No. 1-7628
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF February 2012
COMMISSION FILE NUMBER: 1-07628
HONDA GIKEN KOGYO KABUSHIKI KAISHA
(Name of registrant)
HONDA MOTOR CO., LTD.
(Translation of registrants name into English)
1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo 107-8556, Japan
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Honda Motor Co., Ltd. filed its consolidated financial statements for the fiscal three months ended December 31, 2011 with Financial Services Agency in Japan.
On February 16, 2012, Honda Siel Cars India Ltd. announced that it has resumed normal production with two shift operations from February 15, 2012
The Board of Directors of Honda Motor Co., Ltd. (the Company), at its meeting held on February 21, 2012 has decided on changes of Operating Officers as of April 1, 2012 and has decided a plan for changes to its management as of late June 2012. Those changes as of late June 2012 are subject to approval at the General Meeting of Shareholders of the Company scheduled to be held in late June 2012 and/or decision at the meeting of the Board of Directors to be held immediately thereafter.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
HONDA GIKEN KOGYO KABUSHIKI KAISHA (HONDA MOTOR CO., LTD.) |
/s/ Fumihiko Ike |
Fumihiko Ike |
Senior Managing Officer and Director |
Chief Financial Officer |
Honda Motor Co., Ltd. |
Date: March 9, 2012
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Consolidated Financial Statements
December 31, 2011
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 2011 and December 31, 2011
Yen (millions) | ||||||||
Assets | March 31, 2011 |
December 31, 2011 |
||||||
audited | unaudited | |||||||
Current assets: |
||||||||
Cash and cash equivalents |
¥ | 1,279,024 | ¥ | 1,142,719 | ||||
Trade accounts and notes receivable, net of allowance for doubtful accounts of ¥7,904 million at March 31, 2011 and ¥6,706 million at December 31, 2011 (notes 3 and 7) |
787,691 | 605,522 | ||||||
Finance subsidiaries-receivables, net (notes 2, 3, 4 and 7) |
1,131,068 | 1,048,114 | ||||||
Inventories (notes 5 and 7) |
899,813 | 882,931 | ||||||
Deferred income taxes (note 8) |
202,291 | 194,277 | ||||||
Other current assets (notes 3, 6, 7 and 11) |
390,160 | 335,796 | ||||||
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|
|
|
|||||
Total current assets |
4,690,047 | 4,209,359 | ||||||
|
|
|
|
|||||
Finance subsidiaries-receivables, net (notes 2, 3, 4 and 7) |
2,348,913 | 2,234,563 | ||||||
Investments and advances: |
||||||||
Investments in and advances to affiliates |
440,026 | 456,666 | ||||||
Other, including marketable equity securities (notes 3, 4 and 6) |
199,906 | 155,924 | ||||||
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|
|
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Total investments and advances |
639,932 | 612,590 | ||||||
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|
|
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Property on operating leases: |
||||||||
Vehicles |
1,645,517 | 1,630,150 | ||||||
Less accumulated depreciation |
287,885 | 277,034 | ||||||
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|
|
|
|||||
Net property on operating leases |
1,357,632 | 1,353,116 | ||||||
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|
|
|
|||||
Property, plant and equipment, at cost (note 7): |
||||||||
Land |
483,654 | 477,697 | ||||||
Buildings |
1,473,067 | 1,442,417 | ||||||
Machinery and equipment |
3,166,353 | 3,089,143 | ||||||
Construction in progress |
202,186 | 207,583 | ||||||
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|
|
|||||
5,325,260 | 5,216,840 | |||||||
Less accumulated depreciation and amortization |
3,385,904 | 3,369,151 | ||||||
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|
|
|||||
Net property, plant and equipment |
1,939,356 | 1,847,689 | ||||||
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|
|
|||||
Other assets, net of allowance for doubtful accounts of ¥23,275 million at March 31, 2011 and ¥23,095 million at December 31, 2011 (notes 3, 4, 8 and 11) |
594,994 | 624,979 | ||||||
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|
|
|
|||||
Total assets |
¥ | 11,570,874 | ¥ | 10,882,296 | ||||
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|
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 2011 and December 31, 2011
Yen (millions) | ||||||||
Liabilities and Equity | March 31, 2011 |
December 31, 2011 |
||||||
audited | unaudited | |||||||
Current liabilities: |
||||||||
Short-term debt (note 4) |
¥ | 1,094,740 | ¥ | 1,019,866 | ||||
Current portion of long-term debt (note 4) |
962,455 | 966,466 | ||||||
Trade payables: |
||||||||
Notes |
25,216 | 24,190 | ||||||
Accounts |
691,520 | 653,315 | ||||||
Accrued expenses (note 12) |
525,540 | 430,591 | ||||||
Income taxes payable |
31,960 | 22,992 | ||||||
Other current liabilities (notes 8 and 11) |
236,761 | 196,218 | ||||||
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|
|
|
|||||
Total current liabilities |
3,568,192 | 3,313,638 | ||||||
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|
|
|||||
Long-term debt, excluding current portion (note 4) |
2,043,240 | 1,849,536 | ||||||
Other liabilities (notes 4, 8 and 12) |
1,376,530 | 1,359,954 | ||||||
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|
|||||
Total liabilities |
6,987,962 | 6,523,128 | ||||||
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|
|||||
Equity: |
||||||||
Honda Motor Co., Ltd. shareholders equity (note 9): |
||||||||
Common stock, authorized 7,086,000,000 shares at March 31, 2011 and at December 31, 2011; issued 1,811,428,430 shares at March 31, 2011 and at December 31, 2011 |
86,067 | 86,067 | ||||||
Capital surplus |
172,529 | 172,529 | ||||||
Legal reserves |
46,330 | 46,843 | ||||||
Retained earnings (note 13(a)) |
5,666,539 | 5,724,811 | ||||||
Accumulated other comprehensive income (loss), net (notes 6 and 11) |
(1,495,380 | ) | (1,758,752 | ) | ||||
Treasury stock, at cost 9,126,716 shares at March 31, 2011 and 9,128,231 shares at December 31, 2011 |
(26,110 | ) | (26,115 | ) | ||||
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|
|
|||||
Total Honda Motor Co., Ltd. shareholders equity |
4,449,975 | 4,245,383 | ||||||
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|
|
|||||
Noncontrolling interests (note 9) |
132,937 | 113,785 | ||||||
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|
|||||
Total equity (note 9) |
4,582,912 | 4,359,168 | ||||||
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|
|||||
Commitments and contingent liabilities (note 12) |
||||||||
Total liabilities and equity |
¥ | 11,570,874 | ¥ | 10,882,296 | ||||
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|
|
See accompanying notes to consolidated financial statements.
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Consolidated Statements of Income
For the nine months ended December 31, 2010 and 2011
Yen (millions) | ||||||||
December 31, 2010 |
December 31, 2011 |
|||||||
unaudited | unaudited | |||||||
Net sales and other operating revenue |
¥ | 6,723,788 | ¥ | 5,543,033 | ||||
Operating costs and expenses: |
||||||||
Cost of sales (note 1(f)) |
4,849,409 | 4,141,925 | ||||||
Selling, general and administrative (notes 1(e) and 1(f)) |
987,045 | 909,418 | ||||||
Research and development |
363,765 | 372,302 | ||||||
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|
|||||
6,200,219 | 5,423,645 | |||||||
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|
|
|||||
Operating income |
523,569 | 119,388 | ||||||
Other income (expenses): |
||||||||
Interest income |
16,836 | 25,119 | ||||||
Interest expense |
(6,264 | ) | (7,509 | ) | ||||
Other, net (notes 6 and 11) |
19,792 | 27,348 | ||||||
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|
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30,364 | 44,958 | |||||||
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|||||
Income before income taxes and equity in income of affiliates |
553,933 | 164,346 | ||||||
Income tax expense (notes 1(d) and 8): |
||||||||
Current |
40,511 | 57,346 | ||||||
Deferred |
117,165 | 29,451 | ||||||
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|
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157,676 | 86,797 | |||||||
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Income before equity in income of affiliates |
396,257 | 77,549 | ||||||
Equity in income of affiliates |
114,742 | 67,111 | ||||||
Net income |
510,999 | 144,660 | ||||||
Less: Net income attributable to noncontrolling interests |
21,465 | 4,772 | ||||||
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|
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Net income attributable to Honda Motor Co., Ltd. |
¥ | 489,534 | ¥ | 139,888 | ||||
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Yen | ||||||||
December 31, 2010 |
December 31, 2011 |
|||||||
Basic net income attributable to Honda Motor Co., Ltd. per common share (note 15): |
¥ | 270.82 | ¥ | 77.62 | ||||
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|
See accompanying notes to consolidated financial statements.
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Consolidated Statements of Income
For the three months ended December 31, 2010 and 2011
Yen (millions) | ||||||||
December 31, 2010 |
December 31, 2011 |
|||||||
unaudited | unaudited | |||||||
Net sales and other operating revenue (note 1(e)) |
¥ | 2,110,414 | ¥ | 1,942,545 | ||||
Operating costs and expenses: |
||||||||
Cost of sales (notes 1(e) and 1(f)) |
1,517,648 | 1,446,474 | ||||||
Selling, general and administrative (notes 1(e) and 1(f)) |
343,003 | 317,354 | ||||||
Research and development |
124,110 | 134,419 | ||||||
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1,984,761 | 1,898,247 | |||||||
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Operating income |
125,653 | 44,298 | ||||||
Other income (expenses): |
||||||||
Interest income |
6,069 | 8,775 | ||||||
Interest expense |
(2,017 | ) | (2,445 | ) | ||||
Other, net (notes 6 and 11) |
1,875 | 7,864 | ||||||
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5,927 | 14,194 | |||||||
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Income before income taxes and equity in income of affiliates |
131,580 | 58,492 | ||||||
Income tax expense (notes 1(d) and 8): |
||||||||
Current |
19,575 | (904 | ) | |||||
Deferred |
67,461 | 34,151 | ||||||
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87,036 | 33,247 | |||||||
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Income before equity in income of affiliates |
44,544 | 25,245 | ||||||
Equity in income of affiliates |
43,443 | 22,911 | ||||||
Net income |
87,987 | 48,156 | ||||||
Less: Net income attributable to noncontrolling interests |
6,869 | 494 | ||||||
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|
|||||
Net income attributable to Honda Motor Co., Ltd. |
¥ | 81,118 | ¥ | 47,662 | ||||
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Yen | ||||||||
December 31, 2010 |
December 31, 2011 |
|||||||
Basic net income attributable to Honda Motor Co., Ltd. per common share (note 15): |
¥ | 45.01 | ¥ | 26.45 | ||||
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|
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See accompanying notes to consolidated financial statements.
