Financial liabilities

12 Months Ended

Mar. 31, 2025

17. Financial liabilities

(1) Financial liabilities

Financial liabilities consist of the following:


	Yen in millions
							Non-cash changes
	As of April 1, 2023			Cash flow			Acquisitions		Reclassification			Changes in foreign currency exchange rates			Changes in fair value			Other			As of March 31, 2024

Current liabilities
Short-term debt		4,590,173			401,740			—		—			519,138			—			(23,093	)		5,487,959
Current portion of long-term debt		7,648,596			(8,673,349	)		—		9,974,103			896,377			—			(858	)		9,844,870
Current portion of long-term lease liabilities		66,870			(78,981	)		—		77,698			3,295			—			4,573			73,456

Current liabilities		12,305,639			(8,350,589	)		—		10,051,801			1,418,811			—			(19,378	)		15,406,284

Non-current liabilities
Long-term debt		16,685,384			12,057,349			—		(9,974,103	)		1,933,312			—			64,442			20,766,384
Long-term lease liabilities		389,250			—			101,534		(77,698	)		20,766			—			(44,740	)		389,112

Non-current liabilities		17,074,634			12,057,349			101,534		(10,051,801	)		1,954,078			—			19,702			21,155,496

Total		29,380,273			3,706,760			101,534		—			3,372,889			—			324			36,561,780

Derivatives		(62,359	)		95,572			—		—			(4,792	)		(68,999	)		—			(40,578	)


	Yen in millions
							Non-cash changes
	As of April 1, 2024			Cash flow			Acquisitions		Reclassification			Changes in foreign currency exchange rates			Changes in fair value		Other			As of March 31, 2025

Current liabilities
Short-term debt		5,487,959			75,675			—		—			(99,165	)		—		0			5,464,469
Current portion of long-term debt		9,844,870			(10,786,012	)		—		11,336,112			(141,748	)		—		19,679			10,272,900
Current portion of long-term lease liabilities		73,456			(86,249	)		—		104,271			(599	)		—		1,268			92,147

Current liabilities . . .		15,406,284			(10,796,586	)		—		11,440,383			(241,512	)		—		20,947			15,829,516

Non-current liabilities
Long-term debt		20,766,384			13,381,581			—		(11,336,112	)		(290,753	)		—		1,059			22,522,158
Long-term lease liabilities		389,112			—			164,348		(104,271	)		(3,280	)		—		(4,705	)		441,204

Non-current liabilities		21,155,496			13,381,581			164,348		(11,440,383	)		(294,033	)		—		(3,646	)		22,963,363

Total . . . . . . . . . . . .		36,561,780			2,584,995			164,348		—			(535,545	)		—		17,301			38,792,879

Derivatives		(40,578	)		(5,189	)		—		—			(478	)		84,074		—			37,829

Short-term and long-term debt is classified as financial liabilities measured at amortized cost.

(2) Short-term debt

The breakdown of “Short-term debt” is as follows:


	Yen in millions
	March 31,
	2024		2025

Short-term debt
(Principally from bank)
[Weighted average interest rate
2024 2.27%
2025 2.26%]		1,387,832		1,552,166
Commercial paper
[Weighted average interest rate
2024 4.53%
2025 3.82%]		4,100,127		3,912,303

		5,487,959		5,464,469

(3) Long-term debt

The breakdown of “Long-term debt” is as follows:


	Yen in millions
	March 31,
	2024			2025

Unsecured loans
(Principally from bank)
[2024
Weighted average interest 3.68%
Due 2024 to 2042
2025
Weighted average interest 3.56%
Due 2025 to 2042]		6,781,268			7,360,937
Secured loans
(Principally financial receivables securitization)
[2024
Weighted average interest 4.64%
Due 2024 to 2034
2025
Weighted average interest 4.23%
Due 2025 to 2034]		6,458,570			7,556,089
Unsecured bonds of the parent
[2024
Weighted average interest 1.92%
Due 2024 to 2037
2025
Weighted average interest 1.93%
Due 2026 to 2037]		1,221,345			1,108,080
Unsecured bonds and medium-term notes of consolidated subsidiaries
[2024
Weighted average interest 3.49%
Due 2024 to 2048
2025
Weighted average interest 3.61%
Due 2025 to 2048]		16,084,233			16,683,919
Secured bonds of consolidated subsidiaries
[2024
Weighted average interest 7.86%
Due 2024 to 2029
2025
Weighted average interest 8.12%
Due 2025 to 2029]		65,837			86,033

		30,611,253			32,795,058
Less - Current portion due within one year		(9,844,870	)		(10,272,900	)

		20,766,384			22,522,158

As of March 31, 2024 and 2025, the currencies of long-term debt are 53% and 50% in US dollars, 10% and 12% in Japanese yen, 13% and 14% in Euros, 5% and 5% in Australian dollars, 4% and 4% in Canadian dollars, 15% and 15% in other currencies.

(4) Assets pledges as collateral

The breakdown of assets pledged as collateral mainly for loans of consolidated subsidiaries is as follows:


	Yen in millions
	March 31,
	2024		2025

Property, plant and equipment		1,574,373		1,616,300
Other assets		6,731,856		7,936,375

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		8,306,230		9,552,674

Other assets principally consist of securitized finance receivables.

Standard agreements with certain banks include provisions that collateral (including sums on deposit with such banks) or guarantees will be furnished upon the banks’ request and that any collateral furnished, pursuant to such agreements or otherwise, will be applicable to all present or future indebtedness to such banks.

(5) Interest expenses

The interest expenses for the fiscal year ended March 31, 2024 and 2025 are ¥1,213,021 million and ¥1,654,702 million, respectively. Interest expenses related to the financial business is included in “cost of financial services” in the consolidated statement of income.