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Hitachi, Ltd. Annual Report 2006
52
7. LEASES
The Company and certain subsidiaries are lessors of certain assets such as manufacturing machinery and equipment
under financing and operating lease arrangements with terms ranging from 3 to 6 years.
The amount of leased assets at cost under operating leases and accumulated depreciation as of March 31, 2006 amounted
to ¥1,719,894 million ($14,699,949 thousand) and ¥1,316,286 million ($11,250,308 thousand), respectively. The leased
assets are depreciated using the straight-line method over their estimated useful lives.
The following table shows the future minimum lease receivables of financing and non-cancelable operating leases as of
March 31, 2006 and the future minimum lease receivables of financing leases as of March 31, 2005:
Thousands of
Millions of yen U.S. dollars
Financing Operating Financing Operating
leases leases leases leases
Years ending March 31 2006 2006
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥163,124 ¥ 72,617 $1,394,222 $ 620,658
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127,185 55,187 1,087,051 471,684
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,882 37,865 819,504 323,633
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,541 19,516 508,898 166,803
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,107 9,497 214,590 81,171
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,483 12,345 354,556 105,513
Total minimum payments to be received . . . . . . . . . . . . . . . . 512,322 ¥207,027 4,378,821 $1,769,462
Amount representing executory costs . . . . . . . . . . . . . . . . . . (20,449) (174,778)
Unearned income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,934) (290,034)
Allowance for doubtful receivables . . . . . . . . . . . . . . . . . . . . . (6,182) (52,838)
Net investment in financing leases . . . . . . . . . . . . . . . . . . . . . ¥451,757 $3,861,171
Millions of yen
Financing
leases
2005
Total minimum payments to be received . . . . . . . . . . . . . . . . ¥603,442
Amount representing executory costs . . . . . . . . . . . . . . . . . . (32,029)
Unearned income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39,650)
Allowance for doubtful receivables . . . . . . . . . . . . . . . . . . . . . (5,004)
Net investment in financing leases . . . . . . . . . . . . . . . . . . . . . ¥526,759
The Company and certain subsidiaries lease certain manufacturing machinery and equipment. The amounts of leased
assets at cost under capital leases as of March 31, 2006 and 2005 amounted to ¥33,516 million ($286,462 thousand) and
¥33,239 million, respectively, and accumulated depreciation as of March 31, 2006 and 2005 amounted to ¥19,307 million
($165,017 thousand) and ¥17,803 million, respectively.
In March 2006, a certain subsidiary sold its land for proceeds of ¥10,560 million ($90,256 thousand), and entered into a
lease back agreement for a portion of the land. The lease back is classified as an operating lease with a term of 25 years.
The gain of the leased back portion in the amount of ¥2,736 million ($23,385 thousand) has been deferred and is being
recognized over the lease term.