|
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Financial Information:
Annual Report 2003
| Notes
to Consolidated Financial Statements |
NSK Ltd. and Subsidiaries
For the year ended March 31, 2003
| 15. Derivative
Transactions |
 |
The Company and its subsidiaries have entered into foreign
currency hedging transactions to reduce their exposure to adverse
fluctuations in foreign exchange rates relating to their receivables
and payables denominated in foreign currencies.
Summarized below are the notional amounts and the estimated
fair value of the derivative transactions outstanding at March
31, 2003 and 2002:
Currency-related transactions
| Millions
of yen |
Thousands
of
U.S. dollars |
| As of March
31, 2003 |
Notional
amount |
Fair
value |
Unrealized
gain (loss) |
Notional
amount |
Fair
value |
Unrealized
gain (loss) |
| Forward foreign exchange contracts |
|
|
|
|
|
|
| Buy: |
|
|
|
|
|
|
| US$ |
¥483 |
¥468 |
¥(15) |
$4,025 |
$3,900 |
$(125) |
| STG£ |
2,835 |
2,772 |
(63) |
23,625 |
23,100 |
(525) |
| EURO |
443 |
454 |
11 |
3,692 |
3,783 |
92 |
| YEN |
1,128 |
1,141 |
13 |
9,400 |
9,508 |
108 |
|
| Total |
¥4,890 |
¥4,837 |
¥(53) |
$40,750 |
$40,308 |
$(442) |
|
| Millions
of yen |
| As of March
31, 2002 |
Notional
amount |
Fair
value |
Unrealized
gain (loss) |
| Options |
|
|
|
| Put options, sold: |
|
|
|
| STG£ |
¥570 |
|
|
| (Premium) |
(0) |
¥ - |
¥ (0) |
| Call options, bought: |
|
|
|
| STG£ |
1,140 |
|
|
| (Premium) |
(0) |
2 |
2 |
|
| Forward foreign exchange contracts |
|
|
|
| Sell: |
|
|
|
| US$ |
1,227 |
1,325 |
(98) |
| Buy: |
|
|
|
| US$ |
371 |
374 |
2 |
| STG£ |
2,912 |
2,903 |
(9) |
| YEN |
824 |
769 |
(55) |
|
| Total |
¥ - |
¥ - |
¥(158) |
|
The notional amounts of the forward foreign exchange contracts
presented above exclude those entered into to hedge receivables
and payables denominated in foreign currencies, which have been
translated and are reflected at their corresponding contracted
rates in the accompanying consolidated balance sheets.
Interest-related transactions
At March 31, 2003 and 2002, the disclosure of fair value
information for interest-related derivatives positions has been
omitted since all derivatives have been accounted for as hedges.
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