Notes to Consolidated Financial Statements
1. Basis of presenting consolidated financial statements
statements submitted to the Director of Kanto Finance
Bureau in Japan have been reclassified in these accounts forthe convenience of readers outside Japan.
The consolidated financial statements are not intended topresent the consolidated financial position, results ofoperations and cash flows in accordance with accounting
principles and practices generally accepted in countries andjurisdictions other than Japan.
Amounts in U.S. dollars are included solely for theconvenience of readers outside Japan. The rate of ¥123.90 =U.S. $1, the approximate rate of exchange prevailing at March
30, 2001, has been used in translation. The inclusion of suchamounts are not intended to imply that the Japanese yen havebeen or could be readily converted, realized or settled in U.S.
dollars at this rate or any other rates.

2. Summary of significant accounting policies(1) Consolidation
The consolidated financial statements include the accounts ofCompany as of the semi-annual period end, the results ofoperations of the latter half of the year of those subsidiaries
are consolidated in the consolidated financial statements.
Two unconsolidated subsidiaries are excluded from the scopeof consolidation because majority owning investments into
those two subsidiaries are temporary.
The fiscal years of certain subsidiaries are different fromthe fiscal year of the Company. Since the difference is not
more than three months, the Company is using thosesubsidiaries’ statements for those fiscal years, making
adjustments for significant transactions that materially affectthe financial position or results of operations.
All significant intercompany transactions, balances andunrealized profits among Toyota Industries have been
eliminated.
A full portion of the assets and liabilities of the acquired
subsidiaries is stated at fair value as of the date of acquisitionof control.

(2) Investments in unconsolidated subsidiaries and affiliates
Investments in two unconsolidated subsidiaries and 17 majoraffiliates in 2001 and two affiliates in 2000 and 1999 are
accounted for by the equity method of accounting.
Investments in unconsolidated subsidiaries and affiliates notaccounted for by the equity method are stated at cost due totheir insignificant effect on the consolidated financial
statements.
The major affiliates accounted for by the equity method
are listed on page 87.

ANNUAL REPORT 2001

the Company and its 100 subsidiaries (22 domestic
subsidiaries and 78 overseas subsidiaries, which are listed on
page 86) in 2001, 29 subsidiaries (22 domestic subsidiaries
and seven overseas subsidiaries) in 2000 and 27 subsidiaries(20 domestic subsidiaries and seven overseas subsidiaries) in
1999. The unconsolidated subsidiaries are excluded fromconsolidation because such subsidiaries would have nomaterial effect on the consolidated financial statements ofToyota Industries, or Toyota Industries’ owning majority ofsuch subsidiaries would be temporary.
For the year ended March 31, 2000, as a result of adoptionof the new accounting standards, two companies which had
been treated as affiliates became consolidated subsidiaries.
For the year ended March 31, 2001, 71 subsidiaries,
including 63 BT Industries group companies, were newly
added to the scope of consolidation. Since 64 subsidiaries
out of 72 subsidiaries were deemed as being acquired by the49
TOYOTA INDUSTRIES CORPORATION

On 28 June, 2001, the General Meeting of Shareholders of
Toyoda Automatic Loom Works, Ltd. approved to change its
name effective August 1, 2001 to Toyota Industries
Corporation. The accompanying consolidated financial
statements have been prepared based on the accounts
maintained by Toyoda Automatic Loom Works, Ltd. under
new corporate name of Toyota Industries Corporation (the“Company”) and its consolidated subsidiaries (together,hereinafter referred to as “Toyota Industries”) in accordancewith the provisions set forth in the Japanese Commercial
Code and the Securities and Exchange Law, and in conformity
with accounting principles and practices generally acceptedin Japan, which are different in certain respects from theapplication and disclosure requirements of International
Accounting Standards.
Certain items presented in the consolidated financial

(3) Translation of foreign currencies
Foreign currency denominated receivables and payables aretranslated into Japanese yen at the year-end exchange rates
and the resulting transaction gains or losses are included inincome statements.
All asset and liability accounts of foreign subsidiaries andaffiliates are translated into Japanese yen at year-end
exchange rates and all revenue and expense accounts aretranslated at prevailing fiscal average rates from the year
ended March 31, 2000, although the year-end exchange rates
had been used until the year ended March 31, 1999. The
resulting translation adjustments are included as a separate
component of shareholders’ equity from the year ended
March 31, 2001. Changes in accounting policies are
discussed in Note 3.

(4) Cash and cash equivalents
Cash and cash equivalents include all highly liquid
investments, generally with original maturities of threemonths or less, that are readily convertible to known

50

amounts of cash and are so near maturity that they present
insignificant risk of changes in value because of changes ininterest rates.

(5) Marketable securities and investment in securities
Until the year ended March 31, 2000, marketable securities

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2001

(current) and investment in securities (non-current) with amarket quotation on a stock exchange are valued at the lowerof moving-average cost or market value. Marketable securities
and investment in securities without a market quotation arevalued at moving-average cost.
Effective for the year ended March 31, 2001, Toyota
Industries adopted new accounting standards for financial
instruments that include accounting for marketable securities
and investment in securities, which are included in shortterm investments together with time deposits due over threemonths and investments in securities on the balance sheet asof March 31, 2001. The new accounting standards require
Toyota Industries to classify securities into four categories bypurpose of holding: trading securities, held-to-maturity
securities, other securities, and investments in unconsolidated
subsidiaries and affiliates. Toyota Industries does not havetrading securities nor held-to-maturity securities as of March
31, 2001.
Other securities with fair values are stated at fair value
based on market prices at the end of year. Unrealized gains
and losses are included in net unrealized gains on othersecurities as a separate component of shareholders’ equity.
Cost of sales of such securities is determined by the moving
average method. Other securities without fair values arestated at cost, as determined by the moving average method.
Investments in unconsolidated subsidiaries and affiliates areaccounted for by the equity method (see Note 2.(2) above).

(6) Inventories
Inventories are stated mainly at cost determined by the moving average method.

(7) Property, plant and equipment, and depreciation
Property, plant and equipment are stated at cost.
Depreciation expenses of property, plant and equipment arecomputed mainly by the declining-balance method, underwhich useful lives and residual values are same onesprescribed in Japanese Tax Law. Accumulated depreciation
as of March 31, 2001 and 2000 was ¥406,843 million($3,283,640 thousand) and ¥358,153 million, respectively.

