Employee Benefits (Tables)

12 Months Ended

Mar. 31, 2026

Changes in Present Value of Defined Benefit Obligations and Fair Value of Plan Assets

The changes in present value of defined benefit obligations and fair value of plan assets of the Company and certain of its consolidated subsidiaries for the years ended March 31, 2025 and 2026 are as follows:


	Yen (millions)
	2025						2026
	Japanese plans			Foreign plans			Japanese plans			Foreign plans
Present value of defined benefit obligations:
Balance at beginning of year	¥	1,081,392		¥	1,037,123		¥	980,252		¥	1,006,596

Current service cost		24,203			19,077			21,419			19,615
Interest cost		16,392			50,717			21,486			50,632
Plan participants’ contributions		—			4,022			—			3,841
Remeasurements:
Changes in demographic assumptions		980			1,982			(3,235	)		3,344
Changes in financial assumptions		(83,744	)		(28,838	)		(79,242	)		(19,047	)
Other		3,325			8,516			(2,132	)		14,447
Benefits paid		(62,296	)		(63,038	)		(58,011	)		(72,880	)
Exchange differences on translating foreign operations		—			(22,965	)		—			79,598

Balance at end of year	¥	980,252		¥	1,006,596		¥	880,537		¥	1,086,146

Fair value of plan assets:
Balance at beginning of year	¥	1,247,059		¥	993,401		¥	1,199,267		¥	958,328

Interest income		19,164			52,338			26,657			48,176
Actual return on plan assets, excluding interest income		(27,278	)		(19,496	)		63,950			7,757
Employer contributions		19,349			15,683			16,896			21,944
Plan participants’ contributions		—			4,022			—			3,841
Benefits paid		(59,027	)		(63,038	)		(55,091	)		(72,880	)
Exchange differences on translating foreign operations		—			(24,582	)		—			79,116

Balance at end of year	¥	1,199,267		¥	958,328		¥	1,251,679		¥	1,046,282

Effects of asset ceiling		195,916			37,807			345,141			70,054

Net defined benefit liabilities (assets)	¥	(23,099	)	¥	86,075		¥	(26,001	)	¥	109,918

Fair Value of Japanese and Foreign Pension Plan Assets By Asset Category

The fair value of the Japanese and foreign pension plan assets by asset category as of March 31, 2025 and 2026 is as follows:

As of March 31, 2025


	Yen (millions)
	Japanese plans								Foreign plans
	Market price in active market								Market price in active market
	Quoted		Unquoted			Total			Quoted		Unquoted		Total
Cash and cash equivalents	¥	22,760	¥	—		¥	22,760		¥	8,124	¥	—	¥	8,124
Equity securities:
Japan		22,005		—			22,005			546		—		546
United States		200,605		—			200,605			10,687		—		10,687
Other		145,261		70			145,331			4,685		2,048		6,733
Debt securities:
Japan		47,992		1,262			49,254			—		1,055		1,055
United States		145,869		23,544			169,413			—		163,424		163,424
Other		135,936		115,050			250,986			—		14,544		14,544
Group annuity insurance:
General accounts		—		39,871			39,871			—		—		—
Separate accounts		—		29,531			29,531			—		—		—
Pooled funds:
Real estate funds		—		209			209			—		70,336		70,336
Private equity funds		—		—			—			—		154,824		154,824
Hedge funds		—		120,414			120,414			—		26,400		26,400
Commingled and other mutual funds		1,038		158,217			159,255			—		459,546		459,546
Other		2		(10,369	)		(10,367	)		382		41,727		42,109

Total	¥	721,468	¥	477,799		¥	1,199,267		¥	24,424	¥	933,904	¥	958,328

As of March 31,

2026


	Yen (millions)
	Japanese plans									Foreign plans
	Market price in active market									Market price in active market
	Quoted			Unquoted			Total			Quoted		Unquoted		Total
Cash and cash equivalents	¥	13,585		¥	—		¥	13,585		¥	13,491	¥	—	¥	13,491
Equity securities:
Japan		21,501			—			21,501			683		—		683
United States		207,710			—			207,710			12,903		—		12,903
Other		177,745			46			177,791			7,474		2,281		9,755
Debt securities:
Japan		42,351			1,862			44,213			—		1,508		1,508
United States		132,985			33,228			166,213			—		216,100		216,100
Other		110,580			152,253			262,833			—		15,405		15,405
Group annuity insurance:
General accounts		—			39,574			39,574			—		—		—
Separate accounts		—			34,851			34,851			—		—		—
Pooled funds:
Real estate funds		—			713			713			—		87,445		87,445
Private equity funds		—			—			—			—		144,927		144,927
Hedge funds		—			135,314			135,314			—		1,586		1,586
Commingled and other mutual funds		1,524			152,818			154,342			—		348,676		348,676
Insurance Contracts		—			—			—			—		127,441		127,441
Other		(140	)		(6,821	)		(6,961	)		381		65,981		66,362

Total	¥	707,841		¥	543,838		¥	1,251,679		¥	34,932	¥	1,011,350	¥	1,046,282

Significant Actuarial Assumptions Used to Determine Present Value of Defined Benefit Obligations

The significant actuarial assumptions used to determine the present value of defined benefit obligations as of March 31, 2025 and 2026 are as follows:


	2025						2026
	Japanese plans			Foreign plans			Japanese plans			Foreign plans
Discount rate		2.3	%		4.6 - 5.9	%		3.1	%		4.8 - 6.2	%
Rate of salary increase		1.6	%		2.0 - 4.9	%		1.6	%		2.0 - 3.5	%

Effects on Defined Benefit Obligations Due to Increase or Decrease in Discount Rate

The effects on defined benefit obligations of 0.5% increase or decrease in the discount rate as of March 31, 2025 and 2026 are as follows:


	Yen (millions)
	2025				2026
	Japanese plans		Foreign plans		Japanese plans		Foreign plans
0.5% decrease	¥	58,739 increase	¥	62,310 increase	¥	47,737 increase	¥	62,969 increase
0.5% increase	¥	53,176 decrease	¥	55,111 decrease	¥	43,353 decrease	¥	57,522 decrease

Weighted Average Duration of Defined Benefit Obligations

The weighted average duration of defined benefit obligations as of March 31, 2025 and 2026 are as follows:

2025

2026

Japanese plans

Foreign plans

Japanese plans

Foreign plans

Weighted average duration of defined benefit obligations

11 years

10 years

Personnel Expenses Included in Consolidated Statements of Income

Personnel expenses included in the consolidated statements of income for the years ended March 31, 2024, 2025 and 2026 are as follows:


	Yen (millions)
	2024		2025		2026
Personnel expenses	¥	1,807,731	¥	1,934,596	¥	2,021,349