Mitsubishi 2004 Annual Report Download - page 50

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48
2. Future minimum lease payments of such finance leases:
In millions of yen In thousands of
U.S. dollars
2004 2003 2004
Due within 1 year ¥ 9,542 ¥11,967 $ 90,290
Due after 1 year 14,121 20,911 133,608
Total ¥23,663 ¥32,879 $223,899
3. Lease payment expense, notional depreciation expense and notional interest expense of such finance leases:
In millions of yen In thousands of
U.S. dollars
2004 2003 2004
Lease payment expense ¥12,861 ¥18,893 $121,689
Notional depreciation expense ¥13,075 ¥16,020 $123,718
Notional interest expense ¥ 608 ¥ 1,371 $ 5,759
4. Notional finance lease depreciation method
Notional depreciation of such finance leases is principally calculated and depreciated with no residual value by the declining-
balance method over the lease term.
5. Calculation of notional interest expense of finance leases
The notional interest expense of such finance leases is principally regarded as the difference between total minimum lease
payments and acquisition cost, and is allocated to each period using the interest method.
Future minimum lease payments required under operating lease transactions entered into by MMC and its consolidated
subsidiaries at March 31, 2004 and 2003 were as follows:
In millions of yen In thousands of
U.S. dollars
2004 2003 2004
Future minimum lease payments on operating lease transactions:
Due within 1 year ¥11,260 ¥ 5,508 $106,542
Due after 1 year 36,964 11,991 349,743
Total ¥48,224 ¥17,500 $456,286
As lessor
Future minimum lease revenues from operating lease transactions entered into by MMC and its consolidated subsidiaries as
lessor at March 31, 2004 and 2003 were as follows:
In millions of yen In thousands of
U.S. dollars
2004 2003 2004
Future minimum lease revenues from operating lease transactions:
Due within 1 year ¥27,063 ¥42,194 $256,061
Due after 1 year 35,714 47,841 337,921
Total ¥62,778 ¥90,036 $593,982
18. DERIVATIVE FINANCIAL INSTRUMENTS
(a) Nature of and policy for derivative transactions
MMC and consolidated subsidiaries utilize derivative financial instruments, including forward foreign exchange contracts, cur-
rency options, currency swaps, interest rate swaps and cross currency swaps to manage their exposure to fluctuations in foreign
currencies and interest rates. MMC and consolidated subsidiaries do not utilize derivatives for speculation or trading purposes.