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Notes to Consolidated Financial Statements
Brother Industries, Ltd. and Consolidated Subsidiaries
For the Years ended March 31, 2010 and 2009
12. Research and Development Costs
Research and development costs charged to income were ¥34,779 million ($373,968 thousand) and ¥36,859 million for the years ended March 31,
2010 and 2009, respectively.
13. Leases
(As lessee)
The Group leases certain buildings and structures, furniture and fixtures, machinery and vehicles.
Total rental expense of finance leases, except for those cases in which the ownership of the leased assets is transferred to the lessee,
amounted to ¥1,548 million ($16,645 thousand) and ¥79 million for the years ended March 31, 2010 and 2009, respectively. Sublease pay-
ments, in the amount of ¥503 million ($5,409 thousand) and ¥63 million, were included in the amounts for the years ended March 31, 2010 and
2009, respectively.
Pro forma information of leased property whose lease inception was before March 31, 2008
ASBJ Statement No. 13, “Accounting Standard for Lease Transactions” requires that all finance lease transactions should be capitalized to recognize
lease assets and lease obligations in the balance sheet. However, the ASBJ Statement No. 13 permits leases without ownership transfer of the
leased property to the lessee whose lease inception was before March 31, 2008 to be accounted for as operating lease transactions if certain “as if
capitalized” information is disclosed in the note to the financial statements. The Group applied the ASBJ Statement No. 13 effective April 1, 2008
and accounted for such leases as operating lease transactions. Pro forma information of leased property whose lease inception was before March
31, 2008 such as acquisition cost, accumulated depreciation, accumulated impairment loss, obligations under finance leases, depreciation
expense, interest expense and other information of finance leases that do not transfer ownership of the leased property to the lessee on an "as if
capitalized" basis was as follows:
March 31, 2010
Millions of Yen
Buildings and
Structures
Furniture and
Fixtures
Machinery and
Vehicles Total
Acquisition cost ¥ 3,202 ¥ 915 ¥ 7,150 ¥ 11,267
Accumulated depreciation 934 548 4,789 6,271
Net leased property ¥ 2,268 ¥ 367 ¥ 2,361 ¥ 4,996
March 31, 2009
Millions of Yen
Furniture and
Fixtures
Machinery and
Vehicles Total
Acquisition cost ¥ 1 ¥ 144 ¥ 145
Accumulated depreciation 1 138 139
Net leased property ¥ 0 ¥ 6 ¥ 6
March 31, 2010
Thousands of U.S. Dollars
Buildings and
Structures
Furniture and
Fixtures
Machinery and
Vehicles Total
Acquisition cost $ 34,430 $ 9,839 $ 76,882 $ 121,151
Accumulated depreciation 10,043 5,893 51,495 67,431
Net leased property $ 24,387 $ 3,946 $ 25,387 $ 53,720
34 Brother Annual Report 2010