Financing Liabilities

12 Months Ended

Mar. 31, 2026

(15) Financing Liabilities

Financing liabilities are classified as financial liabilities measured at amortized cost.

Financing liabilities presented in current liabilities as of March 31, 2025 and 2026 consist of the following:


	Yen (millions)
	2025		2026
Current:
Commercial paper	¥	1,114,208	¥	657,136
Loans		475,728		389,253
Medium-term notes		164,457		95,920
Asset-backed securities		75,511		89,255

Subtotal	¥	1,829,904	¥	1,231,564

Reclassification from non-current liabilities (Current portion)	¥	2,667,843	¥	3,773,148

Total	¥	4,497,747	¥	5,004,712

The weighted average interest rates for financing liabilities presented in current liabilities (excluding reclassification from

non-current

liabilities) as of March 31, 2025 and 2026 are as follows:


	2025			2026
Weighted average interest rate		4.15	%		3.38	%

Financing liabilities presented in

non-current

liabilities as of March 31, 2025 and 2026 consist of the following:


	Yen (millions)
	2025			2026
Non-current:
Loans	¥	984,333		¥	1,321,417
Medium-term notes		5,900,016			7,026,249
Corporate bonds		866,042			1,439,571
Asset-backed securities		1,870,972			2,461,062

Subtotal	¥	9,621,363		¥	12,248,299

Reclassification to current liabilities (Current portion)	¥	(2,667,843	)	¥	(3,773,148	)

Total	¥	6,953,520		¥	8,475,151

The interest rate range and payment due date for financing liabilities presented in

non-current

liabilities (including reclassification to current liabilities) as of March 31, 2025 and 2026 are as follows:


	2025	2026
Loans	Interest rate: 0.14% - 13.30% Due: 2025 - 2046	Interest rate: 0.14% - 11.82% Due: 2026 - 2046
Medium-term notes	Interest rate: 0.30% - 5.85% Due: 2025 - 2035	Interest rate: 0.30% - 5.85 % Due: 2026 - 2036
Corporate bonds	Interest rate: 0.09% - 2.97% Due: 2025 - 2032	Interest rate: 0.09% - 5.34% Due: 2026 - 2036
Asset-backed securities	Interest rate: 0.11% - 5.87% Due: 2025 - 2029	Interest rate: 0.36% - 5.67% Due: 2026 - 2030

(Pledged assets)

Pledged assets for financing liabilities as of March 31, 2025 and 2026 are as follows:


	Yen (millions)
	2025		2026
Trade receivables	¥	27,365	¥	28,370
Receivables from financial services		1,980,042		2,631,644
Inventories		1,772		1,017
Equipment on operating leases		92,822		99,137
Property, plant and equipment		2,779		2,773

Total	¥	2,104,780	¥	2,762,941

Receivables from financial services and equipment on operating leases are pledged as collateral for liabilities related to asset-backed securities transactions. Other items are mainly pledged as collateral for secured bank loans.

As is customary in Japan, bank loans are extended under general agreements which provide that security and guarantees for present and future indebtedness will be given upon request of the bank, and that the bank shall have the right to offset cash deposits against obligations that have become due or, in the event of default, against all obligations due to the bank.

(Reconciliation of liabilities arising from financing activities)

The changes in liabilities arising from financing activities for the years ended March 31, 2024, 2025 and 2026 are as follows:

For the year ended March 31, 2024


	Yen (millions)
	Balance as of April 1, 2023		Cash flows from financing activities			Cash flows from operating activities			Non-cash changes										Balance as of March 31, 2024
	Balance as of April 1, 2023		Cash flows from financing activities			Cash flows from operating activities			Acquisitions		Changes in foreign currency exchange rates		Changes in fair value			Other			Balance as of March 31, 2024
Short-term financing liabilities	¥	1,365,775	¥	(24,382	)	¥	—		¥	—	¥	177,888	¥	—		¥	(2,434	)	¥	1,516,847
Long-term financing liabilities		6,299,393		1,593,898			—			—		751,082		—			2,337			8,646,710
Lease liabilities		315,958		(80,513	)		—			92,612		9,509		—			(5,160	)		332,406
Derivative financial liabilities (assets) *		65,276		4,983			(36,665	)		—		11,112		(32,957	)		—			11,749

Total	¥	8,046,402	¥	1,493,986		¥	(36,665	)	¥	92,612	¥	949,591	¥	(32,957	)	¥	(5,257)		¥	10,507,712

For the year ended March 31, 2025


	Yen (millions)
	Balance as of April 1, 2024		Cash flows from financing activities			Cash flows from operating activities			Non-cash changes										Balance as of March 31, 2025
	Balance as of April 1, 2024		Cash flows from financing activities			Cash flows from operating activities			Acquisitions		Changes in foreign currency exchange rates			Changes in fair value		Other			Balance as of March 31, 2025
Short-term financing liabilities	¥	1,516,847	¥	340,693		¥	—		¥	—	¥	(30,130	)	¥	—	¥	2,494		¥	1,829,904
Long-term financing liabilities		8,646,710		1,119,418			—			—		(149,634	)		—		4,869			9,621,363
Lease liabilities		332,406		(78,137	)		—			76,919		(1,427	)		—		(6,838	)		322,923
Derivative financial liabilities (assets) *		11,749		31,488			(35,007	)		—		(621	)		2,532		—			10,141

Total	¥	10,507,712	¥	1,413,462		¥	(35,007	)	¥	76,919	¥	(181,812	)	¥	2,532	¥	525		¥	11,784,331

For the year ended March 31, 2026


	Yen (millions)
	Balance as of April 1, 2025		Cash flows from financing activities			Cash flows from operating activities			Non-cash changes											Balance as of March 31, 2026
	Balance as of April 1, 2025		Cash flows from financing activities			Cash flows from operating activities			Acquisitions		Changes in foreign currency exchange rates			Changes in fair value			Other			Balance as of March 31, 2026
Short-term financing liabilities	¥	1,829,904	¥	(685,405	)	¥	—		¥	—	¥	90,254		¥	—		¥	(3,189	)	¥	1,231,564
Long-term financing liabilities		9,621,363		1,757,609			—			—		860,734			—			8,593			12,248,299
Lease liabilities		322,923		(80,222	)		—			82,789		6,512			—			(5,058	)		326,944
Derivative financial liabilities (assets) *		10,141		3,960			(33,225	)		—		(567	)		(136,758	)		—			(156,449	)

Total	¥	11,784,331	¥	995,942		¥	(33,225	)	¥	82,789	¥	956,933		¥	(136,758	)	¥	346		¥	13,650,358

Explanatory note:

Derivative financial liabilities (assets) are held by the Company and its finance subsidiaries to hedge foreign currency risk for principals and interests payment of long-term financing liabilities. The cash flows related to repayments of principals are included in cash flows from financing activities, while the cash flows related to interest paid are included in cash flows from operating activities.