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36 Toshiba Corporation 130th Anniversary
Thousands of U.S.dollars
2005
Carrying Estimated
March 31 amount fair value
Nonderivatives:
Assets:
Long-term finance receivables, net $—$—
Liabilities:
Long-term debt, including current portion (8,108,215) (8,178,804)
Derivative financial instruments:
Forward exchange contracts 8,822 8,822
Interest rate swap agreements (2,664) (2,664)
Currency swap agreements 11,047 11,047
Currency options 1,533 1,533
The above table excludes the financial instruments for which fair values approximate their carrying amounts and those
related to leasing activities. The table also excludes marketable securities and other investments which are disclosed in
Note 4.
In assessing the fair value of these financial instruments, the Company uses a variety of methods and assumptions,
which are 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 is assumed that the carrying
amount approximated fair value for the majority of these instruments because of their short maturities. Quoted market
prices are used for a part of marketable securities and other investments. Other techniques, such as estimated discounted
value of future cash flows, and replacement cost, are 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.
21. LEASES
> LESSEE The Company leases manufacturing equipment, office and warehouse space, and certain other assets
under operating leases. Rent expenses under such leases for the years ended March 31, 2005 and 2004 were ¥82,174
million ($767,981 thousand) and ¥83,889 million, respectively.
The Company also leases certain machinery and equipment which are accounted for as capital leases from TFC and
Toshiba Medical Finance Co., Ltd., affiliates of the Company. The costs under capital leases as of March 31, 2005 and 2004
were approximately ¥91,000 million ($850,467 thousand) and ¥87,000 million, respectively. Accumulated amortization
of the machinery and equipment under capital leases as of March 31, 2005 and 2004 were approximately ¥45,000 million
($420,561 thousand) and ¥41,300 million, respectively.
Minimum lease payments for the Company’s capital and non-cancelable operating leases as of March 31, 2005 are
as follows:
Millions of yen Thousands of U.S. dollars
Year ending March 31 Capital leases Operating leases Capital leases Operating leases
2006 ¥ 17,648 ¥14,996 $ 164,935 $140,150
2007 15,261 13,518 142,626 126,336
2008 9,966 7,443 93,140 69,561
2009 5,733 4,727 53,580 44,178
2010 1,533 3,110 14,327 29,065
Thereafter 171 2,999 1,598 28,028
Total minimum lease payments 50,312 ¥46,793 470,206 $437,318
Executory costs (2,266) (21,178)
Amounts representing interest (1,944) (18,168)
Present value of net minimum lease payments 46,102 430,860
Less—current portion (15,835) (147,991)
¥ 30,267 $ 282,869