Honda 2013 Annual Report Download - page 49

Interest Rate Swaps
Years ended March 31 2012 2013
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 ¥ 300 (7) ¥ — — — — — — — — — —
US$ Float/Fix 2,465,885 (14,818) 2,424,360 426,859 788,240 769,519 359,611 80,131 —(11,508) 0.29 0.86
Fix/Float 736,422 27,384 993,168 207,849 202,208 188,100 117,563 117,563 159,885 30,934 3.08 1.45
Float/Float 12,329 (3) — — — — — — — — — —
CA$ Float/Fix 448,897 (3,679) 493,374 75,137 89,280 73,611 119,434 96,361 39,551 (2,743) 1.29 1.84
Fix/Float 123,446 2,929 120,174 83,197 — — — 36,977 —924 4.44 2.85
GBP Float/Fix 31,456 (59) 32,213 15,750 12,884 3,579 — — — (94) 0.52 0.90
Other Float/Fix 4,904 (12) — — — — — — — — — —
Total ¥3,823,639 11,735 ¥4,063,289 808,792 1,092,612 1,034,809 596,608 331,032 199,436 17,513
Currency & Interest Rate Swaps
Years ended March 31 2012 2013
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 ¥ 57,585 10,773 ¥ 46,029 5,754 6,263 31,369 — — 2,643 (2,704) 0.93 0.97
Float/Float 46,563 17,045 5,383 3,254 —2,129 — — — 88 0.38 0.82
Other Other Fix/Float 309,357 (7,023) 253,922 112,066 141,856 — — — — (20,306) 4.98 2.05
Float/Float 19,033 961 — — — — — — — — — —
Float/Fix 17,555 44 31,920 1,920 17,200 12,800 — — — (1,610) 1.18 3.13
Total ¥450,093 21,800 ¥337,254 122,994 165,319 46,298 — — 2,643 (24,532)
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, 2012 and 2013, the estimated fair values of
marketable equity securities were ¥100.8 billion and ¥117.1
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. We are 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