Segment data | 25. Segment data: The operating segments reported below are the segments of Toyota for which separate financial information is available and for which operating income/loss amounts are evaluated regularly by executive management in deciding how to allocate resources and in assessing performance. The major portions of Toyota’s operations on a worldwide basis are derived from the Automotive and Financial Services business segments. The Automotive segment designs, manufactures and distributes sedans, minivans, compact cars, sport-utility vehicles, trucks and related parts and accessories. The Financial Services segment consists primarily of financing, and vehicle leasing operations to assist in the merchandising of the parent company and its affiliated companies products as well as other products. The All Other segment includes the design, manufacturing and sales of housing, telecommunications and other businesses. The following tables present certain information regarding Toyota’s industry or geographic segments and overseas revenues by destination as of and for the years ended March 31, 2017, 2018 and 2019. Segment operating results and assets - As of and for the year ended March 31, 2017: Yen in millions Automotive Financial All Other Inter-segment Consolidated Net revenues Sales to external customers 25,032,229 1,783,697 781,267 — 27,597,193 Inter-segment sales and transfers 49,618 39,903 539,785 (629,306 ) — Total 25,081,847 1,823,600 1,321,052 (629,306 ) 27,597,193 Operating expenses 23,388,874 1,601,172 1,239,725 (626,950 ) 25,602,821 Operating income 1,692,973 222,428 81,327 (2,356 ) 1,994,372 Assets 16,156,496 22,507,613 2,170,498 7,915,579 48,750,186 Investment in equity method investees 2,745,437 9,792 — 90,193 2,845,422 Depreciation expenses 912,797 671,155 26,998 — 1,610,950 Capital expenditure 1,293,564 2,182,149 53,710 12,014 3,541,437 As of and for the year ended March 31, 2018: Yen in millions Automotive Financial All Other Inter-segment Consolidated Net revenues Sales to external customers 26,347,229 1,959,234 1,073,047 — 29,379,510 Inter-segment sales and transfers 50,711 57,774 573,071 (681,556 ) — Total 26,397,940 2,017,008 1,646,118 (681,556 ) 29,379,510 Operating expenses 24,386,805 1,731,462 1,545,306 (683,925 ) 26,979,648 Operating income 2,011,135 285,546 100,812 2,369 2,399,862 Assets 17,054,209 23,055,981 2,178,118 8,019,941 50,308,249 Investment in equity method investees 3,054,583 11,713 — 96,415 3,162,711 Depreciation expenses 976,735 723,061 34,237 — 1,734,033 Capital expenditure 1,381,122 2,166,805 62,447 (11,667 ) 3,598,707 As of and for the year ended March 31, 2019: Yen in millions Automotive Financial All Other Inter-segment Consolidated Net revenues Sales to external customers 27,034,492 2,120,343 1,070,846 — 30,225,681 Inter-segment sales and transfers 44,585 33,204 605,531 (683,320 ) — Total 27,079,077 2,153,547 1,676,377 (683,320 ) 30,225,681 Operating expenses 25,040,193 1,830,726 1,570,839 (683,622 ) 27,758,136 Operating income 2,038,884 322,821 105,538 302 2,467,545 Assets 17,799,376 24,044,700 2,125,271 7,967,602 51,936,949 Investment in equity method investees 3,215,856 12,172 — 85,675 3,313,703 Depreciation expenses 997,312 758,847 36,216 — 1,792,375 Capital expenditure 1,520,366 2,165,609 66,075 (13,163 ) 3,738,887 Geographic information - As of and for the year ended March 31, 2017: Yen in millions Japan North Europe Asia Other Inter-segment Consolidated Net revenues Sales to external customers 8,798,903 10,033,419 2,517,601 4,279,617 1,967,653 — 27,597,193 Inter-segment sales and transfers 6,031,965 205,672 163,438 540,204 