v3.26.1
Employee Benefits
 12 Months Ended
Mar. 31, 2026
Employee Benefits [Abstract]  
Employee Benefits Employee Benefits
Defined Benefit Plans
The Company and some of its subsidiaries have various defined benefit plans such as lump-sum retirement payments plans and defined benefit pension plans, which define the amount of benefits that an employee will receive on or after retirement, usually based on one or more factors, such as age, years of employment, compensation, classes, and service.
The Company’s defined benefit plans are the most significant plans among Takeda’s defined benefit obligations and plan assets.
Defined benefit pension plans
Japan
The Company’s corporate defined benefit pension plan in Japan is a funded defined benefit pension plan, which is regulated by the Defined-Benefit Corporate Pension Act, one of the Japanese pension laws. Benefits are paid in exchange for services rendered by employees who worked for more than a specified period, typically three years, considering their years of service and the degree of their contribution to the Company.
The Company’s pension fund (the “Fund”) is an independent entity established in accordance with the Japanese pension laws, and Takeda has an obligation to make contributions. The Director(s) of the Fund has the fiduciary duty to comply with laws; the directives by the Minister of Health, Labour and Welfare, and the Director-Generals of Regional Bureaus of Health and Welfare made pursuant to those laws; and the by-laws of the Fund and the decisions made by the Board of Representatives of the Fund. Contributions are also regularly reviewed and adjusted as necessary to the extent permitted by laws and regulations.
Foreign
Other types of defined benefit pension plans operated by Takeda are generally established and operated in the same manner as described above and in accordance with local laws and regulations where applicable.
The present value of the defined benefit obligation is calculated annually based on actuarial valuations that are dependent upon a number of assumptions, including discount rates and future salary (benefit) increases. Service costs charged to operating expense related to defined benefit plans represent the increase in the defined benefit liability arising from pension benefits earned by active participants in the current period. Takeda is exposed to investment and other experience risks and may need to make additional contributions where it is estimated that the benefits will not be met from regular contributions, expected investment income, and assets held.
In addition, during the fiscal year ended March 31, 2025, a pension buyout was implemented for a certain retirement pension plan with participants in multiple U.S. subsidiaries. As a result, an insurance company assumed the defined benefit obligation and the plan assets at an amount that includes fees and other charges added to the obligation with the plan assets. The insurance company is henceforth responsible for providing benefit payments to the plan participants. Consequently, the investment risk of the plan assets and the risk of increasing defined benefit obligations due to factors such as the longevity of beneficiaries have been eliminated for pension benefits to active employees, vested deferred members and retired employees under the plan. This pension buyout does not have a significant impact on the consolidated statement of profit or loss.
The amounts recognized in the consolidated statements of profit or loss and the consolidated statements of financial position are as follows:

Consolidated statements of profit or loss
JPY (millions)
For the Year Ended March 31
202420252026
Japan¥2,741 ¥4,182 ¥2,139 
Foreign15,95613,925 17,871 
Defined benefit costs¥18,697 ¥18,106 ¥20,011 
Consolidated statements of financial position
JPY (millions)
As of March 31, 2025
JapanForeignTotal
Present value of defined benefit obligations ¥130,864 ¥253,624 ¥384,488 
Fair value of plan assets221,422125,701347,123
Effect of asset ceiling78,717 — 78,717 
Net defined benefit liabilities (assets)¥(11,840)¥127,922 ¥116,083 
Consolidated statements of financial position
Net defined benefit liabilities¥7,462 ¥127,967 ¥135,429 
Net defined benefit assets*
19,30244 19,346
Net amount of liabilities (assets) recognized in the consolidated statements of financial position¥(11,840)¥127,922 ¥116,083 
JPY (millions)
As of March 31, 2026
JapanForeignTotal
Present value of defined benefit obligations¥116,648 ¥303,505 ¥420,153 
Fair value of plan assets¥224,045 ¥166,940 ¥390,985 
Effect of asset ceiling98,399 8 98,407 
Net defined benefit liabilities (assets)¥(8,998)¥136,573 ¥127,576 
Consolidated statements of financial position
Net defined benefit liabilities¥7,047 ¥136,637 ¥143,683 
Net defined benefit assets16,044 63 16,108 
Net amount of liabilities (assets) recognized in the consolidated statements of financial position¥(8,998)¥136,573 ¥127,576 
*Net defined benefit assets were included in other non-current assets on the consolidated statements of financial position.
Defined benefit obligations
A summary of changes in present value of the defined benefit obligations for the periods presented is as follows:
JPY (millions)
For the Year Ended March 31, 2025
JapanForeignTotal
At beginning of the year¥143,712 ¥301,078 ¥444,790 
Current service cost2,918 12,281 15,199 
Interest cost2,448 9,170 11,618 
Remeasurement of defined benefit pension plans
From changes in demographic assumptions40 37 77 
From changes in financial assumptions(7,622)(3,952)(11,574)
Experience adjustments696 7,006 7,701 
Past service cost1,535 (2,731)(1,196)
Settlement*
— (57,537)(57,537)
Benefits paid(12,701)(17,053)(29,754)
Contributions by the employees— 5,053 5,053 
Effect of business combinations and disposals(161)(95)(256)
Foreign currency translation differences— 366 366 
At end of the year¥130,864 ¥253,624 ¥384,488 
JPY (millions)
For the Year Ended March 31, 2026
JapanForeignTotal
At beginning of the year¥130,864 ¥253,624 ¥384,488 
Current service cost2,370 13,117 15,486 
Interest cost3,209 6,978 10,187 
Remeasurement of defined benefit pension plans
From changes in demographic assumptions7 (3,977)(3,971)
From changes in financial assumptions(9,507)(4,149)(13,655)
Experience adjustments(900)6,488 5,588 
Benefits paid(9,394)(14,412)(23,807)
Contributions by the employees— 5,978 5,978 
Foreign currency translation differences— 39,859 39,859 
At end of the year¥116,648 ¥303,505 ¥420,153 
* The defined benefit obligation for the fiscal year ended March 31, 2025, decreased due to the implementation of a pension buyout for a certain retirement pension plan with participants in multiple U.S. subsidiaries.
