Honda Motor (HMC) 20-F 24 Jun 10 2010 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information
	12 Months Ended Mar. 31, 2010 JPY (¥)	Mar. 31, 2010 JPY (¥)
Document Type	20-F
Amendment Flag	false
Document Period End Date	2010-03-31
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	FY
Trading Symbol	HMC
Entity Registrant Name	HONDA MOTOR CO LTD
Entity Central Index Key	0000715153
Current Fiscal Year End Date	--03-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,814,602,736

Consolidated Balance Sheets

Consolidated Balance Sheets (JPY ¥)
In Millions	12 Months Ended Mar. 31, 2010	12 Months Ended Mar. 31, 2009
Current assets:
Cash and cash equivalents	1119902	690369
Trade accounts and notes receivable, net of allowance for doubtful accounts of 7,455 million yen in 2009 and 8,555 million yen in 2010 (notes 2, 8 and 19)	883,476	854,214
Finance subsidiaries-receivables, net (notes 2, 3, 8 and 19)	1,100,158	1,172,030
Inventories (notes 4 and 8)	935,629	1,243,961
Deferred income taxes (note 10)	176,604	198,158
Other current assets (notes 6, 8 and 16)	397,955	462,446
Total current assets	4,613,724	4,621,178
Finance subsidiaries-receivables, net (notes 2, 3, 8 and 19)	2,361,335	2,400,282
Investments and advances:
Investments in and advances to affiliates (note 5)	457,834	505,835
Other, including marketable equity securities (note 6)	184,847	133,234
Total investments and advances	642,681	639,069
Property on operating leases (note 7):
Vehicles	1,651,672	1,557,060
Less accumulated depreciation	343,525	269,261
Net property on operating leases	1,308,147	1,287,799
Property, plant and equipment, at cost (note 8):
Land	489,769	469,279
Buildings	1,509,821	1,446,090
Machinery and equipment	3,257,455	3,133,439
Construction in progress	143,862	159,567
Property, Plant and Equipment, Gross, Total	5,400,907	5,208,375
Less accumulated depreciation and amortization	3,314,244	3,060,654
Net property, plant and equipment	2,086,663	2,147,721
Other assets (notes 2, 8, 10, 12 and 16)	616,565	722,868
Total assets	11,629,115	11,818,917
Current liabilities:
Short-term debt (notes 3 and 8)	1,066,344	1,706,819
Current portion of long-term debt (notes 3 and 8)	722,296	977,523
Trade payables:
Notes	24,704	31,834
Accounts	802,464	674,498
Accrued expenses (note 12)	542,521	562,673
Income taxes payable (note 10)	23,947	32,614
Other current liabilities (notes 8, 10 and 16)	236,854	251,407
Total current liabilities	3,419,130	4,237,368
Long-term debt, excluding current portion (notes 3 and 8)	2,313,035	1,932,637
Other liabilities (notes 9, 10 and 12)	1,440,520	1,518,568
Total liabilities	7,172,685	7,688,573
Honda Motor Co., Ltd. shareholders' equity:
Common stock, authorized 7,086,000,000 shares; issued 1,834,828,430 shares	86,067	86,067
Capital surplus	172,529	172,529
Legal reserves (note 11)	45,463	43,965
Retained earnings (note 11)	5,304,473	5,099,267
Accumulated other comprehensive income (loss), net (notes 6, 10, 12, 14 and 16)	(1,208,162)	(1,322,828)
Treasury stock, at cost 20,219,430 shares in 2009 and 20,225,694 shares in 2010	(71,730)	(71,712)
Total Honda Motor Co., Ltd. shareholders' equity	4,328,640	4,007,288
Noncontrolling interests (note 1(c))	127,790	123,056
Total equity (note 1(c))	4,456,430	4,130,344
Commitments and contingent liabilities (notes 17 and 18)
Total liabilities and equity	11629115	11818917

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (JPY ¥)
In Millions, except Share data	Mar. 31, 2010	Mar. 31, 2009
Trade accounts and notes receivable, allowance for doubtful accounts	8555	7455
Common stock, authorized	7,086,000,000	7,086,000,000
Common stock, issued	1,834,828,430	1,834,828,430
Treasury stock, shares	20,225,694	20,219,430

Consolidated Statements of Inco

Consolidated Statements of Income (JPY ¥)
In Millions, except Per Share data	12 Months Ended Mar. 31, 2010	12 Months Ended Mar. 31, 2009	12 Months Ended Mar. 31, 2008
Net sales and other operating revenue (note 2)	8579174	10011241	12002834
Operating costs and expenses:
Cost of sales (note 2)	6,414,721	7,419,582	8,543,170
Selling, general and administrative	1,337,324	1,838,819	1,918,596
Research and development	463,354	563,197	587,959
Costs and Expenses, Total	8,215,399	9,821,598	11,049,725
Operating income	363,775	189,643	953,109
Other income (expenses):
Interest income	18,232	41,235	50,144
Interest expense	(12,552)	(22,543)	(16,623)
Other, net (notes 1(p), 6 and 16)	(33,257)	(46,601)	(90,789)
Nonoperating Income (Expense), Total	(27,577)	(27,909)	(57,268)
Income before income taxes and equity in income of affiliates	336,198	161,734	895,841
Income tax expense (note 10):
Current	90,263	68,062	356,095
Deferred	56,606	41,773	31,341
Income Tax Expense (Benefit), Total	146,869	109,835	387,436
Income before equity in income of affiliates	189,329	51,899	508,405
Equity in income of affiliates (note 5)	93,282	99,034	118,942
Net income (note 1(c))	282,611	150,933	627,347
Less: Net income attributable to noncontrolling interests (note 1(c))	14,211	13,928	27,308
Net income attributable to Honda Motor Co., Ltd. (note 1(c))	268400	137005	600039
Basic net income attributable to Honda Motor Co., Ltd. per common share (note 1(o))	1.5	75.5	3.3

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity (JPY ¥)
In Millions	Common stock	Capital surplus	Legal reserves	Retained earnings	Accumulated other comprehensive income (loss), net	Treasury stock	Total Honda Motor Co., Ltd. shareholders' equity	Noncontrolling interests (note 1(c))	Total
Beginning Balance at Mar. 31, 2007	86067	172529	37730	4661104	-427166	-41439	4488825	122907	4611732
Transfer to legal reserves			2,081	(2,081)
Dividends paid to Honda Motor Co., Ltd. shareholders				(152,590)			(152,590)		(152,590)
Dividends paid to noncontrolling interests								(9,663)	(9,663)
Capital transactions and others								2,556	2,556
Comprehensive income (loss) :
Net income				600,039			600,039	27,308	627,347
Other comprehensive income (loss), net of tax (note 14)
Adjustments from foreign currency translation					(312,267)		(312,267)	(3,283)	(315,550)
Unrealized gains (losses) on marketable securities, net					(26,459)		(26,459)	(147)	(26,606)
Unrealized gains (losses) on derivative instruments, net					440		440		440
Pension and other postretirement benefits adjustments					(16,746)		(16,746)	(1,633)	(18,379)
Total comprehensive income (loss)							245,007	22,245	267,252
Purchase of treasury stock						(34,404)	(34,404)		(34,404)
Reissuance of treasury stock				(275)		3,916	3,641	3,761	7,402
Ending Balance at Mar. 31, 2008	86,067	172,529	39,811	5,106,197	(782,198)	(71,927)	4,550,479	141,806	4,692,285
Transfer to legal reserves			4,154	(4,154)
Dividends paid to Honda Motor Co., Ltd. shareholders				(139,724)			(139,724)		(139,724)
Dividends paid to noncontrolling interests								(10,841)	(10,841)
Capital transactions and others								(172)	(172)
Comprehensive income (loss) :
Net income				137,005			137,005	13,928	150,933
Other comprehensive income (loss), net of tax (note 14)
Adjustments from foreign currency translation					(477,316)		(477,316)	(19,865)	(497,181)
Unrealized gains (losses) on marketable securities, net					(25,063)		(25,063)	(60)	(25,123)
Unrealized gains (losses) on derivative instruments, net					(460)		(460)		(460)
Pension and other postretirement benefits adjustments					(37,791)		(37,791)	(1,740)	(39,531)
Total comprehensive income (loss)							(403,625)	(7,737)	(411,362)
Purchase of treasury stock						(62)	(62)		(62)
Reissuance of treasury stock				(57)		277	220		220
Ending Balance at Mar. 31, 2009	86,067	172,529	43,965	5,099,267	(1,322,828)	(71,712)	4,007,288	123,056	4,130,344
Transfer to legal reserves			1,498	(1,498)
Dividends paid to Honda Motor Co., Ltd. shareholders				(61,696)			(61,696)		(61,696)
Dividends paid to noncontrolling interests								(16,278)	(16,278)
Capital transactions and others								127	127
Comprehensive income (loss) :
Net income				268,400			268,400	14,211	282,611
Other comprehensive income (loss), net of tax (note 14)
Adjustments from foreign currency translation					91,097		91,097	5,750	96,847
Unrealized gains (losses) on marketable securities, net					23,107		23,107	111	23,218
Unrealized gains (losses) on derivative instruments, net					(324)		(324)		(324)
Pension and other postretirement benefits adjustments					786		786	813	1,599
Total comprehensive income (loss)							383,066	20,885	403,951
Purchase of treasury stock						(20)	(20)		(20)
Reissuance of treasury stock						2	2		2
Ending Balance at Mar. 31, 2010	86067	172529	45463	5304473	-1208162	-71730	4328640	127790	4456430

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (JPY ¥)
In Millions	12 Months Ended Mar. 31, 2010	12 Months Ended Mar. 31, 2009	12 Months Ended Mar. 31, 2008
Cash flows from operating activities (note 13):
Net income (note 1(c))	282611	150933	627347
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation excluding property on operating leases	401,743	441,868	417,393
Depreciation of property on operating leases	227,931	195,776	101,032
Deferred income taxes	56,606	41,773	31,341
Equity in income of affiliates	(93,282)	(99,034)	(118,942)
Dividends from affiliates	140,901	65,140	67,764
Provision for credit and lease residual losses on finance subsidiaries-receivables	40,062	77,016	58,011
Impairment loss on investments in securities	603	26,001	577
Impairment loss on long-lived assets and goodwill excluding property on operating leases	548	21,597
Impairment loss on property on operating leases	3,312	18,528	5,850
Loss (gain) on derivative instruments, net	(37,753)	(15,506)	70,251
Decrease (increase) in assets:
Trade accounts and notes receivable	(6,910)	(30,025)	(67,696)
Inventories	352,994	(262,782)	(100,622)
Other current assets	103,071	(82,838)	(2,609)
Other assets	24,150	8,640	(130,666)
Increase (decrease) in liabilities:
Trade accounts and notes payable	151,345	(133,662)	32,327
Accrued expenses	(20,457)	(102,711)	(24,768)
Income taxes payable	(14,524)	(12,861)	20
Other current liabilities	5,662	10,630	2,301
Other liabilities	(30,146)	74,872	179,537
Other, net	(44,255)	(9,714)	(21,530)
Net cash provided by operating activities	1,544,212	383,641	1,126,918
Cash flows from investing activities:
Increase in investments and advances	(19,419)	(4,879)	(6,417)
Decrease in investments and advances	14,078	1,921	1,270
Payments for purchases of available-for-sale securities	(5,871)	(31,936)	(158,426)
Proceeds from sales of available-for-sale securities	4,945	26,896	179,911
Payments for purchases of held-to-maturity securities	(21,181)	(17,348)	(39,482)
Proceeds from redemptions of held-to-maturity securities	6,283	32,667	32,557
Capital expenditures	(392,062)	(635,190)	(668,228)
Proceeds from sales of property, plant and equipment	24,472	18,843	26,868
Acquisitions of finance subsidiaries-receivables	(1,448,146)	(2,303,930)	(2,712,775)
Collections of finance subsidiaries-receivables	1,595,235	2,023,031	2,312,311
Sales (repurchases) of finance subsidiaries-receivables, net	(55,168)	324,672	158,497
Purchases of operating lease assets	(544,027)	(668,128)	(839,261)
Proceeds from sales of operating lease assets	245,110	100,017	26,776
Net cash used in investing activities	(595,751)	(1,133,364)	(1,686,399)
Cash flows from financing activities:
Increase (decrease) in short-term debt, net	(649,641)	270,795	601,957
Proceeds from long-term debt	1,132,222	1,299,984	1,061,792
Repayments of long-term debt	(963,833)	(889,483)	(782,749)
Dividends paid (note 11)	(61,696)	(139,724)	(152,590)
Dividends paid to noncontrolling interests	(16,278)	(10,841)	(9,663)
Sales (purchases) of treasury stock, net	(18)	131	(30,746)
Net cash provided by (used in) financing activities	(559,244)	530,862	688,001
Effect of exchange rate changes on cash and cash equivalents	40,316	(141,672)	(23,164)
Net change in cash and cash equivalents	429,533	(360,533)	105,356
Cash and cash equivalents at beginning of year	690,369	1,050,902	945,546
Cash and cash equivalents at end of year	1119902	690369	1050902

