Ricoh 2009 Annual Report Download - page 64

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63 ANNUAL REPORT 2009
Cash Flow Hedge
Changes in the fair value of derivative instruments designated and
qualifying as cash flow hedges are included in accumulated other
comprehensive income (loss) on the consolidated balance sheets.
These amounts are reclassified into earnings as interest on the
hedged loans is paid. There is no hedging ineffectiveness nor are
net gains or losses excluded from the assessment of hedge
effectiveness for the years ended March 31, 2007, 2008 and 2009
as the critical terms of the interest rate swap match the terms of the
hedged debt obligations. Ricoh expects that it will reclassify into
earnings through other expenses during the next 12 months
approximately ¥116 million ($1,172 thousand) of the balance of
accumulated other comprehensive income as of March 31, 2009.
Undesignated Derivative Instruments
Derivative instruments not designated as hedging instruments are
held to reduce the risk relating to the variability in exchange rates
on assets and liabilities denominated in foreign currencies.
Changes in the fair value of these instruments are included in other
(income) expenses on the consolidated statements of income.
Contract amounts of derivative instruments at March 31, 2009 are
shown in the following tables:
Derivatives not designated as hedging instruments under SFAS No. 133
The location and fair value amounts of derivatives in consolidated balance sheet are shown in the following tables:
Derivatives designated as hedging instruments under SFAS No. 133
Thousands of
March 31, 2009 Millions of Yen U.S. Dollars
Interest rate swap agreements
¥298,665 $3,016,818
Foreign currency contracts
110,196 1,113,091
Foreign currency options
30,744 310,545
Thousands of Thousands of
Millions of Yen U.S. Dollars Millions of Yen U.S. Dollars
Current Long-term
Balance Sheet Fair Fair Balance Sheet Fair Fair
Location Value Value Location Value Value
Asset Derivatives Deferred income Lease deposits
Interest rate swap agreements taxes and other
¥ 77 $ 778
and other
¥ 139 $ 1,404
Liability Derivatives
Accrued expenses Deferred income
Interest rate swap agreements and other
¥ 19 $ 192
taxes and other
¥ 795 $ 8,030
Thousands of Thousands of
Millions of Yen U.S. Dollars Millions of Yen U.S. Dollars
Current Long-term
Balance Sheet Fair Fair Balance Sheet Fair Fair
Location Value Value Location Value Value
Asset Derivatives
Interest rate swap agreements Deferred income
taxes and other
¥ 16 $ 162
Lease deposits
and other
¥ – $  –
Foreign currency contracts
1,102 11,131 – –
Foreign currency options
25 253  –   –
Total
¥ 1,143 $11,546 ¥ – $  –
Liability Derivatives
Interest rate swap agreements
Accrued expenses
and other
¥ 54 $ 545
Deferred income
taxes
and other
¥ 395 $ 3,990
Foreign currency contracts
1,826 18,444 2,270 22,929
Foreign currency options
1,468 14,828 – –
Total
¥ 3,348 $33,817 ¥ 2,665 $26,919
Millions of Thousands of
Yen U.S. Dollars
Fair Fair
Value Value
Total Asset Derivatives
¥ 1,359 $13,727
Total Liability Derivatives
¥ 6,827 $68,960