MARUI CO., LTD.

9. LEASES
(a) Pro forma information relating to acquisition cost, accumulated depreciation and book values for property held under finance leases
which do not transfer ownership of the leased property to the lessee on an “as if capitalized” basis for the period ended September 30,
2003, and the year ended January 31, 2003, was as follows:
Thousands of
Millions of yen
U.S. dollars
2003/9 2003/1 2003/9
Store fixtures and equipment
Acquisition cost................................................................................................................................... ¥ 4,528 ¥ 4,573 $ 40,793
Accumulated depreciation................................................................................................................... (2,257) (1,970) (20,333)
Book value ........................................................................................................................................... ¥ 2,271 ¥ 2,603 $ 20,460
(b) Future minimum lease payments under finance leases as of September 30 and January 31, 2003, were as follows:
Millions of yen
Thousands of
U.S. dollars
2003/9 2003/1 2003/9
Due within one year ............................................................................................................................ ¥ 903 ¥ 950 $ 8,135
Due after one year ............................................................................................................................... 1,368 1,653 12,324
Total................................................................................................................................................. ¥2,271 ¥2,603 $20,459
The pro forma information above does not exclude the imputed interest portion from the acquisition cost because the remaining
finance lease obligations are not material compared with the book value of property and equipment.
(c) Total payments for finance lease transactions without ownership transfer to lessees for the period ended September 30, 2003, and the
year ended January 31, 2003, were as follows:
Thousands of
Millions of yen
U.S. dollars
2003/9 2003/1 2003/9
Lease payments.................................................................................................................................... ¥682 ¥1,025 $6,144
Depreciation expense .......................................................................................................................... 682 1,025 6,144
(d) The minimum rental commitments under noncancellable operating leases as of September 30 and January 31, 2003,
were as follows:
Thousands of
Millions of yen
U.S. dollars
2003/9 2003/1 2003/9
(As lessee)
Due within one year ........................................................................................................................ ¥ 3,991 ¥ 4,110 $ 35,955
Due after one year ........................................................................................................................... 21,110 26,855 190,180
Total ............................................................................................................................................. ¥25,101 ¥30,965 $226,135
(As lessor)
Due within one year ........................................................................................................................ ¥316 ¥316 $2,847
Due after one year ........................................................................................................................... 379 590 3,414
Total ............................................................................................................................................. ¥695 ¥906 $6,261
10. SEVERANCE AND RETIREMENT BENEFITS FOR EMPLOYEES
The Company and its consolidated subsidiaries had adopted a Also, the Company’s consolidated subsidiaries demolished the
non-contributory defined pension plan supported by the privately held pension plan and the lump-sum severance and
government, a privately held pension plan and a lump-sum retirement payment plan, and many of the Company’s employees
severance and retirement plan as defined benefit plans for transferred to the subsidiaries in accordance with the transition
employees.
toward the new personnel system as a part of management
In connection with enforcement of the Defined Benefit reforms on September 30, 2003.
Enterprise Pension Law, the Company and some of its As a result, the Company’s privately held pension plan and
consolidated subsidiaries received approval from the Minister of lump-sum severance and retirement payment plan only exist on
Health, Labor and Welfare for winding up the non-contributory September 30, 2003.
defined benefit pension plan supported by the government and The liabilities for severance and retirement benefits included in
exemption from payment of future benefits on March 18 and the liability section of the consolidated balance sheets as of
September 26, 2003.
September 30 and January 31, 2003, consist of the following:
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