EXHIBIT 12.1
TOYOTA MOTOR CREDIT CORPORATION
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended
June 30,
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2002 2001
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(Dollars in Millions)
Consolidated (loss)/income before income taxes $ (51) $ 87
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Fixed charges:
Interest.................................. 217 296
Portion of rent expense
representative of the
interest factor (deemed
to be one-third)....................... 2 2
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Total fixed charges.......................... 219 298
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Earnings available
for fixed charges......................... $ 168 $ 385
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Ratio of earnings to
fixed charges<F1>......................... -* 1.29
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* TMCC's ratio of earnings to fixed charges was less than 1:1 ratio for
the quarter ended June 30, 2002 and 1.29 for the quarter ended June 30,
2001. The deficiency in the ratio for the quarter ended June 30, 2002
was primarily due to a decrease in net income from financing operations
due to an unfavorable fair value adjustment related to the Statement of
Financial Statement Accounting Standards No. 133, "Accounting for
Derivative Instruments and Hedging Activities" ("SFAS 133") and
Statement of Financial Accounting Standards No. 138, "Accounting for
Certain Derivative Instruments and Certain Hedging Activities - an
Amendment of SFAS 133 ("SFAS 138"), which is reported as SFAS 133 and
138 fair value adjustments in the Consolidated Statement of Income. The
Company would require an additional $51 million in net income to attain
a 1:1 ratio.
<FN>
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<F1> TMCC has guaranteed certain obligations of affiliates and
subsidiaries as discussed in Note 9 - Commitments and Contingent
Liabilities of the Consolidated Financial Statements. For the quarter
ended June 30, 2002, TMCC has not incurred any fixed charges in
connection with such guarantees and no amount is included in any ratio
of earnings to fixed charges.
</FN>