EXHIBIT 12.1
TOYOTA MOTOR CREDIT CORPORATION
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended Six Months Ended
September 30, September 30,
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2003 2002 2003 2002
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(Dollars in Millions)
Consolidated income/(loss) before income taxes $ 354 $ 6 $ 437 $ (45)
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Fixed charges:
Interest<F1>.............................. 87 332 318 763
Portion of rent expense
representative of the
interest factor (deemed
to be one-third)....................... 2 2 4 4
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Total fixed charges.......................... 89 334 322 767
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Earnings available
for fixed charges......................... $ 443 $ 340 $ 759 722
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Ratio of earnings to
fixed charges<F2>......................... 4.98 1.02 2.36 -*
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* The ratio of earnings to fixed charges was less than 1:1 ratio for the six months
ended September 30, 2002. The deficiency in the ratio for the six months ended
September 30, 2002 was primarily due to a decrease in net income from financing
operations due to an unfavorable fair value adjustment related to the application of Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and
Hedging Activities", and related amendments. The Company would have required an
additional $45 million in net income to attain a 1:1 ratio.
<FN>
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<F1> For the three and six months ended September 30, 2003, interest expense included net
unrealized gains associated with derivative fair value adjustments of $83 million and $45 million,
respectively. For the three and six months ended September 30, 2002, interest expense included
net unrealized losses associated with derivative fair value adjustments of $124 million and $338
million, respectively.
<F2> Toyota Motor Credit Corporation ("TMCC") has guaranteed certain obligations of affiliates as
discussed in Note 8 - Commitments and Contingent Liabilities of the Consolidated Financial
Statements. For the three and six month periods ended September 30, 2003 and 2002, TMCC has not
incurred any fixed charges in connection with such guarantees and no amounts have been included in
any ratio of earnings to fixed charges.
</FN>