Epson 2009 Annual Report Download - page 60

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59
Millions of yen
Thousands of
U.S. dollars
March 31 March 31,
Other securities 2008 2009 2009
Certificate of deposit ¥127,072 ¥101,000 $1,028,210
Unlisted equity securities 1,073 809 8,235
Corporate bonds 300 300 3,054
Other
27 14 142
Total
¥128,473 ¥102,124 $1,039,641
The carrying amount of held-to-maturity debt securities, which was carried at amortized cost and included
in the short-term investments and investment securities accounts on March 31, 2008 and 2009, comprised
the following:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31,
Held-to-maturity debt securities 2008 2009 2009
Commercial paper ¥9,992 ¥999 $10,170
N
ational/Local bonds and othe
r
159 148 1,506
Total ¥10,152 ¥1,147 $11,676
The amounts of investments in unconsolidated subsidiaries and affiliates, which were included in the
investment securities account at March 31, 2008 and 2009, were ¥2,342 million and ¥2,939 million
($29,919 thousand), respectively.
For the years ended March 31, 2008 and 2009, the total amounts of other-than-temporary impairments
charged to current income for securities with an aggregate market value were ¥471 million and ¥3,814
million ($38,827 thousand), respectively. Impairments are principally recorded in cases where the fair
value of other securities with determinable market values has declined in excess of 30% of cost. Those
securities are written down to the fair value, and the resulting losses are included in current income for the
period.
The total sales of other securities and the related gains for the year ended March 31, 2008, were ¥11,722
million and ¥1,721 million, respectively. The total sales of other securities and the related gains for the
year ended March 31, 2009, are not disclosed herein since they are insignificant to the consolidated results.
7. Derivative instruments
Epson enters into forward exchange contracts, currency options and interest rate swaps. Forward exchange
contracts and currency options are utilized to hedge currency risk exposure. Interest rate swaps are utilized
to hedge against possible future changes in interest rates on borrowings. Epson uses derivative instruments
only for hedging purposes and not for purposes of trading or speculation.
Epson’s management believes that credit risk relating to derivative instruments used by Epson is relatively
low since all the other parties relating to the derivative instruments are creditworthy financial institutions.
Forward exchange transactions are approved by the forward exchange committee (which comprises the
Epson’s director and department heads responsible for finance) and executed based on authorization of the
general manager of Epson responsible for the finance function. This is done in accordance with internal
rules and policies developed regarding derivative transaction management.