Toyota 2010 Annual Report Download - page 86

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TOYOTA ANNUAL REPORT 2010 84
The following table summarizes the changes in Level 3 plan assets measured at fair value for the period
ended March 31, 2010:
Yen in millions
For the year ended March 31, 2010
Debt securities Other Total
Balance at beginning of year ······································································· ¥ 5,242 ¥45,825 ¥51,067
Actual return on plan assets ····································································· 818 (2,206) (1,388)
Purchases, sales and settlements ·························································· (2,233) 3,467 1,234
Other ····················································································································· (236) (568) (804)
Balance at end of year ····················································································· ¥ 3,591 ¥46,518 ¥50,109
U.S. dollars in millions
For the year ended March 31, 2010
Debt securities Other Total
Balance at beginning of year ······································································· $ 56 $ 493 $ 549
Actual return on plan assets ····································································· 9 (24) (15)
Purchases, sales and settlements ·························································· (24) 37 13
Other ····················································································································· (3) (6) (9)
Balance at end of year ····················································································· $ 38 $ 500 $ 538
Toyota expects to contribute ¥111,112 million ($1,194 million) to its pension plans in the year ending
March 31, 2011.
The following pension benefi t payments, which refl ect expected future service, as appropriate, are
expected to be paid:
Years ending March 31, Yen in
millions
U.S. dollars
in millions
2011 ········································································································································································ ¥ 79,457 $ 854
2012 ········································································································································································ 75,952 816
2013 ········································································································································································ 74,915 805
2014 ········································································································································································ 76,933 827
2015 ········································································································································································ 80,622 867
from 2016 to 2020 ·········································································································································· 455,453 4,895
Total ···································································································································································· ¥843,332 $9,064
measurement day.
The fair values of insurance contracts are
measured using contracted amount with
accrued interest.
Other consists of cash equivalents, other
private placement investment funds and other
assets. The fair values of other private placement
investment funds are measured using the NAV
provided by the administrator of the fund, and are
categorized by the ability to redeem investments
at the measurement day.
Toyota employs derivative fi nancial instruments,
including foreign exchange forward contracts,
foreign currency options, interest rate swaps,
interest rate currency swap agreements and
interest rate options to manage its exposure to
fl uctuations in interest rates and foreign currency
exchange rates. Toyota does not use derivatives
for speculation or trading.
Fair value hedges
Toyota enters into interest rate swaps and
interest rate currency swap agreements mainly
to convert its fi xed-rate debt to variable-rate
debt. Toyota uses interest rate swap agreements
in managing interest rate risk exposure. Interest
rate swap agreements are executed as either
an integral part of specifi c debt transactions or
on a portfolio basis. Toyota uses interest rate
currency swap agreements to hedge exposure
to currency exchange rate fl uctuations on
principal and interest payments for borrowings
denominated in foreign currencies. Notes and
loans payable issued in foreign currencies are
hedged by concurrently executing interest rate
currency swap agreements, which involve the
exchange of foreign currency principal and
interest obligations for each functional currency
obligations at agreed-upon currency exchange
and interest rates.
For the years ended March 31, 2008, 2009 and
2010, the ineff ective portion of Toyotas fair value
hedge relationships was not material. For fair
value hedging relationships, the components of
each derivatives gain or loss are included in the
assessment of hedge eff ectiveness.
Undesignated derivative fi nancial instruments
Toyota uses foreign exchange forward contracts,
foreign currency options, interest rate swaps,
interest rate currency swap agreements, and
interest rate options, to manage its exposure
to foreign currency exchange rate fl uctuations
and interest rate fl uctuations from an economic
perspective, and for which Toyota is unable or
has elected not to apply hedge accounting.
Postretirement benefi ts other than pensions
and postemployment benefi ts
Toyotas U.S. subsidiaries provide certain health
care and life insurance benefi ts to eligible
retired employees. In addition, Toyota provides
benefi ts to certain former or inactive employees
after employment, but before retirement. These
benefi ts are currently unfunded and provided
through various insurance companies and
health care providers. The costs of these benefi ts
are recognized over the period the employee
provides credited service to Toyota. Toyotas
obligations under these arrangements are not
material.
Financial Section
Financial Section
Investor Information
Corporate Information
Special Feature
Consolidated
Performance Highlights
Business Overview
Top Messages
Notes to Consolidated Financial Statements
Derivative fi nancial instruments:
20