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50. Toshiba Corporation Annual Report 1998
In assessing the fair value of these finan cial in struments, th e com pany has used a variety of m ethods an d assum p-
tion s, wh ich were based on estimates of m arket condition s and risks existing at that tim e. For certain in strum en ts,
includin g cash an d cash equivalents, n otes an d accoun ts receivable, trade, finan ce receivables, n et, sh ort-term
borrowin gs, n otes payable, trade, accoun ts payable, trade, notes an d accounts payable for construction an d em ployees’
savin gs deposits, it was assum ed that th e carrying am oun t approxim ated fair value for th e m ajority of these in stru-
m en ts because of their short maturities. Quoted m arket prices were used for m arketable securities an d a part of oth er
investm en ts. Oth er tech n iques, such as estim ated discoun ted value of future cash flows, an d replacem ent cost, have
been used to determ in e fair value for the rem ain ing finan cial in strum en ts. These estim ated fair values are n ot neces-
sarily in dicative of the amoun ts th at could be realized in a curren t market exch ange.
Other investm en ts includes investm ent securities wh ich represent holdings in a n um ber of non-public com panies.
The aggregate carrying am oun t of these investm en ts in non-public com panies was ¥48,591 million ($368,114
th ousand) an d ¥47,028 m illion at March 31, 1998 and 1997, respectively. However, the correspon ding fair value of
th ese investm ents at those dates was n ot com puted as such estim ation was not practicable.
17. COMMITMENTS AND CONTINGENT LIABILITIES:
Com m itm en ts outstan ding at March 31, 1998 for the purch ase of property, plant and equipm ent approximated
¥65,556 m illion ($496,636 thousan d).
Rental expen se for the years ended March 31, 1998 and 1997 aggregated ¥99,979 million ($757,417 th ousand) an d
¥98,824 m illion , respectively. Substantially all such rental expenses are related to cancellable leases for office space,
warehouses, an d em ployees’ residen tial facilities. Such leases are custom arily ren ewed.
At March 31, 1998, con tin gen t liabilities, principally for loan s guaranteed, approximated ¥334,009 m illion
($2,530,371 thousan d).
Man agem ent of the com pan y believes that th ere are n o legal actions pen ding against the com pan y and its
subsidiaries wh ich could result in dam ages against the com pan y wh ich would h ave a m aterial effect on the
com pany’s con solidated finan cial statem ents.