Toyota 2013 Annual Report Download - page 62

Toyota Global Vision President’s Message Launching a New Structure Special Feature Review of Operations
Consolidated Performance
Highlights
Management and
Corporate Information Investor InformationFinancial Section
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ANNUAL REPORT 2013
subsidiaries, respectively, both strengthening
against the U.S. dollar, decreasing the value of
assets denominated in dollars that were not settled
during the year.
Other loss, net decreased by ¥56.0 billion to
¥36.8 billion during fi scal 2012 compared with the
prior fi scal year. This was due to the recognition of
impairment losses on available-for-sale securities.
Income Taxes
The provision for income taxes decreased by ¥50.5
billion, or 16.2%, to ¥262.2 billion during fi scal 2012
compared with the prior fi scal year due to the
decrease in income before income taxes. The effec-
tive tax rate for fi scal 2012 was 60.6%, which was
higher than the statutory tax rate in Japan. This was
due to recurring items such as the valuation allow-
ance and deferred tax liabilities relating to undistrib-
uted earnings in affi liated companies accounted for
by the equity method.
Net Income and Loss Attributable to
Noncontrolling Interests and Equity in
Earnings of Affi liated Companies
Net income attributable to noncontrolling interests
increased by ¥27.4 billion, or 47.9%, to ¥84.7 billion
during fi
scal 2012 compared with the prior fi scal
year. This increase was due to an increase during
fi scal 2012 in net income attributable to the share-
holders of consolidated subsidiaries.
Equity in earnings of affi liated companies during fi s-
cal 2012 decreased by ¥17.3 billion, or 8.1%, to
¥197.7 billion compared with the prior fi scal year. This
decrease was due to a decrease during fi scal 2012 in
net income attributable to the shareholders of affi liated
companies accounted for by the equity method.
Net Income Attributable to Toyota Motor
Corporation
Net income attributable to the shareholders of
Toyota Motor Corporation decreased by ¥124.6 bil-
lion, or 30.5%, to ¥283.5 billion during fi scal 2012
compared with the prior fi scal year.
Other Comprehensive Income and Loss
Other comprehensive loss decreased by ¥263.8 bil-
lion to ¥34.1 billion for fi scal 2012 compared with
the prior fi scal year. This decrease resulted from
unfavorable foreign currency translation adjustments
losses of ¥87.7 billion in fi scal 2012 compared with
losses of ¥287.6 billion in the prior fi scal year, and
from unrealized holding gains on securities in fi scal
2012 of ¥129.3 billion compared with losses of
¥26.1 billion in the prior fi scal year. The increase in
unrealized holding gains on securities was due to
changes in stock prices.
Segment Information
The following is a discussion of results of operations for each of Toyota’s operating segments. The amounts
presented are prior to intersegment elimination.
Yen in millions
Years ended March 31, 2012 vs. 2011 Change
2011 2012 Amount Percentage (%)
Automotive: Net revenues ¥17,337,320 ¥16,994,546 ¥(342,774) –2.0
Operating income 85,973 21,683 (64,290) –74.8
Financial Services: Net revenues 1,192,205 1,100,324 (91,881) –7.7
Operating income 358,280 306,438 (51,842) –14.5
All Other: Net revenues 972,252 1,048,915 76,663 +7.9
Operating income 35,242 42,062 6,820 +19.4
Intersegment elimination/
unallocated amount:
Net revenues (508,089) (560,132) (52,043) —
Operating income (11,216) (14,556) (3,340) —
Automotive Operations Segment
The automotive operations segment is Toyota’s larg-
est operating segment by net revenues. Net reve-
nues for the automotive segment decreased during
fi scal 2012 by ¥342.7 billion, or 2.0%, compared
with the prior fi scal year to ¥16,994.5 billion. The
decrease refl ects the ¥649.2 billion unfavorable
impact of fl uctuations in foreign currency translation
rates and others, partially offset by the ¥320.0 billion
of favorable impact by changes in vehicle unit sales
and sales mix, and other operational factors.
Operating income from the automotive operations
decreased by ¥64.3 billion during fi scal 2012 com-
pared with the prior fi scal year to ¥21.6 billion. This
decrease in operating income was due to the
¥250.0 billion unfavorable impact of fl uctuations in
foreign currency rates and the ¥100.0 billion
increase in miscellaneous costs and others, partially
offset by the ¥170.0 billion effect of cost reduction
efforts, and the ¥150.0 billion of favorable impact by
changes in vehicle unit sales and sales mix.
The changes in vehicle unit sales and changes in
sales mix was due primarily to an increase in
Toyota’s vehicle unit sales by 44 thousand vehicles
compared with the prior fi scal year resulting from
the introduction of new products in spite of the
impact of the Great East Japan Earthquake and the
fl ood in Thailand. The increase in miscellaneous
costs and others was due primarily to the ¥100.0
billion increase in labor costs and the ¥50.0 billion
increase in research and development expenses.
Financial Services Operations Segment
Net revenues for the fi nancial services operations
decreased during fi scal 2012 by ¥91.8 billion, or
7.7%, compared with the prior fi scal year to
¥1,100.3 billion. This decrease was primarily due to
the unfavorable impact of fl uctuations in foreign cur-
rency translation rates and others of ¥66.9 billion
and the ¥18.3 billion decrease in rental income from
vehicles and equipment on operating leases.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Selected Financial Summary (U.S. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [17 of 26] Consolidated Financial Statements Notes to Consolidated Financial Statements
Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm