Fujitsu 2003 Annual Report Download - page 48

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46
Furthermore, the counterparties to the derivative transactions are thoroughly assessed in terms of their credit risks.
Therefore, the Group believes that their derivative financial instruments entail minimal market and credit risks.
Control of Derivative Trading
The Group enters into derivative transactions based on regulations established by the Company, and control the risk of
the transaction by assessing the efficiency of their hedging.
Hedge accounting
The group has adopted hedge accounting for its derivative transactions.
Gains or losses on changes in the fair market values of the hedging instruments which consist of forward exchange,
option and swap contracts and related complex contracts are recognized in income when the relating hedged items are
reflected in income.
Fair value of derivative financial instruments:
At March 31, 2002 and 2003, all derivative financial instruments were stated at fair market value and recorded on the
balance sheet.
15. Leases
Lessors
The following is a summary of minimum lease payments receivable, present value, unearned finance income, and an
accumulated allowance for uncollectible minimum lease payments receivable, under finance leases operated by Fujitsu
Leasing Co., Ltd. at March 31, 2002 and 2003.
Yen U.S. Dollars
(millions) (thousands)
At March 31 2002 2003 2003
Minimum lease payments receivable
Within one year ¥64,049 ¥61,951 $ 516,258
Over one year but within five year 115,386 113,971 949,758
Over five year 1,473 1,421 11,842
Total ¥180,908 ¥177,343 $1,477,858
The present value of minimum lease payments receivable
Within one year ¥53,622 ¥52,438 $ 436,983
Over one year but within five year 98,052 98,156 817,967
Over five year 1,252 1,224 10,200
Total ¥152,926 ¥151,818 $1,265,150
At March 31, 2002 and 2003, unearned finance income totaled ¥27,982 millions and ¥25,525 millions ($212,708
thousands), respectively.
At March 31, 2002 and 2003, an accumulated allowance for uncollectible minimum lease payments receivable was
¥1,160 millions and ¥1,012 millions ($8,433 thousands), respectively.
At March 31, 2002 and 2003, future minimum lease payments received within one year under non-cancelable operating
leases amounted to ¥205 millions and ¥278 millions ($2,317 thousands), respectively.
Lessees
The following is a summary of equivalent amounts of acquisition cost, accumulated depreciation, book value of leased
assets, and minimum lease payments required under finance leases at March 31, 2002 and 2003. Yen U.S. Dollars
(millions) (thousands)
At March 31 2002 2003 2003
Acquisition cost ¥171,895 ¥82,286 $685,717
Accumulated depreciation 120,656 27,085 225,709
Book value of leased assets 51,239 55,201 460,008
Minimum lease payments required
Within one year 9,290 16,286 135,717
Over one year but within five year 22,308 39,027 325,225
Over five year 3,728 322 2,683
Total ¥ 35,326 ¥55,635 $ 463,625
The following is a summary of future minimum lease payments required under non-cancelable operating leases in the
aggregate and for each of the following periods. Yen U.S. Dollars
(millions) (thousands)
At March 31 2002 2003 2003
Within one year ¥9,257 ¥8,672 $ 72,267
Over one year but within five year 21,227 16,475 137,292
Over five year 8,882 7,912 65,933
Total ¥39,366 ¥33,059 $275,492
FINANCIAL SECTION Notes to Consolidated Financial Statements