Wacom 2013 Annual Report Download - page 19

Notes to Consolidated Financial Statements
Derivatives transaction
See Note 14 “Derivatives” .
b) Financial instruments for which there is no readily
available fair value and are reported at their carrying
value as of March 31, 2012 and 2013 are as follows.
These financial instruments are not included in (2) Fair
values of financial instruments, as they have no
market value, and their fair value is not readily deter-
minable.
c) Redemption schedule of monetary receivables after
year ended March 31, 2012 and 2013
d) Redemption schedule of bond, long-term loans
payable, lease obligations and other interest-bearing
debt after year ended March 31, 2012 and 2013
36
Due over one
year to 5 years
Due Over
10 years
Due over 5 years
to 10 years
Thousands of yen
March 31, 2012
Cash and deposits
Notes and accounts
receivable - trade
Accounts receivable - other
Total
¥11,969,873
7,174,640
1,521,961
¥20,666,474
¥ -
-
-
¥ -
¥ -
-
-
¥ -
¥ -
-
-
¥ -
Due within
one year
Due over 2
year to 3 years
Due over 4
year to 5 years
Due over
5 years
Due over 3
year to 4 years
Thousands of yen
March 31, 2012
Short-term
loans payable
Total
-
-
-
-
-
-
-
-
Due over one
year to 2 years
Due over one
year to 5 years
Due Over
10 years
Due over 5 years
to 10 years
Thousands of yen
March 31, 2013
Cash and deposits
Notes and accounts
receivable - trade
Accounts receivable - other
Total
¥21,596,429
10,601,728
2,956,854
¥35,155,011
¥ -
-
-
¥ -
¥ -
-
-
¥ -
¥ -
-
-
¥ -
Due within
one year
Due over one
year to 5 years
Due Over
10 years
Due over 5 years
to 10 years
Thousands of U.S. dollars
March 31, 2013
Cash and deposits
Notes and accounts
receivable - trade
Accounts receivable - other
Total
$229,627
112,724
31,439
$373,790
$ -
-
-
$ -
$ -
-
-
$ -
$ -
-
-
$ -
Due within
one year
13. Investment securities:
Available-for-sale securities
Unlisted securities of ¥195,115 thousand on the con-
solidated balance sheets for the fiscal year ended
March 31, 2012 do not have market value. As there is
no readily available information to calculate the cur-
rent fair value, these securities have been omitted
from the fair value presentation.
Unlisted securities of ¥218,869 thousand ($2,327
thousand) in the consolidated balance sheet for the
fiscal year ended March 31, 2013 do not have readily
available market prices to calculate the current fair
value, and thus these securities have been omitted
from the fair value presentation.
14. Derivatives:
Derivative transactions for which hedge accounting
was not applied.
2013 2013
Thousands of
U.S. dollars
Thousands of yen
Unlisted securities ¥195,115 ¥218,869 $2,327
2012
Carrying amount Carrying amountCarrying amount
-
-
¥600,000
¥600,000
Due within
one year
Due over 2
year to 3 years
Due over 4
year to 5 years
Due over
5 years
Due over 3
year to 4 years
Thousands of yen
March 31, 2013
Short-term
loans payable
Total
-
-
-
-
-
-
-
-
Due over one
year to 2 years
-
-
¥600,000
¥600,000
Due within
one year
Due over 2
year to 3 years
Due over 4
year to 5 years
Due over
5 years
Due over 3
year to 4 years
Thousands of U.S. dollars
March 31, 2013
Short-term
loans payable
Total
-
-
-
-
-
-
-
-
Due over one
year to 2 years
-
-
$6,380
$6,380
Due within
one year
Thousands of yen
Foreign exchange forward contracts:
To sell Euros
To buy U.S. dollars
Total
¥698,145
86,139
-
(¥38,308)
1,009
(¥37,299)
(¥38,308)
1,009
(¥37,299)
March 31, 2013
Contract amount Fair value
Unrealized gain/
(loss)
Thousands of U.S. dollars
Foreign exchange forward contracts:
To sell Euros
To buy U.S. dollars
Total
$7,423
916
$ -
($408)
11
($397)
($408)
11
($397)
March 31, 2013
Contract amount Fair value
Unrealized gain/
(loss)
Thousands of yen
Foreign exchange forward contracts:
To sell Euros
To buy U.S. dollars
Total
¥1,606,427
165,640
-
(¥60,617)
297
(¥60,320)
(¥60,617)
297
(¥60,320)
March 31, 2012
Contract amount Fair value
Unrealized gain/
(loss)
35
12. Financial instruments:
(1) Matters relating to financial instruments -
(a) Policy for financial instruments:
The Company and its subsidiaries’ financing is mainly
funded through the Company’ s results of operations,
which provides stable and low-cost financing. How-
ever, some short-term financial needs and working
capital needs may be covered by short-term loans.
