Nissan 2004 Annual Report Download - page 67

Nissan Annual Report 2003 65
b) Lessors’ accounting
The following amounts represent the acquisition costs, accumulated depreciation and net book value of the leased assets relating to finance
leases accounted for as operating leases at March 31, 2003:
Millions of yen
Acquisition Accumulated Net book
Fiscal year 2002 (As of Mar. 31, 2003) costs depreciation value
Machinery and equipment................................................ ¥89,924 ¥41,199 ¥48,725
Other..................................................................................... 7,483 3,768 3,715
Total....................................................................................... ¥97,407 ¥44,967 ¥52,440
Lease income relating to finance leases accounted for as operating leases in the accompanying consolidated financial statements amounted
to ¥21,216 million and ¥21,850 million for the years ended March 31, 2003 and 2002, respectively. Depreciation of the assets leased under finance
leases accounted for as operating leases and the interest portion included in lease income amounted to ¥18,351 million and ¥2,649 million,
respectively, for the year ended March 31, 2003 and ¥18,946 million and ¥3,452 million, respectively, for the year ended March 31, 2002.
Future minimum lease income subsequent to March 31, 2004 for noncancelable operating leases is summarized as follows:
Thousands of
Year ending Mar. 31, Millions of yen U.S. dollars
2005.......................................................................................................... ¥178,939 $1,688,104
2006 and thereafter............................................................................... 259,704 2,450,038
Total ........................................................................................................... ¥438,643 $4,138,142
See Note 2(c) for the change in the method of accounting for noncancelable lease transactions which transfer substantially all risks and
rewards associated with the ownership of assets.
17. COMMITMENTS AND CONTINGENCIES
At March 31, 2004, the Company and its consolidated subsidiaries had the following contingent liabilities:
Thousands of
Millions of yen U.S. dollars
As endorser of notes receivable discounted with banks ....................................................................................... ¥2,782 $ 26,245
As guarantor of employees’ housing loans from banks and others..................................................................... 249,363 2,352,481
............................................................................................................................................................................................. ¥252,145 $2,378,726
In addition to the above, at March 31, 2004, the Company was committed to provide guarantees of indebtedness of unconsolidated subsidiaries
and affiliates in the aggregate amount of ¥2,962 million ($27,943 thousand) at the request of the lending banks. The Company also provided
letters of awareness to financial institutions to whom outstanding trade receivables of ¥42,862 million ($404,359 thousand) had been sold.
The outstanding balance of installment receivables sold with recourse amounted to ¥27,714 million ($261,453 thousand) at March 31, 2004.
Certain consolidated subsidiaries have entered into overdraft and loan commitment agreements amounting to ¥84,100 million ($793,396
thousand) with their customers and others. The loans receivable outstanding and the unused balances under these credit facilities as of
March 31, 2004 amounted to ¥11,043 million ($104,179 thousand) and ¥73,057 million ($689,217 thousand), respectively. Since many of
these facilities expire without being utilized and the related borrowings are sometimes subject to a review of the borrowers’ credibility, any
unused amount will not necessarily be utilized at the full amount.