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Toyota Global Vision President’s Message Launching a New Structure Special Feature Review of Operations
Consolidated Performance
Highlights
Management and
Corporate Information Investor InformationFinancial Section
Page 98
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ContentsSearchPrint
ANNUAL REPORT 2013
Pension and severance plans
Upon terminations of employment, employees of
the parent company and subsidiaries in Japan are
entitled, under the retirement plans of each compa-
ny, to lump-sum indemnities or pension payments,
based on current rates of pay and lengths of service
or the number of “points” mainly determined by
those. Under normal circumstances, the minimum
payment prior to retirement age is an amount based
on voluntary retirement. Employees receive addi-
tional benefi ts on involuntary retirement, including
retirement at the age limit.
Effective October 1, 2004, the parent company
amended its retirement plan to introduce a “point”
based retirement benefi t plan. Under the new plan,
employees are entitled to lump-sum or pension
payments determined based on accumulated
“points” vested in each year of service.
There are three types of “points” that vest in each
year of service consisting of “service period points”
which are attributed to the length of service, “job
title points” which are attributed to the job title of
each employee, and “performance points” which
are attributed to the annual performance evaluation
of each employee. Under normal circumstances,
the minimum payment prior to retirement age is an
amount refl ecting an adjustment rate applied to
represent voluntary retirement. Employees receive
additional benefi ts upon involuntary retirement,
including retirement at the age limit.
Effective October 1, 2005, the parent company
partly amended its retirement plan and introduced
the quasi cash-balance plan under which benefi ts
are determined based on the variable-interest cred-
iting rate rather than the fi xed-interest crediting rate
as was in the pre-amended plan.
The parent company and most subsidiaries in
Japan have contributory funded defi ned benefi t
pension plans, which are pursuant to the Corporate
Defi ned Benefi t Pension Plan Law (CDBPPL). The
contributions to the plans are funded with several
fi nancial institutions in accordance with the applica-
ble laws and regulations. These pension plan assets
consist principally of common stocks, government
bonds and insurance contracts.
Most foreign subsidiaries have pension plans or
severance indemnity plans covering substantially all
of their employees under which the cost of benefi ts
are currently invested or accrued. The benefi ts for
these plans are based primarily on lengths of ser-
vice and current rates of pay.
Toyota uses a March 31 measurement date for its
benefi t plans.
19. Employee benefi t plans Information regarding Toyota’s defi ned benefi t plans is as follows:
Japanese plans
Yen in millions U.S. dollars in millions
March 31, March 31,
2012 2013 2013
Change in benefi t obligation:
Benefi t obligation at beginning of year ¥1,362,053 ¥1,480,387 $15,740
Service cost 57,241 60,261 641
Interest cost 30,660 27,804 296
Plan participants’ contributions 834 918 10
Plan amendments 632 (3,462) (37)
Net actuarial loss 67,098 90,667 964
Acquisition and other 27,435 (776) (8)
Benefi ts paid (65,566) (61,388) (653)
Benefi t obligation at end of year 1,480,387 1,594,411 16,953
Change in plan assets:
Fair value of plan assets at beginning of year 885,741 927,545 9,862
Actual return on plan assets 1,493 145,141 1,543
Acquisition and other 27,947 (264) (3)
Employer contributions 50,423 53,906 573
Plan participants’ contributions 834 918 10
Benefi ts paid (38,893) (36,988) (393)
Fair value of plan assets at end of year 927,545 1,090,258 11,592
Funded status ¥ 552,842 ¥ 504,153 $ 5,361
Amounts recognized in the consolidated balance sheets as of March 31, 2012 and 2013 are comprised of
the following:
Yen in millions U.S. dollars in millions
March 31, March 31,
2012 2013 2013
Accrued expenses (Accrued pension and severance costs) ¥ 19,553 ¥ 25,160 $ 268
Accrued pension and severance costs 553,096 582,491 6,193
Investments and other assets—
Other (Prepaid pension and severance costs) (19,807) (103,498) (1,100)
Net amount recognized ¥552,842 ¥504,153 $5,361
Notes to Consolidated Financial Statements
Selected Financial Summary (U.S. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Consolidated Financial Statements Notes to Consolidated Financial Statements [21 of 44]
Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm