Casio 2016 Annual Report Download - page 29

Annual Report 2016 / 4628
CONTENTS
To Our Stakeholders Prole Special Features ESG Information Financial Section Corporate Data
2) Retirement of treasury shares
Millions of Yen
Thousands of
U.S. Dollars
(Note 1)
2016 2015 2016
Retirement of treasury shares ...................................................... ¥— ¥10,970 $—
3) Exercise of subscription rights to shares of convertible bond-type bonds with subscription rights to shares
Millions of Yen
Thousands of
U.S. Dollars
(Note 1)
2016 2015 2016
Gain on disposal of treasury shares due to exercise of
subscription rights to shares .................................................... ¥— ¥77 $—
Decrease in treasury shares due to exercise of subscription
rights to shares ....................................................................... —153 —
Decrease in bonds with subscription rights to shares due to
exercise of subscription rights to shares ................................... ¥— ¥230 $—
4. Inventories
Millions of Yen
Thousands of
U.S. Dollars
(Note 1)
2016 2015 2016
Finished goods ........................................................................... ¥43,082 ¥41,064 $381,257
Work in process ......................................................................... 6,943 7,258 61,442
Raw materials and supplies......................................................... 7,751 7,629 68,593
Total........................................................................................ ¥57,776 ¥55,951 $511,292
5. Fair Value of Financial Instruments
(1) Qualitative information on financial instruments
1) Policies for using financial instruments
The Group invests surplus funds in highly secure financial assets, and funds required for working capital and
capital investments are raised through the issuance of bonds or loans from financial institutions such as
banks. Derivatives are used to avoid the risks described hereinafter and no speculative transactions are
entered into.
2) Details of financial instruments used and risks involved, and how they are managed
Notes and accounts receivable-trade are exposed to customers’ credit risk. To minimize that risk, the Group
periodically monitors the due date and the balance of the accounts.
Securities and investment securities are primarily highly secure and highly-rated debt securities and shares
of companies with which the Group has business relations, and are exposed to market price fluctuation risk.
The Group periodically monitors the market price and reviews the status of these holdings.
Operating payables comprising notes and accounts payable-trade, accounts payable-other as well as
income taxes payable have a due date of within one year.
Operating payables, loans payable, and bonds are subject to liquidity risk (the risk of an inability to pay by
the due date). However, the Group manages liquidity risk by maintaining short-term liquidity in excess of a
certain level of consolidated sales or by other means.
The Group uses derivative transactions of forward foreign currency contracts to hedge currency fluctuation
risks arising from debts and credits denominated in foreign currencies, as well as interest rate swap contracts
to fix the cash flows associated with loans payable. The Group utilizes and manages derivative transactions
following the internal regulations for them, which stipulate policy, objective, scope, organization, procedures
and financial institutions to deal with, and has an implementation and reporting system for derivative
transactions reflecting proper internal control functions.
Notes to Consolidated Financial Statements