Epson 2004 Annual Report Download - page 67

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65SEIKO EPSON CORPORATION
Future lease payments for non-cancelable operating leases as a lessee at March 31, 2003 and 2004 were
as follows:
Thousands of
Millions of yen U.S. dollars
March 31 March 31,
Future lease payments 2003 2004 2004
Due within one year ¥ 2,983 ¥ 2,729 $ 25,821
Due after one year 10,071 8,511 80,528
Total ¥13,054 ¥11,240 $106,349
In addition, future lease receipts for non-cancelable operating leases as a lessor at March 31, 2003 and 2004
were as follows:
Thousands of
Millions of yen U.S. dollars
March 31 March 31,
Future lease receipts 2003 2004 2004
Due within one year ¥ 338 ¥ 301 $ 2,848
Due after one year 2,589 2,008 18,999
Total ¥2,927 ¥2,309 $21,847
17. Commitments and contingent liabilities
Contingent liabilities for guarantee of employees’ housing loans from banks at March 31, 2003 and 2004 were
¥4,534 million and ¥3,744 million ($35,424 thousand), respectively. Furthermore, the amount of discounted notes,
which consisted of discounted letters of credit, at March 31, 2003 and 2004 were ¥160 million and ¥19 million
($180 thousand), respectively.
18. Related party transactions
The Company has entered into real estate lease agreements and certain other agreements with K.K. Sunritz
(“Sunritz”) in which Mr. Yasuo Hattori, a Vice Chairman and Director of the Company, and their relatives own
9.5% and 71.3% of the outstanding shares of Sunritz, respectively. The Company has also purchased land and
buildings from Sunritz.
Mr. Yasuo Hattori, a Vice Chairman and Director of the Company, is a representative director of Aoyama Kigyo
K.K. (“Aoyama”). Mr. Yasuo Hattori owns 3.6% of the outstanding shares of the Company. Aoyama owns 10.3%
of the outstanding shares of the Company. Mr. Yasuo Hattori and their relatives own 26.7% and 38.5% of the
outstanding shares of Aoyama, respectively. The Company has entered into lease agreements and certain other
agreements with Aoyama effective from March 1, 2003.
Mr. Koichi Murano, a Statutory Auditor of the Company until June 26, 2001, is also a representative director of
Seiko Corporation. Until June 26, 2001, Seiko Corporation was regarded as a related party of the Company. The
Company sells its products, mainly watches, and pays certain expenses to Seiko Corporation under terms and
conditions stipulated in sales agreements. The Company and Seiko Corporation have also entered into other
various types of agreements. All the transactions and balances stated in the table below are up to June 30, 2001.
The Company’s management believes that all transactions with related parties as described in the
preceding paragraphs and in the table below were in accordance with terms and conditions decided on a
market-determined basis.