Toshiba 2002 Annual Report Download - page 45

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TOSHIBA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Less—allowance for doubtful accounts (925) (1,161) (7,708)
215,476 265,033 1,795,633
Less—current portion (64,320) (81,464) (536,000)
¥151,156 ¥183,569 $1,259,633
Other finance receivables ¥224,426 ¥250,223 $1,870,217
Less—allowance for doubtful accounts (13,351) (11,286) (111,258)
211,075 238,937 1,758,959
Less—current portion (101,870) (109,448) (848,917)
¥109,205 ¥129,489 $ 910,042
At March 31, 2003, the contractual maturities of minimum lease payments of the investment in financing leases and
the other finance receivables are as follows:
Investment in financing leases Other finance receivables
Thousands of Thousands of
Year ending March 31 Millions of yen U.S. dollars Millions of yen U.S. dollars
2004 ¥ 69,894 $ 582,450 ¥106,646 $ 888,717
2005 70,313 585,942 47,126 392,717
2006 49,423 411,858 25,632 213,600
2007 28,904 240,867 15,604 130,033
2008 12,468 103,900 9,496 79,133
Thereafter 869 7,241 19,922 166,017
¥231,871 $1,932,258 ¥224,426 $1,870,217
The Company has transferred trade accounts receivable, trade notes receivable and finance receivables under sev-
eral securitization programs. These securitization transactions are accounted for as a sale in accordance with SFAS
No. 140, because the Company has relinquished control of the receivables. Accordingly, the receivables sold under
these facilities are excluded from receivables in the accompanying consolidated balance sheets.
Upon the sale of receivables, the Company holds subordinated retained interests for certain trade account
receivable, trade notes receivable and finance receivables. A portion of these receivables, where the Company holds
subordinated retained interests, are not taken off the balance sheet and are recorded at their fair value. Such car-
rying value is adjusted to reflect the portion that is not expected to be collectible. As of March 31, 2003 and 2002,
the fair value of retained interest is ¥28,579 million ($238,158 thousand) and ¥31,617 million, respectively. The
Company recognized losses of ¥1,210 million ($10,083 thousand) and gains of ¥669 million on the securitizations
of receivables for the years ended March 31, 2003 and 2002, respectively.
Subsequent to sale, the Company retains collection and administrative responsibilities for the receivables.
Servicing fees received by the Company approximated the prevailing market rate. Related servicing assets or lia-
bilities are immaterial to the Company’s financial position.
The table below summarizes certain cash flows received from and paid to the securitization SPEs on the above
transactions.
Thousands of
Millions of yen U.S. dollars
Year ended March 31 2003 2002 2003
Proceeds from new securitizations ¥1,068,072 ¥876,660 $8,900,600
Servicing fees received 458 447 3,817
Cash flows received on retained interests 83,240 133,953 693,667
Purchases of delinquent and foreclosed
receivables 16 487 133
At March 31, 2003, key economic assumptions used to compute the fair value of retained interests are as follows:
Accounts Note Lease Other Finance
Receivables Receivables Receivables Receivables
Weighted-average life (in years) 0.15 0.18 1.95 0.13
Residual cash flows discount rate 1.40% 0.52%–0.63% 1.50%–2.70% 0.45%–0.85%
Quantitative information about delinquencies, net credit losses, and components of securitized receivables as of
and for the years ended March 31, 2003 and 2002 are as follows:
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