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120 TOYOTA •Annual Report 2008 •
Financial Section
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, 2007
Carrying Estimated
amount fair value
Asset (Liability)
Cash and cash equivalents .......................................................................................................................................... ¥ 1,900,379 ¥ 1,900,379
Time deposits ............................................................................................................................................................... 26,709 26,709
Total finance receivables, net...................................................................................................................................... 8,938,284 8,998,023
Other receivables ......................................................................................................................................................... 486,170 486,170
Short-term borrowings................................................................................................................................................. (3,497,391) (3,497,391)
Long-term debt including the current portion .......................................................................................................... (8,580,815) (8,595,301)
Foreign exchange forward contracts.......................................................................................................................... (4,327) (4,327)
Interest rate and currency swap agreements............................................................................................................. 115,640 115,640
Option contracts purchased........................................................................................................................................ 3,249 3,249
Option contracts written.............................................................................................................................................. (2,341) (2,341)
Yen in millions U.S. dollars in millions
March 31, 2008 March 31, 2008
Carrying Estimated Carrying Estimated
amount fair value amount fair value
Asset (Liability)
Cash and cash equivalents............................................................................ ¥1,628,547 ¥1,628,547 $16,255 $16,255
Time deposits................................................................................................. 134,773 134,773 1,345 1,345
Total finance receivables, net ....................................................................... 9,132,242 9,287,490 91,149 92,699
Other receivables........................................................................................... 523,533 523,533 5,225 5,225
Short-term borrowings .................................................................................. (3,552,721) (3,552,721) (35,460) (35,460)
Long-term debt including the current portion............................................ (8,613,799) (8,646,182) (85,974) (86,298)
Foreign exchange forward contracts ........................................................... 26,352 26,352 263 263
Interest rate and currency swap agreements .............................................. 223,163 223,163 2,227 2,227
Option contracts purchased ......................................................................... 18,525 18,525 185 185
Option contracts written ............................................................................... (4,242) (4,242) (42) (42)
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 pre-
vailing market rates at March 31, 2007 and 2008. The fair value
of fixed rate finance receivables was estimated by discounting
expected cash flows using the rates at which loans of similar
credit quality and maturity would be made as of March 31, 2007
and 2008.
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.