UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934

KOMATSU LTD.

Translation of registrant’s name into English

3-6 Akasaka 2-chome, Minato-ku, Tokyo, Japan
Address of principal executive office

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    

 

 

INFORMATION TO BE INCLUDED IN REPORT

1. Quarterly Report for the Third Quarter of the 142nd Fiscal Year filed on February 9, 2011

On February 9, 2011, the registrant filed its Quarterly Report (Shihanki Houkokusho) with the Director of the Kanto Local Finance Bureau of Japan pursuant to the Financial Instruments and Exchange Act of Japan. This Quarterly Report contains, among other information, Quarterly Consolidated Financial Statements for the nine months period ended December 31, 2010 and the three months period ended December 31, 2010.

Material information in the report, other than the Quarterly Consolidated Financial Statements, has already been reported by the registrant in its press release dated January 27, 2011, a copy of which was submitted under cover of Form 6-K on January 28, 2011 by the registrant.

Attached is an English translation of the registrant’s Quarterly Consolidated Financial Statements for the nine months period ended December 31, 2010 and the three months period ended December 31, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

[Quarterly Consolidated Financial Statements]

Consolidated Balance Sheets (Unaudited)

Komatsu Ltd. and Consolidated Subsidiaries
December 31, 2010 and March 31, 2010

		December 31, 2010								March 31, 2010
						Component								Component
		Millions of yen				ratio (%)				Millions of yen				ratio (%)
Assets
Current assets
Cash and cash equivalents		¥	84,353							¥	82,429
Time deposits			606								1,132
Trade notes and accounts receivable, less allowance for doubtful receivables of ¥13,725 million at December 31, 2010 and ¥14,941 million at March 31, 2010			442,298								447,693
Inventories (Note 3)			458,105								396,416
Deferred income taxes and other current assets (Notes 8, 9 and 10)			127,099								112,451
Total current assets			1,112,461				55.6				1,040,121				53.1
Long-term trade receivables			157,681				7.9				150,972				7.7
Investments
Investments in and advances to affiliated companies			24,689								24,002
Investment securities (Notes 4, 9 and 10)			57,579								60,467
Other			2,979								2,399
Total investments			85,247				4.3				86,868				4.4
Property, plant and equipment—less accumulated depreciation of ¥633,806 million at December 31, 2010 and ¥631,973 million at March 31, 2010			510,619				25.5				525,100				26.8
Goodwill			28,934				1.4				29,570				1.5
Other intangible assets			56,931				2.9				61,729				3.2
Deferred income taxes and other assets (Notes 8, 9 and 10)			48,073				2.4				64,695				3.3
		¥	1,999,946				100.0			¥	1,959,055				100.0

The accompanying Notes to Quarterly Consolidated Financial Statements are an integral part of these balance sheets.

		December 31, 2010								March 31, 2010
						Component								Component
		Millions of yen				ratio (%)				Millions of yen				ratio (%)
Liabilities and Equity
Current liabilities
Short-term debt		¥	111,555							¥	123,438
Current maturities of long-term debt (Notes 9 and 10)			99,599								105,956
Trade notes, bills and accounts payable			279,014								207,024
Income taxes payable			20,388								22,004
Deferred income taxes and other current liabilities (Notes 8, 9 and 10)			183,801								183,324
Total current liabilities			694,357				34.7				641,746				32.7
Long-term liabilities
Long-term debt (Notes 9 and 10)			329,857								356,985
Liability for pension and retirement benefits			41,653								46,354
Deferred income taxes and other liabilities (Notes 8, 9 and 10)			35,067								37,171
Total long-term liabilities			406,577				20.3				440,510				22.5
Total liabilities			1,100,934				55.0				1,082,256				55.2
Commitments and contingent liabilities (Note 7)			—								—
Equity
Komatsu Ltd. shareholders’ equity
Common stock:
Authorized 3,955,000,000 shares at December 31, 2010 and at March 31, 2010
Issued 998,744,060 shares at December 31, 2010 and at March 31, 2010			67,870								67,870
Outstanding 967,784,233 shares at December 31, 2010 and 968,039,976 shares at March 31, 2010
Capital surplus			140,561								140,421
Retained earnings:
Appropriated for legal reserve			33,243								31,983
Unappropriated			798,274								724,090
Accumulated other comprehensive income (loss) (Note 4)			(151,154	)							(95,634	)
Treasury stock at cost, 30,959,827 shares at December 31, 2010 and 30,704,084 shares at March 31, 2010			(35,268	)							(34,755	)
Total Komatsu Ltd. shareholders’ equity			853,526				42.7				833,975				42.6
Noncontrolling interests			45,486				2.3				42,824				2.2
Total equity			899,012				45.0				876,799				44.8
		¥	1,999,946				100.0			¥	1,959,055				100.0

The accompanying Notes to Quarterly Consolidated Financial Statements are an integral part of these balance sheets.

Consolidated Statements of Income (Unaudited)

Komatsu Ltd. and Consolidated Subsidiaries
Nine months ended December 31, 2010 and 2009

		Nine months ended								Nine months ended
		December 31, 2010								December 31, 2009
						Component								Component
		Millions of yen				ratio (%)				Millions of yen				ratio (%)
Net sales		¥	1,301,973				100.0			¥	1,003,927				100.0
Cost of sales			946,407				72.7				780,516				77.7
Selling, general and administrative expenses (Note 5)			190,488				14.6				181,204				18.0
Other operating income (expenses), net			(2,331	)			(0.2	)			(6,110	)			(0.6	)
Operating income			162,747				12.5				36,097				3.6
Other income (expenses), net			(3,844	)							(1,409	)
Interest and dividend income			3,012				0.2				5,215				0.5
Interest expense			(4,651	)			(0.4	)			(7,276	)			(0.7	)
Other, net (Notes 4, 8 and 10)			(2,205	)			(0.2	)			652				0.1
Income before income taxes and equity in earnings of affiliated companies			158,903				12.2				34,688				3.5
Income taxes
Current			31,743								24,169
Deferred			23,907								(12,330	)
Total			55,650				4.3				11,839				1.2
Income before equity in earnings of affiliated companies			103,253				7.9				22,849				2.3
Equity in earnings of affiliated companies			2,399				0.2				556				0.1
Net income			105,652				8.1				23,405				2.3
Less net income attributable to noncontrolling interests			(5,030	)			(0.4	)			(5,050	)			(0.5	)
Net income attributable to Komatsu Ltd.		¥	100,622				7.7			¥	18,355				1.8

		Yen
		Nine months ended				Nine months ended
		December 31, 2010				December 31, 2009
Net income attributable to Komatsu Ltd. per share (Note 6)
Basic		¥	103.97			¥	18.96
Diluted			103.91				18.95
Cash dividends per share (Note 12)			26.00				26.00

The accompanying Notes to Quarterly Consolidated Financial Statements are an integral part of these statements.

Three months ended December 31, 2010 and 2009

		Three months ended								Three months ended
		December 31, 2010								December 31, 2009
						Component								Component
		Millions of yen				ratio (%)				Millions of yen				ratio (%)
Net sales		¥	442,210				100.0			¥	357,964				100.0
Cost of sales			316,530				71.6				275,434				76.9
Selling, general and administrative expenses (Note 5)			65,738				14.9				61,721				17.2
Other operating income (expenses), net			(1,107	)			(0.3	)			(4,497	)			(1.3	)
Operating income			58,835				13.3				16,312				4.6
Other income (expenses), net			(43	)							(76	)
Interest and dividend income			683				0.2				1,250				0.3
Interest expense			(1,362	)			(0.3	)			(2,151	)			(0.6	)
Other, net (Notes 4, 8 and 10)			636				0.1				825				0.2
Income before income taxes and equity in earnings of affiliated companies			58,792				13.3				16,236				4.5
Income taxes
Current			13,857								8,681
Deferred			8,286								(3,485	)
Total			22,143				5.0				5,196				1.5
Income before equity in earnings of affiliated companies			36,649				8.3				11,040				3.1
Equity in earnings of affiliated companies			1,201				0.3				515				0.1
Net income			37,850				8.6				11,555				3.2
Less net income attributable to noncontrolling interests			(992	)			(0.2	)			(1,398	)			(0.4	)
Net income attributable to Komatsu Ltd.		¥	36,858				8.3			¥	10,157				2.8