(8) Intangible assets and amortization
Amortization of intangible assets is computed using thestraight-line method. Software costs for internal use areamortized by the straight-line method over their expected
useful lives (mainly five years).
Goodwill, if material, is amortized principally over lessthan 20 years on a straight-line basis, while immaterial
goodwill is charged to income as incurred. Goodwill incurred
before April 1, 2000 has been amortized over five years on astraight-line basis.

(9) Allowances for doubtful accounts
Toyota Industries adopted the policy of providing anallowance for doubtful accounts in an amount sufficient tocover possible losses on collection by estimating individuallyuncollectible amounts and applying to the remaining
accounts a percentage determined by certain factors such as
historical collection experiences.

(10) Deferred charges
Stock issuance costs and bond issuance costs are expensed as incurred.

(11) Allowance for retirement benefits
Until the year ended March 31, 2000, the allowance forretirement benefits was calculated at the present value basedon the amount that would be paid if all employees voluntarily
retired.
Effective for the year ended March 31, 2001, Toyota
Industries adopted new accounting standards for retirement
benefits for employees. Toyota Industries accrues amountwhich is considered to be incurred in the period based on theestimated benefit obligations and estimated pension assets at
the end of year.
To provide for the retirement benefits for directors andcorporate auditors, an amount which is required at the end ofyear by an internal rule describing the retirement benefits for
directors is accrued.
The change in accounting policy is described in Note 3.

(12) Lease transactions
Finance leases other than those that are deemed to transfer
the ownership of the leased assets to lessees are accounted

for mainly by the method similar to that applicable toordinary operating leases.

The consumption tax under the Japanese Consumption Tax
Law withheld by Toyota Industries on sales of goods is notincluded in the amount of net sales in the accompanying
consolidated statements of income, and the consumption tax

paid by Toyota Industries under the law on purchases of goods
and services, and expenses is not included in the related
amount.

(14) Hedge accounting(a) Method of hedge accounting
the Toyota Industries’ internal rule and Toyota Industries is
hedging interest rate risks and foreign currency risks. Toyota
Industries’ hedging activities are reported periodically to a
director responsible for accounting.

(b) Hedging instruments and hedged items(d) The method used to measure hedge effectivenessHedging instruments: derivative instruments (interest rate
swaps and foreign currency forwards)
Hedged items:
risk of change in interest rate on
borrowings and risk of change inforward exchange rate on transactions
denominated in foreign currencies(monetary assets and liabilities,
marketable securities and forecasted
transactions)

Hedge effectiveness is measured by comparing accumulatedchanges in market prices of hedged items and hedging
instruments or accumulated changes in estimated cash flows
from the inception of the hedge to the date of measurements
performed. Currently it is considered that there are highcorrelations between them.

(c) Hedging policy
Hedging transactions are executed and controlled based on(e) Others
Due to the fact that counterparties to Toyota Industries
represent major financial institutions which have highcreditworthiness, Toyota Industries believes that the overall
credit risk related to its financial instruments is insignificant.

(15) Appropriation of retained earnings
In the accompanying consolidated statements of shareholders’equity, the approved amount during the relevant fiscal year isreflected for the appropriation of retained earnings ofconsolidated subsidiaries. In Japan, the payment of bonuses

to directors and corporate auditors is made out of retained
earnings through an appropriation, instead of being charged
to the income for the year.

ANNUAL REPORT 2001

Mainly deferral method of hedge accounting is applied. Incase of foreign currency forward contracts, the hedged items
are translated at contracted forward rates if certain conditions
are met.

TOYOTA INDUSTRIES CORPORATION(13) Consumption tax

51

(16) Income taxes
Income taxes are principally provided in amounts currently
payable for each year. Until the year ended March 31, 1999,
deferred income taxes arising from timing differences
between reporting for accounting purposes and that for tax
purposes were not required to be accounted for underJapanese accounting principles and therefore was notrecorded in the financial statements by the Company and its
domestic subsidiaries and affiliates. (For most of overseas
subsidiaries and affiliates, deferred income taxes have beenrecorded and reflected in their respective financial
statements.)
However, effective for the year ended March 31, 2000, tax

52

effect accounting has been adopted. The change inaccounting policies is discussed in Note 3.
The provision for income taxes is computed based on thepretax income included in the consolidated statement ofincome. The asset and liability approach is used to recognize
deferred tax liabilities and assets for the expected future tax
consequences of temporary differences between the
carrying amounts and the tax bases of assets and liabilities.
Valuation allowances are recorded to reduce deferred tax
assets when it is more likely than not that a tax benefit will
not be realized.

(17) Net income per share
The computation of basic net income per share is based on

TOYOTA INDUSTRIES CORPORATION

the weighted-average number of outstanding shares ofcommon stock. The calculation of diluted net income pershare is similar to the calculation of basic net income pershare, except that the weighted-average number of shares

outstanding includes the additional dilution from potential
common stock equivalents such as convertible bonds. Cashdividends per share shown in the statements of income are
the amounts applicable to the respective years.

3. Changes in accounting policies and adoption of new accounting standards(1) For the year ended March 31, 2001

ANNUAL REPORT 2001(a) Allowance for retirement and severance benefits
for directors and corporate auditors
The Company’s retirement and severance benefits for
directors and corporate auditors was previously recorded as
expenses at the time they were awarded. However, in order tomake period earnings more appropriate, from the year ended
March 31, 2001, these expenses are accrued based on the
directors’ retirement benefit rule. Compared to the previous
method, operating income and ordinary income decreased by¥196 million ($1,582 thousand) and income before income
taxes decreased by ¥2,525 million ($20,379 thousand).
(b) Accounting for retirement benefits
Effective for the year ended March 31, 2001, the new
accounting standards for retirement benefits have been
applied. As a result, operating income and ordinary income
decreased by ¥1,005 million ($8,111 thousand) and income
before income taxes decreased by ¥4,982 million ($40,210
thousand). Also, cumulative effect of change in accounting
standards for retirement benefits of ¥19,057 million($153,810 thousand) was charged to income and recorded as
an extraordinary loss, and gain on securities contribution toemployee retirement benefit trust of ¥15,080 million($121,711 thousand) was charged to income and recorded as
an extraordinary gain. Allowance for retirement andseverance benefits and unamortized prior service cost areincluded in allowance for retirement benefits.

