Toyota 2011 Annual Report Download - page 98

Lease commitments:
22
Other commitments and contingencies, concentrations and factors that may affect future operations:
23
0822
Financial Section and
Investor Information
Business and
Performance Review
Special FeatureMessage/Vision
Management and
Corporate Information
Notes to Consolidated Financial Statements
Toyota leases certain assets under capital lease and operating lease arrangements.
An analysis of leased assets under capital leases is as follows:
Amortization expenses under capital leases for the years ended March 31, 2009, 2010 and 2011
were ¥12,183 million, ¥12,606 million and ¥13,341 million ($160 million), respectively.
Future minimum lease payments under capital leases together with the present value of the net
minimum lease payments as of March 31, 2011 are as follows:
Rental expenses under operating leases for the years ended March 31, 2009, 2010 and 2011 were
¥106,653 million, ¥93,994 million and ¥89,029 million ($1,071 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,
2011 are as follows:
Yen in millions U.S. dollars in millions
March 31, March 31,
Class of property 2010 2011 2011
Building ¥23,518 ¥13,412 $161
Machinery and equipment 48,043 30,283 364
Less - Accumulated depreciation (36,926) (18,590) (223)
¥34,635 ¥25,105 $302
Years ending March 31, Yen in millions U.S. dollars in millions
2012 ¥ 5,192 $ 62
2013 3,741 45
2014 2,516 30
2015 2,248 27
2016 1,971 24
Thereafter 13,981 168
Total minimum lease payments 29,649 356
Less - Amount representing interest (7,732) (93)
Present value of net minimum lease payments 21,917 263
Less - Current obligations (4,283) (51)
Long-term capital lease obligations ¥17,634 $212
Years ending March 31, Yen in millions U.S. dollars in millions
2012 ¥ 9,198 $111
2013 7,439 89
2014 5,687 68
2015 4,648 56
2016 4,061 49
Thereafter 13,146 158
Total minimum future rentals ¥44,179 $531
Commitments outstanding at March 31, 2011 for
the purchase of property, plant and equipment
and other assets totaled ¥83,506 million ($1,004
million).
Toyota enters into contracts with Toyota dealers to
guarantee customers’ payments of their install-
ment 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, 2011,
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, 2011 is ¥1,662,225
million ($19,991 million). Liabilities for guarantees
totaling ¥20,450 million ($246 million) have been
provided as of March 31, 2011. Under these
guarantee contracts, Toyota is entitled to recover
any amount paid by Toyota from the customers
whose original obligations Toyota has guaranteed.
From time-to-time, Toyota issues vehicle recalls
and takes other safety measures including safety
campaigns relating to its vehicles. In November
2009, Toyota announced a safety campaign in
North America for certain models of Toyota and
Lexus vehicles related to floor 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
Commitments
Guarantees
Legal Proceedings
Product Recalls
98TOYOTA ANNUAL REPORT 2011