193,421 (7,134,700 ) — Total 14,830,868 10,239,091 2,681,039 4,819,821 2,161,074 (7,134,700 ) 27,597,193 Operating expenses 13,628,623 9,927,897 2,693,283 4,384,642 2,102,380 (7,134,004 ) 25,602,821 Operating income (loss) 1,202,245 311,194 (12,244 ) 435,179 58,694 (696 ) 1,994,372 Assets 14,791,969 17,365,237 2,846,469 4,486,021 2,819,935 6,440,555 48,750,186 Long-lived assets 3,376,157 5,274,928 313,182 828,619 404,223 — 10,197,109 As of and for the year ended March 31, 2018: Yen in millions Japan North Europe Asia Other Inter-segment Consolidated Net revenues Sales to external customers 9,273,672 10,347,266 2,940,243 4,497,374 2,320,955 — 29,379,510 Inter-segment sales and transfers 6,751,172 227,144 244,981 650,765 132,344 (8,006,406 ) — Total 16,024,844 10,574,410 3,185,224 5,148,139 2,453,299 (8,006,406 ) 29,379,510 Operating expenses 14,364,926 10,435,511 3,110,198 4,714,940 2,340,636 (7,986,563 ) 26,979,648 Operating income 1,659,918 138,899 75,026 433,199 112,663 (19,843 ) 2,399,862 Assets 15,797,024 16,936,704 3,346,179 4,893,582 2,986,661 6,348,099 50,308,249 Long-lived assets 3,511,663 5,179,139 359,355 797,435 420,081 — 10,267,673 As of and for the year ended March 31, 2019: Yen in millions Inter-segment Net revenues Sales to external customers 9,520,148 10,585,934 3,055,654 4,832,392 2,231,553 — 30,225,681 Inter-segment sales and transfers 7,105,213 231,313 183,197 680,639 101,890 (8,302,252 ) — Total 16,625,361 10,817,247 3,238,851 5,513,031 2,333,443 (8,302,252 ) 30,225,681 Operating expenses 14,933,686 10,702,732 3,113,983 5,055,542 2,242,333 (8,290,140 ) 27,758,136 Operating income 1,691,675 114,515 124,868 457,489 91,110 (12,112 ) 2,467,545 Assets 16,465,702 17,452,216 3,872,301 5,176,990 3,067,270 5,902,470 51,936,949 Long-lived assets 3,607,843 5,469,262 453,921 729,494 424,974 — 10,685,494 “Other” consists of Central and South America, Oceania, Africa and the Middle East. Revenues are attributed to geographies based on the country location of the parent company or the subsidiary that transacted the sale with the external customer. There are no any individually material countries with respect to revenues, and long-lived assets included in other foreign countries. Unallocated amounts included in assets represent assets held for corporate purposes, which mainly consist of cash and cash equivalents and marketable securities and other securities investments. Such corporate assets were ¥9,177,953 million, ¥9,386,399 million and ¥9,329,020 million, as of March 31, 2017, 2018 and 2019, respectively. Transfers between industry or geographic segments are made at terms and conditions in the ordinary course of business. In measuring the reportable segments’ income or losses, operating income consists of revenue less operating expenses. Overseas revenues by destination - The following information shows revenues that are attributed to countries based on location of customers, excluding customers in Japan. In addition to the disclosure requirements under U.S.GAAP, Toyota discloses this information in order to provide financial statements users with valuable information. Yen in millions For the years ended March 31, 2017 2018 2019 North America 10,054,431 10,403,647 10,675,298 Europe 2,341,364 2,730,915 2,873,737 Asia 4,414,236 4,793,110 5,355,991 Other 3,923,621 4,186,666 3,944,854 “Other” consists of Central and South America, Oceania, Africa and the Middle East, etc. Certain financial statements data on non-financial The financial data below presents separately Toyota’s non-financial Balance sheets - Yen in millions March 31, 2018 2019 Assets Non-Financial Current assets Cash and cash equivalents 2,390,524 2,790,212 Marketable securities 1,546,459 1,108,540 Trade accounts and notes receivable, less allowance for doubtful accounts 2,304,676 2,489,105 Inventories 2,539,497 2,656,396 Prepaid expenses and other current assets 1,818,687 2,118,922 Total current assets . 