(c) Accounting for financial instruments
Effective for the year ended March 31, 2001, the new
accounting standards for financial instruments have been
applied. As a result, ordinary income and income before
income taxes increased by ¥359 million ($2,897 thousand).
At the beginning of the year ended March 31, 2001, Toyota
Industries reviewed the holding purposes of the securities it
owns. As a result, marketable securities expiring within one
year were classified under current assets as marketablesecurities and the others were classified as investment insecurities. As a result, marketable securities decreased by¥394 million ($3,180 thousand) and investment in securities
increased by the same amount.
(d) Accounting for foreign currency transactions
Effective for the year ended March 31, 2001, the amended
accounting standards for foreign currency transactions havebeen applied. Neither profits nor losses resulted from thischange. Effective for the year ended March 31, 2001,
translation adjustments, which had been listed under assets
in the consolidated balance sheets as of March 31, 2000 has
been shifted under shareholders’ equity and included inminority interest in consolidated subsidiaries due to theamendment of Japanese Regulations Concerning the
Terminology, Forms and Preparation Methods ofConsolidated Financial Statements.

(2) For the year ended March 31, 2000(a) Consolidation and investments in affiliates
Since the year ended March 31, 2000, Toyota Industries has
adopted the new accounting standards for preparation of
consolidated financial statements. To follow the newstandards, Toyota Industries has changed its criteria withregard to the identification of companies to be consolidated
from the percentage-of-ownership approach to the effective
control approach. Pro forma disclosure of the effect of theretroactive application of the new accounting standards is
not required under accounting standards generally acceptedin Japan. As a result of the adoption of the new standards,
two companies have been newly consolidated because
Toyota Industries was deemed to have effective controls overthose two companies.
statements
Until the year ended March 31, 1999, revenue and expenses
accounts of overseas consolidated subsidiaries had beentranslated into Japanese yen at year-end rates. From the year
ended March 31, 2000, the Company has used annual average
rates. This change was made to present the operating results
more precisely as the significance of the overseas
consolidated subsidiaries had been increasing and their(3) For the year ended March 31, 1999

ANNUAL REPORT 2001

Legal reserve:
From the year ended March 31, 1999, in the consolidatedbalance sheets, legal reserve and retained earnings havebeen combined and shown as retained earnings.

4. Acquisitions(1) For the year ended March 31, 2001
Until May 31, 2000, the Company acquired 97.1% of the sharecapital of BT Industries AB, a holding company of BT
Industries group which is materials handling equipment
manufacturing and sales companies. Due to this acquisition,
Toyota Industries recorded goodwill amounting to ¥61,557

Current assets
Fixed assets
Current liabilities
Long-term liabilities
Minority interest
Acquisition cost of BT Industries AB
Less: cash and cash equivalents in BT Industries AB
Cash payment for the acquisition of BT Industries AB

53
TOYOTA INDUSTRIES CORPORATION(b) Translation of foreign subsidiaries’ financial

revenue and expenses were incurred throughout the fiscal
years.
As a result of this change, net sales increased by ¥10,431
million, ordinary income increased by ¥551 million andincome before income taxes increased by ¥198 million forthe year ended March 31, 2000 compared to the amounts
accounted for under the former policies.
(c) Income taxes
Tax effect accounting has been adopted from the year ended
March 31, 2000 due to the amendment of the accounting
standards for income taxes. As a result, deferred tax assets
were newly recognized in the amount of ¥9,867 million,¥4,556 million in current assets and ¥5,311 million in
investments and other assets, and deferred tax liabilities wererecognized in the amount of ¥2,042 million in the
consolidated financial statements as of March 31, 2000. Also,
net income for the year ended March 31, 2000 and retained
earnings as of March 31,2000 increased by ¥2,970 millionand ¥8,458 million, respectively.
In addition to the above, cumulative effect of the adoptionof tax effect accounting of ¥5,487 million at the beginning of
the year ended March 31, 2000 was recognized as
adjustments in retained earnings.

million ($496,828 thousand), which is amortized over 20 years.
The summarized assets and liabilities arising from theacquisition, the acquisition cost to purchase BT Industries AB’sshares, and the net cash payment made for the acquisition are
as follows:
Millions of yen

Thousands of
U.S. dollars¥ 56,289
117,255(33,559)(49,450)(762)$ 454,310
946,368(270,856)(399,112)(6,150)89,773(3,745)724,560(30,226)¥ 86,028$ 694,334

(2) For the year ended March 31, 2000
Summary of assets and liabilities that increased due to the acquisition of the water-jet loom business from Nissan Texsys Co., Ltd.
is as follows:
Millions of yen

Current assets
Fixed assets¥1,222
386

Total

1,608
99
11

Current liabilities
Long-term liabilities

¥ 110

Total

5. Marketable securities

54(1) As of and for the year ended March 31, 2001(a) Other securities with fair value as of March 31, 2001 are as follows:

TOYOTA INDUSTRIES CORPORATION

Millions of yen

Acquisition
cost

Securities with carrying amountexceeding acquisition cost:
Stocks
Bonds
Government and municipal bonds, etc.
Corporate bonds
Other bonds
Other

ANNUAL REPORT 2001

Subtotal
Securities with carrying amountnot exceeding acquisition cost:
Stocks
Bonds
Government and municipal bonds, etc
Corporate bonds
Other bonds
Other
Subtotal
Total

Carrying
amount¥159,376 ¥1,110,176

Thousands of U.S. dollars

Difference

Acquisition
cost

Carrying
amount¥950,800$1,286,328 $8,960,258 $7,673,930

Difference–
13,702–––
13,723
–
–

–
21
–
–

–
110,589–––
110,759
–
–

–
170
–
–

173,078

1,123,899

950,821

1,396,917

9,071,017

7,674,100

7,995

7,560

(435)

64,52861,017(3,511)

0
2,498
3
720

0
2,475
3
720

–
(23)
–
–

0
20,16124
5,811

019,976
24
5,811

–
(185)
–
–

11,216

10,758(458)

90,52486,828(3,696)¥184,294 ¥1,134,657¥950,363

In this year, Toyota Industries recorded ¥2 million ($16
thousand) of impairment on an equity security included in$1,487,441 $9,157,845 $7,670,404

securities with the carrying amount not exceeding the costlines.

(b) Other securities sold during the year ended March 31, 2001 are as follows:
Thousands of U.S. dollars

Millions of Yen

Proceeds¥23,689

Realized gains¥15,317

Realized losses¥0

Proceeds include ¥17,845 million ($144,027 thousand) ofproceeds from the establishment of retirement benefit trust.
And, realized gains include ¥15,080 million ($121,711

Proceeds$191,145

Realized gains$123,624

Realized losses$0

thousand) of gain on securities contribution to employee
retirement benefit trust.

