Epson 2007 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2007 Epson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 89

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89

77
Annual Report 2007
If capital leases that do not transfer the ownership of the assets to the lessee at the end of the lease term were
capitalized, the capital lease assets at March 31, 2006 and 2007 would have been as follows:
Thousands of
Millions of yen U.S. dollars
March 31 March 31,
2006 2007 2007
Acquisition cost:
Buildings and structures ¥ — ¥1,785 $ 15,121
Machinery and equipment 78,183 56,802 481,169
Furniture and fixtures 3,375 2,438 20,652
Intangible assets 592 273 2,313
82,150 61,298 519,255
Less:
Accumulated depreciation (50,302) (42,366) (358,882)
Accumulated impairment loss (821) (9,024) (76,442)
(51,123) (51,390) (435,324)
Net book value ¥ 31,027 ¥9,908 $ 83,931
Depreciation expenses for these leased assets for the years ended March 31, 2005, 2006 and 2007 would
have been ¥9,435 million, ¥15,965 million and ¥14,637 million ($123,990 thousand), respectively, if they were com-
puted 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, 2005, 2006 and 2007 would have been
¥982 million, ¥1,470 million and ¥920 million ($7,793 thousand), respectively.
Epson has recognized an impairment loss for future lease payments of impaired capital lease assets in accor-
dance with Japanese accounting standards, which was recorded in reorganization costs. The amount was ¥1,184
million, ¥317 million and ¥8,977 million ($76,044 thousand) for the years ended March 31, 2005, 2006 and 2007,
respectively.
Future lease payments for capital leases at March 31, 2006 and 2007 were as follows:
Thousands of
Millions of yen U.S. dollars
March 31 March 31,
Future lease payments 2006 2007 2007
Due within one year ¥15,332 ¥8,719 $73,859
Due after one year 18,033 11,134 94,316
Total ¥33,365 ¥19,853 $168,175
Amounts appearing in the table above include amounts to be paid on capital leases which have accrued impair-
ment losses amounting to ¥565 million and ¥8,989 million ($76,146 thousand) as of March 31, 2006 and 2007,
respectively. Lease payments for impaired capital lease assets in the years ended March 31, 2006 and 2007 were
¥472 million and ¥188 million ($1,593 thousand), respectively.