Omron 1999 Annual Report Download - page 34

Specialty Products include the production of automotive electronic components for use by the automotive
industry and high-technology electronic components and equipment directed at the office automation industries.
Healthcare includes blood pressure monitors, nebulizers and infrared therapy devices aimed at both the
consumer and institutional markets.
Open Systems supply network and personal computer systems to institutional and individual consumers.
New Accounting Standards
In June 1998, the FASB issued SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities.”
SFAS No. 133 establishes accounting and reporting standards for derivative instruments and hedging activities.
SFAS No. 133 requires that an entity recognizes all derivatives as either assets or liabilities in the balance
sheet and measures these instruments at fair market value. Changes in the fair market value of derivatives are
recorded each period. The Companies will adopt SFAS No. 133 for the year beginning April 1, 2000. The effect
on the Companies’ consolidated financial statements of adopting SFAS No. 133 has not been determined. In
March 1998, the American Institute of Certified Public Accountants issued Statement of Position (SOP) 98-1,
“Accounting for the Costs of Computer Software Developed or Obtained for Internal Use.” This SOP 98-1
which is effective for financial statements for fiscal years beginning after December 15, 1998 provides guid-
ance on accounting for the costs of computer software developed or obtained to solely meet the entities’ inter-
nal use. The Companies are in the process of evaluating the effect of SOP 98-1.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which the
Company is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts
are included solely for convenience of the readers and have been made at the rate of ¥121 to $1, the approxi-
mate free rate of exchange at March 31, 1999. Such translations should not be construed as representations
that the Japanese yen amounts could be converted into U.S. dollars at the above or any other rate.
Inventories at March 31, 1999 and 1998 consisted of:
Thousands of
Millions of yen U.S. dollars
1999 1998 1999
Finished products ......................................................................................... ¥47,653 ¥56,665 $393,826
Work-in-process ........................................................................................... 14,107 17,707 116,587
Materials and supplies .................................................................................. 17,775 20,609 146,901
Total ...................................................................................................... ¥79,535 ¥94,981 $657,314
Cost, gross unrealized holding gains and losses and fair value of securities, excluding equity securities with no
public market value, by major security type at March 31 were as follows:
Millions of yen
1999 1998
Gross Gross Gross Gross
unrealized unrealized Fair unrealized unrealized Fair
Cost gains losses value Cost gains losses value
Short-term investments:
Debt securities .................. ¥20¥—¥—¥20¥ 3,913 ¥ — ¥ — ¥ 3,913
Equity securities................ 722 399 (87) 1,034 854 1,442 (67) 2,229
Total short-term
investments ......................... 742 399 (87) 1,054 4,767 1,442 (67) 6,142
Marketable investment
securities:
Debt securities .................. 11 — — 11 25 — — 25
Equity securities................ 39,070 16,562 (6,328) 49,304 39,447 17,675 (5,584) 51,538
Total marketable investment
securities ............................ 39,081 16,562 (6,328) 49,315 39,472 17,675 (5,584) 51,563
Total .............................. ¥39,823 ¥16,961 ¥(6,415) ¥50,369 ¥44,239 ¥19,117 ¥(5,651) ¥57,705
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2. Translation into
United States
Dollars
3. Inventories
4. Short-Term
Investments and
Investment
Securities