Mitsubishi 2002 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2002 Mitsubishi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 70

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70

58
As a result of a change in sales in foreign currencies and related forward foreign exchange contracts qualified as hedges
as explained in Note 2, compared to the same method applied to the prior year’s consolidated financial statements, operat-
ing profit increased by ¥12,299 million ($92,300 thousand) in “Japan” segment in the year ended March 31, 2002.
As a result of a change in accounting for sales incentives as explained in Note 3(a), compared to the same method
applied to the prior year’s consolidated financial statements, net sales decreased by ¥49,751 million ($373,366 thousand)
with no effect on operating profit in “North America” segment in the year ended March 31, 2002.
(c) Overseas sales
Overseas sales, which include export sales of MMC and its domestic consolidated subsidiaries and sales (other than
exports to Japan) of the foreign consolidated subsidiaries for the years ended March 31, 2002 and 2001 are summarized
as follows:
(In thousands of
(In millions of yen) U.S. dollars)
Year ended March 31, 2002 2001 2002
Overseas sales:
North America ¥891,696 ¥911,481 $6,691,902
Europe 540,690 404,920 4,057,711
Asia 261,359 312,038 1,961,418
Other areas 330,441 354,847 2,479,857
Total ¥2,024,187 ¥1,983,287 $15,190,897
Consolidated sales ¥3,200,699 ¥3,276,716 $24,020,255
Overseas sales as a percentage of consolidated sales:
North America 27.8% 27.8%
Europe 16.9 12.4
Asia 8.2 9.5
Other areas 10.3 10.8
Total 63.2 60.5
14. Derivative Financial Instruments
MMC and its consolidated subsidiaries utilize derivative financial instruments for the purpose of hedging their exposure to
adverse fluctuations in foreign currency exchange rates and interest rates such as forward foreign exchange contracts and
interest rate swaps in the normal course of business, but they do not enter into such transactions for speculative or trading
purposes.
MMC and its consolidated subsidiaries are exposed to the risk of credit loss in the event of nonperformance by the
counterparties to the derivatives, but any such loss would not be expected to be material because MMC enters into
derivative transactions only with financial institutions with high credit ratings. The notional amounts of the derivative financial
instruments do not necessarily represent the amounts exchanged by the parties and, therefore, are not a direct measure of
MMC’s risk exposure in connection with derivatives.
Summarized below are the notional amounts and the estimated fair value of the derivative positions, except for those