 467,061 496,531 4,050
Other long-term liabilities 133,669 104,437 853
--------------- ------------------- -------------------
Total long-term liabilities 5,077,839 5,126,217 41,813
--------------- ------------------- -------------------
Minority interest in consolidated subsidiaries 291,621 345,038 2,814
--------------- ------------------- -------------------
Shareholders' equity:
Common stock, no par value, authorized:
9,780,185,400 shares at March 31, 2002
9,740,185,400 shares at September 30, 2002;
issued:
3,649,997,492 shares at March 31, 2002 and
3,609,997,492 shares at September 30, 2002 397,050 397,050 3,239
Additional paid-in capital 490,538 491,158 4,006
Retained earnings 6,804,722 7,033,122 57,366
Accumulated other comprehensive loss (267,304) (356,412) (2,907)
Treasury stock, at cost
46,449,606 shares at March 31, 2002 and
62,014,597 shares at September 30, 2002 (160,894) (180,426) (1,472)
--------------- ------------------- -------------------
Total shareholders' equity 7,264,112 7,384,492 60,232
--------------- ------------------- -------------------
Commitments and contingencies
Total liabilities and shareholders' equity (Y) 19,305,730 (Y) 19,524,527 $ 159,254
=============== =================== ===================
The accompanying notes are an integral part of these statements.
TOYOTA MOTOR CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
U.S.
dollars
in
millions
Yen in millions (Note 1)
------------------------------- ---------------------
For the six month For the six month
period ended period ended
September 30, September 30,
------------------------------- --------------------
2001 2002 2002
------------- ------------- --------------------
Net revenues:
Sales of products (Y) 6,299,058 (Y) 7,270,735 $ 59,305
Financing operations 319,638 342,687 2,795
------------- ------------- --------------------
6,618,696 7,613,422 62,100
------------- ------------- --------------------
Costs and expenses:
Cost of products sold 5,079,180 5,792,840 47,250
Cost of financing operations 239,803 227,292 1,854
Selling, general and administrative 791,622 908,267 7,409
------------- ------------- --------------------
6,110,605 6,928,399 56,513
------------- ------------- --------------------
Operating income 508,091 685,023 5,587
------------- ------------- --------------------
Other income (expense):
Interest and dividend income 36,886 29,892 244
Interest expense (19,022) (15,464) (126)
Foreign exchange gain, net 29,804 21,033 172
Other loss, net (146,680) (6,023) (49)
------------- ------------- --------------------
(99,012) 29,438 241
------------- ------------- --------------------
Income before income taxes, minority interest
and equity in earnings of affiliated companies 409,079 714,461 5,828
Provision for income taxes 198,440 296,920 2,422
------------- ------------- --------------------
Income before minority interest and equity in
earnings of affiliated companies 210,639 417,541 3,406
Minority interest in consolidated subsidiaries (1,606) (9,528) (78)
Equity in earnings of affiliated companies 19,464 17,787 145
------------- ------------- --------------------
Net income (Y) 228,497 (Y) 425,800 $ 3,473
============= ============= ====================
Yen U.S. dollars
------------------------------- --------------------
Net income per common share:
Basic (Y) 62.18 (Y) 118.44 $ 0.97
============= ============= ====================
Diluted (Y) 62.18 (Y) 118.44 $ 0.97
============= ============= ====================
Cash dividends per share (Y) 13.00 (Y) 16.00 $ 0.13
============= ============= ====================
The accompanying notes are an integral part of these statements.
TOYOTA MOTOR CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
U.S.
dollars
in
millions
Yen in millions (Note 1)
------------------------------- -------------------
For the six month For the six month
period ended period ended
September 30, September 30,
------------------------------- -------------------
2001 2002 2002
--------------- -------------- -------------------
Cash flows from operating activities:
Net income (Y) 228,497 (Y) 425,800 $ 3,473
Adjustments to reconcile net income to net
cash provided by operating activities -
Depreciation 396,828 434,995 3,548
Provision for doubtful accounts and credit losses 23,867 19,709 161
Pension and severance costs, less payments 22,483 30,315 247
Loss on disposal of fixed assets 13,269 23,880 195
Unrealized losses on available-for-sale securities, net 137,815 23,853 195
Deferred income taxes (59,546) (24,067) (196)
Minority interest in consolidated subsidiaries 1,606 9,528 78
Equity in earnings of affiliated companies (19,464) (17,787) (145)
Changes in assets and liabilities 147,485 134,014 1,093
Other (35,216) 50,698 413
--------------- -------------- -------------------
Net cash provided by operating activities 857,624 1,110,938 9,062
--------------- -------------- -------------------
Cash flows from investing activities:
Additions to finance receivables (2,461,241) (2,474,800) (20,186)
Collection of and proceeds from sale of finance receivables 2,060,698 1,938,368 15,811
Additions to fixed assets excluding equipment leased to others (433,735) (519,108) (4,234)
Additions to equipment leased to others (322,521) (289,594) (2,362)
Proceeds from sales of fixed assets excluding equipment leased
to others 31,614 31,606 258
Proceeds from sales of equipment leased to others 233,763 125,919 1,027
Purchases of marketable securities and security investments (166,375) (521,364) (4,253)
Proceeds from sales of and maturity of marketable securities and
security investments 358,244 569,846 4,648
(Increase) decrease in time deposits 27,232 (12,085) (99)
(Increase) decrease in investments and other assets (56,331) 7,527 61
Payments for additional investments in affiliated companies,
net of cash acquired (15,326) (16,016) (131)
Other 43,378 20,652 169
--------------- -------------- -------------------
Net cash used in investing activities (700,600) (1,139,049) (9,291)
--------------- -------------- -------------------
Cash flows from financing activities:
Purchases and retirement of common stock (128,613) (142,090) (1,159)
Proceeds from issuance of long-term debt 816,503 907,482 7,402
Payments of long-term debt (332,143) (561,651) (4,581)
Increase (decrease) in short-term borrowings (90,203) 132,004 1,077
Dividends paid (50,905) (54,108) (442)
--------------- -------------- -------------------
Net cash provided by financing activities 214,639 281,637 2,297
--------------- -------------- -------------------
Effect of exchange rate changes on cash and cash equivalents (10,674) (40,533) (331)
--------------- -------------- -------------------
Net increase in cash and cash equivalents 360,989 212,993 1,737
Cash and cash equivalents at beginning of period 1,510,892 1,657,160 13,517
--------------- -------------- -------------------
Cash and cash equivalents at end of period (Y) 1,871,881 (Y) 1,870,153 $ 15,254
=============== ============== ===================
The accompanying notes are an integral part of these statements.
TOYOTA MOTOR CORPORATION
------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(Unaudited)
-----------
1. Basis of preparation:
--------------------
The accompanying semi-annual condensed consolidated financial statements of
Toyota Motor Corporation ("Toyota") as of September 30, 2002 and for the six
month periods ended September 30, 2001 and 2002, respectively, have been
prepared in accordance with accounting principles generally accepted in the
United States and on substantially the same basis as Toyota's annual
consolidated financial statements. The semi-annual condensed consolidated
financial statements should be read in conjunction with Toyota's Annual Report
on Form 20-F for the year ended March 31, 2002. The semi-annual condensed
consolidated financial statements reflect all adjustments, consisting of only
normal recurring adjustments, necessary for a fair presentation of the results
for those periods and the financial condition at those dates. The consolidated
results for six month periods are not necessarily indicative of results to be
expected for the full year.
U.S. dollar amounts are included solely for the convenience of the reader at the
rate of (Y)122.60 = U.S. $1, the approximate current exchange rate at September
30, 2002.
In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("FAS") No. 142, Goodwill and Other Intangible
Assets. FAS No. 142 requires goodwill and intangible assets having an indefinite
useful life to be tested for impairment under certain circumstances, and written
off when impaired, rather than being amortized as previous standards required.
Toyota adopted the provisions of FAS No. 142 as of April 1, 2002. At the date of
initial adoption, FAS No. 142 requires to perform impairment test for goodwill
and intangible assets segmented as those having an indefinite useful life.
Toyota recognized no impairment losses on these assets as a result of testing.
In addition, FAS No. 142 requires to disclose, in the period of initial
application, income before extraordinary items and net income for all periods
presented adjusted as if FAS No. 142 had been applied in these periods,
including any adjustments for changes in amortization periods, if any, for
intangible assets continuously amortized after the adoption of FAS No. 142.
Goodwill on Toyota's balance sheet as at April 1, 2002, the initial application
of the statement, March 31, 2001, and September 30, 2001, was insignificant,
accordingly, the impact of amortization of goodwill was immaterial for the six
month period ended September 30, 2001 and the impact of cessation of
amortization is immaterial for the six month period ended September 30, 2002.
The amortization periods of intangible assets having a definite useful life as
of the date of the initial adoption were not changed based on Toyota's
assessment, required by FAS No. 142. Toyota's intangible assets having an
indefinite useful life, so decided based on Toyota's assessment as of the date
of initial adoption, mainly consist of intangible assets relating to employees'
retirement benefits, which have not been amortized before and after the
adoption. Carrying amounts of goodwill and other intangible assets as of
September 30, 2002, reported in "Other" of "Investments and other assets"
-2-
were (Y) 7,278 million ($ 59 million) and (Y) 144,936 million ($ 1,182 million),
respectively.
In August 2001, the FASB issued FAS No.144, Accounting for the Impairment or
Disposal of Long-Lived Assets. FAS No. 144 supersedes FAS No. 121, Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of, and provides new rules on asset impairment and a single accounting model for
long-lived assets to be disposed of. Although retaining many of the fundamental
recognition and measurement provisions of FAS No. 121, the new rules
significantly change the criteria that would have to be met to classify an asset
as held-for-sale. The new rules also supersede the provisions of APB Opinion No.
30, Reporting the Results of Operations - Reporting the Effects of Disposal of a
Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring
Events and Transactions, with regard to reporting the effects of a disposal of a
segment of a business and require expected future operating losses from
discontinued operations to be displayed in discontinued operations in the
period(s) in which the losses are incurred. Toyota adopted the provisions of FAS
No. 144 as of April 1, 2002. The adoption of FAS No. 144 did not have a material
impact on Toyota's consolidated financial statements.
Pursuant to FASB Emerging Issues Task Force Issue No. 01-09, "Accounting for
Consideration Given by a Vendor to a Customer (Including a Reseller of the
Vendor's Products)", Toyota has reclassified certain sales incentives which fall
into the scope from selling, general and administrative expenses to a reduction
of revenues, for all periods presented.
In June 2001, the FASB issued FAS No.143, Accounting for Asset Retirement
Obligations. Toyota is required to adopt FAS No. 143 effective April 1, 2003.
FAS No. 143 requires full recognition of asset retirement obligations on the
balance sheet from the point in time at which a legal obligation exists. The
obligation is required to be measured at fair value. The carrying value of the
asset or assets to which the retirement obligation relates would be increased by
an amount equal to the liability recognized. This amount would then be included
in the depreciable base of the asset and charged to income over its life as
depreciation. Toyota is currently in the process of evaluating the impact that
FAS No. 143 will have on its financial statements.
In June 2002, the FASB issued FAS No. 146, Accounting for Costs Associated with
Exit or Disposal Activities. FAS No. 146 requires to recognize a liability for
costs relating to exit or disposal activities when incurred rather than when
management's commitment to exit plan as current accounting guidance requires.
Toyota is required to adopt this provision to exit or disposal activities
initiated after December 31, 2002. Toyota does not expect this statement to have
a material impact on Toyota's consolidated financial statements.
