Pentax 2005 Annual Report Download - page 66

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63
No. 15 CONTINGENT LIABILITIES
At March 31, 2005, the Group had the following contingent liabilities:
Millions of Yen Thousands of U.S. Dollars
2005 2005
Guarantees of borrowings and lease obligations for customers ¥1,364 $12,747
Guarantees of borrowings for the Group’s employees 547
Total ¥1,369 $12,794
The Group enters into foreign currency forward contracts to
hedge foreign currency exchange risk associated with certain
assets and liabilities denominated in foreign currencies.
All derivative transactions are entered into to hedge foreign
currency exposures incorporated within its business. Accordingly,
market risk in these derivatives is basically offset by opposite
movements in the value of hedged assets or liabilities.
Because the counterparties to these derivatives are limited
to major international financial institutions, the Group does not
anticipate any losses arising from credit risk.
Derivative transactions entered into by the Group have been
made in accordance with internal policies which regulate the
authorization and credit limit amount.
Foreign currency forward contracts which qualify for hedge
accounting for the years ended March 31, 2005 and 2004 and
such amounts which are assigned to the associated assets or
liabilities and are recorded on the balance sheets at March 31,
2005 and 2004, are not subject to disclosure of market value
information.
No. 16 DERIVATIVES
Reconciliation of the differences between basic and diluted net income per share (“EPS”) for the years ended March 31, 2005, 2004 and
2003 is as follows:
Thousands of
Millions of Yen Shares Yen U.S. Dollars
Weighted-Average
Net Income Shares EPS EPS
Year ended March 31, 2005:
Basic EPS—Net income available to common shareholders ¥64,072 110,690 ¥578.84 $5.41
Effect of dilutive securities—Stock options 253
Diluted EPS—Net income for computation ¥64,072 110,943 ¥577.52 $5.40
Year ended March 31, 2004:
Basic EPS—Net income available to common shareholders ¥39,500 112,545 ¥350.96
Effect of dilutive securities—Stock options 129
Diluted EPS—Net income for computation ¥39,500 112,674 ¥350.56
Year ended March 31, 2003:
Basic EPS—Net income available to common shareholders ¥19,851 116,014 ¥171.10
Effect of dilutive securities—Stock options 14
Diluted EPS—Net income for computation ¥19,851 116,028 ¥171.08
No. 17 NET INCOME PER SHARE