Toyota 2005 Annual Report Download - page 71

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS >69
Yen in millions
Payments Due by Period
Less than 1 to 3 3 to 5 5 years and
Total 1 year years years after
Contractual Obligations:
Short-term borrowings (note 13)
Loans................................................................... ¥ 789,801 ¥ 789,801
Commercial paper.............................................. 1,592,026 1,592,026
Long-term debt* (note 13) .................................... 6,094,565 1,133,876 ¥2,486,313 ¥1,546,951 ¥927,425
Capital lease obligations (note 13) ........................ 71,280 17,044 24,988 9,493 19,755
Non-cancelable operating lease
obligations (note 22) ............................................ 43,151 8,649 12,010 7,837 14,655
Commitments for the purchase of property,
plant and other assets (note 23) .......................... 87,617 80,026 7,591 — —
Total ................................................................ ¥8,678,440 ¥3,621,422 ¥2,530,902 ¥1,564,281 ¥961,835
*“Long-term debt” represents future principal payments.
Toyota expects to contribute ¥83,862 million to its pension plan in the year ending March 31, 2006.
Yen in millions
Amount of Commitment Expiration Per Period
Total
Amounts Less than 1 to 3 3 to 5 5 years and
Committed 1 year years years after
Commercial Commitments:
Maximum potential exposure to guarantees
given in the ordinary course of business
(note 23) ............................................................... ¥1,139,638 ¥372,904 ¥515,551 ¥196,283 ¥54,900
Total Commercial Commitments ................. ¥1,139,638 ¥372,904 ¥515,551 ¥196,283 ¥54,900
to the risks assumed in entering into the credit facility.
Toyota’s financial services operation also provides financing
to various multi-franchise dealer organizations, referred to
as dealer groups, often as part of a lending consortium, for
wholesale inventory financing, business acquisitions, facilities
refurbishment, real estate purchases, and working capital
requirements. Toyota’s outstanding credit facilities with
dealers totaled ¥1,169.5 billion as of March 31, 2005.
Guarantees
Toyota enters into certain guarantee contracts with its 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 the
maturity of installment payments, and at March 31, 2005
range from one 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 maxi-
mum potential amount of future payments as of March 31,
2005 is ¥1,139.6 billion. Liabilities for these guarantees of
¥3.7 billion have been provided as of March 31, 2005.
Under these guarantee contracts, Toyota is entitled to
recover any amounts paid by it from the customers whose
obligations it guaranteed.
CONTRACTUAL OBLIGATIONS AND COMMITMENTS
For information regarding debt obligations, capital lease
obligations, operating leases, and other obligations, including
amounts maturing in each of the next five years, see notes 13,
22 and 23 to the consolidated financial statements. In addi-
tion, as part of Toyota’s normal business practices, Toyota
enters into long-term arrangements with suppliers for
purchases of certain raw materials, components and services.
These arrangements may contain fixed/minimum quantity
purchase requirements. Toyota enters into such arrange-
ments to facilitate an adequate supply of these materials and
services.
The following tables summarize Toyota’s contractual obliga-
tions and commercial commitments as of March 31, 2005: