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57 ANNUAL REPORT 2007
Dividends per share shown in the consolidated statements of income are
computed based on dividends paid for the year.
A reconciliation of the numerator and the denominators of the basic
and diluted per share computations for income before cumulative effect
of accounting change, cumulative effect of accounting change, net of
tax and net income is as follows:
Thousands of shares
2005
2006 2007
Weighted average number of
shares of common stock outstanding 738,160
733,434 729,745
Effect of dilutive securities:
Euro Yen Zero Coupon Convertible
Bonds-Due December 2011 –
– 5,758
Diluted shares of common stock outstanding
738,160
733,434 735,503
15. PER SHARE DATA
Risk Management Policy
Ricoh enters into various derivative financial instrument contracts in
the normal course of business in connection with the management of
its assets and liabilities.
Ricoh uses derivative instruments to reduce risk and protect market
value of assets and liabilities in conformity with the Ricoh’s policy.
Ricoh does not use derivative financial instruments for trading or
speculative purposes, nor is it a party to leveraged derivatives.
All derivative instruments are exposed to credit risk arising from the
inability of counterparties to meet the terms of the derivative contracts.
However, Ricoh does not expect any counterparties to fail to meet their
obligations because these counterparties are financial institutions with
satisfactory credit ratings. Ricoh utilizes a number of counterparties to
minimize the concentration of credit risk.
Foreign Exchange Risk Management
Ricoh conducts business on a global basis and holds assets and
liabilities denominated in foreign currencies. Ricoh enters into foreign
exchange contracts and foreign currency options to hedge against the
potentially adverse impacts of foreign currency fluctuations on those
assets and liabilities denominated in foreign currencies.
Thousands of
Millions of Yen U.S. Dollars
2005 2006
2007 2007
Income from continuing operations ¥80,537 ¥95,022
¥106,224 $900,203
Income from discontinued operations 2,606 2,035
5,500 46,610
Net income- 83,143 97,057
111,724 946,814
Effect of dilutive securities:
Euro Yen Zero Coupon Convertible Bonds-Due December 2011 – –
(8) (68)
Diluted net income ¥83,143 ¥97,057
¥111,716 $946,746
Yen U.S. Dollars
2005 2006
2007 2007
Earnings per share:
Basic:
Income from continuing operations ¥109.11 ¥129.56
¥145.56 $1.23
Income from discontinued operations, net of tax 3.53 2.77
7.54 0.06
Net income 112.64 132.33
153.10 1.30
Diluted:
Income from continuing operations ¥109.11 ¥129.56
¥144.41 $1.22
Income from discontinued operations, net of tax 3.53 2.77
7.48 0.06
Net income 112.64 132.33
151.89 1.29
16. DERIVATIVE FINANCIAL INSTRUMENTS