Toyota 2007 Annual Report Download - page 125

ANNUAL REPORT 2007 123
Commitments outstanding at March 31, 2007 for the purchase
of property, plant and equipment and other assets totaled
¥132,443 million ($1,122 million).
Toyota enters into contracts with Toyota dealers to guaran-
tee customers’ payments of their installment payables that arise
from installment contracts between customers and Toyota deal-
ers, as and when requested by Toyota dealers. Guarantee peri-
ods are set to match maturity of installment payments, and at
March 31, 2007, range from 1 month to 35 years; however, they
are generally shorter than the useful lives of products sold.
Toyota is required to execute its guarantee primarily when cus-
tomers are unable to make required payments. The maximum
potential amount of future payments as of March 31, 2007 is
¥1,333,961 million ($11,300 million). Liabilities for guarantees
totaling ¥3,614 million ($31 million) have been provided as of
March 31, 2007. Under these guarantee contracts, Toyota is
entitled to recover any amount paid by Toyota from the cus-
tomers whose original obligations Toyota has guaranteed.
In February 2003, Toyota, General Motors Corporation, Ford,
DaimlerChrysler, Honda, Nissan and BMW and their U.S. and
Canadian sales and marketing subsidiaries, the National
Automobile Dealers Association and the Canadian Automobile
Dealers Association were named as defendants in purported
nationwide class actions on behalf of all purchasers of new
motor vehicles in the United States since January 1, 2001. 26
similar actions were filed in federal district courts in California,
Illinois, New York, Massachusetts, Florida, New Jersey and
Pennsylvania. Additionally, 56 parallel class actions were filed in
state courts in California, Minnesota, New Mexico, New York,
Tennessee, Wisconsin, Arizona, Florida, Iowa, New Jersey and
Nebraska on behalf of the same purchasers in these states. As
of April 1, 2005, actions filed in federal district courts were con-
solidated in Maine and actions filed in the state courts of
California and New Jersey were also consolidated, respectively.
The nearly identical complaints allege that the defendants
violated the Sherman Antitrust Act by conspiring among them-
selves and with their dealers to prevent the sale to United
States citizens of vehicles produced for the Canadian market.
The complaints allege that new vehicle prices in Canada are
10% to 30% lower than those in the United States and that pre-
venting the sale of these vehicles to United States citizens
resulted in United States consumers paying excessive prices for
the same type of vehicles. The complaints seek permanent
injunctions against the alleged antitrust violations and treble
damages in an unspecified amount. In March 2004, the federal
district court of Maine (i) dismissed claims against certain
23. Other commitments and contingencies, concentrations and factors that may affect future operations:
Amortization expenses under capital leases for the years ended March 31, 2005, 2006 and 2007 were ¥12,725 million, ¥11,348 mil-
lion and ¥10,559 million ($89 million), respectively.
Future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of
March 31, 2007 are as follows:
U.S. dollars
Years ending March 31, Yen in millions in millions
2008 ............................................................................................................................................................... ¥12,829 $109
2009 ............................................................................................................................................................... 8,569 73
2010 ............................................................................................................................................................... 7,805 66
2011 ............................................................................................................................................................... 24,441 207
2012 ............................................................................................................................................................... 1,075 9
Thereafter...................................................................................................................................................... 1,129 9
Total minimum lease payments.......................................................................................................... 55,848 473
Less—Amount representing interest.......................................................................................................... (4,962) (42)
Present value of net minimum lease payments................................................................................. 50,886 431
Less—Current obligations ........................................................................................................................... (12,253) (104)
Long-term capital lease obligations................................................................................................... ¥38,633 $327
Rental expenses under operating leases for the years ended March 31, 2005, 2006 and 2007 were ¥83,784 million, ¥93,867 million
and ¥107,301 million ($909 million), respectively.
The minimum rental payments required under operating leases relating primarily to land, buildings and equipment having initial
or remaining non-cancelable lease terms in excess of one year at March 31, 2007 are as follows:
U.S. dollars
Years ending March 31, Yen in millions in millions
2008 ............................................................................................................................................................... ¥11,364 $ 96
2009 ............................................................................................................................................................... 8,413 71
2010 ............................................................................................................................................................... 6,932 59
2011 ............................................................................................................................................................... 5,380 46
2012 ............................................................................................................................................................... 4,482 38
Thereafter...................................................................................................................................................... 19,570 166
Total minimum future rentals.............................................................................................................. ¥56,141 $476