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Other financial instruments
 12 Months Ended
Mar. 31, 2020
Other financial instruments
22. Other financial instruments:
Toyota has certain financial instruments, including financial assets and liabilities which arose in the normal course of business. These financial instruments are executed with creditworthy financial institutions, and virtually all foreign currency contracts are denominated in U.S. dollars, euros and other currencies of major developed countries. Financial instruments involve, to varying degrees, market risk as instruments are subject to price fluctuations, and elements of credit risk in the event a counterparty should default. In the unlikely event the counterparties fail to meet the contractual terms of a foreign currency or an interest rate instrument, Toyota’s risk is limited to the fair value of the instrument. Although Toyota may be exposed to losses in the event of
non-performance
by counterparties on financial instruments, it does not anticipate significant losses due to the nature of its counterparties. Counterparties to Toyota’s financial instruments represent, in general, international financial institutions. Additionally, Toyota does not have a significant exposure to any individual counterparty. Toyota believes that the overall credit risk related to its financial instruments is not significant.
The following table summarizes the estimated fair values of Toyota’s financial instruments, excluding marketable securities, other securities investments, investments and other assets in affiliated companies and derivative financial instruments. See note 28 to the consolidated financial statements for three levels of input which are used to measure fair value.
 
Yen in millions
 
  
March 31, 2019
 
  
 
  
Estimated fair value
 
  
Carrying amount
 
  
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
Assets (Liabilities)
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Cash and cash equivalents
   
3,574,704
      
2,980,504
      
594,200
      
—  
      
3,574,704
  
Time deposits
   
1,126,352
      
—  
      
1,126,352
      
—  
      
1,126,352
  
Total finance receivables, net
   
15,450,745
      
—  
      
—  
      
15,668,542
      
15,668,542
  
Other receivables
   
568,156
      
—  
      
—  
      
568,156
      
568,156
  
Short-term borrowings
   
(5,344,973
 )    
—  
      
(5,285,807
 )    
(59,166
 )    
(5,344,973
 )
Long-term debt including the current portion
   
(14,786,184
 )    
—  
      
(12,786,541
 )    
(1,833,623
 )    
(14,620,164
 )
                                         
 
Yen in millions
 
 
March 31, 2020
 
 
 
  
Estimated fair value
 
 
Carrying amount
 
  
Level 1
 
  
Level 2
 
 
  
Level 3
 
  
Total
  
Assets (Liabilities)
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Cash and cash equivalents
   
4,190,518
     
3,598,318
      
592,200
     
—  
      
4,190,518
 
Time deposits
   
828,220
     
—  
      
828,220
     
—  
      
828,220
 
Total finance receivables, net
   
15,511,294
     
—  
      
—  
      
15,703,737
     
15,703,737
 
Other receivables
   
564,854
     
—  
      
—  
      
564,854
     
564,854
 
Short-term borrowings
   
(5,286,026
 )     
—  
      
(5,274,071
 )     
(11,955
 )     
(5,286,026
 )
Long-term debt including the current portion
   
(15,238,006
 )     
—  
      
(12,644,187
 )     
(1,966,646
 )     
(14,610,833
 )
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents and time deposits -
In the normal course of business, substantially all cash and cash equivalents and time deposits are highly liquid and are carried at amounts which approximate fair value due to its short duration. Cash equivalents and time deposits include negotiable certificate of deposit measured at fair value on a recurring basis. Where money market funds produce a daily net asset value in an active market, this value is used to determine the fair value of the fund investment, and the investment is classified in Level 1. All other types of cash and cash equivalents and time deposits are classified in Level 2.
Finance receivables, net -
The fair values of finance receivables are estimated by discounting expected cash flows to present value using internal assumptions, including prepayment speeds, expected credit losses and collateral value. Certain impaired finance receivables are measured at fair value on a nonrecurring basis based on collateral values.
As unobservable inputs are utilized, finance receivables are classified in Level 3.
Other receivables -
Other receivables are short-term receivables. These receivables are carried at amounts which approximate fair value, and the difference between the carrying amount and the fair value is not material. These receivables are classified in Level 3.
Short-term borrowings and long-term debt -
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.