Toyota 2007 Annual Report Download - page 111

ANNUAL REPORT 2007 109
An analysis of the allowance for credit losses relating to finance receivables and vehicles and equipment on operating leases for
the years ended March 31, 2005, 2006 and 2007 is as follows:
U.S. dollars
Yen in millions in millions
For the year
ended
For the years ended March 31, March 31,
2005 2006 2007 2007
Allowance for credit losses at beginning of year .............................................. ¥87,462 ¥ 91,829 ¥101,383 $859
Provision for credit losses.................................................................................... 47,402 52,285 72,703 616
Charge-offs, net of recoveries ............................................................................ (44,587) (50,324) (63,879) (541)
Other..................................................................................................................... 1,552 7,593 1,909 16
Allowance for credit losses at end of year............................................. ¥91,829 ¥101,383 ¥112,116 $950
The other amount primarily includes the impact of currency translation adjustments for the years ended March 31, 2005, 2006 and 2007.
The other amount includes the impact of consolidation and
deconsolidation of certain entities due to changes in ownership
interest and currency translation adjustments for the years
ended March 31, 2005, 2006 and 2007.
A portion of the allowance for doubtful accounts balance at
March 31, 2006 and 2007 totaling ¥42,597 million and ¥33,284
million ($282 million), respectively, is attributed to certain non-
current receivable balances which are reported as other assets
in the consolidated balance sheets.
Investments in and transactions with affiliated companies—
Summarized financial information for affiliated companies accounted for by the equity method is shown below:
U.S. dollars
Yen in millions in millions
March 31, March 31,
2006 2007 2007
Current assets ........................................................................................................................ ¥ 6,259,683 ¥ 7,355,056 $ 62,305
Noncurrent assets.................................................................................................................. 10,148,606 11,352,883 96,170
Total assets..................................................................................................................... ¥16,408,289 ¥18,707,939 $158,475
Current liabilities.................................................................................................................... ¥ 4,925,104 ¥ 5,753,115 $ 48,735
Long-term liabilities............................................................................................................... 5,262,042 5,945,795 50,367
Shareholders’ equity.............................................................................................................. 6,221,143 7,009,029 59,373
Total liabilities and shareholders’ equity..................................................................... ¥16,408,289 ¥18,707,939 $158,475
Toyota’s share of shareholders’ equity ................................................................................ ¥ 1,820,717 ¥ 2,027,281 $ 17,173
Number of affiliated companies accounted for by the equity method at end of period..... 56 56
U.S. dollars
Yen in millions in millions
For the year ended
For the years ended March 31, March 31,
2005 2006 2007 2007
Net revenues......................................................................................... ¥15,359,634 ¥18,332,304 ¥23,368,250 $197,952
Gross profit ........................................................................................... ¥ 1,900,344 ¥ 2,197,699 ¥ 2,642,377 $ 22,384
Net income ........................................................................................... ¥ 420,640 ¥ 559,686 ¥ 701,816 $ 5,945
12. Affiliated companies and variable interest entities:
Entities comprising a significant portion of Toyota’s invest-
ment in affiliated companies include Denso Corporation; Aioi
Insurance Co., Ltd.; Toyota Industries Corporation; Aisin Seiki
Co., Ltd.; and Toyota Tsusho Corporation.
Certain affiliated companies accounted for by the equity
method with carrying amounts of ¥1,487,708 million and
¥1,683,093 million ($14,257 million) at March 31, 2006 and 2007,
respectively, were quoted on various established markets at an
aggregate value of ¥2,818,476 million and ¥2,800,848 million
($23,726 million), respectively.
Account balances and transactions with affiliated companies are presented below:
U.S. dollars
Yen in millions in millions
March 31, March 31,
2006 2007 2007
Trade accounts and notes receivable, and other receivables ........................................... ¥221,006 ¥256,761 $2,175
Accounts payable and other payables................................................................................. 551,514 605,598 5,130