Thousands of Millions of yen U.S. dollars March 31 2002 2001 2002 Forward exchange contracts: To sell foreign currencies ¥ 98,878 ¥157,532 $ 743,444 To buy foreign currencies 29,036 30,829 218,316 Interest rate swap agreements 410,377 432,884 3,085,541 Currency swap agreements 122,755 132,836 922,970 The Company’s forward exchange contract amounts, the aggregate notional principal amounts of interest rate swap agreements and the principal amounts of currency swap agreements outstanding at March 31, 2002 and 2001 are summarized below: At March 31, 2002, there were no significant gains or losses on derivative financial instruments or portions thereof that are either ineffective as hedges, excluded from assessment of hedge effectiveness, or where the under- lying risk did not occur.  The Company expects to reclassify ¥214 million ($1,609 thousand) of net losses on derivative financial instruments from accumulated other comprehensive income (loss) to earnings during the next twelve months due to the collection of accounts receivable denominated in foreign currency and the payment of variable interest associated with the float- ing rate debts.  The forward exchange contracts utilized by the Company effectively reduce fluctuation in cash flow from commitments on future trade transactions denominated in foreign currencies for the next six months, approximately.  The interest rate swap agreements utilized by the Company effectively convert a portion of its floating-rate debt to a fixed-rate basis for the next 10 years.  Cash Flow Hedge Strategy Fair Value Hedge Strategy The forward exchange contracts utilized by the Company effectively reduce fluctuation in fair value of accounts receiv- able denominated in foreign currencies.  The interest rate swap agreements utilized by the Company effectively convert a portion of its fixed-rate debt to a float- ing-rate basis.  Forward exchange contracts and certain interest rate swap agreements and currency swap agreements are designated as either fair value hedges or cash flow hedges depending on the foreign currency denominated accounts receivable or commitments on future trade transactions and the interest rate characteristics of the underlying debt as discussed below.  Interest rate swap agreements and currency swap agreements are used to limit the Company’s exposure to losses in relation to underlying debt instruments and a certain foreign currency denominated accounts receivable resulting from adverse fluctuations in foreign currency exchange and interest rates. These agreements mature during the peri- od 2002 to 2012.  The Company has entered into forward exchange contracts with banks as hedges against fluctuations in foreign cur- rency exchange rates on monetary assets and liabilities denominated in foreign currencies. The forward exchange con- tracts related to accounts receivable and payable, and commitments on future trade transactions denominated in foreign currencies mature primarily within a few months subsequent to the balance sheet date.  The counterparties to the Company’s derivative transactions are financial institutions of high credit standing. The Company does not anticipate any credit loss from nonperformance by the counterparties to forward exchange con- tract, interest rate swap agreements and currency swap agreements.  swap agreements and currency swap agreements, to reduce its exposures. The Company has policies and procedures for risk management and the approval, reporting and monitoring of derivative financial instruments. The Company’s policies prohibit holding or issuing derivative financial instruments for trading purposes.  61