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 Second Quarter of the 142nd Fiscal Year filed on November 11, 2010

On November 11, 2010, 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 six months period ended September 30, 2010 and the three months period ended September 30, 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 October 28, 2010, a copy of which was submitted under cover of Form 6-K on October 29, 2010 by the registrant.

Attached is an English translation of the registrant’s Quarterly Consolidated Financial Statements for the six months period ended September 30, 2010 and the three months period ended September 30, 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.

		KOMATSU LTD.
		(Registrant)
Date: November 12, 2010		By:		/s/ Kenji Kinoshita   Kenji Kinoshita
				Director and Senior Executive Officer

[Quarterly Consolidated Financial Statements]

Consolidated Balance Sheets (Unaudited)

Komatsu Ltd. and Consolidated Subsidiaries

September 30, 2010 and March 31, 2010

		September 30, 2010								March 31, 2010
						Component								Component
		Millions of yen				ratio (%)				Millions of yen				ratio (%)
Assets
Current assets
Cash and cash equivalents		¥	90,647							¥	82,429
Time deposits			595								1,132
Trade notes and accounts receivable, less allowance for doubtful receivables of ¥14,013 million at September 30, 2010 and ¥14,941 million at March 31, 2010			408,752								447,693
Inventories (Note 3)			412,891								396,416
Deferred income taxes and other current assets (Notes 8, 9 and 10)			124,412								112,451
Total current assets			1,037,297				54.0				1,040,121				53.1
Long-term trade receivables			161,007				8.4				150,972				7.7
Investments
Investments in and advances to affiliated companies			23,710								24,002
Investment securities (Notes 4, 9 and 10)			55,892								60,467
Other			2,678								2,399
Total investments			82,280				4.3				86,868				4.4
Property, plant and equipment —less accumulated depreciation of ¥620,852 million at September 30, 2010 and ¥631,973 million at March 31, 2010			499,542				26.0				525,100				26.8
Goodwill			28,623				1.5				29,570				1.5
Other intangible assets			58,824				3.0				61,729				3.2
Deferred income taxes and other assets (Notes 8, 9 and 10)			54,932				2.8				64,695				3.3
		¥	1,922,505				100.0			¥	1,959,055				100.0

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

		September 30, 2010								March 31, 2010
						Component								Component
		Millions of yen				ratio (%)				Millions of yen				ratio (%)
Liabilities and Equity
Current liabilities
Short-term debt		¥	84,137							¥	123,438
Current maturities of long-term debt (Notes 9 and 10)			116,436								105,956
Trade notes, bills and accounts payable			248,449								207,024
Income taxes payable			14,910								22,004
Deferred income taxes and other current liabilities (Notes 8, 9 and 10)			170,638								183,324
Total current liabilities			634,570				33.0				641,746				32.7
Long-term liabilities
Long-term debt (Notes 9 and 10)			325,354								356,985
Liability for pension and retirement benefits			43,339								46,354
Deferred income taxes and other liabilities (Notes 8, 9 and 10)			33,003								37,171
Total long-term liabilities			401,696				20.9				440,510				22.5
Total liabilities			1,036,266				53.9				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 September 30, 2010 and at March 31, 2010
Issued 998,744,060 shares at September 30, 2010 and at March 31, 2010			67,870								67,870
Outstanding 967,762,273 shares at September 30, 2010 and 968,039,976 shares at March 31, 2010
Capital surplus			140,476								140,421
Retained earnings:
Appropriated for legal reserve			32,726								31,983
Unappropriated			779,362								724,090
Accumulated other comprehensive income (loss) (Note 4)			(142,174	)							(95,634	)
Treasury stock at cost, 30,981,787 shares at September 30, 2010 and 30,704,084 shares at March 31, 2010			(35,283	)							(34,755	)
Total Komatsu Ltd. shareholders’ equity			842,977				43.8				833,975				42.6
Noncontrolling interests			43,262				2.3				42,824				2.2
Total equity			886,239				46.1				876,799				44.8
		¥	1,922,505				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
Six months ended September 30, 2010 and 2009

