Honda 2012 Annual Report Download - page 49

Interest Rate Swaps
Years ended March 31 2011 2012
Yen (millions) Yen (millions)
Average
receive
rate
(%)
Average
pay
rate
(%)
Expected maturity date
Fair
value
Notional
principal
currency Receive/Pay
Contract
amount Fair value
Contract
amount
Within
1 year
1-2
years
2-3
years
3-4
years
4-5
years
There-
after
JP¥ Float/Fix ¥ 420 (14) ¥ 300 —120 180 ——— (7) 1.33 3.17
US$ Float/Fix 2,357,658 (20,292) 2,465,885 301,084 651,447 953,305 472,352 87,697 —(14,818) 0.51 1.15
Fix/Float 519,895 16,611 736,422 41,095 181,638 176,709 82,190 102,738 152,052 27,384 3.52 1.81
Float/Float 12,473 16 12,329 12,329 — ———— (3) 0.74 0.77
CA$ Float/Fix 458,092 (4,218) 448,897 60,250 107,028 109,397 80,305 77,713 14,204 (3,679) 1.28 2.17
Fix/Float 179,904 5,373 123,446 49,378 74,068 ————2,929 5.46 2.82
GBP Float/Fix 32,134 (136) 31,456 15,104 16,352 ————(59) 1.35 1.22
OTHER Float/Fix 6,029 (17) 4,904 4,035 869 ————(12) 1.97 2.67
Total ¥3,566,605 (2,677) ¥3,823,639 483,275 1,031,522 1,239,591 634,847 268,148 166,256 11,735
Currency & Interest Rate Swaps
Years ended March 31 2011 2012
Yen (millions) Yen (millions)
Average
receive
rate
(%)
Average
pay
rate
(%)
Expected maturity date
Fair
value
Receiving
side
currency
Paying
side
currency
Receive/
Pay
Contract
amount Fair value
Contract
amount
Within
1 year
1-2
years
2-3
years
3-4
years
4-5
years
There-
after
JP¥ US$ Fix/Float ¥ 82,078 21,523 ¥ 57,585 17,361 5,028 5,473 27,413 —2,310 10,773 1.21 1.04
Float/Float 105,671 25,179 46,563 41,858 2,844 —1,861 — — 17,045 0.49 0.77
Other Other Fix/Float 313,576 6,444 309,357 87,076 98,314 123,967 — — — (7,023) 5.03 1.95
Float/Float 47,774 (3,064) 19,033 — — 19,033 — — — 961 1.55 3.45
Float/Fix — — 17,555 —1,602 15,953 — — — 44 1.21 2.98
Total ¥549,099 50,082 ¥450,093 146,295 107,788 164,426 29,274 —2,310 21,800
Equity Price Risk
Honda is exposed to equity price risk as a result of its
holdings of marketable equity securities. Marketable equity
securities included in Honda’s investment portfolio are held
for purposes other than trading, and are reported at fair
value, with unrealized gains or losses, net of deferred taxes,
included in accumulated other comprehensive income (loss)
in equity section of the consolidated balance sheets. At
March 31, 2011 and 2012, the estimated fair values of
marketable equity securities were ¥92.4 billion and ¥100.8
billion, respectively.
Legal Proceedings
With respect to product liability, personal injury claims or
lawsuits, we believe that any judgment that may be recovered
by any plaintiff for general and special damages and court
costs will be adequately covered by our insurance and
accrued liabilities. Punitive damages are claimed in certain of
these lawsuits. Honda is also subject to potential liability
under other various lawsuits and claims.
Honda recognizes an accrued liability for loss contingencies
when it is probable that an obligation has been incurred and
the amount of loss can be reasonably estimated. Honda
reviews these pending lawsuits and claims periodically and
adjusts the amounts recorded for these contingent liabilities, if
necessary, by considering the nature of lawsuits and claims,
the progress of the case and the opinions of legal counsel.
After consultation with legal counsel, and taking into account
all known factors pertaining to existing lawsuits and claims,
Honda believes that the ultimate outcome of such lawsuits and
pending claims should not result in liability to Honda that would
be likely to have an adverse material effect on its consolidated
financial position, results of operations or cash flows.
Honda Motor Co., Ltd. 47