General and Summary of Signific

General and Summary of Significant Accounting Policies
	12 Months Ended Mar. 31, 2010 JPY (¥)
General and Summary of Significant Accounting Policies	(1) General and Summary of Significant Accounting Policies (a) Description of Business Honda Motor Co., Ltd. (the Company) and its subsidiaries (collectively Honda) mainly develop, manufacture and distribute motorcycles, automobiles, power products, and also provide financing for the sale of those products. Principal manufacturing facilities are located in Japan, the United States of America, Canada, Mexico, the United Kingdom, Italy, China, India, Thailand, Vietnam, Argentina, Brazil and Turkey. (b) Basis of Presenting Consolidated Financial Statements The Company and its domestic subsidiaries maintain their books of account in conformity with financial accounting standards of Japan, and its foreign subsidiaries generally maintain their books of account in conformity with those of the countries of their domicile. The consolidated financial statements presented herein have been prepared in a manner and reflect the adjustments which are necessary to conform them with U.S. generally accepted accounting principles. (c) Consolidation Policy The consolidated financial statements include the accounts of the Company, its subsidiaries and those variable interest entities where Honda is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. Honda adopted Statement of Financial Accounting Standards No.160, Noncontrolling Interests in Consolidated Financial Statements an amendment of ARB No.51, which is now codified in the FASB Accounting Standards Codification (ASC) 810 Consolidation, effective April1, 2009. This statement requires a noncontrolling interest in a subsidiary to be reported as equity in the consolidated financial statements, and requires that changes in a parents ownership interest while the parent retains its controlling financial interest in its subsidiary shall be accounted for as equity transactions. Upon the adoption of this statement, noncontrolling interests, which were previously referred to as minority interests and classified between total liabilities and stockholders equity on the consolidated balance sheets, are now included as a separate component of total equity. In addition, the presentation of consolidated statements of income, changes in equity and cash flows has been changed. The presentation and disclosure requirements of this statement have been applied retrospectively. Investments in affiliates in which Honda has the ability to exercise significant influence over their operating and financial policies, but where Honda does not have a controlling financial interest are accounted for using the equity method. There are some subsidiaries and affiliates of which the fiscal year-end is December31. (d) Use of Estimates Management of Honda has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities to prepare its consolidated financial statements in conformity with U.S. generally accepted accounting principles. Significant items subject to such estimates and assumptions include, but are not limited

Finance Subsidiaries-Receivable

Finance Subsidiaries-Receivables and Securitizations
	12 Months Ended Mar. 31, 2010 JPY (¥)
Finance Subsidiaries-Receivables and Securitizations	(2) Finance Subsidiaries-Receivables and Securitizations Finance subsidiaries-receivables represent finance receivables generated by finance subsidiaries. Certain finance receivables related to sales of inventory are included in trade receivables and other assets in the consolidated balance sheets. Finance receivables include wholesale financing to dealers, retail financing and direct financing leases to consumers. The allowance for credit losses is maintained at an amount management deems adequate to cover estimated losses on finance receivables. The allowance is based on managements evaluation of many factors, including current economic trends, industry experience, inherent risks in the portfolio and the borrowers ability to pay. Finance subsidiaries of the Company purchase insurance to cover a substantial amount of the estimated residual value of vehicles leased as direct financing leases to customers. The allowance for losses on lease residual values is maintained at an amount management deems adequate to cover estimated losses on the uninsured portion of the vehicles lease residual values. The allowance is also based on managements evaluation of many factors, including current economic conditions, industry experience and the finance subsidiaries historical experience with residual value losses. Finance subsidiaries-receivables, net, consisted of the following at March 31, 2009 and 2010: Yen (millions) 2009 2010 Direct financing leases 699,301 449,459 Retail 3,138,804 3,246,493 Wholesale 351,499 301,418 Term loans to dealers 26,140 30,308 Total finance receivables 4,215,744 4,027,678 Retained interests in securitizations 45,648 27,555 4,261,392 4,055,233 Less: Allowance for credit losses 38,070 37,320 Allowance for losses on lease residual values 20,393 9,253 Unearned interest income and fees 35,135 27,672 4,167,794 3,980,988 Less: Finance receivables included in trade receivables, net 424,612 361,882 Finance receivables included in other assets, net 170,870 157,613 Finance subsidiaries-receivables, net 3,572,312 3,461,493 Less current portion 1,172,030 1,100,158 Noncurrent finance subsidiaries-receivables, net 2,400,282 2,361,335 The following schedule shows the contractual maturities of finance receivables for each of the five years following March31, 2010 and thereafter: Years ending March31 Yen (millions) 2011 1,485,545 2012 1,005,324 2013 784,869 2014 488,110 2015 201,672 After five years 62,158 2,542,133 Total 4,027,678 Net sales and other operating revenue and cost of sales include finance income and related cost of finance subsidiaries for each of the years in the three-year period ended March31, 2010 as follows: Yen (millions) 2008 2009

Variable Interest Entities

Variable Interest Entities
	12 Months Ended Mar. 31, 2010 JPY (¥)
Variable Interest Entities	(3) Variable Interest Entities Honda considers its involvement with a variable interest entity (VIE) under the FASB Accounting Standards Codification (ASC) 810 Consolidation. This standard requires the reporting entity to consolidate a VIE when that enterprise has a variable interest that (1)absorbs a majority of the entitys expected losses, (2)receives a majority of the entitys expected residual returns, or (3)both. For the purpose of accelerating the receipt of cash related to its finance receivables, the finance subsidiaries of the Company in North America periodically securitize and sell pools of these receivables, and newly establish the trust to issue asset-backed securities for each securitization. The trusts which were structured in North America in the year ended March31, 2010 did not meet the conditions to be a qualifying special purpose entity. In addition, Honda deemed that the total equity investments of these trusts at risk were not sufficient to finance their activities without additional subordinated financial support provided by our finance subsidiaries. Accordingly, Honda recognized these trusts as VIEs. Furthermore, as the finance subsidiaries retain certain subordinated interests of these trusts and it is expected that Honda would absorb the majority of the expected losses of these trusts, Honda has consolidated these trusts. The assets of consolidated VIEs totaled 358,271million as of March31, 2010. The majority of the assets were included in short-term and long-term finance subsidiaries-receivables on the consolidated balance sheet. The liabilities of consolidated VIEs totaled 348,941million as of March31, 2010, of which the majority were included in short-term and long-term debt on the consolidated balance sheet. The restricted cash as collateral for the payment of the related secured debt obligation was included in investments and advances other, and amounted to 5,653million as of March31, 2010 in the consolidated balance sheet. The creditors of these trusts do not have recourse to the finance subsidiaries general credit with the exception of representations and warranties customary in the industry provided by the finance subsidiaries to these trusts. There is no VIE in which Honda holds significant variable interest but is not the primary beneficiary as of March31, 2010.

Inventories

Inventories
	12 Months Ended Mar. 31, 2010 JPY (¥)
Inventories	(4) Inventories Inventories at March31, 2009 and 2010 are summarized as follows: Yen (millions) 2009 2010 Finished goods 830,973 559,569 Work in process 45,196 35,558 Raw materials 367,792 340,502 1,243,961 935,629

Investments in and Advances to

Investments in and Advances to affiliates
	12 Months Ended Mar. 31, 2010 JPY (¥)
Investments in and Advances to affiliates	(5) Investments in and Advances to affiliates The difference between the carrying amount of investment in affiliates and the amount of underlying equity is mainly investor level goodwill. The amounts are not material as of March31, 2009 and 2010. Investments in affiliates include equity securities which have quoted market values at March31, 2009 and 2010 compared with related carrying amounts as follows: Yen (millions) 2009 2010 Carrying amount 187,468 177,766 Market value 207,855 405,596 Certain combined financial information in respect of affiliates accounted for under the equity method at March31, 2009 and 2010, and for each of the years in the three-year period ended March31, 2010 is shown below (see notes 1(c) and 20): Yen (millions) As of March31, 2009 Motorcycle Business Automobile Business PowerProduct and Other Businesses Total Current assets 199,692 1,132,897 23,460 1,356,049 Other assets, principally property, plant and equipment 204,465 1,104,998 27,437 1,336,900 Total assets 404,157 2,237,895 50,897 2,692,949 Current liabilities 149,946 830,078 11,708 991,732 Other liabilities 10,924 231,672 4,952 247,548 Total liabilities 160,870 1,061,750 16,660 1,239,280 Equity 243,287 1,176,145 34,237 1,453,669 Yen (millions) As of March31, 2010 Motorcycle Business Automobile Business PowerProduct and Other Businesses Total Current assets 235,197 1,229,286 16,554 1,481,037 Other assets, principally property, plant and equipment 232,885 1,033,739 31,049 1,297,673 Total assets 468,082 2,263,025 47,603 2,778,710 Current liabilities 187,567 973,603 7,501 1,168,671 Other liabilities 13,085 254,773 5,166 273,024 Total liabilities 200,652 1,228,376 12,667 1,441,695 Equity 267,430 1,034,649 34,936 1,337,015 Yen (millions) For the year ended March31, 2008 Motorcycle Business Automobile Business PowerProduct and Other Businesses Total Net sales 1,128,118 4,118,283 29,147 5,275,548 Net income attributable to Hondas affiliates 75,269 205,696 2,962 283,927 Yen (millions) For the year ended March31, 2009 Motorcycle Business Automobile Business PowerProduct and Other Businesses Total Net sales 1,064,366 3,988,672 28,823 5,081,861 Net income attributable to Hondas affiliates 73,945 126,994 2,611 203,550 Yen (millions) For the year ended March31, 2010 Motorcycle Business Automobile Busine

Investments and Advances-Other

Investments and Advances-Other
	12 Months Ended Mar. 31, 2010 JPY (¥)
Investments and Advances-Other	(6) Investments and Advances-Other Investments and advances at March31, 2009 and 2010 consist of the following: Yen (millions) 2009 2010 Current Corporate debt securities 235 31 Government bonds 1,000 U.S. government and agency debt securities 1,861 Money Market Fund (non-marketable) 3,913 Advances 473 1,350 Other 472 5,621 3,714 Investments and advances due within one year are included in other current assets. Yen (millions) 2009 2010 Noncurrent Auction rate securities (non-marketable) 9,906 10,041 Marketable equity securities 54,807 94,560 Government bonds 1,999 1,999 U.S. government and agency debt securities 14,875 Non-marketable equity securities accounted for under the cost method Non-marketable preferred stocks 2,000 2,000 Other 13,824 9,888 Guaranty deposits 28,755 25,452 Advances 1,717 1,517 Other 20,226 24,515 133,234 184,847 Certain information with respect to marketable securities at March31, 2009 and 2010 is summarized below: Yen (millions) 2009 2010 Available-for-sale Cost 34,331 39,823 Fair value 54,807 94,560 Gross unrealized gains 23,531 55,242 Gross unrealized losses 3,055 505 Held-to-maturity Amortized cost 3,234 18,766 Fair value 3,320 18,862 Gross unrealized gains 86 98 Gross unrealized losses 2 Maturities of debt securities classified as held-to-maturity at March31, 2010 are as follows: Yen (millions) Due within one year 1,892 Due after one year through five years 16,874 Due after five years through ten years Total 18,766 Realized gains and losses from available-for-sale securities included in other income (expenses) other, net for each of the years in the three-year period ended March31, 2010, were 232million net losses, 4,308million net losses and 3million net losses, respectively. Gross unrealized losses on marketable securities and fair value of the related securities, aggregated by length of time that individual securities have been in a continuous unrealized loss position at March31, 2010 are as follows: Yen (millions) Fairvalue Unrealized losses Available-for-sale Less than 12 months 1,169 (49 ) 12 months or longer 897 (456 ) 2,066 (505 ) Held-to-maturity Less than 12 months 1,859 (2 ) 12 months or longer 1,859 (2 ) Honda does not believe the decline in fair value of any of its investment securities to be other than temporary, which is based on factors such as financial and operating conditions of the issuer, the industry in which

Property on Operating Leases

Property on Operating Leases
	12 Months Ended Mar. 31, 2010 JPY (¥)
Property on Operating Leases	(7) Property on Operating Leases Future minimum lease rentals expected to be received from property on operating leases at March31, 2010 are as follows: Years ending March31 Yen (millions) 2011 239,341 2012 142,930 2013 46,464 2014 2,367 2015 216 Total future minimum lease rentals 431,318 Future minimum rentals as shown above should not necessarily be considered indicative of future cash collections.

