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Seiko Epson Annual Report 2006
68
Amounts appearing in the table above include leased property acquired from the SANYO Group in connection
with the creation of SANYO EPSON. The acquisition cost, less accumulated depreciation and net book value
transferred from the SANYO Group as capital leases that do not transfer the ownership of the assets to the lessee
at the end of the lease term at October 1, 2004, were as follows:
Millions of yen
Acquisition cost:
Machinery and equipment ¥ 76,744
Furniture and fixtures 1,196
77,940
Less: accumulated depreciation (28,498)
Net book value ¥ 49,442
Depreciation expenses for these leased assets for the years ended March 31, 2004, 2005 and 2006 would have
been ¥2,997 million, ¥9,435 million and ¥15,965 million ($135,907 thousand), respectively, if they were computed
in accordance with the straight-line method over the periods of these capital leases, assuming no residual value.
Interest expense for these capital leases for the years ended March 31, 2004, 2005 and 2006 would have been
¥97 million, ¥982 million and ¥1,470 million ($12,514 thousand), respectively.
Epson has recognized an impairment loss for future lease payments of impaired capital lease assets at SANYO
EPSON, which was recorded in reorganization costs in accordance with Japanese accounting standards. The
amount was ¥1,184 million and ¥317 million ($2,699 thousand) for the years ended March 31, 2005 and 2006,
respectively. For the year ended March 31, 2004, there was no impairment loss for capital leases.
Future lease payments for capital leases at March 31, 2005 and 2006 were as follows:
Thousands of
Millions of yen U.S. dollars
March 31 March 31,
Future lease payments 2005 2006 2006
Due within one year ¥16,003 ¥15,332 $130,518
Due after one year 32,638 18,033 153,512
Total ¥48,641 ¥33,365 $284,030
Amounts appearing in the table above include amounts to be paid on capital leases which have accrued
impairment losses amounting to ¥1,184 million and ¥565 million ($4,810 thousand) as of March 31, 2005 and
2006, respectively. Lease payments for impaired capital lease assets in the year ended March 31, 2006 were
¥472 million ($4,018 thousand).
Future lease payments for non-cancelable operating leases as a lessee at March 31, 2005 and 2006 were as follows:
Thousands of
Millions of yen U.S. dollars
March 31 March 31,
Future lease payments 2005 2006 2006
Due within one year ¥ 3,228 ¥ 4,482 $ 38,154
Due after one year 9,205 12,129 103,252
Total ¥12,433 ¥16,611 $141,406
In addition, future lease receipts for non-cancelable operating leases as a lessor at March 31, 2005 and 2006
were as follows:
Thousands of
Millions of yen U.S. dollars
March 31 March 31,
Future lease receipts 2005 2006 2006
Due within one year ¥ 319 ¥ 315 $ 2,681
Due after one year 1,824 1,505 12,812
Total ¥2,143 ¥1,820 $15,493