Annual Report 2012


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MOVEMENTSINCOMMONSTOCKANDTREASURYSTOCKOFTHECOMPANYFORTHEYEARSENDEDMARCH31,2012AND2011ARESUMMARIZEDASFOLLOWS:NUMBEROFSHARES(THOUSANDSOFUNITS)MARCH31,2011INCREASEDECREASEMARCH31,2012COMMONSTOCK765,382——765,382TREASURYSTOCK1,5901761,601NUMBEROFSHARES(THOUSANDSOFUNITS)MARCH31,2010INCREASEDECREASEMARCH31,2011COMMONSTOCK765,382——765,382TREASURYSTOCK1,809522711,59012.LANDREVALUATIONTHECOMPANYANDCERTAINDOMESTICCONSOLIDATEDSUBSIDIARIESREVAL-UEDTHELANDUSEDINTHEIRBUSINESSINACCORDANCEWITHTHELANDRE-VALUATIONLAW(LAWNO.34,MARCH31,1998)ANDTHELAWTOPARTIALLYREVISETHELANDREVALUATIONLAW(LAWNO.19,MARCH31,2001).THEEFFECTOFTHISREVALUATIONHASBEENRECORDEDASREVALUATIONRESERVEFORLANDINNETASSETS,EXCLUDINGTHERELATEDDEFERREDINCOMETAXESONLANDREVALUATION.THETIMINGOFTHEREVALUATIONWASEFFECTIVEMARCH31,2002.CERTAINAFfiLIATESACCOUNTEDFORBYTHEEQUITYMETHODALSOREVALUEDTHELANDUSEDINTHEIRBUSINESSINACCORDANCEWITHTHELANDREVALUA-TIONLAW(LAWNO.34,MARCH31,1998)ANDTHELAWTOPARTIALLYREVISETHELANDREVALUATIONLAW(LAWNO.19,MARCH31,2001).ATMARCH31,2012AND2011,THEFAIRVALUEOFLANDWASLOWERTHANITSCARRYINGVALUEAFTERREVALUATIONBY¥1,510MILLION($18,372THOU-SAND)AND¥899MILLION,RESPECTIVELY.13.COMMITMENTSANDCONTINGENTLIABILITIESATMARCH31,2012,COMMITMENTSMADEBYTHECOMPANYANDITSCON-SOLIDATEDSUBSIDIARIESFORTHECONSTRUCTIONOFVESSELSAMOUNTEDTO¥164,113MILLION($1,996,751THOUSAND).CONTINGENTLIABILITIESFORGUARANTEESOFLOANSTOAFfiLIATESANDTHIRD-PARTYCOMPANIES,RESERVATIONOFGUARANTEESMAINLYFORCURRENCYSWAPCONTRACTS,ANDJOINTINDEBTEDNESSPRINCIPALLYRELATEDTOCO-OWNERSHIPOFVESSELSASOFMARCH31,2012AREASFOLLOWS:MILLIONSOFYENTHOUSANDSOFU.S.DOLLARS20122012GUARANTEEOFLOANS¥18,741$228,021RESERVATIONOFGUARANTEE97911,911JOINTINDEBTEDNESS2,44029,687TOTAL¥22,160$269,61914.FINANCIALINSTRUMENTSSTATUSOFfiNANCIALINSTRUMENTSTHECOMPANYANDITSCONSOLIDATEDSUBSIDIARIES(THE“GROUP”)OBTAINNECESSARYFUNDING,MAINLYTHROUGHBANKLOANSANDTHEISSUANCEOFBONDS,INACCORDANCEWITHTHEIRCAPITALEXPENDITUREPROGRAMS.EX-CESSFUNDSAREINVESTEDINHIGHLYLIQUIDfiNANCIALASSETS,ANDOPERAT-INGFUNDSAREfiNANCEDBYBANKLOANSANDCOMMERCIALPAPER.THEGROUPUTILIZESDERIVATIVESONLYFORREDUCINGRISKS,BUTDOESNOTUTILIZETHEMFORSPECULATION.TRADEACCOUNTSANDNOTESRECEIVABLESAREEXPOSEDTOCREDITRISKINTHEEVENTOFTHENONPERFORMANCEBYCOUNTERPARTIES.ASREVENUESFROMMARINETRANSPORTATIONAREMAINLYDENOMINATEDINFOREIGNCURREN-CIES,TRADERECEIVABLESAREEXPOSEDTOFOREIGNCURRENCYEXCHANGERISKANDAPORTIONOFTHEM,NETOFTRADEPAYABLESDENOMINATEDINTHESAMEFOREIGNCURRENCIES,AREHEDGEDBYFORWARDFOREIGNEXCHANGECONTRACTS.FUTURETRADERECEIVABLESSUCHASFORFREIGHTANDCHARTEREDVESSELSAREEXPOSEDTOMARKETRISKS,ANDSOMEOFTHEMAREHEDGEDBYFORWARDFREIGHTAGREEMENTS.THEGROUPHOLDSMARKETABLESECURITIESANDIN-VESTMENTSINSECURITIES,WHICHAREMAINLYISSUEDBYCOMPANIESWHOHAVEABUSINESSRELATIONSHIPORCAPITALALLIANCEWITHTHEGROUP,ANDTHESESECURITIESAREEXPOSEDTOTHERISKOFflUCTUATIONINMARKETPRICES.THEGROUPALSOHASLONG-TERMLOANSRECEIVABLEMAINLYFROMOTHERSUB-SIDIARIESANDAFfiLIATES.THEGROUPHASTRADEACCOUNTSANDNOTESPAYABLES,WHICHHAVEPAYMENTDUEDATESWITHINONEYEAR.FUNDSFORCERTAINCAPITALEXPENDI-TURES,SUCHASCONSTRUCTIONOFVESSELSDENOMINATEDINFOREIGNCURREN-CIES,AREEXPOSEDTOFOREIGNCURRENCYEXCHANGERISK,SOMEOFWHICHAREHEDGEDBYFORWARDFOREIGNEXCHANGECONTRACTS.FUTURETRADEPAY-ABLESSUCHASPAYMENTSFORBUNKERFUELAREEXPOSEDTOTHERISKOFflUCTUATIONOFMARKETPRICES,ANDSOMEOFTHEMAREHEDGEDBYBUNKERFUELSWAPCONTRACTS.LOANSPAYABLE,BONDS,BONDSWITHSTOCKACQUISI-TIONRIGHTSANDLEASEOBLIGATIONSFORfiNANCELEASECONTRACTSARETAKENOUTPRINCIPALLYFORTHEPURPOSEOFMAKINGCAPITALINVESTMENTS.THERE-PAYMENTDATESOFLONG-TERMDEBTEXTENDUPTOSIXTEENYEARSSUBSE-QUENTTOTHEBALANCESHEETDATE.CERTAINELEMENTSOFTHESETRANSAC-TIONSAREEXPOSEDTOINTERESTRATEflUCTUATIONRISK.THEGROUPHEDGESTHISRISKBYENTERINGINTOINTERESTRATESWAPTRANSACTIONS.THEGROUPHASENTEREDINTOCURRENCYSWAPCONTRACTSTOMINIMIZEFOREIGNCURRENCYEXCHANGERISKAGAINSTTRADEPAYABLES.61ANNUALREPORT2012


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