Thousands of U.S. dollars December 31, 2010 Carrying value Fair value Difference (1) Cash and cash equivalents...................... $172,486 $172,486 . (2) Notes and accounts receivable............ 546,026 546,026 . (3) Securities and investment securities: (i) Held-to-maturity securities................. 1,247 1,269 $ 21 (ii) Other securities........................................ 233,486 233,486 . (4) Overdue loans receivable........................ 107,411 Allowance for doubtful receivables (*).... (69,799) 37,611 37,611 . Total assets............................................................... 990,859 990,881 21 (1) Notes and accounts payable................. 181,967 181,967 . (2) Short-term bank loans................................ 91,806 91,806 . (3) Long-term debt.............................................. 73,881 74,461 579 Total liabilities......................................................... $347,656 $348,235 $579 Total derivative transactions.......................... . . . (*) Excludes the estimated unrecoverable amount of overdue loans receivable. (Note 1) Valuation method of financial instruments and matters related to securities and derivative transactions. Assets (1) Cash and cash equivalents, and (2) Notes and accounts receivable As all of these are settled within a short span of time, the fair value is virtually identical to the carrying value. Therefore, the carrying value is used. (3) Securities and investment securities In the case of the fair value of securities and investment securities, shares are stated at the exchange-listed price and securities are stated at the exchangelisted price or the price quoted by the correspondent financial institution. In the case of those other securities which are settled within a short span of time, the fair value is virtually identical to the carrying value. Therefore, the carrying value is used. (4) Overdue loans receivable In the case of overdue loans receivable, the estimated unrecoverable amount is calculated based on the amount expected to be recovered, which is determined based on the financial condition of the borrower. Therefore, the fair value is approximately equal to the amount stated in the balance sheet as of the date of closing of consolidated accounts, less the estimated unrecoverable amount, and this value is stated as the fair value. Liabilities (1) Notes and accounts payable, and (2) Short-term bank loans As all of these are settled within a short span of time, the fair value is virtually identical to the carrying value. Therefore, the carrying value is used. (3) Long-term debt The fair value of long-term debt is calculated as the present value by discounting the total principal and interest on the borrowings by the interest rate which would be assumed if new, similar borrowings were made. Derivatives Please refer to No.10 (Note 2) Financial instruments whose fair value is extremely difficult to determine. December 31, 2010 Millions of yen Thousands of U.S. dollars Investments in unconsolidated subsidiaries and affiliates................................................................................ \2,260 $27,742 Other securities: Unlisted securities............................................................... 1,142 14,024 Other............................................................................................ 357 4,383 Total.................................................................................................... \3,760 $46,151 It is extremely difficult to determine the fair value of these items, as they do not have market prices and future cash flow cannot be estimated. Therefore, they are not included in “Assets: (3) Securities and investment securities in the preceding table.” (Note 3) The redemption schedule for monetary claims, held-to-maturity securities and other securities with maturities subsequent to the consolidated balance sheet date. Millions of yen December 31, 2010 1 year or less Over 1 year to 5 years Over 5 years to 10 years Over 10 years Cash equivalents.................... \14,049 . . . Notes and accounts receivable.......... 44,495 . . . Securities and investment securities: Held-to-maturity securities............................ . . \100 . Other securities with maturities............... 9,000 . . . Total............................................... \67,544 . \100 . Thousands of U.S. dollars December 31, 2010 1 year or less Over 1 year to 5 years Over 5 years to 10 years Over 10 years Cash equivalents.................... $172,403 . . . Notes and accounts receivable.......... 546,026 . . . Securities and investment securities: Held-to-maturity securities............................ . . $1,227 . Other securities with maturities............... 110,442 . . . Total............................................... $828,872 . $1,227 . Overdue loans receivable whose timing of collection is uncertain are not included in the table above. (Note 4) Please refer to Note 11 as to the redemption schedule for long-term debt subsequent the consolidated balance sheet date. 9. Investment Securities (a) At December 31, 2010 and 2009, held-to-maturity securities for which market prices were available were summarized as follows: Millions of yen December 31, 2010 Carrying value Fair value Unrealized gain (loss) Unrealized gain: Corporate bonds............................... \101 \103 \1 Unrealized loss: Corporate bonds............................... . . . Total................................................................. \101 \103 \1 Thousands of U.S. dollars December 31, 2010 Carrying value Fair value Unrealized gain (loss) Unrealized gain: Corporate bonds............................... $1,247 $1,269 $21 Unrealized loss: Corporate bonds............................... . . . Total................................................................. $1,247 $1,269 $21 Toagosei Co., Ltd. 35