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49Annual Report 2011Nikon CorporationFinancial Section
Payment terms of payables, such as trade notes and trade
accounts, are less than one year. Although payables in foreign
currencies which involve the import of raw materials are
exposed to the market risk of fluctuation in foreign currency
exchange rates, those risks are netted against the balance of
receivables denominated in the same foreign currency as
noted above.
Short-term borrowings are mainly related to working
capital and long-term debt is related primarily to working
capital and capital investment. Although debts of variable
interest rates are exposed to market risks from changes in
variable interest rates, some long-term debts among those
risks are mitigated by using derivatives of interest-rate swaps
to reduce the risk of fluctuations in interest expenses and to
adjust the fixed interest. Please see “Summary of Significant
Accounting Policies, (t) Derivatives and Hedging Activities”
for more details about hedging.
Derivative transactions entered into by the Group have
been made in accordance with internal policies that regulate
the authorization and credit limit amount. The counterparties
to the Group’s derivative contracts are limited to major inter-
national financial institutions to reduce credit risk.
Accounts payables and debts are exposed to liquidity risk. The
Group manages its liquidity risk to contract commitment line.
(3) Fair Values of Financial Instruments
Carrying amounts, fair values and the differences between carrying amounts and fair values as of March 31, 2010 and 2011 were
as follows. The accounts deemed to be extremely difficult to calculate the fair values were not included in the following:
Millions of Yen
March 31, 2010
Carrying
Amount
Fair
Value
Unrealized
Gain/Loss
Cash and cash equivalents ¥104,670 ¥104,670
Notes and accounts receivables—trade 105,578 105,578
Investment securities 52,750 52,750
Total ¥262,998 ¥262,998
Short-term borrowings ¥ 14,899 ¥ 14,899
Notes and accounts payable—trade 125,687 125,687
Long-term debt 27,003 27,552 ¥(549)
Accrued expenses 42,177 42,177
Income taxes payable 3,503 3,503
Bonds 52,900 53,019 (119)
Derivatives 404 404
Total ¥266,573 ¥267,241 ¥(668)
Millions of Yen Thousands of U.S. Dollars
March 31, 2011
Carrying
Amount
Fair
Value
Unrealized
Gain/Loss
Carrying
Amount
Fair
Value
Unrealized
Gain/Loss
Cash and cash equivalents ¥181,061 ¥181,061 $2,177,523 $2,177,523
Notes and accounts receivables—trade 115,712 115,712 1,391,605 1,391,605
Investment securities 45,679 46,679 549,350 549,350
Total ¥342,452 ¥343,452 $4,118,483 $4,118,483
Short-term borrowings ¥ 14,972 ¥ 14,972 $180,063 $180,063
Notes and accounts payable—trade 171,736 171,736 2,065,374 2,065,374
Long-term debt 26,460 26,679 ¥(219) 318,220 320,859 $(2,639)
Bonds 40,000 40,600 (600) 481,060 488,274 (7,216)
Accrued expenses 54,545 54,545 655,989 655,989
Income taxes payable 2,521 2,521 30,316 30,316
Derivatives (1,823) (1,823) (21,927) (21,927)
Total ¥308,411 ¥309,230 ¥(819) $3,709,095 $3,718,948 $(9,855)