		Yen
		Three months ended				Three months ended
		December 31, 2010				December 31, 2009
Net income attributable to Komatsu Ltd. per share (Note 6)
Basic		¥	38.09			¥	10.49
Diluted			38.06				10.49
Cash dividends per share (Note 12)			18.00				8.00

The accompanying Notes to Quarterly Consolidated Financial Statements are an integral part of these statements.

Consolidated Statements of Equity (Unaudited)

Komatsu Ltd. and Consolidated Subsidiaries

Nine months ended December 31, 2010

		Millions of yen
										Retained earnings								Accumulated								Total Komatsu
										Appropriated								other								Ltd.
		Common				Capital				for legal								comprehensive				Treasury				shareholders’				Noncontrolling				Total
		stock				surplus				reserve				Unappropriated				income (loss)				stock				equity				interests				equity
Balance at March 31, 2010		¥	67,870			¥	140,421			¥	31,983			¥	724,090			¥	(95,634	)		¥	(34,755	)		¥	833,975			¥	42,824			¥	876,799
Cash dividends (Note 12)															(25,178	)											(25,178	)			(975	)			(26,153	)
Transfer to retained earnings appropriated for legal reserve											1,260				(1,260	)											—								—
Other changes																											—				1,910				1,910
Comprehensive income(loss)
Net income															100,622												100,622				5,030				105,652
Other comprehensive income(loss), for the period, net of tax
Foreign currency translation adjustments																			(56,935	)							(56,935	)			(3,382	)			(60,317	)
Net unrealized holding gains (losses) on securities available for sale																			274								274				—				274
Pension liability adjustments																			418								418				—				418
Net unrealized holding gains (losses) on derivative instruments (Note 8)																			723								723				79				802
Comprehensive income (loss)																											45,102				1,727				46,829
Issuance and exercise of stock acquisition rights (Note 5)							133																				133								133
Purchase of treasury stock																							(572	)			(572	)							(572	)
Sales of treasury stock							7																59				66								66
Balance at December 31, 2010		¥	67,870			¥	140,561			¥	33,243			¥	798,274			¥	(151,154	)		¥	(35,268	)		¥	853,526			¥	45,486			¥	899,012

Nine months ended December 31, 2009

		Millions of yen
										Retained earnings								Accumulated								Total Komatsu
										Appropriated								other								Ltd.
		Common				Capital				for legal								comprehensive				Treasury				shareholders’				Noncontrolling				Total
		stock				surplus				reserve				Unappropriated				income (loss)				stock				equity				interests				equity
Balance at March 31, 2009		¥	67,870			¥	140,092			¥	28,472			¥	719,222			¥	(105,744	)		¥	(34,971	)		¥	814,941			¥	33,393			¥	848,334
Cash dividends															(25,180	)											(25,180	)			(1,735	)			(26,915	)
Transfer to retained earnings appropriated for legal reserve											2,688				(2,688	)											—								—
Other changes																											—				1,514				1,514
Comprehensive income(loss)
Net income															18,355												18,355				5,050				23,405
Other comprehensive income(loss), for the period, net of tax
Foreign currency translation adjustments																			(2,018	)							(2,018	)			1,431				(587	)
Net unrealized holding gains (losses) on securities available for sale																			1,244								1,244				—				1,244
Pension liability adjustments																			2,326								2,326				1				2,327
Net unrealized holding gains (losses) on derivative instruments (Note 8)																			640								640				678				1,318
Comprehensive income(loss)																											20,547				7,160				27,707
Issuance and exercise of stock acquisition rights (Note 5)							413																				413								413
Purchase of treasury stock																							(22	)			(22	)							(22	)
Sales of treasury stock							(84	)															256				172								172
Balance at December 31, 2009		¥	67,870			¥	140,421			¥	31,160			¥	709,709			¥	(103,552	)		¥	(34,737	)		¥	810,871			¥	40,332			¥	851,203

The accompanying Notes to Quarterly Consolidated Financial Statements are an integral part of these statements.

