Employee benefit plans (Tables)

12 Months Ended

Mar. 31, 2020

Information Regarding Defined Benefit Plans

Information regarding Toyota’s defined benefit plans is as follows:

	Yen in millions
	March 31,
	Japanese plans						Foreign plans
	2019			2020			2019			2020
Change in benefit obligation
Benefit obligation at beginning of year		2,019,310			2,100,073			1,097,981			1,186,897
Service cost		99,838			93,298			46,930			46,869
Interest cost		12,967			10,514			40,708			40,335
Plan participants’ contributions		974			1,014			1,045			2,018
Plan amendments		(1,067	)		(988	)		13			3,308
Net actuarial (gain) loss		67,391			(48,602	)		7,755			(2,865	)
Acquisition and other		(20,786	)		(55,070	)		21,634			(28,548	)
Benefits paid		(78,554	)		(48,796	)		(29,169	)		(40,200	)
Benefit obligation at end of year		2,100,073			2,051,443			1,186,897			1,207,814
Change in plan assets
Fair value of plan assets at beginning of year		1,612,879			1,600,491			815,483			882,784
Actual return on plan assets		3,208			(70,503	)		59,237			13,421
Acquisition and other		(13,705	)		(41,105	)		12,696			(28,068	)
Employer contributions		41,276			38,144			18,952			29,407
Plan participants’ contributions		974			1,014			1,045			2,018
Benefits paid		(44,141	)		(15,010	)		(24,629	)		(30,661	)
Fair value of plan assets at end of year		1,600,491			1,513,031			882,784			868,901
Funded status		499,582			538,412			304,113			338,913

Amounts Recognized in Consolidated Balance Sheet Associated with Defined Benefit Plans

Amounts recognized in the consolidated balance sheets as of March 31, 2019 and 2020 are comprised of the following:

	Yen in millions
	March 31,
	Japanese plans						Foreign plans
	2019			2020			2019			2020
Accrued expenses (Accrued pension and severance costs)		34,298			33,422			3,234			7,934
Accrued pension and severance costs		657,380			639,764			306,026			338,862
Investments and other assets - Other (Prepaid pension and severance costs)		(192,096	)		(134,774	)		(5,147	)		(7,883	)
Net amount recognized		499,582			538,412			304,113			338,913

Amounts Recognized in Accumulated Other Comprehensive Income (Loss)

Amounts recognized in accumulated other comprehensive income (loss) as of March 31, 2019 and 2020 are comprised of the following:

	Yen in millions
	March 31,
	Japanese plans						Foreign plans
	2019			2020			2019			2020
Net actuarial loss		(339,814	)		(383,485	)		(91,072	)		(116,171	)
Prior service costs		29,801			21,538			(1,612	)		(5,352	)
Net transition obligation		—			—			—			—
Net amount recognized		(310,013	)		(361,947	)		(92,684	)		(121,523	)

Projected Benefit Obligation, Accumulated Benefit Obligation and Fair Value of Plan Assets for which Accumulated Benefit Obligations Exceed Plan Assets

The projected benefit obligation and fair value of plan assets for which the projected benefit obligations exceed plan assets are as follows:

	Yen in millions
	March 31,
	Japanese plans				Foreign plans
	2019		2020		2019		2020
Projected benefit obligation		878,009		846,068		681,025		1,025,234
Fair value of plan assets		203,277		188,241		357,583		678,522

The accumulated benefit obligation and fair value of plan assets for which the accumulated benefit obligations exceed plan assets are as follows:

	Yen in millions
	March 31,
	Japanese plans				Foreign plans
	2019		2020		2019		2020
Accumulated benefit obligation		847,017		783,561		515,918		403,810
Fair value of plan assets		198,315		155,345		215,006		93,717

Components of Net Periodic Pension Cost

Components of the net periodic pension cost are as follows:

	Yen in millions
	For the years ended March 31,
	Japanese plans									Foreign plans
	2018			2019			2020			2018			2019			2020
Service cost		88,964			99,838			93,298			35,887			46,930			46,869
Interest cost		13,252			12,967			10,514			37,817			40,708			40,335
Expected return on plan assets		(36,409	)		(38,551	)		(37,813	)		(41,048	)		(37,530	)		(43,003	)
Amortization of prior service costs		(4,226	)		(3,904	)		(4,346	)		313			219			142
Recognized net actuarial loss		7,462			6,927			8,356			5,452			7,102			4,255
Amortization of net transition obligation		—			—			—			—			—			—
Net periodic pension cost		69,043			77,277			70,009			38,421			57,429			48,598

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) are as follows:

	Yen in millions
	For the years ended March 31,
	Japanese plans									Foreign plans
	2018			2019			2020			2018			2019			2020
Net actuarial gain (loss)		39,852			(102,734	)		(59,714	)		(17,163	)		13,952			(26,717	)
Recognized net actuarial loss		7,462			6,927			8,356			5,452			7,102			4,255
Prior service costs		58			1,067			988			12			(13	)		(3,308	)
Amortization of prior service costs		(4,226	)		(3,904	)		(4,346	)		313			219			142
Amortization of net transition obligation		—			—			—			—			—			—
Other		(7,979	)		4,610			2,782			9,004			7,289			(3,211	)
Total recognized in other comprehensive income (loss)		35,167			(94,034	)		(51,934	)		(2,382	)		28,549			(28,839	)

Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Periodic Pension Cost

Weighted-average assumptions used to determine benefit obligations as of March 31, 2019 and 2020 are as follows:

	March 31,
	Japanese plans						Foreign plans
	2019			2020			2019			2020
Discount rate		0.6	%		0.6	%		3.8	%		3.5	%
Rate of compensation increase		3.1	%		2.5	%		3.5	%		3.4	%

As of March 31, 2019 and 2020, the parent company and certain subsidiaries in Japan employ “point” based retirement benefit plans and do not use the rates of compensation increase to determine benefit obligations.

