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Derivative Financial Instruments
0220 - Disclosure - Derivative Financial Instruments
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 20 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: .05in; width: 7.50in">
<div align="justify" style="font-size: 10pt; margin-top: 8pt"><b>20. Derivative Financial Instruments</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 8pt"><b>Risk Management Policy</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 8pt; text-indent: 4%">Komatsu is exposed to market risk primarily from changes in foreign currency exchange and interest
rates with respect to debt obligations, international operations and foreign currency denominated
credits and debts. In order to manage these risks that arise in the normal course of business,
Komatsu enters into various derivative transactions for hedging pursuant to its policies and
procedures. Komatsu does not enter into derivative financial transactions for trading or
speculative purposes.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 8pt; text-indent: 4%">Komatsu has entered into interest rate swap and cap agreements, partly concurrent with
currency swap agreements for the purpose of managing the risk resulting from changes in cash flow
or fair value that arise in their interest rate and foreign currency exposure with respect to
certain short-term and long-term debts.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 8pt; text-indent: 4%">Komatsu operates internationally which expose Komatsu to the foreign exchange risk against
existing assets and liabilities and transactions denominated in foreign currencies (principally the
U.S. dollar and the Euro). In order to reduce these risks, Komatsu executes forward exchange
contracts and option contracts based on its projected cash flow in foreign currencies.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 8pt; text-indent: 4%">Komatsu is exposed to credit-related losses in the event of nonperformance by counterparties
to derivative financial instruments, but Komatsu does not expect any counterparties to fail to meet
their obligations because of the high credit rating of the counterparties. Komatsu has not held any
derivative instruments which consisted credit-risk-related contingent features.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 8pt"><b>Fair Value Hedges</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 8pt; text-indent: 4%">Komatsu uses derivative financial instruments designated as fair value hedges to manage primarily
interest rate and foreign exchange risks associated with debt obligations. Principally interest
rate swaps and cross-currency swaps are used to hedge such risk for debt obligations. Changes in
fair value of the hedged debt obligations and derivative instruments designated as fair value hedge
are offset and recognized in other income (expenses). For the years ended March 31, 2010, 2009 and
2008, hedge ineffectiveness resulting from fair value hedging activities was not material to
Komatsu’s result of operations. During the same period, no fair value hedges were discontinued.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 8pt"><b>Cash Flow Hedges</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 8pt; text-indent: 4%">Komatsu uses derivative financial instruments designated as cash flow hedges to manage Komatsu’s
foreign exchange risks associated with forecasted transactions and Komatsu’s interest risks
associated with debt obligations. For transactions denominated in foreign currencies, Komatsu
typically hedges forecasted and firm commitment exposures to the variability in cash flow basically
up to one year. For the variable rate debt obligations, Komatsu enters into interest rate swap
contracts to manage the changes in cash flows. Komatsu records the changes in fair value of
derivative instruments designated as cash flow hedges in other comprehensive income (loss). These
amounts are reclassified into earnings through other income (expenses) when
the hedged items impact earnings. Approximately ¥186 million ($2,000 thousand) of existing income
included in accumulated other comprehensive income (loss) at March 31, 2010 will be reclassified
into earnings within twelve months from that date. No cash flow hedges were discontinued during the
years ended March 31, 2010 as a result of anticipated transactions that are no longer probable of
occurring.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: .05in; width: 7.50in">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Undesignated Derivative Instruments</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Komatsu has entered into interest rate swap contracts not
designated as hedging instruments under ASC 815,
“Derivatives and Hedging” as a means of managing Komatsu’s
interest rate exposures for short-term and long-term debts.