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the nine months ended December 31, 2010 and 2011
Yen (millions) | ||||||||
December 31, 2010 |
December 31, 2011 |
|||||||
unaudited | unaudited | |||||||
Cash flows from operating activities: |
||||||||
Net income |
¥ | 510,999 | ¥ | 144,660 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation excluding property on operating leases |
262,251 | 228,448 | ||||||
Depreciation of property on operating leases |
160,036 | 154,054 | ||||||
Deferred income taxes |
117,165 | 29,451 | ||||||
Equity in income of affiliates |
(114,742 | ) | (67,111 | ) | ||||
Dividends from affiliates |
44,156 | 47,261 | ||||||
Provision for credit and lease residual losses on finance subsidiaries-receivables |
11,328 | 7,905 | ||||||
Impairment loss on investments in securities |
673 | 501 | ||||||
Damaged and impairment loss on long-lived assets excluding property on operating leases (note 1(f)) |
534 | 7,654 | ||||||
Loss (gain) on derivative instruments, net |
(26,644 | ) | (27,380 | ) | ||||
Decrease (increase) in assets: |
||||||||
Trade accounts and notes receivable |
73,716 | 123,712 | ||||||
Inventories |
(93,519 | ) | (45,264 | ) | ||||
Other current assets |
18,408 | 57,835 | ||||||
Other assets |
(9,105 | ) | (11,115 | ) | ||||
Increase (decrease) in liabilities: |
||||||||
Trade accounts and notes payable |
(61,340 | ) | 14,023 | |||||
Accrued expenses |
(28,242 | ) | (58,769 | ) | ||||
Income taxes payable |
10,226 | (8,027 | ) | |||||
Other current liabilities |
(3,940 | ) | (28,872 | ) | ||||
Other liabilities |
(81,850 | ) | (22,696 | ) | ||||
Other, net |
(24,480 | ) | (38,309 | ) | ||||
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|
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Net cash provided by operating activities |
765,630 | 507,961 | ||||||
Cash flows from investing activities: |
||||||||
Increase in investments and advances |
(7,432 | ) | (18,363 | ) | ||||
Decrease in investments and advances |
10,759 | 10,458 | ||||||
Payments for purchases of available-for-sale securities |
(199 | ) | | |||||
Proceeds from sales of available-for-sale securities |
2,319 | | ||||||
Payments for purchases of held-to-maturity securities |
(164,145 | ) | (14,624 | ) | ||||
Proceeds from redemptions of held-to-maturity securities |
79,517 | 45,827 | ||||||
Capital expenditures |
(204,193 | ) | (240,522 | ) | ||||
Proceeds from sales of property, plant and equipment |
18,311 | 21,921 | ||||||
Proceeds from insurance recoveries for damaged property, plant and equipment (note 1(f)) |
| 4,944 | ||||||
Acquisitions of finance subsidiaries-receivables |
(1,629,600 | ) | (1,546,337 | ) | ||||
Collections of finance subsidiaries-receivables |
1,567,415 | 1,504,989 | ||||||
Purchases of operating lease assets |
(586,391 | ) | (498,380 | ) | ||||
Proceeds from sales of operating lease assets |
298,308 | 272,504 | ||||||
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Net cash used in investing activities |
(615,331 | ) | (457,583 | ) | ||||
Cash flows from financing activities: |
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Increase (decrease) in short-term debt, net |
127,340 | 5,008 | ||||||
Proceeds from long-term debt |
579,844 | 707,736 | ||||||
Repayments of long-term debt |
(612,441 | ) | (711,590 | ) | ||||
Dividends paid (note 13(a)) |
(65,136 | ) | (81,103 | ) | ||||
Dividends paid to noncontrolling interests |
(15,641 | ) | (15,060 | ) | ||||
Sales (purchases) of treasury stock, net |
(34,794 | ) | (5 | ) | ||||
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Net cash used in financing activities |
(20,828 | ) | (95,014 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
(90,704 | ) | (91,669 | ) | ||||
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Net change in cash and cash equivalents |
38,767 | (136,305 | ) | |||||
Cash and cash equivalents at beginning of the period |
1,119,902 | 1,279,024 | ||||||
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Cash and cash equivalents at end of the period |
¥ | 1,158,669 | ¥ | 1,142,719 | ||||
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See accompanying notes to consolidated financial statements.
1
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(1) General and Summary of Significant Accounting Policies
(a) | Financial Statements |
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). In the opinion of management, all adjustments which are necessary for a fair presentation have been included. The results for interim periods are not necessarily indicative of results which may be expected for any other interim period or for the year. For further information, refer to the March 31, 2011 consolidated financial statements and notes thereto included in Honda Motor Co., Ltd. and Subsidiaries Annual Report for the year ended March 31, 2011. Consolidated financial statements for the year ended March 31, 2011 are derived from the audited consolidated financial statements, while consolidated financial statements for the nine months and the three months ended December 31, 2011 are unaudited.
(b) | Basis of Presenting Consolidated Financial Statements |
The Company and its Japanese 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. GAAP.
(c) | Changes in Accounting Procedures for Consolidated Quarterly Financial Results |
None
(d) | Accounting Policies Specifically Applied for Quarterly Consolidated Financial Statements |
Income taxes
Honda computes interim income tax expense (benefit) by multiplying reasonably estimated annual effective tax rate, which includes the effects of deferred taxes, by year-to-date income before income taxes and equity in income of affiliates for the nine months ended December 31, 2011. If a reliable estimate cannot be made, Honda utilizes the actual year-to-date effective tax rate.
(e) | Out-of-period adjustments |
During the three months ended December 31, 2010, certain overstatements were found in trade accounts and notes receivable, inventories, net sales and other operating revenue, and cost of sales in previously issued consolidated financial statements, pertaining to the Companys inventory management trading activities at a Japanese subsidiary. This Japanese subsidiary temporarily purchases sea food products from seafood companies with the promise that they will buy back such products after certain period, in order to bridge the gap between the purchasing period (the fishing season) and the sales period for sea food products. In the Companys consolidated statements of income for the three months ended December 31, 2010, the Company adjusted net sales and other operating revenue amounted to ¥9,888 million and operating income amounted to ¥280 million overstated in the Companys consolidated statements of income for the six months ended September 30, 2010, in conjunction with the related cumulative loss amounted to ¥14,123 million as of March 31, 2010. As a result, operating income for the nine months and three months ended December 31, 2010, decreased by ¥14,123 million and 14,403 million, respectively. Honda believes that these adjustments are immaterial to the Companys consolidated financial statements or results of operations in prior periods.
2
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(f) | Impact on the Companys consolidated financial position or results of operations of the flood in Thailand |
Since October 2011, Thailand suffered from severe floods, which caused damage to inventories, and machineries and equipments of certain consolidated subsidiaries and affiliates of the Company. Accordingly, production activities in plant facilities at Honda and its affiliates have been affected by floods.
As a result, Honda recognized ¥17,348 million of costs and expenses, of which ¥9,387 million is included in cost of sales and ¥7,961 million is included in selling, general and administrative expenses in the accompanying consolidated statement of income for the three months ended December 31, 2011. These costs and expenses mainly consist of loss on inventories of ¥7,330 million which are included in cost of sales, and loss on damaged property, plant and equipment of ¥7,654 million which is included in selling, general and administrative expenses.
In addition, Honda recognized insurance recoveries of ¥11,838 million which is included in selling, general and administrative expenses in the accompanying consolidated statement of income for the three months ended December 31, 2011. The recognized insurance recovery is limited to the amount of the related incurred losses and Honda will recognize insurance recoveries in excess of the incurred losses when final settlements with insurance companies are reached.
(2) Allowances for Finance Subsidiaries-receivables
Yen (millions) | ||||||||
March 31, 2011 |
December 31, 2011 |
|||||||
Finance subsidiaries-receivables |
||||||||
Allowance for credit losses |
¥ | 24,890 | ¥ | 19,991 | ||||
Allowance for losses on lease residual values |
7,225 | 5,166 |
3
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(3) Credit Quality of Finance Receivables and Allowance for Credit Losses
The finance subsidiaries of the Company provide retail lending and leasing to customers and wholesale financing to dealers primarily to support sales of our products. Honda classifies retail and direct financing lease receivables derived from those services as finance subsidiaries-receivables. Operating leases are classified as property on operating leases. Certain finance receivables related to sales of inventory are included in trade accounts and notes receivable and other assets in the consolidated balance sheets. Receivables on past due operating lease rental payments are included in other current assets in the consolidated balance sheets.
Finance subsidiaries-receivables, net, consisted of the following at March 31, 2011 and December 31, 2011:
Yen (millions) | ||||||||
March 31, 2011 |
December 31, 2011 |
|||||||
Retail |
¥ | 3,368,014 | ¥ | 3,193,835 | ||||
Direct financing lease |
362,136 | 335,940 | ||||||
Wholesale flooring |
267,526 | 186,043 | ||||||
Commercial loans |
34,116 | 36,073 | ||||||
|
|
|
|
|||||
Total finance receivables |
4,031,792 | 3,751,891 | ||||||
Less: |
||||||||
Allowance for credit losses |
28,437 | 23,329 | ||||||
Allowance for losses on lease residual values |
7,225 | 5,166 | ||||||
Unearned interest income and fees |
19,916 | 16,770 | ||||||
|
|
|
|
|||||
3,976,214 | 3,706,626 | |||||||
Less: |
||||||||
Finance receivables included in trade accounts and notes receivable, net |
332,195 | 252,005 | ||||||
Finance receivables included in other assets, net |
164,038 | 171,944 | ||||||
|
|
|
|
|||||
Finance subsidiaries-receivables, net |
3,479,981 | 3,282,677 | ||||||
Less current portion |
1,131,068 | 1,048,114 | ||||||
|
|
|
|
|||||
Noncurrent finance subsidiaries-receivables, net |
¥ | 2,348,913 | ¥ | 2,234,563 | ||||
|
|
|
|
Allowance for Credit Losses
The majority of the credit risk is with consumer financing and to a lesser extent with dealer financing. Credit risk is affected by general economic conditions such as a rise in unemployment rates or declines in used vehicle prices. The finance subsidiaries of the Company estimate losses incurred on retail and direct financing lease receivables and recognize them in the allowance for credit losses. Consumer finance receivables consist of a large number of smaller-balance homogenous loans and leases. The finance subsidiaries of the Company segment these receivables into groups with common characteristics, and estimate collectively the allowance for credit losses on consumer finance receivables by the group. The finance subsidiaries of the Company take into consideration various methodologies when estimating the allowance including vintage loss rate analysis and delinquency roll rate analysis. When performing the vintage loss rate analysis, consumer finance receivables are segregated between retail and direct financing lease, and further segmented into groups with common risk characteristics including collateral type, credit grades and original terms. Loss rates are projected for these pools based on historical rates and adjusted for considerations of emerging trends and changing economic conditions. The roll rate analysis is used primarily by the finance subsidiaries of the Company in North America. This analysis tracks the migration of finance receivables through various stages of delinquency and ultimately to charge-offs. Roll rates are projected based on historical results while also taking into consideration trends and changing economic conditions.