(c) Contents and carrying amount of securities (excluding held-to-maturity bonds within securities with fair value) notpracticable to fair value as of March 31, 2001, are as follows:
Thousands of
U.S. dollars

Millions of yen

Held-to-maturity securities
Other securities
Domestic unlisted stocks excluding over-the-counter stocks
Commercial paper used in repurchase agreements
Bonds used in repurchase agreements
Money management funds
Foreign unlisted bond––

¥12,644
3,999
2,000
341
310

$102,050
32,27616,1422,752
2,502(d) Redemption schedule of securities which have maturities within other securities as of March 31, 2001 is as follows:
Millions of yen

Within1 year

Total¥

Thousands of U.S. dollars

Over 5 years
within
10 yearsOver
10 years–
10,702
3
6,022

¥

–
4,518
10
129

¥0
–
–
–

¥

–
978
300
–

¥16,727¥4,657¥0¥1,278Over 1 year
within5 years

Over 5 years
within
10 years–
86,37624
48,604$–36,465
81
1,041

$0
–
–
–

$

$135,004$37,587$0$10,315

Within1 year$Over
10 years

–
7,893
2,422
–

(2) As of March 31, 2000
Current and non-current marketable securities included in current assets and in investments and other assets as of March 31,
2000 are as follows:

55
TOYOTA INDUSTRIES CORPORATION

Bonds
Government bonds
Corporate bonds
Other
Securities other than bonds

Over 1 year
within5 years

Millions of yen

Current:
Stock
Bonds
Other
Subtotal

¥

Fair
value

393 ¥
2
–
395

1,256
3
–
1,259

Unrealized
gains (losses)

¥

863
1
–
864

Non-current:
Stock
Bonds
Other
Subtotal

162,9832,000
50
165,033

1,323,286
1,997
50
1,325,333

1,160,303(3)01,160,300

Total¥165,428 ¥1,326,592¥1,161,164(a) The following methods are used to determine fair value:
Listed securities — mainly closing prices on Tokyo Stock Exchange
Unlisted bonds — prices after adjustments made on the standard quotation prices of over-the-counter standard bonds
announced by Japan Securities Dealers’ Association
Beneficiary certificates of securities investment trusts — Basic standard cost

ANNUAL REPORT 2001

Carrying
amount(b) Carrying amounts of the securities which are excluded from disclosure above are as follows:
Millions of yen

Current:
Bonds used in repurchase agreements
Commercial paper used in repurchase agreements
Discount bank debentures
Foreign unlisted bonds
Money management funds¥ 3,994
3,993
3,491
810
632

Non-current:
Domestic unlisted stocks excluding over-the-counter stocks
Foreign unlisted bonds¥22,856
3,310

6. Inventories

56

Inventories as of March 31, 2001 and 2000 consist of the following:

TOYOTA INDUSTRIES CORPORATION

Millions of yen

Thousands of
U.S. dollars

2001

2000

2001

Finished goods
Raw materials
Work in process
Supplies¥16,164
10,32921,3704,900¥ 3,342
4,615
18,104
4,154$130,460
83,366
172,478
39,547

Total¥52,763¥30,215$425,851

7. Long-term debt
(1) Long-term debt as of March 31, 2001 and 2000 consists of the following:

ANNUAL REPORT 2001

Millions of yen

The Company:
0.35% convertible bonds due 2003 without collateral
2.70% bonds due 2008 without collateral
1.50% bonds due 2003 without collateral
2.15% bonds due 2008 without collateral
1.50% bonds due 2006 without collateral
1.94% bonds due 2009 without collateral
1.25% bonds due 2005 without collateral
1.91% bonds due 2010 without collateral
Consolidated subsidiaries:
1.80% bonds due 2005
Long-term bank loans
Less: Current portion of long-term debt
Total
The conversion period of the 0.35% convertible bonds due
2003 is from May 1, 1996 to September 29, 2003 and theconversion price was ¥1,983.90 ($16.01) per share as ofThousands of
U.S. dollars

2001

2000

2001

¥ 75,748
30,00020,00020,00015,00015,00020,00020,000¥ 75,748
30,00020,00020,00015,00015,000––$ 611,364
242,131
161,421
161,421
121,065
121,065
161,421
161,421300
53,555(1,108)

300
6,011
(987)

2,421
432,243(8,943)¥268,495¥181,072$2,167,030

March 31, 2001. The aggregate number of shares issuable
upon conversion thereof at such conversion price was38,181 thousand shares.

(2) Annual maturities of long-term debt as of March 31, 2001 are as follows:Year ending March 31

Millions of yen

Thousands of
U.S. dollars

2002
2003
2004
2005
2006
2007 and thereafter

¥

1,108
15,282
124,818
3,760
23,060101,575$

8,943
123,341
1,007,409
30,347
186,118
819,815

Total¥269,603$2,175,973

8. Assets pledged as collateral(1) Assets pledged as collateral as of March 31, 2001 and 2000 are as follows:
Millions of yen

Thousands of
U.S. dollars

2000

2001

¥23,116
4,249
3,190
383
200
29

¥ 5,721
3,631
2,871
730
200
144

$186,570
34,29425,747
3,091
1,614
234

Total

¥31,167¥13,297$251,550(2) Secured liabilities as of March 31, 2001 and 2000 are as follows:
Thousands of
U.S. dollars

2001

2000

2001

Other current liabilities
Short-term bank loans
Long-term debt

¥17,608
8,702
1,867

¥17,376
5,106
4,435

$142,115
70,234
15,068

Total¥28,177¥26,917$227,417

9. Contingent liabilities
Toyota Industries is contingently liable for guarantees as of March 31, 2001 and 2000 as follows:
Millions of yen

Guarantees given by the Company
Guarantees given by consolidated subsidiaries
Guarantee forwards given by the Company
Acts similar to guarantees given by consolidated subsidiaries
Guarantees given by consolidated subsidiaries consist of
288,278 thousand of Swedish krona, and acts similar toThousands of
U.S. dollars

2001

2000

2001

¥

¥ 370
–
2,936
–

$ 2,728
27,99027,143
83,043

338
3,468
3,363
10,289guarantees given by consolidated subsidiaries consist of855,299 thousand of Swedish krona.