Forward contracts and option contracts not designated as
hedging instruments under ASC815 are also used to hedge
certain foreign currency exposures. The changes in fair
value of such instruments are recognized currently in
earnings.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Notional Principal Amounts of Derivative Financial
Instruments</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Notional principal amounts of derivative financial
instruments outstanding at March 31, 2010 and 2009 are as
follows.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Thousands of</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">U.S. dollars</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Forwards and options:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px">Sale of foreign currencies
</div></td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>40,209</b></td>
<td> </td>
<td> </td>
<td align="left">¥</td>
<td align="right">30,868</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>432,355</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px">Purchase of foreign
currencies
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>48,809</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48,424</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>524,828</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px">Option contracts (purchased)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>949</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,011</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>10,204</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap, cross-
currency swap and interest
rate cap agreements
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>184,487</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">226,754</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1,983,731</b></td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Fair value of derivative instruments at March 31, 2010 and 2009 on the consolidated balance sheets
are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="37%"> </td>
<td width="2%"> </td>
<td width="23%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="26%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Assets</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Liabilities</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivative instruments designated</b></td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>as hedging instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>73</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>830</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td> </td>
<td align="right"><b>354</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td> </td>
<td align="right"><b>734</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other assets</td>
<td> </td>
<td> </td>
<td align="right"><b>99</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other liabilities</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>526</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>1,564</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="37%"> </td>
<td width="2%"> </td>
<td width="23%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="26%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Assets</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Liabilities</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Undesignated derivative instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>90</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>1,248</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Option contracts
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td> </td>
<td align="right"><b>18</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td> </td>
<td align="right"><b>1,730</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td> </td>
<td align="right"><b>915</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other assets</td>
<td> </td>
<td> </td>
<td align="right"><b>6,989</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other liabilities</td>
<td> </td>
<td> </td>
<td align="right"><b>901</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>8,827</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>3,064</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total Derivative Instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>9,353</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>4,628</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: .05in; width: 7.50in">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="37%"> </td>
<td width="2%"> </td>
<td width="23%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="26%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Assets</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Liabilities</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivative instruments designated</b></td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>as hedging instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td align="left">¥</td>
<td align="right">278</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td align="left">¥</td>
<td align="right">430</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other assets</td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other liabilities</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td> </td>
<td align="right">2,351</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other assets</td>
<td> </td>
<td> </td>
<td align="right">5,709</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other liabilities</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">¥</td>
<td align="right">8,346</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">¥</td>
<td align="right">430</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Assets</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Liabilities</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Undesignated derivative instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td align="left">¥</td>
<td align="right">1,016</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td align="left">¥</td>
<td align="right">1,387</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Option contracts
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td> </td>
<td align="right">766</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td> </td>
<td align="right">980</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other assets</td>
<td> </td>
<td> </td>
<td align="right">1,704</td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other liabilities</td>
<td> </td>
<td> </td>
<td align="right">3,058</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">¥</td>
<td align="right">3,505</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">¥</td>
<td align="right">5,425</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total Derivative Instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">¥</td>
<td align="right">11,851</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">¥</td>
<td align="right">5,855</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">Thousands of U.S. dollars</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Assets</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Liabilities</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivative instruments designated</b></td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>as hedging instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>785</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>8,925</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td> </td>
<td align="right"><b>3,806</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td> </td>
<td align="right"><b>7,892</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other assets</td>
<td> </td>
<td> </td>
<td align="right"><b>1,065</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other liabilities</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>5,656</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>16,817</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td width="39%"> </td>
<td width="2%"> </td>
<td width="22%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="25%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Assets</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Derivative Liabilities</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location on the consolidated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Estimated</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Undesignated derivative instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheets</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">fair value</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>968</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>13,419</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Option contracts
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td> </td>
<td align="right"><b>194</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current assets</td>
<td> </td>
<td> </td>
<td align="right"><b>18,602</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other current liabilities</td>
<td> </td>
<td> </td>
<td align="right"><b>9,839</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other assets</td>
<td> </td>
<td> </td>
<td align="right"><b>75,150</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top">Deferred income taxes and other liabilities</td>
<td> </td>
<td> </td>
<td align="right"><b>9,688</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>94,914</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>32,946</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total Derivative Instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>100,570</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>49,763</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: .05in; width: 7.50in">
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The effects of derivative instruments on the consolidated statements of income for the year
ended March 31, 2010 and 2009 are as follows:
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Derivative instruments designated as fair value hedging relationships</b>
</div>
<div align="center">
<table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="32%"> </td>
<td width="2%"> </td>
<td width="22%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="10%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">gains (losses)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">gains (losses)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">recognized in income</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">recognized in income</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">on hedged items</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on hedged items</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net:<br />
Other, net</td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right" valign="bottom"><b>(270</b></td>
<td><b>)</b></td>
<td> </td>
<td colspan="1" align="left" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>355</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td align="left" > </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right" valign="top"><b>(270</b></td>
<td align="left" >)</td>
<td> </td>
<td> </td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>355</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td align="left" > </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td width="42%"> </td>
<td width="2%"> </td>
<td width="22%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="22%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">gains (losses)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">gains (losses)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">recognized in income</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">recognized in income</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">on hedged items</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on hedged items</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td align="left">¥</td>
<td align="right">7,910</td>
<td> </td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td nowrap="nowrap" align="left">¥</td>
<td align="right">(6,958</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td align="left" > </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">¥</td>
<td align="right">7,910</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left">¥</td>
<td align="right">(6,958</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td align="left" > </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td width="30%"> </td>
