Toshiba 2008 Annual Report Download - page 109

Download and view the complete annual report

Please find page 109 of the 2008 Toshiba annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

41
40
(2) FAIR VALUE OF FINANCIAL INSTRUMENTS
The estimated fair values of the Company’s financial instruments at March 31, 2008 and 2007 are summarized as follows:
Millions of yen
2008 2007
Carrying Estimated Carrying Estimated
March 31 amount fair value amount fair value
Nonderivatives:
Liabilities:
Long-term debt, including current portion ¥ (954,486) ¥ (998,490) ¥ (1,044,152) ¥ (1,114,148)
Derivative financial instruments:
Forward exchange contracts (1,308) (1,308) 1,408 1,408
Interest rate swap agreements (2,063) (2,063) (799) (799)
Currency swap agreements 2,275 2,275 (797) (797)
Currency options 458 458 (41) (41)
Thousands of U.S. dollars
2008
Carrying Estimated
March 31 amount fair value
Nonderivatives:
Liabilities:
Long-term debt, including current portion $(9,544,860) $ (9,984,900)
Derivative financial instruments:
Forward exchange contracts (13,080) (13,080)
Interest rate swap agreements (20,630) (20,630)
Currency swap agreements 22,750 22,750
Currency options 4,580 4,580
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 equiv-
alents, notes and accounts receivable-trade, 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. For long-term debt, fair value is estimated using market quotes, or where market quotes are not available, using
estimated discounted future cash flows. 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.