2. Fair value of financial instruments The fair value and carrying value of financial instruments and the difference between both values are shown below. Financial instruments whose fair value is extremely difficult to determine, are not included in the table below. (Please refer to Note 2.) Millions of yen December 31, 2012 Carrying value Fair value Difference (1) Cash and deposits ........................................ \17,096 \17,096 . (2) Notes and accounts receivable ........... 43,434 43,434 . (3) Securities and investment securities: (i) Held-to-maturity securities ................ 100 100 \ 0 (ii) Available-for-sale securities.............. 24,977 24,977 . Total assets .............................................................. 85,608 85,609 0 (1) Notes and accounts payable................. 14,878 14,878 . (2) Short-term bank loans ............................... 6,234 6,234 . (3) Long-term debt ............................................. 5,986 6,031 44 Total liabilities ........................................................ \27,099 \27,144 \44 Total derivative transactions ......................... . . . Thousands of U.S. dollars December 31, 2012 Carrying value Fair value Difference (1) Cash and deposits ........................................ $197,467 $197,467 . (2) Notes and accounts receivable ........... 501,667 501,667 . (3) Securities and investment securities: (i) Held-to-maturity securities ................ 1,158 1,163 $ 4 (ii) Available-for-sale securities.............. 288,487 288,487 . Total assets .............................................................. 988,782 988,787 4 (1) Notes and accounts payable................. 171,849 171,849 . (2) Short-term bank loans ............................... 72,004 72,004 . (3) Long-term debt ............................................. 69,146 69,664 518 Total liabilities ........................................................ $312,999 $313,518 $518 Total derivative transactions ......................... . . . Millions of yen December 31, 2011 Carrying value Fair value Difference (1) Cash and deposits ........................................ \14,467 \14,467 . (2) Notes and accounts receivable ........... 42,182 42,182 . (3) Securities and investment securities: (i) Held-to-maturity securities ................ 101 101 \ 0 (ii) Available-for-sale securities.............. 19,733 19,733 . Total assets .............................................................. 76,483 76,484 0 (1) Notes and accounts payable................. 14,983 14,983 . (2) Short-term bank loans ............................... 3,274 3,274 . (3) Long-term debt ............................................. 9,323 9,405 81 Total liabilities ........................................................ \27,582 \27,663 \81 Total derivative transactions ......................... . . . (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 available-for-sale 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. 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. Derivative transactions Please refer to Note 21. (Note 2) Financial instruments whose fair value is extremely difficult to determine. Millions of yen Thousands of U.S. dollars 2012 2011 2012 Investments in unconsolidated subsidiaries and affiliates ...................... \2,281 \2,345 $26,354 Available-for-sale securities: Unlisted securities................................. 947 1,139 10,948 Other ............................................................. 9 325 108 Total ..................................................................... \3,239 \3,811 $37,411 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 available-for-sale securities with maturities subsequent to the consolidated balance sheet date. Millions of yen December 31, 2012 1 year or less Over 1 year to 5 years Over 5 years to 10 years Over 10 years Cash equivalents ................... \17,088 . . . Notes and accounts receivable.......... 43,434 . . . Securities and investment securities: Held-to-maturity securities ........................... . . \100 . Available-for-sale securities with maturities .............. 14,000 . . . Total .............................................. \74,523 . \100 . Notes to Consolidated Financial Statements 42 Annual Report 2012