Pentax 2007 Annual Report Download - page 61

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59
Obligations under operating leases:
Millions of Yen Thousands of U.S. Dollars
2007 2006 2007
Due within one year ¥184 ¥— $1,559
Due after one year 400 —3,388
Total ¥584 ¥— $4,947
No. 11 CONTINGENT LIABILITIES
At March 31, 2007, the Group had the following contingent liabilities:
Millions of Yen Thousands of U.S. Dollars
2007 2006 2007
Guarantees of borrowings and lease obligations for customers ¥2,772 ¥2,206 $23,482
Guarantees of borrowings for the Group’s employees 3425
Total ¥2,775 ¥2,210 $23,507
The Group enters into foreign currency forward contracts to hedge
foreign currency exchange risk associated with certain assets and
liabilities denominated in foreign currencies.
All derivative transactions are entered into to hedge foreign
currency exposures incorporated within its business. Accordingly,
market risk in these derivatives is basically offset by opposite
movements in the value of hedged assets or liabilities.
Because the counterparties to these derivatives are limited
to major international financial institutions, the Group does not
anticipate 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.
Foreign currency forward contracts which qualify for hedge
accounting for the years ended March 31, 2007 and 2006 and
such amounts which are assigned to the associated assets or
liabilities and are recorded on the balance sheets at March 31,
2007 and 2006, are not subject to disclosure of market value
information.
No. 12 DERIVATIVES