Short-term and Long-term Debt

Short-term and Long-term Debt
	12 Months Ended Mar. 31, 2010 JPY (¥)
Short-term and Long-term Debt	(8) Short-term and Long-term Debt Short-term debt at March31, 2009 and 2010 is as follows: Yen (millions) 2009 2010 Short-term bank loans 637,415 260,648 Asset backed notes 37,719 Medium-term notes 234,154 129,903 Commercial paper 835,250 638,074 1,706,819 1,066,344 The weighted average interest rates on short-term debt outstanding at March31, 2009 and 2010 were 1.87% and 0.81%, respectively. Long-term debt at March31, 2009 and 2010 is as follows: Yen (millions) 2009 2010 Honda Motor Co., Ltd.: Loans, maturing through 2031: Unsecured, principally from banks 361 298 0.76% Japanese yen unsecured bond due 2012 70,000 361 70,298 Subsidiaries: Loans, maturing through 2029: Secured, principally from banks 16,369 17,336 Unsecured, principally from banks 551,214 881,872 Asset backed notes, maturing through 2013 311,222 0.99% Japanese yen unsecured bond due 2009 30,000 1.14% Japanese yen unsecured bond due 2009 30,000 0.31% Japanese yen unsecured bond due 2010 50 0.66% Japanese yen unsecured bond due 2010 30,000 30,000 0.94% Japanese yen unsecured bond due 2010 30,000 30,000 1.30% Japanese yen unsecured bond due 2011 40,000 40,000 1.51% Japanese yen unsecured bond due 2011 30,000 30,000 1.48% Japanese yen unsecured bond due 2012 30,000 30,000 0.49% Japanese yen unsecured bond due 2012 20,000 1.31% Japanese yen unsecured bond due 2013 40,000 40,000 1.05% Japanese yen unsecured bond due 2014 30,000 3.82% Thai baht unsecured bond due 2009 2,760 5.46% Thai baht unsecured bond due 2009 4,140 4.40% Thai baht unsecured bond due 2009 4,692 4.20% Thai baht unsecured bond due 2010 8,281 8,610 4.72% Thai baht unsecured bond due 2011 3,588 3,731 Medium-term notes, maturing through 2023 2,062,707 1,498,379 Less unamortized discount, net 4,002 6,117 2,909,799 2,965,033 Total long-term debt 2,910,160 3,035,331 Less current portion 977,523 722,296 1,932,637 2,313,035 Pledged assets at March31, 2009 and 2010 is as follows: Yen (millions) 2009 2010 Trade accounts and notes receivable 8,655 Inventories 3,777 Property, plant and equipment 24,750 20,492 Finance subsidiaries-receivables 352,618 The loans maturing through 2031 and through 2029 include the loans secured by trade accounts and notes receivable, inventories, and property, plant and equipment presented above and subject to collateralization upon request, and their interest rates range from 0.78% to 14.71%per annum at March31, 2010 and weighted average interest rate on total outstanding long-term debt at March31, 2009

Other Liabilities

Other Liabilities
	12 Months Ended Mar. 31, 2010 JPY (¥)
Other Liabilities	(9) Other Liabilities Other liabilities at March31, 2009 and 2010 consist of the following: Yen (millions) 2009 2010 Accrued liabilities for product warranty, excluding current portion 132,884 118,498 Pension and other postretirement benefits 608,875 581,418 Deferred income taxes 392,368 403,889 Other 384,441 336,715 1,518,568 1,440,520

Income Taxes

Income Taxes
	12 Months Ended Mar. 31, 2010 JPY (¥)
Income Taxes	(10) Income Taxes Total income tax expense (benefit) for each of the years in the three-year period ended March31, 2010 are allocated as follows: Yen (millions) 2008 2009 2010 Income from continuing operations 387,436 109,835 146,869 Other comprehensive income (loss) (note 14) (89,519 ) (58,302 ) 27,708 297,917 51,533 174,577 Income (loss) before income taxes and equity in income of affiliates by domestic and foreign source and income tax expense (benefit) for each of the years in the three-year period ended March31, 2010 consisted of the following: Yen (millions) Income taxes Income(loss) before income taxes Current Deferred Total 2008: Japanese 228,868 181,010 (4,064 ) 176,946 Foreign 666,973 175,085 35,405 210,490 895,841 356,095 31,341 387,436 2009: Japanese (132,652 ) 30,485 7,654 38,139 Foreign 294,386 37,577 34,119 71,696 161,734 68,062 41,773 109,835 2010: Japanese (24,723 ) 36,633 (7,018 ) 29,615 Foreign 360,921 53,630 63,624 117,254 336,198 90,263 56,606 146,869 The statutory income tax rate in Japan was approximately 40% for each of the years in the three-year period ended March31, 2010. The foreign subsidiaries are subject to taxes based on income at rates ranging from 16% to 40%. The effective income tax rate for Honda for each of the years in the three-year period ended March31, 2010 differs from the Japanese statutory income tax rate for the following reasons: 2008 2009 2010 Statutory income tax rate 40.0 % 40.0 % 40.0 % Recognition of valuation allowance *1 0.5 17.3 6.2 Difference in statutory tax rates of foreign subsidiaries *2 (4.9 ) (25.8 ) (6.3 ) Reversal of valuation allowance (0.9 ) (0.4 ) (0.9 ) Research and development credit (3.2 ) (1.7 ) (0.3 ) Dividend and royalty income from subsidiaries and affiliates, net of foreign tax credit *3 1.2 21.7 4.1 Undistributed earnings of subsidiaries and affiliates 1.6 11.6 3.7 Other adjustments relating to prior years (5.9 ) (1.6 ) Adjustments for unrecognized tax benefits 9.0 11.5 0.6 Other (0.1 ) (0.4 ) (1.8 ) Effective tax rate 43.2 % 67.9 % 43.7 % *1 Due to the decrease in the amount of foreign tax credit carryforwards expected to be utilized in the future years, the Company had recorded a valuation allowance for the related deferred tax asset as of March31, 2009. *2 Income before income taxes of foreign subsid

Dividends and Legal Reserves

Dividends and Legal Reserves
	12 Months Ended Mar. 31, 2010 JPY (¥)
Dividends and Legal Reserves	(11) Dividends and Legal Reserves The Company Law of Japan provides that earnings in an amount equal to 10% of dividends of retained earnings shall be appropriated as a capital surplus or a legal reserve on the date of distribution of retained earnings until an aggregated amount of capital surplus and a legal reserve equals 25% of stated capital. Certain foreign subsidiaries are also required to appropriate their earnings to legal reserves under the laws of their respective countries. Dividends and appropriations to the legal reserves charged to retained earnings during the years in the three-year period ended March 31, 2010 represent dividends paid out during those years and the related appropriations to the legal reserves. Dividends per share for each of the years in the three-year period ended March 31, 2010 were 84, 77 and 34, respectively. The accompanying consolidated financial statements do not include any provision for the dividend of 12 per share aggregating 21,775 million proposed and resolved in the general shareholders meeting held in June 2010.

