The FASB requires lessees and lessors to disclose certain information about leases in their financial statements or in the notes. These requirements vary based upon the type of lease (capital or operating) and whether the issuer is the lessor or lessee. These disclosure requirements provide investors with the following
information:
• General description of the nature of leasing arrangements.
• The nature, timing, and amount of cash inflows and outflows associated with leases, including payments to be paid or received for each of the five succeeding years.
• The amount of lease revenues and expenses reported in the income statement each period.
• Description and amounts of leased assets by major balance sheet classification and related liabilities.
• Amounts receivable and unearned revenues under lease agreements.
information:
• General description of the nature of leasing arrangements.
• The nature, timing, and amount of cash inflows and outflows associated with leases, including payments to be paid or received for each of the five succeeding years.
• The amount of lease revenues and expenses reported in the income statement each period.
• Description and amounts of leased assets by major balance sheet classification and related liabilities.
• Amounts receivable and unearned revenues under lease agreements.
Murali Company
(dollar amounts in thousands)
Current Liabilities 2007 2006
Current obligations under capital leases $ 431 $327
Noncurrent Liabilities
Long-term obligations under capital leases,
less current portion $1,003 $208
(dollar amounts in thousands)
Current Liabilities 2007 2006
Current obligations under capital leases $ 431 $327
Noncurrent Liabilities
Long-term obligations under capital leases,
less current portion $1,003 $208
Note 8: Commitments and Contingencies
The Company leases certain facilities, machinery, automotive and computer equipment under noncancelable lease agreements. The Company expects that in the normal course of business, leases that expire will be renewed or replaced by other leases. Property, plant and equipment relating to capital leases were $1,618 at December 29, 2007, and $2,234 at December 30, 2006, with accumulated amortization of $116 and $1,881, respectively. Depreciation and amortization of assets recorded under capital leases was $468 in 2007 and $719 in 2006.
The Company leases certain facilities, machinery, automotive and computer equipment under noncancelable lease agreements. The Company expects that in the normal course of business, leases that expire will be renewed or replaced by other leases. Property, plant and equipment relating to capital leases were $1,618 at December 29, 2007, and $2,234 at December 30, 2006, with accumulated amortization of $116 and $1,881, respectively. Depreciation and amortization of assets recorded under capital leases was $468 in 2007 and $719 in 2006.
The following is a schedule of future minimum lease payments as of December 29, 2007:
Noncancelable
Capital Leases Operating Leases
2008 $ 565 $1,119
2009 503 947
2010 395 645
2011 193 467
2012 — 180
Later years — 396
Total minimum lease payments $1,656 $3,754
Less interest portion of payments 221
Present value of future minimum lease payments $1,435
Noncancelable
Capital Leases Operating Leases
2008 $ 565 $1,119
2009 503 947
2010 395 645
2011 193 467
2012 — 180
Later years — 396
Total minimum lease payments $1,656 $3,754
Less interest portion of payments 221
Present value of future minimum lease payments $1,435
Rental expense was approximately $2,634 in 2007 and $2,732 in 2006.