Toyota 2007 Annual Report Download - page 124

Download and view the complete annual report

Please find page 124 of the 2007 Toyota annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

122 ANNUAL REPORT 2007
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, 2006
Carrying Estimated
amount fair value
Asset (Liability)
Cash and cash equivalents...................................................................................................................... ¥ 1,569,387 ¥ 1,569,387
Time deposits........................................................................................................................................... 50,349 50,349
Total finance receivables, net ................................................................................................................. 7,601,838 7,413,229
Other receivables..................................................................................................................................... 416,336 416,336
Short-term borrowings ............................................................................................................................ (3,033,019) (3,033,019)
Long-term debt including the current portion...................................................................................... (7,306,037) (7,297,826)
Foreign exchange forward contracts ..................................................................................................... (8,136) (8,136)
Interest rate and currency swap agreements ........................................................................................ 101,890 101,890
Option contracts purchased ................................................................................................................... 2,994 2,994
Option contracts written ......................................................................................................................... (3,035) (3,035)
Yen in millions U.S. dollars in millions
March 31, 2007 March 31, 2007
Carrying Estimated Carrying Estimated
amount fair value amount fair value
Asset (Liability)
Cash and cash equivalents .............................................................. ¥ 1,900,379 ¥ 1,900,379 $ 16,098 $ 16,098
Time deposits ................................................................................... 26,709 26,709 226 226
Total finance receivables, net ......................................................... 8,938,284 8,998,023 75,715 76,222
Other receivables ............................................................................. 486,170 486,170 4,118 4,118
Short-term borrowings..................................................................... (3,497,391) (3,497,391) (29,626) (29,626)
Long-term debt including the current portion .............................. (8,580,815) (8,595,301) (72,688) (72,811)
Foreign exchange forward contracts.............................................. (4,327) (4,327) (37) (37)
Interest rate and currency swap agreements................................. 115,640 115,640 980 980
Option contracts purchased............................................................ 3,249 3,249 28 28
Option contracts written.................................................................. (2,341) (2,341) (20) (20)
Following are explanatory notes regarding the financial assets and liabilities other than derivative financial instruments.
Cash and cash equivalents, time deposits
and other receivables—
In the normal course of business, substantially all cash and cash
equivalents, time deposits and other receivables are highly liq-
uid and are carried at amounts which approximate fair value.
Finance receivables, net—
The carrying value of variable rate finance receivables was
assumed to approximate fair value as they were repriced at
prevailing market rates at March 31, 2006 and 2007. The fair
value of fixed rate finance receivables was estimated by dis-
counting expected cash flows using the rates at which loans of
similar credit quality and maturity would be made as of March
31, 2006 and 2007.
Short-term borrowings and long-term debt—
The fair values of short-term borrowings and total long-term
debt including the current portion were estimated based on
the discounted amounts of future cash flows using Toyota’s
current incremental borrowing rates for similar liabilities.
Toyota leases certain assets under capital lease and operating lease arrangements.
An analysis of leased assets under capital leases is as follows:
U.S. dollars
Yen in millions in millions
March 31, March 31,
2006 2007 2007
Class of property
Building .............................................................................................................................. ¥ 12,095 ¥ 13,560 $ 115
Machinery and equipment................................................................................................ 139,063 147,926 1,253
Less—Accumulated depreciation .................................................................................... (112,495) (126,178) (1,069)
¥ 38,663 ¥ 35,308 $ 299
22. Lease commitments: