Financial liabilities

12 Months Ended

Mar. 31, 2026

18. Financial liabilities

(1) Financial liabilities

Financial liabilities consist of the following:


	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


	Yen in millions
						Non-cash changes
	As of April 1, 2025		Cash flow			Acquisitions		Reclassification			Changes in foreign currency exchange rates			Changes in fair value			Other			As of March 31, 2026

Current liabilities
Short-term debt		5,464,469		(90,691	)		—		—			455,722			—			(130,417	)		5,699,083
Current portion of long-term debt		10,272,900		(11,601,270	)		—		12,179,370			850,496			—			17,089			11,718,586
Current portion of long-term lease liabilities		92,147		(355,271	)		—		439,532			2,991			—			(15,964	)		163,435

Current liabilities		15,829,516		(12,047,232	)		—		12,618,903			1,309,209			—			(129,292	)		17,581,104

Non-current liabilities
Long-term debt		22,522,158		12,880,225			—		(12,179,370	)		1,856,234			—			(2,460	)		25,076,787
Long-term lease liabilities		441,204		—			549,798		(439,532	)		17,791			—			(21,683	)		547,578

Non-current liabilities		22,963,363		12,880,225			549,798		(12,618,903	)		1,874,025			—			(24,143	)		25,624,365

Total		38,792,879		832,992			549,798		—			3,183,234			—			(153,435	)		43,205,469
													)
Derivatives		37,829		(40,982	)		—		—			(1,917	)		(24,507	)		—			(29,578	)

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

“Other” for the year ended March 31, 2026 includes amounts reclassified to liabilities directly associated with assets held for sale.

(2) Short-term debt

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


	Yen in millions
	March 31,
	2025		2026

Short-term debt
(Principally from bank)
[Weighted average interest rate
2025 2.26%
2026 2.51%]		1,552,166		1,339,878
Commercial paper
[Weighted average interest rate
2025 3.82%
2026 3.15%]		3,912,303		4,359,205

		5,464,469		5,699,083

(3) Long-term debt

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


	Yen in millions
	March 31,
	2025			2026

Unsecured loans
(Principally from bank)
[2025
Weighted average interest 3.56%
Due 2025 to 2042
2026
Weighted average interest 3.50%
Due 2026 to 2042]		7,360,937			8,854,912
Secured loans
(Principally financial receivables securitization)
[2025
Weighted average interest 4.23%
Due 2025 to 2034
2026
Weighted average interest 3.91%
Due 2026 to 2034]		7,556,089			8,737,773
Unsecured bonds of the parent
[2025
Weighted average interest 1.93%
Due 2026 to 2037
2026
Weighted average interest 2.91%
Due 2026 to 2037]		1,108,080			1,099,460
Unsecured bonds and medium-term notes of consolidated subsidiaries
[2025
Weighted average interest 3.61%
Due 2025 to 2048
2026
Weighted average interest 3.62%
Due 2026 to 2048]		16,683,919			17,989,699
Secured bonds of consolidated subsidiaries
[2025
Weighted average interest 8.12%
Due 2025 to 2029
2026
Weighted average interest 7.86%
Due 2026 to 2029]		86,033			113,529

		32,795,058			36,795,373
Less - Current portion due within one year		(10,272,900	)		(11,718,586	)

		22,522,158			25,076,787

As of March 31, 2025 and 2026, the currencies of long-term debt are 50% and 47% in US dollars, 12% and 12% in Japanese yen, 14% and 14% in Euros, 5% and 5% in Australian dollars, 4% and 4% in Canadian dollars, 15% and 18% in

other currencies, respectively.

(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,
	2025		2026

Property, plant and equipment		1,616,300		1,926,713
Other assets		7,936,375		9,072,756

Total		9,552,674		10,999,469

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

Interest expenses for the years ended March 31, 2025 and 2026 are ¥

1,654,702

million and ¥1,696,845 million, respectively. Interest expenses related to the financial business is included in “cost of financial services” in the consolidated statement of income.