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Notes to Consolidated Financial Statements
Brother Industries, Ltd. and Consolidated Subsidiaries
For the Years ended March 31, 2010 and 2009
Carrying amounts of lease obligations approximate fair value, because neither the risk free rate nor the Group’s credibility has changed signifi-
cantly since the date of lease inception.
Income tax payable
The carrying values of income tax payable approximate fair value because of their short maturities.
Derivatives
The information of the fair value for derivatives is included in Note 15.
(b) Financial instruments whose fair value cannot be reliably determined
Carrying amount
March 31, 2010 Millions of Yen
Thousands of
U.S. Dollars
Equity securities that do not have a quoted market price in an active market ¥ 645 $ 6,935
Investments in limited liability partnerships that do not have a quoted market price in an active market 80 861
Investments in unconsolidated subsidiaries and associated companies 15,838 170,301
Total ¥ 16,563 $ 178,097
(5) Maturity analysis for financial assets and securities with contractual maturities
Millions of yen
March 31, 2010
Due in one year
or less
Due after one year
through five years
Due after five years
through ten years Due after ten years
Cash and cash equivalents ¥ 49,031 — — —
Marketable securities 300 — — —
Receivables 68,543 ¥ 385 — —
Investment securities
Held-to-maturity securities — 525 — —
Available-for-sale securities with contractual maturities 16———
Total ¥ 117,890 ¥ 910 — —
Thousands of U.S. Dollars
March 31, 2010
Due in one year
or less
Due after one year
through five years
Due after five years
through ten years Due after ten years
Cash and cash equivalents $ 527,215 — — —
Marketable securities 3,226———
Receivables 737,021 $ 4,140 — —
Investment securities
Held-to-maturity securities — 5,645 — —
Available-for-sale securities with contractual maturities 172 — — —
Total $ 1,267,634 $ 9,785 — —
Please see Note 7 for annual maturities of long-term debt.
15. Derivatives
The Group enters into foreign currency forward contracts and currency option contracts to hedge foreign exchange risk associated with certain
assets and liabilities denominated in foreign currencies. The Group also enters into interest rate swap contracts to manage its interest rate expo-
sures on certain liabilities.
All derivative transactions are entered into hedge interest and foreign currency exposures incorporated within the Group’s business. Accord-
ingly, market risk in these derivatives is basically offset by opposite movements in the value of hedged assets or liabilities. The Group does not
38 Brother Annual Report 2010