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Brother Industries, Ltd. and Consolidated Subsidiaries
For the Years ended March 31, 2011 and 2010
38 Brother Annual Report 2011
14. Research and Development Costs
Research and development costs charged to income were ¥36,253 million ($436,783 thousand) and ¥34,779 million for the years ended March 31,
2011 and 2010, respectively.
15. 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 ¥4,054 million ($48,843 thousand) and ¥1,416 million for the years ended March 31, 2011 and 2010, respectively. Sublease payments, in the
amount of ¥2,248 million ($27,084 thousand) and ¥783 million, were included in the amounts for the years ended March 31, 2011 and 2010,
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, 2011
Millions of Yen
Buildings and
Structures
Furniture and
Fixtures
Machinery and
Vehicles Total
Acquisition cost ¥ 170 ¥ 2,653 ¥ 16 ¥ 2,839
Accumulated depreciation 111 1,271 14 1,396
Accumulated impairment loss 16 584 — 600
Net leased property ¥ 43 ¥ 798 ¥ 2 ¥ 843
March 31, 2010
Millions of Yen
Buildings and
Structures
Furniture and
Fixtures
Machinery and
Vehicles Total
Acquisition cost ¥ 2,512 ¥ 3,227 ¥ 3 ¥ 5,742
Accumulated depreciation 83 368 2 453
Accumulated impairment loss 396 487 — 883
Net leased property ¥ 2,033 ¥ 2,372 ¥ 1 ¥ 4,406
March 31, 2011
Thousands of U.S. Dollars
Buildings and
Structures
Furniture and
Fixtures
Machinery and
Vehicles Total
Acquisition cost $ 2,048 $ 31,963 $ 193 $ 34,204
Accumulated depreciation 1,337 15,313 169 16,819
Accumulated impairment loss 193 7,036 — 7,229
Net leased property $ 518 $ 9,614 $ 24 $ 10,156
Notes to Consolidated Financial Statements