Consolidated Statements of Cash Flows (Unaudited)

Komatsu Ltd. and Consolidated Subsidiaries
Nine months ended December 31, 2010 and 2009

		Millions of yen
		Nine months ended				Nine months ended
		December 31, 2010				December 31, 2009
Operating activities
Net income		¥	105,652			¥	23,405
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			66,128				67,752
Deferred income taxes			23,907				(12,330	)
Net loss (gain) from sale of investment securities and subsidiaries			(72	)			(807	)
Net loss (gain) on sale of property			(1,946	)			(510	)
Loss on disposal of fixed assets			948				1,313
Pension and retirement benefits, net			(4,142	)			(1,884	)
Changes in assets and liabilities:
Decrease (increase) in trade receivables			(48,750	)			(28,410	)
Decrease (increase) in inventories			(94,511	)			86,846
Increase (decrease) in trade payables			78,182				(30,792	)
Increase (decrease) in income taxes payable			(126	)			(2,721	)
Other, net			7,659				13,457
Net cash provided by (used in) operating activities			132,929				115,319
Investing activities
Capital expenditures			(74,383	)			(69,103	)
Proceeds from sale of property			6,317				11,077
Proceeds from sale of available for sale investment securities			1,843				720
Purchases of available for sale investment securities			(493	)			(3,465	)
Proceeds from sale of subsidiaries and equity investees, net of cash disposed			—				661
Acquisition of subsidiaries and equity investees, net of cash acquired			758				638
Collection of loan receivables			1,556				10,512
Disbursement of loan receivables			(918	)			(1,116	)
Decrease (increase) in time deposits			407				(521	)
Net cash provided by (used in) investing activities			(64,913	)			(50,597	)
Financing activities
Proceeds from long-term debt			50,162				104,021
Repayments on long-term debt			(50,392	)			(41,069	)
Increase (decrease) in short-term debt, net			(10,339	)			(70,869	)
Repayments of capital lease obligations			(24,034	)			(25,876	)
Sale (purchase) of treasury stock, net			30				150
Dividends paid			(25,178	)			(25,180	)
Other, net			121				(1,752	)
Net cash provided by (used in) financing activities			(59,630	)			(60,575	)
Effect of exchange rate change on cash and cash equivalents			(6,462	)			(1,219	)
Net increase (decrease) in cash and cash equivalents			1,924				2,928
Cash and cash equivalents, beginning of year			82,429				90,563
Cash and cash equivalents, end of period		¥	84,353			¥	93,491

The accompanying Notes to Quarterly Consolidated Financial Statements are an integral part of these statements.

Notes to Quarterly Consolidated Financial Statements (Unaudited)

1. Basis of Quarterly Financial Statement Presentation and Summary of Significant Accounting Policies

Basis of Quarterly Financial Statement Presentation

Komatsu Ltd. (“Company”) and consolidated subsidiaries (together “Komatsu”) prepare and present the accompanying quarterly consolidated financial statements in accordance with accounting principles generally accepted in the United States of America.

Summary of Significant Accounting Policies

There is no material change for Summary of Significant Accounting Policies stated in the annual report for the year ended March 31, 2010.

2. Supplemental Cash Flow Information

Additional cash flow information and noncash investing and financing activities for the nine months ended December 31, 2010 and 2009 are as follows:

		Millions of yen
		Nine months ended				Nine months ended
		December 31, 2010				December 31, 2009
Additional cash flow information:
Interest paid		¥	4,398			¥	7,569
Income taxes paid			38,738				6,544
Noncash investing and financing activities:
Capital lease obligations incurred		¥	2,147			¥	12,663

3. Inventories

At December 31, 2010 and at March 31, 2010, inventories comprised the following:

		Millions of yen
		December 31,				March 31,
		2010				2010
Finished products, including finished parts held for sale		¥	292,721			¥	254,157
Work in process			123,846				102,096
Materials and supplies			41,538				40,163
Total		¥	458,105			¥	396,416

4. Investment Securities

Investment securities at December 31, 2010 and at March 31, 2010 primarily consisted of securities available for sale.

