Issue of Annual Report 2010

(d) The realized gain and loss on sales of other securities for each of the three years in the period ended December 31, 2010 are
summarized as follows:
Millions of yen
Thousands of
U.S. dollars (Note 1)
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥786 $9,654
Gain on sales of securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 658 8,077
Loss on sales of securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12) (153)
(e) Marketable securities that have been written down
During the fiscal year ended December 31, 2010 the Company wrote down ¥104 million ($1,280 thousand) in shares classified as “Other securities.”
In conducting this impairment measure, securities that had declined more than 50% in value, as of December 31, 2010, of their acquisition
cost were written down entirely. For securities that had declined between 30% and 50% in value of their acquisition cost, the Company investigated
the stock’s recovery potential on a case-by-case basis, booking impairment losses as necessary.
12. Derivatives
Derivative transactions to which hedge accounting is applied
(1) Currency-related
December 31, 2010
Millions of yen Thousands of U.S. dollars (Note 1)
Hedge accounting method Hedging instrument Main hedged item
Contracted
amount
Contract payable after
amount one year
Fair value
Contracted
amount
Contract payable after
amount one year
Fair value
Principle method Forward foreign exchange contract Accounts payable
Purchase denomination: euro
¥249 – ¥238 $3,058 – $2,923
Total ¥249 – ¥238 $3,058 – $2,923
(2) Interest rate-related
December 31, 2010
Millions of yen Thousands of U.S. dollars (Note 1)
Hedge accounting method Hedging instrument Main hedged item
Contracted
amount
Contract payable after
amount one year
Fair value
Contracted
amount
Contract payable after
amount one year
Fair value
Special treatment for
Interest rate swap
Long-term debt
interest rate swaps
Receive variable rate,
pay fixed rate
¥51,357 ¥46,357 – $630,611 $569,217 –
¥51,357 ¥46,357 – $630,611 $569,217 –
(Note) Interest rate swaps backing long-term debts as hedges are subject to special treatment. Their fair value is recorded in conjunction with the long-term debts they back.
SAPPORO HOLDINGS LIMITED
Annual Report 2010
49