Toyota 2008 Annual Report Download - page 111

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•Annual Report 2008 • TOYOTA
Performance Messages from the Management &
•Overview •Management •Special Feature •Business Overview •Corporate Information •Financial Section •Investor Information •
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
2009 ................................................................................................................................................................................... ¥2,675,431 $26,704
2010 ................................................................................................................................................................................... 2,305,498 23,011
2011 ................................................................................................................................................................................... 1,144,468 11,423
2012 ................................................................................................................................................................................... 764,227 7,628
2013 ................................................................................................................................................................................... 615,128 6,140
As of March 31, 2008, approximately 34%, 24%, 10% and 32%
of long-term debt are denominated in U.S. dollars, Japanese
yen, euros, and other currencies, respectively.
As of March 31, 2008, property, plant and equipment with a
book value of ¥90,436 million ($903 million) and in addition,
other assets aggregating ¥31,669 million ($316 million) were
pledged as collateral mainly for certain debt obligations of
subsidiaries.
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 indebt-
edness to such banks. During the year ended March 31, 2008,
Toyota has not received any significant such requests from
these banks.
As of March 31, 2008, Toyota has unused long-term lines of
credit amounting to ¥4,890,199 million ($48,809 million).
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.
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 esti-
mated warranty costs to be incurred in the future in accordance
with the warranty contracts. The net change in the accrual for the
product warranties for the years ended March 31, 2006, 2007 and
2008, which is included in “Accrued expenses” in the accompa-
nying consolidated balance sheets, consist of the following:
U.S. dollars
Yen in millions in millions
For the year ended
For the years ended March 31, March 31,
2006 2007 2008 2008
Liabilities for product warranties at beginning of year .................................... ¥ 330,552 ¥ 377,879 ¥ 412,452 $ 4,116
Payments made during year............................................................................... (252,453) (279,597) (324,110) (3,235)
Provision for warranties....................................................................................... 298,719 336,543 392,349 3,916
Changes relating to pre-existing warranties..................................................... (9,457) (29,458) (14,155) (141)
Other ................................................................................................................... 10,518 7,085 (20,152) (201)
Liabilities for product warranties at end of year ............................................... ¥ 377,879 ¥ 412,452 ¥ 446,384 $ 4,455
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,
2006 2007 2008 2008
Income before income taxes:
Parent company and domestic subsidiaries ................................................. ¥1,159,116 ¥1,412,674 ¥1,522,619 $15,197
Foreign subsidiaries ........................................................................................ 928,244 969,842 914,603 9,129
¥2,087,360 ¥2,382,516 ¥2,437,222 $24,326
Other payables are mainly related to purchases of property, plant and equipment and non-manufacturing purchases.
Product warranties: 14 .
Other payables: 15 .
Income taxes: 16 .