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116 TOYOTA •Annual Report 2008 •
Financial Section
The impact of adopting FAS 158
Toyota adopted the provisions regarding recognition of funded
status and disclosure under FAS 158 as of March 31, 2007.
Toyota recognized the overfunded or underfunded status of its
defined benefit postretirement plans as prepaid pension and
severance costs or accrued pension and severance costs on its
consolidated balance sheet, with corresponding adjustments to
accumulated other comprehensive income, net of tax. The
impacts of adopting the provisions of FAS 158 on Toyota’s con-
solidated balance sheet as of March 31, 2007 are as follows. The
adoption of the provisions had no impact on Toyota’s consoli-
dated statement of income for the year ended March 31, 2007.
Yen in millions
Amount before Amount after
adoption of FAS 158 adoption of
FAS 158 Adjustment FAS 158
Investments and other assets—other (Prepaid pension and severance costs)........................ ¥246,499 ¥142,520 ¥389,019
Accrued expenses (Accrued pension and severance costs) ...................................................... — 30,951 30,951
Accrued pension and severance costs ........................................................................................ 672,154 (31,568) 640,586
Accumulated other comprehensive income (loss) (Pre-tax amount) ........................................ (26,337) 133,437 107,100
Accumulated other comprehensive income (loss) (Net-of-tax amount)................................... (8,270) 91,029 82,759
Information regarding defined benefit plans
Information regarding Toyota’s defined benefit plans is as follows:
U.S. dollars
Yen in millions in millions
March 31, March 31,
2007 2008 2008
Change in benefit obligation
Benefit obligation at beginning of year................................................................................... ¥1,582,958 ¥1,707,969 $17,047
Service cost ................................................................................................................................ 80,414 96,454 963
Interest cost................................................................................................................................ 48,128 54,417 543
Plan participants’ contributions................................................................................................1,988 767 8
Plan amendments...................................................................................................................... (197) (7,619) (76)
Net actuarial gain or loss .......................................................................................................... 65,227 (22,112) (221)
Acquisition and other................................................................................................................ 5,927 (55,960) (559)
Benefits paid .............................................................................................................................. (76,476) (80,761) (806)
Benefit obligation at end of year ......................................................................................... 1,707,969 1,693,155 16,899
Change in plan assets
Fair value of plan assets at beginning of year......................................................................... 1,276,2041,425,451 14,227
Actual return on plan assets ..................................................................................................... 87,471 (206,101) (2,057)
Acquisition and other................................................................................................................ 2,734 (26,851) (268)
Employer contributions............................................................................................................. 133,530 169,543 1,692
Plan participants’ contributions................................................................................................1,988 767 8
Benefits paid .............................................................................................................................. (76,476) (80,761) (806)
Fair value of plan assets at end of year................................................................................ 1,425,451 1,282,048 12,796
Funded status ................................................................................................................................ ¥ 282,518 ¥411,107 $ 4,103
Amounts recognized in the consolidated balance sheet as of March 31, 2007 and 2008 are comprised of the following:
U.S. dollars
Yen in millions in millions
March 31, March 31,
2007 2008 2008
Accrued expenses (Accrued pension and severance costs) ...................................................... ¥ 30,951 ¥ 30,345 $ 303
Accrued pension and severance costs ........................................................................................ 640,586 632,297 6,311
Investments and other assets—other (Prepaid pension and severance costs)........................ (389,019) (251,535) (2,511)
Net amount recognized............................................................................................................ ¥ 282,518 ¥ 411,107 $ 4,103