Derivative financial instruments

12 Months Ended

Mar. 31, 2025

Disclosure of detailed information about hedges [abstract]

20. Derivative financial instruments

(1) Undesignated derivative financial instruments

Toyota uses derivative financial instruments including foreign exchange forward contracts, foreign currency options, interest rate swaps, interest rate currency swap agreements, and interest rate options, to manage mainly its exposures to foreign currency exchange rate fluctuations and interest rate fluctuations from an economic perspective, and Toyota is unable to or has elected not to apply hedge accounting. Toyota does not use derivatives for speculation or trading.

(2) Fair value and gain and losses of derivatives

The fair values of the derivatives as of March 31, 2024 and 2025 are as follows:


	Yen in millions
	March 31,
	2024		2025
Derivative assets
Derivative financial instruments not designated as hedging instruments:
Interest rate and currency swap
Current assets
- Other financial assets		180,657		118,941
Non-current assets
- Other financial assets		355,245		276,647

Total		535,901		395,588

Foreign exchange forward, option and other contracts
Current assets
- Other financial assets		17,006		62,945
Non-current assets
- Other financial assets		14		24,845

Total		17,019		87,790



Total derivative assets		552,921		483,378


	Yen in millions
	March 31,
	2024			2025
Derivative financial liabilities
Derivative financial instruments not designated as hedging instruments:
Interest rate and currency swap
Current liabilities
- Other financial liabilities		(91,120	)		(60,584	)
Non-current liabilities
- Other financial liabilities		(286,396	)		(243,087	)

Total		(377,516	)		(303,670	)

Foreign exchange forward, option and other contracts
Current liabilities
- Other financial liabilities		(54,086	)		(14,711	)
Non-current liabilities
- Other financial liabilities		(588	)		(1,500	)

Total		(54,673	)		(16,211	)



Total derivative liabilities		(432,189	)		(319,881	)

The amount of underlying notional of derivatives as of March 31, 2024 and 2025 are as follows:


	Yen in millions
	March 31,
	2024		2025
Derivative financial instruments not designated as hedging instruments:
Interest rate and currency swap		31,825,306		32,257,298
Foreign exchange forward, option and other contracts		4,217,529		5,492,347

Total		36,042,835		37,749,645

Undesignated derivative financial instruments are used to manage mainly economic risks of fluctuations in foreign currency exchange rates and interest rates of certain receivables and payables. Those economic risks are offset by changes in the fair value of undesignated derivative financial instruments.

The gain (loss) on derivative transactions as of March 31, 2023, 2024 and 2025 were ¥(129,782) million, ¥(267,190) million and ¥(80,831) million, respectively. The amounts are included in cost of financial services and foreign exchange gain (loss), net.

Cash flows from transactions of derivative financial instruments are included in cash flows from operating activities in the consolidated statement of cash flows.

(3) Credit risk related contingent features

Toyota enters into International Swaps and Derivatives Association Master Agreements with counterparties. These Master Agreements contain a provision requiring either Toyota or the counterparty to settle the contract or to post assets to the other party in the event of a ratings downgrade below a specified threshold.

The aggregate fair value amount of derivative financial instruments that contain credit risk related contingent features that are in a net liability position after being offset by cash collateral as of March 31, 2024 and 2025 is ¥13,166 million and ¥20,213 million, respectively. The aggregate fair value amount of assets that are already posted as cash collateral as of March 31, 2024 and 2025 is ¥98,840 million and ¥87,644 million, respectively. If the ratings of Toyota decline below specified thresholds, the maximum amount of assets to be posted or for which Toyota could be required to settle the contracts is ¥20,213 million as of March 31, 2025. See Note 22 for details.