Yamaha 2000 Annual Report Download - page 29

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
15. DERIVATIVES AND HEDGING ACTIVITIES
The Company and its subsidiaries primarily utilize forward foreign exchange and currency option contracts to hedge their exposure
to fluctuations of foreign exchange arising from exporting and importing transactions in the normal course of business. As a matter
of policy, the Company and its subsidiaries do not speculate in derivative transactions, which may have many huge fluctuations in
their market values. The forward foreign exchange contracts utilized by the Company and its subsidiaries have market risk.
However, the Company and its subsidiaries do not anticipate any risks resulting from fluctuations of foreign currency markets,
except option prices paid because the currency option contracts are restricted to enter into the purchase option with put foreign
currency/call yen. The Company and its subsidiaries principally follow their internal rules for the derivative transactions, under
which the status of such transactions are reported to their top management on a regular basis.
Millions of Yen
Contracted Fair Unrealized
amount value gain (loss)
Forward foreign exchange contracts:
Sold
U.S. dollars...................................................................................................................................... ¥10,223 ¥ 9,982 ¥ 241
Euro................................................................................................................................................ 14,504 13,700 803
Australian dollars............................................................................................................................. 658 638 19
Canadian dollars.............................................................................................................................. 1,346 1,350 (3)
Purchased
Euro................................................................................................................................................ 1,348 1,302 (45)
Total ............................................................................................................................................... 28,080 26,974 1,014
Option:
Purchased
Put .................................................................................................................................................. (—)(—)
16. SEGMENT INFORMATION
The business and geographical segment information and overseas sales for the Company and its consolidated subsidiaries for the
years ended March 31, 2000 and 1999 are outlined as follows:
Business Segments
Millions of Yen
Musical Electronic
instruments Lifestyle equipment Eliminations
and audio related and metal or unallocated
Year ended March 31, 2000 products products products Recreation Others Total amounts Consolidated
I. Sales and operating income
Sales to external customers ......... ¥387,004 ¥46,865 ¥ 55,880 ¥23,484 ¥14,663 ¥527,897 ¥—¥527,897
Intersegment sales or transfers.... — 1,243 4,966 — 3,735 9,944 (9,944) —
Total sales .................................. 387,004 48,108 60,846 23,484 18,398 537,842 (9,944) 527,897
Operating expenses .................... 359,926 49,104 78,960 24,266 18,194 530,451 (10,636) 519,814
Operating income (loss)............. ¥ 27,077 ¥ (995) ¥(18,113) ¥ (781) ¥ 204 ¥ 7,390 ¥ 692 ¥ 8,082
II. Total assets, depreciation
and capital expenditures
Total assets................................. ¥275,407 ¥22,395 ¥61,723 ¥77,703 ¥61,209 ¥498,439 ¥44,649 ¥543,088
Depreciation .............................. 9,920 1,518 14,365 3,009 798 29,612 (977) 28,635
Capital expenditures .................. 7,846 1,683 6,968 1,403 927 18,829 (285) 18,544