Konica Minolta 2010 Annual Report Download - page 41

Fair Values of Financial Instruments
The book value on consolidated balance sheets, fair value, and differ-
ence as of March 31, 2010 are as follows:
Millions of yen
March 31
Book Value Fair value Differences
Assets
(1) Cash on hand and in banks ¥ 85,533 ¥ 85,533 ¥ –
(2) Notes and accounts
receivable–trade 177,720 177,720 –
(3) Short-term investment securities
and Investment securities
(i) Held-to-maturity securities 10 10 –
(ii) Other investment securities 95,848 95,848 –
Total ¥359,112 ¥359,112 ¥ –
Liabilities
(1) Notes and accounts
payable–trade 83,118 83,118 –
(2) Short-term loans 58,231 58,231 –
(3) Long-term loans 71,625 71,715 90
Total ¥212,974 ¥213,064 ¥90
Derivatives* ¥ (1,375) ¥ (1,375) ¥ –
Thousands of U.S. dollars
March 31
Book Value Fair value Differences
Assets
(1) Cash on hand and in banks $ 919,314 $ 919,314 $ –
(2) Notes and accounts
receivable–trade 1,910,146 1,910,146 –
(3) Short-term investment securities
and Investment securities
(i) Held-to-maturity securities 107 107 –
(ii) Other securities 1,030,181 1,030,181 –
Total $3,859,759 $3,859,759 $ –
Liabilities
(1) Notes and accounts
payable–trade 893,358 893,358 –
(2) Short-term loans 625,871 625,871 –
(3) Long-term loans 769,830 770,798 967
Total $2,289,058 $2,290,026 $967
Derivatives * $ (14,779) $ (14,779) $ –
* Derivatives assets and liabilities are on a net basis, and the net liability position is
enclosed in parentheses.
(i) Methods of calculating the fair value of financial
instruments and securities & derivatives transactions
Assets
(1) Cash on hand and in banks and (2) Notes and accounts
receivable–trade
The fair value equates to the book value due to the short-term
nature of these instruments.
(3) Short-term investment securities and Investment securities
(i) Held-to-maturity securities
The fair value equates to the book value due to the securities
being entirely school bonds and as the credit risk of the issuers
has not changed significantly since the time of acquisition.
(ii) Other investment securities
The fair value of equity securities is determined based on the
prevailing market price. The fair value of bonds is based on the
prevailing market price or provided price by financial institutions.
These other securities are described further in ‘Note 6. INVEST-
MENT SECURITIES’.
Liabilities
(1) Notes and accounts payable–trade and (2) Short-term loans
The fair value equates to the book value due to the short-term
nature of these instruments.
(3) Long-term loans
Fair value of long-term loans with fixed interest rates is based on the
present value of future cash flows discounted using the current
borrowing rate for similar debt of a comparable maturity.
Fair value of long-term loans with variable interest rates is based
on the book value as the Company’s credit risk has not significantly
changed since entering the borrowing.
For those that are subject to the special treatment of interest rate
swaps (Please see below ‘Derivatives’), the total amount of the
principal and interest that were accounted for as a single item with
the relevant interest rate swap is discounted with a rate that is
assumed to be applied when a new, similar loan is taken out.
Derivatives
Derivatives are described further in ‘Note 23. DERIVATIVES’.
(ii) Financial instruments for which the fair value is extremely
difficult to measure
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
Book Value Book Value
Unlisted equity securities ¥2,354 $25,301
Investments in unconsolidated subsidiaries
and affiliated companies 2,816 30,267
Above are not included in ‘(3)(ii) Other securities’ because there is no market value and it
is difficult to measure the fair value.
(iii) Redemption schedule for money claim and
securities with maturity date subsequent to the
consolidated balance sheet date
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
Within one
year
More than
one year,
within five
years
Within one
year
More than
one year,
within five
years
Cash on hand
and in banks ¥ 85,533 ¥ – $ 919,314 $ –
Notes and accounts
receivable–trade 177,720 – 1,910,146 –
Short-term investment
securities and
investment securities
Held-to-maturity
securities – 10 – 107
Other securities 79,000 – 849,097 –
Total ¥342,254 ¥10 $3,678,568 $107
(iv) Redemption schedule for long-term loans
subsequent to the consolidated balance sheet date
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
More than
one year,
within five
years
More than
five years,
within ten
years
More than
one year,
within five
years
More than
five years,
within ten
years
Long-term loans ¥63,622 ¥8,002 $683,813 $86,006
KONICA MINOLTA HOLDINGS, INC. ANNUAL REPORT 2010 39