Toyota 2007 Annual Report Download - page 113

ANNUAL REPORT 2007 111
As of March 31, 2007, approximately 39%, 24%, 11% and 26%
of long-term debt are denominated in U.S. dollars, Japanese
yen, euros, and other currencies, respectively.
As of March 31, 2007, property, plant and equipment with a
book value of ¥89,233 million ($756 million) and in addition,
other assets aggregating ¥36,488 million ($309 million) were
pledged as collateral mainly for certain debt obligations of sub-
sidiaries.
The aggregate amounts of annual maturities of long-term debt during the next five years are as follows:
U.S. dollars
Years ending March 31, Yen in millions in millions
2008 ............................................................................................................................................................... ¥2,368,116 $20,060
2009 ............................................................................................................................................................... 1,778,730 15,068
2010 ............................................................................................................................................................... 1,594,216 13,505
2011 ............................................................................................................................................................... 792,424 6,713
2012 ............................................................................................................................................................... 866,031 7,336
Standard agreements with certain banks in Japan include
provisions that collateral (including sums on deposit with such
banks) or guarantees will be furnished upon the banks’ request
and that any collateral furnished, pursuant to such agreements
or otherwise, will be applicable to all present or future indebtedness
to such banks. During the year ended March 31, 2007, Toyota
has not received any significant such requests from these banks.
As of March 31, 2007, Toyota has unused long-term lines of
credit amounting to ¥4,710,944 million ($39,906 million).
U.S. dollars
Yen in millions in millions
For the year
ended
For the years ended March 31, March 31,
2005 2006 2007 2007
Liabilities for product warranties at beginning of year ..................... ¥ 291,747 ¥ 330,552 ¥ 377,879 $ 3,201
Payments made during year................................................................ (214,876) (252,453) (279,597) (2,368)
Provision for warranties........................................................................ 255,610 298,719 336,543 2,851
Changes relating to pre-existing warranties...................................... (3,654) (9,457) (29,458) (250)
Other ..................................................................................................... 1,725 10,518 7,085 60
Liabilities for product warranties at end of year ................................ ¥ 330,552 ¥ 377,879 ¥ 412,452 $ 3,494
Toyota provides product warranties for certain defects mainly
resulting from manufacturing based on warranty contracts with
its customers at the time of sale of products. Toyota accrues
estimated warranty costs to be incurred in the future in accor-
dance with the warranty contracts. The net change in the accrual
for the product warranties for the years ended March 31, 2005,
2006 and 2007, which is included in “Accrued expenses” in the
accompanying consolidated balance sheets, consist of the
following:
14. Product warranties:
The other amount primarily includes the impact of currency
translation adjustments and the impact of consolidation and
deconsolidation of certain entities due to changes in ownership
interest.
In addition to product warranties above, Toyota initiates
recall actions or voluntary service campaigns to repair or to
replace parts which might be expected to fail from products
safety perspectives or customer satisfaction standpoints. Toyota
accrues costs of these activities, which are not included in the
reconciliation above, based on management’s estimates.
Other payables are mainly related to purchases of property, plant and equipment and non-manufacturing purchases.
15. Other payables:
The components of income before income taxes comprise the following:
U.S. dollars
Yen in millions in millions
For the year
ended
For the years ended March 31, March 31,
2005 2006 2007 2007
Income before income taxes:
Parent company and domestic subsidiaries .................................. ¥ 946,626 ¥1,159,116 ¥1,412,674 $11,967
Foreign subsidiaries ......................................................................... 808,011 928,244 969,842 8,215
¥1,754,637 ¥2,087,360 ¥2,382,516 $20,182
16. Income taxes: