XML 158 R22.htm IDEA: XBRL DOCUMENT v3.20.1
Product warranties and recalls and other safety measures
12 Months Ended
Mar. 31, 2020
Product warranties and recalls and other safety measures
13. Product warranties and recalls and other safety measures:
Toyota provides product warranties for certain defects mainly resulting from manufacturing based on warranty contracts with its customers at the time of sale of products. Toyota accrues estimated warranty costs to be incurred in the future in accordance with the warranty contracts. In addition to product warranties, Toyota initiates recalls and other safety measures to repair or to replace parts which might be expected to fail from products safety perspectives or customer satisfaction standpoints. Toyota accrues for costs of recalls and other safety measures based on the amount estimated from historical experience.
Liabilities for product warranties and liabilities for recalls and other safety measures have been combined into a single table showing an aggregate liability for quality assurances due to the fact that both are liabilities for costs to repair or replace defects of vehicles and the amounts incurred for recalls and other safety measures may affect the amounts incurred for product warranties and vice versa.
Liabilities for quality assurances are included in “Accrued expenses” in the consolidated balance sheets.
The net changes in liabilities for quality assurances above for the years ended March 31, 2018, 2019 and 2020 consist of the following:
 
Yen in millions
 
 
For the years ended March 31,
 
 
2018
 
 
2019
 
 
 
 
 
 
 
 
 
2020
 
 
 
 
 
 
 
 
Liabilities for quality assurances at beginning of year
   
1,696,938
     
1,702,312
     
1,769,275
 
Payments made during year
   
(586,943
)    
(489,461
)    
(490,117
)
Provision for quality assurances
   
649,377
     
565,012
     
314,494
 
Changes relating to
pre-existing
quality assurances
   
(56,769
)    
(1,411
)    
(34,345
)
Other
   
(291
)    
(7,177
)    
(6,194
)
                         
Liabilities for quality assurances at end of year
   
1,702,312
     
1,769,275
     
1,553,113
 
                         
“Other” primarily includes the impact of currency translation adjustments and the impact of consolidation and deconsolidation of certain entities due to changes in ownership interest.
The table below shows the net changes in liabilities for recalls and other safe
ty
 measures which are compris
ed
 in liabilities for quality assurances above for the years ended March 31, 2018, 2019 and 2020.
 
Yen in millions
 
 
For the years ended March 31,
 
 
2018
 
 
2019
 
 
 
 
 
 
 
 
 
2020
 
 
 
 
 
 
 
Liabilities for recalls and other safety measures at beginning of year
   
1,275,200
     
1,275,256
     
1,302,309
 
Payments made during year
   
(456,177
)    
(396,971
)    
(363,708
)
Provision for recalls and other safety measures
   
454,391
     
428,613
     
169,134
 
Other
   
1,842
     
(4,589
)    
(3,024
)
                         
Liabilities for recalls and other safety measures at end of year
   
1,275,256
     
1,302,309
     
1,104,711