Toyota 2006 Annual Report Download - page 98

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96
In February 2006, FASB issued FAS No. 155, Accounting for
Certain Hybrid Instruments (“FAS 155”), which permits, but
does not require, fair value accounting for any hybrid financial
instrument that contains an embedded derivative that would
otherwise require bifurcation in accordance with FAS No. 133,
Accounting for Derivative Instruments and Hedging Activities
(“FAS 133”). The statement also subjects beneficial interests
issued by securitization vehicles to the requirements of FAS
133. FAS 155 is effective as of the beginning of first fiscal year
that begins after September 15, 2006. Management does not
expect this statement to have a material impact on Toyota’s
consolidated financial statements.
In March 2006, FASB issued FAS No. 156, Accounting for
Servicing of Financial Assets (“FAS 156”), which amends FAS
No. 140, Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities (“FAS 140”), with
respect to the accounting for separately recognized servicing
assets and servicing liabilities. FAS 156 is effective as of the
beginning of first fiscal year that begins after September 15,
2006, with earlier adoption permitted. Management does not
expect this statement to have a material impact on Toyota’s
consolidated financial statements.
Reclassifications—
Certain prior year amounts have been reclassified to conform
to the presentations for the year ended March 31, 2006.
U.S. dollar amounts presented in the consolidated financial
statements and related notes are included solely for the con-
venience of the reader and are unaudited. These translations
should not be construed as representations that the
yen amounts actually represent, or have been or could be
converted into, U.S. dollars. For this purpose, the rate of
¥117.47 = U.S. $1, the approximate current exchange rate at
March 31, 2006, was used for the translation of the accompa-
nying consolidated financial amounts of Toyota as of and for
the year ended March 31, 2006.
3. U.S. dollar amounts:
Cash payments for income taxes were ¥627,483 million,
¥694,985 million and ¥730,469 million ($6,218 million) for
the years ended March 31, 2004, 2005 and 2006, respective-
ly. Interest payments during the years ended March 31, 2004,
2005 and 2006 were ¥203,257 million, ¥226,615 million and
¥332,337 million ($2,829 million), respectively.
Capital lease obligations of ¥4,826 million, ¥3,571 million
and ¥6,673 million ($57 million) were incurred for the years
ended March 31, 2004, 2005 and 2006, respectively.
4. Supplemental cash flow information:
During the year ended March 31, 2004, Toyota acquired addi-
tional ownerships in the following four contract manufactur-
ers, Toyota Auto Body Corporation, Kanto Auto Works LTD,
Central Motor CO., LTD, and P.T. Toyota Motor
Manufacturing Indonesia. All of them are primarily engaged in
manufacturing Toyota brand vehicles. Until the date of each
acquisition, Toyota accounted for its investments in these con-
tract manufacturers by the equity method because Toyota was
considered to have significant influence of these companies.
Subsequent to the date of each acquisition, Toyota’s consoli-
dated financial statements include the accounts of these con-
tract manufacturers. The fair values of assets acquired and
liabilities assumed at the dates of acquisition based on the
allocation of the aggregate purchase price for these acquisi-
tions are as follows:
5. Acquisitions and dispositions:
Yen in millions
For the year ended
March 31, 2004
Assets acquired ........................................................................................................................................................................ ¥ 488,939
Liabilities assumed.................................................................................................................................................................... (372,277)
Minority interest....................................................................................................................................................................... (97,008)
Goodwill .................................................................................................................................................................................. 9,557
Less—Cash acquired................................................................................................................................................................. (11,703)
Net cash paid ........................................................................................................................................................................... ¥ 17,508