Nikon 2006 Annual Report Download - page 44

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42
Obligations under finance leases at March 31, 2006 and 2005 were as follows:
Due within one year
Due after one year
Total
Thousands of
U.S. Dollars
2006
$ 18,339
30,457
$ 48,796
2005
¥ 2,141
4,194
¥ 6,335
2006
¥ 2,154
3,578
¥ 5,732
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 ¥2,461 million ($20,951 thousand) and ¥2,596 million for the fiscal years ended March 31, 2006 and 2005, 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, 2006 and 2005 was as follows:
Acquisition cost
Accumulated depreciation
Net leased property
Total
$ 99,330
50,534
$ 48,796
Furniture
and
Fixtures
$ 46,774
21,451
$ 25,323
Machinery
and
Equipment
$ 52,556
29,083
$ 23,473
Thousands of U.S. Dollars
2006
Total
¥ 11,668
5,936
¥ 5,732
Furniture
and
Fixtures
¥ 5,495
2,520
¥ 2,975
Machinery
and
Equipment
¥ 6,173
3,416
¥ 2,757
Millions of Yen
2006
Acquisition cost
Accumulated depreciation
Net leased property
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
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 ¥2,461 million ($20,951 thousand) and ¥2,596 million for the fiscal years ended March 31, 2006 and 2005, respectively.
The minimum rental commitments under noncancelable operating leases at March 31, 2006 and 2005 were as follows:
Due within one year
Due after one year
Total
Thousands of
U.S. Dollars
2006
$ 20,639
43,332
$ 63,971
2005
¥ 1,965
3,915
¥ 5,880
2006
¥ 2,425
5,090
¥ 7,515
Millions of Yen