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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
42 NIKON ANNUAL REPORT 2007
Derivative contracts outstanding at March 31, 2007 and 2006, were as follows:
Derivatives which qualified for hedge accounting and related amounts are included with the associated assets and liabilities, and were
excluded from disclosure of market value information in the preceding table.
Foreign exchange forward contracts :
Selling USD
Selling EUR
Buying JPY
Buying USD
Buying EUR
Buying GBP
Total
Interest rate swaps :
(fixed rate receipt, floating rate payment)
(fixed rate payment, floating rate receipt)
Total
Net
Unrealized
Gain (Loss)
¥ 111
(238)
(2)
3
2
(0)
(124)
¥ 134
(112)
¥ 22
Fair Value
¥ 41,824
21,414
632
4,248
79
46
¥ 134
(112)
¥ 22
Contract or
Notional
Amount
¥ 41,935
21,176
634
4,245
77
46
¥ 20,000
10,000
¥ 30,000
Millions of Yen
2007
Net
Unrealized
Gain (Loss)
$946
(2,019)
(19)
25
16
—
(1,051)
1,139
(945)
$194
Fair Value
$ 354,286
181,398
5,354
35,982
666
393
$ 1,139
(945)
$ 194
Contract or
Notional
Amount
$ 355,232
179,379
5,373
35,957
650
393
$ 169,420
84,710
$ 254,130
Thousands of U.S. Dollars
2007
Foreign exchange forward contracts :
Selling USD
Selling EUR
Buying JPY
Buying USD
Buying EUR
Total
Currency option contracts :
Selling put EUR
Option premiums
Buying call EUR
Option premiums
Total
Interest rate swaps :
(fixed rate receipt, floating rate payment)
(fixed rate payment, floating rate receipt)
Total
Net
Unrealized
Gain (Loss)
¥ (490)
(288)
(2)
(2)
(782)
¥
(6)
5
(1)
¥ 271
(242)
¥29
Fair Value
¥ 43,400
14,001
100
2,576
¥
17
14
¥ 271
(242)
¥29
Contract or
Notional
Amount
¥ 42,910
13,713
102
2,578
¥ 249
11
249
9
¥ 20,000
10,000
¥ 30,000
Millions of Yen
2006
15. DERIVATIVES
The Group enters into derivative contracts, including foreign exchange forward contracts, currency option contracts, foreign currency swap
contracts and interest rate swap contracts to hedge foreign exchange risk and interest rate exposures. The Group does not hold or issue derivatives
for trading purposes. Derivatives are subject to market risk and credit risk. Market risk is the exposure created by potential fluctuations in market
conditions, including in changes in interest or foreign exchange rates. Credit risk is the possibility that a loss may result from a counterparty’s
failure to perform according to the terms and conditions of the contract.
Because the counterparties to those derivative contracts are limited to major international financial institutions, the Group does not anticipate
any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate the authorization
and credit limit amount.