Olympus 2014 Annual Report Download - page 51

Derivatives for which the hedge accounting is applied
As of March 31, 2013 Millions of yen
Notional amount Fair value
Foreign exchange forward contracts,
accounted for by deferral hedge accounting:
To buy U.S. dollars ........................................................................................... ¥ 294 ¥21
To buy other currencies .................................................................................... 6 (0)
To sell U.S. dollars ............................................................................................ 286 (4)
To sell other currencies ..................................................................................... 122 1
Foreign exchange forward contracts,
accounted for by special hedge accounting:
To buy U.S. dollars ........................................................................................... 9,530 *
To buy other currencies .................................................................................... 25 *
To sell U.S. dollars ............................................................................................ 23,834 *
To sell other currencies ..................................................................................... 7,531 *
Interest rate swap contracts, accounted for by deferral hedge accounting:
Receive fl oating / pay fi xed ............................................................................... — —
Interest rate swap contracts, accounted for
by special hedge accounting short-cut method:
Receive fl oating / pay fi xed ............................................................................... 347,295 **
As of March 31, 2014 Millions of yen Thousands of U.S. dollars
Notional amount Fair value Notional amount Fair value
Foreign exchange forward contracts,
accounted for by deferral hedge accounting:
To buy U.S. dollars ........................................................................................... ¥ — ¥— $ — $—
To buy other currencies .................................................................................... ————
To sell U.S. dollars ............................................................................................ ————
To sell other currencies ..................................................................................... ————
Foreign exchange forward contracts,
accounted for by special hedge accounting:
To buy U.S. dollars ........................................................................................... 11,243 * 109,155 *
To buy other currencies .................................................................................... 6 * 58 *
To sell U.S. dollars ............................................................................................ 39,765 * 386,068 *
To sell other currencies ..................................................................................... 16,480 * 160,000 *
Interest rate swap contracts, accounted for by deferral hedge accounting:
Receive fl oating/pay fi xed ................................................................................. ————
Interest rate swap contracts, accounted for
by special hedge accounting short-cut method:
Receive fl oating / pay fi xed ............................................................................... 284,900 ** 2,766,019 **
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 is estimated by obtaining quotes from fi nancial institutions.
* Foreign exchange forward contracts are accounted for as part of accounts receivable and accounts payable. Therefore, the fair value of the contracts is 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 is included in the fair value of underlying long-term debt.
31. Segment Information
(1) Overview of reportable segments
The reportable segments of the Olympus Group are components of the Company whose separate fi nancial 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, and Olympus Imaging
Corporation. Each business division formulates comprehensive strategies for Japan and abroad with respect to products and services han-
dled 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 four reportable segments: Medical Business, Life Science and Industrial Business, Imaging Business,
and Others.
Interest rate swaps that qualify for hedge accounting and meet specifi c matching criteria are not remeasured at market value, but
the differential to be paid or received under the swap agreements are accrued and included in interest expense or income (special hedge
accounting short-cut method for interest rate swaps).
The counterparties to the derivative fi nancial instruments of the Company and its consolidated subsidiaries are substantial and credit
worthy multi-national commercial banks or other fi nancial institutions that are recognized market makers. Neither the risks of counterparty
non-performance nor the economic consequences of counterparty non-performance associated with these contracts are considered by the
Company to be material.
The following table summarizes the underlying notional transaction amounts, fair values and unrealized gain or (loss) for outstanding
derivative fi nancial instruments by risk category and instrument type as of March 31, 2013 and 2014:
Derivatives for which the hedge accounting is not applied
Millions of yen
As of March 31, 2013 Notional amount Fair value
Unrealized
gain or (loss)
Foreign exchange forward contracts:
To buy U.S. dollars ................................. ¥ 115 ¥ 1 ¥ 1
To buy other currencies .......................... 17,061 (183) (183)
To sell U.S. dollars .................................. 1,354 (26) (26)
To sell other currencies ........................... 4,391 (74) (74)
Foreign exchange option contracts:
Put option .............................................. 3,967 80 80
Foreign currency swap contracts:
Receive British pounds / pay Euro ........... 2,081 (8) (8)
Receive other currencies /
pay other currencies ............................. 5,888 7 7
Millions of yen Thousands of U.S. dollars
As of March 31, 2014 Notional amount Fair value
Unrealized
gain or (loss) Notional amount Fair value
Unrealized
gain or (loss)
Foreign exchange forward contracts:
To buy U.S. dollars ................................. ¥ 396 ¥ 9 ¥ 9 $ 3,845 $ 87 $ 87
To buy other currencies .......................... 20,193 (269) (269) 196,049 (2,612) (2,612)
To sell U.S. dollars .................................. 3,312 (31) (31) 32,155 (301) (301)
To sell other currencies ........................... 3,129 6 6 30,379 58 58
Foreign exchange option contracts:
Put option .............................................. 3,584 154 154 34,796 1,495 1,495
Foreign currency swap contracts:
Receive British pounds / pay Euro .......... 1,418 0 0 13,767 3 3
Receive other currencies /
pay other currencies ............................. 7,295 16 16 70,825 155 155
The fair values of foreign exchange option contracts and currency swap contracts are estimated by obtaining quotes from fi nancial institu-
tions. The fair value of foreign exchange forward contracts is estimated based on market prices for contracts with similar terms.
Notes to the Consolidated Financial Statements
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OLYMPUS Annual Report 2014
98 OLYMPUS Annual Report 2014