ANNUAL REPORT 2001

Millions of yen

TOYOTA INDUSTRIES CORPORATION

2001
Investments in securities
Buildings and structures
Land
Machinery, equipment and vehicles
Trade notes and accounts receivable
Other

57

10. Accounting for notes receivable and notes payable maturing at year-end date
Although year-end date of the year ended March 31, 2001,
was a holiday for banking institutions, the following notes
receivable and notes payable were accounted as if they were

Notes receivable
Notes payablesettled at year-end date. Consequently, they are not included
in trade notes and account receivables and trade notes andaccounts payable on the balance sheet as of March 31, 2001.
Millions of yen

Thousands of
U.S. dollars

¥569
857

$4,592
6,917

11. Shareholders’ equity

58
TOYOTA INDUSTRIES CORPORATION

Under the Japanese Commercial Code, amounts equal to atleast 10% of the sum of the cash dividends and other external
appropriations paid by the Company and its domestic
subsidiaries must be set aside as a legal reserve until it equals
25% of common stock. The legal reserve may be used toreduce a deficit or may be transferred to common stock bytaking appropriate corporate action. In consolidation, thelegal reserves of the Company and its domestic subsidiaries
are accounted for as retained earnings.
Year-end cash dividend is approved at the General
Meeting of Shareholders of the Company held after the closeof the fiscal year to which the dividend is applicable. In
addition, interim cash dividends may be paid upon resolutionof the Board of Directors, subject to limitations imposed by
the Japanese Commercial Code.
Proceeds from the conversion of convertible bonds havebeen accounted for in approximately equal amounts ascommon stock and capital surplus. At least 50% of theproceeds have been accounted for as common stock, in
accordance with the provisions of the Japanese Commercial
Code.

12. Research and development expenses

ANNUAL REPORT 2001

Research and development expenses, which were included
in selling, general and administrative expenses andmanufacturing costs, amounted to ¥26,196 million ($211,429

thousand), ¥24,062 million and ¥23,231 million for the year
ended March 31, 2001, 2000 and 1999, respectively.

13. Derivative instruments(1) For the year ended March 31, 2001

(1) For the year ended March 31, 2001(a) Qualitative disclosure about derivatives
Contents of derivative instruments into which Toyota
Industries entered, policy to enter into derivative
instruments, and purpose of using derivative instruments:
Toyota Industries uses interest rate swap agreements andforeign currency forward contracts, to reduce interest
rate risks on borrowings and to hedge foreign currency
risks on transactions denominated in foreign currencies(receivables and payables, securities, and forecasted
transactions), respectively.
Contents of risks related to derivative instruments:
Interest rate swaps and foreign currency forward
contracts into which Toyota Industries entered, haverisks of fluctuations in interest rates and in foreign
currency exchange rates. Due to the fact that

(2) For the year ended March 31, 2000
Toyota Industries did not use any derivative instruments.

counterparties to Toyota Industries represent major
financial institutions which have high creditworthiness,
Toyota Industries believes that the overall credit risk
related to its financial instruments is insignificant.
Controls in place over transactions handling derivative
instruments:
Hedging transactions are executed and controlled basedon the Toyota Industries’ internal rule and Toyota
Industries’ hedging activities are reported periodically toa director responsible for accounting.
(b) Quantitative disclosure about derivatives
Toyota Industries omitted this information because hedge
accounting is applied to all of derivative instruments into
which Toyota Industries entered.

14. Retirement benefits(1) Outline of retirement benefit plans:
The Company and its domestic subsidiaries maintain tax
qualified pension plans and lump-sum indemnities plans bothof which are non-contributory defined benefit pension plans.
In addition, certain foreign subsidiaries maintain noncontributory defined benefit pension plans. Since 1987, theCompany has been transferring the covering percentages ofpension plan from lump-sum indemnities plan to tax
qualified pension plan. As of March 31, 2001, tax qualified
pension plan is covering 50% of total plans. Also, theCompany established employee retirement benefit trust.

(2) Components of allowance for retirement benefits as of March 31, 2001 are as follows:
Thousands of
U.S. dollars¥ 71,458(46,513)$ 576,739(375,407)

Unfunded benefit obligation
Unrecognized actuarial loss

24,945(4,812)

201,332(38,838)

Net amount recognized on the balance sheet
Prepaid pension expenses

20,133(2,598)

162,494(20,968)¥ 22,731$ 183,462

Benefit obligation
Plan assets

Allowance for retirement benefits
Certain subsidiaries use the simplified method to determine
benefit obligations.
Prepaid pension expenses are included in otherinvestments and other assets.

Allowance for retirement benefits on the balance sheet
includes ¥2,803 million ($22,623 thousand) of allowance forretirement and severance benefits for directors andcorporate auditors as discussed in Note 3.

(3) Components of retirement benefit expenses for the year ended March 31, 2001 are as follows:
Thousands of
U.S. dollars

Service cost
Interest cost
Expected return on plan assets
Amortization of transition obligation¥ 3,799
1,677(637)
19,057$ 30,662
13,534(5,141)
153,810Retirement benefit expenses¥23,896$192,865

Retirement expenses of subsidiaries which adopted
simplified method are included in both service cost andamortization of transition obligation.
Due to the establishment of retirement benefit trust in theyear ended March 31, 2001, which is the first year ofaccounting standards for retirement benefits’ adoption,amortization of transition obligation also includes ¥17,845
million ($144,027 thousand) of one-time amortization ofretirement benefit obligation at beginning of the year whichis equivalent to fair value of trust properties at the time of its
contribution.

(4) Assumptions used for calculation of retirement benefits for the year ended March 31, 2001 are as follows:
Method of attribution of estimated retirement benefits
to periods of employee service
Discount rate
Expected return on plan assets
Amortization period of unrecognized actuarial gains or losses

Amortization period of net transition obligation

Straight-line method
3.0%
3.0%
20 years
Straight-line method over the average remaining
service period of employee starting fromfollowing year
1 year

ANNUAL REPORT 2001

Millions of yen

59
TOYOTA INDUSTRIES CORPORATION

Millions of yen

15. Income taxes(1) The significant components of deferred tax assets and liabilities as of March 31, 2001 and 2000 are as follows:
Thousands of
U.S. dollars

Millions of yen

2001

60

Deferred tax assets:
Net operating loss carry-forwards for tax purposes
Trade receivables
Accrued expenses
Depreciation
Allowance for retirement benefits
Enterprise tax payable
Securities
Other

TOYOTA INDUSTRIES CORPORATION

2,290
3,203
2,330
1,708
3,562
1,058
1,034
4,602

¥ 2,368
1,708
1,452
1,338
993
776
507
4,034

Subtotal

19,787

13,176

159,701

Less — valuation allowance(2,448)(2,394)(19,757)