The cost, gross unrealized holding gains and losses, and fair value for such investment securities by major security types at December 31, 2010 and at March 31, 2010 are as follows:

		Millions of yen
						Gross unrealized holding
		Cost				Gains				Losses				Fair value
December 31, 2010
Investment securities:
Marketable equity securities available for sale		¥	23,172			¥	22,739			¥	39			¥	45,872
Other investment securities at cost			11,707
		¥	34,879

		Millions of yen
						Gross unrealized holding
		Cost				Gains				Losses				Fair value
March 31, 2010
Investment securities:
Marketable equity securities available for sale		¥	24,988			¥	22,235			¥	45			¥	47,178
Other investment securities at cost			13,289
		¥	38,277

Other investment securities primarily include non-marketable equity securities. The fair value of other investment securities was not estimated as it was not practicable to estimate the fair value of investments and no significant events or changes that might have effected the fair value of those investments were observed.

Unrealized holding gains and losses are included as a component of accumulated other comprehensive income (loss) until realized.

Proceeds from the sales of investment securities available for sale were ¥1,843 million and ¥720 million for the nine months ended December 31, 2010 and 2009, respectively.

Impairment losses and net realized gains or losses from sale of investment securities available for sale during the nine months ended December 31, 2010 and 2009 amounted to gains of ¥72 million and gains of ¥807 million, respectively. Impairment losses and net realized gains or losses from sale of investment securities available for sale during the three months ended December 31, 2010 and 2009 amounted to gains of ¥162 million and gains of ¥555 million, respectively. Such gains were included in other income (expenses), net in the accompanying consolidated statements of income.

The cost of the investment securities sold was computed based on the average-cost method.

5. Stock Option Plan

The Company has two types of stock option plans for directors and certain employees and certain directors of subsidiaries.

The stock option plans resolved by the Board of Directors’ meetings held in and before June 2010

The right to purchase treasury shares is granted at a predetermined price to directors and certain employees and certain directors of subsidiaries. The purchase price is the amount calculated by taking the average of the closing prices applicable to ordinary transactions of shares of the Company on the Tokyo Stock Exchange on all days for a month immediately preceding the month in which the date of grant of the right falls and multiplying by 1.05, provided that the exercise price shall not be less than the closing price of the shares of the Company on the Tokyo Stock Exchange on the date of the grant.

Based on the resolutions of the shareholders’ meeting on June 22, 2007 and the Board of Directors on July 14, 2009, the Company issued 239 rights of its share acquisition rights to directors during the year ended March 31, 2010. The Company also issued 403 rights of its share acquisition rights to certain employees and certain directors of subsidiaries during the year ended March 31, 2010 based on the resolutions of the shareholders’ meeting on June 24, 2009 and the Board of Directors on July 14, 2009. The options vest 100% on each of the grant dates and are exercisable from September 1, 2010.

The stock option plans resolved by the Board of Directors’ meetings held in July 2010

The right to purchase treasury shares is granted at an exercise price of ¥1 per share to directors and certain employees and certain directors of subsidiaries.

Based on the resolutions of the shareholders’ meeting on June 23, 2010 and the Board of Directors on July 13, 2010, the Company issued 210 rights of its share acquisition rights to directors and 558 rights of its share acquisition rights to certain employees and certain directors of subsidiaries during the year ending March 31, 2011. The options vest 100% on each of the grant dates and are exercisable from August 2, 2013.

Komatsu recognizes compensation expense using the fair value method. Compensation expenses during the nine months ended December 31, 2010 and 2009 were ¥137 million and ¥413 million, respectively, and were recorded in selling, general and administrative expenses. Compensation expenses after tax during the nine months ended December 31, 2010 and 2009 were ¥82 million and ¥246 million, respectively. Compensation expenses during the three months ended December 31, 2010 and 2009 were ¥82 million and ¥310 million, respectively, and were recorded in selling, general and administrative expenses. Compensation expenses after tax during the three months ended December 31, 2010 and 2009 were ¥49 million and ¥184 million, respectively.

