content_image/145947.jpg content_image/145948.jpg content_image/145949.jpg content_image/145950.jpg content_image/145951.jpg
## b. Operating leases 

The minimum rental commitments under noncancelable operating leases at March 31, 2010 and 2009 were as follows: 

<img src='content_image/145947.jpg'>

## (2) Lessor 

## a. Finance leases 

Lease rental income on finance lease contracts without ownership- transfer for the years ended March 31, 2010 and 2009 was ¥3 million ($34 thousand) and ¥16 million, respectively. 

Acquisition cost, accumulated depreciation and net book value as of March 31, 2010 and 2009 were as follows: 

<img src='content_image/145948.jpg'>

Because total amounts of future lease receipts at the end of the period and estimated salvage value are small compared to the total amounts of operating receivables at the end of the period, interest income is included in the lease income receipts. 

The amounts of future lease receipts as of March 31, 2009 were summarized as follows: 

<img src='content_image/145949.jpg'>

## b. Operating leases 

The amounts of future lease receipts under operating leases as lessor as of March 31, 2010 and 2009 are summarized as follows: 

<img src='content_image/145950.jpg'>

## 16. Supplemental Cash Flow Information 

## Purchases of Newly Consolidated Subsidiaries 

For the year ended March 31, 2010, A-S CHINA PLUMBING PRODUCTS Ltd. and 14 other companies were acquired. Assets and liabilities of these companies at the date of acquisition, cash paid for the capital and payments for the purchases of newly con- solidated subsidiaries were as follows: 

<img src='content_image/145951.jpg'>

## 17. Financial Instruments and Related Disclosures 

On March 10, 2008, the ASBJ revised ASBJ Statement No. 10, “Accounting Standard for Financial Instruments,” and issued ASBJ Guidance No. 19, “Guidance on Accounting Standard for Financial Instruments and Related Disclosures.” This accounting standard and the guidance are applicable to financial instruments and related disclosures at the end of the fiscal years ending on or after March 31, 2010 with early adoption permitted from the beginning of the fiscal years ending before March 31, 2010. The Group applied the revised accounting standard and the new guidance effective March 31, 2010. 

## (1) Group Policy for Financial Instruments 

The Group uses financial instruments, mainly bank loans and straight bonds, based on its fundamental management strategies of “achieving growth strategies,” “strengthening cost competitive- ness” and “executing strategic investments.” Cash surpluses, if any, are invested in low risk financial assets. Derivatives are used, not for speculative purposes, but to manage exposure to financial risks as described in (2) below. 

## (2) Nature and Extent of Risks Arising from Financial Instruments 

Receivables such as trade notes and trade accounts are exposed to customer credit risk. Marketable and investment securities are mainly equity instruments of companies that have a business rela- tionship with the Group and debt securities managing cash sur- pluses. Those traded on the stock market are exposed to the risk of market price fluctuations, where those that are not, mainly equity instruments of the companies that have a business relationship with the Group, are exposed to the risk of reduction in real values. Loans are mainly for the associated companies of the Group. 