Wholesale receivables are considered to be impaired when it is probable that they will be unable to collect all amounts due according to the original terms of the contract. The finance subsidiaries of the company recognize estimated losses on them in the allowance for credit losses. Credit risk on wholesale receivables is affected primarily by the financial strength of the dealers within the portfolio. Wholesale receivables are evaluated for impairment on an individual dealer basis. Ongoing evaluations of dealerships are performed to determine whether there is evidence of impairment. Factors can include payment performance, overall dealership financial performance, or known difficulties experienced by the dealership.
4
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Honda regularly reviews the adequacy of the allowance for credit losses. The estimates are based on information available as of each reporting date. However actual losses may differ from the original estimates as a result of actual results varying from those assumed in our estimates with inherently uncertain items.
The following table presents the changes of the allowance for credit losses on finance receivables for the nine months ended December 31, 2011.
Yen (millions) | ||||||||||||||||
Retail | Direct financing lease |
Wholesale | Total | |||||||||||||
Allowance for credit losses |
||||||||||||||||
Balance at beginning of the period |
¥ | 25,578 | ¥ | 1,455 | ¥ | 1,404 | ¥ | 28,437 | ||||||||
Provision (reversal) |
6,879 | 118 | (53 | ) | 6,944 | |||||||||||
Charge-offs |
(16,074 | ) | (561 | ) | (71 | ) | (16,706 | ) | ||||||||
Recoveries |
6,404 | 231 | 43 | 6,678 | ||||||||||||
Adjustments from foreign currency translation |
(1,805 | ) | (89 | ) | (130 | ) | (2,024 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance at end of the period |
¥ | 20,982 | ¥ | 1,154 | ¥ | 1,193 | ¥ | 23,329 | ||||||||
|
|
|
|
|
|
|
|
In the finance subsidiaries of the Company in North America, retail and direct financing lease receivables are charged off when they become 120 days past due or earlier if they have been specifically identified as uncollectible. Wholesale receivables are charged off when they have been individually identified as uncollectible. In the finance subsidiaries of the Company in other areas except for North America, finance receivables are charged off when they have been identified as substantially uncollectible according to the internal standards of each subsidiary.
Delinquencies
In the finance subsidiaries of the Company in North America, retail and direct financing lease receivables are considered delinquent if more than 10% of a monthly scheduled payment is contractually past due on a cumulative basis. Wholesale receivables are considered delinquent when any principal payments are past due. In the finance subsidiaries of the Company in other areas except for North America, finance receivables are considered delinquent when any principal payments are past due.
5
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The following tables present an age analysis of past due finance receivables at March 31, 2011 and December 31, 2011.
As of March 31, 2011 | Yen (millions) | |||||||||||||||||||||||
30-59 days past due |
60-89 days past due |
90 days and greater past due |
Total past due |
Current * | Total finance receivables |
|||||||||||||||||||
Retail |
||||||||||||||||||||||||
New auto |
¥ | 14,127 | ¥ | 1,625 | ¥ | 3,191 | ¥ | 18,943 | ¥ | 2,762,373 | ¥ | 2,781,316 | ||||||||||||
Used & certified auto |
5,325 | 591 | 474 | 6,390 | 421,605 | 427,995 | ||||||||||||||||||
Others |
1,666 | 468 | 895 | 3,029 | 155,674 | 158,703 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total retail |
21,118 | 2,684 | 4,560 | 28,362 | 3,339,652 | 3,368,014 | ||||||||||||||||||
Direct financing lease |
1,375 | 179 | 584 | 2,138 | 359,998 | 362,136 | ||||||||||||||||||
Wholesale |
||||||||||||||||||||||||
Wholesale flooring |
125 | 38 | 273 | 436 | 267,090 | 267,526 | ||||||||||||||||||
Commercial loans |
| | | | 34,116 | 34,116 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total wholesale |
125 | 38 | 273 | 436 | 301,206 | 301,642 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total finance receivables |
¥ | 22,618 | ¥ | 2,901 | ¥ | 5,417 | ¥ | 30,936 | ¥ | 4,000,856 | ¥ | 4,031,792 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2011 | Yen (millions) | |||||||||||||||||||||||
30-59 days past due |
60-89 days past due |
90 days and greater past due |
Total past due |
Current * | Total finance receivables |
|||||||||||||||||||
Retail |
||||||||||||||||||||||||
New auto |
¥ | 15,058 | ¥ | 2,512 | ¥ | 3,312 | ¥ | 20,882 | ¥ | 2,630,729 | ¥ | 2,651,611 | ||||||||||||
Used & certified auto |
6,876 | 1,045 | 414 | 8,335 | 395,871 | 404,206 | ||||||||||||||||||
Others |
1,744 | 736 | 992 | 3,472 | 134,546 | 138,018 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total retail |
23,678 | 4,293 | 4,718 | 32,689 | 3,161,146 | 3,193,835 | ||||||||||||||||||
Direct financing lease |
1,292 | 313 | 788 | 2,393 | 333,547 | 335,940 | ||||||||||||||||||
Wholesale |
||||||||||||||||||||||||
Wholesale flooring |
41 | 23 | 305 | 369 | 185,674 | 186,043 | ||||||||||||||||||
Commercial loans |
| | | | 36,073 | 36,073 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total wholesale |
41 | 23 | 305 | 369 | 221,747 | 222,116 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total finance receivables |
¥ | 25,011 | ¥ | 4,629 | ¥ | 5,811 | ¥ | 35,451 | ¥ | 3,716,440 | ¥ | 3,751,891 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
* | Includes recorded investment of finance receivables that are less than 30 days past due. |
Credit Quality Indicators
The collection experience of consumer finance receivables provides an indication of the credit quality of consumer finance receivables. The likelihood of accounts charging off becomes significantly higher once an account becomes 60 days delinquent. The table below segments the Companys portfolio of consumer finance receivables between groups the Company considers to be performing and nonperforming. Accounts that are delinquent for 60 days or greater are included in the nonperforming group and all other accounts are considered to be performing.
6
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The following tables present the balances of consumer finance receivables by the credit quality indicator at March 31, 2011 and December 31, 2011.
As of March 31, 2011 | Yen (millions) | |||||||||||
Performing | Nonperforming | Total consumer finance receivables |
||||||||||
Retail |
||||||||||||
New auto |
¥ | 2,776,500 | ¥ | 4,816 | ¥ | 2,781,316 | ||||||
Used & certified auto |
426,930 | 1,065 | 427,995 | |||||||||
Others |
157,340 | 1,363 | 158,703 | |||||||||
|
|
|
|
|
|
|||||||
Total retail |
3,360,770 | 7,244 | 3,368,014 | |||||||||
Direct financing lease |
361,373 | 763 | 362,136 | |||||||||
|
|
|
|
|
|
|||||||
Total |
¥ | 3,722,143 | ¥ | 8,007 | ¥ | 3,730,150 | ||||||
|
|
|
|
|
|
|||||||
As of December 31, 2011 | Yen (millions) | |||||||||||
Performing | Nonperforming | Total consumer finance receivables |
||||||||||
Retail |
||||||||||||
New auto |
¥ | 2,645,787 | ¥ | 5,824 | ¥ | 2,651,611 | ||||||
Used & certified auto |
402,747 | 1,459 | 404,206 | |||||||||
Others |
136,290 | 1,728 | 138,018 | |||||||||
|
|
|
|
|
|
|||||||
Total retail |
3,184,824 | 9,011 | 3,193,835 | |||||||||
Direct financing lease |
334,839 | 1,101 | 335,940 | |||||||||
|
|
|
|
|
|
|||||||
Total |
¥ | 3,519,663 | ¥ | 10,112 | ¥ | 3,529,775 | ||||||
|
|
|
|
|
|
A credit quality indicator for wholesale receivables is the internal risk ratings for the dealerships. Dealerships are assigned an internal risk rating based primarily on their financial condition. At a minimum, risk ratings for dealerships are updated annually and more frequently for dealerships with weaker risk ratings. The table below presents outstanding wholesale receivables balances by the internal risk rating group. Group A includes the loans of dealerships with the highest credit quality characteristics in the strongest risk rating tier. Group B includes the loans of all remaining dealers and are considered to have weaker credit quality characteristics. Although the likelihood of losses can be higher for dealerships in Group B, the overall risk of losses is not considered to be significant.
7
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The following tables present the balance of wholesale receivables by credit quality indicators at March 31, 2011 and December 31, 2011.
As of March 31, 2011 | Yen (millions) | |||||||||||
Group A | Group B | Total | ||||||||||
Wholesale |
||||||||||||
Wholesale flooring |
¥ | 144,118 | ¥ | 123,408 | ¥ | 267,526 | ||||||
Commercial loans |
14,024 | 20,092 | 34,116 | |||||||||
|
|
|
|
|
|
|||||||
Total |
¥ | 158,142 | ¥ | 143,500 | ¥ | 301,642 | ||||||
|
|
|
|
|
|
|||||||
As of December 31, 2011 | Yen (millions) | |||||||||||
Group A | Group B | Total | ||||||||||
Wholesale |
||||||||||||
Wholesale flooring |
¥ | 107,497 | ¥ | 78,546 | ¥ | 186,043 | ||||||
Commercial loans |
25,144 | 10,929 | 36,073 | |||||||||
|
|
|
|
|
|
|||||||
Total |
¥ | 132,641 | ¥ | 89,475 | ¥ | 222,116 | ||||||
|
|
|
|
|
|
Other Finance Receivables
Except for the finance subsidiaries-receivables, the other finance receivables about which credit quality information and the allowance for credit losses are required to be disclosed by the FASB Accounting Standards Codification (ASC) 310 Receivables of ¥59,520 million and ¥61,206 million were included in other current assets, investments and advances-other and other assets in the consolidated balance sheets at March 31, 2011 and December 31, 2011, respectively. Honda estimates individually the collectibility of the other finance receivables based on the financial condition of the debtor. The impaired finance receivables amounted to ¥19,574 million and ¥20,296 million at March 31, 2011 and December 31, 2011, respectively, for which the allowance for credit losses were ¥19,574 million and ¥20,053 million at March 31, 2011 and December 31, 2011, respectively.
Regarding the other finance receivables which are not impaired, there are no past due receivables.
(4) Variable Interest Entities
Honda considers its involvement with a variable interest entity (VIE) under the FASB Accounting Standards Codification (ASC) 810 Consolidation. This standard prescribes that the reporting entity shall consolidate a VIE as its primary beneficiary when it deemed to have a controlling financial interest in a VIE, meeting both of the following characteristics:
(a) | The power to direct the activities of a VIE that most significantly impact the VIEs economic performance. |
(b) | The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. |
The finance subsidiaries of the Company periodically securitize for liquidity and funding purposes and transfer finance receivables to the trust which is newly established to issue asset-backed securities. The finance subsidiaries of the Company deemed to have the power to direct the activities of these trusts that most significantly impact the trusts economic performance, as they retain servicing rights in all securitizations, and manage delinquencies and defaults of the underlying receivables. Furthermore, the finance subsidiaries of the Company deemed to have the obligation to absorb losses of these trusts that could potentially be significant to these trusts, as they would absorb the majority of the expected losses of these trusts by retaining certain subordinated interests of these trusts. Therefore, the Company has consolidated these trusts, as it deemed to have controlling financial interests in these trusts.