6. Net Income Attributable to Komatsu Ltd. per Share

A reconciliation of the numerators and denominators of the basic and diluted net income attributable to Komatsu Ltd. per share computations is as follows:

		Millions of yen
		Nine months ended				Nine months ended
		December 31, 2010				December 31, 2009
Net income attributable to Komatsu Ltd.		¥	100,622			¥	18,355

		Number of shares
		Nine months ended				Nine months ended
		December 31, 2010				December 31, 2009
Weighted average common shares outstanding, less treasury stock			967,788,140				968,000,628
Dilutive effect of:
Stock options			595,770				414,917
Weighted average diluted common shares outstanding			968,383,910				968,415,545

		Yen
		Nine months ended				Nine months ended
		December 31, 2010				December 31, 2009
Net income attributable to Komatsu Ltd.:
Basic		¥	103.97			¥	18.96
Diluted		¥	103.91			¥	18.95

		Millions of yen
		Three months ended				Three months ended
		December 31, 2010				December 31, 2009
Net income attributable to Komatsu Ltd.		¥	36,858			¥	10,157

		Number of shares
		Three months ended				Three months ended
		December 31, 2010				December 31, 2009
Weighted average common shares outstanding, less treasury stock			967,776,292				968,046,436
Dilutive effect of:
Stock options			765,084				483,967
Weighted average diluted common shares outstanding			968,541,376				968,530,403

		Yen
		Three months ended				Three months ended
		December 31, 2010				December 31, 2009
Net income attributable to Komatsu Ltd.:
Basic		¥	38.09			¥	10.49
Diluted		¥	38.06			¥	10.49

7. Contingent Liabilities

At December 31, 2010 and at March 31, 2010, Komatsu was contingently liable for discounted and transferred receivables on a recourse basis with the financial institutions of ¥4,840 million and ¥9,850 million, respectively.

Komatsu provides guarantees to third parties of loans of the employees, affiliated companies, customers and other companies. The guarantees relating to the employees are mainly made for their housing loans. The guarantees of loans relating to the affiliated companies, customers and other companies are made to enhance the credit of those companies.

For each guarantee provided, Komatsu would have to perform under a guarantee, if the borrower defaults on a payment within the contract terms. The contract terms are from 10 years to 30 years in the case of employees with housing loans, and from 1 year to 10 years in the case of loans relating to the affiliated companies, customers and other companies. The maximum amount of undiscounted payments Komatsu would have had to make in the event of default was ¥88,723 million and ¥88,379 million at December 31, 2010 and at March 31, 2010, respectively. The fair value of the liabilities recognized for Komatsu’s obligations as guarantors under those guarantees at December 31, 2010 was insignificant. Certain of those guarantees were secured by collateral and insurance issued to Komatsu.

Management of Komatsu believes that losses from those contingent liabilities, if any, would not have a material effect on the consolidated financial statements.

Komatsu is involved in certain legal actions and claims arising in the ordinary course of its business. It is the opinion of management and legal counsel that such litigation and claims will be resolved without material effect on Komatsu’s financial statements.

Komatsu has business activities with customers, dealers and associates around the world and its trade receivables from such parties are well diversified to minimize concentrations of credit risks. Management does not anticipate incurring losses on its trade receivables in excess of established allowances.

8. Derivative Financial Instruments

Notional principal amounts of derivative financial instruments outstanding at December 31, 2010 and at March 31, 2010 are as follows:

		Millions of yen
		December 31,				March 31,
		2010				2010
Forwards and options:
Sale of foreign currencies		¥	81,391			¥	40,209
Purchase of foreign currencies			73,748				48,809
Option contracts (purchased)			204				949
Interest rate swaps, cross-currency swaps and interest rate cap agreements			163,080				184,487

Fair values of derivative instruments at December 31, 2010 and at March 31, 2010 on the consolidated balance sheets are as follows:

