Toshiba 2006 Annual Report Download - page 69

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23
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The proceeds from sales of available-for-sale securities for the years ended March 31, 2006 and 2005 were ¥7,513 million
($64,214 thousand) and ¥11,367 million, respectively. The gross realized gains on those sales for the years ended March 31,
2006 and 2005 were ¥5,676 million ($48,513 thousand) and ¥4,980 million, respectively. The gross realized losses on those
sales for the years ended March 31, 2006 and 2005 were ¥7 million ($60 thousand) and ¥107 million, respectively.
Included in other expense are charges of ¥4,984 million ($42,598 thousand) and ¥4,892 million related to other-than-tempo-
rary declines in the marketable and non-marketable equity securities for the years ended March 31, 2006 and 2005, respectively.
At March 31, 2006, the cost and fair value of available-for-sale securities in an unrealized loss position over 12 consecutive
months were not significant.
Aggregate cost of non-marketable equity securities accounted for under the cost method totaled ¥83,708 million ($715,453
thousand) and ¥80,894 million at March 31, 2006 and 2005, respectively. At March 31, 2006, investments with an aggregate
cost of ¥79,492 million ($679,419 thousand) were not evaluated for impairment because (a)the Company did not estimate
the fair values of those investments as it was not practicable to estimate the fair value of the investment and (b)the Company
did not identify any events or changes in circumstances that might have had significant adverse effects on the fair values of
those investments.
5. SECURITIZATIONS
The Company has transferred certain trade notes receivable and trade accounts receivable under several securitization pro-
grams. These securitization transactions are accounted for as a sale in accordance with SFAS No. 140, Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, a replacement of FASB Statement 125, because the
Company has relinquished control of the receivables. Accordingly, the receivables sold under these facilities are excluded
from the accompanying consolidated balance sheets.
Upon the sale of receivables, the Company holds subordinated retained interests for certain trade notes receivable and
trade accounts receivable. A portion of these receivables, where the Company holds subordinated retained interests, is not
taken off the balance sheet and is recorded at their fair value. Such carrying amount is adjusted to reflect the portion that is
not expected to be collectible. As of March 31, 2006 and 2005, the fair values of retained interests were ¥53,756 million
($459,453 thousand) and ¥41,303 million, respectively. The Company recognized losses of ¥2,242 million ($19,162 thou-
sand) and ¥1,861 million on the securitizations of receivables for the years ended March 31, 2006 and 2005, respectively.
Subsequent to sale, the Company retains collection and administrative responsibilities for the receivables. Servicing fees
received by the Company approximate the prevailing market rate. Related servicing assets or liabilities are immaterial to the
Company’s financial position.
The table below summarizes certain cash flows received from and paid to special purpose entities (“SPEs”) on the above
securitization transactions.
Thousands of
Millions of yen U.S. dollars
Year ended March 31 2006 2005 2006
Proceeds from new securitizations ¥ 1,019,315 ¥ 979,748 $ 8,712,094
Servicing fees received 564 514 4,821
Cash flows received on retained interests 135,667 75,788 1,159,547
Purchases of delinquent and foreclosed receivables —0—
At March 31, 2006, the assumed weighted-average life and residual cash flow discount rate used to compute the fair value of
retained interests were 0.20 years and 2.17 percent, respectively.