Epson 2013 Annual Report Download - page 76

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Thousands of U.S. dollars
March 31, 2013
Instruments Hedged items
Notional
amounts
Due after
one year
Interest rate swaps:
Pay-fixed, receive-floating Floating interest rate in
long-term loans payables $318,979 －
The fair value of interest rate swaps meeting certain hedging criteria and recognized under exceptional
treatment in Japanese accounting standards are not disclosed herein. They are included in the fair value of
the long-term loans payable disclosed in Note 23 “Financial risk management and fair value of financial
instruments.”
22. Comprehensive income
Each component of other comprehensive income for the year ended March 31, 2012 and 2013, were as
follows:
Thousands of
U.S. dollars
March 31,
2012
March 31,
2013
March 31,
2013
Valuation difference on available-for-sale securities
Gains/󲧩losses󲧪 arising during the year (¥1,234) ¥913 $9,707
Reclassification adjustments to profit or loss (17) (14) (149)
Amount before income tax effect (1,251) 899 9,558
Income tax effect 533 (122) (1,297)
Total (719) 777 8,261
Deferred gains or losses on hedges
Gains/󲧩losses󲧪 arising during the year 1,831 (4,374) (46,507)
Reclassification adjustments to profit or loss (2,246) 3,636 38,671
Amount before income tax effect (415) (737) (7,836)
Income tax effect (25) (160) (1,701)
Total (440) (897) (9,537)
Foreign currency translation adjustment
Gains/󲧩losses󲧪 arising during the year (2,808) 25,353 269,569
Reclassification adjustments to profit or loss 1,159 - -
Total (1,649) 25,353 269,569
Share of other comprehensive income of associates accounted for
using equity method
Gains/󲧩losses󲧪 arising during the year 1 102 1,084
Total other comprehensive income (¥2,807) ¥25,335 $269,377
Millions of yen
23. Financial risk management and fair value of financial instruments
Financial risk management principles
With the maintenance of funding an essential precondition, Epson places great emphasis on safety and
liquidity, and selects operational funding methods that are designed to ensure the maximum possible
efficiency. Epson uses methods such as bank loans and bonds to procure funds and others. Epson uses
derivative instruments only for hedging purposes and not for purposes of trading or speculation.
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