Nintendo 2013 Annual Report Download - page 31

Book value DifferenceFair value
Japanese Yen in Millions
¥
Cash and deposits
Notes and accounts receivable-trade
Short-term and long term
investment securities
Held-to-maturity debt securities
Other securities
Total assets
Notes and accounts payable-trade
Income taxes payable
Total liabilities
Derivatives
¥478,761
45,873
368,232
159,482
1,052,349
107,045
3,563
110,608
¥26
¥478,761
45,873
368,237
159,482
1,052,355
107,045
3,563
110,608
¥26
-
-
¥5
-
¥5
-
-
-
-
$5,093,206
488,016
3,917,367
1,696,618
11,195,209
1,138,781
37,909
1,176,690
$279
$5,093,206
488,016
3,917,425
1,696,618
11,195,266
1,138,781
37,909
1,176,690
$279
-
-
$57
-
$57
-
-
-
-
As of March, 2013 Book value DifferenceFair value
U.S. Dollars in Thousands
$
Japanese Yen in Millions
¥
Cash and deposits
Notes and accounts receivable-trade
Short-term and long term
investment securities
Held-to-maturity debt securities
Other securities
Total assets
Notes and accounts payable-trade
Income taxes payable
Total liabilities
Derivatives
¥462,021
43,378
423,199
134,117
1,062,717
86,700
1,008
87,708
¥(5,164)
¥462,021
43,378
423,200
134,117
1,062,717
86,700
1,008
87,708
¥(5,164)
-
-
¥0
-
¥0
-
-
-
-
As of March, 2012 Book value DifferenceFair value
[Note1] Fair value measurement of financial instruments, items relating to securities and derivative transactions
(1) Cash and deposits, notes and accounts receivable-trade
The book value approximates fair value because of the short maturity of these items.
(2) Short-term and long term investment securities
The fair value of stocks equal quoted market price. Bonds are valued at the price provided by financial institutions. Securities classified by purpose of holding are described in
“Note 13. Investment Securities.”
(3) Notes and accounts payable-trade and income taxes payable
The book value approximates fair value because of the short maturity of these items.
(4) Derivative transactions
Net amounts of receivables / payables arising from derivative transactions are shown.Items that are net payables are shown in parenthesis.
Measurement of fair value and natures of transactions relating to derivatives are described in “Note 14. Derivatives.”
[Note2] Unlisted stocks (¥6,460 million or $68,728 thousand and ¥5,488 million in the consolidated balance sheets for the years ended March 31, 2013 and 2012, respectively) which do
not have market prices and of which future cash flows cannot be estimated are not included in “Short-term and long term investment securities,” since the estimation of fair value is
deemed to be extremely difficult.
B. Fair value of Financial Instruments
The book value on the consolidated balance sheets, fair value, and differences as of March 31, 2013 and 2012 were as follows:
Information of finance leases as of March 31, 2013 and 2012 were omitted as they are immaterial.
The rental commitments under non-cancelable operating leases as of March 31, 2013 and 2012 were as follows:
Note 11. Leases
A. Condition of Financial Instruments
(1) Policy for measures relating to financial instruments
The Company and its consolidated subsidiaries use only financial assets with high degrees of safety such as deposits for the
management of funds. The Company and certain consolidated subsidiaries use derivatives to reduce risk as described below,
and for the purpose of yield improvement of short-term financial assets, and not for speculative purposes.
(2) Details of financial instruments, risks, and risk management system
Notes and accounts receivable-trade are exposed to credit risk of customers. In order to reduce the risk, the Company and
its consolidated subsidiaries monitor the credit status and transaction history, assess creditworthiness and set credit limit for
each customer. Since short-term and long term investment securities mainly comprise bonds held to maturity issued by
financial institutions that have high creditworthiness, the credit risk is minimal. Such bonds are also subject to foreign currency
exchange risk and market risk. The Company and its consolidated subsidiaries closely monitor the market value of such bonds
and the financial position of the issuer and review the status of these investments on a regular basis. Investment securities
include stocks of companies with which the Company has business relationships. These stocks are exposed to market risk,
however, the investment balance is immaterial.
Notes and accounts payable-trade and income taxes payable are all due within one year.
The Company and certain consolidated subsidiaries enter into foreign exchange forward contracts, non-deliverable forward
contracts and currency option contracts to reduce risk of exchange rate fluctuations arising from deposits and trade receivables
denominated in foreign currencies. Derivative transactions are exposed to foreign currency exchange risk. Derivative
transactions entered into by the Company and certain consolidated subsidiaries are made within the limits of foreign currency
deposits by the Finance Department or the department in charge of financial matters, after getting approval by the president
or the directors in charge. Status of derivative transactions is reported to the directors in charge and Board of Directors on a
regular basis. Since counterparties of such transactions are limited to financial institutions that have high creditworthiness, the
Company anticipates risk due to default is minimal.
(3) Supplementary explanation regarding fair value of financial instruments
Fair value of financial instruments is measured based on the quoted market price, if available, or rationally calculated values
if a quoted market price is not available. Because estimation of fair value incorporates variable factors, adopting different
assumptions might change the value. In addition, the contract amounts of the derivative transactions below in “Note 14.
Derivatives” do not represent the market risk of derivative transactions.
Note 12. Financial Instruments
U.S. Dollars in Thousands
$
Japanese Yen in Millions
¥
Due within one year
Due after one year
Total
¥1,297
3,052
¥4,350
¥1,086
4,028
¥5,115
$13,808
32,478
$46,286
As of March 31, 2013 2012 2013
Notes to Consolidated Financial Statements
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