		Six months ended								Six months ended
		September 30, 2010								September 30, 2009
						Component								Component
		Millions of yen				ratio (%)				Millions of yen				ratio (%)
Net sales		¥	859,763				100.0			¥	645,963				100.0
Cost of sales			629,877				73.3				505,082				78.2
Selling, general and administrative expenses (Note 5)			124,750				14.5				119,483				18.5
Other operating income (expenses), net			(1,224	)			(0.1	)			(1,613	)			(0.2	)
Operating income			103,912				12.1				19,785				3.1
Other income (expenses), net			(3,801	)							(1,333	)
Interest and dividend income			2,329				0.3				3,965				0.6
Interest expense			(3,289	)			(0.4	)			(5,125	)			(0.8	)
Other, net (Notes 4, 8 and 10)			(2,841	)			(0.3	)			(173	)			(0.0	)
Income before income taxes and equity in earnings of affiliated companies			100,111				11.6				18,452				2.9
Income taxes
Current			17,886								15,488
Deferred			15,621								(8,845	)
Total			33,507				3.9				6,643				1.0
Income before equity in earnings of affiliated companies			66,604				7.7				11,809				1.8
Equity in earnings of affiliated companies			1,198				0.1				41				0.0
Net income			67,802				7.9				11,850				1.8
Less net income attributable to noncontrolling interests			(4,038	)			(0.5	)			(3,652	)			(0.6	)
Net income attributable to Komatsu Ltd.		¥	63,764				7.4			¥	8,198				1.3

		Yen
		Six months ended				Six months ended
		September 30, 2010				September 30, 2009
Net income attributable to Komatsu Ltd. per share (Note 6)
Basic		¥	65.89			¥	8.47
Diluted			65.85				8.47
Cash dividends per share (Note 12)			8.00				18.00

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

Three months ended September 30, 2010 and 2009

		Three months ended								Three months ended
		September 30, 2010								September 30, 2009
						Component								Component
		Millions of yen				ratio (%)				Millions of yen				ratio (%)
Net sales		¥	412,623				100.0			¥	325,535				100.0
Cost of sales			300,021				72.7				252,609				77.6
Selling, general and administrative expenses (Note 5)			61,803				15.0				59,997				18.4
Other operating income (expenses), net			(962	)			(0.2	)			(1,417	)			(0.4	)
Operating income			49,837				12.1				11,512				3.5
Other income (expenses), net			170								(1,788	)
Interest and dividend income			1,308				0.3				2,106				0.6
Interest expense			(1,620	)			(0.4	)			(2,394	)			(0.7	)
Other, net (Notes 4, 8 and 10)			482				0.1				(1,500	)			(0.5	)
Income before income taxes and equity in earnings of affiliated companies			50,007				12.1				9,724				3.0
Income taxes
Current			8,728								7,772
Deferred			7,313								(3,310	)
Total			16,041				3.9				4,462				1.4
Income before equity in earnings of affiliated companies			33,966				8.2				5,262				1.6
Equity in earnings of affiliated companies			557				0.1				142				0.0
Net income			34,523				8.4				5,404				1.7
Less net income attributable to noncontrolling interests			(1,456	)			(0.4	)			(1,969	)			(0.6	)
Net income attributable to Komatsu Ltd.		¥	33,067				8.0			¥	3,435				1.1

		Yen
		Three months ended				Three months ended
		September 30, 2010				September 30, 2009
Net income attributable to Komatsu Ltd. per share (Note 6)
Basic		¥	34.17			¥	3.55
Diluted			34.15				3.55
Cash dividends per share (Note 12)			—				—

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

Six months ended September 30, 2010		Millions of yen

										Retained earnings								Accumulated								Total
										Appropriated								other								Komatsu 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)															(7,749	)											(7,749	)			(830	)			(8,579	)
Transfer to retained earnings appropriated for legal reserve											743				(743	)											—								—
Other changes																											—				317				317
Comprehensive income (loss)
Net income															63,764												63,764				4,038				67,802
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments																			(44,877	)							(44,877	)			(3,087	)			(47,964	)
Net unrealized holding gains (losses) on securities available for sale																			(2,398	)							(2,398	)			—				(2,398	)
Pension liability adjustments																			77								77				—				77
Net unrealized holding gains (losses) on derivative instruments (Note 8)																			658								658				—				658
Comprehensive income (loss)																											17,224				951				18,175
Issuance and exercise of stock acquisition rights (Note 5)							55																				55								55
Purchase of treasury stock																							(551	)			(551	)							(551	)
Sales of treasury stock																							23				23								23
Balance at September 30, 2010		¥	67,870			¥	140,476			¥	32,726			¥	779,362			¥	(142,174	)		¥	(35,283	)		¥	842,977			¥	43,262			¥	886,239

