Toshiba 2010 Annual Report Download - page 113

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51
The above table excludes the financial instruments for which fair values approximate their carrying amounts and those related
to leasing activities. The table also excludes marketable securities and other investments which are disclosed in Note 6.
In assessing the fair value of these financial instruments, the Company uses a variety of methods and assumptions, which are
based on estimates of market conditions and risks existing at that time. For certain instruments, including cash and cash equiv-
alents, notes and accounts receivable-trade, short-term borrowings, notes payable-trade, accounts payable-trade and accounts
payable-other and accrued expenses, it is assumed that the carrying amount approximated fair value for the majority of these
instruments because of their short maturities. Quoted market prices are used for a part of marketable securities and other
investments. For long-term debt, fair value is estimated using market quotes, or where market quotes are not available, using
estimated discounted future cash flows. Other techniques, such as estimated discounted value of future cash flows, and
replacement cost, are used to determine fair value for the remaining financial instruments. These fair values are not necessarily
indicative of the amounts that could be realized in a current market exchange.
The effect of derivative instruments on the consolidated statements of income for the year ended March 31, 2010 is as follows:
Millions of yen
Amount of gain (loss)
Amount of gain (loss) recognized in income (loss)
Amount of gain (loss) reclassified from accumulated (Ineffective portion and amount excluded
recognized in OCI OCI into income (loss) from effectiveness testing)
Amount Amount Amount
recognized Location recognized Location recognized
Cash flow hedge:
Forward exchange
contracts ¥922 Other expense ¥(58) Other income ¥1,681
Interest rate swap
agreements (1,357) Other expense (2)
Millions of yen
Amount of gain (loss)
recognized in income (loss)
Amount
Location recognized
Derivatives not designated
as hedging instruments:
Forward exchange
contracts Other income ¥1,676
Currency options Other expense (162)
Thousands of U.S. dollars
Amount of gain (loss)
Amount of gain (loss) recognized in income (loss)
Amount of gain (loss) reclassified from accumulated (Ineffective portion and amount excluded
recognized in OCI OCI into income (loss) from effectiveness testing)
Amount Amount Amount
recognized Location recognized Location recognized
Cash flow hedge:
Forward exchange
contracts $9,914 Other expense $(624) Other income $18,075
Interest rate swap
agreements (14,592) Other expense (22)
Thousands of U.S. dollars
Amount of gain (loss)
recognized in income (loss)
Amount
Location recognized
Derivatives not designated
as hedging instruments:
Forward exchange
contracts Other income $18,022
Currency options Other expense (1,742)