In November 2002, the FASB issued FASB Interpretation ("FIN") No. 45,
"Guarantor's Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others". FIN No. 45 clarifies that a
guarantor is required to recognize, at the inception of a guarantee, a liability
-3-
for the fair value of the obligation undertaken in issuing the certain guarantee
within its scope. FIN No. 45 also elaborates on the disclosure to be made by a
guarantor. Toyota is currently in the process of evaluating the impact that FIN
No. 45 will have on its financial statements.
2. Net income per share:
--------------------
Basic net income per common share is calculated by dividing net income by the
weighted average number of common shares outstanding during the reported period
(3,674,614,684 and 3,595,184,689 shares for the six month periods ended
September 30, 2001 and 2002, respectively). The calculation of diluted net
income per common share is similar to the calculation of basic net income per
common share, except that the weighted-average number of shares outstanding
includes the additional dilution from assumed exercise of dilutive stock
options. The effective of dilutive stock options was de-minims for the six month
periods ended September 30, 2001 and 2002.
3. Reclassification:
----------------
Certain prior period amounts have been reclassified to conform to the
presentation in the six month period ended September 30, 2002.
4. Comprehensive income:
--------------------
Toyota's total comprehensive income for the six month periods ended September
30, 2001 and 2002 was as follows:
U.S. dollars in
Yen in millions millions
------------------------------- -----------------
For the six month For the six month
period ended period ended
September 30, September 30,
------------------------------- -----------------
2001 2002 2002
------------- ------------- -----------------
Net income (Y) 228,497 (Y) 425,800 $ 3,473
------------- ------------- -----------------
Other comprehensive income (loss):
Unrealized gains on securities,
net of reclassification adjustment 128 10,182 83
Foreign currency translation adjustments (39,628) (107,889) (880)
Minimum pension liability adjustment 235 9,141 75
Net losses on derivative instruments (13,155) (542) (5)
------------- ------------- -----------------
(52,420) (89,108) (727)
------------- ------------- -----------------
Total comprehensive income (Y) 176,077 (Y) 336,692 $ 2,746
============= ============= =================
-4-
5. Segment data:
------------
The operating segments reported below are the segments of Toyota for which
separate financial information is available and for which operating income/loss
amounts are evaluated regularly by executive management in deciding how to
allocate resources and in assessing performance. The major portions of Toyota's
operations on a worldwide basis are derived from the Automotive and Financial
Services business segments. The Automotive segment designs, manufactures,
assembles and distributes passenger cars, recreational and sport-utility
vehicles, minivans, trucks and related parts and accessories. The Financial
Services segment consists primarily of financing operations, and vehicle and
equipment leasing operations to assist in the merchandising of Toyota's products
as well as other products. The All Other segment includes Toyota's
transportation business, telecommunications business, and various other business
activities.
The following tables present certain information regarding Toyota's industry
segments and operations by geographic areas at March 31, 2002 and September 30,
2002 and for the six month periods ended September 30, 2001 and 2002:
-5-
Information about segment profit and assets -
-------------------------------------------
As of March 31, 2002 and for the six month period ended September 30, 2001:
Yen in millions
-------------------------------------------------------------------------------------
Intersegment
Elimination/
Financial Unallocated Consolidated
Automotive Services All Other Amount Total
----------------- --------------- ------------- --------------- ------------------
Revenues (Y) 6,092,278 (Y) 326,151 (Y) 348,640 (Y) (148,373) (Y) 6,618,696
Depreciation 291,793 95,578 9,457 - 396,828
Operating income 507,513 11,265 (10,623) (64) 508,091
Segment assets (1) 9,121,406 6,910,593 650,912 2,622,819 19,305,730
Investment in equity
method investees (1) 1,065,455 185,072 3,950 66,495 1,320,972
Expenditures for segment
assets 386,813 271,799 17,820 79,824 756,256
(1) Representing figures as of March 31, 2002.
