Toyota 2012 Annual Report Download - page 113

TOYOTA ANNUAL REPORT 2012
Toyota Global Vision Changes for Making
Ever-Better Cars President
ʼ
s Message Medium- to Long-Term
Growth Initiatives Special Feature Management and Corporate Information Investor Information
Business and
Performance Review Financial Section
Notes to Consolidated Financial Statements
Toyota has various other legal actions, other
governmental proceedings and other claims
pending against it, including other product
liability claims in the United States. For the same
reasons discussed above relating to the recall-
related legal proceedings, Toyota is unable to
estimate a range of reasonably possible loss, if
any, beyond the amounts accrued, with respect to
these claims. However, based upon information
currently available to Toyota, Toyota believes
that its losses from these matters, if any, would
not have a material adverse effect on Toyota
ʼ
s
financial position, results of operations or cash
flows.
In October 2000, the European Union brought into
effect a directive that requires member states
to promulgate regulations implementing the
following:
(
i
)
manufacturers shall bear all or a
significant part of the costs for taking back end-of-
life vehicles put on the market after July 1, 2002
and dismantling and recycling those vehicles.
Beginning January 1, 2007, this requirement
became applicable to vehicles put on the market
before July 1, 2002;
(
ii
)
manufacturers may not use
certain hazardous materials in vehicles to be sold
after July 2003;
(
iii
)
vehicles type-approved and
put on the market after December 15, 2008, shall
agreement has been approved by the federal
court and all state cases have been dismissed.
other circumstances, Toyota may be required
to revise the accruals for the expected costs.
Although Toyota does not expect its compliance
with the directive to result in significant cash
expenditures, Toyota is continuing to assess the
impact of this future legislation on its results of
operations, cash flows and financial position.
Toyota purchases materials that are
be re-usable and/or recyclable to a minimum of
85% by weight per vehicle and shall be re-usable
and/or recoverable to a minimum of 95% by
weight per vehicle; and
(
iv
)
end-of-life vehicles
must meet actual re-use of 80% and re-use as
material or energy of 85%, respectively, of vehicle
weight by 2006, rising respectively to 85% and
95% by 2015. A law to implement the directive
came into effect in all member states including
Bulgaria, Romania that joined the European
Union in January 2007. Currently, there are
uncertainties surrounding the implementation of
the applicable regulations in different European
Union member states, particularly regarding
manufacturer responsibilities and resultant
expenses that may be incurred.
In addition, under this directive member
states must take measures to ensure that
car manufacturers, distributors and other
auto-related economic operators establish
adequate used vehicle collection and treatment
facilities and to ensure that hazardous materials
and recyclable parts are removed from vehicles
prior to shredding. This directive impacts Toyota
ʼ
s
vehicles sold in the European Union and Toyota
is introducing vehicles that are in compliance
with such measures taken by the member states
pursuant to the directive.
Based on the legislation that has been
enacted to date, Toyota has provided for its
estimated liability related to covered vehicles in
existence as of March 31, 2012. Depending on
the legislation that will be enacted subject to
equivalent to approximately 10% of material costs
from a supplier which is an affiliated company.
The parent company has a concentration
of labor supply in employees working under
collective bargaining agreements and a
substantial portion of these employees are
working under the agreement that will expire on
December 31, 2014.
Other Proceedings
Environmental Matters and Others
Segment data: 24
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
ʼ
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 and
equipment leasing operations to assist in the
merchandising of the parent company and its
affiliate companies products as well as other
products. The All Other segment includes the
design, manufacturing and sales of housing,
telecommunications and other business.
The following tables present certain
information regarding Toyota
ʼ
s industry segments
and operations by geographic areas and overseas
revenues by destination as of and for the years
ended March 31, 2010, 2011 and 2012.
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