Wacom 2007 Annual Report Download - page 30

There is no impairment losses allocated to leased assets.
Thousands of yen
Foreign exchange forward contracts:
To sell U.S. dollars
To sell Euros
Total
$7,636
2,618
$10,254
$7,600
2,665
$10,265
$36
(47)
($11)
Thousands of U.S. dollars
March 31, 2007
Contract
amount Fair value
Unrealized
gain/(loss)
14. Derivatives:
All derivative transactions are entered into in order to
hedge foreign currency exposures within the
Company’s business. Accordingly, the market risk in
these derivatives is basically oset by opposite
movements in the value of hedged assets or liabilities.
The Company does not hold derivatives for trading or
speculative purposes. Because the counterparties to
these derivatives are limited to major international
nance institutions, the Company does not anticipate
any losses arising from credit risk.
Derivative transactions entered into by the Company
have been executed in accordance with internal policies,
which regulate the authorization and credit limit
amount.

The size of the amount of the derivative contracts does
not necessarily indicate the signicance of the risk.
Certain information on outstanding derivative contracts
is shown below.
Foreign exchange forward contracts:
To sell Euros ¥140,665 ¥141,867 (¥1,202)
Thousands of yen
March 31, 2006
Contract
amount Fair value
Unrealized
gain/(loss)
Foreign exchange forward contracts:
To sell U.S. dollars
To sell Euros
Total
¥901,430
309,087
¥1,210,517
¥897,180
314,660
¥1,211,840
¥4,250
(5,573)
¥(1,323)
Thousands of yen
March 31, 2007
Contract
amount Fair value
Unrealized
gain/(loss)
13. Leases:
Certain information on nance lease contracts of the
Company and its subsidiaries, as a lessee, is shown
below:
(1) Finance leases, which do not transfer ownership of
the assets to the lessee, are as follows:
Machinery, equipment and vehicles
Tools and furniture
Software
Total
¥8,021
24,434
46,240
¥78,695
¥5,743
13,177
26,136
¥45,056
¥2,278
11,257
20,104
¥33,639
Net balance as of
March 31, 2006
Acquisition
cost
Accumulated
depreciation
Thousands of yen
Machinery, equipment and vehicles
Tools and furniture
Software
Total
¥10,726
20,024
46,240
¥76,990
¥8,128
14,083
34,177
¥56,388
¥2,598
5,941
12,063
¥20,602
Net balance as of
March 31, 2007
Acquisition
cost
Accumulated
depreciation
Thousands of U.S. dollars
Machinery, equipment and vehicles
Tools and furniture
Software
Total
$91
170
392
$653
$69
119
290
$478
$22
51
102
$175
Net balance as of
March 31, 2007
Acquisition
cost
Accumulated
depreciation
b) Future lease payments under nance leases are as follows:
a) Acquisition costs of leased assets under nance
leases are as follows:
Due within one year
Due after more than one year
¥14,804
23,924
¥38,728
¥13,572
12,948
¥26,520
$115
110
$225
Thousands of
U.S. dollars
Thousands of yen
March 31
2006 2007 2007
March 31
Lease payments
Amount representing depreciation
Amount representing interest
¥15,506
¥16,502
¥585
¥14,914
¥14,640
¥571
$126
$124
$5
Thousands of
U.S. dollars
Thousands of yen
March 31
2006 2007 2007
March 31
c ) Lease payments and amounts representing
depreciation and interest are as follows:
(2) Minimum lease payments under non-cancelable
operating leases are as follows:
(3) Calculation method of depreciation equivalents-
Depreciation equivalents are calculated on the
declining-balance method for tangible xed assets over
the lease terms with residual value by 10%, before
multiplying by 10 and being divided by 9 and on the
straight-line method for the intangible over the lease
terms without residual value.
(4)Allocation of interest expense equivalents-
Dierences between total lease expenses and purchase
price equivalents of the leased properties comprise
interest expense equivalents and insurance,
maintenance and certain other operating costs. Interest
expense equivalents are allocated using the interest
method over the lease terms.
Due within one year
Due after one year
Total minimum lease payments
¥18,523
24,211
¥42,734
¥22,882
37,910
¥60,792
$194
321
$515
Thousands of
U.S. dollars
Thousands of yen
March 31
2006 2007 2007
March 31
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