Weighted-average assumptions used to determine net periodic pension cost for the years ended March 31, 2018, 2019 and 2020 are as follows:

	For the years ended March 31,
	Japanese plans									Foreign plans
	2018			2019			2020			2018			2019			2020
Discount rate		0.7	%		0.7	%		0.6	%		4.0	%		3.9	%		3.8	%
Expected return on plan assets		2.4	%		2.4	%		2.4	%		6.0	%		5.6	%		5.2	%
Rate of compensation increase		2.9	%		3.3	%		3.1	%		3.8	%		3.6	%		3.5	%

Summary of Fair Value of Classes of Plan Assets

The following table summarizes the fair value of classes of plan assets as of March 31, 2019 and 2020. See note 28 to the consolidated financial statements for three levels of input which are used to measure fair value.

Japanese plans

	Yen in millions
	March 31, 2019
	Level 1		Level 2		Level 3		Total
Equity securities
Common stocks		531,159		—		—		531,159
Commingled funds		—		192,012		—		192,012
		531,159		192,012		—		723,171
Debt securities
Government bonds		98,578		—		—		98,578
Commingled funds		—		286,783		—		286,783
Other		—		54,652		—		54,652
		98,578		341,435		—		440,013
Insurance contracts		—		226,093		—		226,093
Other		84,208		38,439		4,242		126,889
Investments measured at net asset value		—		—		—		84,325
Total		713,945		797,979		4,242		1,600,491

	Yen in millions
	March 31, 2020
	Level 1		Level 2		Level 3		Total
Equity securities
Common stocks		467,885		—		—		467,885
Commingled funds		—		135,979		—		135,979
		467,885		135,979		—		603,864
Debt securities
Government bonds		86,212		—		—		86,212
Commingled funds		—		278,394		—		278,394
Other		—		75,644		—		75,644
		86,212		354,038		—		440,250
Insurance contracts		—		226,043		—		226,043
Other		89,986		59,780		6,199		155,965
Investments measured at net asset value		—		—		—		86,909
Total		644,083		775,840		6,199		1,513,031

Foreign plans

	Yen in millions
	March 31, 2019
	Level 1		Level 2		Level 3		Total
Equity securities
Common stocks		123,875		—		—		123,875
Commingled funds		—		215,386		—		215,386
		123,875		215,386		—		339,261
Debt securities
Government bonds		141,054		—		—		141,054
Commingled funds		—		—		—		—
Other		—		164,877		—		164,877
		141,054		164,877		—		305,931
Insurance contracts		—		—		—		—
Other		10,292		24,810		27,903		63,005
Investments measured at net asset value		—		—		—		174,587
Total		275,221		405,073		27,903		882,784

	Yen in millions
	March 31, 2020
	Level 1		Level 2		Level 3		Total
Equity securities
Common stocks		111,997		—		—		111,997
Commingled funds		—		186,918		—		186,918
		111,997		186,918		—		298,915
Debt securities
Government bonds		181,702		—		—		181,702
Commingled funds		—		—		—		—
Other		—		170,650		—		170,650
		181,702		170,650		—		352,352
Insurance contracts		—		—		—		—
Other		10,425		24,410		28,251		63,086
Investments measured at net asset value		—		—		—		154,548
Total		304,124		381,978		28,251		868,901

Changes in Level 3 Plan Assets Measured At Fair Value

The following tables summarize the changes in Level 3 plan assets measured at fair value for the years ended March 31, 2018, 2019 and 2020:

Japanese plans

	Yen in millions
	For the years ended March 31,
	2018									2019									2020
	Debt securities			Other			Total			Debt securities			Other			Total			Debt securities		Other			Total
Balance at beginning of year		81			496			577			19			—			19			—		4,242			4,242
Actual return on plan assets		—			(4	)		(4	)		—			(164	)		(164	)		—		(43	)		(43	)
Purchases, sales and settlements		(62	)		(492	)		(554	)		(19	)		—			(19	)		—		—			—
Other		—			—			—			—			4,406			4,406			—		2,000			2,000
Balance at end of year		19			—			19			—			4,242			4,242			—		6,199			6,199

Foreign plans

	Yen in millions
	For the years ended March 31,
	2018			2019			2020
	Other			Other			Other
Balance at beginning of year		30,903			31,288			27,903
Actual return on plan assets		2,024			(4,784	)		891
Purchases, sales and settlements		—			—			—
Other		(1,639	)		1,399			(543	)
Balance at end of year		31,288			27,903			28,251

Expected Benefit Payments Associated with Pension and Postretirement Benefit Plans

The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

	Yen in millions
Years ending March 31,	Japanese plans		Foreign plans
2021		82,748		43,815
2022		86,207		45,841
2023		87,914		47,645
2024		90,887		49,795
2025		87,909		50,854
from 2026 to 2030		441,675		281,343
Total		877,340		519,293