13. RESEARCH AND DEVELOPMENT COSTS 14. LEASES Income from equipment leases held by a subsidiary for the years ended March 31, 2003 and 2002, was ¥139 million ($1,158 thou- sand) and ¥152 million, respectively. The Company and a subsidiary lease certain machinery, computer equipment, office space and other assets. Total rental expenses under the above leases were ¥157 million ($1,308 thousand) and ¥86 million for the years ended March 31, 2003 and 2002, respec- tively. Pro forma information for leased property under finance leases that do not transfer ownership of the leased property to the lessee on an "as if capitalized" basis for the years ended March 31, 2003 and 2002, was as follows: Due within one year...................................................................................... ¥ 88 ¥ 129 Due after one year ........................................................................................ 64 236 Total ............................................................................................................. ¥ 152 ¥ 365 Millions of Yen Unearned Lease Income (As Lessor) Obligations under Finance Lease (As Lessee) Year Ended March 31, 2002 Acquisition cost ...................... ¥ 571 ¥ 208 ¥ 64 ¥ 843 ¥ 27 ¥ 444 ¥ 50 ¥ 521 Accumulated depreciation....... 481 176 57 714 5 123 28 156 Net leased property................. ¥ 90 ¥ 32 ¥ 7 ¥ 129 ¥ 22 ¥ 321 ¥ 22 ¥ 365 Millions of Yen As Lessor As Lessee Tools, Furniture and Fixtures Machinery and Equipment Other Total Tools, Furniture and Fixtures Machinery and Equipment Other Total Due within one year...................................................................................... ¥ 14 ¥ 158 $ 117 $ 1,317 Due after one year ........................................................................................ 4 237 33 1,975 Total ............................................................................................................. ¥ 18 ¥ 395 $ 150 $ 3,292 Millions of Yen Thousands of U.S. Dollars Unearned Lease Income (As Lessor) Obligations under Finance Lease (As Lessee) Unearned Lease Income (As Lessor) Obligations under Finance Lease (As Lessee) Acquisition cost ...................... ¥ 13 ¥ 613 ¥ 51 ¥ 677 $ 108 $ 5,108 $ 426 $ 5,642 Accumulated depreciation....... 7 250 25 282 58 2,083 209 2,350 Net leased property................. ¥ 6 ¥ 363 ¥ 26 ¥ 395 $ 50 $ 3,025 $ 217 $ 3,292 As Lessee Millions of Yen Thousands of U.S. Dollars Tools, Furniture and Fixtures Machinery and Equipment Other Total Tools, Furniture and Fixtures Machinery and Equipment Other Total Year Ended March 31, 2003 Acquisition cost ...................... ¥ 382 ¥ 124 ¥ 26 ¥ 532 $ 3,183 $ 1,033 $ 217 $ 4,433 Accumulated depreciation....... 374 117 26 517 3,116 975 217 4,308 Net leased property................. ¥ 8 ¥ 7 ¥ 15 $ 67 $ 58 $ 125 As Lessor Millions of Yen Thousands of U.S. Dollars Tools, Furniture and Fixtures Machinery and Equipment Other Total Tools, Furniture and Fixtures Machinery and Equipment Other Total Research and development costs charged to income were ¥474 million ($3,950 thousand) and ¥388 million for the years ended March 31, 2003 and 2002, respectively. 40