Toshiba 2007 Annual Report Download - page 91

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25
24
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, 2007 and 2006, the fair values of retained interests were ¥48,204 million
($408,508 thousand) and ¥53,756 million, respectively. The Company recognized losses of ¥3,470 million ($29,407 thou-
sand) and ¥2,242 million on the securitizations of receivables for the years ended March 31, 2007 and 2006, 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 2007 2006 2007
Proceeds from new securitizations ¥ 1,174,438 ¥ 1,019,315 $ 9,952,864
Servicing fees received 567 564 4,805
Cash flows received on retained interests 76,422 135,667 647,644
Purchases of delinquent and foreclosed receivables 564 —4,780
At March 31, 2007, the assumed weighted-average life and residual cash flow discount rate used to compute the fair value of
retained interests were 0.18 years and 3.67 percent, respectively.
Quantitative information about delinquencies, net credit losses, and components of securitized receivables as of and for the
years ended March 31, 2007 and 2006 are as follows:
Millions of yen
Total principal amount Amount 90 days
of receivables or more past due Net credit losses
March 31, Year ended March 31,
2007 2006 2007 2006 2007 2006
Accounts receivable ¥1,537,190 ¥1,383,192 ¥24,493 ¥48,672 ¥4,569 ¥4,734
Notes receivable 203,682 190,455 70 26 356 358
Total managed portfolio 1,740,872 1,573,647 ¥24,563 ¥48,698 ¥4,925 ¥5,092
Securitized receivables (319,340) (271,613)
Total receivables ¥1,421,532 ¥1,302,034
Thousands of U.S. dollars
Total principal amount Amount 90 days
of receivables or more past due Net credit losses
March 31, 2007 Year ended March 31, 2007
Accounts receivable $13,027,034 $ 207,568 $ 38,720
Notes receivable 1,726,119 593 3,017
Total managed portfolio 14,753,153 $ 208,161 $ 41,737
Securitized receivables (2,706,271)
Total receivables $12,046,882