Toshiba 2004 Annual Report Download - page 53

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51
Other finance receivables represent transactions in a variety of forms, including commercial loans, and installment
sales of consumer products manufactured by the Company.
Finance receivables comprise the following:
Thousands of
Millions of yen U.S. dollars
March 3 1 2004 2003 2004
Investment in financing leases:
Total minimum lease payments receivable ¥ 36,788 ¥ 231,871 $ 347,057
Executory costs (807) (4,256) (7,6 13)
Unearned income (691) (11,214) (6,519 )
35,290 216,401 332,925
Less—allowance for doubtful accounts (216) (925) (2,038)
35,0 74 215,476 330,887
Less—current portion (10,81 7) (64,320) (102,047)
¥ 24,257 ¥ 151,156 $ 228,840
Other finance receivables ¥ 12,142 ¥ 224,426 $ 114,5 47
Less—allowance for doubtful accounts (58) (13,351) (547)
12,0 84 211,075 114,000
Less—current portion (6,454) (101,870) (60,887)
¥ 5,630 ¥ 109,205 $ 53,113
At March 31, 2004, the contractual maturities of minimum lease payments of the investment in financing leases and
the other finance receivables are as follows:
Investment in financing leases Other finance receivables
Thousands of Thousands of
Years ending March 31 Millions of yen U.S. dollars Millions of yen U.S. dollars
2005 ¥11,296 $106,566 ¥ 6,466 $ 61,000
2006 9,291 87,651 2,009 18,953
2007 7,268 68,566 1,600 15,094
2008 4,958 46,774 1,078 10,170
2009 2,524 23,811 638 6,019
Thereafter 1,451 13,689 351 3,311
¥36,788 $347,057 ¥12,142 $114,547
The Company has transferred trade accounts receivable, trade notes receivable and finance receivables under several
securitization programs. These securitization transactions are accounted for as a sale in accordance with SFAS No.
140, because the Company has relinquished control of the receivables. Accordingly, the receivables sold under these
facilities are excluded from receivables in the accompanying consolidated balance sheets.
Upon the sale of receivables, the Company holds subordinated retained interests for certain trade accounts
receivable, trade notes receivable and finance receivables. A portion of these receivables, where the Company holds
subordinated retained interests, are not taken off the balance sheet and are recorded at their fair value. Such carrying
value is adjusted to reflect the portion that is not expected to be collectible. As of March 31, 2004 and 2003, the fair
value of retained interest is ¥21,976 million ($207,321 thousand) and ¥28,579 million, respectively. The Company
recognized losses of ¥1,138 million ($10,736 thousand) and ¥1,210 million on the securitizations of receivables for
the years ended March 31, 2004 and 2003, respectively.
Subsequent to sale, the Company retains collection and administrative responsibilities for the receivables.
Servicing fees received by the Company approximated the prevailing market rate. Related servicing assets or liabilities
are immaterial to the Company’s financial position.
The table below summarizes certain cash flows received from and paid to the securitization special purpose entities
(“ SPEs” ) on the above transactions.