Honda 2014 Annual Report Download - page 46

Interest Rate Swaps 2013 2014
Fiscal years ended March 31 Yen (millions) Yen (millions)
Average
receive
rate
(%)
Average
pay
rate
(%)
Expected maturity date
Fair
valueNotional 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
US$ Float/Fix ¥2,424,360 (11,508) ¥3,089,462 1,291,320 853,366 715,800 192,477 35,212 1,287 (3,662) 0.24 0.73
Fix/Float 993,168 30,934 1,065,222 221,278 205,840 231,570 128,650 174,964 102,920 14,347 2.45 1.24
CA$ Float/Fix 493,374 (2,743) 529,733 185,472 140,365 99,171 69,118 26,479 9,128 (1,810) 1.32 1.85
Fix/Float 120,174 924 74,512 ———37,256 37,256 —69 2.31 1.90
GBP Float/Fix 32,213 (94) 50,108 33,834 11,135 5,139 ———(17) 0.52 0.71
Total ¥4,063,289 17,513 ¥4,809,037 1,731,904 1,210,706 1,051,680 427,501 273,911 113,335 8,927 — —
Currency & Interest Rate Swaps 2013 2014
Fiscal years ended March 31 Yen (millions) Yen (millions)
Average
receive
rate
(%)
Average
pay
rate
(%)
Receiving side
currency
Paying side
currency
Expected maturity date
Fair
valueReceive/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 ¥ 46,029 (2,704) ¥ 44,074 6,854 34,328 — — — 2,892 (7,378) 0.76 0.96
Float/Float 5,383 88 2,330 —2,330 — — — — (354) 0.22 0.89
Other Other Fix/Float 253,922 (20,306) 258,267 155,234 — — — — 103,033 4,200 3.31 1.72
Float/Fix 31,920 (1,610) 61,360 18,071 13,303 10,910 19,076 — — 1,101 0.76 3.30
Total ¥337,254 (24,532) ¥366,031 180,159 49,961 10,910 19,076 —105,925 (2,431) — —
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, 2013 and 2014, the estimated fair values of marketable
equity securities were ¥117.1 billion and ¥138.4 billion, respectively.
Legal Proceedings
Various legal proceedings are pending against us. We believe that such proceed-
ings constitute ordinary routine litigation incidental to our business. 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 con-
sidering the nature of lawsuits and claims, the progress of the case and the opin-
ions 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. Annual Report 2014 45
6 Financial Section
1 The Power of Dreams
2 Financial Highlights
3 To Our Shareholders
4 Review of Operations
5 Corporate Governance
7
Investor Relations
Information
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