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47
Nikon Corporation Annual Report 2010
(4) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
Millions of Yen Thousands of U.S. Dollars
March 31, 2010
Due in One Year
or Less
Due after
One Year through
Five Years
Due in One Year
or Less
Due after
One Year through
Five Years
Cash and cash equivalents ¥104,670 $1,124,995
Notes and accounts receivable 113,773 1,222,844
Investment securities
Available-for-sale securities with contractual maturities ¥0 $3
Total ¥218,443 ¥ 0 $2,347,839 $ 3
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 fl uctuations in market
conditions, including 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 the Group’s derivative contracts are
limited to major international fi nancial 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 that regulate the authorization
and credit limit amount.
As noted in Note 14, the Group applied ASBJ Statement No. 10
“Accounting Standard for Financial Instruments” and ASBJ Guidance
No. 19 “Guidance on Accounting Standard for Financial Instruments
and Related Disclosures”. The accounting standard and the guidance
are applicable to fi nancial instruments and related disclosures at the
end of the fi scal years ending on or after March 31, 2010; therefore,
the required information is disclosed only for 2010.
Derivative transactions to which hedge accounting is not applied at March 31, 2010
Millions of Yen Thousands of U.S. Dollars
2010 2010
Contract
Amount
Contract
Amount due
after One Year Fair Value
Unrealized
Gain (Loss)
Contract
Amount
Contract
Amount due
after One Year Fair Value
Unrealized
Gain (Loss)
Forward Exchange Contracts:
Selling USD ¥20,482 ¥(356) ¥(356) $220,137 $(3,822) $(3,822)
Selling EUR 35,917 322 322 386,035 3,458 3,458
Selling Other 5,676 (209) (209) 61,002 (2,243) (2,243)
Buying JPY (13) (1) (1) (144) (6) (6)
Buying USD (3,229) (35) (35) (34,706) (379) (379)
Buying EUR (1,909) (16) (16) (20,516) (174) (174)
Total ¥(295) $(3,166)
Currency Option Contracts:
Selling USD ¥ 2,328 ¥ ¥ $ 25,019 $ $
Option Premiums (5) (5) (58) (58)
Buying USD (2,328) (25,019)
Option Premiums 5 5 50 50
Total ¥ (0) $ (8)
(Note) Method used to calculate the fair value
(1) Forward exchange contracts: Forward exchange rates are used for the fair values of forward exchange contracts.
(2) Currency option contracts: The fair values of derivative transactions are based on information provided by fi nancial institutions.
In case of transacting zero cost option contracts, only the fair value and unrealized loss (gain) corresponding option premiums are shown.