Toyota company that engages in the design, manufacture, assembly,

Toyota
Motor Corporation competes in the automotive industry.  Founded in 1937, Toyota Motor Corporation is a
Japanese company that engages in the design, manufacture, assembly, and sale of
passenger cars, minivans, commercial vehicles, and related parts and
accessories primarily in Japan, North America, Europe, and Asia.  Current brands include Toyota, Lexus, Daihatsu
and Hino.  Toyota Motor Corporation is
the leading auto manufacturer and the eighth largest company in the world.  As of March 31, 2017, Toyota Motor
Corporation’s annual revenue was $229 billion and it employed 364,445 people.  The production
of Toyota automobiles was started in 1933 as a division of Toyoda Automatic Loom Works devoted
to the production of automobiles under the direction of the founder’s
son, Kiichiro Toyoda.  Its first vehicles were the A1 passenger car and the G1 in 1935.  Since then Toyota started to design vehicles
mainly small sized vehicles under the name Toyopet. The first vehicle sold
under this name was the Toyopet SA, but it also
included vehicles such as the Toyopet SB light
truck, Toyopet Stout light
truck, Toyopet Crown, Toyopet Master, and the Toyopet Corona. However when
they entered the United States market in 1957 the name was not well received by
consumers because of it connotations to toys and pets.  That is when they decided to change the name
to Toyota Motors.

Toyota
Motors current assets on the balance sheet include the cash and cash
equivalents, marketable securities, accounts and notes receivable, financial
receivables, inventories, equipment on operating leases and other current
assets.  Toyota cash and cash equivalent include all highly liquid investments with
original maturities of three months or less, that are readily convertible to
known amounts of cash and are so near maturity that they present insignificant
risk of changes in value because of changes in interest rates.  The inventories of Toyota are valued at cost,
not in excess of market, cost being determined on the “average-cost” basis,
except for the cost of finished products carried by certain subsidiary
companies which is determined on the “specific identification” basis or
“last-in, first-out” (“LIFO”) basis.  Inventories valued on the LIFO basis totaled
¥382,660 million and ¥433,802 million at March 31, 2016 and
2017, respectively.  Had the “first-in,
first-out” basis been used for those companies using the LIFO basis,
inventories would have been ¥13,297 million and ¥40,650 million
higher than reported at March 31, 2016 and 2017, respectively.  Marketable securities consist of debt and
equity securities.  Debt and equity
securities designated as available-for-sale are carried at fair value with
unrealized gains or losses included as a component of accumulated other
comprehensive income in shareholders’ equity, net of applicable taxes.  Individual securities classified as
available-for-sale are reduced to net realizable value for other-than-temporary
declines in market value.  In determining
if a decline in value is other-than-temporary, Toyota considers the length of
time and the extent to which the fair value has been less than the carrying
value, the financial condition and prospects of the company and Toyota’s
ability and intent to retain its investment in the company for a period of time
sufficient to allow for any anticipated recovery in market value.  Realized gains and losses, which are
determined on the average-cost method, are reflected in the consolidated
statements of income when realized.  Finance
receivables recorded on Toyota’s consolidated balance sheets are comprised of
the unpaid principal balance, plus accrued interest, less charge-offs, net of
any unearned income and deferred origination costs and the allowance for credit
losses. Deferred origination costs are amortized so as to approximate a level
rate of return over the term of the related contracts.

