Olympus 2015 Annual Report Download - page 53

27. Lease Transactions
Finance Lease Transactions (Lessee):
The Company and its consolidated subsidiaries lease certain machinery and equipment under the non-cancelable finance and operating
leases. Finance leases that do not transfer ownership to lessees whose contract commenced on or before March 31, 2008 are not capital-
ized and are accounted for in the same manner as operating leases. Certain information for such non-capitalized finance leases as of or for
the years ended March 31, 2014 and 2015 were as follows:
As of March 31 Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
(Equivalent amount)
Acquisition cost ..................................................................................................................................... ¥ 302 ¥ 23 $ 192
Accumulated depreciation ..................................................................................................................... (287) (21) (175)
Accumulated loss on impairment ........................................................................................................... — — —
Net book value ...................................................................................................................................... ¥ 15 ¥ 2 $ 17
As of March 31 Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
(Future lease payments)
Due within one year ............................................................................................................................... ¥15 ¥ 2 $17
Due after one year ................................................................................................................................. 2 — —
Total ...................................................................................................................................................... ¥17 ¥ 2 $17
Balance of impairment loss account on leased assets included in the outstanding future lease payments ¥— ¥— $ —
For the years ended March 31 Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
(Lease payments and pro forma information)
Lease payments .................................................................................................................................... ¥59 ¥15 $125
Equivalent of depreciation expense ........................................................................................................ 51 13 108
Equivalent of interest expense ............................................................................................................... 2 0 1
Equivalent of depreciation expense is computed using the straight-line method over the lease terms assuming no residual value.
Equivalent of interest expense is computed using the interest rate method over the lease terms for the difference between acquisition cost
and total lease payments.
Operating Lease Transactions (Lessee):
Future minimum lease payments under the non-cancelable operating leases subsequent to March 31, 2014 and 2015 were as follows:
Millions of yen
As of March 31, 2014
Due within
one year
Due after
one year
Total minimum
lease payments
¥1,175 ¥1,732 ¥2,907
Millions of yen Thousands of U.S. dollars
As of March 31, 2015
Due within
one year
Due after
one year
Total minimum
lease payments
Due within
one year
Due after
one year
Total minimum
lease payments
¥1,671 ¥2,207 ¥3,878 $13,925 $18,392 $32,317
24. Income Taxes for Prior Periods
Income taxes for prior periods in the consolidated statement of operations for the year ended March 31, 2014 was recorded for the
reassessment of the prior year tax returns of the consolidated subsidiary.
Concerning the transactions over five years from the year ended March 31, 2007 to the year ended March 31, 2011 between the
domestic consolidated subsidiary and the consolidated subsidiary in England, the Company received the written notice of reassessment on
July 30, 2013 based on transfer pricing taxation. The Company disagreed with the reassessment and filed a notice of appeal for objection
with the Tokyo Regional Taxation Bureau and entered into the procedure for a mutual agreement with the bureau based on a tax treaty to
avoid double taxation. Considering the estimated effect on the possible mutual agreement, a net amount of ¥1,476 million, or the difference
between the reassessed tax amount and the estimated tax refund amount based on the mutual agreement, was recorded as income taxes
for prior periods in the consolidated statement of operations for the year ended March 31, 2014.
25. Cash and Cash Equivalents
Reconciliations of cash and deposits shown in the consolidated balance sheets and cash and cash equivalents shown in the consolidated
statements of cash flows for the years ended March 31, 2014 and 2015 were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
Cash and deposits ................................................................................................................................ ¥252,121 ¥209,875 $1,748,958
Less–Time deposits with maturities over three months .......................................................................... (777) (66) (550)
Cash and cash equivalents .................................................................................................................... ¥251,344 ¥209,809 $1,748,408
26. Cash Flow from Sales of Investments in Subsidiaries Resulting in Changes in Scope of Consolidation
Details of assets and liabilities, and the reconciliation between the transaction price and proceeds from Japan Medical Data Center Co., Ltd.
and 8 other companies, which have been excluded from consolidated subsidiaries due to the sale of shares during the year ended March
31, 2014 were as follows:
Millions of yen
Current assets .................................................................................................................................................................... ¥ 8,621
Non-current assets ............................................................................................................................................................. 4,522
Current liabilities ................................................................................................................................................................. (2,711)
Non-current liabilities .......................................................................................................................................................... (651)
Foreign currency translation adjustments ............................................................................................................................ (29)
Minority interests ................................................................................................................................................................ (1,478)
Gain on sales of investment securities in subsidiaries, net ................................................................................................... 128
Transfer price for business .................................................................................................................................................. 8,402
Cash and cash equivalents ................................................................................................................................................. (3,548)
Proceeds from sales of investment securities in subsidiaries, net ........................................................................................ ¥ 4,854
Details of assets and liabilities, and the reconciliation between the transaction price and proceeds from E-Globaledge and 3 other com-
panies, which have been excluded from consolidated subsidiaries due to the sale of shares during the year ended March 31, 2015 were
asfollows:
Millions of yen
Thousands of
U.S. dollars
Current assets .................................................................................................................................................................... ¥ 3,050 $ 25,417
Non-current assets ............................................................................................................................................................. 324 2,700
Current liabilities ................................................................................................................................................................. (1,836) (15,300)
Non-current liabilities .......................................................................................................................................................... (120) (1,000)
Minority interests ................................................................................................................................................................ (6) (50)
Loss on liquidation of business .......................................................................................................................................... (1,122) (9,350)
Transfer price for business .................................................................................................................................................. 290 2,417
Cash and cash equivalents ................................................................................................................................................. (36) (300)
Proceeds from sales of investment securities in subsidiaries, net ........................................................................................ ¥ 254 $ 2,117
Notes to the Consolidated Financial Statements
103
OLYMPUS Annual Report 2015
102 OLYMPUS Annual Report 2015