Toshiba 2008 Annual Report Download - page 93

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25
24
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, 2008 and 2007, the fair values of retained interests were ¥40,566 million
($405,660 thousand) and ¥48,204 million, respectively. The Company recognized losses of ¥3,283 million ($32,830 thou-
sand) and ¥3,470 million on the securitizations of receivables for the years ended March 31, 2008 and 2007, 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 2008 2007 2008
Proceeds from new securitizations ¥956,759 ¥1,174,438 $9,567,590
Servicing fees received 474 567 4,740
Cash flows received on retained interests 168,446 76,422 1,684,460
Purchases of delinquent and foreclosed receivables 972 564 9,720
At March 31, 2008, 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 3.64 percent, respectively.
Quantitative information about delinquencies, net credit losses, and components of securitized receivables as of and for the
years ended March 31, 2008 and 2007 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
2008 2007 2008 2007 2008 2007
Accounts receivable ¥1,475,252 ¥1,537,190 ¥27,122 ¥24,493 ¥5,102 ¥4,569
Notes receivable 167,567 203,682 51 70 356 356
Total managed portfolio 1,642,819 1,740,872 ¥27,173 ¥24,563 ¥5,458 ¥4,925
Securitized receivables (301,976) (319,340)
Total receivables ¥1,340,843 ¥1,421,532
Thousands of U.S. dollars
Total principal amount Amount 90 days
of receivables or more past due Net credit losses
March 31, 2008 Year ended March 31, 2008
Accounts receivable $14,752,520 $271,220 $51,020
Notes receivable 1,675,670 510 3,560
Total managed portfolio 16,428,190 $271,730 $54,580
Securitized receivables (3,019,760)
Total receivables $13,408,430