Toyota 2010 Annual Report Download - page 90

TOYOTA ANNUAL REPORT 2010 88
Amortization expenses under capital leases for the years ended March 31, 2008, 2009 and 2010 were
¥7,846 million, ¥12,183 million and ¥12,606 million ($135 million), respectively.
Future minimum lease payments under capital leases together with the present value of the net
minimum lease payments as of March 31, 2010 are as follows:
Years ending March 31,
Yen in
millions
U.S. dollars
in millions
2011 ········································································································································································· ¥ 26,327 $ 283
2012 ········································································································································································· 3,585 39
2013 ········································································································································································· 2,366 25
2014 ········································································································································································· 2,028 22
2015 ········································································································································································· 1,795 19
Thereafter ····························································································································································· 16,413 176
Total minimum lease payments ··········································································································· 52,514 564
Less ‒ Amount representing interest ···································································································· (10,271) (110)
Present value of net minimum lease payments ·········································································· 42,243 454
Less ‒ Current obligations ··························································································································· (24,089) (259)
Long-term capital lease obligations ·································································································· ¥ 18,154 $ 195
Rental expenses under operating leases for the years ended March 31, 2008, 2009 and 2010 were
¥100,319 million, ¥106,653 million and ¥93,994 million ($1,010 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,
2010 are as follows:
Years ending March 31,
Yen in
millions
U.S. dollars
in millions
2011 ·········································································································································································· ¥ 9,900 $106
2012 ·········································································································································································· 8,136 87
2013 ·········································································································································································· 6,493 70
2014 ·········································································································································································· 5,029 54
2015 ·········································································································································································· 4,273 46
Thereafter ······························································································································································ 18,122 195
Total minimum future rentals ················································································································· ¥51,953 $558
Commitments
Commitments outstanding at March 31, 2010 for
the purchase of property, plant and equipment
and other assets totaled ¥74,529 million ($801
million).
Guarantees
Toyota enters into contracts with Toyota dealers
to guarantee customers payments of their
installment payables that arise from installment
contracts between customers and Toyota dealers,
as and when requested by Toyota dealers.
Guarantee periods are set to match maturity of
installment payments, and at March 31, 2010,
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 customers are unable
to make required payments. The maximum
potential amount of future payments as of March
31, 2010 is ¥1,604,893 million ($17,249 million).
Liabilities for guarantees totaling ¥5,969 million
($64 million) have been provided as of March 31,
2010. Under these guarantee contracts, Toyota is
entitled to recover any amount paid by Toyota
from the customers whose original obligations
Toyota has guaranteed.
Legal proceedings
Product Recalls
From time-to-time, Toyota issues vehicle recalls
and takes other safety measures including
safety campaigns in its vehicles. In November
2009, Toyota announced a safety campaign in
North America for certain models of Toyota and
Lexus vehicles related to fl oor mat entrapment
of accelerator pedals, and later expanded it
to include additional models. In January 2010,
Toyota announced a recall in North America
for certain models of Toyota vehicles related to
sticking and slow-to-return accelerator pedals.
Also in January 2010, Toyota recalled in Europe
and China certain models of Toyota vehicles
related to sticking accelerator pedals. In February
2010, Toyota announced a worldwide recall
related to the software program that controls the
antilock braking system (ABS) in certain vehicles
models including the Prius. Set forth below is a
description of the various claims, lawsuits and
government investigations against Toyota in the
United States relating to recalls and other safety
measures.
<Class Action Litigation>
There are approximately 200 putative class
actions that have been fi led since November
2009 alleging that certain Toyota, Lexus and
Scion vehicles contain defects that lead to
unintended acceleration. Many of the putative
class actions allege that malfunctions involving
the fl oor mats and accelerator pedals do not
cover the full scope of possible defects related
to unintended acceleration. Rather, they allege
that Electronic Throttle Control-intelligent
(ETCS-i) is the true cause and that Toyota has
failed to inform consumers despite its awareness
of the problem. In general, these cases seek
recovery for the alleged diminution in value of
the vehicles, injunctive and other relief. In April
2010, the approximately 190 federal cases were
consolidated for most purposes into a single
multi-district litigation in the United States
District Court for the Central District of California.
In addition, around half of the approximately 125
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Notes to Consolidated Financial Statements
Other commitments and contingencies, concentrations and factors that may aff ect future operations :
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