JVC 2001 Annual Report Download - page 38

The following summarizes hedging derivative financial instruments
used by the Companies and items hedged:
Hedging instruments: Hedging items:
Forward exchange contracts Foreign currency trade receivables
and option contracts and trade payables, future transaction
denominated in a foreign currency
Interest rate swap contracts Interest on bonds and notes
The Companies evaluate hedge effectiveness by comparing the
cumulative changes in cash flows from or the changes in fair value
of hedged items and the corresponding changes in the hedging
derivative instruments.
The following tables summarize market value information as of
March 31, 2001 of derivative transactions for which hedge accounting
has not been applied:
Millions of yen
Contract Market Recognized
March 31, 2001 amount value gain (loss)
Swap contracts:
Receive fix/pay floating . . . . ¥5,000 ¥(1) ¥(1)
Pay fix/receive floating . . . . . 5,000 1 1
Thousands of U.S. dollars
Contract Market Recognized
March 31, 2001 amount value gain (loss)
Swap contracts:
Receive fix/pay floating . . . . $40,323 $(8) $(8)
Pay fix/receive floating . . . . . 40,323 8 8
The outstanding contract amounts of derivative financial
transactions, their book values and their market values at March 31,
2000 were summarized as follows:
Millions of yen
Contract Market Unrealized
March 31, 2000 amount value gain (loss)
Forward exchange contracts:
To sell U.S. dollars . . . . . . . . . . ¥51,691 ¥51,430 ¥ 261
To sell Euros . . . . . . . . . . . . . . 14,828 13,909 919
To sell Sterling pounds . . . . . . 3,883 3,718 165
To sell Canadian dollars . . . . . 2,500 2,399 101
To sell Singapore dollars . . . . 2,400 2,347 53
To sell Others . . . . . . . . . . . . . . 596 562 34
To buy U.S. dollars . . . . . . . . . 15,342 15,037 (305)
To buy Singapore dollars . . . . 312 312 0
To buy Thai bahts . . . . . . . . . . 1,570 1,604 34
Millions of yen
Contract Book Market Unrealized
March 31, 2000 amount value value gain (loss)
Option contracts:
Call:
To sell U.S. dollars . . . . . . ¥12,965 ¥49 ¥132 ¥(83)
To sell Euros . . . . . . . . . . 2,153 16 10 6
Put:
To sell U.S. dollars . . . . . . 3,749 20 111 (91)
To sell Euros . . . . . . . . . . 985 11 9 2
Call:
To buy U.S. dollars . . . . . 1,260 —11 11
Put:
To buy U.S. dollars . . . . . 12,938 74 203 129
To buy Euros . . . . . . . . . . 2,153 27 25 (2)
Millions of yen
Contract Market Recognized
March 31, 2000 amount value gain (loss)
Swap contracts:
Receive fix/pay floating . . . . ¥9,561 ¥(10) ¥(10)
Pay fix/receive floating . . . . . 5,000 2 2
The forward contracts on the foreign currency receivable and
payables translated into Japanese yen at the forward exchange rate
on the accompanying consolidated financial statements were not
included in the above amounts.
The fair value of forward exchange contracts are estimated based
on market prices for contracts with similar terms.
The fair value of option contracts and interest rate swap contracts
are estimated based on the quotes obtained from financial institutions.
13. LEASE INFORMATION
The Companies lease certain buildings and structures, vehicles,
machinery and equipment and other assets under non-capitalized
finance and operating leases. Finance leases which do not transfer
ownership to lessees are not capitalized and are accounted for in the
same manner as operating leases. Certain information for such non-
capitalized finance and operating leases is as follows.
Lessee:
(1) A summary of assumed amounts of acquisition cost, accumulated
depreciation and net book value at March 31, 2001 and 2000 is as
follows:
Millions of yen
Acquisition Accumulated Net book
cost depreciation value
2001:
Buildings and structures . . . ¥1,975 ¥1,023 ¥952
Vehicles, machinery and
equipment . . . . . . . . . . . . . . 9,119 3,341 5,778
Tools, furniture and fixtures . 11,361 5,446 5,915
Leasehold rights . . . . . . . . . . 122 56 66
Software . . . . . . . . . . . . . . . . . 115 83 32
¥22,692 ¥9,949 ¥12,743
Millions of yen
Acquisition Accumulated Net book
cost depreciation value
2000:
Buildings and structures . . . ¥2,035 ¥1,226 ¥809
Vehicles, machinery and
equipment . . . . . . . . . . . . . . 5,738 2,849 2,889
Tools, furniture and fixtures . 11,699 5,742 5,957
Leasehold rights . . . . . . . . . . 109 66 43
Software . . . . . . . . . . . . . . . . . 167 103 64
¥19,748 ¥9,986 ¥9,762
Thousands of U.S. dollars
Acquisition Accumulated Net book
cost depreciation value
2001:
Buildings and structures . . . $ 15,927 $ 8,250 $ 7,677
Vehicles, machinery and
equipment . . . . . . . . . . . . . . 73,540 26,944 46,596
Tools, furniture and fixtures . 91,621 43,919 47,702
Leasehold rights . . . . . . . . . . 984 452 532
Software . . . . . . . . . . . . . . . . . 928 669 259
$183,000 $80,234 $102,766
< 36 VICTOR COMPANY OF JAPAN, LIMITED 37 >