Six months ended September 30, 2009		Millions of yen

										Retained earnings								Accumulated								Total
										Appropriated								other								Komatsu 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															(17,431	)											(17,431	)			(1,727	)			(19,158	)
Transfer to retained earnings appropriated for legal reserve											2,309				(2,309	)											—								—
Other changes																											—				1,514				1,514
Comprehensive income (loss)
Net income															8,198												8,198				3,652				11,850
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments																			(10,953	)							(10,953	)			564				(10,389	)
Net unrealized holding gains (losses) on securities available for sale																			4,274								4,274				—				4,274
Pension liability adjustments																			1,782								1,782				—				1,782
Net unrealized holding gains (losses) on derivative instruments (Note 8)																			761								761				623				1,384
Comprehensive income (loss)																											4,062				4,839				8,901
Issuance and exercise of stock acquisition rights (Note 5)							103																				103								103
Purchase of treasury stock																							(15	)			(15	)							(15	)
Sales of treasury stock							(84	)															256				172								172
Balance at September 30, 2009		¥	67,870			¥	140,111			¥	30,781			¥	707,680			¥	(109,880	)		¥	(34,730	)		¥	801,832			¥	38,019			¥	839,851

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
Six months ended September 30, 2010 and 2009

		Millions of yen
		Six months ended				Six months ended
		September 30, 2010				September 30, 2009
Operating activities
Net income		¥	67,802			¥	11,850
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			43,432				44,427
Deferred income taxes			15,621				(8,845	)
Net loss (gain) from sale of investment securities and subsidiaries			90				(252	)
Net loss (gain) on sale of property			(1,160	)			(251	)
Loss on disposal of fixed assets			634				922
Pension and retirement benefits, net			(3,176	)			199
Changes in assets and liabilities:
Decrease (increase) in trade receivables			(11,005	)			21,396
Decrease (increase) in inventories			(42,960	)			69,679
Increase (decrease) in trade payables			47,870				(56,819	)
Increase (decrease) in income taxes payable			(6,067	)			(4,215	)
Other, net			(8,253	)			9,363
Net cash provided by (used in) operating activities			102,828				87,454
Investing activities
Capital expenditures			(42,482	)			(50,342	)
Proceeds from sale of property			5,637				7,519
Proceeds from sale of available for sale investment securities			22				74
Purchases of available for sale investment securities			(520	)			(3,505	)
Proceeds from sale of subsidiaries and equity investees, net of cash disposed			—				661
Acquisition of subsidiaries and equity investees, net of cash acquired			654				627
Collection of loan receivables			1,290				901
Disbursement of loan receivables			(576	)			(970	)
Decrease (increase) in time deposits			443				(52	)
Net cash provided by (used in) investing activities			(35,532	)			(45,087	)
Financing activities
Proceeds from long-term debt			31,266				88,685
Repayments on long-term debt			(24,059	)			(26,566	)
Increase (decrease) in short-term debt, net			(34,023	)			(61,988	)
Repayments of capital lease obligations			(18,791	)			(17,902	)
Sale (purchase) of treasury stock, net			10				157
Dividends paid			(7,749	)			(17,431	)
Other, net			(928	)			(3,199	)
Net cash provided by (used in) financing activities			(54,274	)			(38,244	)
Effect of exchange rate change on cash and cash equivalents			(4,804	)			(2,999	)
Net increase (decrease) in cash and cash equivalents			8,218				1,124
Cash and cash equivalents, beginning of year			82,429				90,563
Cash and cash equivalents, end of period		¥	90,647			¥	91,687

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 six months ended September 30, 2010 and 2009 are as follows:

		Millions of yen
		Six months ended				Six months ended
		September 30, 2010				September 30, 2009
Additional cash flow information:
Interest paid		¥	2,877			¥	5,141
Income taxes paid (refunded)			30,058				(149	)
Noncash investing and financing activities:
Capital lease obligations incurred		¥	1,183			¥	9,066

3. Inventories

At September 30, 2010 and at March 31, 2010, inventories comprised the following:

		Millions of yen
		September 30,				March 31,
		2010				2010
Finished products, including finished parts held for sale		¥	261,484			¥	254,157
Work in process			112,145				102,096
Materials and supplies			39,262				40,163
Total		¥	412,891			¥	396,416

4. Investment Securities

Investment securities at September 30, 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 September 30, 2010 and at March 31, 2010 are as follows:

		Millions of yen
						Gross unrealized holding
		Cost				Gains				Losses				Fair value
September 30, 2010
Investment securities:
Marketable equity securities available for sale		¥	24,936			¥	18,616			¥	249			¥	43,303
Other investment securities at cost			12,589
		¥	37,525

		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 ¥22 million and ¥74 million for the six months ended September 30, 2010 and 2009, respectively.

