Allowance for doubtful accounts and credit losses

12 Months Ended

Mar. 31, 2020

Allowance for doubtful accounts and credit losses

10. Allowance for doubtful accounts and credit losses:

The net changes in the allowance for doubtful accounts relating to trade accounts and notes receivable for the years ended March 31, 2018, 2019 and 2020 are as follows:

	Yen in millions
	For the years ended March 31,
	2018			2019			2020
Allowance for doubtful accounts at beginning of year		100,712			98,590			90,373
Provision for doubtful accounts, net of reversal		(74	)		(1,375	)		5,689
Write-offs		(2,374	)		(2,472	)		(2,691	)
Other		326			(4,370	)		(3,019	)
Allowance for doubtful accounts at end of year		98,590			90,373			90,352

“Other” includes the impact of currency translation adjustments for the years ended March 31, 2018, 2019 and 2020.

A portion of the allowance for doubtful accounts balance at March 31, 2019 and 2020 totaling ¥74,003 million and ¥66,408 million, respectively, is attributed to certain non-current receivable balances which are reported as “Other” assets in the consolidated balance sheets.

The net changes in the allowance for credit losses relating to finance receivables and vehicles and equipment on operating leases for the years ended March 31, 2018, 2019 and 2020 are as follows:

	Yen in millions
	For the years ended March 31,
	2018			2019			2020
Allowance for credit losses at beginning of year		178,101			184,087			196,399
Provision for credit losses, net of reversal		76,143			81,440			137,293
Charge-offs		(96,444	)		(91,698	)		(98,352	)
Recoveries		25,344			26,178			25,578
Other		943			(3,608	)		(18,569	)
Allowance for credit losses at end of year		184,087			196,399			242,349

“Other” primarily includes the impact of currency translation adjustments for the years ended March 31, 2018, 2019 and 2020.

The net changes in the allowance for credit losses above relating to retail receivables portfolio segment, finance lease receivables portfolio segment and wholesale and other dealer loan receivables portfolio segment for the years ended March 31, 2018, 2019 and 2020 are as follows:

	Yen in millions
	For the year ended March 31, 2018
	Retail			Finance leases			Wholesale and other dealer loans
Allowance for credit losses at beginning of year		104,354			23,962			30,896
Provision for credit losses, net of reversal		52,891			7,115			6,497
Charge-offs		(74,868	)		(2,708	)		(823	)
Recoveries		20,511			315			59
Other		569			133			171
Allowance for credit losses at end of year		103,457			28,817			36,800

	Yen in millions
	For the year ended March 31, 2019
	Retail			Finance leases			Wholesale and other dealer loans
Allowance for credit losses at beginning of year		103,457			28,817			36,800
Provision for credit losses, net of reversal		68,470			710			3,990
Charge-offs		(72,657	)		(2,903	)		(1,111	)
Recoveries		20,485			345			45
Other		(2,161	)		(486	)		(716	)
Allowance for credit losses at end of year		117,594			26,483			39,008

	Yen in millions
	For the year ended March 31, 2020
	Retail			Finance leases			Wholesale and other dealer loans
Allowance for credit losses at beginning of year		117,594			26,483			39,008
Provision for credit losses, net of reversal		107,784			9,716			12,544
Charge-offs		(82,613	)		(3,267	)		(105	)
Recoveries		20,277			353			33
Other		(11,552	)		(2,386	)		(3,691	)
Allowance for credit losses at end of year		151,490			30,899			47,789