Mitsubishi 2009 Annual Report Download - page 52

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As lessor
Future minimum lease revenues from non-cancellable operating lease transactions entered into by MMC and its consolidated subsid-
iaries as lessor at March 31, 2009 and 2008 were as follows:
In millions of yen
In thousands of
U.S. dollars
2009 2008 2009
Due within 1 year ¥ 6,559 ¥ 7,513 $ 66,779
Due after 1 year 10,977 12,295 111,753
Total ¥17,537 ¥19,809 $178,532
15. Derivative Financial Instruments
(a) Nature of and policy for derivative transactions
MMC and its consolidated subsidiaries utilize derivative financial instruments, including forward foreign exchange contracts, cross
currency swaps and interest rate swaps to manage their exposure to fluctuations in foreign currencies and interest rates. MMC and its
consolidated subsidiaries do not utilize derivatives for speculation or trading purposes.
(b) Risk
MMC and its consolidated subsidiaries are exposed to the risk of credit loss in the event of nonperformance by the counterparties to
the derivatives, but any such loss would not be expected to be material because MMC and its consolidated subsidiaries enter into
derivative transactions only with financial institutions with high credit ratings. The notional amounts of the derivative financial instru-
ments do not necessarily represent the amounts exchanged by the parties and, therefore, are not a direct measure of MMC’s risk expo-
sure in connection with derivatives.
All the transactions related to derivative financial instruments are for the purpose of hedging. MMC and its consolidated subsidiar-
ies do not enter into derivative contracts for which significant volatility would have any significant influence on its operations.
(c) Control
MMC does not enter into derivative contracts for trading purposes or on the anticipation of gains from short-term market movements.
Derivative transactions are appropriately pre-approved by managing directors in charge of finance group head quarters. MMC
approves derivative transactions of consolidated subsidiaries as appropriate, and in accordance with policies established for each
subsidiary, which require the appropriate approval of managing directors in charge of finance group head quarters.
50 MITSUBISHI MOTORS CORPORATION Annual Report 2009