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50 OLYMPUS 2007
The counter-parties to the derivative financial instruments of the Company and its consolidated subsidiaries are substantial and credit-
worthy multi-national commercial banks or other financial institutions that are recognized market makers. Neither the risks of counter-party
non-performance nor the economic consequences of counter-party non-performance associated with these contracts are considered by the
Company to be material.
Part of its consolidated subsidiaries also use stock-price swap contracts for speculation purposes within a limited amount. Stock-price swap
contracts are exposed to stock-price fluctuation risk.
The following table summarizes the underlying notional transaction amounts, book values and fair values for outstanding derivative finan-
cial instruments by risk category and instrument type as of March 31, 2007 and 2006:
(as of March 31, 2007) Millions of yen Thousands of U.S. dollars
Notional amount Book value Fair value Notional amount Book value Fair value
Foreign exchange forward contracts
To buy U.S. dollars .................................... ¥ 206 ¥ — ¥ 206 $ 1,717 $ — $ 1,717
To buy other currencies............................... 1,835 — 1,823 15,292 — 15,192
To sell U.S. dollars ..................................... 5,456 — 5,369 45,467 — 44,742
To sell British Pounds .................................. 4,235 — 4,175 35,292 — 34,792
To sell other currencies ............................... 4,507 — 4,460 37,558 — 37,167
Foreign exchange option contracts
Put option ................................................. 3,970 72 98 33,083 600 817
Interest rate swap contracts............................. 250 — (23) 2,083 — (192)
(as of March 31, 2006) Millions of yen
Notional amount Book value Fair value
Foreign exchange forward contracts
To buy U.S. dollars ................................................................................................ ¥ 98 ¥ — ¥ 106
To buy other currencies ........................................................................................... 646 — 647
To sell U.S. dollars ................................................................................................. 4,142 — 4,108
To sell British Pounds .............................................................................................. 8,225 — 8,147
To sell other currencies ............................................................................................ 7,652 — 7,498
Foreign exchange option contracts
Put option ............................................................................................................ 3,978 86 120
Stock-price swap contracts .......................................................................................... 2,810 — (1,466)
Foreign exchange forward contracts, interest rate swap contracts, currency swap contracts and foreign exchange option contracts for which
the hedge accounting are applied, are exclude from the above amounts.
The fair value of currency option agreements is estimated by obtaining quotes from financial institutions. The fair value of foreign
exchange forward contracts is estimated based on market prices for contracts with similar terms. The fair value of interest rate swap contracts
and stock-price swap contracts are estimated by obtaining quotes from financial institutions.
22. SEGMENTAL INFORMATION
(a) INFORMATION BY BUSINESS SEGMENT
Segment information for the years ended March 31, 2007, 2006 and 2005 are shown in the tables below:
Millions of yen
2007
Imaging Medical Information and
Systems Systems Life Science Communication Elimination and Consolidated
Business Business Business Business Others Total Corporate Total
Net sales:
Unaffiliated customers ............. ¥294,303 ¥311,709 ¥123,706 ¥267,691 ¥64,377 ¥1,061,786 ¥ — ¥1,061,786
Intersegment .......................... 455 76 37 — 596 1,164 (1,164) —
Total ........................................ 294,758 311,785 123,743 267,691 64,973 1,062,950 (1,164) 1,061,786
Operating expenses ................... 267,550 223,932 115,664 264,975 64,101 936,222 26,835 963,057
Operating income ...................... 27,208 87,853 8,079 2,716 872 126,728 (27,999) 98,729
Assets ...................................... 157,693 227,884 94,632 131,069 90,004 701,282 390,518 1,091,800
Depreciation and amortization ..... 9,376 6,920 4,828 2,669 2,979 26,772 3,632 30,404
Capital expenditures .................. ¥ 7,766 ¥ 15,968 ¥ 8,020 ¥ 3,134 ¥ 4,148 ¥ 39,036 ¥ 5,660 ¥ 44,696