8
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The following table presents the balances of the assets and liabilities of consolidated VIEs at March 31, 2011 and December 31, 2011.
Yen (millions) | ||||||||
March 31, 2011 |
December 31, 2011 |
|||||||
Finance subsidiaries-receivables, net |
¥ | 500,208 | ¥ | 487,807 | ||||
Restricted cash *1 |
7,931 | 13,612 | ||||||
Other assets |
1,688 | 1,450 | ||||||
|
|
|
|
|||||
Total assets |
¥ | 509,827 | ¥ | 502,869 | ||||
|
|
|
|
|||||
Secured debt *2 |
¥ | 495,695 | ¥ | 480,928 | ||||
Other liabilities |
532 | 253 | ||||||
|
|
|
|
|||||
Total liabilities |
¥ | 496,227 | ¥ | 481,181 | ||||
|
|
|
|
*1 | Restricted cash as collateral for the payment of the related secured debt obligation was included in Investments and advances-Other on the consolidated balance sheets. |
*2 | Secured debt was included in short-term and long-term debt on the consolidated balance sheets. |
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 a significant variable interest but is not the primary beneficiary as of March 31, 2011 and December 31, 2011.
(5) Inventories
Inventories at March 31, 2011 and December 31, 2011 are summarized as follows:
Yen (millions) | ||||||||
March
31, 2011 |
December
31, 2011 |
|||||||
Finished goods |
¥ | 531,071 | ¥ | 462,270 | ||||
Work in process |
49,606 | 45,813 | ||||||
Raw materials |
319,136 | 374,848 | ||||||
|
|
|
|
|||||
¥ | 899,813 | ¥ | 882,931 | |||||
|
|
|
|
9
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(6) Investments and Advances-Other
Investments and advances at March 31, 2011 and December 31, 2011 consist of the following:
Yen (millions) | ||||||||
March 31, 2011 |
December 31, 2011 |
|||||||
Current |
||||||||
Corporate debt securities |
¥ | 331 | ¥ | 543 | ||||
U.S. government and agency debt securities |
| 777 | ||||||
Advances |
790 | 914 | ||||||
Certificates of deposit |
1,366 | 1,468 | ||||||
|
|
|
|
|||||
¥ | 2,487 | ¥ | 3,702 | |||||
|
|
|
|
Investments and advances due within one year are included in other current assets.
Yen (millions) | ||||||||
March 31, 2011 |
December 31, 2011 |
|||||||
Noncurrent |
||||||||
Auction rate securities (non-marketable) |
¥ | 6,948 | ¥ | 6,418 | ||||
Marketable equity securities |
92,421 | 80,915 | ||||||
Government bonds |
1,999 | 1,999 | ||||||
U.S. government and agency debt securities |
37,029 | 2,549 | ||||||
Non-marketable equity securities accounted for under the cost method |
||||||||
Non-marketable preferred stocks |
969 | 969 | ||||||
Other |
12,178 | 10,752 | ||||||
Guaranty deposits |
23,735 | 22,726 | ||||||
Advances |
1,159 | 1,117 | ||||||
Other |
23,468 | 28,479 | ||||||
|
|
|
|
|||||
¥ | 199,906 | ¥ | 155,924 | |||||
|
|
|
|
Certain information with respect to available-for-sale securities and held-to-maturity securities at March 31, 2011 and December 31, 2011 is summarized below:
Yen (millions) | ||||||||
March 31, 2011 |
December 31, 2011 |
|||||||
Available-for-sale |
||||||||
Cost |
¥ | 46,017 | ¥ | 44,324 | ||||
Fair value |
99,369 | 87,333 | ||||||
Gross unrealized gains |
56,019 | 46,897 | ||||||
Gross unrealized losses |
2,667 | 3,888 | ||||||
Held-to-maturity |
||||||||
Amortized cost |
¥ | 40,725 | ¥ | 7,336 | ||||
Fair value |
40,649 | 7,420 | ||||||
Gross unrealized gains |
91 | 85 | ||||||
Gross unrealized losses |
167 | 1 |
10
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Maturities of debt securities classified as held-to-maturity at December 31, 2011 are as follows:
Yen (millions) | ||||
Due within one year |
¥ | 2,788 | ||
Due after one year through five years |
4,548 | |||
Due after five years through ten years |
| |||
|
|
|||
Total |
¥ | 7,336 | ||
|
|
There was no amount of significant realized gains and losses from available-for-sale securities included in other income (expenses) other, net for the nine months and the three months ended December 31, 2010 and 2011.
Gross unrealized losses on available-for-sale securities and held-to-maturity 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 March 31, 2011 and December 31, 2011 are as follows:
Yen (millions) | ||||||||||||||||
March 31, 2011 | December 31, 2011 | |||||||||||||||
Fair value | Unrealized losses |
Fair value | Unrealized losses |
|||||||||||||
Available-for-sale |
||||||||||||||||
Less than 12 months |
¥ | 9,054 | ¥ | 1,516 | ¥ | 7,600 | ¥ | 2,939 | ||||||||
12 months or longer |
7,759 | 1,151 | 7,032 | 949 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
¥ | 16,813 | ¥ | 2,667 | ¥ | 14,632 | ¥ | 3,888 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Held-to-maturity |
||||||||||||||||
Less than 12 months |
¥ | 31,042 | ¥ | 167 | ¥ | 605 | ¥ | 1 | ||||||||
12 months or longer |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
¥ | 31,042 | ¥ | 167 | ¥ | 605 | ¥ | 1 | |||||||||
|
|
|
|
|
|
|
|
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 the issuer operates, degree and period of the decline in fair value and other relevant factors.
11
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(7) Pledged Assets
Pledged assets at March 31, 2011 and December 31, 2011 are as follows:
Yen (millions) | ||||||||
March 31, 2011 |
December 31, 2011 |
|||||||
Trade accounts and notes receivable |
¥ | 13,808 | ¥ | 7,508 | ||||
Inventories |
11,691 | 3,660 | ||||||
Other current assets |
5,337 | | ||||||
Property, plant and equipment |
24,548 | 21,013 | ||||||
Finance subsidiaries-receivables |
504,587 | 493,545 |
(8) Income taxes
On November 30, 2011, the National Diet of Japan approved the laws for amendments to previous income tax laws.
Upon the change in the laws, the statutory income tax rate in Japan will be changed to approximately 38% for fiscal years beginning on or after April 1, 2012, and to approximately 35% for fiscal years beginning on or after April 1, 2015. Thus, the Company and its Japanese subsidiaries measured deferred tax assets and liabilities based on the tax rates to be applied in the fiscal years in which temporary differences are expected to be recovered or settled.
As a result, net of deferred tax assets decreased ¥16,072 million as of December 31, 2011, and income tax expenses increased ¥16,072 million for the nine months and the three months ended December 31, 2011.
Due primarily to the impact of this tax rate change, the effective tax rates of Honda for the nine months and the three months ended December 31, 2011 differ from Japanese (or the Companys) statutory income tax rate, which is 40% for the fiscal year ending March 31, 2012.
12
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(9) Equity
The changes in equity for the nine months and three months ended December 31, 2010 and 2011 are as follows:
For the nine months ended December 31, 2010
Yen (millions) | ||||||||||||
Honda Motor Co., Ltd. shareholders equity |
Noncontrolling interests |
Total equity |
||||||||||
Balance at March 31, 2010 |
¥ | 4,328,640 | ¥ | 127,790 | ¥ | 4,456,430 | ||||||
Cumulative effect of adjustments resulting from the adoption of new accounting standards on variable interest entities, net of tax |
1,432 | | 1,432 | |||||||||
|
|
|
|
|
|
|||||||
Adjusted balance at March 31, 2010 |
¥ | 4,330,072 | ¥ | 127,790 | ¥ | 4,457,862 | ||||||
|
|
|
|
|
|
|||||||
Dividends paid to Honda Motor Co., Ltd. shareholders |
(65,136 | ) | | (65,136 | ) | |||||||
Dividends paid to noncontrolling interests |
| (15,641 | ) | (15,641 | ) | |||||||
Capital transactions and others |
| 164 | 164 | |||||||||
Comprehensive income (loss): |
||||||||||||
Net income |
489,534 | 21,465 | 510,999 | |||||||||
Other comprehensive income (loss), net of tax |
||||||||||||
Adjustments from foreign currency translation |
(339,624 | ) | (7,727 | ) | (347,351 | ) | ||||||
Unrealized gains (losses) on available-for-sale securities, net |
1,655 | (13 | ) | 1,642 | ||||||||
Unrealized gains (losses) on derivative instruments, net |
621 | | 621 | |||||||||
Pension and other postretirement benefits adjustments |
6,158 | 112 | 6,270 | |||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income (loss) |
158,344 | 13,837 | 172,181 | |||||||||
|
|
|
|
|
|
|||||||
Purchase of treasury stock |
(34,796 | ) | | (34,796 | ) | |||||||
Reissuance of treasury stock |
2 | | 2 | |||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2010 |
¥ | 4,388,486 | ¥ | 126,150 | ¥ | 4,514,636 | ||||||
|
|
|
|
|
|
During the six months ended September 30, 2010, the Company retired 23,400 thousand shares of its treasury stock at a cost of ¥80,417 million by offsetting with unappropriated retained earnings of ¥ 80,417 million based on the resolution of the board of directors. It had no effect on the total Honda Motor Co., Ltd. shareholders equity.
