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Page
64.
TOSHIBA ANNUAL REPORT 1999
The estimated fair values of the company’s financial instruments at March 31, 1999 and 1998 are summarized as follows:
Millions of yen Thousands of U.S. dollars
1999 1998 1999
Carrying Estimated Carrying Estimated Carrying Estimated
March 31 amount fair value amount fair value amount fair value
Nonderivatives:
Assets–
Marketable securities . . . . . . . . . ¥ 124,017 ¥ 228,173 ¥ 120,748 ¥ 249,998 $ 1,024,934 $ 1,885,727
Other investments . . . . . . . . . . . 128,020 155,828 136,992 201,194 1,058,017 1,287,835
Long-term finance
receivables, net . . . . . . . . . . . . . 109,661 110,717 107,520 110,655 906,289 915,017
Liabilities–
Long-term debt,
including current portion . . . . (1,414,257) (1,449,072) (1,379,902) (1,402,365) (11,688,074) (11,975,802)
Derivative financial instruments:
Forward exchange contracts . . . 3,232 5,419 (1,037) (1,999) 26,711 44,785
Interest rate swap agreements . . – (5,777) – (5,146) – (47,744)
Currency swap agreements . . . . (3,122) (1,859) (2,508) (2,218) (25,802) (15,364)
The above table excludes the financial instruments for which fair values approximate their carrying values and those related
to leasing activities.
In assessing the fair value of these financial instruments, the company has used a variety of methods and assumptions, which
were based on estimates of market conditions and risks existing at that time. For certain instruments, including cash and cash
equivalents, notes and accounts receivable, trade, finance receivables, net, short-term borrowings, notes payable, trade, accounts
payable, trade, notes and accounts payable for construction and employees’ savings deposits, it was assumed that the carrying
amount approximated fair value for the majority of these instruments because of their short maturities. Quoted market prices
were used for marketable securities and a part of other investments. Other techniques, such as estimated discounted value of
future cash flows, and replacement cost, have been used to determine fair value for the remaining financial instruments. These
estimated fair values are not necessarily indicative of the amounts that could be realized in a current market exchange.
Other investments includes investment securities which represent holdings in a number of non-public companies. The aggre-
gate carrying amount of these investments in non-public companies was ¥73,549 million ($607,843 thousand) and ¥48,591
million at March 31, 1999 and 1998, respectively. However, the corresponding fair value of these investments at those dates was
not computed as such estimation was not practicable.
17. COMMITMENTS AND CONTINGENT LIABILITIES:
Commitments outstanding at March 31, 1999 for the purchase of property, plant and equipment approximated ¥36,648 million
($302,876 thousand).
Rental expense for the years ended March 31, 1999 and 1998 aggregated ¥100,365 million ($829,463 thousand) and ¥99,979
million, respectively. Substantially all such rental expenses are related to cancellable leases for office space, warehouses, and
employees’ residential facilities. Such leases are customarily renewed.
At March 31, 1999, contingent liabilities, principally for loans guaranteed, approximated ¥472,325 million ($3,903,512 thousand).
Management of the company believes that there are no legal actions pending against the company and its subsidiaries
which could result in damages against the company which would have a material effect on the company’s consolidated finan-
cial statements.