Toshiba 1998 Annual Report Download - page 50

48. Toshiba Corporation Annual Report 1998
14. SHAREHOLDERS’ EQUITY:
For the year ended March 31, 1997, th e increases in th e com m on stock an d additional paid-in capital accoun ts resulted
from th e conversion of deben tures.
The increases in th e legal reserve in th e years ended March 31, 1998 and 1997 were appropriation s required un der
th e Japanese Com m ercial Code. No further appropriation s (presen tly a min im um of 10 percent of cash dividends an d
other cash out-flow from retained earnin gs) are required by th e Com m ercial Code wh en the legal reserve of each legal
en tity equals 25 percent of its stated capital.
Cash dividends, wh ich are expected to be formally approved at the sh areholders’ meeting in June 1998, an d will be
payable subsequently, are shown as retain ed earnin gs appropriated for cash dividen ds.
An an alysis of the chan ges for the years en ded March 31, 1998 and 1997 in the cum ulative tran slation adjustm en t
is sh own below: Thousands of
Million s of yen U.S. dollars
March 31 1998 1997 1998
Balance at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . (¥33,988) (¥61,593) ($257,485)
Translation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,500) 27,605 (56,818)
Balance at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (¥41,488) (¥33,988) ($314,303)
15. NET INCOME PER SHARE:
A reconciliation of th e num erators and den om inators between basic an d diluted EPS for the years ended March 31,
1998 an d 1997 is as follows: Thousands of
Million s of yen U.S. dollars
Years ended March 31 1998 1997 1998
Net in com e available to comm on shareholders . . . . . . . . . . . . . . . . . . . ¥7,337 ¥67,077 $55,583
Net in com e effect of dilutive con vertible debentures . . . . . . . . . . . . . . . –1,797 –
Net in com e available to comm on shareholders
and assumed conversions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,337 ¥68,874 $55,583
Thousands of shares
Years ended March 31 1998 1997
Number of shares for basic EPS com putation s:
weighted – average num ber of shares of com m on stock outstandin g for the year . . . . 3,218,992 3,218,979
In cremen tal sh ares from assum ed con versions of dilutive convertible deben tures . . . . –214,565
Number of shares for diluted EPS com putations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,218,992 3,433,544
Yen U.S. dollars
Years ended March 31 1998 1997 1998
Net in com e per share of com m on stock
– Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥2.28 ¥20.84 $0.017
– Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥2.28 ¥20.06 $0.017
16. FINANCIAL INSTRUMENTS:
The com pan y operates in ternation ally, giving rise to exposure to m arket risks from fluctuation s in foreign curren cy
exch ange an d interest rates. In the norm al course of its risk m anagement efforts, th e com pany em ploys a variety of
derivative fin ancial instrumen ts, which are com prised principally of foreign currency forward exch ange con tracts,
interest rate swap agreem en ts and curren cy swap agreem en ts, to reduce its exposures. Th e com pany does not h old or
issue finan cial in strum ents for trading purposes. Th e com pany does not an ticipate any credit loss from n on perform ance
by the counterparties to foreign exch ange con tracts, in terest rate swap agreem en ts and curren cy swap agreem en ts.