13
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
For the nine months ended December 31, 2011
Yen (millions) | ||||||||||||
Honda Motor Co., Ltd. shareholders equity |
Noncontrolling interests |
Total equity |
||||||||||
Balance at March 31, 2011 |
¥ | 4,449,975 | ¥ | 132,937 | ¥ | 4,582,912 | ||||||
|
|
|
|
|
|
|||||||
Dividends paid to Honda Motor Co., Ltd. shareholders |
(81,103 | ) | | (81,103 | ) | |||||||
Dividends paid to noncontrolling interests |
| (15,060 | ) | (15,060 | ) | |||||||
Capital transactions and others |
| (2,653 | ) | (2,653 | ) | |||||||
Comprehensive income (loss): |
||||||||||||
Net income |
139,888 | 4,772 | 144,660 | |||||||||
Other comprehensive income (loss), net of tax |
||||||||||||
Adjustments from foreign currency translation |
(262,426 | ) | (6,251 | ) | (268,677 | ) | ||||||
Unrealized gains (losses) on available-for-sale securities, net |
(6,218 | ) | (56 | ) | (6,274 | ) | ||||||
Unrealized gains (losses) on derivative instruments, net |
201 | | 201 | |||||||||
Pension and other postretirement benefits adjustments |
5,071 | 96 | 5,167 | |||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income (loss) |
(123,484 | ) | (1,439 | ) | (124,923 | ) | ||||||
|
|
|
|
|
|
|||||||
Purchase of treasury stock |
(5 | ) | | (5 | ) | |||||||
Reissuance of treasury stock |
| | | |||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2011 |
¥ | 4,245,383 | ¥ | 113,785 | ¥ | 4,359,168 | ||||||
|
|
|
|
|
|
14
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
For the three months ended December 31, 2010
Yen (millions) | ||||||||||||
Honda Motor Co., Ltd. shareholders equity |
Noncontrolling interests |
Total equity |
||||||||||
Balance at September 30, 2010 |
¥ | 4,378,376 | ¥ | 124,333 | ¥ | 4,502,709 | ||||||
|
|
|
|
|
|
|||||||
Dividends paid to Honda Motor Co., Ltd. shareholders |
(21,628 | ) | | (21,628 | ) | |||||||
Dividends paid to noncontrolling interests |
| (2,377 | ) | (2,377 | ) | |||||||
Capital transactions and others |
| | | |||||||||
Comprehensive income (loss): |
||||||||||||
Net income |
81,118 | 6,869 | 87,987 | |||||||||
Other comprehensive income (loss), net of tax |
||||||||||||
Adjustments from foreign currency translation |
(59,055 | ) | (2,722 | ) | (61,777 | ) | ||||||
Unrealized gains (losses) on available-for-sale securities, net |
7,471 | 10 | 7,481 | |||||||||
Unrealized gains (losses) on derivative instruments, net |
242 | | 242 | |||||||||
Pension and other postretirement benefits adjustments |
1,970 | 37 | 2,007 | |||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income (loss) |
31,746 | 4,194 | 35,940 | |||||||||
|
|
|
|
|
|
|||||||
Purchase of treasury stock |
(9 | ) | | (9 | ) | |||||||
Reissuance of treasury stock |
1 | | 1 | |||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2010 |
¥ | 4,388,486 | ¥ | 126,150 | ¥ | 4,514,636 | ||||||
|
|
|
|
|
|
15
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
For the three months ended December 31, 2011
Yen (millions) | ||||||||||||
Honda Motor Co., Ltd. shareholders equity |
Noncontrolling interests |
Total equity |
||||||||||
Balance at September 30, 2011 |
¥ | 4,297,278 | ¥ | 117,570 | ¥ | 4,414,848 | ||||||
|
|
|
|
|
|
|||||||
Dividends paid to Honda Motor Co., Ltd. shareholders |
(27,034 | ) | | (27,034 | ) | |||||||
Dividends paid to noncontrolling interests |
| (625 | ) | (625 | ) | |||||||
Capital transactions and others |
| (2,653 | ) | (2,653 | ) | |||||||
Comprehensive income (loss): |
||||||||||||
Net income |
47,662 | 494 | 48,156 | |||||||||
Other comprehensive income (loss), net of tax |
||||||||||||
Adjustments from foreign currency translation |
(73,248 | ) | (1,032 | ) | (74,280 | ) | ||||||
Unrealized gains (losses) on available-for-sale securities, net |
(962 | ) | (1 | ) | (963 | ) | ||||||
Unrealized gains (losses) on derivative instruments, net |
(1 | ) | | (1 | ) | |||||||
Pension and other postretirement benefits adjustments |
1,689 | 32 | 1,721 | |||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income (loss) |
(24,860 | ) | (507 | ) | (25,367 | ) | ||||||
|
|
|
|
|
|
|||||||
Purchase of treasury stock |
(1 | ) | | (1 | ) | |||||||
Reissuance of treasury stock |
| | | |||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2011 |
¥ | 4,245,383 | ¥ | 113,785 | ¥ | 4,359,168 | ||||||
|
|
|
|
|
|
16
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(10) Fair Value Measurement
In accordance with FASB Accounting Standards Codification (ASC) 820 Fair Value Measurements and Disclosures, Honda uses a three-level hierarchy when measuring fair value. The following is a description of the three hierarchy levels:
Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date | |
Level 2 | Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly | |
Level 3 | 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 tables present the assets and liabilities measured at fair value on a recurring basis as of March 31, 2011 and December 31, 2011.
As of March 31, 2011 | Yen (millions) | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Gross fair value |
Netting adjustment |
Net amount |
|||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Derivative instruments |
||||||||||||||||||||||||
Foreign exchange instruments (note 11) |
¥ | | ¥ | 57,880 | ¥ | | ¥ | 57,880 | ¥ | | ¥ | | ||||||||||||
Interest rate instruments (note 11) |
| 29,759 | 154 | 29,913 | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total derivative instruments |
| 87,639 | 154 | 87,793 | (26,641 | ) | 61,152 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Available-for-sale securities |
||||||||||||||||||||||||
Marketable equity securities |
92,421 | | | 92,421 | | 92,421 | ||||||||||||||||||
Auction rate securities |
| | 6,948 | 6,948 | | 6,948 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total available-for-sale securities |
92,421 | | 6,948 | 99,369 | | 99,369 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
¥ | 92,421 | ¥ | 87,639 | ¥ | 7,102 | ¥ | 187,162 | ¥ | (26,641 | ) | ¥ | 160,521 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Liabilities: |
||||||||||||||||||||||||
Derivative instruments |
||||||||||||||||||||||||
Foreign exchange instruments (note 11) |
¥ | | ¥ | (15,712 | ) | ¥ | | ¥ | (15,712 | ) | ¥ | | ¥ | | ||||||||||
Interest rate instruments (note 11) |
| (32,435 | ) | (155 | ) | (32,590 | ) | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total derivative instruments |
| (48,147 | ) | (155 | ) | (48,302 | ) | 26,641 | (21,661 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
¥ | | ¥ | (48,147 | ) | ¥ | (155 | ) | ¥ | (48,302 | ) | ¥ | 26,641 | ¥ | (21,661 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
17
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
As of December 31, 2011 | Yen (millions) | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Gross fair value |
Netting adjustment |
Net amount |
|||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Derivative instruments |
||||||||||||||||||||||||
Foreign exchange instruments (note 11) |
¥ | | ¥ | 56,655 | ¥ | | ¥ | 56,655 | ¥ | | ¥ | | ||||||||||||
Interest rate instruments (note 11) |
| 33,478 | 13 | 33,491 | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total derivative instruments |
| 90,133 | 13 | 90,146 | (25,735 | ) | 64,411 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Available-for-sale securities |
||||||||||||||||||||||||
Marketable equity securities |
80,915 | | | 80,915 | | 80,915 | ||||||||||||||||||
Auction rate securities |
| | 6,418 | 6,418 | | 6,418 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total available-for-sale securities |
80,915 | | 6,418 | 87,333 | | 87,333 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
¥ | 80,915 | ¥ | 90,133 | ¥ | 6,431 | ¥ | 177,479 | ¥ | (25,735 | ) | ¥ | 151,744 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Liabilities: |
||||||||||||||||||||||||
Derivative instruments |
||||||||||||||||||||||||
Foreign exchange instruments (note 11) |
¥ | | ¥ | (21,675 | ) | ¥ | | ¥ | (21,675 | ) | ¥ | | ¥ | | ||||||||||
Interest rate instruments (note 11) |
| (20,616 | ) | (13 | ) | (20,629 | ) | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total derivative instruments |
| (42,291 | ) | (13 | ) | (42,304 | ) | 25,735 | (16,569 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
¥ | | ¥ | (42,291 | ) | ¥ | (13 | ) | ¥ | (42,304 | ) | ¥ | 25,735 | ¥ | (16,569 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Derivative asset and liability positions are presented net by counterparty on the consolidated balance sheets when valid master netting agreement exists and the other conditions set out in the FASB Accounting Standards Codification (ASC) 210-20 Balance Sheet-Offsetting are met.
18
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The following tables present a reconciliation during the nine months ended December 31, 2010 and 2011 for all Level 3 assets and liabilities measured at fair value on a recurring basis.
For the nine months ended December 31, 2010
Yen (millions) | ||||||||||||||||
Retained interests in securitizations |
Interest rate instruments (note 11) |
Auction rate securities |
Total | |||||||||||||
Balance at beginning of the year |
¥ | 27,555 | ¥ | 1,025 | ¥ | 10,041 | ¥ | 38,621 | ||||||||
Adjustment resulting from the adoption of new accounting standards on variable interest entities |
(27,555 | ) | (1,027 | ) | | (28,582 | ) | |||||||||
Total realized/unrealized gains or losses |
||||||||||||||||
Included in earnings |
| 2 | (96 | ) | (94 | ) | ||||||||||
Included in other comprehensive income (loss) |
| | 282 | 282 | ||||||||||||
Purchases, issuances, settlements and sales, net |
| | (1,909 | ) | (1,909 | ) | ||||||||||
Foreign currency translation |
| (1 | ) | (1,159 | ) | (1,160 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance at end of the period |
¥ | | ¥ | (1 | ) | ¥ | 7,159 | ¥ | 7,158 | |||||||
|
|
|
|
|
|
|
|
|||||||||
The amounts of total gains or losses for the period attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date |
||||||||||||||||
Included in earnings |
¥ | | ¥ | | ¥ | | ¥ | | ||||||||
Included in other comprehensive income (loss) |
| | | |
19
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
For the nine months ended December 31, 2011
Yen (millions) | ||||||||||||||||
Retained interests in securitizations |
Interest rate instruments (note 11) |
Auction rate securities |
Total | |||||||||||||
Balance at beginning of the year |
¥ | | ¥ | (1 | ) | ¥ | 6,948 | ¥ | 6,947 | |||||||
Total realized/unrealized gains or losses |
||||||||||||||||
Included in earnings |
| | | | ||||||||||||
Included in other comprehensive income (loss) |
| | | | ||||||||||||
Purchases, issuances, settlements and sales |
||||||||||||||||
Purchases |
| | | | ||||||||||||
Issuances |
| | | | ||||||||||||
Settlements |
| | (46 | ) | (46 | ) | ||||||||||
Sales |
| | (33 | ) | (33 | ) | ||||||||||
Foreign currency translation |
| 1 | (451 | ) | (450 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance at end of the period |
¥ | | ¥ | | ¥ | 6,418 | ¥ | 6,418 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
The amounts of total gains or losses for the period attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date |
||||||||||||||||
Included in earnings |
¥ | | ¥ | | ¥ | | ¥ | | ||||||||
Included in other comprehensive income (loss) |
| | | |
Total realized/unrealized gains or losses related to interest rate instruments, including those held at the reporting date, are included in other income (expenses) other, net, in the consolidated statements of income.
The valuation methodologies the assets and liabilities measured at fair value on a recurring basis are as follows:
Foreign exchange and interest rate instruments (see note 11)
The fair values of foreign currency forward exchange contracts and foreign currency option contracts are estimated using market observable inputs such as spot exchange rates, discount rates and implied volatility. Fair value measurement for foreign currency forward exchange contracts and foreign currency option contracts are classified as Level 2. The fair values of currency swap agreements and interest rate swap agreements are estimated by discounting future cash flows using market observable inputs such as LIBOR rates, swap rates, and foreign exchange rates. Fair value measurement for these currency swap agreements and interest rate swap agreements are classified as Level 2.
The fair values of a limited number of interest rate swap agreements related to certain off balance sheet securitizations are estimated using significant assumptions including market observable inputs, as well as internally developed prepayment assumptions as an input into the model, in order to forecast future notional amounts on these structured derivative contracts. Accordingly, fair value measurement for these derivative contracts is classified as Level 3.
The credit risk of Honda and its counterparties are considered on the valuation of foreign exchange and interest rate instruments.
20
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Marketable equity securities
The fair value of marketable equity securities is estimated using quoted market prices. Fair value measurement for marketable equity securities is classified as Level 1.
Auction rate securities
The subsidiarys auction rate securities (ARS) holdings were AAA rated and are insured by qualified guarantee agencies, and reinsured by the Secretary of Education and United States Government, and are guaranteed about 95% by the United States Government. The ARS market has been illiquid, and no readily observable prices exist, Honda measured the fair value of the ARS based on the discounted future cash flows. In order to assess various kinds of risks, such as liquidity risk, Honda used third-party developed valuation model which obtains a wide array of market observable inputs, as well as unobservable inputs including probability of passing or failing auction at each auction. Fair value measurement for auction rate securities is classified as Level 3.
Honda does not have significant assets and liabilities measured at fair value on a nonrecurring basis for the year ended March 31, 2011 and the nine months ended December 31, 2011.
Honda has not elected the fair value option for the year ended March 31, 2011 and the nine months ended December 31, 2011.
The estimated fair values of significant financial instruments at March 31, 2011 and December 31, 2011 are as follows:
Yen (millions) | ||||||||||||||||
March 31, 2011 | December 31, 2011 | |||||||||||||||
Carrying amount |
Estimated fair value |
Carrying amount |
Estimated fair value |
|||||||||||||
Finance subsidiaries-receivables * |
¥ | 3,642,235 | ¥ | 3,701,218 | ¥ | 3,393,493 | ¥ | 3,427,353 | ||||||||
Held-to-maturity securities |
40,725 | 40,649 | 7,336 | 7,420 | ||||||||||||
Debt |
(4,100,435 | ) | (4,159,300 | ) | (3,835,868 | ) | (3,888,352 | ) |
* | The carrying amounts of finance subsidiaries-receivables at March 31, 2011 and December 31, 2011 in the table exclude ¥333,979 million and ¥313,133 million, respectively, of direct financing leases, net, classified as finance subsidiaries-receivables in the consolidated balance sheets. The carrying amounts of finance subsidiaries-receivables at March 31, 2011 and December 31, 2011 in the table also include ¥496,233 million and ¥423,949 million of finance receivables classified as trade accounts and notes receivable and other assets in the consolidated balance sheets, respectively. |
The estimated fair values have been determined using relevant market information and appropriate valuation methodologies. However, these estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. The effect of using different assumptions and/or estimation methodologies may be significant to the estimated fair values.
21
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The methodologies and assumptions used to estimate the fair values of financial instruments are as follows:
Cash and cash equivalents, trade accounts and notes receivable and trade payables
The carrying amounts approximate fair values because of the short maturity of these instruments.
Finance subsidiaries-receivables
The fair values of retail receivables and commercial loans were estimated by discounting future cash flows using the current rates for these instruments of similar remaining maturities. Given the short maturities of wholesale flooring receivables, the carrying amount of those receivables approximates fair value.
Held-to-maturity securities
The fair values of Government bonds and U.S. government and agency debt securities were estimated by using quoted market prices. The carrying amount of certificates of deposit approximates fair value because of the short maturity of the instrument.
Debt
The fair values of bonds and notes were estimated based on the quoted market prices for the same or similar issues. The fair value of long-term loans was estimated by discounting future cash flows using rates currently available for loans of similar terms and remaining maturities. The carrying amounts of short-term bank loans and commercial paper approximate fair values because of the short maturity of these instruments.
(11) 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 note 10). 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.
22
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
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, 2011 and December 31, 2011 are as follows:
Derivatives designated as hedging instruments:
Yen (millions) | ||||||||
March 31, 2011 |
December 31, 2011 |
|||||||
Foreign currency forward exchange contracts |
¥ | 15,050 | ¥ | 14,926 | ||||
|
|
|
|
|||||
Foreign exchange instruments |
¥ | 15,050 | ¥ | 14,926 | ||||
|
|
|
|
|||||
Derivatives not designated as hedging instruments:
|
| |||||||
Yen (millions) | ||||||||
March 31, 2011 |
December 31, 2011 |
|||||||
Foreign currency forward exchange contracts |
¥ | 611,359 | ¥ | 558,347 | ||||
Foreign currency option contracts |
44,237 | 173,949 | ||||||
Currency swap agreements |
549,099 | 480,338 | ||||||
|
|
|
|
|||||
Foreign exchange instruments |
¥ | 1,204,695 | ¥ | 1,212,634 | ||||
|
|
|
|
|||||
Interest rate swap agreements |
¥ | 3,566,605 | ¥ | 3,359,856 | ||||
|
|
|
|
|||||
Interest rate instruments |
¥ | 3,566,605 | ¥ | 3,359,856 | ||||
|
|
|
|
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 same period when forecasted hedged transactions affect earnings. The amounts recognized in accumulated other comprehensive income (loss) at March 31, 2011 and December 31, 2011 were ¥156 million loss and ¥45 million income, respectively. All amounts recorded in accumulated other comprehensive income (loss) as of December 31, 2011 are expected to be recognized in earnings within the next twelve months.
The period that hedges the changes in cash flows related to the risk of foreign currency rate is at most around two months. There are no derivative financial instruments where hedge accounting has been discontinued due to the forecasted transaction no longer being probable. The Company excludes financial instruments time value component from the assessment of hedge effectiveness. There is no portion of hedging instruments that has been assessed as hedge ineffectiveness.
Derivative financial instruments not designated as accounting hedges
Changes in the fair value of derivative financial instruments not designated as accounting hedges are recognized in earnings in the period of the change.
23
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The estimated fair values of derivative instruments at March 31, 2011 and December 31, 2011 are as follows.
As of March 31, 2011
Derivatives designated as hedging instruments:
Yen (millions) | ||||||||||||||||||||
Gross fair value | Balance sheet location | |||||||||||||||||||
Asset derivatives |
Liability derivatives |
Other current assets |
Other assets |
Other current liabilities |
||||||||||||||||
Foreign exchange instruments |
¥ | | ¥ | (114 | ) | ¥ | | ¥ | | ¥ | (114 | ) | ||||||||
Derivatives not designated as hedging instruments:
|
| |||||||||||||||||||
Yen (millions) | ||||||||||||||||||||
Gross fair value | Balance sheet location | |||||||||||||||||||
Asset derivatives |
Liability derivatives |
Other current assets |
Other assets |
Other current liabilities |
||||||||||||||||
Foreign exchange instruments |
¥ | 57,880 | ¥ | (15,598 | ) | ¥ | 20,174 | ¥ | 31,702 | ¥ | (9,594 | ) | ||||||||
Interest rate instruments |
29,913 | (32,590 | ) | (2,082 | ) | 11,358 | (11,953 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
¥ | 87,793 | ¥ | (48,188 | ) | ¥ | 18,092 | ¥ | 43,060 | ¥ | (21,547 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Netting adjustment |
(26,641 | ) | 26,641 | |||||||||||||||||
|
|
|
|
|||||||||||||||||
Net amount |
¥ | 61,152 | ¥ | (21,547 | ) | |||||||||||||||
|
|
|
|
|||||||||||||||||
As of December 31, 2011
Derivatives designated as hedging instruments:
|
| |||||||||||||||||||
Yen (millions) | ||||||||||||||||||||
Gross fair value | Balance sheet location | |||||||||||||||||||
Asset derivatives |
Liability derivatives |
Other current assets |
Other assets |
Other current liabilities |
||||||||||||||||
Foreign exchange instruments |
¥ | | ¥ | (49 | ) | ¥ | | ¥ | | ¥ | (49 | ) |
Derivatives not designated as hedging instruments:
Yen (millions) | ||||||||||||||||||||
Gross fair value | Balance sheet location | |||||||||||||||||||
Asset derivatives |
Liability derivatives |
Other current assets |
Other assets |
Other current liabilities |
||||||||||||||||
Foreign exchange instruments |
¥ | 56,655 | ¥ | (21,626 | ) | ¥ | 39,875 | ¥ | 5,790 | ¥ | (10,636 | ) | ||||||||
Interest rate instruments |
33,491 | (20,629 | ) | (831 | ) | 19,577 | (5,884 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
¥ | 90,146 | ¥ | (42,255 | ) | ¥ | 39,044 | ¥ | 25,367 | ¥ | (16,520 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Netting adjustment |
(25,735 | ) | 25,735 | |||||||||||||||||
|
|
|
|
|||||||||||||||||
Net amount |
¥ | 64,411 | ¥ | (16,520 | ) | |||||||||||||||
|
|
|
|
Derivative asset and liability positions are presented net by counterparty on the consolidated balance sheets when valid master netting agreement exists and the other conditions set out in the FASB Accounting Standards Codification (ASC) 210-20 Balance Sheet-Offsetting are met.
