Toyota 2006 Annual Report Download - page 82

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Related Party Transactions
Toyota does not have any significant related party transactions
other than transactions with affiliated companies in the ordi-
nary course of business as described in note 12 to the consoli-
dated financial statements.
Legislation Regarding End-of-Life Vehicles
In September 2000, the European Union approved a directive
that requires member states to promulgate regulations imple-
ment the following:
• manufacturers shall bear all or a significant part of the costs
for taking back end-of-life vehicles put on the market after
July 1, 2002 and dismantling and recycling those vehicles.
Beginning January 1, 2007, this requirement will also be
applicable to vehicles put on the market before July 1, 2002;
• manufacturers may not use certain hazardous materials in
vehicles sold after July 2003;
• vehicles type-approved and put on the market after December
15, 2008, shall be re-usable and/or recyclable to a minimum
of 85% by weight per vehicle and shall be re-usable and/or
recoverable to a minimum of 95% by weight per vehicle; and
• end-of-life vehicles must meet actual re-use of 80% and re-
use as material or energy of 85%, respectively, of vehicle
weight by 2006, rising to 85% and 95%, respectively, by
2015.
See note 23 to the consolidated financial statements for further
discussion.
Recent Accounting Pronouncements
in the United States
In November 2004, the Financial Accounting Standards Board
(“FASB”) issued FAS No. 151, Inventory Costs—an amendment
of ARB No. 43, Chapter 4 (“FAS 151”). FAS 151 amends the
guidance in ARB No. 43, Chapter 4, “Inventory Pricing,” to clari-
fy the accounting for abnormal amounts of idle facility expense,
freight, handling costs, and wasted material (spoilage).
Paragraph 5 of ARB No. 43, Chapter 4, previously stated that
“...under some circumstances, items such as idle facility
expense, excessive spoilage, double freight, and rehandling
Yen in millions
Payments Due by Period
Less than 1 to 3 3 to 5 5 years and
Total 1 year years years after
Contractual Obligations:
Short-term borrowings (note 13)
Loans....................................................................................... ¥ 986,128 ¥ 986,128
Commercial paper.................................................................... 2,046,891 2,046,891
Long-term debt * (note 13).......................................................... 7,306,037 1,709,231 ¥3,161,232 ¥1,434,838 ¥1,000,736
Capital lease obligations (note 13)................................................ 58,341 14,657 17,402 25,736 546
Non-cancelable operating lease obligations (note 22) .................. 51,495 9,740 13,565 9,101 19,089
Commitments for the purchase of property,
plant and other assets (note 23)................................................. 103,324 97,152 6,172 — —
Total ........................................................................................ ¥10,552,216 ¥4,863,799 ¥3,198,371 ¥1,469,675 ¥1,020,371
* “Long-term debt” represents future principal payments.
Toyota expects to contribute ¥98,561 million to its pension plans in during fiscal 2007.
Yen in millions
Amount of Commitment Expiration Per Period
Total
Amounts Less than 1 to 3 3 to 5 5 years and
Committed 1 year years years after
Commercial Commitments:
Maximum potential exposure to guarantees given
in the ordinary course of business (note 23) ............................... ¥1,236,977 ¥380,152 ¥587,137 ¥223,862 ¥45,826
Total Commercial Commitments .............................................. ¥1,236,977 ¥380,152 ¥587,137 ¥223,862 ¥45,826