Toyota 2015 Annual Report Download - page 201

TOYOTA MOTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Personal injury and wrongful death claims involving allegations of unintended acceleration are pending in
several consolidated proceedings in federal and state courts, as well as in individual cases in various other states.
The judges in the consolidated federal action and the consolidated California state action have approved an
Intensive Settlement Process (“ISP”) for such claims in those actions. Under the ISP, all individual claims within
the consolidated actions are stayed pending completion of a process to assess whether they can be resolved on
terms acceptable to the parties. Cases not resolved after completion of the ISP will then proceed to discovery and
toward trial. Toyota has offered the ISP process to plaintiffs in other consolidated actions and in individual cases,
as well.
Toyota has been named as a defendant in 33 economic loss class action lawsuits, which, together with
similar lawsuits against Takata and other automakers, have been made part of a multi-district litigation
proceeding in the United States District Court for the Southern District of Florida, arising out of allegations that
airbag inflators manufactured by Takata are defective. These lawsuits are at an early stage.
Toyota has received a request for information from the SDNY related to statements concerning one or more
reported injuries sustained in Toyota vehicles following deployments of Takata airbags. Toyota is cooperating
with the request.
Toyota self-reported a process gap in fulfilling certain emissions defect information reporting requirements
with the U.S. Environmental Protection Agency (“EPA”) and California Air Resources Board, including updates
on its repair completion rates for recalled emissions components and certain other reports concerning emissions
related defects. Toyota is involved in discussions with these agencies. The SDNY and EPA have requested
certain follow-up information regarding this reporting issue, and Toyota is cooperating with the request.
Toyota also has various other pending legal actions and claims, including without limitation personal injury
and wrongful death lawsuits and claims in the United States, and is subject to government investigations
from-time-to-time.
Beyond the amounts accrued with respect to all aforementioned matters, Toyota is unable to estimate a
range of reasonably possible loss, if any, for the pending legal matters because (i) many of the proceedings are in
evidence gathering stages, (ii) significant factual issues need to be resolved, (iii) the legal theory or nature of the
claims is unclear, (iv) the outcome of future motions or appeals is unknown and/or (v) the outcomes of other
matters of these types vary widely and do not appear sufficiently similar to offer meaningful guidance. Based
upon information currently available to Toyota, however, Toyota believes that its losses from these matters, if
any, beyond the amounts accrued, would not have a material adverse effect on Toyota’s financial position, results
of operations or cash flows.
The parent company has a concentration of labor supply in employees working under collective bargaining
agreements and a substantial portion of these employees are working under the agreement that will expire on
December 31, 2017.
25. Segment data:
The operating segments reported below are the segments of Toyota for which separate financial information
is available and for which operating income/loss amounts are evaluated regularly by executive management in
deciding how to allocate resources and in assessing performance.
The major portions of Toyota’s operations on a worldwide basis are derived from the Automotive and
Financial Services business segments. The Automotive segment designs, manufactures and distributes sedans,
minivans, compact cars, sport-utility vehicles, trucks and related parts and accessories. The Financial Services
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