Nikon 2011 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2011 Nikon 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 68

  • 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

51Annual Report 2011Nikon CorporationFinancial Section
15. Derivatives
The Group enters into derivative contracts, including foreign
exchange forward contracts, currency option contracts,
foreign currency swap contracts and interest rate swap con-
tracts to hedge foreign exchange risk and interest rate expo-
sures. 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 fluctua-
tions 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 con-
tracts 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 that regulate the
authorization and credit limit amount.
Derivative transactions to which hedge accounting was not applied at March 31, 2010 and 2011 were as follows:
Millions of Yen
2010
Contract
Amount
Contract
Amount due
after One Year
Fair
Value
Unrealized
Gain (Loss)
Forward Exchange Contracts:
Selling USD ¥20,482 ¥(356) ¥(356)
Selling EUR 35,917 322 322
Selling Other 5,676 (209) (209)
Buying JPY (13) (1) (1)
Buying USD (3,229) (35) (35)
Buying EUR (1,909) (16) (16)
Total ¥(295)
Currency Option Contracts:
Selling USD ¥ 2,328
Option Premiums ¥ (5) ¥ (5)
Buying USD (2,328)
Option Premiums 5 5
Total ¥ (0)