Total deferred tax assets

17,33910,782

139,944

Deferred tax liabilities:
Other securities
Depreciation
Land
Reserve for advanced depreciation
Reserve for special depreciation
Other

391,484
1,618
1,112
384
96
148

–
1,304
1,112
409
59
72

3,159,677
13,059
8,975
3,099
775
1,195

Total deferred tax liabilities

ANNUAL REPORT 2001

Net deferred tax assets (liabilities)

¥

2001

2000
$

18,48325,85118,805
13,78528,7498,539
8,345
37,144

394,8422,956

3,186,780¥(377,503)¥ 7,826$(3,046,836)(2) Reconciliations of differences between the statutory rate of income taxes and the effective rate of income taxes for the year
ended March 31, 2001 and 2000 are as follows:
2001

2000

Statutory rate of income taxes
Addition (reduction) in taxes resulting from:
Equity in loss of affiliates
Net pre-tax losses of subsidiaries
Elimination of dividend income
Dividends income and other permanently not recognized as taxable income
Other

41.2%

41.2%

1.0
–
0.9
(6.7)
2.4

7.6
3.5
1.3
(8.6)
1.3

Effective rate of income taxes

38.8%

46.3%

16. Leases(1) Finance leases which do not transfer ownership of leased properties to lessees(a) Pro forma information regarding the leased properties such as acquisition cost, accumulated depreciation under financeleases as of March 31, 2001 and 2000 is as follows:
Thousands of
U.S. dollars

Millions of yen

2001

2000

2001

¥2,339910
1,429¥2,214534
1,680$18,878
7,345
11,533

4,660
2,228

5,507
3,052

37,611
17,982Tools, furniture and fixture year-end balance equivalents

2,432

2,455

19,629Total net leased properties¥3,861¥4,135$31,162

Machinery and equipment:
Acquisition cost equivalents
Accumulated depreciation equivalents
Machinery and equipment year-end balance equivalents
Tools, furniture and fixture:
Acquisition cost equivalents
Accumulated depreciation equivalentsof property, plant and equipment, etc., at year-ends is
immaterial.

(b) Pro forma information regarding future minimum lease payments as of March 31, 2001 and 2000 is as follows:
Thousands of
U.S. dollars

Millions of yen

2000

2001

Due within 1 year
Due after 1 year

¥1,302
2,559¥1,501
2,634$10,508
20,654

Total¥3,861¥4,135$31,162

Future minimum lease payments under finance leases include
the imputed interest expense portion because the percentage
which is computed by dividing future minimum lease

payments by total balance of property, plant and equipment,
etc., at year-ends is immaterial.

(c) Total lease payments for the years ended March 31, 2001, 2000 and 1999 are as follows:

2001
2000
1999
Pro forma depreciation expenses, which are not reflected in
the accompanying consolidated statements of income, arecomputed mainly by the straight-line method which assume

Millions of yen

Thousands of
U.S. dollars¥1,505
1,749
1,679$12,147––zero residual value and leasing term to be useful lives for theyears ended 2001, 2000 and 1999, and are equivalent to theamount of total lease payments of the above.

(2) Operating leases(a) Pro forma future lease payments under operating leases (as a lessee) as of March 31, 2001 and 2000 are as follows:
Thousands of
U.S. dollars

Millions of yen

2001

2000

2001

Due within 1 year
Due after 1 year

¥ 5,116
9,543

¥203
165

$ 41,291
77,022

Total¥14,659¥368$118,313

ANNUAL REPORT 2001

2001

TOYOTA INDUSTRIES CORPORATION

Acquisition cost equivalents include the imputed interest
expense portion because the percentage which is computedby dividing future minimum lease payments by total balance61

(b) Pro forma future lease payments under operating leases (as a lessor) as of March 31, 2001 are as follows:
Millions of yen

Thousands of
U.S. dollars

Due within 1 year
Due after 1 year

¥1,456
7,717$11,751
62,284

Total¥9,173$74,035

17. Subsequent events
On June 28, 2001, the shareholders of the Company
authorized the payment of year-end cash dividends toshareholders of record as of March 31, 2001 of ¥9.00($0.073) per share, or a total of ¥2,820 million ($22,760

62

thousand), and bonuses to directors and corporate auditorsof ¥208 million ($1,679 thousand). Cash dividends for theyear totaled ¥17.00 ($0.137) per share, including interim
cash dividends of ¥8.00 ($0.065).

18. Segment information(1) Business segments

TOYOTA INDUSTRIES CORPORATIONAs of and for the years ended March 31, 2001, 2000 and 1999:
Thousands of
U.S. dollars

Millions of yen

Sales:
Automobile
Outside customer sales
Inter-segment transactions
Materials Handling Equipment
Outside customer sales
Inter-segment transactions

ANNUAL REPORT 2001

Textile Machinery
Outside customer sales
Inter-segment transactions
Others
Outside customer sales
Inter-segment transactions
Subtotal

2001

2000

1999

2001

¥457,631
4,097¥423,413
3,335¥364,269
2,431$3,693,551
33,067

461,728

426,748366,700

3,726,618

236,502–

149,085–

151,370–

1,908,814–

236,502

149,085

151,370

1,908,814

33,238–23,135–

18,947–268,264–

33,23823,135

18,947268,264

40,012
4,531

30,1402,613

24,2902,974

322,938
36,57044,54332,75327,264

359,508

776,011

631,721564,281

6,263,204(8,628)(5,948)(5,405)(69,637)

Total¥767,383¥625,773¥558,876$6,193,567

Operating costs and expenses:
Automobile
Materials Handling Equipment
Textile Machinery
OthersElimination of inter-segment transactions¥433,203
221,955
33,20340,178(8,460)¥402,320
143,335
26,10732,001(6,857)¥349,302
142,918
22,40225,064(5,624)$3,496,392
1,791,404
267,982
324,278(68,281)

Total¥720,079¥596,906¥534,062$5,811,775

Operating income (loss):
Automobile
Materials Handling Equipment
Textile Machinery
OthersElimination of inter-segment transactions¥ 28,525
14,547
35
4,365
(168)

¥ 24,428
5,750(2,972)752
909¥ 17,398
8,452(3,455)2,200
219$ 230,226
117,410282
35,230(1,356)

