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Intergraph had guaranteed a debt obligation of Nihon Intergraph.
During 1985, 1986, and 1987, Intergraph reported no increase in
the amount of its capital contribution to Nihon Intergraph over
and above its original �100 million ($392,000) initial capital
contribution.
On its financial statements for 1985, 1986, and through
November of 1987, Intergraph reflected no foreign currency
exposure with regard to the outstanding balance of the overdraft
amount.
From 1985 through the end of 1987, the dollar weakened
dramatically against the yen -- dropping from $1:�249 to $1:�126.
During 1985, 1986, and through November of 1987, at the end of
each month, on Nihon Intergraph's (not Intergraph's) books and
records, the amount of the monthly increase in the overdraft
amount was assigned a historical dollar equivalent based on the
then-prevailing exchange rate. As indicated above, on
December 23, 1987, the historical dollar equivalent of the total
�823,943,385 balance of the overdraft amount equaled $4,561,066.
As stated, however, based on the dollar-yen exchange rate
that existed on December 23, 1987, the dollar equivalent of the
�823,943,385 balance of the overdraft amount, as of December 23,
1987, equaled $6,484,169.
On or about December 23, 1987, based on a number of
considerations, Intergraph representatives decided to eliminate
the �823,943,385 balance of the overdraft amount. Accordingly,
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