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Nikon Annual Report 2008 45
Derivatives contracts outstanding at March 31, 2008 and 2007 were as follows:
Millions of Yen Thousands of U.S. Dollars
2008 2008
Contract or Net Contract or Net
Notional Unrealized Notional Unrealized
Amount Fair Value Gain (Loss) Amount Fair Value Gain (Loss)
Forward Exchange Contracts:
Selling USD ¥ 43,403 ¥ 41,067 ¥ 2,336 $ 433,208 $ 409,890 $ 23,318
Selling EUR 20,610 20,480 130 205,705 204,414 1,291
Buying JPY 4,275 4,285 10 42,670 42,773 103
Buying USD 5,889 5,855 (34) 58,775 58,433 (342)
Total 2,442 24,370
Millions of Yen
2007
Contract or Net
Notional Unrealized
Amount Fair Value Gain (Loss)
Forward Exchange Contracts:
Selling USD ¥ 41,935 ¥ 41,824 ¥ 111
Selling EUR 21,176 21,414 (238)
Buying JPY 634 632 (2)
Buying USD 4,245 4,248 3
Buying EUR 77 79 2
Buying GBP 46 46 (0)
Total (124)
Interest Rate Swaps:
(fixed rate receipt,
floating rate payment) ¥ 20,000 ¥ 134 ¥ 134
(fixed rate payment,
floating rate receipt) 10,000 (112) (112)
Total ¥ 30,000 ¥ 22 ¥ 22
Derivatives which qualified for hedge accounting and related amounts are included with the associated assets and
liabilities, and were excluded from disclosure of market value information in the preceding table.
15. Derivatives
The Group enters into derivative contracts, including foreign exchange forward contracts, currency option contracts, for-
eign currency swap contracts and interest rate swap contracts to hedge foreign exchange risk and interest rate exposures.
The Group does not hold or issue derivatives for trading purposes. Derivatives are subject to market risk and credit risk.
Market risk is the exposure created by potential fluctuations in market conditions, including changes in interest or foreign
exchange rates. Credit risk is the possibility that a loss may result from a counterparty’s failure to perform according to
the terms and conditions of the contract.
Because the counterparties to the Group’s derivative contracts are limited to major international financial institutions,
the Group does not anticipate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate
the authorization and credit limit amount.
16. Contingent Liabilities
Contingent liabilities at March 31, 2008 were as follows:
Thousands of
Millions of Yen U.S. Dollars
2008 2008
As the guarantor of bank loans and indebtedness, principally of employees,
unconsolidated subsidiaries and associated companies ¥ 2,973 $ 29,673
Total ¥ 2,973 $ 29,673