Olympus 2011 Annual Report Download - page 60

58 OLYMPUS 2011
(As of March 31, 2010)
Millions of yen
Notional amount Book value Fair value
Foreign exchange forward contracts,
accounted for by deferral hedge accounting
To buy U.S. dollars ................................................................................................... ¥1,499 ¥ — ¥ (10)
To buy other currencies ........................................................................................... 5,084 —57
To sell U.S. dollars ................................................................................................... 27,860 —(521)
To sell other currencies ........................................................................................... 19,383 —400
Foreign exchange forward contracts,
accounted for by special hedge accounting
To buy U.S. dollars ................................................................................................... 40,719 — *
To buy other currencies ........................................................................................... 1 — *
To sell U.S. dollars ................................................................................................... 8,871 — *
To sell other currencies ........................................................................................... 2,127 — *
Interest rate swap contracts, accounted for
by deferral hedge accounting
Receive floating/ pay fixed ....................................................................................... 40,735 —(484)
Interest rate swap contracts, accounted
for by special hedge accounting short-cut
method
Receive floating/ pay fixed ....................................................................................... 363,056 —**
The fair value of currency option contracts, currency swap contracts and interest rate swap contracts are 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.
*Foreign exchange forward contracts are accounted for as part of accounts receivable and accounts payable. Therefore, the fair value of the contracts are included in the
fair value of underlying accounts receivable and accounts payable.
**Interest rate swap contracts are accounted for as part of long-term debt. Therefore, the fair value of the contracts are included in the fair value of underlying long-term
debt.
26. SEGMENTAL INFORMATION
(1) Change of Accounting Standard
Effective from the fiscal year ended March 31, 2011, the Company adopted the “Accounting Standard for Disclosures about Segments of an
Enterprise and Related Information” (ASBJ Statement No. 17, March 27, 2009) and the “Guidance on the Accounting Standard for Disclosures
about Segments of an Enterprise and Related Information” (ASBJ Guidance No. 20, March 21, 2008).
(2) Overview of reportable segments
The reportable segments of the Olympus Group are components of the Company whose separate financial information is available. These
segments are periodically evaluated by the Board of Directors in deciding how to allocate management resources and in assessing the
performance.
The Olympus Group has established business divisions at the Company, Olympus Medical Systems Corporation, Olympus Imaging
Corporation, and ITX Corporation. Each business division formulates comprehensive strategies for Japan and abroad with respect to
products and services handled and deploys business activities.
Accordingly, being composed of segments, based on these business divisions, that are categorized according to products and services,
the Olympus Group has the following five reportable segments:
Medical Systems Business, Life Science and Industrial Systems Business, Imaging Systems Business, Information & Communication
Business, and Others.
The “Medical Systems Business” manufactures and sells medical endoscopes, surgical endoscopes, endo-therapy devices and other
products. The “Life Science and Industrial Systems Business” manufactures and sells biological microscopes, industrial microscopes,
industrial endoscopes, non-destructive testing equipment, printers, and other products. The “Imaging Systems Business” manufactures
and sells digital cameras, voice recorders and other products. The “Information & Communication Business” sells mobile terminals
including mobile handsets. The “Others” business manufactures and sells biomedical materials, conducts system development and other
business activities.
(3) Method of calculating amounts of net sales, income/loss, assets, and other items
The accounting policies of the segments are substantially the same as those described in the significant accounting policies in Note 1. Profits
of reportable segments correspond to operating income. The internal sales or transfer among segments are based on actual market prices.
(4) Information concerning net sales and income/loss, assets and other items by reportable segment