Epson 2009 Annual Report Download - page 71

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70
Depreciation/amortization expenses for these leased assets for the year ended March 31, 2008, would have
been ¥8,437 million if they were computed in accordance with the straight-line method over the periods of
these capital leases, assuming no residual value.
Interest expense for these capital leases for the years ended March 31, 2008, would have been ¥525
million.
Epson has recognized an impairment loss, which was primarily recorded in the business structure
improvement expenses, for future lease payments of impaired capital lease assets in accordance with
Japanese accounting standards. The amount was ¥55 million for the year ended March 31, 2008.
Future lease payments for capital leases at March 31, 2008, were as follows:
Millions of yen
March 31,
Future lease payments 2008
Due within one year ¥6,860
Due after one year 4,770
Total ¥11,630
Amounts appearing in the table above include amounts to be paid on capital leases that have accrued
impairment losses amounting to ¥5,610 million as of March 31, 2008. Lease payments for impaired capital
lease assets in the year ended March 31, 2008, were ¥3,406 million.
Future lease payments for non-cancelable operating leases as a lessee at March 31, 2008 and 2009, were as
follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31,
Future lease payments 2008 2009 2009
Due within one year ¥4,949 ¥4,216 $42,919
Due after one year 6,651 9,068 92,324
Total
¥11,601 ¥13,285 $135,243
20. Contingent liabilities
Contingent liabilities for guarantee of employees’ housing loans from banks at March 31, 2008 and 2009,
were ¥2,038 million and ¥1,707 million ($17,377 thousand), respectively.
21. Related party transactions
The Company has entered into real estate lease agreements with K.K. Sunritz (“Sunritz”). Mr. Yasuo
Hattori, a vice-chairman and director of the Company, and his relatives own 9.5% and 71.3% of the
outstanding shares of Sunritz, respectively.
A subsidiary of the Company has also entered into real estate lease agreements with Hamazawa Investment
Company (“Hamazawa”), which is a subsidiary of Sunritz.
Mr. Saburo Kusama, who was a chairman and director of the Company for the year ended March 31, 2008,
was a chairman of SE GAKUEN Educational Foundation (“SE GAKUEN”) and a chairman of Epson
International Scholarship Foundation (“International Scholarship Foundation”) for the year ended March
2008, and owned 0.0% of the outstanding shares of the Company.
The company and its subsidiary’s transactions with these related parties for the years ended March 31,