Net revenues

12 Months Ended

Mar. 31, 2020

Net revenues

26. Net revenues

(1) Summary by business segments and products

The table below shows Toyota’s net revenues from external customers by business and by product category.

	Yen in millions
	For the year ended March 31, 2019		For the year ended March 31, 2020
Sales of products
Automotive
Vehicles		23,066,190	22,852,916
Parts and components for overseas production		625,483	603,928
Parts and components for after service		2,093,437	2,103,478
Other		1,249,382	1,274,163
Total automotive		27,034,492	26,834,485
All other		1,070,846	925,264
Total sales of products		28,105,338	27,759,749
Financial services		2,120,343	2,170,243
Total net revenues		30,225,681	29,929,992

The majority of sales of products are revenues recognized from contracts with customers based on ASC 606 “Revenue from Contracts with Customers,” and receivables related to such revenues are recognized as “Trade accounts and notes receivable, less allowance for doubtful accounts.”

For the year ended March 31, 2019 and 2020, ¥84,230 million and ¥85,192 million of financial service revenues were accounted for under ASC 606 “Revenue from Contracts with Customers.”

The breakdown of income from leases included in financial service revenues is as follows;

	Yen in millions
	For the year ended March 31, 2019		For the year ended March 31, 2020
Finance leases
Financial income related to net lease investment		91,703		98,865
Operating leases		1,056,080		1,051,804
Total		1,147,783		1,150,669

(2) Contract liabilities

Contract liabilities consist of the following:

	Yen in millions
	March 31, 2019		March 31, 2020
Contract liabilities		675,018		691,954

Contract liabilities are mainly related to advances received from customers. On the consolidated financial statements, contract liabilities are included in “Other current liabilities” or “Other long-term liabilities.” For the year ended March 31, 2019 and 2020, the amount of revenue recognized which were included in the contract liability balance as of April 1, 2018 and 2019 were ¥336,206 million and ¥366,655 million.

(3) Performance obligations

As of March 31, 2020, which is the end of the reporting period, the aggregate amount of transaction prices allocated to unsatisfied performance obligations related to contracts that have original expected durations in excess of one year was ¥589,844 million.

The main contents of unsatisfied performance obligations related to contracts are insurance revenues and maintenance revenues.

For insurance revenues, Toyota receives payment agreed upon in the contract at the inception of the contract, and revenue is recognized over the term of the contract, which ranges from 3 to 120 months. As of March 31, 2020, the unsatisfied performance obligations related to insurance revenues was ¥223,754 million, and Toyota expects to recognize as revenue ¥65,168 million in fiscal 2021, and ¥158,586 million thereafter.

For maintenance revenues, Toyota receives payment agreed upon in the contract at the inception of the contract, and revenue is recognized over the term of the contract, which ranges from 18 to 84 months.

Unsatisfied performance obligations for sales of products related to contracts that have an original expected duration of one year or less have been excluded from this disclosure.