Toyota 2007 Annual Report Download - page 91

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ANNUAL REPORT 2007 89
Related Party Transactions
Toyota does not have any significant related party transactions
other than transactions with affiliated companies in the ordinary
course of business as described in note 12 to the consolidated
financial statements.
Legislation Regarding End-of-Life Vehicles
In October 2000, the European Union enforced a directive that
requires member states to promulgate regulations implementing
the following:
• manufacturers shall bear all or a significant part of the costs
for taking back end-of-life vehicles put on the market after
July 1, 2002 and dismantling and recycling those vehicles.
Beginning January 1, 2007, this requirement will also be
applicable to vehicles put on the market before July 1, 2002;
• manufacturers may not use certain hazardous materials in
vehicles sold after July 2003;
• vehicles type-approved and put on the market after
December 15, 2008, shall be re-usable and/or recyclable to
a minimum of 85% by weight per vehicle and shall be re-
usable and/or recoverable to a minimum of 95% by weight
per vehicle; and
• end-of-life vehicles must meet actual re-use of 80% and re-
use as material or energy of 85%, respectively, of vehicle
weight by 2006, rising to 85% and 95%, respectively, by 2015.
See note 23 to the consolidated financial statements for fur-
ther discussion.
Recent Accounting Pronouncements
in the United States
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 instru-
ment 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 securi-
tization vehicles to the requirements of FAS133. FAS 155 is effec-
tive 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 account-
ing for separately recognized servicing assets and servicing liabili-
ties. FAS 156 is effective for fiscal year beginning after September
15, 2006. Management does not expect this Statement to have a
material impact on Toyota’s consolidated financial statements.
The following tables summarize Toyota’s contractual obligations and commercial commitments as of March 31, 2007:
Yen in millions
Payments Due by Period
Total Less than 1 year 1 to 3 years 3 to 5 years 5 years and after
Contractual Obligations:
Short-term borrowings (note 13)
Loans ........................................................................................ ¥ 1,055,918 ¥1,055,918
Commercial paper................................................................... 2,441,473 2,441,473
Long-term debt* (note 13) .......................................................... 8,580,815 2,355,863 ¥3,359,711 ¥1,634,152 ¥1,231,089
Capital lease obligations (note 13)............................................. 50,886 12,253 13,235 24,303 1,095
Non-cancelable operating lease obligations (note 22) ............ 56,141 11,364 15,345 9,862 19,570
Commitments for the purchase of property,
plant and other assets (note 23) ............................................... 132,443 87,310 21,951 21,061 2,121
Total.......................................................................................... ¥12,317,676 ¥5,964,181 ¥3,410,242 ¥1,689,378 ¥1,253,875
* “Long-term debt” represents future principal payments.
Toyota expects to contribute ¥132,447 million to its pension plans in during fiscal 2008.
Yen in millions
Total Amount of Commitment Expiration Per Period
Amounts
Committed Less than 1 year 1 to 3 years 3 to 5 years 5 years and after
Commercial Commitments:
Maximum potential exposure to guarantees given
in the ordinary course of business (note 23)............................ ¥1,333,961 ¥417,260 ¥610,228 ¥246,190 ¥60,283
Total Commercial Commitments........................................... ¥1,333,961 ¥417,260 ¥610,228 ¥246,190 ¥60,283