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Derivative transactions to which hedge accounting is not applied as of March 31, 2016 and 2015
Millions of Yen Thousands of U.S. Dollars
2016 2016
Contract
Amount
Contract
Amount
Due After
1 Year Fair Value
Unrealized
Loss
Contract
Amount
Contract
Amount
Due After
1 Year Fair Value
Unrealized
Loss
Foreign currency forward
contracts:
Buying U.S. dollars ¥35,402 – ¥(507) ¥(507) $313,292 – $(4,487) $(4,487)
Buying sterling pounds 4,649 – (4) (4) 41,142 – (35) (35)
Currency swap contracts:
Receiving Australian dollars,
paying U.S. dollars
765 – (13) (13) 6,770 – (115) (115)
Total ¥40,816 – ¥(524) ¥(524) $361,204 – $(4,637) $(4,637)
Millions of Yen
2015
Contract
Amount
Contract
Amount
Due After
1 Year Fair Value
Unrealized
(Loss) Gain
Foreign currency forward
contracts:
Buying sterling pounds ¥5,082 – ¥ 29 ¥ 29
Selling U.S. dollars 1,518 – 11 11
Selling Australian dollars 270 – (6) (6)
Currency swap contracts:
Receiving Australian dollars,
paying U.S. dollars
938 –107 107
Total ¥7,808 – ¥141 ¥141
The fair value of foreign currency forward contracts is measured at the quoted price obtained from the forward
exchange market.
The fair value of currency swap contracts is measured at the quoted price obtained from the financial institutions.
The Group enters into foreign currency forward con-
tracts 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 and
foreign currency exposure on certain liabilities.
All derivative transactions are entered into to
hedge foreign currency exposure. Accordingly, market
risk in these derivatives is basically offset by opposite
movements 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 poli-
cies which regulate the authorization and credit limit
amount.
16. Derivatives
48 Pioneer Corporation Annual Report 2016