The pre-tax effects of derivative instruments on the Companys results of operations for the nine months and the three months ended December 31, 2010 and 2011 are as follows:
24
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
For the nine months ended December 31, 2010
Derivatives designated as hedging instruments
Cash flow hedge:
Yen (millions) | ||||||||||||||||
Gain (Loss) recognized in other comprehensive income (loss) (effective portion) |
Gain (Loss) reclassified from accumulated other comprehensive income (loss) into earnings (effective portion) |
Gain (Loss) recognized in earnings (financial instruments time value component excluded from the assessment of hedge effectiveness) |
||||||||||||||
Amount | Location | Amount | Location | Amount | ||||||||||||
Foreign exchange instruments: |
¥ | 1,620 | Other income (expenses) - Other, net |
¥ | 583 | Other income (expenses) - Other, net |
¥ | (16 | ) |
Derivatives not designated as hedging instruments
Yen (millions) |
||||||
Gain (Loss) recognized in earnings |
||||||
Location |
Amount | |||||
Foreign exchange instruments |
Other income (expenses) - Other, net | ¥ | 86,302 | |||
Interest rate instruments |
Other income (expenses) - Other, net | (14,447 | ) | |||
|
|
|||||
Total |
¥ | 71,855 | ||||
|
|
For the nine months ended December 31, 2011
Derivatives designated as hedging instruments
Cash flow hedge:
Yen (millions) | ||||||||||||||||
Gain (Loss) recognized in other comprehensive income (loss) (effective portion) |
Gain (Loss) reclassified from accumulated other comprehensive income (loss) into earnings (effective portion) |
Gain (Loss) recognized
in earnings (financial instruments time value component excluded from the assessment of hedge effectiveness) |
||||||||||||||
Amount | Location | Amount | Location | Amount | ||||||||||||
Foreign exchange instruments: |
¥ | 182 | Other income (expenses) - Other, net |
¥ | (152 | ) | Other income (expenses) - Other, net |
¥ | (4 | ) |
Derivatives not designated as hedging instruments
Yen (millions) |
||||||
Gain (Loss) recognized in earnings |
||||||
Location |
Amount | |||||
Foreign exchange instruments |
Other income (expenses) - Other, net | ¥ | 35,146 | |||
Interest rate instruments |
Other income (expenses) - Other, net | 1,363 | ||||
|
|
|||||
Total |
¥ | 36,509 | ||||
|
|
25
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
For the three months ended December 31, 2010
Derivatives designated as hedging instruments
Cash flow hedge:
Yen (millions) | ||||||||||||||||
Gain (Loss) recognized in other comprehensive income (loss) (effective portion) |
Gain (Loss) reclassified from accumulated other comprehensive income (loss) into earnings (effective portion) |
Gain (Loss) recognized
in earnings (financial instruments time value component excluded from the assessment of hedge effectiveness) |
||||||||||||||
Amount | Location | Amount | Location | Amount | ||||||||||||
Foreign exchange instruments: |
¥ | 496 | Other income (expenses) - Other, net |
¥ | 93 | Other income (expenses) - Other, net |
¥ | (278 | ) |
Derivatives not designated as hedging instruments
Yen (millions) |
||||||
Gain (Loss) recognized in earnings |
||||||
Location |
Amount | |||||
Foreign exchange instruments |
Other income (expenses) - Other, net | ¥ | 7,112 | |||
Interest rate instruments |
Other income (expenses) - Other, net | (6,276 | ) | |||
|
|
|||||
Total |
¥ | 836 | ||||
|
|
For the three months ended December 31, 2011
Derivatives designated as hedging instruments
Cash flow hedge:
Yen (millions) | ||||||||||||||||
Gain (Loss) recognized in other comprehensive income (loss) (effective portion) |
Gain (Loss) reclassified from accumulated other comprehensive income (loss) into earnings (effective portion) |
Gain (Loss) recognized
in earnings (financial instruments time value component excluded from the assessment of hedge effectiveness) |
||||||||||||||
Amount | Location | Amount | Location | Amount | ||||||||||||
Foreign exchange instruments: |
¥ | 75 | Other income (expenses) - Other, net |
¥ | 77 | Other income (expenses) - Other, net |
¥ | (124 | ) |
Derivatives not designated as hedging instruments
Yen (millions) |
||||||
Gain (Loss) recognized in earnings |
||||||
Location |
Amount | |||||
Foreign exchange instruments |
Other income (expenses) - Other, net | ¥ | (8,421 | ) | ||
Interest rate instruments |
Other income (expenses) - Other, net | 3,908 | ||||
|
|
|||||
Total |
¥ | (4,513 | ) | |||
|
|
The gains and losses are included in other income (expenses) other, net on a net basis with related items, such as foreign currency translation.
26
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(12) Contingent Liabilities
Honda has entered into various guarantee and indemnification agreements. At March 31, 2011 and December 31, 2011, Honda has guaranteed ¥30,393 million and ¥28,406 million 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 ¥30,393 million and ¥28,406 million, respectively, at March 31, 2011 and December 31, 2011. At December 31, 2011, 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 the year ended March 31, 2011 and the nine months ended December 31, 2011 are as follows:
Yen (millions) | ||||||||
March 31, 2011 |
December 31, 2011 |
|||||||
Balance at beginning of the period |
¥ | 226,038 | ¥ | 213,943 | ||||
Warranty claims paid during the period |
(82,080 | ) | (63,575 | ) | ||||
Liabilities accrued for warranties issued during the period |
84,920 | 43,111 | ||||||
Changes in liabilities for pre-existing warranties during the period |
(3,550 | ) | (11,973 | ) | ||||
Foreign currency translation |
(11,385 | ) | (9,244 | ) | ||||
|
|
|
|
|||||
Balance at end of the period |
¥ | 213,943 | ¥ | 172,262 | ||||
|
|
|
|
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. 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 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.
27
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(13) Information Related to Honda Motor Co., Ltd. Shareholders Equity
For the nine months ended December 31, 2010
(a) | Information concerning dividends |
1. | Dividend payout |
Resolution | The ordinary general meeting of shareholders on June 24, 2010 | |
Type of shares | Common stock | |
Total amount of dividends (million yen) | 21,775 | |
Dividend per share of common stock (yen) | 12.00 | |
Record date | March 31, 2010 | |
Effective date | June 25, 2010 | |
Resource for dividend | Retained earnings | |
Resolution | The board of directors meeting on July 30, 2010 | |
Type of shares | Common stock | |
Total amount of dividends (million yen) | 21,733 | |
Dividend per share of common stock (yen) | 12.00 | |
Record date | June 30, 2010 | |
Effective date | August 26, 2010 | |
Resource for dividend | Retained earnings | |
Resolution | The board of directors meeting on October 29, 2010 | |
Type of shares | Common stock | |
Total amount of dividends (million yen) | 21,627 | |
Dividend per share of common stock (yen) | 12.00 | |
Record date | September 30, 2010 | |
Effective date | November 25, 2010 | |
Resource for dividend | Retained earnings |
2. | Dividends payable of which record date was in the nine months ended December 31, 2010, effective after the period |
Resolution | The board of directors meeting on January 31, 2011 | |
Type of shares | Common stock | |
Total amount of dividends (million yen) | 27,034 | |
Dividend per share of common stock (yen) | 15.00 | |
Record date | December 31, 2010 | |
Effective date | February 25, 2011 | |
Resource for dividend | Retained earnings |
(b) | Significant changes in Honda Motor Co., Ltd. shareholders equity |
None
28
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
For the nine months ended December 31, 2011
(a) | Information concerning dividends |
1. | Dividend payout |
Resolution | The ordinary general meeting of shareholders on June 23, 2011 | |
Type of shares | Common stock | |
Total amount of dividends (million yen) | 27,034 | |
Dividend per share of common stock (yen) | 15.00 | |
Record date | March 31, 2011 | |
Effective date | June 24, 2011 | |
Resource for dividend | Retained earnings | |
Resolution | The board of directors meeting on August 1, 2011 | |
Type of shares | Common stock | |
Total amount of dividends (million yen) | 27,034 | |
Dividend per share of common stock (yen) | 15.00 | |
Record date | June 30, 2011 | |
Effective date | August 24, 2011 | |
Resource for dividend | Retained earnings | |
Resolution | The board of directors meeting on October 31, 2011 | |
Type of shares | Common stock | |
Total amount of dividends (million yen) | 27,034 | |
Dividend per share of common stock (yen) | 15.00 | |
Record date | September 30, 2011 | |
Effective date | November 25, 2011 | |
Resource for dividend | Retained earnings |
2. | Dividends payable of which record date was in the nine months ended December 31, 2011, effective after the period |
Resolution | The board of directors meeting on January 31, 2012 | |
Type of shares | Common stock | |
Total amount of dividends (million yen) | 27,034 | |
Dividend per share of common stock (yen) | 15.00 | |
Record date | December 31, 2011 | |
Effective date | February 24, 2012 | |
Resource for dividend | Retained earnings |
(b) | Significant changes in Honda Motor Co., Ltd. shareholders equity |
None
29
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(14) 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 the chief operating decision maker 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) 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
For the three months ended December 31, 2010
Yen (millions) | ||||||||||||||||||||||||||||||||
Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product and Other Businesses |
Segment Total |
Reconciling Items |
Other Adjustments |
Consolidated | |||||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
External customers |
¥ | 301,996 | ¥ | 1,613,841 | ¥ | 136,442 | ¥ | 68,023 | ¥ | 2,120,302 | ¥ | | ¥ | (9,888 | ) | ¥ | 2,110,414 | |||||||||||||||
Intersegment |
| 2,087 | 2,854 | 4,164 | 9,105 | (9,105 | ) | | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
¥ | 301,996 | ¥ | 1,615,928 | ¥ | 139,296 | ¥ | 72,187 | ¥ | 2,129,407 | ¥ | (9,105 | ) | ¥ | (9,888 | ) | ¥ | 2,110,414 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Segment income (loss) |
¥ | 29,132 | ¥ | 68,400 | ¥ | 44,603 | ¥ | (2,079 | ) | ¥ | 140,056 | ¥ | | ¥ | (14,403 | ) | ¥ | 125,653 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
For the three months ended December 31, 2011 |
|
|||||||||||||||||||||||||||||||
Yen (millions) | ||||||||||||||||||||||||||||||||
Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product and Other Businesses |
Segment Total |
Reconciling Items |
Other Adjustments |
Consolidated | |||||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
External customers |
¥ | 302,590 | ¥ | 1,451,054 | ¥ | 124,806 | ¥ | 64,095 | ¥ | 1,942,545 | ¥ | | ¥ | | ¥ | 1,942,545 | ||||||||||||||||
