Nikon 2005 Annual Report Download - page 39

Download and view the complete annual report

Please find page 39 of the 2005 Nikon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 50

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50

37
11. RESEARCH AND DEVELOPMENT COSTS
Research and development costs incurred were ¥33,561 million ($312,514 thousand) and ¥30,165 million for the fiscal years ended March 31,
2005 and 2004, respectively.
12. LEASE PAYMENTS
Total lease payments under financing lease arrangements that do not transfer ownership of the leased property to the Company and its domestic
subsidiaries were ¥2,596 million ($24,177 thousand) and ¥2,519 million for the fiscal years ended March 31, 2005 and 2004, respectively.
Obligations under finance leases at March 31, 2005 and 2004 were as follows:
Due within one year
Due after one year
Total
Thousands of
U.S. Dollars
2005
$ 19,933
39,059
$ 58,992
2004
¥ 2,238
3,915
¥ 6,153
2005
¥ 2,141
4,194
¥ 6,335
Millions of Yen
The amount of obligations under finance leases includes the imputed interest expense portion.
Depreciation expense, which is not reflected in the accompanying consolidated statements of income, computed by the straight-line
method, was ¥2,596 million ($24,177 thousand) and ¥2,519 million for the fiscal years ended March 31, 2005 and 2004, respectively.
13.DERIVATIVES
The Group enters into derivative contracts, including foreign exchange forward contracts, currency option contracts, foreign currency swap
contracts and interest rate swap contracts to hedge foreign exchange risk and interest rate exposures. The Group does not hold or issue deriv-
atives for trading purposes. Derivatives are subject to market risk and credit risk. Market risk is the exposure created by potential fluctuations in
market conditions, including in changes in interest or foreign exchange rates. Credit risk is the possibility that a loss may result from a counter-
party’s failure to perform according to the terms and conditions of the contract.
Because the counterparties to those derivative contracts are limited to major international financial institutions, the Group does not antici-
pate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate the authorization
and credit limit amount.
Pro forma information of leased property carried by finance leases that do not transfer ownership of the leased property to the lessee on
an “as if capitalized” basis as of and for the fiscal years ended March 31, 2005 and 2004 was as follows:
Acquisition cost
Accumulated depreciation
Net leased property
Total
$ 119,202
60,210
$ 58,992
Furniture
and
Fixtures
$ 51,111
26,981
$ 24,130
Machinery
and
Equipment
$ 68,091
33,229
$ 34,862
Thousands of U.S. Dollars
2005
Total
¥ 12,801
6,466
¥ 6,335
Furniture
and
Fixtures
¥ 5,489
2,898
¥ 2,591
Machinery
and
Equipment
¥ 7,312
3,568
¥ 3,744
Millions of Yen
2005
Acquisition cost
Accumulated depreciation
Net leased property
Total
¥ 12,818
6,665
¥ 6,153
Furniture
and
Fixtures
¥ 6,308
3,589
¥ 2,719
Machinery
and
Equipment
¥ 6,510
3,076
¥ 3,434
Millions of Yen
2004
The minimum rental commitments under noncancelable operating leases at March 31, 2005 and 2004 were as follows:
Due within one year
Due after one year
Total
Thousands of
U.S. Dollars
2005
$ 18,294
36,461
$ 54,755
2004
¥ 1,110
1,969
¥ 3,079
2005
¥ 1,965
3,915
¥ 5,880
Millions of Yen