Hitachi 2010 Annual Report Download - page 73

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Hitachi, Ltd. Annual Report 2010
As of March 31, 2010 and 2009, the Company and its subsidiaries have three QSPEs with outstanding balances of transferred
receivables and the total amount of their assets was ¥117,159 million ($1,259,774 thousand) and ¥164,863 million,
respectively. The Company and its subsidiaries do not hold any of the voting shares issued by those QSPEs, and none of
the directors of those QSPEs are executives or employees of the Company or its subsidiaries. Additionally, the QSPEs also
purchase receivables from third-party customers.
The transferred assets have similar risks and characteristics to the Company’s and subsidiaries’ receivables recorded on the
consolidated balance sheets. Accordingly, the performance, such as collections or expected credit loss, of these transferred
assets has been similar to the receivables recorded on the consolidated balance sheets; however, the blended performance
of the pools of transferred assets reflects the eligibility screening requirements that the Company and subsidiaries apply to
determine which receivables are selected for transfer. Therefore, the blended performance may differ from receivables recorded
on the consolidated balance sheets.
Hitachi Capital Corporation and certain other financing subsidiaries sold lease receivables to SPEs that are not QSPEs. For
the years ended March 31, 2010, 2009 and 2008, net gains recognized on the sale of these lease receivables amounted to
¥10,017 million ($107,710 thousand), ¥13,975 million and ¥17,440 million, respectively. The subsidiaries retained servicing
responsibilities, but did not record a servicing asset or liability because the cost to service the receivables approximated the
servicing income.
The table below summarizes cash flows received from and paid to the SPEs during the years ended March 31, 2010, 2009
and 2008:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2008 2010
Proceeds from transfer of lease receivables . . . . . . . . . . . . . ¥167,483 ¥254,211 ¥310,898 $1,800,892
Servicing fees received . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 78 78 774
Purchases of delinquent or ineligible assets . . . . . . . . . . . . . (60,983) (46,760) (26,610) (655,731)
Quantitative information about delinquencies, net credit losses, and components of lease receivables subject to transfer and
other assets managed together as of and for the years ended March 31, 2010 and 2009 is as follows:
Millions of yen Thousands of U.S. dollars
Total
principal
amount of
receivables
Principal
amount of
receivables
90 days or
more past due
Net credit
loss
Total
principal
amount of
receivables
Principal
amount of
receivables
90 days or
more past due
Net credit
loss
2010 2010
Total assets managed or transferred:
Lease receivables . . . . . . . . . . . . ¥1,103,804 ¥243 ¥1,943 $11,868,860 $2,613 $20,892
Assets transferred . . . . . . . . . . . . (491,038) (5,279,978)
Assets held in portfolio . . . . . . . . . . . ¥ 612,766 $ 6,588,882
Millions of yen
Total
principal
amount of
receivables
Principal
amount of
receivables
90 days or
more past due
Net credit
loss
2009
Total assets managed or transferred:
Lease receivables . . . . . . . . . . . . ¥1,172,350 ¥218 ¥1,779
Assets transferred . . . . . . . . . . . . (599,872)
Assets held in portfolio . . . . . . . . . . . ¥ 572,478
As of March 31, 2010 and 2009, the amount of the subordinated interests measured at fair value relating to these securitizations
of lease receivables was ¥77,756 million ($836,086 thousand) and ¥87,247 million, respectively.