Toshiba 2000 Annual Report Download - page 64

62
The estimated fair values of the company’s financial instruments at March 31, 2000 and 1999 are summarized as follows:
Millions of yen Thousands of U.S. dollars
2000 1999 2000
Carrying Estimated Carrying Estimated Carrying Estimated
March 31 amount fair value amount fair value amount fair value
Nonderivatives:
Assets–
Marketable securities. . . . . . . . . . . . ¥ 93,140 ¥ 185,410 ¥ 124,017 ¥ 228,173 $ 878,679 $ 1,749,151
Other investments . . . . . . . . . . . . . . 139,534 174,869 128,020 155,828 1,316,358 1,649,708
Long-term finance receivables, net . . 116,961 119,443 109,661 110,717 1,103,406 1,126,821
Liabilities–
Long-term debt,
including current portion . . . . . . . . (1,380,097) (1,400,086) (1,414,257) (1,449,072) (13,019,783) (13,208,358)
Derivative financial instruments:
Forward exchange contracts . . . . . . 1,849 5,308 3,232 5,419 17,443 50,075
Interest rate swap agreements . . . . . –(3,416) –(5,777) –(32,226)
Currency swap agreements . . . . . . . 4,550 5,355 (3,122) (1,859) 42,925 50,519
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
and accounts payable, other and accrued expenses, 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 aggregate
carrying amount of these investments in non-public companies was ¥90,690 million ($855,566 thousand) and ¥73,549 million at
March 31, 2000 and 1999, respectively. However, the corresponding fair value of these investments at those dates was not computed
as such estimation was not practicable.
18. COMMITMENTS AND CONTINGENT LIABILITIES:
Commitments outstanding at March 31, 2000 for the purchase of property, plant and equipment approximated ¥13,279 million
($125,274 thousand).
Rental expense for the years ended March 31, 2000 and 1999 aggregated ¥79,299 million ($748,104 thousand) and ¥86,695
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, 2000, contingent liabilities, principally for loans guaranteed, approximated ¥483,017 million ($4,556,764 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 financial statements.