Casio 2008 Annual Report Download - page 35

33
Annual Report 2008
Thousands of U.S. Dollars
2008
Within
one year
Within
five years
Within
ten years
Over
ten years Total
Bonds:
Government bonds .............
$ — $ — $ — $ — $ —
Corporate bonds ................ 22,300 75,000 — — 97,300
Others ................................ 427,340 1,930 13,670 — 442,940
Others:
Others ................................
— 3,540 10,000 11,270 24,810
Total ................................... $449,640 $80,470 $23,670 $11,270 $565,050
6. Derivative Transactions
Status of derivative transactions
The Group utilizes interest rate swap and swaption contracts as derivative transactions to hedge interest rate risks arising from
normal business transactions and improve the efficiency of the utilization of available funds.
The Group also utilizes forward foreign currency contracts and currency options to hedge currency fluctuation risks arising from
the export of products and materials for products in addition to hedging through increases in overseas production and the overseas
procurement of materials.
The derivative transactions are solely made with highly rated financial institutions; therefore, the Group does not expect any
credit risks.
The Group utilizes derivatives following the internal regulation for derivatives, which stipulates policy, objective, scope, orga-
nization, procedures and financial institutions to deal with, and has a reporting system for derivative transactions reflecting proper
internal control functions.
Fair value of derivative transactions
The aggregate amounts contracted to be paid or received and the fair values of derivative transactions of the Group at March 31,
2008 and 2007 were as follows:
Currency-related derivatives:
Millions of Yen Thousands of U.S. Dollars
2008 2007 2008
Contract amount Contract amount Contract amount
Total
Due after
one year Fair value
Realized
gain (loss) Total
Due after
one year Fair value
Realized
gain (loss) Total
Due after
one year Fair value
Realized
gain (loss)
Forward contracts:
To sell:
U.S. dollars .......
¥— ¥— ¥— ¥— ¥21,243 ¥— ¥21,792 ¥ (549) $— $— $— $—
Euros ................ ————16,995 — 18,092 (1,097) ————
Sterling pounds ... ———— 714 — 724 (10) ————
Total ................. ¥— ¥— ¥— ¥— ¥38,952 ¥— ¥40,608 ¥(1,656) $— $— $— $—
To buy:
U.S. dollars .......
¥— ¥— ¥— ¥— ¥ — ¥— ¥ — ¥ — $— $— $— $—
Total ................. ¥— ¥— ¥— ¥— ¥ — ¥— ¥ — ¥ — $— $— $— $—
Interest rate swap and option-related derivatives:
Millions of Yen Thousands of U.S. Dollars
2008 2007 2008
Contract amount Contract amount Contract amount
Total
Due after
one year Fair value
Realized
gain (loss) Total
Due after
one year Fair value
Realized
gain (loss) Total
Due after
one year Fair value
Realized
gain (loss)
Interest rate swaps:
Receive fix/
Pay float ............
¥20,000 ¥20,000 ¥(734) ¥388 ¥20,000 ¥20,000 ¥(1,121) ¥31 $200,000 $200,000 $(7,340) $3,880
Total ................... ¥20,000 ¥20,000 ¥(734) ¥388 ¥20,000 ¥20,000 ¥(1,121) ¥31 $200,000 $200,000 $(7,340) $3,880
Notes: 1. Fair values of derivative transactions are determined by prices principally reported by the financial institutions with which the Company
engages in derivative transactions.
2. Interest rate swaps that no longer meet hedging criteria are stated separately. Amounts corresponding to fair values are included in “other
long-term liabilities” in consolidated balance sheets. The net deferred amounts to be paid or received under the said interest rate swaps are
periodically charged to expenses or income over the remaining contract periods.
3. Derivative transactions under hedge accounting are treated as outside scope of disclosure.