10,599,843 11,163,175 Investments and other assets 11,861,394 11,643,209 Property, plant and equipment 5,901,958 6,178,503 Total Non-Financial 28,363,195 28,984,887 Financial Services Business Current assets Cash and cash equivalents 661,745 784,492 Marketable securities 221,901 18,620 Finance receivables, net 6,348,306 6,647,771 Prepaid expenses and other current assets 957,122 997,116 Total current assets 8,189,074 8,447,999 Noncurrent finance receivables, net 9,481,618 10,281,118 Investments and other assets 1,019,574 808,592 Property, plant and equipment 4,365,715 4,506,991 Total Financial Services Business assets 23,055,981 24,044,700 Eliminations (1,110,927 ) (1,092,638 ) Total assets 50,308,249 51,936,949 Assets in the non-financial Yen in millions March 31, 2018 2019 Liabilities Non-Financial Current liabilities Short-term borrowings 541,968 579,901 Current portion of long-term debt 179,994 173,379 Accounts payable 2,556,393 2,616,143 Accrued expenses 2,980,981 3,075,411 Income taxes payable 429,616 300,703 Other current liabilities 1,797,724 1,755,737 Total current liabilities 8,486,676 8,501,274 Long-term liabilities Long-term debt 642,691 784,256 Accrued pension and severance costs 917,133 948,377 Other long-term liabilities 1,111,843 1,059,237 Total long-term liabilities 2,671,667 2,791,870 Total Non-Financial 11,158,343 11,293,144 Financial Services Business Current liabilities Short-term borrowings 4,929,478 5,113,888 Current portion of long-term debt 4,053,538 4,127,133 Accounts payable 40,251 39,187 Accrued expenses 145,127 161,105 Income taxes payable 32,711 20,295 Other current liabilities 870,634 997,842 Total current liabilities 10,071,739 10,459,450 Long-term liabilities Long-term debt 9,574,118 9,974,516 Accrued pension and severance costs 14,049 15,029 Other long-term liabilities 678,858 722,279 Total long-term liabilities 10,267,025 10,711,824 Total Financial Services Business liabilities 20,338,764 21,171,274 Eliminations (1,110,934 ) (1,092,679 ) Total liabilities 30,386,173 31,371,739 Mezzanine equity 491,974 498,073 Total Toyota Motor Corporation shareholders’ equity 18,735,982 19,348,152 Noncontrolling interests 694,120 718,985 Total shareholders’ equity 19,430,102 20,067,137 Total liabilities, mezzanine equity and shareholders’ equity 50,308,249 51,936,949 Statements of income - Yen in millions For the years ended March 31, 2017 2018 2019 Non-Financial Net revenues 25,845,453 27,448,165 28,133,676 Costs and expenses Cost of revenues 21,557,194 22,613,450 23,400,550 Selling, general and administrative 2,511,647 2,721,362 2,591,249 Total costs and expenses 24,068,841 25,334,812 25,991,799 Operating income 1,776,612 2,113,353 2,141,877 Other income (expense), net 200,370 222,326 (161,608 ) Income before income taxes and equity in earnings of affiliated companies 1,976,982 2,335,679 1,980,269 Provision for income taxes 562,452 738,763 580,031 Equity in earnings of affiliated companies 360,130 467,718 357,527 Net income 1,774,660 2,064,634 1,757,765 Less - Net income attributable to noncontrolling interests (89,337 ) (89,533 ) (97,500 ) Net income attributable to Toyota Motor Corporation Non-Financial 1,685,323 1,975,101 1,660,265 Financial Services Business Net revenues 1,823,600 2,017,008 2,153,547 Costs and expenses Cost of revenues 1,221,268 1,320,348 1,418,636 Selling, general