Toyota 2009 Annual Report Download - page 96

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Financial Section
TOYOTA MOTOR CORPORATION
94
Commitments outstanding at March 31, 2009 for the purchase
of property, plant and equipment and other assets totaled
¥110,874 million ($1,129 million).
Toyota enters into contracts with Toyota dealers to guarantee
customers’ payments of their installment payables that arise
from installment contracts between customers and Toyota deal-
ers, as and when requested by Toyota dealers. Guarantee peri-
ods are set to match maturity of installment payments, and at
March 31, 2009, range from 1 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 cus-
tomers are unable to make required payments. The maximum
potential amount of future payments as of March 31, 2009 is
¥1,570,497 million ($15,988 million). Liabilities for guarantees
totaling ¥5,301 million ($54 million) have been provided as of
March 31, 2009. Under these guarantee contracts, Toyota is enti-
tled to recover any amount paid by Toyota from the customers
whose original obligations Toyota has guaranteed.
In February 2003, Toyota, General Motors Corporation, Ford,
DaimlerChrysler, Honda, Nissan and BMW and their U.S. and
Canadian sales and marketing subsidiaries, the National
Automobile Dealers Association and the Canadian Automobile
Dealers Association were named as defendants in purported
nationwide class actions on behalf of all purchasers of new
motor vehicles in the United States since January 1, 2001. 26
similar actions were filed in federal district courts in California,
Illinois, New York, Massachusetts, Florida, New Jersey and
Pennsylvania. Additionally, 56 parallel class actions were filed in
state courts in California, Minnesota, New Mexico, New York,
Tennessee, Wisconsin, Arizona, Florida, Iowa, New Jersey and
Nebraska on behalf of the same purchasers in these states. As
of April 1, 2005, actions filed in federal district courts were con-
solidated in Maine and actions filed in the state courts of
California and New Jersey were also consolidated, respectively.
The nearly identical complaints allege that the defendants
violated the Sherman Antitrust Act by conspiring among them-
selves and with their dealers to prevent the sale to United States
citizens of vehicles produced for the Canadian market. The
complaints allege that new vehicle prices in Canada are 10% to
30% lower than those in the United States and that preventing
the sale of these vehicles to United States citizens resulted in
United States consumers paying excessive prices for the same
Other commitments and contingencies, concentrations and factors that may affect future operations:
23
Amortization expenses under capital leases for the years ended March 31, 2007, 2008 and 2009 were ¥10,559 million, ¥7,846 million
and ¥12,183 million ($124 million), respectively.
Future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of March
31, 2009 are as follows:
U.S. dollars
Years ending March 31, Yen in millions in millions
2010........................................................................................................................................................................... ¥ 12,688 $ 129
2011........................................................................................................................................................................... 24,166 246
2012........................................................................................................................................................................... 4,071 41
2013........................................................................................................................................................................... 2,141 22
2014........................................................................................................................................................................... 1,867 19
Thereafter ................................................................................................................................................................. 17,545 179
Total minimum lease payments ...................................................................................................................... 62,478 636
Less—Amount representing interest ..................................................................................................................... (11,112) (113)
Present value of net minimum lease payments ............................................................................................. 51,366 523
Less—Current obligations ...................................................................................................................................... (11,188) (114)
Long-term capital lease obligations ............................................................................................................... ¥ 40,178 $ 409
Rental expenses under operating leases for the years ended March 31, 2007, 2008 and 2009 were ¥107,301 million, ¥100,319 million
and ¥106,653 million ($1,086 million), respectively.
The minimum rental payments required under operating leases relating primarily to land, buildings and equipment having initial or
remaining non-cancelable lease terms in excess of one year at March 31, 2009 are as follows:
U.S. dollars
Years ending March 31, Yen in millions in millions
2010........................................................................................................................................................................... ¥11,567 $118
2011........................................................................................................................................................................... 8,593 87
2012........................................................................................................................................................................... 6,864 70
2013........................................................................................................................................................................... 5,530 56
2014........................................................................................................................................................................... 3,973 40
Thereafter ................................................................................................................................................................. 17,634 180
Total minimum future rentals .......................................................................................................................... ¥54,161 $551