Pension and Other Postretiremen

Pension and Other Postretirement Benefits
	12 Months Ended Mar. 31, 2010 JPY (¥)
Pension and Other Postretirement Benefits	(12) Pension and Other Postretirement Benefits The Company and its subsidiaries have various pension plans covering substantially all of their employees in Japan and certain employees in foreign countries. Benefits under the plans are primarily based on the combination of years of service and compensation. The funding policy is to make periodic contributions as required by applicable regulations. Plan assets consist primarily of domestic and foreign equity and debt securities. Obligations and funded status Reconciliations of beginning and ending balances of the pension benefit obligations and the fair value of the plan assets are as follows: Yen (millions) Japanese plans Foreign plans 2009 2010 2009 2010 Change in benefit obligations: Benefit obligations at beginning of year (1,233,359 ) (1,129,636 ) (378,354 ) (296,305 ) Service cost (41,175 ) (37,215 ) (27,198 ) (15,210 ) Interest cost (24,201 ) (22,593 ) (26,558 ) (23,135 ) Plan participants contributions (112 ) (129 ) Actuarial gain (loss) (4,132 ) (12,484 ) 81,398 (99,498 ) Benefits paid 38,019 43,977 6,323 9,352 Amendment 135,212 7,146 (1,325 ) Other (3,625 ) (7,162 ) Foreign currency translation 44,675 2,729 Benefit obligations at end of year (1,129,636 ) (1,157,951 ) (296,305 ) (430,683 ) Change in plan assets: Fair value of plan assets at beginning of year 716,965 578,832 439,102 285,214 Actual return on plan assets (129,916 ) 89,610 (134,300 ) 94,507 Employer contributions 29,802 70,273 17,975 11,405 Plan participants contributions 112 129 Benefits paid (38,019 ) (43,977 ) (6,323 ) (9,352 ) Foreign currency translation (31,352 ) (2,255 ) Fair value of plan assets at end of year 578,832 694,738 285,214 379,648 Funded status (550,804 ) (463,213 ) (11,091 ) (51,035 ) Amounts recognized in the consolidated balance sheets consist of: Noncurrent assets 603 1,259 1,382 9,479 Current liabilities (334 ) (360 ) (1 ) (21 ) Noncurrent liabilities (551,073 ) (464,112 ) (12,472 ) (60,493 ) Total (550,804 ) (463,213 ) (11,091 ) (51,035 ) Amounts recognized in accumulated other comprehensive income (loss) consist of: Actuarial loss (gain) 542,159 458,609 101,654 132,730 Net transition obligation 202 171 Prior service c

Supplemental Disclosures of Cas

Supplemental Disclosures of Cash Flow Information
	12 Months Ended Mar. 31, 2010 JPY (¥)
Supplemental Disclosures of Cash Flow Information	(13) Supplemental Disclosures of Cash Flow Information Yen (millions) 2008 2009 2010 Cash paid (provided), net during the year for: Interest 227,024 211,298 154,814 Income taxes 301,286 160,631 (229 )

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)
	12 Months Ended Mar. 31, 2010 JPY (¥)
Accumulated Other Comprehensive Income (Loss)	(14) Accumulated Other Comprehensive Income (Loss) The components and related changes in accumulated other comprehensive income (loss) for each of the years in the three-year period ended March31, 2010 are as follows: Yen (millions) 2008 2009 2010 Adjustments from foreign currency translation: Balance at beginning of year (279,002 ) (591,269 ) (1,068,585 ) Adjustments for the year (312,267 ) (477,316 ) 91,097 Balance at end of year (591,269 ) (1,068,585 ) (977,488 ) Net unrealized gains on marketable securities: Balance at beginning of year 58,139 31,680 6,617 Reclassification adjustments for realized (gain) loss on marketable securities (73 ) 17,372 353 Increase (decrease) in net unrealized gains on marketable securities (26,386 ) (42,435 ) 22,754 Balance at end of year 31,680 6,617 29,724 Net unrealized gains (losses) on derivative instruments: Balance at beginning of year 20 460 Reclassification adjustments for realized (gain) loss on derivative instruments 18 (412 ) 194 Increase (decrease) in net unrealized gains on derivative instruments 422 (48 ) (518 ) Balance at end of year 460 (324 ) Pension and other postretirement benefits adjustment* Balance at beginning of year (206,323 ) (223,069 ) (260,860 ) Amortization of unrealized (gain) loss on pension and other postretirement benefits 8,697 8,958 7,581 (Increase) decrease in net unrealized losses on pension and other postretirement benefits (25,443 ) (46,749 ) (6,795 ) Balance at end of year (223,069 ) (260,860 ) (260,074 ) Total accumulated other comprehensive income (loss): Balance at beginning of year (427,166 ) (782,198 ) (1,322,828 ) Adjustments for the year (355,032 ) (540,630 ) 114,666 Balance at end of year (782,198 ) (1,322,828 ) (1,208,162 ) The tax effects allocated to each component of other comprehensive income (loss) and reclassification adjustments are as follows: Yen (millions) Before-tax amount Tax (expense)or benefit (note 10) Net-of-tax amount 2008: Adjustments from foreign currency translation (370,075 ) 57,808 (312,267 ) Unrealized gains (losses) on marketable securities: Unrealized holding gains (losses) arising during the year (43,138 ) 16,752 (26,386 ) Reclassification adjustments for losses (gains) realized in net income (122 ) 49 (73 ) Net unrealized gains (losses) (

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Mar. 31, 2010 JPY (¥)
Fair Value Measurements	(15) Fair Value Measurements Honda adopted Statement of Financial Accounting Standards (SFAS) No.157, Fair Value Measurements which is now codified in the FASB Accounting Standards Codification (ASC) 820 Fair Value Measurements and Disclosures, effective April1, 2008. This statement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction, and emphasizes that a fair value measurement should be determined based on the assumptions that market participants would use in pricing an asset or liability. This statement establishes a three-level hierarchy to be used when measuring fair value. The following is a description of the three hierarchy levels: Level1 Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date Level2 Inputs other than quoted prices included within Level 1 that are observable for theassets or liabilities, either directly or indirectly Level3 Unobservable inputs for the assets or liabilities The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest input that is significant to the fair value measurement in its entirety. The following table presents the assets and liabilities measured at fair value on a recurring basis as of March31, 2009 and 2010. Yen (millions) As of March31, 2009 Level 1 Level 2 Level 3 Gross fair value Netting adjustment Net amount Assets: Retained interests in securitizations 45,648 45,648 45,648 Derivative instruments Foreign exchange instruments (notes 1(q) and 16) 71,735 71,735 Interest rate instruments (notes 1(q) and 16) 51,818 2,437 54,255 Total derivative instruments 123,553 2,437 125,990 (68,251 ) 57,739 Available-for-sale securities Marketable equity securities 54,807 54,807 54,807 Money market funds 3,913 3,913 3,913 Auction rate securities 9,906 9,906 9,906 Total available-for-sale securities 54,807 3,913 9,906 68,626 68,626 Total 54,807 127,466 57,991 240,264 (68,251 ) 172,013 Liabilities: Derivative instruments Foreign exchange instruments (notes 1(q) and 16) (25,880 ) (25,880 ) Interest rate instruments (notes 1(q) and 16) (114,406 ) (143 ) (114,549 ) To

Risk Management Activities and

Risk Management Activities and Derivative Financial Instruments
	12 Months Ended Mar. 31, 2010 JPY (¥)
Risk Management Activities and Derivative Financial Instruments	(16) Risk Management Activities and Derivative Financial Instruments Honda uses derivative financial instruments in the normal course of business to reduce their exposure to fluctuations in foreign exchange rates and interest rates. (see notes 1(q) and 15) Currency swap agreements are used to manage currency risk exposure on foreign currency denominated debt. Foreign currency forward exchange contracts and purchased option contracts are used to hedge currency risk of sale commitments denominated in foreign currencies (principally U.S. dollars). Foreign currency written option contracts are entered into in combination with purchased option contracts to offset premium amounts to be paid for purchased option contracts. Interest rate swap agreements are mainly used to manage interest rate risk exposure and to convert floating rate financing, such as commercial paper, to (normally three-five years) fixed rate financing in order to match financing costs with income from finance receivables. These instruments involve, to varying degrees, elements of credit, exchange rate and interest rate risks in excess of the amount recognized in the consolidated balance sheets. The aforementioned instruments contain an element of risk in the event the counterparties are unable to meet the terms of the agreements. However, Honda minimizes the risk exposure by limiting the counterparties to major international banks and financial institutions meeting established credit guidelines. Management of Honda does not expect any counterparty to default on its obligations and, therefore, does not expect to incur any losses due to counterparty default. Honda currently does not require or place collateral for these financial instruments with any counterparties. Contract amounts outstanding for foreign currency forward exchange contracts, foreign currency option contracts and currency swap agreements and the notional principal amounts of interest rate swap agreements at March 31, 2009 and 2010 are as follows: Derivatives designated as hedging instruments: Yen (millions) 2009 2010 Foreign currency forward exchange contracts 26,542 Foreign exchange instruments 26,542 Derivatives not designated as hedging instruments: Yen (millions) 2009 2010 Foreign currency forward exchange contracts 531,615 552,585 Foreign currency option contracts 76,099 92,965 Currency swap agreements 667,011 718,964 Foreign exchange instruments 1,274,725 1,364,514 Interest rate swap agreements 4,327,124 3,806,091 Interest rate instruments 4,327,124 3,806,091 Cash flow hedge The Company applies hedge accounting for certain foreign currency forward exchange contracts related to forecasted foreign currency transactions between the Company and its subsidiaries. Changes in the fair value of derivative financial instruments designated as cash flow hedges are recognized in other comprehensive income (loss). The amounts are reclassified into earnings in the s

Commitments and Contingent Liab

Commitments and Contingent Liabilities
	12 Months Ended Mar. 31, 2010 JPY (¥)
Commitments and Contingent Liabilities	(17) Commitments and Contingent Liabilities At March31, 2010, Honda had commitments for purchases of property, plant and equipment of approximately 47,436 million. Honda has entered into various guarantee and indemnification agreements. At March31, 2009 and 2010, Honda has guaranteed 33,691million and 31,772million of bank loans of employees for their housing costs, respectively. If an employee defaults on his/her loan payments, Honda is required to perform under the guarantee. The undiscounted maximum amount of Hondas obligation to make future payments in the event of defaults is 33,691million and 31,772million, respectively, at March31, 2009 and 2010. At March31, 2010, no amount has been accrued for any estimated losses under the obligations, as it is probable that the employees will be able to make all scheduled payments. Honda warrants its products for specific periods of time. Product warranties vary depending upon the nature of the product, the geographic location of its sale and other factors. The changes in provisions for those product warranties for each of the years in the two-year period ended March31, 2010 are as follow: Yen (millions) 2009 2010 Balance at beginning of year 293,760 233,979 Warranty claims paid during the period (123,509 ) (86,886 ) Liabilities accrued for warranties issued during the period 79,576 79,520 Changes in liabilities for pre-existing warranties during the period 2,233 (3,571 ) Foreign currency translation (18,081 ) 2,996 Balance at end of year 233,979 226,038 With respect to product liability, personal injury claims or lawsuits, Honda believes that any judgment that may be recovered by any plaintiff for general and special damages and court costs will be adequately covered by Hondas insurance and accrued liabilities. Punitive damages are claimed in certain of these lawsuits. Honda is also subject to potential liability under other various lawsuits and claims including 44 purported class actions in the United States. Honda recognizes an accrued liability for loss contingencies when it is probable that an obligation has been incurred and the amount of loss can be reasonably estimated. Honda reviews these pending lawsuits and claims periodically and adjusts the amounts recorded for these contingent liabilities, if necessary, by considering the nature of lawsuits and claims, the progress of the case and the opinions of legal counsel. After consultation with legal counsel, and taking into account all known factors pertaining to existing lawsuits and claims, Honda believes that the ultimate outcome of such lawsuits and pending claims including 44 purported class actions in the United States should not result in liability to Honda that would be likely to have an adverse material effect on its consolidated financial position, results of operations or cash flows.

Leases

Leases
	12 Months Ended Mar. 31, 2010 JPY (¥)
Leases	(18) Leases Honda is the lessee under several operating leases, primarily for office and other facilities, and certain office equipment. Future minimum lease payments under noncancelable operating leases that have initial or remaining lease terms in excess of one year at March31, 2010 are as follows: Years ending March31 Yen (millions) 2011 22,556 2012 16,169 2013 12,723 2014 9,382 2015 7,980 After five years 48,217 Total minimum lease payments 117,027 Rental expenses under operating leases for each of the years in the three-year period ended March31, 2010 were 49,442million, 47,921million and 42,435million, respectively.

