Omron 1999 Annual Report Download - page 42

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40
Thousands of U.S. dollars
1999
Tax
Before-tax (expense) Net-of-tax
amount or benefit amount
Foreign currency translation adjustments:
Amount arising during the year on investments
in foreign entities held at end of year...................................................................................................... $ (50,264) $ — $ (50,264)
Reclassification adjustments for the portion realized upon
sale or liquidation of investments in foreign entities ............................................................................... 330 — 330
Net change in foreign currency translation
adjustments during the year.................................................................................................................... (49,934) — (49,934)
Minimum pension liability adjustments ......................................................................................................... (91,173) 43,760 (47,413)
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during period......................................................................................... (38,397) 18,430 (19,967)
Less: reclassification adjustment
for gains realized in net income .............................................................................................................. 14,264 (6,843) 7,421
Net unrealized gains.................................................................................................................................. (24,133) 11,587 (12,546)
Other comprehensive income (loss).................................................................................................. $(165,240) $55,347 $(109,893)
Financial Instruments
The following table presents the carrying amounts and estimated fair values as of March 31, 1999 and 1998 of
the Companies’ financial instruments, both on and off the balance sheets.
Thousands of
Millions of yen U.S. dollars
1999 1998 1999
Carrying Fair Carrying Fair Carrying Fair
amount value amount value amount value
Nonderivatives:
Long-term debt, including
current portion ...................................... ¥(58,777) ¥(59,301) ¥(41,966) ¥(42,170) ¥(485,760) ¥(490,091)
Derivatives:
Included in other current assets
(other current liabilities):
Options purchased ............................. ——288 208 ——
Forward exchange contracts.............. (16) (62) (267) (307) (132) (512)
Interest rate swaps ............................. — (172) — (59) — (1,421)
The following methods and assumptions were used to estimate the fair value of each class of financial
instruments for which it is practicable to estimate that value:
Nonderivatives
(1) Cash and cash equivalents, notes and accounts receivable, bank loans and notes and accounts payable:
The carrying amounts approximate fair values.
(2) Short-term investments and investment securities (see Note 4):
The fair values are estimated based on quoted market prices or dealer quotes for marketable securities or
similar instruments. Certain equity securities included in investments have no public market value, for
which it is not practicable to estimate their fair values.
(3) Long-term debt:
For convertible bonds, the fair values are estimated based on quoted market prices. For other issues, except
capital lease obligations, the fair values are estimated using the present value of discounted future cash
flow analysis, based on the Companies’ current incremental issuing rates for similar types of arrangements.
14. Financial
Instruments
and Risk
Management