Long-term financing is also obtained based on
demand by selecting the appropriate vehicle such as
the issuance of new bonds, or issuance of new
shares.
Investment of surplus funds is limited to relatively
secure financial instruments with high liquidity and
high credit ratings.
Derivatives are used only for the purpose to avoid a
risk of future foreign currency fluctuations, and any
speculative trading is strictly prohibited.
(b) Content of financial instruments and their risks and
risk management scheme:
Notes and accounts receivable – trade are exposed to
the credit risk of customers. Such risks are controlled
by a scheme to keep track of the due date and out-
standing balance for every customer, and check cus-
tomer's credit status on a regular basis according to
the Company’s credit limit management policy.
Accounts receivable-other is mainly comprised of op-
erating receivables relevant to the supply of materials
for profit to electronic manufacturing services (EMS).
As these receivables are exposed to the credit risk of
EMS, such risks are controlled by the scheme to keep
track of the due date and outstanding balance for
every EMS. Net receivables from EMS are not signifi-
cant, since the Company has operating payables
relevant to the purchase of products from EMS.
Notes and account payable – trade are mostly due
within one year. Short-term loans payable are primar-
ily utilized for financing relating to business transac-
tions. Liquidity risk for operating payables and short-
term loans payable is controlled by a monthly cash
flow forecast.
As to derivative transactions, in order to hedge the
risk of fluctuation in foreign currency monetary assets
and liabilities, the Company uses forward exchange
contracts. For execution and management of deriva-
tive transactions, the finance department is respon-
sible for executing such transactions upon an
approval from authorized personnel in accordance
with the Company’s derivatives transaction policy that
defines approval authority and the trading limit of
transactions. In addition, to reduce the risk of default
on derivatives trading, the Company limits trading
counterparties to highly rated financial institutions
only.
(c) Supplementary information concerning the fair
value of financial instruments:
The amount of derivatives contracts in the Notes to
"Derivatives Transaction" is the nominal value of
derivatives contracts or the calculated notional
amount only, and it does not show the size of market
risk relating to the derivative transaction itself.
(2) Fair value of financial instruments -
The following table presents the carrying amounts
recorded in the consolidated balance sheets as of
March 31, 2012 and 2013, estimated fair values of
financial instruments and the differences. Financial
instruments deemed extremely difficult to calculate
the current market value have not been included.
(See Note: b)
(*) Derivatives are presented in a net amount of receivables and payables
with net liability positions are presented in ( ).
Notes:
a) Matters related to the method for calculating the market value of financial
instruments and securities and derivatives transactions.
Assets
(1) Cash and deposits, (2) Notes and accounts receiv-
able, (3) Accounts receivable - other
Due to expected settlement within a short period of
time, the carrying amount is equivalent to fair value.
Liabilities
(1) Notes and accounts payable – trade, (2) short-term
loans payable and (3) income taxes payable
Due to expected settlement within a short period of
time, the carrying amount is equivalent to fair value.
Thousands of yen
(1)Cash and deposits
(2)
Notes and accounts receivable - trade
(3)Accounts receivable - other
Total assets
(1)
Notes and accounts payable - trade
(2)Short-term loans payable
(3)Income taxes payable
Total liabilities
Derivatives (*)
¥11,969,873
7,174,640
1,521,961
¥20,666,474
8,307,536
600,000
1,375,072
¥10,282,608
(¥60,320)
¥11,969,873
7,174,640
1,521,961
¥20,666,474
8,307,536
600,000
1,375,072
¥10,282,608
(¥60,320)
March 31, 2012
Carrying Amount Fair value Difference
Thousands of yen
(1)Cash and deposits
(2)
Notes and accounts receivable - trade
(3)Accounts receivable - other
Total assets
(1) Notes and accounts payable - trade
(2)Short-term loans payable
(3)Income taxes payable
Total liabilities
Derivatives (*)
¥21,596,429
10,601,728
2,956,854
¥35,155,011
11,818,960
600,000
2,203,506
¥14,622,466
(¥37,299)
¥ -
-
-
¥ -
-
-
-
¥ -
¥ -
March 31, 2013
Carrying Amount Fair value Difference
¥21,596,429
10,601,728
2,956,854
¥35,155,011
11,818,960
600,000
2,203,506
¥14,622,466
(¥37,299)
Thousands of U.S. dollars (Note 1)
(1)Cash and deposits
(2) Notes and accounts receivable - trade
(3)Accounts receivable - other
Total assets
(1) Notes and accounts payable - trade
(2)Short-term loans payable
(3)Income taxes payable
Total liabilities
Derivatives (*)
$229,627
112,724
31,439
$373,790
125,667
6,380
23,429
$155,476
($397)
March 31, 2013
Carrying Amount Fair value Difference
$229,627
112,724
31,439
$373,790
125,667
6,380
23,429
$155,476
($397)
¥ -
-
-
¥ -
-
-
-
¥ -
¥ -
$ -
-
-
$ -
-
-
-
$ -
$ -