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73
Hitachi, Ltd. Annual Report 2010
As of March 31, 2010 and 2009, the amount of the subordinated interests relating to these securitizations of trade receivables
excluding mortgage loans receivable was ¥45,249 million ($486,548 thousand) and ¥20,807 million, respectively.
A portion of these trade receivables excluding mortgage loans receivable was transferred to QSPEs. The aggregate cash
received from and paid to the QSPEs for the years ended March 31, 2010 and 2009, and the outstanding balance as of
March 31, 2010 and 2009, are summarized as follows:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2010
Proceeds from transfer of trade receivables . . . . . . . . . . . . . . . . . . . . . ¥362,147 ¥490,647 $3,894,054
Net loss recognized on those transfers . . . . . . . . . . . . . . . . . . . . . . . . (616) (993) (6,624)
Outstanding balance of transferred receivables . . . . . . . . . . . . . . . . . . 75,654 98,214 813,484
Hitachi Capital Corporation sold mortgage loans receivable to SPEs that are not QSPEs. For the years ended March 31, 2010,
2009 and 2008, no proceeds from the transfer of mortgage loans receivable were recorded. The subsidiary retained servicing
responsibilities but did not record a servicing asset or liability because the cost to service the receivables approximated the
servicing income.
Quantitative information about delinquencies, net credit loss, and components of mortgage loans receivable 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:
Mortgage loans receivable . . . . . . ¥ 224,449 ¥– ¥12 $ 2,413,430 $– $129
Assets transferred . . . . . . . . . . . . (210,834) (2,267,032)
Assets held in portfolio . . . . . . . . . . . ¥ 13,615 $ 146,398
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:
Mortgage loans receivable . . . . . . ¥ 247,058 ¥0 ¥69
Assets transferred . . . . . . . . . . . . (232,553)
Assets held in portfolio . . . . . . . . . . . ¥ 14,505
As of March 31, 2010 and 2009, the amount of the subordinated interests measured at fair value relating to securitizations
of mortgage loans receivable was ¥37,661 million ($404,957 thousand) and ¥36,218 million respectively.
Key economic assumptions used in measuring the fair value of the subordinated interests relating to securitizations of mortgage
loans receivable as of March 31, 2010 and 2009 are as follows:
2010 2009
Weighted average life (in years) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.4 11.4
Expected credit loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.02% 0.01%
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.89–3.41% 1.76–2.03%
Prepayment rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.33% 1.00%