15. Leases (1) Lessee Depreciation expense and interest expense, which are not  reflected in the accompanying consolidated statements of opera- tions, are computed by the straight-line method and the interest  method, respectively. Allowances for impairment loss on leased property of ¥53 million  ($566 thousand) as of March 31, 2010 and ¥1 million as of March  31, 2009 are included in the obligations under finance leases. The  imputed interest expense portion which is computed using the  interest method is excluded from the above obligations under  finance leases. Depreciation expense, interest expense and other information  under finance leases: Obligations under finance leases: As discussed in Note 2.o, the Company accounts for leases which existed at the transition date and do not transfer ownership of the  leased property to the lessee as operating lease transactions. Pro forma information of such leases existing at the transition date for the  years ended March 31, 2010 and 2009 such as acquisition cost, accumulated depreciation, accumulated impairment loss, obligations  under finance leases, depreciation expense, interest expense and other information of finance leases that do not transfer ownership of the  leased property to the lessee on an “as if capitalized” basis was as follows: For the year ended March 31, 2009, the Group recorded an impairment loss of ¥1 million on certain leased property held under finance  leases that do not transfer ownership and an allowance for an impairment loss on leased property, which is included in long-term  liabilities—other. For the year ended March 31, 2010, the Group recorded an impairment loss of ¥76 million ($820 thousand) on certain leased property  held under finance leases that do not transfer ownership and an allowance for an impairment loss on leased property, which is included in  long-term liabilities—other. Total rental expenses including lease payments under finance leases for the years ended March 31, 2010 and 2009 were ¥1,546 million  ($16,618 thousand) and ¥2,014 million, respectively. The Group mainly leases computer equipment and store fixtures of the distribution and retail business. a. Finance leases Millions of Yen 2010 2009 Furniture and Fixtures Other Total Furniture and Fixtures Other Total Acquisition cost ¥ 5,529 ¥ 378 ¥ 5,907 ¥ 7,894 ¥ 524 ¥ 8,418 Accumulated depreciation (4,145) (143) (4,288) (5,026) (201) (5,227) Accumulated impairment loss (77) (77) (5) (5) Net leased property ¥ 1,307 ¥ 235 ¥ 1,542 ¥ 2,863 ¥ 323 ¥ 3,186 Thousands of U.S. Dollars 2010 Furniture and Fixtures Other Total Acquisition cost $ 59,422 $ 4,065 $ 63,487 Accumulated depreciation (44,548) (1,533) (46,081) Accumulated impairment loss (827) (827) Net leased property $ 14,047 $ 2,532 $ 16,579 Millions of Yen Thousands of U.S. Dollars 2010 2009 2010 Due within one year ¥ 932 ¥1,557 $10,015 Due after one year 744 1,743 7,995 Total ¥1,676 ¥3,300 $18,010 Millions of Yen Thousands of U.S. Dollars 2010 2009 2010 Depreciation expense ¥1,437 ¥1,921 $15,443 Interest expense 55 91 593 Total ¥1,492 ¥2,012 $16,036 Reversal of allowance  for impairment loss on leased property ¥ 24 ¥ 5 $ 261 Impairment loss 76 1 820 JS Group Corporation Annual Report 2010 74