Toyota 2015 Annual Report Download - page 200

TOYOTA MOTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The minimum rental payments required under operating leases relating primarily to land, buildings and
equipment having initial or remaining non-cancelable lease terms in excess of one year at March 31, 2016 are as
follows:
Years ending March 31, Yen in millions
2017 ...................................................................... 13,747
2018 ...................................................................... 11,565
2019 ...................................................................... 8,253
2020 ...................................................................... 6,179
2021 ...................................................................... 4,897
Thereafter .................................................................. 24,766
Total minimum future rentals ............................................... 69,407
24. Other commitments and contingencies, concentrations and factors that may affect future operations:
Commitments -
Commitments outstanding as of March 31, 2016 for the purchase of property, plant and equipment, other
assets and services totaled ¥331,054 million.
Guarantees -
Toyota enters into contracts with Toyota dealers to guarantee customers’ payments of their installment
payables that arise from installment contracts between customers and Toyota dealers, as and when requested by
Toyota dealers. Guarantee periods are set to match maturity of installment payments, and as of March 31, 2016,
range from 1 month to 35 years; however, they are generally shorter than the useful lives of products sold.
Toyota is required to execute its guarantee primarily when customers are unable to make required payments.
The maximum potential amount of future payments as of March 31, 2016 is ¥2,349,624 million. Liabilities
for guarantees totaling ¥5,515 million have been provided as of March 31, 2016. Under these guarantee
contracts, Toyota is entitled to recover any amount paid by Toyota from the customers whose original obligations
Toyota has guaranteed.
Legal proceedings -
From time-to-time, Toyota issues vehicle recalls and takes other safety measures including safety campaigns
relating to its vehicles. Since 2009, Toyota issued safety campaigns related to the risk of floor mat entrapment of
accelerator pedals and vehicle recalls related to slow-to-return or sticky accelerator pedals. In March 2014,
Toyota entered into a Deferred Prosecution Agreement (“DPA”) to resolve an investigation by the U.S. Attorney
for the Southern District of New York (“SDNY”) related to unintended acceleration in certain of its vehicles. The
DPA provides for an independent monitor to review and assess policies and procedures relating to Toyota’s
safety communications process, its process for sharing vehicle accident information internally and its process for
preparing and sharing certain technical reports.
In 2010, there was a recall related to the software program that controls the antilock braking system in
certain models, including the Prius, which led to putative class action lawsuits on behalf of owners of recalled
vehicles and owners of vehicles which were not recalled. The United States District Court for the Central District
of California denied the plaintiffs’ motions for class certification and granted summary judgment in Toyota’s
favor denying the plaintiffs’ claims related to both the recalled vehicles and the non-recalled vehicles.
Proceedings involving the recalled vehicles have concluded; the appeals of the granting of summary judgment
and the denial of class certification of the claims for the non-recalled vehicles are still pending.
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