Honda 2007 Annual Report Download - page 128

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Notes:
(1) The consolidated financial statements as of and for the year
ended March 31, 2007 have been translated into United
States dollars at the rate of ¥118.05 = U.S.$1, the approxi-
mate exchange rate prevailing on the Tokyo Foreign
Exchange Market on March 31, 2007. Those U.S. dollar
amounts presented in the consolidated financial statements
and related notes are included solely for the reader. This
translation should not be construed as a representation that
all the amounts shown could be converted into U.S. dollars.
(2) Net income per common (or American depositary) share
amounts are computed based on Statement of Financial
Accounting Standards (SFAS) No. 128, “Earnings per
Share.” All net income per common (or American deposi-
tary) share data presented prior to fiscal 1998 has been
restated to conform with the provisions of SFAS No. 128.
(3) Effective fiscal 2000, due to the change in method of busi-
ness segment categorization, all prior years’ unit sales
under Sales progress have been restated to reflect the
change: i.e., unit sales of all-terrain vehicles (ATVs) are now
included in Motorcycles, but were previously included in
Power Products.
(4) Previously, revenue from domestic sales of general-purpose
engines to customers who install them in products that are
subsequently exported were recorded as overseas sales.
However, owing to various factors including changes in
transaction formats and contract terms, as of fiscal 2002,
such sales are now recorded as domestic sales. The sales
amount from such sales for fiscal 2002 amounted to ¥5,468
million.
(5) Certain gains and losses on sale and disposal of property,
plant and equipment, which were previously recorded in
other income (expenses), have been reclassified to selling,
general and administrative expenses in the year ended
March 31, 2004. In addition, net realized gains and losses
on interest rate swap contracts not designated as account-
ing hedges by finance subsidiaries, which were previously
recorded in cost of sales, have been reclassified to and
included in other income (expenses)–other. Operating
income prior to fiscal 2003 has been presented to conform
with the reclassifications mentioned above.
(6) On April 26, 2006, the Board of Directors declared a two-
for-one stock split of the Company’s common stock. All
shareholders of record on June 30, 2006 will receive one
additional share of common stock for each share on July 1,
2006. Information pertaining to shares and earnings per
share has been restated in the accompanying consolidated
financial statements and notes to the consolidated financial
statements to reflect this split.
(7) The Company executed a two-for-one stock split for the
Company’s common stock effective July 1, 2006. All per
share information has been adjusted retroactively for all
periods presented to reflect this stock split.
(8) Certain revisions for misclassifications and reclassifications
have been made to the prior years’ consolidated financial
statements to conform to the presentation used for the
fiscal year ended March 31, 2007.
(a) Minority interest in income, which were included in
other expenses-other, has been revised to be disclosed
independently in consolidated statements of income.
(b) The long-term portion of deferred tax liabilities and
deferred tax assets related to the lease transactions of
finance subsidiaries, which were classified in other current
liabilities and deferred income taxes, have been revised to
be classified in other liabilities and other assets,
respectively.
(c) The long-term portion of accrued expenses and prepaid
expenses related to pension benefit plans, which were
included in accrued expenses and other current assets
have been revised to be classified in other liabilities and
other assets, respectively. The long-term portion of
deferred tax liabilities, which were included in other current
liabilities, and deferred tax assets, have also been revised
to classified in other liabilities and other assets.
(d) The long-term portion of prepaid expenses, deferred
income and accrued expenses related to extended vehicle
service contracts of the subsidiaries in the United States,
which were included in other current assets, trade
payables accounts and accrued expenses, respectively,
have been revised to be classified in other liabilities and
other assets. The long-term portion of related deferred tax
liabilities, which were included in other current liabilities,
and deferred income taxes have also been revised to be
classified in other liabilities and other assets.
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