Intersegment |
| 4,578 | 2,760 | 3,951 | 11,289 | (11,289 | ) | | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
¥ | 302,590 | ¥ | 1,455,632 | ¥ | 127,566 | ¥ | 68,046 | ¥ | 1,953,834 | ¥ | (11,289 | ) | ¥ | | ¥ | 1,942,545 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Segment income (loss) |
¥ | 25,866 | ¥ | (16,997 | ) | ¥ | 37,597 | ¥ | (2,168 | ) | ¥ | 44,298 | ¥ | | ¥ | | ¥ | 44,298 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
As of and for the nine months ended December 31, 2010
Yen (millions) | ||||||||||||||||||||||||||||||||
Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product and Other Businesses |
Segment Total |
Reconciling Items |
Other Adjustments |
Consolidated | |||||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
External customers |
¥ | 935,082 | ¥ | 5,148,743 | ¥ | 427,346 | ¥ | 212,617 | ¥ | 6,723,788 | ¥ | | ¥ | | ¥ | 6,723,788 | ||||||||||||||||
Intersegment |
| 5,135 | 8,759 | 12,086 | 25,980 | (25,980 | ) | | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
¥ | 935,082 | ¥ | 5,153,878 | ¥ | 436,105 | ¥ | 224,703 | ¥ | 6,749,768 | ¥ | (25,980 | ) | ¥ | | ¥ | 6,723,788 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Segment income (loss) |
¥ | 90,460 | ¥ | 303,727 | ¥ | 146,672 | ¥ | (3,167 | ) | ¥ | 537,692 | ¥ | | ¥ | (14,123 | ) | ¥ | 523,569 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Assets |
¥ | 944,662 | ¥ | 4,764,066 | ¥ | 5,427,253 | ¥ | 283,030 | ¥ | 11,419,011 | ¥ | (159,399 | ) | ¥ | | ¥ | 11,259,612 | |||||||||||||||
Depreciation and amortization |
¥ | 30,542 | ¥ | 221,922 | ¥ | 161,287 | ¥ | 8,536 | ¥ | 422,287 | ¥ | | ¥ | | ¥ | 422,287 | ||||||||||||||||
Capital expenditures |
¥ | 21,086 | ¥ | 171,191 | ¥ | 587,981 | ¥ | 7,198 | ¥ | 787,456 | ¥ | | ¥ | | ¥ | 787,456 |
As of and for the nine months ended December 31, 2011
Yen (millions) | ||||||||||||||||||||||||||||||||
Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product and Other Businesses |
Segment Total |
Reconciling Items |
Other Adjustments |
Consolidated | |||||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
External customers |
¥ | 990,287 | ¥ | 3,961,018 | ¥ | 387,127 | ¥ | 204,601 | ¥ | 5,543,033 | ¥ | | ¥ | | ¥ | 5,543,033 | ||||||||||||||||
Intersegment |
| 10,587 | 8,231 | 9,516 | 28,334 | (28,334 | ) | | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
¥ | 990,287 | ¥ | 3,971,605 | ¥ | 395,358 | ¥ | 214,117 | ¥ | 5,571,367 | ¥ | (28,334 | ) | ¥ | | ¥ | 5,543,033 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Segment income (loss) |
¥ | 109,733 | ¥ | (122,366 | ) | ¥ | 134,043 | ¥ | (2,022 | ) | ¥ | 119,388 | ¥ | | ¥ | | ¥ | 119,388 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Assets |
¥ | 965,325 | ¥ | 4,448,203 | ¥ | 5,290,548 | ¥ | 292,342 | ¥ | 10,996,418 | ¥ | (114,122 | ) | ¥ | | ¥ | 10,882,296 | |||||||||||||||
Depreciation and amortization |
¥ | 29,914 | ¥ | 190,295 | ¥ | 155,165 | ¥ | 7,128 | ¥ | 382,502 | ¥ | | ¥ | | ¥ | 382,502 | ||||||||||||||||
Capital expenditures |
¥ | 39,447 | ¥ | 203,771 | ¥ | 500,553 | ¥ | 6,012 | ¥ | 749,783 | ¥ | | ¥ | | ¥ | 749,783 |
Explanatory notes:
1. | Segment income (loss) of each segment is measured in a consistent manner with consolidated operating income, which is income before income taxes and equity in income of affiliates before other income (expenses), except other adjustments, which is out-of-period adjustments. Expenses not directly associated with specific segments are allocated based on the most reasonable measures applicable. For further information on other adjustments, see note 1(e). The amount of out-of-period adjustments are not reported to or used by the chief operating decision maker in deciding how to allocate resources and in assessing the Companys operating performance. Therefore, the adjustments are not included in the Power product and other businesses but as other adjustments for the three months and the nine months periods ended December 31, 2010. |
2. | Assets of each segment are defined as total assets, including derivative financial instruments, investments in affiliates, and deferred tax assets. Segment assets are based on those directly associated with each segment and those not directly associated with specific segments are allocated based on the most reasonable measures applicable except for the corporate assets described below. |
3. | Intersegment sales and revenues are generally made at values that approximate arms-length prices. |
4. | Unallocated corporate assets, included in reconciling items, amounted to ¥393,266 million as of December 31, 2010 and ¥371,004 million as of December 31, 2011 respectively, which consist primarily of cash and cash equivalents, available-for-sale securities and held-to-maturity securities held by the Company. Reconciling items also include elimination of intersegment transactions. |
5. | Depreciation and amortization of the Financial services business include ¥160,036 million for the nine months ended December 31, 2010 and ¥154,054 million for the nine months ended December 31, 2011, respectively, of depreciation of property on operating leases. |
6. | Capital expenditure of the Financial services business includes ¥586,391 million for the nine months ended December 31, 2010 and ¥498,380 million for the nine months ended December 31, 2011 respectively, of purchase of operating lease assets. |
7. | The amounts of Net sales and other operating revenue Intersegment for the three months and nine months ended December 31, 2010 have been corrected from the amounts previously disclosed. |
8. | For the three months ended December 31, 2011, substantially all of the ¥17,348 million of the costs and expenses and ¥11,838 million of insurance recoveries resulting from Thailand flood are included in Segment income (loss) of the Automobile business. |
31
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Supplemental Geographical Information
In addition to the disclosure required by U.S. GAAP, Honda provides the following supplemental information in order to provide financial statements users with useful information:
Supplemental geographical information based on the location of the Company and its subsidiaries
For the three months ended December 31, 2010
Yen (millions) | ||||||||||||||||||||||||||||||||||||
Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Other Adjustments |
Consolidated | ||||||||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||||||
External customers |
¥ | 404,219 | ¥ | 964,492 | ¥ | 132,514 | ¥ | 387,477 | ¥ | 231,600 | ¥ | 2,120,302 | ¥ | | ¥ | (9,888 | ) | ¥ | 2,110,414 | |||||||||||||||||
Transfers between geographic areas |
463,331 | 47,319 | 18,226 | 58,044 | 7,291 | 594,211 | (594,211 | ) | | | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
¥ | 867,550 | ¥ | 1,011,811 | ¥ | 150,740 | ¥ | 445,521 | ¥ | 238,891 | ¥ | 2,714,513 | ¥ | (594,211 | ) | ¥ | (9,888 | ) | ¥ | 2,110,414 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Operating income (loss) |
¥ | 14,633 | ¥ | 89,698 | ¥ | (9,436 | ) | ¥ | 35,780 | ¥ | 15,690 | ¥ | 146,365 | ¥ | (6,309 | ) | ¥ | (14,403 | ) | ¥ | 125,653 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
For the three months ended December 31, 2011 |
|
|||||||||||||||||||||||||||||||||||
Yen (millions) | ||||||||||||||||||||||||||||||||||||
Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Other Adjustments |
Consolidated | ||||||||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||||||
External customers |
¥ | 434,749 | ¥ | 928,336 | ¥ | 105,229 | ¥ | 269,470 | ¥ | 204,761 | ¥ | 1,942,545 | ¥ | | ¥ | | ¥ | 1,942,545 | ||||||||||||||||||
Transfers between geographic areas |
428,450 | 57,956 | 14,233 | 48,210 | 1,373 | 550,222 | (550,222 | ) | | | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
¥ | 863,199 | ¥ | 986,292 | ¥ | 119,462 | ¥ | 317,680 | ¥ | 206,134 | ¥ | 2,492,767 | ¥ | (550,222 | ) | ¥ | | ¥ | 1,942,545 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Operating income (loss) |
¥ | (41,219 | ) | ¥ | 74,865 | ¥ | (3,801 | ) | ¥ | 13,350 | ¥ | 12,525 | ¥ | 55,720 | ¥ | (11,422 | ) | ¥ | | ¥ | 44,298 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
As of and for the nine months ended December 31, 2010
Yen (millions) | ||||||||||||||||||||||||||||||||||||
Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Other Adjustments |
Consolidated | ||||||||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||||||
External customers |
¥ | 1,377,539 | ¥ | 3,017,225 | ¥ | 447,418 | ¥ | 1,189,687 | ¥ | 691,919 | ¥ | 6,723,788 | ¥ | | ¥ | | ¥ | 6,723,788 | ||||||||||||||||||
Transfers between geographic areas |
1,339,789 | 154,054 | 54,521 | 179,068 | 25,858 | 1,753,290 | (1,753,290 | ) | | | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
¥ | 2,717,328 | ¥ | 3,171,279 | ¥ | 501,939 | ¥ | 1,368,755 | ¥ | 717,777 | ¥ | 8,477,078 | ¥ | (1,753,290 | ) | ¥ | | ¥ | 6,723,788 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Operating income (loss) |
¥ | 87,919 | ¥ | 276,364 | ¥ | (8,438 | ) | ¥ | 118,530 | ¥ | 56,389 | ¥ | 530,764 | ¥ | 6,928 | ¥ | (14,123 | ) | ¥ | 523,569 | ||||||||||||||||
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Assets |
¥ | 2,895,405 | ¥ | 6,025,463 | ¥ | 492,882 | ¥ | 1,046,431 | ¥ | 663,111 | ¥ | 11,123,292 | ¥ | 136,320 | ¥ | | ¥ | 11,259,612 | ||||||||||||||||||
Long-lived assets |
¥ | 1,059,010 | ¥ | 1,744,305 | ¥ | 97,808 | ¥ | 219,810 | ¥ | 146,464 | ¥ | 3,267,397 | ¥ | | ¥ | | ¥ | 3,267,397 | ||||||||||||||||||
As of and for the nine months ended December 31, 2011 |
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Yen (millions) | ||||||||||||||||||||||||||||||||||||
Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Other Adjustments |
Consolidated | ||||||||||||||||||||||||||||
Net sales and other operating revenue: |
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External customers |
¥ | 1,188,657 | ¥ | 2,366,920 | ¥ | 370,471 | ¥ | 945,363 | ¥ | 671,622 | ¥ | 5,543,033 | ¥ | | ¥ | | ¥ | 5,543,033 | ||||||||||||||||||
Transfers between geographic areas |
1,105,253 | 147,445 | 44,461 | 153,553 | 8,822 | 1,459,534 | (1,459,534 | ) | | | ||||||||||||||||||||||||||
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Total |
¥ | 2,293,910 | ¥ | 2,514,365 | ¥ | 414,932 | ¥ | 1,098,916 | ¥ | 680,444 | ¥ | 7,002,567 | ¥ | (1,459,534 | ) | ¥ | | ¥ | 5,543,033 | |||||||||||||||||
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Operating income (loss) |
¥ | (122,422 | ) | ¥ | 141,083 | ¥ | (13,934 | ) | ¥ | 60,326 | ¥ | 51,333 | ¥ | 116,386 | ¥ | 3,002 | ¥ | | ¥ | 119,388 | ||||||||||||||||
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Assets |
¥ | 2,956,920 | ¥ | 5,809,611 | ¥ | 437,391 | ¥ | 938,207 | ¥ | 601,543 | ¥ | 10,743,672 | ¥ | 138,624 | ¥ | | ¥ | 10,882,296 | ||||||||||||||||||
Long-lived assets |
¥ | 1,035,861 | ¥ | 1,805,658 | ¥ | 97,691 | ¥ | 218,844 | ¥ |