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Toyotas noncurrent assets mainly consist
of property plants and equipment and Goodwill and intangible assets.  Toyota’s Property,
plant and equipment are stated at cost.  Major
renewals and improvements are capitalized; minor replacements, maintenance and
repairs are charged to current operations.  Depreciation of property, plant and equipment
is mainly computed on the declining-balance method for the parent company and
Japanese subsidiaries and on the straight-line method for foreign subsidiary
companies at rates based on estimated useful lives of the respective assets
according to general class, type of construction and use.  The estimated useful lives range from 2 to 65
years for buildings and from 2 to 20 years for machinery and equipment.  Vehicles and equipment on operating leases to
third parties are originated by dealers and acquired by certain consolidated
subsidiaries.  Such subsidiaries are also
the lessors of certain property that they acquire directly.  Vehicles and equipment on operating leases are
depreciated primarily on a straight-line method over the lease term, generally
from 2 to 5 years, to the estimated residual value.  Incremental direct costs incurred in
connection with the acquisition of operating lease contracts are capitalized
and amortized on a straight-line method over the lease term.  The goodwill is not material to Toyota’s
consolidated balance sheets.  Intangible
assets consist mainly of software.  Intangible
assets with a definite life are amortized on a straight-line basis with
estimated useful lives mainly of 5 years.  Intangible assets with an indefinite life are
tested for impairment whenever events or circumstances indicate that a carrying
amount of an asset (asset group) may not be recoverable.  An impairment loss would be recognized when the
carrying amount of an asset exceeds the estimated undiscounted cash flows used
in determining the fair value of the asset.  The amount of the impairment loss to be
recorded is generally determined by the difference between the fair value of
the asset using a discounted cash flow valuation method and the current book
value.

Toyota’s liabilities mainly consist of short-term borrowing
and long-term debt.  For Toyota the fair
values of short-term borrowings and long-term debt including the current
portion, except for secured loans provided by securitization transactions using
special-purpose entities, are estimated based on the discounted amounts of
future cash flows using Toyota’s current borrowing rates for similar
liabilities.  As these inputs are
observable, these debts are classified in Level 2.  The fair values of the secured loans provided
by securitization transactions are estimated based on current market rates and
credit spreads for debt with similar maturities.  Internal assumptions including prepayment speeds
and expected credit losses are used to estimate the timing of cash flows to be
paid on the underlying securitized assets.  As these valuations utilize unobservable
inputs, the secured loans are classified in Level 3.  See note 11 to the consolidated financial
statements for information regarding the secured loans. Accrued pension cost is
included in the liabilities of Toyota that is basically the employee benefits
obligation. Toyota has both defined benefit and
defined contribution plans for employees’ retirement benefits. Retirement
benefit obligations are measured by actuarial calculations in accordance with
U.S.GAAP.  The funded status of the
defined benefit postretirement plans is recognized on the consolidated balance
sheets as prepaid pension and severance costs or accrued pension and severance
costs, and the funded status change is recognized in the year in which it
occurs through other comprehensive income.

            Revenues
from sales of vehicles and parts for Toyota are generally recognized upon
delivery which is considered to have occurred when the dealer has taken title
to the product and the risk and reward of ownership have been substantively
transferred, Toyota’s sales incentive programs principally consist of cash payments
to dealers calculated based on vehicle volume or a model sold by a dealer
during a certain period of time. Toyota accrues these incentives as revenue
reductions upon the sale of a vehicle corresponding to the program by the
amount determined in the related incentive program.  Revenues from the sales of vehicles under
which Toyota conditionally guarantees the minimum resale value are recognized
on a pro rata basis from the date of sale to the first exercise date of the
guarantee in a manner similar to operating lease accounting.  The underlying vehicles of these transactions
are recorded as assets and are depreciated in accordance with Toyota’s
depreciation policy.  Revenues from
retail financing contracts and finance leases are recognized using the
effective yield method.  Revenues from
operating leases are recognized on a straight-line basis over the lease term.  The sale of certain vehicles includes a
determinable amount for the contract, which entitles customers to free vehicle
maintenance.  Such revenues from free
maintenance contracts are deferred and recognized as revenue over the period of
the contract, which approximates the pattern of the related costs.

According to Pricewaterhouse Coopers LLC the consolidated financial statements listed in the
accompanying index present fairly, in all material respects, the financial
position of Toyota Motor Corporation and its subsidiaries at March 31,
2016 and 2017, and the results of their operations and their cash flows for
each of the three years in the period ended March 31, 2017 in conformity
with accounting principles generally accepted in the United States of America.  Also in their opinion, the Company maintained,
in all material respects, effective internal control over financial reporting
as of March 31, 2017, based on criteria established in Internal Control—Integrated
Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO). 

            General Motors, incorporated as a
Delaware corporation in 2009, is a domestic car and truck manufacturing
company.  Operating in a motor vehicle
industry that focuses on meeting the demands of North American customers,
General Motors designs, builds, and sell and lease a variety of vehicles,
including cars, trucks, crossovers, and automobile parts worldwide.  Due to the competitive market GM is apart of,
they appease consumers with certain preferences, such as vehicle design, price,
quality, available options, safety, reliability, fuel economy and
functionality. 

            General Motor’s current assets on
the balance sheet include cash and equivalents, marketable securities, accounts
and notes receivable, financial receivables, inventories, equipment on
operating leases and other current assets. 
GM cash equivalents are short-term, liquid investments with
original maturities of 90 days or less. 
Inventories are stated at the lower of cost or net realizable value (the
estimated selling price in the ordinary course of business less cost to sell).  The net realizable value for off-lease and
other vehicles is current auction sales proceeds less disposal and warranty
costs.     Equipment on operating leases,
net is reported at cost, less accumulated depreciation and impairment, net of
origination fees or costs and lease incentives.  Estimated income from operating lease assets
equals net of lease origination costs. 
This is recorded as operating lease revenue on a straight-line basis
over the term of the lease agreement.  Leased
vehicles are depreciated on a straight-line basis to an estimated residual
value over the term of the lease agreements. 

            General
Motor’s noncurrent assets on the balance sheet include financial receivables,
property, goodwill and intangible assets, deferred incomes taxes, and other
assets. GM records property, plant and equipment at cost.  Improvements to PP that extend the
useful life or add functionality are capitalized.  The gross amount of assets under capital
leases is included in PP. 
Expenditures for repairs and maintenance are charged to expense as
incurred.  GM depreciates all depreciable
property using the straight-line method. 
Leasehold improvements are amortized over the shorter of: the period of
lease or the life of the asset.  The
amortization of the assets under capital leases is included in depreciation
expense.  Upon retirement or disposition
of property, plant and equipment, the cost and related accumulated depreciation
are eliminated and any resulting gain or loss is recorded in earnings.  GM intangible assets include brand names,
technology and intellectual property, customer relationships and dealer
networks.  Intangible assets are
amortized on a straight-line or an accelerated method of amortization over
their estimated useful lives.  Impairment
charges related to intangible assets are recorded in automotive selling,
general and administrative expense or automotive cost of sales.  Amortization of developed technology and
intellectual property is recorded in automotive cost of sales.  Amortization of brand names, customer
relationships and our dealer networks is recorded in automotive selling, general
and administrative expense or GM Financial interest, operating and other
expenses.

            General
Motor’s current liabilities include accounts payable, short-term debt and
current portion of long-term debt, and accrued liabilities.  Automotive debt’s fair value is based on
quoted prices in active markets for identical instruments that a market
participant can access at the measurement date. The fair value of automotive
debt is based on a discounted cash flow model using observable inputs.

            General
Motor’s non-current liabilities include long-term debt, postretirement benefits
other than pensions, pensions, and other liabilities.  Benefit pension plans covering eligible U.S.

hourly employees provide benefits of negotiated, stated amounts for each year
of service and supplemental benefits for employees who retire with 30 years of
service before normal retirement age. The benefits provided by the defined
benefit pension plans covers salary eligible U.S. hired and Canadian employees
are generally on years of service and compensation history. The funding policy
for qualified defined benefit pension plans is to contribute annually not less
than the minimum required by applicable laws and regulations or to directly pay
benefit payments where appropriate.

            According
to General Motor’s 10K, GM had about 1.5 billion shares of common stock issued
and outstanding at the end of fiscal year 2016. 
Holders of the GM stock were authorized to dividends at the choice of
the Board of Directors. Their dividend declared per common share was $1.52 and
total dividends paid on common stock were $2.3 billion on December 31, 2016. 

            Deloitte
& Touche LLP completed General Motor’s audit report and gave an unqualified
opinion for fiscal ending December 31, 2016. 
Deloitte concluded that the consolidated financial statements were
presented fairly and in conformity with accounting principles generally
accepted accounting principals.  Deloitte’s opinion also included the General
Motor’s effective internal control over financial reporting based on the
criteria established internal control.