As of and for the six month period ended September 30, 2002:
Yen in millions
-------------------------------------------------------------------------------------
Intersegment
Elimination/
Financial Unallocated Consolidated
Automotive Services All Other Amount Total
----------------- --------------- ------------- --------------- ------------------
Revenues (Y) 7,041,551 (Y) 350,805 (Y) 360,729 (Y) (139,663) (Y) 7,613,422
Depreciation 328,501 96,929 9,565 - 434,995
Operating income 685,921 3,805 (1,202) (3,501) 685,023
Segment assets 8,898,489 7,046,464 685,126 2,894,448 19,524,527
Investment in equity
method investees 1,070,612 170,428 3,355 63,298 1,307,693
Expenditures for segment
assets 476,256 263,888 14,586 53,972 808,702
U.S. dollars in millions
-------------------------------------------------------------------------------------
Intersegment
Elimination/
Financial Unallocated Consolidated
Automotive Services All Other Amount Total
----------------- --------------- ------------- --------------- ------------------
Revenues $ 57,435 $ 2,862 $ 2,942 $ (1,139) $ 62,100
Depreciation 2,679 791 78 - 3,548
Operating income 5,595 31 (10) (29) 5,587
Segment assets 72,581 57,475 5,588 23,610 159,254
Investment in equity
method investees 8,733 1,390 27 516 10,666
Expenditures for segment
assets 3,885 2,152 119 440 6,596
-6-
Geographic Information -
----------------------
Revenues for the six month period ended September 30:
U.S. dollars in
Yen in millions millions
--------------------------------------- --------------------
2001 2002 2002
------------------- ------------------ --------------------
Japan
External customers (Y) 2,985,744 (Y) 3,131,544 $ 25,543
Intercompany 1,789,310 2,060,909 16,810
------------------- ------------------ --------------------
Total 4,775,054 5,192,453 42,353
------------------- ------------------ --------------------
North America
External customers 2,591,923 3,069,254 25,035
Intercompany 81,158 127,292 1,038
------------------- ------------------ --------------------
Total 2,673,081 3,196,546 26,073
------------------- ------------------ --------------------
Europe
External customers 598,987 713,832 5,823
Intercompany 18,054 32,043 261
------------------- ------------------ --------------------
Total 617,041 745,875 6,084
------------------- ------------------ --------------------
Other foreign countries
External customers 442,042 698,792 5,700
Intercompany 48,690 42,654 348
------------------- ------------------ --------------------
Total 490,732 741,446 6,048
------------------- ------------------ --------------------
Elimination of intercompany revenue (1,937,212) (2,262,898) (18,458)
------------------- ------------------ --------------------
Consolidated total (Y) 6,618,696 (Y) 7,613,422 $ 62,100
=================== ================== ====================
Operating income (loss) for the six month period ended September 30:
U.S. dollars in
Yen in millions millions
--------------------------------------- --------------------
2001 2002 2002
------------------- ------------------ --------------------
Japan (Y) 416,521 (Y) 479,783 $ 3,913
North America 99,585 181,793 1,483
Europe (15,712) 5,083 41
Other foreign countries 2,885 21,955 179
Elimination of intersegment profits 4,812 (3,591) (29)
------------------- ------------------ --------------------
Consolidated total (Y) 508,091 (Y) 685,023 $ 5,587
=================== ================== ====================
Long-lived assets as of March 31 and September 30, 2002:
U.S. dollars in
Yen in millions millions
--------------------------------------- --------------------
March 31 September 30 September 30
------------------- ------------------ --------------------
Japan (Y) 2,694,473 (Y) 2,708,418 $ 22,092
North America 1,826,905 1,780,390 14,522
Europe 341,562 370,462 3,022
Other foreign countries 244,070 245,569 2,002
------------------- ------------------ --------------------
Consolidated total (Y) 5,107,010 (Y) 5,104,839 $ 41,638
Revenues are attributed to geographies based on the country location of the
parent company or the subsidiary that transacted the sale with the external
customer. There are no any individually material
-7-
countries with respect to revenues and long-lived assets included in other
foreign countries. Transfers between industry or geographic segments are made at
amounts which Toyota's management believes approximate arm's-length prices. In
measuring the reportable segments' profits or losses, operating income consists
of sales and operating revenue less costs and operating expenses. Unallocated
assets consist primarily of cash and cash equivalents and marketable securities
maintained for general corporate purposes.
