Toshiba 2004 Annual Report Download - page 65

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63
collection of accounts receivable denominated in foreign currency and the payment of variable interest associated with
the floating-rate debts.
At March 31, 2004, there were no significant gains or losses on derivative financial instruments or portions thereof
that were either ineffective as hedges, excluded from assessment of hedge effectiveness, or where the underlying risk
did not occur.
The Company’s forward exchange contract amounts, the aggregate notional principal amounts of interest rate swap
agreements, currency swap agreements, and currency options outstanding at March 31, 2004 and 2003 are
summarized below:
Thousands of
Millions of yen U.S. dollars
March 3 1 2004 2003 2004
Forward exchange contracts:
To sell foreign currencies ¥106,41 3 ¥ 82,290 $1 ,003,896
To buy foreign currencies 22,931 29,333 216,330
Interest rate swap agreements 170,3 26 355,517 1,606,8 49
Currency swap agreements 116,475 133,571 1,098 ,821
Currency options 51,552 101,922 486,340
> (2) FAIR VALUE OF FINANCIAL INSTRUMENTS The estimated fair values of the Company’s financial instruments
at March 31, 2004 and 2003 are summarized as follows:
Millions of yen
2004 2 003
Carrying Estimated Carrying Estimated
March 3 1 amount fair value amount fair value
Nonderivatives:
Assets:
Long-term finance receivables, net ¥ 5,630 ¥ 6,050 ¥ 109,394 ¥ 107,256
Liabilities:
Long-term debt, including current portion (84 7,039) (862,081) (1,225,399) (1,247,035)
Derivative financial instruments:
Forward exchange contracts 1,53 7 1,537 238 238
Interest rate swap agreements (163) (163) (2,534) (2,534)
Currency swap agreements 3,67 2 3,672 (3,611) (3,611)
Currency options 459 459 (575) (575)
Thousands of U.S.dollars
2004
Carrying Estimated
March 3 1 amount fair value
Nonderivatives:
Assets:
Long-term finance receivables, net $ 53,113 $ 57,075
Liabilities:
Long-term debt, including current portion (7,990 ,934) (8,132,840)
Derivative financial instruments:
Forward exchange contracts 14,500 14,500
Interest rate swap agreements (1,538) (1,538)
Currency swap agreements 34,642 34,642
Currency options 4,33 0 4,330
The above table excludes the financial instruments for which fair values approximate their carrying values and those
related to leasing activities.
In assessing the fair value of these financial instruments, the Company has used a variety of methods and
assumptions, which were based on estimates of market conditions and risks existing at that time. For certain
instruments, including cash and cash equivalents, notes and accounts receivable—trade, finance receivables—net,
short-term borrowings, notes payable—trade, accounts payable—trade and accounts payable—other and accrued
expenses, it was assumed that the carrying amount approximated fair value for the majority of these instruments