and administrative 379,904 411,114 412,090 Total costs and expenses 1,601,172 1,731,462 1,830,726 Operating income 222,428 285,546 322,821 Other income (expense), net (5,618 ) (794 ) (17,658 ) Income before income taxes and equity in earnings of affiliated companies 216,810 284,752 305,163 Provision for income taxes 66,583 (234,356 ) 79,903 Equity in earnings of affiliated companies 1,930 2,365 2,539 Net income 152,157 521,473 227,799 Less - Net income attributable to noncontrolling interests (6,518 ) (2,589 ) (5,214 ) Net income attributable to Toyota Motor Corporation 145,639 518,884 222,585 Eliminations 147 (2 ) 23 Net income attributable to Toyota Motor Corporation 1,831,109 2,493,983 1,882,873 Statements of cash flows - Yen in millions Yen in millions For the year ended March 31, 2017 For the year ended March 31, 2018 Non-Financial Financial Consolidated Non-Financial Financial Consolidated Cash flows from operating activities Net income 1,774,660 152,157 1,926,985 2,064,634 521,473 2,586,106 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 939,795 671,155 1,610,950 1,010,972 723,061 1,734,033 Provision (reversal) for doubtful accounts and credit losses 6,519 92,147 98,666 (74 ) 76,143 76,069 Pension and severance costs, less payments 21,796 1,457 23,253 5,027 (741 ) 4,286 Losses on disposal of fixed assets 30,461 212 30,673 35,010 279 35,289 Unrealized losses (gains) on marketable securities 4,422 2,651 7,073 459 387 846 Deferred income taxes (59,668 ) 6,504 (53,299 ) 64,143 (302,103 ) (237,961 ) Equity in earnings of affiliated companies (360,130 ) (1,930 ) (362,060 ) (467,718 ) (2,365 ) (470,083 ) Changes in operating assets and liabilities, and other 206,455 258,091 286,247 205,434 312,828 494,543 Net cash provided by operating activities 2,564,310 1,182,444 3,568,488 2,917,887 1,328,962 4,223,128 Cash flows from investing activities Additions to finance receivables — (22,894,114 ) (13,636,694 ) — (25,153,088 ) (15,058,516 ) Collection of and proceeds from sales of finance receivables — 22,006,010 12,927,981 — 24,117,335 14,046,312 Additions to fixed assets excluding equipment leased to others (1,206,738 ) (17,140 ) (1,223,878 ) (1,276,788 ) (14,329 ) (1,291,117 ) Additions to equipment leased to others (152,550 ) (2,165,009 ) (2,317,559 ) (155,114 ) (2,152,476 ) (2,307,590 ) Proceeds from sales of fixed assets excluding equipment leased to others 40,189 1,049 41,238 70,755 1,065 71,820 Proceeds from sales of equipment leased to others 72,659 1,165,619 1,238,278 63,402 1,147,870 1,211,272 Purchases of marketable securities and security investments (2,104,202 ) (412,806 ) (2,517,008 ) (2,273,805 ) (779,111 ) (3,052,916 ) Proceeds from sales of and maturity of marketable securities and security investments 1,435,267 466,274 1,901,541 1,762,189 761,349 2,523,538 Payment for additional investments in affiliated companies, net of cash acquired 44,274 — 44,274 (576 ) — (576 ) Changes in investments and other assets, and other 582,649 (60,345 ) 571,888 260,015 (106,597 ) 197,681 Net cash used in investing activities (1,288,452 ) (1,910,462 ) (2,969,939 ) (1,549,922 ) (2,177,982 ) (3,660,092 ) Cash flows from financing activities Proceeds from issuance of long-term debt 111,727 4,541,541 4,603,446 212,387 4,666,579 4,793,939 Payments of long-term debt (82,840 ) (3,773,644 ) (3,845,554 ) (170,072 ) (4,314,294 ) (4,452,338 ) Increase (decrease) in short-term borrowings 51,523 233,331 273,037 (122,222 ) 461,052 347,738 Dividends paid to Toyota Motor Corporation class shareholders (3,697 ) — (3,697 ) (6,194 ) — (6,194 ) Dividends paid to Toyota Motor Corporation common shareholders (634,475 ) — (634,475 ) (620,698 ) — (620,698 ) Dividends paid to noncontrolling interests (63,936 ) — (63,936 ) (63,764 ) — (63,764 ) Reissuance (repurchase) of treasury stock (703,986 ) — (703,986 ) (447,818 ) — (447,818 ) Net cash provided by (used in) financing activities (1,325,684 ) 1,001,228 (375,165 ) (1,218,381 ) 813,337 (449,135 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents (11,262 ) (2,224 ) (13,486 ) (16,124 ) (27,464 ) (43,588 ) Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents (61,088 ) 270,986 209,898 133,460 (63,147 ) 70,313 Cash and cash equivalents and restricted cash and cash equivalents at beginning of year 2,318,152 621,276 2,939,428 2,257,064 892,262 3,149,326 Cash and cash equivalents and restricted cash and cash equivalents at end of year 2,257,064 892,262 3,149,326 2,390,524 829,115 3,219,639 Yen in millions For the year ended March 31, 2019 Non-Financial Financial Consolidated Cash flows from operating activities Net income 1,757,765 227,799 1,985,587 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 1,033,528 758,847 1,792,375 Provision (reversal) for doubtful accounts and credit losses (1,375 ) 81,440 80,065 Pension and severance costs, less payments 30,477 1,168 31,645 Losses on disposal of fixed assets 33,676 2,226 35,902 Unrealized losses (gains) on marketable securities 338,626 846 339,472 Deferred income taxes (110,346 ) 23,742 (86,594 ) Equity in earnings of affiliated companies (357,527 ) (2,539 ) (360,066 ) Changes in operating assets and liabilities, and other (17,488 ) 15,557 (51,789 ) Net cash provided by operating activities 2,707,336 1,109,086 3,766,597 Cash flows from investing activities Additions to finance receivables — (26,000,249 ) (15,884,610 ) Collection of and proceeds from sales of finance receivables — 24,925,930 14,859,103 Additions to fixed assets excluding equipment leased to others (1,435,964 ) (16,761 ) (1,452,725 ) Additions to equipment leased to others (137,314 ) (2,148,848 ) (2,286,162 ) Proceeds from sales of fixed assets excluding equipment leased to others 63,955 1,482 65,437 Proceeds from sales of equipment leased to others 60,657 1,324,417 1,385,074 Purchases of marketable securities and security investments (1,737,107 ) (103,248 ) (1,840,355 ) Proceeds from sales of and maturity of marketable securities and security investments 2,255,635 443,163 2,698,798 Payment for additional investments in affiliated companies, net of cash acquired 5,010 — 5,010 Changes in investments and other assets, and other (268,946 ) (4,130 ) (246,811 ) Net cash used in investing activities (1,194,074 ) (1,578,244 ) (2,697,241 ) Cash flows from financing activities Proceeds from issuance of long-term debt 286,085 4,747,506 5,000,921 Payments of long-term debt (142,556 ) (4,336,250 ) (4,442,232 ) Increase (decrease) in short-term borrowings 49,161 144,277 164,282 Dividends paid to Toyota Motor Corporation class shareholders (8,690 ) — (8,690 ) Dividends paid to Toyota Motor Corporation common shareholders (636,116 ) — (636,116 ) Dividends paid to noncontrolling interests (69,367 ) — (69,367 ) Reissuance (repurchase) of treasury stock (549,637 ) — (549,637 ) Net cash provided by (used in) financing activities (1,071,120 ) 555,533 (540,839 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents (42,454 ) 813 (41,641 ) Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents 399,688 87,188 486,876 Cash and cash equivalents and restricted cash and cash equivalents at beginning of year 2,390,524 829,115 3,219,639 Cash and cash equivalents and restricted cash and cash equivalents at end of year 2,790,212 916,303 3,706,515 |