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35Brother Annual Report 2008
Sublease revenues included in the above table at March 31, 2008 and 2007 were as follows:
Thousands of
Millions of Yen U.S. Dollars
2008 2007 2008
Finance leases:
Due within one year ¥ 70 ¥ 106 $ 700
Due after one year 76 146 760
Total ¥ 146 ¥ 252 $ 1,460
13. Derivatives
The Group enters into foreign currency forward contracts and currency option contracts to hedge foreign exchange risk
associated with certain assets and liabilities denominated in foreign currencies. The Group also enters into interest rate
swap 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 with 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 with internal policies which regu-
late the authorization and credit limit amount.
The contract or notional amounts of derivatives which are shown 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.