Toyota 2005 Annual Report Download - page 111

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS >109
The estimated fair values of Toyota’s financial instruments, excluding marketable securities and other securities
investments and affiliated companies, are summarized as follows:
Yen in millions
March 31, 2004
Carrying Estimated
amount fair value
Asset (Liability)
Cash and cash equivalents ............................................................................................................................ ¥1,729,776 ¥1,729,776
Time deposits ................................................................................................................................................ 68,473 68,473
Total finance receivables, net........................................................................................................................ 5,069,041 5,228,629
Other receivables........................................................................................................................................... 396,788 396,788
Short-term borrowings ................................................................................................................................. (2,189,024) (2,189,024)
Long-term debt including the current portion ........................................................................................... (5,295,756) (5,387,028)
Foreign exchange forward contracts ............................................................................................................ 8,923 8,923
Interest rate and currency swap agreements................................................................................................ 208,141 208,141
Option contracts purchased ......................................................................................................................... 8,841 8,841
Option contracts written .............................................................................................................................. (1,725) (1,725)
Yen in millions U.S. dollars in millions
March 31, 2005 March 31, 2005
Carrying Estimated Carrying Estimated
amount fair value amount fair value
Asset (Liability)
Cash and cash equivalents .............................................................. ¥1,483,753 ¥1,483,753 $13,816 $13,816
Time deposits .................................................................................. 63,609 63,609 592 592
Total finance receivables, net.......................................................... 6,306,648 6,298,144 58,727 58,647
Other receivables............................................................................. 438,676 438,676 4,085 4,085
Short-term borrowings ................................................................... (2,381,827) (2,381,827) (22,179) (22,179)
Long-term debt including the current portion ............................. (6,094,565) (6,140,043) (56,751) (57,175)
Foreign exchange forward contracts .............................................. (10,176) (10,176) (95) (95)
Interest rate and currency swap agreements.................................. 148,119 148,119 1,379 1,379
Option contracts purchased ........................................................... 2,282 2,282 21 21
Option contracts written ................................................................ (4,042) (4,042) (38) (38)
Toyota has certain financial instruments, including finan-
cial assets and liabilities and off-balance sheet financial
instruments which arose in the normal course of business.
These financial instruments are executed with credit-
worthy financial institutions, and virtually all foreign
currency contracts are denominated in U.S. dollars, euros
and other currencies of major industrialized countries.
Financial instruments involve, to varying degrees, market
risk as instruments are subject to price fluctuations, and
elements of credit risk in the event a counterparty should
default. In the unlikely event the counterparties fail to
meet the contractual terms of a foreign currency or an
interest rate instrument, Toyota’s risk is limited to the fair
value of the instrument. Although Toyota may be exposed
to losses in the event of non-performance by counter-
parties on financial instruments, it does not anticipate
significant losses due to the nature of its counterparties.
Counterparties to Toyota’s financial instruments repre-
sent, in general, international financial institutions.
Additionally, Toyota does not have a significant exposure
to any individual counterparty. Based on the creditworthi-
ness of these financial institutions, collateral is generally
not required of the counterparties or of Toyota. Toyota
believes that the overall credit risk related to its financial
instruments is not significant.
21. OTHER FINANCIAL INSTRUMENTS