18. Contingent Liabilities 19. Derivative Financial Instruments 50 FUJI HEAVY INDUSTRIES LTD. Note: The amounts in [brackets] are the carrying amounts of the premium on the option recorded as other current assets or liabilities. In the normal course of business, the Company and consolidated subsidiaries employ derivative financial instruments, including foreign exchange forward contracts and interest rate swaps, to manage their exposure to fluctuations in foreign currency exchange rates and interest rates. The Company and consol- idated subsidiaries do not use derivatives for speculative or trading purposes. Fair value information of the derivative financial instruments at March 31, 2003 and 2002 was as follows: Contingent liabilities at March 31, 2003 were as follows: Millions Thousands of of yen U.S. dollars Trade notes discounted with banks ¥ 184 $ 1,531 As guarantor of the indebtedness from financial institutes 36,241 301,506 As guarantor of the indebtedness of affiliated companies 6,187 51,473 (1) Foreign currency contracts: (a) As of March 31, 2003: (b) As of March 31, 2002: Millions of yen Thousands of U.S. dollars Contract Unrealized Contract Unrealized amount Fair value gains (losses) amount Fair value gains (losses) Foreign currency options contracts: Sell— Call U.S. dollar ¥10,582 $88,037 [97] ¥196 ¥ (99) [807] $1,631 $(824) Buy— Put U.S. dollar 10,582 88,037 [97] 127 30 [807] 1,057 250 Millions of yen Contract Unrealized amount Fair value gains (losses) Foreign currency options contracts: Sell— Call U.S. dollar ¥2,648 [22] ¥48 ¥ (26) Buy— Put U.S. dollar 2,522 [22] 6 (16)