Mazda 2016 Annual Report Download - page 58

For details on management of derivative transactions, refer to Note 15, “Derivative Financial
Instruments and Hedging Transactions”.
As regards short-term investments and investment securities, their fair values as well as the
financial standing of their issuing entities are monitored on a regular basis. Ownership of available-
for-sale securities are reviewed on a continuous basis.
Management of liquidity risks related to financing (i.e., risks of non-performance of
payments on their due dates)
The liquidity risks of the Group are managed mainly through the preparation and update of the
cash schedule by the Treasury Department.
Fair values of financial instruments
As of March 31, 2016 and 2015, the carrying values on the consolidated balance sheet, the fair
values, and the differences between these amounts, respectively, of financial instruments were as
follows. Financial instruments for which fair value is deemed highly difficult to measure are
excluded from the following table. Short-term investments are also excluded, since the fair value is
approximately the same as the carrying value.
Millions of yen Thousands of U.S. dollars
As of March 31, 2016
Carrying
values Fair values Difference
Carrying
values Fair values Difference
Assets:
1) Trade notes and
accounts receivable ¥ 198,894 $1,760,124
Allowance for
doubtful receivables (*1) (127) (1,124)
Trade notes and accounts
receivable, net 198,767 ¥ 198,767 ¥ — 1,759,000 $1,759,000 $ —
2) Investment securities
Available-for-sale securities 12,447 12,447 — 110,150 110,150 —
3) Long-term loans receivable (*2) 4,836 42,797
Allowance for
doubtful receivables (*3) (2,455) (21,726)
Long-term loans receivable, net 2,381 2,381 — 21,071 21,071 —
Total ¥ 213,595 ¥ 213,595 ¥ — $1,890,221 $1,890,221 $ —
Liabilities:
1) Trade notes and accounts payable ¥ 374,637 ¥ 374,637 ¥ — $3,315,372 $3,315,372 $ —
2) Other accounts payable 35,360 35,360 — 312,920 312,920 —
3) Short-term debt 117,143 117,143 — 1,036,664 1,036,664 —
4) Long-term debt 499,989 505,117 5,128 4,424,681 4,470,062 45,381
Total ¥1,027,129 ¥1,032,257 ¥5,128 $9,089,637 $9,135,018 $45,381
Derivative instruments: (*4)
1) Hedge accounting not applied ¥ (35) ¥ (35) ¥ — $ (310) $ (310) $ —
2) Hedge accounting applied (625) (625) — (5,531) (5,531) —
Total ¥ (660) ¥ (660) ¥ — $ (5,841) $ (5,841) $ —
Millions of yen
As of March 31, 2015 Carrying values Fair values Difference
Assets:
1) Trade notes and accounts receivable
¥ 215,161
Allowance for doubtful receivables (*1) (101)
Trade notes and accounts receivable, net 215,060 ¥ 215,060 ¥ —
2) Investment securities
Available-for-sale securities
12,760 12,760 —
3) Long-term loans receivable (*2) 6,390
Allowance for doubtful receivables (*3) (2,452)
Long-term loans receivable, net 3,938 3,938 —
Total ¥ 231,758 ¥ 231,758 ¥ —
Liabilities:
1) Trade notes and accounts payable
¥ 379,358 ¥ 379,358 ¥ —
2) Other accounts payable 41,019 41,019 —
3) Short-term debt 116,677 116,677 —
4) Long-term debt 584,342 599,374 15,032
Total ¥ 1,121,396 ¥ 1,136,428 ¥ 15,032
Derivative instruments: (*4)
1) Hedge accounting not applied
¥ 269 ¥ 269 ¥ —
2) Hedge accounting applied 1,014 1,014 —
Total ¥ 1,283 ¥ 1,283 ¥ —
(*1) Allowance for doubtful receivables, which is recognized on the basis of each individual accounts receivable,
is deducted.
(*2) Long-term loans receivable include those due within one year, which are included in “other current assets” on the
consolidated balance sheets.
(*3) Allowance for doubtful receivables, which is recognized on the basis of each individual long-term loans receivable,
is deducted.
(*4) Receivables and payables resulting from derivative transactions are offset against each other and presented
on a net basis; when a net liability results, the net amount is shown in ( ).
The financial instruments in the following table are excluded from “Assets 2) Investment securities”
in the above tables because measuring the fair value of these instruments is deemed highly
difficult: market prices of these instruments are not available and future cash flows from these
instruments are not contracted.
Millions of yen
Thousands of
U.S. dollars
Carrying values Carrying values
As of March 31 2016 2015 2016
Available-for-sale securities:
Non-listed equity securities ¥ 2,464
¥ 2,488
$ 21,806
Investment securities of affiliated companies 121,152
118,977
1,072,141
Total ¥123,616
¥121,465
$1,093,947
Notes to Consolidated Financial Statements
MAZDA ANNUAL REPORT 2016
Financial Section
Message from
Management
Review of Operations
Drivers of Value Creation
Foundations Underpinning
Sustainable Growth
Contents