Allowances for Trade Receivable

Allowances for Trade Receivable and Finance Subsidiaries-receivables
	12 Months Ended Mar. 31, 2010 JPY (¥)
Allowances for Trade Receivable and Finance Subsidiaries-receivables	(19) Allowances for Trade Receivable and Finance Subsidiaries-receivables The allowances for trade receivable and finance subsidiaries-receivables for the years ended March31, 2008, 2009 and 2010 are set forth in the following table: Yen (millions) Balance at beginning of period Additions Deductions Foreign currency translation Balanceat end of period Chargedto costs and expenses Bad debts written off March31, 2008: Trade accounts and notes receivable Allowance for doubtful accounts 8,199 2,879 2,785 (112 ) 8,181 Finance subsidiaries-receivables Allowance for credit losses 33,512 46,121 41,177 (5,102 ) 33,354 Allowance for losses on lease residual values 33,928 11,890 17,410 (3,521 ) 24,887 67,440 58,011 58,587 (8,623 ) 58,241 March31, 2009: Trade accounts and notes receivable Allowance for doubtful accounts 8,181 3,700 2,625 (1,801 ) 7,455 Finance subsidiaries-receivables Allowance for credit losses 33,354 53,981 49,609 (2,109 ) 35,617 Allowance for losses on lease residual values 24,887 23,035 26,390 (1,139 ) 20,393 58,241 77,016 75,999 (3,248 ) 56,010 March31, 2010: Trade accounts and notes receivable Allowance for doubtful accounts 7,455 4,039 3,268 329 8,555 Finance subsidiaries-receivables Allowance for credit losses 35,617 32,913 32,053 (1,550 ) 34,927 Allowance for losses on lease residual values 20,393 7,149 18,716 427 9,253 56,010 40,062 50,769 (1,123 ) 44,180

Segment Information

Segment Information
	12 Months Ended Mar. 31, 2010 JPY (¥)
Segment Information	(20) Segment Information Honda has four reportable segments: the Motorcycle business, the Automobile business, the Financial services business and the Power product and other businesses, which are based on Hondas organizational structure and characteristics of products and services. Operating segments are defined as components of Hondas about which separate financial information is available that is evaluated regularly by management in deciding how to allocate resources and in assessing performance. The accounting policies used for these reportable segments are consistent with the accounting policies used in Hondas consolidated financial statements. Principal products and services, and functions of each segment are as follows: Segment Principal products and services Functions Motorcycle business Motorcycles, all-terrain vehicles (ATVs), personal watercrafts and relevant parts Research Development Manufacturing Sales and related services Automobile business Automobiles and relevant parts Research Development Manufacturing Sales and related services Financial services business Financial, insurance services Retail loan and lease related to Honda products Others Power product and other businesses Power products and relevant parts, and others Research Development Manufacturing Sales and related services Others Segment Information As of and for the year ended March 31, 2008 Yen (millions) Motorcycle Business Automobile Business Financial Services Business Power Productand Other Businesses Segment Total Reconciling Items Consolidated Net sales and other operating revenue: External customers 1,558,696 9,489,391 533,553 421,194 12,002,834 12,002,834 Intersegment 15,499 21,571 37,070 (37,070 ) Total 1,558,696 9,489,391 549,052 442,765 12,039,904 (37,070 ) 12,002,834 Cost of sales, SGA and RD expenses 1,407,409 8,827,726 431,254 420,406 11,086,795 (37,070 ) 11,049,725 Segment income 151,287 661,665 117,798 22,359 953,109 953,109 Equity in income of affiliates 28,035 89,521 1,386 118,942 118,942 Assets 1,240,527 5,591,311 5,907,839 330,604 13,070,281 (454,738 ) 12,615,543 Investments in affiliates 118,219 411,001 16,976 546,196 546,196 Depreciation and amortization 48,000 356,003 101,987 12,435 518,425 518,425 Capital expenditures 86,687 544,922 839,888 21,794 1,493,291 1,493,291 Impairment loss on long-lived assets and goodwill 5,850 5,850 5,850 Provision for credit and lease residual losses on finance subsidiaries-receivables 58,011

Subsequent Events

Subsequent Events
	12 Months Ended Mar. 31, 2010 JPY (¥)
Subsequent Events	(21) Subsequent Events The Board of Directors, at its meeting held on May14, 2010, resolved that the Company will purchase its own shares pursuant to Article 156 of the Company Law, which applies pursuant to Article 165, Paragraph 3, of that law. The main purpose for the acquisition are enhancing its capital efficiency and enabling greater flexibility in its capital policies. (1) Type of shares and maximum number of shares to be acquired: Shares of Common Stock 3,500 thousand shares (2) Maximum amount of acquisition: 10,000 million (3) Period of acquisition: Starting on May19, 2010 and ending on June4, 2010 (4) Method of acquisition: Purchase on the Tokyo Stock Exchange Total number and amount of shares the Company acquired during the period were 3,500thousand shares and 9,807 million.

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited) *1
	12 Months Ended Mar. 31, 2010 JPY (¥)
Selected Quarterly Financial Data (Unaudited) *1	(22) Selected Quarterly Financial Data (Unaudited) *1 Quarterly financial data for the years ended March31, 2008, 2009 and 2010 are set forth in the following table: Yen (millions) Yen Netsalesandother operating revenue Operating Income(loss) Netincome(loss) attributable to HondaMotorCo.,Ltd. (note 1(c)) Basicnetincome(loss) attributable to HondaMotorCo.,Ltd. per common share (note1(c)) Year ended March31, 2008: First quarter 2,931,123 221,684 166,117 91.38 Second quarter 2,971,346 286,338 208,483 114.94 Third quarter 3,044,814 276,243 200,009 110.25 Fourth quarter 3,055,551 168,844 25,430 14.01 12,002,834 953,109 600,039 330.54 Year ended March31, 2009: First quarter *2 2,867,221 210,476 173,397 95.56 Second quarter 2,826,865 148,851 123,316 67.96 Third quarter 2,533,257 102,452 20,242 11.16 Fourth quarter *2 1,783,898 (272,136 ) (179,950 ) (99.17 ) 10,011,241 189,643 137,005 75.50 Year ended March31, 2010: First quarter 2,002,212 25,164 7,560 4.17 Second quarter 2,056,655 65,543 54,037 29.78 Third quarter 2,240,740 176,971 134,627 74.19 Fourth quarter 2,279,567 96,097 72,176 39.78 8,579,174 363,775 268,400 147.91 *1 All quarterly financial data is unaudited and also has not been reviewed by the independent registered public accounting firm. *2 During the fiscal year ended March31, 2009, a subsidiary of the Company changed its fiscal year-end from December31 to March31. As a result, the Company eliminated the previously existing three month difference between the reporting periods of the Company and the subsidiary in the consolidated financial statements. The elimination of the lag period represents a change in accounting principle and has been reported by retrospective application. The Company recorded the effect of the retrospective adjustment in the consolidated statement of income for the fiscal three months ended March31, 2009. The Company has eliminated it and adjusted the consolidated statement of income for the fiscal three months ended March31, 2009.