Sharp 2015 Annual Report Download - page 41

Notes to the Consolidated Financial Statements
6. Leases
Finance leases
With regards to finance leases that do not transfer ownership and commenced on or before March 31,
2008, lease payments are recognized as expenses.
Information relating to finance leases that do not transfer ownership and commenced on or before
March 31, 2008, as of, and for the years ended March 31, 2014 and 2015 were as follows:
As lessee
(1) Future minimum lease payments Yen
(millions)
2014 2015
Future minimum lease payments:
Due within one year ¥ 331 ¥ 80
Due after one year 103 23
¥ 434 ¥ 103
(2) Lease payments Yen
(millions)
2014 2015
Lease payments ¥ 1,540 ¥ 331
Operating leases
(a) As lessee
Future minimum lease payments for only non-cancelable contracts as of March 31, 2014 and 2015 were
as follows: Yen
(millions)
2014 2015
Due within one year ¥ 3,657 ¥ 4,088
Due after one year 8,361 10,112
¥ 12,018 ¥ 14,200
(b) As lessor
Future minimum lease receipts for only non-cancelable contracts as of March 31, 2014 and 2015 were as follows:
Yen
(millions)
2014 2015
Due within one year ¥ 2,044 ¥ 1,579
Due after one year 2,963 1,831
¥ 5,007 ¥ 3,410
7. Financial Instruments
(a) Qualitative information on financial instruments
(1) Policies for financial instruments
The Company and its consolidated subsidiaries obtain necessary funds mainly through bank loans
and issuing bonds according to its capital investment plan for its main business of manufacturing and
distributing electronic communication equipment, electronic equipment, electronic application equip-
ment and electronic components.
Short-term operating funds are obtained through bank loans.
Transactions involving such financial instruments are conducted with creditworthy financial
institutions.
The Company utilizes derivative transactions for minimizing risk and not for speculative or dealing
purposes.
(2) Description and risks of financial instruments
Notes and accounts receivable are exposed to customer credit risk. Some notes and accounts receiv-
able are denominated in foreign currencies because the Company conducts business globally and,
therefore, are exposed to foreign currency risk. Notes and accounts payable (excluding other accounts
payable) are payable within one year. Some notes and accounts payable arising from the import of
raw materials are denominated in foreign currencies and therefore are exposed to foreign currency
risk. The Company offsets foreign currency denominated notes and accounts receivable with notes
and accounts payable, and uses forward exchange contracts to hedge foreign currency risk exposure.
Other securities are held for the long term to develop better business alliances and relations with
Company customers and suppliers. Other securities are exposed to market price fluctuation risk. Long-
term borrowings (included in long-term debt) and bonds (included in short-term borrowings and long-
term debt) are mainly for capital investments. The longest repayments and redemption date for bonds
is five and a quarter years from March 31, 2015.
Derivative transactions consist primarily of forward exchange contracts, and currency swap con-
tracts are used to hedge foreign currency risk exposure. Interest swap contracts are used to hedge
interest rate risk exposure. For hedging instruments, hedged items, hedging policies and assessment
methods of effectiveness of hedging instruments, see Note 1.
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Notes to the Consolidated
Financial Statements
Financial Section
Segment Outline
Medium-Term Management Plan
for Fiscal 2015 through 2017
Investor Information
Directors, Audit & Supervisory Board
Members and Executive Officers
Risk Factors
Corporate Governance
Contents
Corporate Social
Responsibility (CSR)
Message to our Shareholders
Fiscal 2014 Review by
Product Group
Financial Highlights
SHARP Annual Report 2015
Consolidated
Subsidiaries
Independent Auditor’s
Report
Consolidated Statements of
Cash Flows
Consolidated Statements of
Changes in Net Assets
Consolidated Statements of
Comprehensive Income
Consolidated Statements of
Operations
Consolidated Balance Sheets
Financial Review
Five-Year Financial Summary