<td width="2%"> </td>
<td width="27%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="27%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000">Thousands of U.S. dollars</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">gains (losses)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">gains (losses)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">recognized in income</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">recognized in income</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">on hedged items</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on hedged items</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap
and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(2,903</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>3,817</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td align="left" > </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(2,903</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>3,817</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td align="left" > </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Derivative instruments designated as cash flow hedging relationships</b>
</div>
<div align="center">
<table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="49%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="29%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="16" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="16" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Ineffective portion and amount</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="8" style="border-bottom: 1px solid #000000">Effective portion</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">excluded from effectiveness testing</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Location of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">gains (losses) reclassified</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses) reclassified</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">from accumulated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">from accumulated</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">OCI on derivatives</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">OCI into income</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">OCI into income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>363</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td align="left" valign="top"><b>¥</b></td>
<td align="right" valign="top"><b>532</b></td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top">¥</td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,758</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"><b>89</b></td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="left" valign="top" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 0px solid #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left"><b>¥</b></td>
<td align="right"><b>2,121</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"><b>¥</b></td>
<td align="right" valign="top"><b>621</b></td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top">¥</td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="left" valign="top" style="border-top: 0px double #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 0px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: .05in; width: 7.50in">
<div align="center">
<table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="49%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="29%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="16" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="16" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Ineffective portion and amount</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="8" style="border-bottom: 1px solid #000000">Effective portion</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">excluded from effectiveness testing</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Location of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">gains (losses) reclassified</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses) reclassified</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">from accumulated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">from accumulated</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">OCI on derivatives</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">OCI into income</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">OCI into income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left" valign="top">¥</td>
<td align="right" valign="top">790</td>
<td> </td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td align="left" valign="bottom">¥</td>
<td align="right" valign="bottom">2,892</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="bottom">¥</td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td> </td>
<td align="right">65</td>
<td> </td>
<td> </td>
<td align="right" valign="bottom">—</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="left" valign="top" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 0px solid #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">855</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top">¥</td>
<td align="right" valign="top">2,892</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top">¥</td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="left" valign="top" style="border-top: 0px double #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 0px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td width="44%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="28%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="16" style="border-bottom: 1px solid #000000">Thousands of U.S. dollars</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="16" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Ineffective portion and amount</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="8" style="border-bottom: 1px solid #000000">Effective portion</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">excluded from effectiveness testing</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Location of</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">gains (losses) reclassified</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses) reclassified</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">gains (losses)</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">from accumulated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">from accumulated</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">recognized in income</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">OCI on derivatives</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">OCI into income</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">OCI into income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">on derivatives</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>3,903</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td align="left" valign="bottom"><b>$</b></td>
<td align="right" valign="bottom"><b>5,720</b></td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="bottom">$</td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>18,903</b></td>
<td> </td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom"><b>957</b></td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="left" valign="top" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 0px solid #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>22,806</b></td>
<td> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>6,677</b></td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="left" valign="top" style="border-top: 0px double #000000"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 0px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr style="font-size: 6pt">
<td width="3%"> </td>
<td width="1%"> </td>
<td width="96"> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">*</td>
<td> </td>
<td>
<div style="text-align: justify">OCI stands for other comprehensive income (loss).
</div></td>
</tr>
</table>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Derivative instruments not designated as hedging instruments relationships</b>
</div>
<div align="center">
<table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="47%"> </td>
<td width="3%"> </td>
<td width="42%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of gains (losses) recognized</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of gains (losses) recognized</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">in income on derivatives</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">in income on derivatives</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="bottom"><b>¥</b></td>
<td align="right" valign="bottom"><b>(972</b></td>
<td nowrap="nowrap" valign="bottom"><b>)</b></td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Option contracts
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td align="right" valign="bottom"><b>3</b></td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="bottom"><b>(580</b></td>
<td nowrap="nowrap" valign="bottom"><b>)</b></td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom"><b>1,900</b></td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="bottom">¥</td>
<td align="right" valign="bottom"><b>351</b></td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="46%"> </td>
<td width="3%"> </td>
<td width="41%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of gains (losses) recognized</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of gains (losses) recognized</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">in income on derivatives</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">in income on derivatives</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td align="left">¥</td>
<td align="right">846</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Option contracts
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="top">Cost of sales</td>
<td> </td>
<td> </td>
<td align="right">94</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top" nowrap="nowrap">Other income (expenses), net: <br />
Other, net</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,771</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left">¥</td>
<td align="right">(1,838</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: .05in; width: 7.50in">
<div align="center">
<table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="45%"> </td>
<td width="3%"> </td>
<td width="41%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000">Thousands of U.S. dollars</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of gains (losses) recognized</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Amount of gains (losses) recognized</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">in income on derivatives</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">in income on derivatives</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Forwards contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other income (expenses), net: <br />Other, net</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="bottom"><b>$</b></td>
<td align="right" valign="bottom"><b>(10,452</b></td>
<td nowrap="nowrap" valign="bottom"><b>)</b></td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Option contracts
</div></td>
<td> </td>
<td align="left" valign="top">Other income (expenses), net: <br />Other, net</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom"><b>32</b></td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest
rate swaps, cross-currency swap and interest rate cap agreements
</div></td>
<td> </td>
<td align="left" valign="bottom">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="bottom"><b>(6,236</b></td>
<td nowrap="nowrap" valign="bottom"><b>)</b></td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top">Other income (expenses), net: <br />Other, net</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="bottom"><b>20,430</b></td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"><b>$</b></td>
<td align="right" valign="top"><b>3,774</b></td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
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This element can be used to disclose the entity's entire derivative instruments and hedging activities disclosure as a single block of text. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising there from, and the amounts of and methodologies and assumptions used in determining the amounts of such items.
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
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