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35
Brother Annual Report 2007
Expected revenues including interest revenue portion from finance leases and operating leases at M arch 31, 2007 and 2006 w ere as follow s:
Sublease revenues included in the above table at M arch 31, 2007 and 2006 w ere as follow s:
899
1,237
2,136
8
0
8
134
247
381
0
-
0
106
146
252
1
0
1
Finance leases:
Due w ithin one year
Due after one year
Total
Operating leases:
Due w ithin one year
Due after one year
Total
Thousands of
U.S. Dollars
200720062007
Millions of Yen
¥
¥
¥
¥
¥
¥
¥
¥
$
$
$
$
899
1,237
2,136
134
247
381
106
146
252
Finance leases:
Due w ithin one year
Due after one year
Total
Thousands of
U.S. Dollars
200720062007
Millions of Yen
¥
¥
¥
¥
$
$
13. Derivatives
The Group enters into foreign currency forward contracts and currency option contracts to hedge
foreign exchange risk associated w ith certain assets and liabilities denominated in foreign currencies.
The Group also enters into interest rate sw ap contracts to manage its interest rate exposures on
certain liabilities.
All derivative transactions are entered into to hedge interest and foreign currency exposures
incorporated within the Group's business. Accordingly, market risk in these derivatives is basically
offset by opposite movements in the value of hedged assets or liabilities. The Group does not
hold or issue derivatives for trading purposes.
Because the counterparties to these derivatives are limited to major international financial
institutions w ith high credit rating, the Group does not anticipate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance w ith internal
policies w hich regulate the authorization and credit limit amount.
The contract or notional amounts of derivatives w hich are show n in the following table do not
represent the amounts exchanged by the parties and do not measure the Group's exposure to
credit or market risk.