Pioneer 2010 Annual Report Download - page 48

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Current portion of long-term debt
The fair values of the current portion of long-term debt are
determined by discounting the sum of principal and interest at
the Group’s assumed corporate rate for new borrowings.
Income taxes payable
The carrying values of income taxes payable approximate fair
value because of their short maturities.
Long-term debt
The fair values of long-term debt are determined by discount-
ing the sum of principal and interest at the Group’s assumed
corporate rate for new borrowings.
Derivatives
The information of the fair value for derivatives is included in
Note 16.
(b) Financial instruments whose fair value cannot be reliably determined for the year ended March 31, 2010 were as follows:
Carrying amount
March 31, 2010 Millions of Yen
Thousands of
U.S. Dollars
Investments in equity instruments that do not have a quoted market price in an active market
Unlisted securities ¥ 470 $ 5,054
Unlisted affiliated securities 1,878 20,194
Total ¥2,348 $25,248
(5) Maturity analysis for financial assets and securities with contractual maturities
Millions of Yen
March 31, 2010
Due in One
Year or Less
Due After One
Year Through
Five Years
Due After Five
Years Through
Ten Years
Due After
Ten Years
Cash and cash equivalents ¥ 84,142 – – –
Time deposits 6,103–––
Trade receivables 69,056 – – –
Total ¥159,301 – – –
Thousands of U.S. Dollars
March 31, 2010
Due in One
Year or Less
Due After One
Year Through
Five Years
Due After Five
Years Through
Ten Years
Due After
Ten Years
Cash and cash equivalents $ 904,752 – – –
Time deposits 65,624 – – –
Trade receivables 742,538 – – –
Total $1,712,914 – – –
Please see Note 7 for annual maturities of long-term debt.
16. Derivatives
The Group enters into foreign currency forward contracts to
hedge foreign exchange risk associated with certain assets
and liabilities denominated in foreign currencies. The Group
also enters into currency swap contracts to manage its
interest rate exposure on certain liabilities.
All derivative transactions are entered into to hedge
interest and foreign currency exposure. Accordingly, market
risk in these derivatives is basically offset by opposite move-
ments in the value of hedged assets or liabilities.
Because the counterparties to these derivatives 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 regu-
late the authorization and credit limit amount.
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 financial instru-
ments and related disclosures at the end of the fiscal years
ending on or after March 31, 2010; therefore, the required
information is disclosed only for 2010.
46
PIONEER CORPORATION Annual Report 2010