JVC 2003 Annual Report Download - page 52

Victor Company of Japan, Limited
50 Annual Report 2003
As the company applied hedge accounting to all derivatives
in 2002, market value information for 2002 is not disclosed.
Thousands of U.S. dollars
Contract Market Recognized
March 31, 2003 amount value gain (loss)
Swap contracts:
Receive floating/pay fixed $66,775 $(4,417) $(4,417)
The fair value of interest swap contracts is estimated based
on the quotes obtained from financial institutions.
14. LEASE INFORMATION
The Company leases certain buildings and structures, vehicles,
machinery and equipment and other assets under non-capital-
ized finance and operating leases. Finance leases which do not
transfer ownership to lessees are not capitalized and are ac-
counted for in the same manner as operating leases. Certain
information for such non-capitalized finance and operating leases
is as follows.
Lessee:
(1) A summary of assumed amounts of acquisition cost, accu-
mulated depreciation and net book value at March 31, 2003
and 2002 is as follows:
Millions of yen
Acquisition Accumulated Net book
cost depreciation value
2003:
Buildings and structures ¥ 1,505 ¥ 687 ¥ 818
Vehicles, machinery and
equipment 7,315 3,621 3,694
Tools, furniture and fixtures 10,922 5,282 5,640
Leasehold rights 399 219 180
Software 128 51 77
¥20,269 ¥9,860 ¥10,409
Millions of yen
Acquisition Accumulated Net book
cost depreciation value
2002:
Buildings and structures ¥ 1,223 ¥ 446 ¥ 777
Vehicles, machinery and
equipment 7,882 3,688 4,194
Tools, furniture and fixtures 12,575 6,221 6,354
Leasehold rights 183 79 104
Software 56 27 29
¥21,919 ¥10,461 ¥11,458
Thousands of U.S. dollars
Acquisition Accumulated Net book
cost depreciation value
2003:
Buildings and structures $ 12,542 $ 5,725 $ 6,817
Vehicles, machinery and
equipment 60,958 30,175 30,783
Tools, furniture and fixtures 91,017 44,017 47,000
Leasehold rights 3,325 1,825 1,500
Software 1,067 425 642
$168,909 $82,167 $86,742
(2) Future minimum lease payments under the non-capitalized
finance and operating leases at March 31, 2003 and 2002 are
as follows:
Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Due within one year ¥ 3,768 ¥ 4,346 $31,400
Due after one year 7,108 7,561 59,233
¥10,876 ¥11,907 $90,633
Thousands of
Millions of yen U.S. dollars
Operating leases 2003 2002 2003
Due within one year ¥1,506 ¥1,053 $12,550
Due after one year 2,654 1,941 22,117
¥4,160 ¥2,994 $34,667
(3) Lease payments, assumed depreciation charges and assumed
interest charges for the years ended March 31, 2003, 2002
and 2001 are as follows:
Thousands of
Millions of yen U.S. dollars
2003 2002 2001 2003
Lease payments ¥3,727 ¥4,253 ¥3,018 $31,058
Assumed
depreciation
charges 3,367 3,780 3,018 28,058
Assumed interest
charges 290 466 — 2,417
(4) Assumed depreciation charges are computed using the
straight-line method over lease terms assuming no residual value.
(5) The excess amount of total lease payments over acquisition
cost of leased property is deemed as accumulated interest ex-
penses and allocated for each period on the basis of the inter-
est method.
Lessor:
The Company and its subsidiary lease certain equipment under
non-capitalized finance leases, as lessees and lease that equip-
ment under non-capitalized finance leases, as lessors. Future
minimum lease receipts under these non-capitalized finance and
operating leases at March 31, 2003 and 2002 are as follows:
Thousands of
Millions of yen U.S. dollars
Non-capitalized finance leases 2003 2002 2003
Due within one year ¥ 683 ¥1,031 $ 5,692
Due after one year 778 1,093 6,483
¥1,461 ¥2,124 $12,175
Thousands of
Millions of yen U.S. dollars
Operating leases 2003 2002 2003
Due within one year ¥15 ¥38 $125
Due after one year —17 —
¥15 ¥55 $125