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Brother Industries, Ltd. and Consolidated Subsidiaries
For the Years ended March 31, 2011 and 2010
44 Brother Annual Report 2011
Accordingly, market risk in these derivatives is basically offset by opposite movements in the value of hedged assets or liabilities. The Group does
not hold or issue derivatives for trading purposes.
Because the counterparties to these derivatives are limited to major international financial institutions with high credit ratings, the Group does
not anticipate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate the authorization and
credit limit amount.
The contract or notional amounts of derivatives which are shown in the following table do not represent the amounts exchanged by the
parties and do not measure the Group’s exposure to credit or market risk.
Derivative transactions to which hedge accounting is not applied at March 31, 2011 and 2010
At March 31, 2011
(Millions of Yen)
Contract
Amount
Contract Amount
due after One Year Fair Value
Unrealized
Gain/(Loss)
Foreign currency forward contracts:
Selling:
U.S. Dollars ¥ 711 ¥ 5¥ 5
Euro 3,240 (103) (103)
Pound Sterling 401 2 2
Thailand Baht 50 (1) (1)
Yen 7,813 193 193
Mexican Peso 572 (12) (12)
Korean Won 157  4 4
Indonesia Rupiah 203  4 4
Taiwan Dollars 124 (1) (1)
India Rupee 30 (0) (0)
Philippine Peso 232  2 2
Buying:
U.S. Dollars ¥ 3,404 ¥ (69) ¥ (69)
Pound Sterling 67 (1) (1)
Currency option contracts:
Selling:
Call
Euro ¥ 52,113 ¥ 1,764 ¥ 1,440 ¥ (274)
(Option fee) (1,166) (40)
Pound Sterling 1,339 22 (3)
(Option fee) (19)
Swiss Franc 642 8 3
(Option fee) (10)
Buying:
Call
Euro ¥ 333  ¥ 6 ¥ (5)
(Option fee) (10)
Yen 47,567 ¥ 1,764 1,013 (165)
(Option fee) (1,178) (40)
Interest rate swaps: ¥ 1,250 ¥ 1,250 ¥ (29) ¥ (29)
( xed rate payment,  oating rate receipt)
Notes to Consolidated Financial Statements