Nintendo 2010 Annual Report Download - page 44

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40
Note 12. Derivatives
¥11,284
4,686
101,583
1,377
33,861
1,377
¥11,159
4,475
1,521
1,072
¥124
(210)
(143)
(305)
¥(534)
For the year ended March 31, 2009, the Company and certain consolidated subsidiaries enter into foreign exchange forward
contracts and currency option contracts.
It is the Company’s policy to enter into derivative transactions within the limits of foreign currency deposits, and not for
speculative purposes.
The Company has foreign exchange forward contracts to reduce risk of exchange rate fluctuations and currency option contracts
to reduce risk of exchange rate fluctuations and yield improvement of short-term financial assets.
Foreign exchange forward contracts and currency option contracts bear risks resulting from exchange rate fluctuations. Since
counterparties of such transactions are limited to financial institutions that have high creditworthiness, the Company anticipates risk
due to default is minimal.
Derivative transactions entered into by the Company and certain consolidated subsidiaries are made by the finance department
or the department in charge of financial matters, after getting approval by the president or the directors in charge. Status of
derivative transactions are reported to Board of Directors on a regular basis. Since counterparties of such transactions are limited to
financial institutions that have high creditworthiness, the Company anticipates risk due to default is minimal.
Derivative contracts not subject to hedge accounting as of March 31, 2010 were as follows:
Derivative contracts as of March 31, 2009 were as follows：
Contract amount Unrealized
gain (loss)
Fair value
Japanese Yen in Millions
¥
Japanese Yen in Millions
¥
¥1,831
4,842
2,388
160,377
1,394
351,429
2,336
2,861
69
53,459
1,302
117,143
2,497
¥(49)
(70)
(155)
2,315
2,113
145
898
2,949
¥(49)
(70)
(155)
(920)
222
(76)
(404)
452
¥(1,001)
$19,692
52,074
25,678
1,724,487
14,993
3,778,809
25,124
30,763
741
574,829
14,010
1,259,603
26,849
$(536)
(760)
(1,672)
24,894
22,726
1,560
9,664
31,717
$(536)
(760)
(1,672)
(9,901)
2,397
(819)
(4,345)
4,867
$(10,769)
Contract amount Unrealized
gain (loss)
Fair value
Exchange forward contracts
Selling British Pound
Buying Japanese Yen
Currency options
Written call options:
Euro
(Premium)
Purchased put options
Euro
(Premium)
Total
As of March 31, 2009 Contract amount Unrealized
gain (loss)
Fair value
U.S. Dollars in Thousands
$
[Note] No derivative contracts were due after one year.
The fair value of exchange forward contracts is estimated based on the forward exchange rate as of March 31, 2009. The fair value of currency options is estimated based on price
quoted by financial institutions where we have agreements on derivative transactions.
[Note] No derivative contracts were due after one year.
The fair value as of March 31, 2010 is estimated based on price quoted by financial institutions where we have agreements.
Exchange forward contracts
Selling Canadian Dollar
Selling British Pound
Non-deliverable forward contracts
Selling South Korean Won
Currency options
Written call options:
U.S. Dollar
(Premium)
Euro
(Premium)
Australian Dollar
(Premium)
Purchased put options
U.S. Dollar
(Premium)
Euro
(Premium)
Total
As of March 31, 2010
Years ended March 31, 2010 and 2009
Notes to Consolidated Financial Statements