Casio 2003 Annual Report Download - page 29

Thousands of U.S. dollars
2003
Within Within Within Over
one year five years ten years ten years Total
Bonds:
Government bonds ..........$167,083 $000,—$ —$—$167,083
Corporate bonds.............. 42 — — — 42
Others ............................. 50,000 31,667 42,675 — 124,342
Total ............................$217,125 $31,667 $42,675 $— $291,467
6DERIVATIVE TRANSACTIONS
Status of derivative transactions The Group utilizes interest rate swap and swaption contracts as derivative transactions
to hedge interest rate risks arising from normal business transactions and improve the efficiency of the utilization of avail-
able funds.
The Group also utilizes forward foreign currency contracts and currency options to hedge currency fluctuation risks aris-
ing from the export of products and materials for products in addition to hedging through increases in overseas produc-
tion and the overseas procurement of materials.
The derivative transactions are solely made with highly rated financial institutions; therefore, the Group does not expect
any credit risks.
The Group utilizes derivatives following the internal regulation for derivatives, which stipulates policy, objective, scope,
organization, procedures and financial institutions to deal with, and has a reporting system for derivative transactions
reflecting proper internal control functions.
Fair value of derivative transactions The aggregate amounts contracted to be paid or received and the fair values of
derivative transactions of the Group at March 31, 2003 and 2002 were as follows:
Currency-related derivatives:
Millions of yen
2003 2002
Contract amount Contract amount
Due after Fair Realized Due after Fair Realized
Total one year value gain (loss) Total one year value gain (loss)
Forward contracts:
To sell:
U.S. dollars ................. ¥13,000 ¥— ¥13,282 ¥0,(282) ¥7,114 ¥ — ¥ 7,140 ¥ (26)
Euros .......................... 9,855 — 10,627 (772) 7,387 — 7,757 (370)
Sterling pounds........... 1,449 — 1,451 (2) 1,275 — 1,375 (100)
Total ....................... ¥24,304 ¥— ¥25,360 ¥(1,056) ¥15,776 ¥ — ¥16,272 ¥(496)
Thousands of U.S. dollars
2003
Contract amount
Due after Fair Realized
Total one year value gain (loss)
Forward contracts:
To sell:
U.S. dollars ................. $108,333 $— $110,683 $(2,350)
Euros .......................... 82,125 — 88,558 (6,433)
Sterling pounds........... 12,075 — 12,092 (17)
Total ....................... $202,533 $— $211,333 $(8,800)
Interest rate swap and option-related derivatives:
The Group has entered into interest rate swap agreements to reduce its exposure resulting from adverse fluctuations in
interest rate on underlying debt instruments. They are all designated as hedges meeting certain hedging criteria and there
are no transactions that need to disclose contract amount, fair value and realized gain or loss to be reported for the years
ended March 31, 2003 and 2002.
7SHORT-TERM BORROWINGS AND LONG-TERM DEBT
The average interest rate of short-term borrowings was 1.23% per annum at March 31, 2003 and 1.33% per annum
at March 31, 2002.
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