text: 20. DERIVATIVE TRANSACTIONS 
  
  Hedging Policies 
  The Company and its consolidated subsidiaries (collectively, the 
  “Group”) utilize derivative transactions for the purpose of hedging 
  their exposure to fluctuation in foreign exchange rates, interest rates 
  and market prices. However, based on an internal management rule 
  on financial market risk (the “Rule”) approved by the Company’s 
  Board of Directors, they do not enter into transactions involving 
  derivatives for speculative purposes. The Rule prescribes that (i) the 
  Group’s financial market risk is to be controlled by the Company in a 
  centralized manner, and that (ii) no individual subsidiary can initiate a 
  hedge position without the prior approval of, and regular reporting 
  back to the Company. 
  
  Risk Management 
  All strategies to manage financial market risk and risk hedge 
  operations of the Group are carried out pursuant to the Rule which 
  stipulates the Group’s basic policies for derivative transactions, 
  management policies, management items, procedures, criteria for the 
  selection of counterparties, and the reporting system, and so forth. 
  The Rule prescribes that (i) the Group’s financial market risk is to be 
  controlled by the Company in a centralized manner, and that (ii) no 
  individual subsidiary is permitted to initiate a hedging operation 
  without the prior approval of, and regular reporting back to the 
  Company. 