Oki 2000 Annual Report Download - page 20

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12. Supplementary cash flow information
The following table represents a reconciliation between cash
and cash equivalents at March 31, 1999 in accordance with the
definition of cash equivalents before and after the adoption of
the new accounting standard:
Millions of yen
Cash and cash equivalents at March 31, 1999
in accordance with the definition of after the
adoption of the new accounting standard .............. ¥091,423
Money Management Fund ........................................ 11,207
Other .......................................................................... 5,870
Cash and cash equivalents at March 31, 1999
in accordance with the definition of before the
adoption of the new accounting standard .............. ¥108,501
13. Derivative and hedging activities
The Company and its subsidiaries primarily utilize comprehen-
sive forward foreign exchange and currency swap contracts to
hedge their exposure to foreign exchange fluctuations arising
from operating receivables and payable. The Company and its
subsidiaries also utilize interest swap contracts to avoid risks of
interest rate fluctuations and to equalize financial costs for each
financial year regarding short-term and long-term debt with vari-
able interest rates. As a matter of policy, the Company and its
subsidiaries do not speculate in derivative transactions, which
may have any huge fluctuations of their market values. The
Company and its subsidiaries do not anticipate credit risk result-
ing from nonperformance by any of the counterparties because
all such counterparties are financial institutions with high credit
ratings. The Company and its subsidiaries have principally their
internal rules for the derivative transactions, which prescribe man-
agers’ duties, management of transactions and reporting sys-
tem. The derivative transactions on a daily basis are controlled
by the financial section, which has the internal control system to
supervise the procedures and transaction limits, and are con-
firmed to financial institutions by the accounting section.
Information with respect to the contract amount, fair value of
and unrealized gain or loss on derivatives:
March 31, 2000 Millions of yen
Contract amount
Non-current Fair Unrealized
Total portion value gain (loss)
Currency related:
Forward exchange contracts:
Sold:
U.S. dollars ¥08,024 ¥ — ¥(8,097 0,0¥(73)
Deutsche marks 1,691 — 1,578 113
Pounds sterling 21 — 20 —
Interest related:
Interest rate swap:
Receipts fixed/
Payments floating 2,000 2,000 117 117
Payments fixed/
Receipts floating 69,591 47,591 (1,644) (1,644)
Thousands of U.S. dollars
Contract amount
Non-current Fair Unrealized
Total portion value gain (loss)
Currency related:
Forward exchange contracts:
Sold:
U.S. dollars $75,700 $ — $76,394 $(693)
Deutsche marks 15,962 — 14,890 1,071
Pounds sterling 200 — 196 4
Interest related:
Interest rate swap:
Receipts fixed/
Payments floating 18,867 18,867 1,111 1,111
Payments fixed/
Receipts floating 656,518 448,971 15,513 15,513
Notes: 1.Forward exchange contracts are valued at the quotations in the forward foreign
exchange market.
2. Excluded from the above table are forward foreign exchange contracts which hedge
foreign-currency-denominated receivables and payables carried at forward exchange
rates whose final settlement amounts are fixed.
3. Interest rate swap contracts are valued at the price quoted by the counterparty financial
institutions. The interest rate swap transaction with receipts fixed/payments floating for
the notional amount of ¥2,000 million ($18,867 thousand) is offset against the
corresponding amount with payments fixed/receipts floating.
14. Leases
Lease payments relating to finance leases accounted for as
operating leases in the accompanying consolidated financial
statements amounted to ¥6,124 million ($57,778 thousand),
¥7,998 million and ¥9,800 million for the years ended March 31,
2000, 1999 and 1998, respectively.
Leased assets under finance leases accounted for as operating
leases were as follows:
Thousands of
Year ending March 31 Millions of yen U.S. dollars
2000 2000
Machinery and equipment...................... ¥21,533 $203,143
Other ....................................................... 6 61
Less: Accumulated amortization............ (9,897) (93,369)
............................................................. ¥11,642 $109,834
Amortization is computed by applying the straight-line
method over the estimated useful lives of the related assets
and assuming that the Company guarantees a nil residual value
at the end of the term of each of the leases.
The following is a schedule of the future minimum lease pay-
ments under finance leases accounted for as operating leases:
Thousands of
Year ending March 31 Millions of yen U.S. dollars
2001 ........................................................ ¥04,670 $044,057
2002 and thereafter ................................ 6,972 65,776
................................................................ ¥11,642 $109,834
The minimum rental payments subsequent to March 31, 2000
required under operating leases with noncancelable lease terms
in excess of one year are summarized as follows:
Thousands of
Year ending March 31 Millions of yen U.S. dollars
2001 ........................................................ ¥048 $458
2002 and thereafter ................................ 55 527
............................................................. ¥104 $986