The remaining weighted average duration of the defined benefit obligations was 12.1 years and 11.2 years as of March 31, 2025 and 2026, respectively.
Significant actuarial assumptions used to determine the present value are as follows:
Discount rateFuture salary increases
As of March 31, 2025
Japan2.4 %— 
Foreign2.5 %3.0 %
As of March 31, 2026
Japan3.5 %— 
Foreign2.5 %2.8 %
Takeda has cash balance plans and the future salary increases are not used to determine the present value of the defined benefit obligations for those plans. As of March 31, 2025 and 2026, future salary increases were not used to determine the present value of the defined benefit obligations related to all the defined benefit plans in Japan and certain plans in foreign countries.
A 0.5% change in these actuarial assumptions would affect the present value of defined benefit obligations at the end of the reporting period, while holding all other assumptions constant, by the amounts shown below:
JPY (millions)
Discount RateFuture Salary Increases
Change in
assumption		ImpactChange in
assumption		Impact
As of March 31, 2025
Japan+0.50  %(7,178)+0.50  %— 
-0.50  %7,914 -0.50  %— 
Foreign+0.50  %(14,452)+0.50  %4,871 
-0.50  %16,049 -0.50  %(4,397)
As of March 31, 2026
Japan+0.50%(5,919)+0.50%— 
-0.50  %6,540 -0.50  %— 
Foreign+0.50%(15,920)+0.50%5,668 
-0.50  %17,903 -0.50  %(5,092)
Plan assets
The defined benefit plans are independent of Takeda and funded only by contributions from Takeda. Takeda’s investment policies are designed to secure the necessary returns in the long-term within acceptable risk levels to ensure payments of pension benefits to eligible participants, including future participants. The acceptable risk level in the return rate on the plan assets is derived from a detailed study considering the mid- and long-term trends and the changes in income such as contributions and payments. Based on policies and studies, after consideration of issues such as the expected rate of return and risks, Takeda formulates a basic asset mix which aims at an optimal portfolio on a long-term basis with the selection of appropriate investment assets.
A summary of changes in fair value of plan assets for the periods presented is as follows:
JPY (millions)
For the Year Ended March 31
20252026
Balance at beginning of the year¥391,743 ¥347,123 
Interest income on plan assets8,574 7,560 
Remeasurement of defined benefit plans
Return on plan assets
1,164 8,135 
Contributions by the employer18,845 15,417 
Contributions by the employees5,053 5,978 
Settlement*
(60,320)— 
Benefits paid(18,826)(15,914)
Foreign currency translation differences890 22,686 
Balance at end of the year¥347,123 ¥390,985 
* Plan assets for the fiscal year ended March 31, 2025, decreased due to the implementation of a pension buyout for a certain retirement pension plan with participants in multiple U.S. subsidiaries.
Takeda expects to contribute JPY 16,122 million to the defined benefit plans for the year ending March 31, 2027.
The breakdown of fair value by asset class is as follows:
JPY (millions)
As of March 31
20252026
With quoted prices in active marketsNo quoted prices in active marketsWith quoted prices in active marketsNo quoted prices in active markets
Equities:
Japan¥10,531 ¥2,315 ¥8,910 ¥1,857 
Foreign57,690 81,589 75,471 71,794 
Bonds:
Japan387 19,513 450 23,112 
Foreign33,014 33,246 38,696 31,580 
Life insurance company general accounts— 68,741 — 79,709 
Cash and cash equivalent11,070 — 16,727 — 
Property536 18,036 688 27,665 
Other1,104 9,350 4,316 10,010 
Total plan assets¥114,332 ¥232,791 ¥145,259 ¥245,726 
Equities and bonds with no quoted prices in active markets include pooled funds that are primarily invested in listed securities on active markets. Life insurance company general accounts are accounts with guaranteed capital and minimum interest rate, in which life insurance companies manage funds on a pooled basis. Property with no quoted prices in active markets primarily includes real estate investments in Switzerland.
Changes in effect of asset ceiling for the periods presented are as follows:
JPY (millions)
For the Year Ended March 31
20252026
Balance at beginning of the year¥63,422 ¥78,717 
Interest income1,059 1,897 
Remeasurement
Changes in effect of asset ceiling
14,237 17,792 
Balance at end of the year¥78,717 ¥98,407 
Defined Contribution Plans
The Company and some of the Company’s subsidiaries offer defined contribution benefit plans.
Benefits of defined contribution plans are linked to contributions paid, the performance of each participant’s chosen investments, and the form in which participants choose to redeem their benefits. Contributions made into these plans are generally paid into an independently administered fund.
Contributions payable by Takeda for these plans are charged to operating expenses. Takeda has no exposure to investment risks and other experience risks with regard to defined contribution plans.
The amount of defined contribution costs was JPY 60,521 million, JPY 52,692 million, and JPY 52,490 million for the years ended March 31, 2024, 2025, and 2026, respectively. These amounts include contributions to publicly provided plans.
Other Employee Benefit Expenses
Major employee benefit expenses other than retirement benefits for each fiscal year are as follows:
JPY (millions)
For the Year Ended March 31
202420252026
Salary¥688,316 ¥701,775 ¥711,159 
Bonuses161,821 174,576 138,442 
Other274,094 266,491 273,240 
The above table excludes severance and other personnel expenses related to restructuring, as detailed in Note 22.