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0822
Financial Section and
Investor Information
Business and
Performance Review
Special FeatureMessage/Vision
Management and
Corporate Information
Notes to Consolidated Financial Statements
Yen in millions
March 31, 2011
Level 1 Level 2 Level 3 Total
Assets
Cash equivalents ¥ 729,569 ¥ 58,281 ¥ — ¥ 787,850
Time deposits — 120,000 — 120,000
Marketable securities and other securities investments
Government bonds 3,127,170 — — 3,127,170
Common stocks 960,229 — — 960,229
Other 37,842 539,109 — 576,951
Derivative financial instruments — 405,524 11,782 417,306
Total ¥4,854,810 ¥1,122,914 ¥ 11,782 ¥5,989,506
Liabilities
Derivative financial instruments ¥ — ¥ (215,283) ¥ (4,988) ¥ (220,271)
Total ¥ — ¥ (215,283) ¥ (4,988) ¥ (220,271)
U.S. dollars in millions
March 31, 2011
Level 1 Level 2 Level 3 Total
Assets
Cash equivalents $ 8,774 $ 701 $ — $ 9,475
Time deposits — 1,443 — 1,443
Marketable securities and other securities investments
Government bonds 37,609 — — 37,609
Common stocks 11,548 — — 11,548
Other 455 6,484 — 6,939
Derivative financial instruments — 4,877 142 5,019
Total $58,386 $13,505 $ 142 $72,033
Liabilities
Derivative financial instruments $ — $ (2,589) $ (60) $ (2,649)
Total $ — $ (2,589) $ (60) $ (2,649)
The following is description of the assets and liabilities measured at fair value, information about the
valuation techniques used to measure fair value, key inputs and significant assumption:
Cash equivalents include money market funds
and other investments with original maturities of
three months or less. Time deposits include
negotiable certificate of deposit with original
maturities over three months. These are highly
liquid investments, and quoted market prices are
used to determine the fair value of these
investments.
Marketable securities and other securities invest-
ments include government bonds, common
stocks and other investments. Government bonds
include 76% of Japanese government bonds,
and 24% of U.S. and European government
bonds as of March 31, 2010, and 77% of Japanese
government bonds, and 23% of U.S. and
European government bonds as of March 31,
2011. Listed stocks on the Japanese stock
markets represent 88% and 86% of common
stocks as of March 31, 2010 and 2011, respec-
tively. Toyota uses quoted market prices for
identical assets to measure fair value of these
securities. “Other” includes primarily commercial
paper. Generally, Toyota uses quoted market
prices for similar assets or quoted non-active
market prices for identical assets to measure fair
value of these securities. As of March 31, 2010,
marketable securities and other securities invest-
ments classified as Level 3 primarily included
retained interests in securitized financial receiv-
ables, which are measured at fair value using
assumptions such as interest rate, loss severity
and other factors.
See note 20 to the consolidated financial
statements about derivative financial instruments.
Toyota estimates the fair value of derivative
financial instruments using industry-standard
valuation models that require observable inputs
including interest rates and foreign exchange
rates, and the contractual terms. The usage of
these models does not require significant
judgment to be applied. In other certain cases
when market data is not available, key inputs to
the fair value measurement include quotes from
counterparties, and other market data. Toyota
assesses the reasonableness of changes of the
quotes using observable market data. Toyota’s
derivative fair value measurements consider
assumptions about counterparty and our own
non-performance risk, using such as credit
default probabilities.
Cash equivalents and time deposits Derivative financial instruments
Marketable securities and other securities
investments
108TOYOTA ANNUAL REPORT 2011