SMFG Notes to Consolidated Financial Statements (f) Credit derivative transactions Millions of yen 2011 Contract amount Fair value Valuation gains (losses) March 31 Total Over 1 year Over-the-counter Credit default options: Sold .................................................................................................... ¥1,004,667 ¥695,622 ¥(12,098) ¥(12,098) Bought ............................................................................................... 1,107,470 602,404 14,148 14,148 Total ....................................................................................................... / / ¥ 2,049 ¥ 2,049 Millions of yen 2010 Contract amount Fair value Valuation gains (losses) March 31 Total Over 1 year Over-the-counter Credit default options: Sold .................................................................................................... ¥1,174,089 ¥1,079,228 ¥(73,555) ¥(73,555) Bought ............................................................................................... 1,362,339 1,078,463 76,421 76,421 Total ....................................................................................................... / / ¥ 2,865 ¥ 2,865 Millions of U.S. dollars 2011 Contract amount Fair value Valuation gains (losses) March 31 Total Over 1 year Over-the-counter Credit default options: Sold .................................................................................................... $12,083 $8,366 $(145) $(145) Bought ............................................................................................... 13,319 7,245 170 170 Total ....................................................................................................... / / $ 25 $ 25 Notes: 1. The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income. 2. Fair value is calculated using discounted present value and option pricing models. 3. “Sold” represents transactions in which the credit risk is accepted; “Bought” represents transactions in which the credit risk is transferred. The following tables set forth the contract amount or the amount equivalent to the principal, fair value and calculation method of the  relevant commodities by category with respect to derivative transactions to which the hedge accounting method is applied at the end of  the fiscal year. Contract amount does not indicate the market risk relating to derivative transactions. (2) Derivative transactions to which the hedge accounting method is applied (a) Interest rate derivatives Millions of yen March 31 2011 Hedge accounting method Principal items hedged Contract amount Type of derivative Total Over 1 year Fair value Deferral hedge method Interest rate futures: Interest-earning/bearing  financial assets/liabilities  such as loans and bills  discounted, other securi- ties (bonds), deposits and  negotiable certificates of  deposit Sold ................................................................. ¥ 1,080,929 ¥ 1,080,929  ¥ (421) Bought ............................................................ 9,861,263 — (223) Interest rate swaps: .............................................. 36,637,577 30,969,355 20,313  Receivable fixed rate/payable floating rate ....... 24,170,619 19,172,729 314,269  Receivable floating rate/payable fixed rate ....... 12,437,041 11,767,209 (294,567) Receivable floating rate/payable floating rate ... 29,916 29,416 611 Interest rate swaptions: Sold ................................................................. 460,983 460,899 1,085  Bought ............................................................ — — — Caps: Sold ................................................................. 2,562 2,562 410 Bought ............................................................ 2,562 2,562 (410) Floors: Sold ................................................................. — — — Bought ............................................................ 7,850 7,850 0 Recognition of gain or loss  on the hedging instrument Interest rate swaps: .............................................. Loans and bills discounted 3,832 2,354 (108) Receivable floating rate/payable fixed rate ....... 3,832 2,354 (108) Special treatment for  interest rate swaps Interest rate swaps: .............................................. Loans and bills discounted;  borrowed money; bonds 190,477 162,237 (Note 3) Receivable fixed rate/payable floating rate ....... 13,500 4,000 Receivable floating rate/payable fixed rate ....... 152,777 136,237 Receivable floating rate/payable floating rate ... 24,200 22,000 Total .................................................................... / / ¥ 20,644 SMFG  2011 118