Nikon 2003 Annual Report Download - page 36

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34
The minimum rental commitments under noncancelable operating leases at March 31, 2003 and 2002 were as follows:
Due within one year
Due after one year
Tota l
Thousands of
U.S. Dollars
2003
$10,237
22,261
$32,498
2002
¥1,231
2,448
¥3,679
2003
¥1,230
2,676
¥3,906
Millions of Yen
Pro forma information of leased property carried by finance leases that do not transfer ownership of the leased property to the lessee on
an “as if capitalized” basis as of and for the fiscal years ended March 31, 2003 and 2002 was as follows:
Acquisition cost
Accumulated depreciation
Net leased property
Total
$118,258
61,982
$56,276
Furniture
and
Fixtures
$58,524
32,645
$25,879
Machinery
and
Equipment
$59,734
29,337
$30,397
Thousands of U.S. Dollars
2003
Total
¥14,215
7,450
¥6,765
Furniture
and
Fixtures
¥7,035
3,924
¥3,111
Machinery
and
Equipment
¥7,180
3,526
¥3,654
Millions of Yen
2003
Acquisition cost
Accumulated depreciation
Net leased property
Total
¥17,126
9,935
¥7,191
Furniture
and
Fixtures
¥8,834
5,238
¥3,596
Machinery
and
Equipment
¥8,292
4,697
¥3,595
Millions of Yen
2002
Obligations under finance leases at March 31, 2003 and 2002 were as follows:
Due within one year
Due after one year
Tota l
Thousands of
U.S. Dollars
2003
$19,959
36,317
$56,276
2002
¥2,711
4,480
¥7,191
2003
¥2,399
4,366
¥6,765
Millions of Yen
The amount of obligations under finance leases includes the imputed interest expense portion.
Depreciation expense, which is not reflected in the accompanying consolidated statements of operations, computed by the straight-line
method, was ¥2,929 million ($24,364 thousand) and ¥3,533 million for the fiscal years ended March 31, 2003 and 2002, respectively.
12.DERIVATIVES
The Group enters into derivative contracts, including foreign exchange forward contracts, currency option contracts, foreign currency swap
contracts and interest rate swap contracts to hedge foreign exchange risk and interest rate exposures. The Group does not hold or issue deriv-
atives for trading purposes. Derivatives are subject to market risk and credit risk. Market risk is the exposure created by potential fluctuations in
market conditions, including in changes in interest or foreign exchange rates. Credit risk is the possibility that a loss may result from a counter-
party’s failure to perform according to the terms and conditions of the contract.
Because the counterparties to those derivative contracts are limited to major international financial institutions, the Group does not antici-
pate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate the authorization
and credit limit amount.