Certain financial statement data on non-financial services
----------------------------------------------------------
and financial services businesses -
---------------------------------
Toyota is preparing certain financial statement data relating to the
segmentation of Toyota's non-financial services and financial services
businesses. This financial statement data includes balance sheets at March 31,
2002 and September 30, 2002, and statements of income for the six month periods
ended September 30, 2001 and 2002.
-8-
Balance sheets -
U.S. dollars
Yen in millions in millions
--------------------------------------- --------------------
March 31, September 30, September 30,
2002 2002 2002
------------------- ------------------ --------------------
Non-Financial Services Businesses
Current assets
Cash and cash equivalents (Y) 1,510,974 (Y) 1,795,432 $ 14,644
Time deposits 8,327 8,007 66
Marketable securities 596,530 558,576 4,556
Trade accounts and notes receivable 1,471,716 1,245,472 10,159
Finance receivables, net 14,612 12,858 105
Inventories 961,840 927,040 7,562
Prepaid expenses and other current assets 1,258,788 1,370,377 11,177
------------------- ------------------ --------------------
Total current assets 5,822,787 5,917,762 48,269
------------------- ------------------ --------------------
Noncurrent finance receivables, net 17,996 17,906 146
Investments and other assets 3,265,860 3,290,344 26,838
Property, plant and equipment 3,989,227 3,997,038 32,602
------------------- ------------------ --------------------
Total Non-Financial Services Businesses assets 13,095,870 13,223,050 107,855
------------------- ------------------ --------------------
Financial Services Businesses
Current assets
Cash and cash equivalents 146,186 74,721 610
Time deposits 11,650 24,317 198
Marketable securities 4,207 3,237 26
Finance receivables, net 2,005,879 2,174,660 17,738
Prepaid expenses and other current assets 539,544 535,336 4,367
------------------- ------------------ --------------------
Total current assets 2,707,466 2,812,271 22,939
------------------- ------------------ --------------------
Noncurrent finance receivables, net 2,653,464 2,690,992 21,949
Investments and other assets 431,880 435,400 3,551
Property, plant and equipment 1,117,783 1,107,801 9,036
------------------- ------------------ --------------------
Total Financial Services Businesses assets 6,910,593 7,046,464 57,475
------------------- ------------------ --------------------
Eliminations (700,733) (744,987) (6,076)
------------------- ------------------ --------------------
Total assets (Y) 19,305,730 (Y) 19,524,527 $ 159,254
=================== ================== ====================
-9-
U.S. dollars
Yen in millions in millions
--------------------------------------- --------------------
March 31, September 30, September 30,
2002 2002 2002
------------------- ------------------ --------------------
Non-Financial Services Businesses
Current liabilities
Short-term borrowings (Y) 834,490 (Y) 781,272 $ 6,373
Current portion of long-term debt 236,117 168,377 1,373
Accounts payable 1,413,373 1,370,512 11,179
Accrued expenses 872,672 886,003 7,227
Income taxes payable 321,579 293,484 2,394
Other current liabilities 770,219 807,623 6,587
------------------- ------------------ --------------------
Total current liabilities 4,448,450 4,307,271 35,133
------------------- ------------------ --------------------
Long-term liabilities
Long-term debt 719,375 764,754 6,238
Accrued pension and severance costs 753,806 726,306 5,924
Other long-term liabilities 272,391 339,110 2,766
------------------- ------------------ --------------------
Total long-term liabilities 1,745,572 1,830,170 14,928
------------------- ------------------ --------------------
Total Non-Financial Services Businesses liabilities 6,194,022 6,137,441 50,061
------------------- ------------------ --------------------
Financial Services Businesses
Current liabilities
Short-term borrowings 1,407,183 1,578,099 12,872
Current portion of long-term debt 929,893 1,031,792 8,416
Accounts payable 7,460 7,710 63
Accrued expenses 58,750 59,224 483
