ANNUAL REPORT

31. OPERATING LEASES
Non-cancellable operating lease rentals are payable as follows:
(In JPY millions) 2009 2008
Less than one year 1,519 1,390
Between one and five years 2,125 2,071
More than five years 146 106
Total 3,790 3,567
The operating leases are mainly long-term rental contracts of
cars, machinery and equipment. Under the terms of the lease
agreements, no contingent rents are payable. At March 31, 2009
and 2008, Metaldyne had an outstanding payable of JPY 2,663
and JPY nil million, respectively, related to a sale-and-leaseback
transaction in addition to the operating lease payments.
Future minimum lease payments for property leased out under
operating leases, is as follows:
(In JPY millions) 2009 2008
Less than one year 4,863 4,235
Between one and five years 9,681 12,154
More than five years 5,551 6,028
Total 20,095 22,417
32. CAPITAL COMMITMENTS
As at March 31, 2009 and 2008, Asahi Tec and HIT had aggregate
commitments to purchase capital equipment amounting to
respectively JPY 9,858 and JPY 2,502 million.
33. CONTINGENCIES
At March 31, 2009, the Company is subject to claims and
litigation in the ordinary course of its business but does not
believe that any such claim or litigation will have a material
impact on the financial results of the Company.
34. RELATED PARTIES
34.1. Identity of related parties
The Company has related party relationships with its
consolidated businesses and business accounted for under the
equity method (see note 35), with its Directors and Senior
Management, and with Ripplewood Holdings LLC and affiliates.
34.2. Transactions with directors
and senior management
Total remuneration of executive management is included in
“Personnel expenses” (see note 11). During the fiscal year
ended March 31, 2009, and pursuant to his agreement with RHJI,
the Chief Executive Officer, Mr. Fischer, received aggregate fixed
compensation of JPY 14 million, variable compensation related
to his performance for the fiscal year ended March 31, 2008, of
JPY 216 million, and other remuneration, including private
aircraft usage pursuant to his employment agreement, of JPY
109 million. Subsequent to the fiscal year-end, the Board of
Directors awarded Mr. Fischer a bonus of JPY 219 million
related to his performance for the fiscal year ended March 31,
2009. Awards made to Mr. Fischer under RHJI's equity-based
compensation plan are described in note 27.
The compensation of the members of RHJI's executive management,
other than Mr. Fischer can be broken down as follows:
(In JPY millions) 2009 2008
Aggregate fixed compensation 231 327
Aggregate variable compensation 206 498
Aggregate other remuneration in the form of
pensions, insurance coverage and other
fringe benefits, including allowances
The members of RHJI’s executive management other than
Mr. Fischer were awarded 177,880 restricted stock units under the
equity-based compensation plan adopted by the Board of Directors,
on October 1, 2007. Terms and conditions of the restricted stock
unit plan are described in note 27. Total share-based compensation
expense associated with the awards to the members of executive
management, other than Mr. Fischer, amounted to JPY 103 and 84
million for respectively the fiscal years ended March 31, 2009 and
2008. On April 1, 2009, as part of the bonus award for the fiscal
year ended March 31, 2009, the members of RHJI's executive
management were awarded a further 563,380 restricted stock units
under the same equity-based compensation plan.
Non-executive directors received benefits of JPY 192 million and
JPY 190 million for the fiscal year ended March 31, 2009 and
2008, respectively.
34.3. Other related party
transactions
23 29
Total 460 854
As at March 31, 2009 and 2008, net payables of JPY 14 million
and JPY 104 million, respectively, to Ripplewood Holdings LLC
("Ripplewood") were outstanding as a result of operating costs
and out of pocket expenses. A total expense of JPY 105 million
was recognized from Ripplewood during the fiscal year ended
March 31, 2009, compared to JPY 239 million during the fiscal
year ended March 31, 2008. The transactions with Ripplewood
are at arm's length.
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