Impairment losses and net realized gains or losses from sale of investment securities available for sale during the six months ended September 30, 2010 and 2009 amounted to losses of ¥90 million and gains of ¥252 million, respectively. Impairment losses and net realized gains or losses from sale of investment securities available for sale during the three months ended September 30, 2010 and 2009 amounted to losses of ¥57 million and gains of ¥317 million, respectively. Such gains and losses 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 ending 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 ending 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 six months ended September 30, 2010 and 2009 were ¥55 million and ¥103 million, respectively, and were recorded in selling, general and administrative expenses. Compensation expenses after tax during the six months ended September 30, 2010 and 2009 were ¥33 million and ¥61 million, respectively. Compensation expenses during the three months ended September 30, 2010 and 2009 were ¥55 million and ¥103 million, respectively, and were recorded in selling, general and administrative expenses. Compensation expenses after tax during the three months ended September 30, 2010 and 2009 were ¥33 million and ¥61 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
		Six months ended				Six months ended
		September 30, 2010				September 30, 2009
Net income attributable to Komatsu Ltd.		¥	63,764			¥	8,198

		Number of shares
		Six months ended				Six months ended
		September 30, 2010				September 30, 2009
Weighted average common shares outstanding, less treasury stock			967,794,257				967,972,490
Dilutive effect of:
Stock options			494,618				373,447
Weighted average diluted common shares outstanding			968,288,875				968,345,937

		Yen
		Six months ended				Six months ended
		September 30, 2010				September 30, 2009
Net income attributable to Komatsu Ltd.:
Basic		¥	65.89			¥	8.47
Diluted		¥	65.85			¥	8.47

		Millions of yen
		Three months ended				Three months ended
		September 30, 2010				September 30, 2009
Net income attributable to Komatsu Ltd.		¥	33,067			¥	3,435

		Number of shares
		Three months ended				Three months ended
		September 30, 2010				September 30, 2009
Weighted average common shares outstanding, less treasury stock			967,755,145				968,033,505
Dilutive effect of:
Stock options			526,731				394,831
Weighted average diluted common shares outstanding			968,281,876				968,428,336

		Yen
		Three months ended				Three months ended
		September 30, 2010				September 30, 2009
Net income attributable to Komatsu Ltd.:
Basic		¥	34.17			¥	3.55
Diluted		¥	34.15			¥	3.55

7. Contingent Liabilities

 At September 30, 2010 and at March 31, 2010, Komatsu was contingently liable for discounted and transferred receivables on a recourse basis with the financial institutions of ¥3,717 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 ¥91,973 million and ¥88,379 million at September 30, 2010 and at March 31, 2010, respectively. The fair value of the liabilities recognized for Komatsu’s obligations as guarantors under those guarantees at September 30, 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 September 30, 2010 and at March 31, 2010 are as follows:

		Millions of yen
		September 30,				March 31,
		2010				2010
Forwards and options:
Sale of foreign currencies		¥	81,442			¥	40,209
Purchase of foreign currencies			63,331				48,809
Option contracts (purchased)			210				949
Interest rate swaps, cross-currency swaps and interest rate cap agreements			180,166				184,487

Fair values of derivative instruments at September 30, 2010 and at March 31, 2010 on the consolidated balance sheets are as follows:

Millions of yen

September 30, 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

¥

2,161

Deferred income taxes and other current liabilities

¥

145

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

Deferred income taxes and other current assets

135

Deferred income taxes and other current liabilities

658

Deferred income taxes and other assets

—

Deferred income taxes and other liabilities

—

Total

¥

2,296

¥

803

		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				¥	610			Deferred income taxes and other current liabilities				¥	1,195
		Deferred income taxes and other assets					—			Deferred income taxes and other liabilities					80
Option contracts		Deferred income taxes and other current assets					6			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					4,209			Deferred income taxes and other current liabilities					610
		Deferred income taxes and other assets					10,260			Deferred income taxes and other liabilities					459
Total						¥	15,085							¥	2,344
Total Derivative Instruments						¥	17,381							¥	3,147

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 six months ended September 30, 2010 and 2009 are as follows:

Derivative instruments designated as fair value hedging relationships

Millions of yen

Six months ended

September 30, 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

Six months ended

September 30, 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

¥

2,549

Other income (expenses), net: Other, net

¥

(1,157

)

Total

¥

2,549

¥

(1,157

)