Total¥ 47,304¥ 28,867¥ 24,814$ 381,792

Elimination of inter-segment transactions

Thousands of
U.S. dollars

Millions of yen

2000

1999

2001

Assets:Automobile
Materials Handling Equipment
Textile Machinery
OthersCorporate assets or elimination¥ 282,504
270,975
25,404
15,4871,275,272¥266,839
81,34323,42718,012296,293¥254,087
78,51822,224
20,729241,513$ 2,280,097
2,187,046
205,036
124,996
10,292,752

Total¥1,869,642¥685,914¥617,071$15,089,927¥

31,764
10,766
1,034
3,071
(181)

¥ 31,707
7,751
978
2,398
(82)

¥ 26,518
5,548
1,024
1,404
(114)

$

256,368
86,893
8,345
24,786(1,461)¥46,454¥ 42,752¥ 34,380$

374,931¥54,73470,673
320
2,311
(765)

¥ 33,058
5,426
1,042
5,794
(574)

¥ 47,635
11,691
663
875
(396)

$

441,759
570,404
2,583
18,652(6,174)¥ 127,273¥ 44,746¥ 60,468$ 1,027,224

Depreciation and amortization:
Automobile
Materials Handling Equipment
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Capital expenditures:
Automobile
Materials Handling Equipment
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total

Corporate assets as of March 31, 2001, included in corporate
assets or elimination amounting to ¥1,278,393 million($10,317,942 thousand) mainly consist of cash and cash
equivalents, short-term investments and investments insecurities held by the Company.
Effective for the year ended March 31, 2001, the new
accounting standards for retirement benefits have been
applied. Consequently, operating costs and expenses
increased by ¥721million ($5,819 thousand) for theAutomobile Segment, ¥197 million ($1,590 thousand) for the
Materials Handling Equipment Segment, ¥41 million ($331
thousand) for the Textile Machinery Segment and ¥46million($371 thousand) for the Others Segment, respectively, andoperating income for each segment decreased by the sameamount.
Effective for the year ended March 31, 2001, allowance forretirement and severance benefits for directors and corporate
auditors has been recorded. Consequently, operating costs andexpenses increased by ¥145 million ($1,170 thousand) for theAutomobile Segment, ¥37 million ($299 thousand) for the
Materials Handling Equipment Segment, ¥10 million ($81
thousand) for the Textile Machinery Segment and ¥4 million($32 thousand) for the Others Segment, respectively, andoperating income for each segment decreased by the sameamount.
Effective for the year ended March 31, 2001, the new
accounting standards for financial instruments have been
applied. Consequently, assets increased by ¥40 million ($323
thousand) for the Materials Handling Equipment Segment and¥942,594 million ($7,607,670 thousand) for corporate assets
or elimination.
Effective for the year ended March 31, 2000, the new
accounting standards for income taxes have been applied.
Consequently, assets increased by ¥3,335 million for theAutomobile Segment, ¥1,221 million for the Materials
Handling Equipment Segment, ¥442 million for the Textile
Machinery Segment, ¥621 million for the Others Segment, and¥4,247 million for corporate assets or elimination.

ANNUAL REPORT 2001

Main products of each segment:
Automobile • • • • • • • • • • • • • • • • • • • • • • • Passenger vehicles, diesel and gasoline engines, car air-conditioning compressors
Materials Handling Equipment • • • • • • • Counterbalanced forklift trucks, warehouse trucks, skid steer loaders, automated storage and retrieval systems,
automatic guided vehicles
Textile Machinery • • • • • • • • • • • • • • • • • • Ring spinning frames, air-jet looms, water-jet looms
Others • • • • • • • • • • • • • • • • • • • • • • • • • • • Ball grid array-type plastic package substrates for IC chipsets, casting machines

63
TOYOTA INDUSTRIES CORPORATION

2001

As discussed in Note 3, from the year ended March 31,
2000, revenue and expense accounts of overseas subsidiaries
have been translated into Japanese yen at annual average
rates while year-end rates had been used until the year ended
March 31, 1999. Consequently, sales, operating income,assets, depreciation and amortization and capital
expenditures increased by ¥4,477 million, ¥251 million, ¥145
million, ¥287 million and ¥960 million for the Automobile

Segment, and also increased by ¥5,856 million, ¥338 million,¥210 million, ¥135 million and ¥303 for the Materials
Handling Equipment Segment. In addition, sales, operating
loss, depreciation and amortization and capital expenditures
increased by ¥99 million, ¥30 million, ¥12 million and ¥5
million, and assets decreased by ¥36 million for the Textile
Machinery Segment.

(2) Geographical segments
As of and for the years ended March 31, 2001, 2000 and 1999:
Thousands of
U.S. dollars

Millions of yen

64
TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2001

2001

2000

1999

2001

¥586,087
31,770¥531,274
25,309¥465,444
18,860$4,730,323
256,416

617,857

556,583

484,304

4,986,739

123,355
337

79,232–

78,264–

995,601
2,720

123,692

79,232

78,264

998,32155,826
749

–
–

–
–

450,573
6,045

56,575––456,618

2,115
478

15,267589

15,168551

17,070
3,858

2,593

15,856

15,71920,928Subtotal

800,717651,671578,287

6,462,606

Elimination of inter-segment transactions(33,334)(25,898)(19,411)(269,039)

Total¥767,383¥625,773¥558,876$6,193,567

Operating costs and expenses:
Japan
North America
EuropeOthersElimination of inter-segment transactions¥577,381
118,42253,7242,841(32,289)¥533,987
74,547–
15,358(26,986)¥465,139
73,342–
15,100(19,519)$4,660,056
955,787433,608
22,930(260,606)

Total¥720,079¥596,906¥534,062$5,811,775

Operating income (loss):Japan
North America
EuropeOthersElimination of inter-segment transactions¥ 40,476
5,270
2,851
(248)
(1,045)¥ 22,596
4,685
–
498
1,088

¥ 19,165
4,922
–
619
108

$ 326,683
42,53423,010(2,002)(8,433)Total¥ 47,304¥ 28,867¥ 24,814$ 381,792

Sales:
Japan
Outside customer sales
Inter-segment transactions
North America
Outside customer sales
Inter-segment transactions
EuropeOutside customer sales
Inter-segment transactions
Others
Outside customer sales
Inter-segment transactions

Thousands of
U.S. dollars

Millions of yen

2001

2000

1999

2001

Assets:Japan
North America
EuropeOthersCorporate assets or elimination¥ 460,474
126,520
158,351
4,987
1,119,310¥361,459
44,035–
17,322
263,098¥349,787
39,113–
15,846
212,325$ 3,716,497
1,021,146
1,278,055
40,2509,033,979

