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Derivative transactions are conducted in compliance with internal control rules and pro-
cedures that prescribe transaction authority. The policies for derivative transactions of the
Group are approved by the Company’s President or Financial Officer. Transactions are
approved in advance by either the Company’s Financial Services Division General
Manager or Treasury Department General Manager. Based on these approvals, the
Treasury Department conducts and books the transactions as well as confirms the balance
between the counterparty of the derivatives contract.
The operation of the transaction is segregated from its clerical administration, in order
to maintain internal check within the Treasury Department, and is audited periodically by
the Global Auditing Department. Derivative transactions are reported, upon execution, to
the Company’s Financial Officer, Financial Services Division General Manager, and
Treasury Department General Manager. The consolidated subsidiaries also follow internal
control rules and procedures pursuant to those of the Company, obtain approval of the
Company, and conduct and manage the transactions according to the approval.
The following summarizes hedging derivative financial instruments used by the Group
and items hedged:
Hedging instruments: Hedged items:
Forward foreign exchange contracts Foreign currency-denominated transac-
tions planned in the future
Interest rate swap contracts Interest on borrowings
The following tables summarize fair value information as of March 31, 2015 and 2014
of derivative transactions for which hedge accounting has not been applied:
Millions of yen Thousands of U.S. dollars
As of March 31, 2015
Contract
amount
Estimated
fair value Difference
Contract
amount
Estimated
fair value Difference
Forward foreign
exchange contracts:
Sell:
U.S. dollar ¥ 4,205 ¥ 4 ¥ 4 $ 35,042 $ 34 $ 34
Euro 2,016 62 62 16,800 517 517
Canadian dollar 5,663 (21) (21) 47,192 (175) (175)
Australian dollar 9,702 51 51 80,850 425 425
Sterling pound 727 16 16 6,058 133 133
Buy:
Thai baht 4,099 157 157 34,158 1,308 1,308
Total ¥26,412 ¥269 ¥269 $220,100 $2,242 $2,242
Millions of yen
As of March 31, 2014
Contract
amount
Estimated
fair value Difference
Forward foreign
exchange contracts:
Sell:
U.S. dollar
¥20,682 ¥ (921) ¥ (921)
Euro
2,002 (121) (121)
Canadian dollar
5,200 80 80
Australian dollar
9,725 (260) (260)
Sterling pound
955 (73) (73)
Russian ruble
7,279 282 282
Buy:
U.S. dollar
355 6 6
Australian dollar
1,380 (110) (110)
Thai baht
2,468 71 71
Total
¥50,046 ¥(1,046) ¥(1,046)
For forward foreign exchange contracts, fair values at year-end are estimated based on
prevailing forward exchange rates at that date.
Mazda Annual Report 2015
57
C
CONTENTS
Growth Strategy
Message from Management
Introduction
Review of Operations
Foundations Underpinning
Sustainable Growth