Konica Minolta 2010 Annual Report Download - page 47

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The principal policies on foreign currency exchange instruments and
other derivative instruments of the Company and its major subsidiaries
are approved by the Management Committee of the Company. Addi-
tionally, a Committee which consists of management from the Com-
pany and its major subsidiaries meets regularly to discuss the principal
policies on foreign currency exchange instruments and to reaffirm and
reassess other derivative instruments and market risks. All derivative
instruments are reported monthly to the respective responsible officer.
Market risks and credit risks for other subsidiaries are controlled and
assessed based on internal rules. Derivative instruments are approved
by the respective president or equivalent of each subsidiary.
Interest rate swap contracts and currency swap contracts are
approved by the Finance Manager of the Company and the President
or equivalent of other subsidiaries, respectively.
A summary of derivative instruments at March 31, 2010 and 2009 is
as follows:
Derivative transactions to which hedge accounting is not applied
(1) Currency-Related Derivatives
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Contract
value
(notional
principal
amount) Fair value
Unrealized
gain (loss)
Contract
value
(notional
principal
amount) Fair value
Unrealized
gain (loss)
Contract
value
(notional
principal
amount) Fair value
Unrealized
gain (loss)
Forward foreign currency
exchange contracts:
To sell foreign currencies:
US$ ¥ 11,192 ¥ (279) ¥ (279) ¥21,978 ¥23,296 ¥(1,318) $120,292 $ (2,999) $ (2,999)
EURO 11,739 165 165 22,253 23,709 (1,455) 126,172 1,773 1,773
Other 1,362 (74) (74) – – – 14,639 (795) (795)
To buy foreign currencies:
US$ ¥ 551 ¥ 8 ¥ 8 ¥ 9,249 ¥10,025 ¥ 775 $ 5,922 $ 86 $ 86
EURO 3,021 (47) (47) – – – 32,470 (505) (505)
Other 1,549 (96) (96) –––16,649 (1,032) (1,032)
Total ¥29,415 ¥ (324) ¥ (324) ¥53,481 ¥57,031 ¥(1,998) $316,154 $ (3,482) $ (3,482)
Currency Swaps:
Pay JPY, receive US$ ¥15,942 ¥ (852) ¥ (852) ¥40,736 ¥37,460 ¥ 3,275 $171,346 $ (9,157) $ (9,157)
Other 2,955 (149) (149) –––31,761 (1,601) (1,601)
Total ¥18,897 ¥(1,001) ¥(1,001) ¥40,736 ¥37,460 ¥ 3,275 $203,106 $(10,759) $(10,759)
Note: Fair value of foreign currency forward exchange contracts is calculated based on the foreign currency forward exchange rates prevailing as of March 31, 2010 and 2009, respectively.
Fair value of currency swaps is provided by the financial institutions with whom the derivative contracts were entered into and agreed.
(2) Interest Rate-Related Derivatives
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Contract
value
(notional
principal
amount) Fair value
Unrealized
gain (loss)
Contract
value
(notional
principal
amount) Fair value
Unrealized
gain (loss)
Contract
value
(notional
principal
amount) Fair value
Unrealized
gain (loss)
Interest rate swaps:
Pay fixed, receive floating ¥3,747 ¥(106) ¥(106) ¥10,387 ¥(371) ¥(371) $40,273 $(1,139) $(1,139)
Notes: 1. Fair value is provided by the financial institutions with whom the derivative contracts were entered into and agreed.
2. Contract value (notional principal amount) does not indicate the level of risk associated with interest rate swaps.
KONICA MINOLTA HOLDINGS, INC. ANNUAL REPORT 2010 45