Millions of yen

December 31, 2010

Derivative instruments

Derivative Assets

Derivative Liabilities

designated

Location on the consolidated

Estimated

Location on the consolidated

Estimated

as hedging instruments

Balance Sheets

fair value

Balance Sheets

fair value

Forwards contracts

Deferred income taxes and

Deferred income taxes and

other current assets

¥

1,435

other current liabilities

¥

—

Interest rate swaps, cross-currency swaps and interest rate cap agreements

Deferred income taxes and other current assets

211

Deferred income taxes and other current liabilities

454

Deferred income taxes and

Deferred income taxes and

other assets

—

other liabilities

—

Total

¥

1,646

¥

454

Derivative Assets

Derivative Liabilities

Undesignated derivative

Location on the consolidated

Estimated

Location on the consolidated

Estimated

instruments

Balance Sheets

fair value

Balance Sheets

fair value

Forwards contracts

Deferred income taxes and

Deferred income taxes and

other current assets

¥

641

other current liabilities

¥

2,033

Deferred income taxes and

Deferred income taxes and

other assets

124

other liabilities

5

Option contracts

Deferred income taxes and

Deferred income taxes and

other current assets

5

other current liabilities

—

Interest rate swaps, cross-currency swaps and interest rate cap agreements

Deferred income taxes and other current assets

4,920

Deferred income taxes and other current liabilities

452

Deferred income taxes and

Deferred income taxes and

other assets

10,232

other liabilities

276

Total

¥

15,922

¥

2,766

Total Derivative Instruments

¥

17,568

¥

3,220

Millions of yen

March 31, 2010

Derivative instruments

Derivative Assets

Derivative Liabilities

designated

Location on the consolidated

Estimated

Location on the consolidated

Estimated

as hedging instruments

Balance Sheets

fair value

Balance Sheets

fair value

Forwards contracts

Deferred income taxes and other current assets

¥

73

Deferred income taxes and other current liabilities

¥

830

Interest rate swaps, cross-currency swaps and interest rate cap agreements

Deferred income taxes and other current assets

354

Deferred income taxes and other current liabilities

734

Deferred income taxes and other assets

99

Deferred income taxes and other liabilities

—

Total

¥

526

¥

1,564

Derivative Assets

Derivative Liabilities

Undesignated derivative

Location on the consolidated

Estimated

Location on the consolidated

Estimated

instruments

Balance Sheets

fair value

Balance Sheets

fair value

Forwards contracts

Deferred income taxes and other current assets

¥

90

Deferred income taxes and other current liabilities

¥

1,248

Option contracts

Deferred income taxes and other current assets

18

Deferred income taxes and other current liabilities

—

Interest rate swaps, cross-currency swaps and interest rate cap agreements

Deferred income taxes and other current assets

1,730

Deferred income taxes and other current liabilities

915

Deferred income taxes and other assets

6,989

Deferred income taxes and other liabilities

901

Total

¥

8,827

¥

3,064

Total Derivative Instruments

¥

9,353

¥

4,628

The effects of derivative instruments on the consolidated statements of income for the nine months ended December 31, 2010 and 2009 are as follows:

Derivative instruments designated as fair value hedging relationships

Millions of yen

Nine months ended

December 31, 2010

Location of

Amount of

Location of

Amount of

gains (losses)

gains (losses)

gains (losses)

gains (losses)

recognized in income

recognized in income

recognized in income

recognized in income

on derivatives

on derivatives

on hedged items

on hedged items

Interest rate swaps, cross-currency swaps and interest rate cap agreements

Other income (expenses), net: Other, net

¥

—

Other income (expenses), net: Other, net

¥

—

Total

¥

—

¥

—

Millions of yen

Nine months ended

December 31, 2009

Location of

Amount of

Location of

Amount of

gains (losses)

gains (losses)

gains (losses)

gains (losses)

recognized in income

recognized in income

recognized in income

recognized in income

on derivatives

on derivatives

on hedged items

on hedged items

Interest rate swaps, cross-currency swaps and interest rate cap agreements

Other income (expenses), net: Other, net

¥

2,271

Other income (expenses), net: Other, net

¥

(494

)

Total

¥

2,271

¥

(494

)