Olympus 2014 Annual Report Download - page 50

Operating Lease Transactions (Lessor):
Future minimum lease payments under the non-cancelable operating leases having remaining terms in excess of one year were as follows:
Millions of yen
As of March 31, 2013
Due within
one year
Due after
one year
Total minimum
lease payments
¥2,685 ¥3,029 ¥5,714
Millions of yen Thousands of U.S. dollars
As of March 31, 2014
Due within
one year
Due after
one year
Total minimum
lease payments
Due within
one year
Due after
one year
Total minimum
lease payments
¥3,145 ¥3,832 ¥6,977 $30,534 $37,204 $67,738
29. Other Comprehensive Income
The following table presents reclassifi cation adjustments and corresponding tax effects allocated to each component of other comprehen-
sive income for the years ended March 31, 2013 and 2014:
Millions of yen
Thousands of
U.S. dollars
2013 2014 2014
Net unrealized holding gains (losses) on available-for-sale securities, net of taxes:
Amount arising during the year ...................................................................................................... ¥ 4,636 ¥ 8,236 $ 79,961
Reclassifi cation adjustments for gains and losses included in net income ...................................... (368) (483) (4,689)
Amount before tax effect ............................................................................................................... 4,268 7,753 75,252
Tax effect ....................................................................................................................................... (1,103) (2,212) (21,476)
Net unrealized holding gains (losses) on available-for-sale securities, net of taxes ................................. ¥ 3,165 ¥ 5,541 $ 53,796
Net unrealized gains (losses) on hedging derivatives, net of taxes:
Amount arising during the year ...................................................................................................... ¥ (18) ¥ 7 $ 68
Reclassifi cation adjustments for gains and losses included in net income ...................................... 1,494 (28) (272)
Amount before tax effect ............................................................................................................... 1,476 (21) (204)
Tax effect ....................................................................................................................................... (188) ——
Net unrealized gains (losses) on hedging derivatives, net of taxes ......................................................... ¥ 1,288 ¥ (21) $ (204)
Foreign currency translation adjustments:
Amount arising during the year ...................................................................................................... ¥43,516 ¥42,103 $408,767
Reclassifi cation adjustments for gains and losses included in net income ...................................... 629 2,519 24,456
Foreign currency translation adjustments .............................................................................................. ¥44,145 ¥44,622 $433,223
Pension liabilities adjustments of foreign subsidiaries:
Amount arising during the year ...................................................................................................... ¥ (6,700) ¥ 1,348 $ 13,087
Reclassifi cation adjustments for gains and losses included in net income ...................................... 1,514 1,218 11,825
Amount before tax effect ............................................................................................................... (5,186) 2,566 24,913
Tax effect ....................................................................................................................................... 1,875 (1,416) (13,748)
Pension liabilities adjustment of foreign subsidiaries .............................................................................. ¥ (3,311) ¥ 1,150 $ 11,165
Share of other comprehensive income of companies accounted for by the equity method:
Amount arising during the year ...................................................................................................... ¥ 5 ¥ 77 $ 748
Share of other comprehensive income of companies accounted for by the equity method .................... ¥ 5 ¥ 77 $ 748
Total other comprehensive income ........................................................................................................ ¥45,292 ¥51,369 $498,728
30. Derivative Financial Instruments
The Company and its consolidated subsidiaries use derivative fi nancial instruments in the normal course of their business to manage the
exposure to fl uctuations in foreign exchange rates and interest rates. The primary classes of derivatives used by the Company and its con-
solidated subsidiaries are foreign exchange forward contracts, currency options, currency swaps and interest rate swaps. Almost all deriva-
tive transactions are used to hedge interest rates and foreign currency positions in connection with their business. Accordingly, market risk
inthese derivatives is largely offset by opposite movements in the underlying positions. Management assesses derivative transactions and
market risks surrounding these transactions according to the Company’s policy regarding derivative transactions. Contracts of derivative
fi nancial instruments are executed by fi nance departments of the Company or its subsidiaries.
The Company’s and its consolidated subsidiaries’ trade payables that are denominated in foreign currencies which meet specifi c
matching criteria and have been hedged by foreign exchange forward contracts are translated at the foreign exchange rate stipulated
inthecontracts (special hedge accounting for foreign exchange forward contracts).
Finance Lease Transactions (Lessor):
Leased investment assets recognized in the consolidated balance sheets as of March 31, 2013 and 2014 were as follows:
Millions of yen
Thousands of
U.S. dollars
2013 2014 2014
Lease receivables and leased investment assets:
Lease receivables ................................................................................................................................. ¥21,161 ¥23,786 $230,932
Estimated residual value ....................................................................................................................... 2,146 1,347 13,078
Interest income ..................................................................................................................................... (2,405) (2,614) (25,379)
Leased investment assets .................................................................................................................... ¥20,902 ¥22,519 $218,631
Millions of yen
Thousands of
U.S. dollars
2013 2014 2014
Other assets:
Lease receivables ................................................................................................................................. ¥26,256 ¥34,188 $331,922
Estimated residual value ....................................................................................................................... 2,074 5,140 49,903
Interest income ..................................................................................................................................... (3,831) (4,816) (46,757)
Leased investment assets .................................................................................................................... ¥24,499 ¥34,512 $335,068
The following table sets forth amounts of lease receivables and leased investment assets to be collected subsequent to March 31, 2013
and 2014:
Millions of yen
As of March 31, 2013
Due within
one year
Due after one
year through
two years
Due after two
years through
three years
Due after three
years through
four years
Due after four
years through
fi ve years
Due after
fi ve years
Lease receivables and
leased investment assets:
Lease receivables ................................... ¥ 875 ¥ — ¥ — ¥ — ¥ — ¥ —
Lease receivable components
of leased investment assets .................. 21,161 —————
Other assets:
Lease receivables ................................... — 978 171 104 42 23
Lease receivable components
of leased investment assets .................. — 11,244 7,847 4,102 1,977 1,086
Millions of yen
As of March 31, 2014
Due within
one year
Due after one
year through
two years
Due after two
years through
three years
Due after three
years through
four years
Due after four
years through
fi ve years
Due after
fi ve years
Lease receivables and
leased investment assets:
Lease receivables ................................... ¥ 934 ¥ — ¥ — ¥ — ¥ — ¥ —
Lease receivable components
of leased investment assets .................. 23,786 —————
Other assets:
Lease receivables ................................... — 344 552 66 24 2
Lease receivable components
of leased investment assets .................. — 14,393 9,425 5,003 1,593 3,774
Thousands of U.S. dollars
As of March 31, 2014
Due within
one year
Due after one
year through
two years
Due after two
years through
three years
Due after three
years through
four years
Due after four
years through
fi ve years
Due after
fi ve years
Lease receivables and
leased investment assets:
Lease receivables ................................... $ 9,068 $ — $ — $ — $ — $ —
Lease receivable components
of leased investment assets .................. 230,932 — ————
Other assets:
Lease receivables ................................... — 3,340 5,359 641 233 19
Lease receivable components
of leased investment assets .................. — 139,738 91,505 48,573 15,466 36,640
Notes to the Consolidated Financial Statements
97
OLYMPUS Annual Report 2014
96 OLYMPUS Annual Report 2014