Total¥1,869,642¥685,914¥617,071$15,089,927

Significant countries or areas belonging to each segment are as follows:
North America • • • • • • • • • • • U.S.A., Canada
Europe • • • • • • • • • • • • • • • • • Sweden, France, Germany
Others • • • • • • • • • • • • • • • • • India, China65

ANNUAL REPORT 2001

respectively.
Effective for the year ended March 31, 2001, the new
accounting standards for retirement benefits have been
applied. Consequently, operating costs and expenses of theJapan Segment increased by ¥1,005 million ($8,111
thousand) and operating income of the Japan Segment
decreased by the same amount.
Effective for the year ended March 31, 2001, allowance
for retirement and severance benefits for directors andcorporate auditors have been recorded. Consequently,
operating costs and expenses of the Japan Segment increasedby ¥196 million ($1,582 thousand) and operating income of
the Japan Segment decreased by the same amount.
Effective for the year ended March 31, 2001, the new
accounting standards for financial instruments have been
applied. Consequently, assets increased by ¥40 million ($323
thousand) for the Japan Segment and ¥942,594 million($7,607,700 thousand) for corporate assets or elimination.
Effective for the year ended March 31, 2000, the new
accounting standards for income taxes have been applied.
Consequently, assets increased by ¥9,025 million for Japan
Segment, ¥811 million for North America Segment and ¥31
million for the Others Segment.
As discussed in Note 3, from the year ended March 31,
2000, revenue and expense accounts of overseas subsidiaries
have been translated into Japanese yen at annual average
rates while year-end rates had been used until the year ended
March 31, 1999. Consequently, sales, operating income andassets increased by ¥8,031 million, ¥475 million and ¥308
million for the North America Segment, ¥2,401 million, ¥84
million and ¥11 million for the Others Segment.

TOYOTA INDUSTRIES CORPORATION

Corporate assets as of March 31, 2001, included in corporate
assets or elimination amounting to ¥1,278,393 million($10,317,942 thousand) mainly consist of cash and cash
equivalents, short-term investments and investments insecurities held by the Company.
Effective for the year ended March 31, 2001, the Europe
Segment has been separated from the Others Segment
because business there increased in importance. Sales,
operating income, and assets of the Europe Segment in prioryear were ¥14,822 million, ¥681 million, and ¥13,472 million,

(3) Overseas sales
For the years ended March 31, 2001, 2000 and 1999:
Thousands of
U.S. dollars

Millions of yen

66

2001

2000

1999

2001

Overseas sales:
North America
EuropeOthers¥140,161
102,666
55,967¥90,314–
101,678¥93,748–
84,989$1,131,243
828,620451,719

Total¥298,794¥191,992¥178,737$2,411,582

Total sales¥767,383¥625,773¥558,876$6,193,567

Ratios of overseas sales to total sales (%):
North America
EuropeOthers

18.2%
13.4
7.3

14.4%
–
16.3

16.8%
–
15.2

Total

38.9%

30.7%

32.0%

TOYOTA INDUSTRIES CORPORATION

Significant countries or areas belonging to each area as of March 31, 2001 are as follows:
North America • • • • • • • • • • U.S.A., Canada
Europe • • • • • • • • • • • • • • • • Germany, France, U.K.
Others • • • • • • • • • • • • • • • • • China, Indonesia, Australia, Korea, Taiwan
Germany, France and U.K. were included in the Others area until the year ended March 31, 2000.

ANNUAL REPORT 2001

The Europe area, which had been included in the Others area
until the year ended March 31, 2000, has been separately
disclosed the year ended March 31, 2001 due to its increasedmateriality. Sales to the Europe area was ¥54,034 million(8.6% to total sales) in the previous year.
As discussed in Note 3, from the year ended March 31,

2000, revenue and expense accounts of overseas subsidiaries
have been translated into Japanese yen at annual average rates
while year-end rates had been used until the year ended
March 31, 1999. Consequently, overseas sales increased by¥8,027 million for the North America area, ¥2,347 million for
the Others area.

19. Related party transactions
The following transactions were carried out with related parties.
(1) Sales of goods and services for the year ended March 31, 2001, and 2000 are as follows:
Thousands of
U.S. dollars

Millions of yen

Toyota Motor Corporation
Toyota Motor Corporation holds 24.67% of the Company’s
shares as of March 31, 2001. The above transactions were

2001

2000

2001

¥425,377¥393,780$3,433,228

carried out on commercial terms and conditions.

(2) Purchase of goods and services for the year ended March 31, 2001, and 2000 are as follows:
Purchase of goods:
Thousands of
U.S. dollars

Millions of yen

Toyota Motor Corporation

2001

2000

2001

¥195,514¥184,935$1,577,998

Purchase of services:
Thousands of
U.S. dollars

Millions of yen

2001

2000

2001

Toyota Motor Corporation
TOYODA AUTOMATIC LOOM WORKS Health Insurance Society
Toyota Medical Corporation¥4,68569
33¥4,8486232$37,813
557
266

Total

¥4,787¥4,942$38,636

is Yoshitoshi Toyoda as of March 31, 2001 and 2000, who is adirector of the Company and holds 0.05% and 0.06% of theCompany’s shares, respectively. The transactions above werecarried out on commercial terms and conditions.

(3) Outstanding balances arising from sale/purchase of goods/services as of March 31, 2001 and 2000 are as follows:
Receivables from a related party:
Thousands of
U.S. dollars

Millions of yen

Toyota Motor Corporation

2001

2000

2001

¥35,483¥34,782$286,384

Thousands of
U.S. dollars

Millions of yen

Toyota Motor Corporation

2001

2000

2001

¥18,214¥21,120$147,006

Millions of yen

Thousands of
U.S. dollars(4) Loans to an affiliate for the year ended March 31, 2001 are as follows:

Balance at the beginning of the year
Loans made during the year
Repayments during the year

¥ 8,600–(8,600)

Balance at the end of the year¥

A loan was made to ST Liquid Crystal Display Corp., in which
the Company owns 50.0% of the shares, and given on–$ 69,411–(69,411)$commercial terms and conditions without any collateral.

–

ANNUAL REPORT 2001

Payable to a related party:

67
TOYOTA INDUSTRIES CORPORATIONTOYODA AUTOMATIC LOOM WORKS Health InsuranceSociety’s chairman is Shiro Endo as of March 31, 2001, who isa director of the Company and holds 0.01% of the Company’s
shares, and Shigetaka Mitomo as of March 31, 2000, who wasa corporate auditor. Toyota Medical Corporation’s chairman