Konica Minolta 2015 Annual Report Download - page 132

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(Note 1) Interest rate derivatives in the table is including cross-currency interest rate swaps.
(Note 2) In addition to the items, from the current fiscal year, hedging instruments are designated to hedge foreign-currency borrowings of ¥5,587
million as part of the net investments in foreign operations, and a net investment hedge is used.
(6) Derivatives and hedge accounting
The Group enters into derivative contracts with financial institutions, hedging fluctuations in cash flows on its financial assets and
financial liabilities, and not for speculation purposes. In principle, the Group uses forward exchange contracts and currency options
to hedge foreign exchange fluctuation risk categorized by currency and by month. Depending on foreign exchange market
conditions, the Group may enter into forward exchange contracts and conduct currency option transactions for limited time periods
on foreign currency receivables and payables for expected transactions it deems are certain to occur.
The Group uses currency swap and interest-rate swap transactions to reduce interest rate fluctuation risk for borrowings with
variable interest rates, as well as to mitigate fluctuation risk on expected future funding costs, and makes use of cash flow hedges.
The contact amounts and fair value of derivatives are as follows:
Millions of yen Thousands of U.S. dollars
2015 2014 2013 2015
Contract
amounts
Contract
amounts
(of which
maturing
in more
than one
year)
Fair
value
Contract
amounts
Contract
amounts
(of which
maturing
in more
than one
year)
Fair
value
Contract
amounts
Contract
amounts
(of which
maturing
in more
than one
year)
Fair
value
Contract
amounts
Contract
amounts
(of which
maturing in
more than
one year)
Fair
value
Derivatives
employing
hedge
accounting
Currency
derivatives ¥ 7,536 ¥ - ¥238 ¥10,939 ¥ - (¥ 59) ¥ 5,789 ¥ - ¥ 103 $ 62,711 $ - $1,981
Interest
rate
derivatives
23,570 23,570 (539) 22,450 22,450 95 36,058 7,450 (353) 196,139 196,139 (4,485)
Derivatives
not
employing
hedge
accounting
Currency
derivatives 34,121 - (23) 28,341 - (470) 25,711 - (1,076) 283,939 - (191)
Total ¥65,227 ¥23,570 (¥323) ¥61,731 ¥22,450 (¥433) ¥67,558 ¥7,450 (¥1,327) $542,789 $196,139 ($2,688)
131
KONICA MINOLTA, INC. Annual Report 2015
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