Income taxes payable 6,134 2,531 20
Other current liabilities 263,472 202,879 1,655
------------------- ------------------ --------------------
Total current liabilities 2,672,892 2,882,235 23,509
------------------- ------------------ --------------------
Long-term liabilities
Long-term debt 3,255,970 3,258,183 26,576
Accrued pension and severance costs 597 751 6
Other long-term liabilities 328,338 261,858 2,136
------------------- ------------------ --------------------
Total long-term liabilities 3,584,905 3,520,792 28,718
------------------- ------------------ --------------------
Total Financial Services Businesses liabilities 6,257,797 6,403,027 52,227
------------------- ------------------ --------------------
Eliminations (701,822) (745,471) (6,080)
Minority interest in consolidated subsidiaries 291,621 345,038 2,814
Shareholders' equity 7,264,112 7,384,492 60,232
------------------- ------------------ --------------------
Total liabilities and shareholders' equity (Y) 19,305,730 (Y) 19,524,527 $ 159,254
=================== ================== ====================
-10-
Statements of income -
U.S. dollars
Yen in millions in millions
--------------------------------------- --------------------
For the six month For the six month
period ended period ended
September 30, September 30,
--------------------------------------- --------------------
2001 2002 2002
------------------- ---------------- --------------------
Non-Financial Services Businesses
Net revenues (Y) 6,319,995 (Y) 7,269,669 $ 59,296
------------------- ---------------- --------------------
Costs and expenses
Cost of revenues 5,104,545 5,792,839 47,250
Selling, general and administrative 715,258 790,455 6,448
------------------- ---------------- --------------------
Total costs and expenses 5,819,803 6,583,294 53,698
------------------- ---------------- --------------------
Operating income 500,192 686,375 5,598
------------------- ---------------- --------------------
Other income (expense), net (119,160) 30,377 248
------------------- ---------------- --------------------
Income before income taxes, minority interest and
equity in earnings of affiliated companies 381,032 716,752 5,846
Provision for income taxes 192,667 300,891 2,454
------------------- ---------------- --------------------
Income before minority interest and equity in
earnings of affiliated companies 188,365 415,861 3,392
Minority interest in consolidated subsidiaries (1,025) (9,002) (73)
Equity in earnings of affiliated companies 36,800 16,942 138
------------------- ---------------- --------------------
Net income- Non-Financial Services Businesses 224,140 423,801 3,457
------------------- ---------------- --------------------
Financial Services Businesses
Net revenues 326,151 350,805 2,862
------------------- ---------------- --------------------
Costs and expenses
Cost of revenues 237,754 228,771 1,866
Selling, general and administrative 77,132 118,229 965
------------------- ---------------- --------------------
Total costs and expenses 314,886 347,000 2,831
------------------- ---------------- --------------------
Operating income 11,265 3,805 31
------------------- ---------------- --------------------
Other income (expense), net 16,784 (5,490) (45)
------------------- ---------------- --------------------
Income (loss) before income taxes, minority
interest and equity in earnings of affiliated 28,049 (1,685) (14)
companies
Provision (Benefit) for income taxes 5,774 (3,725) (30)
------------------- ---------------- --------------------
Income before minority interest and equity in
earnings of affiliated companies 22,275 2,040 16
Minority interest in consolidated subsidiaries (581) (538) (4)
Equity in earnings (losses) of affiliated
companies (17,336) 845 7
------------------- ---------------- --------------------
Net income- Financial Services Businesses 4,358 2,347 19
------------------- ---------------- --------------------
Eliminations (1) (348) (3)
------------------- ---------------- --------------------
Net income (Y) 228,497 (Y) 425,800 $ 3,473
=================== ================ ====================