Olympus 2009 Annual Report Download - page 57

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As of March 31, 2009 Millions of yen
Thousands of
U.S. dollars
Investment and Other Assets (Equivalent amount) 2009 2008 2009
2010 ............................................................................................................................. ¥ — ¥ — $ —
2011 ............................................................................................................................. 8,756 — 92,168
2012 ............................................................................................................................. 5,402 — 56,863
2013 ............................................................................................................................. 1,791 — 18,853
2014 ............................................................................................................................. 610 — 6,421
Thereafter .................................................................................................................... 139 — 1,463
Future minimum lease payments under the non-cancelable operating leases having remaining terms in excess of one year as of March
31, 2009 were as follows:
Millions of yen
Thousands of
U.S. dollars
2010 ........................................................................................................................................................ ¥ 932 $ 9,811
2011 and thereafter ................................................................................................................................. 565 5,947
Total minimum lease payments ............................................................................................................... ¥ 1,497 $ 15,758
23. DERIVATIVE FINANCIAL INSTRUMENTS
The Company and its consolidated subsidiaries use derivative financial instruments in the normal course of their business to manage
the exposure to fluctuations in foreign exchange rates and interest rates. The primary classes of derivatives used by the Company and its
consolidated subsidiaries are foreign exchange forward contracts, currency options, currency swaps and interest rate swaps. Almost all
derivative transactions are used to hedge interest rates and foreign currency positions in connection with their business. Accordingly, mar-
ket risk in these derivatives is largely offset by opposite movements in the underlying positions. Management assesses derivative transac-
tions and market risks surrounding these transactions according to the Company’s policy regarding derivative transactions. Contracts of
derivative financial instruments are executed by finance departments of the Company or subsidiaries.
The counterparties 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 counterparty non-performance associated with these contracts are considered
by the Company to be material.
Some 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
financial instruments by risk category and instrument type as of March 31, 2009 and 2008:
As of March 31, 2009 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 ................................... ¥ — ¥ — ¥ — $ — $ — $ —
To buy other currencies ........................... 3,128 — 3,196 32,926 — 33,642
To sell U.S. dollars ................................... 1,844 — 1,912 19,411 — 20,126
To sell British pounds .............................. 1,660 — 1,533 17,474 — 16,137
To sell other currencies ........................... 5,679 — 5,429 59,779 — 57,147
Foreign exchange option contracts
Put option ................................................ 5,531 189 535 58,221 1,989 5,632
Interest rate swap contracts ....................... — — — — — —
As of March 31, 2008 Millions of yen
Notional amount Book value Fair value
Foreign exchange forward contracts
To buy U.S. dollars .................................................................................................... ¥ 271 ¥ — ¥ 273
To buy other currencies ............................................................................................ 2,265 — 2,316
To sell U.S. dollars .................................................................................................... 27,503 — 27,503
To sell British pounds ............................................................................................... 3,524 — 3,205
To sell other currencies ............................................................................................ 1,461 — 1,452
Foreign exchange option contracts
Put option ................................................................................................................ 6,274 131 475
Interest rate swap contracts ........................................................................................ 250 — (12)