Fujitsu 2007 Annual Report Download - page 81

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12. Shareholders’ Equity
The changes in the number of issued shares of common stock for the years ended March 31, 2005, 2006
and 2007 were as follows:
Number of shares
Years ended March 31 2005 2006 2007
At beginning of year 2,001,962,672 2,070,018,213 2,070,018,213
Conversion of convertible bonds 1,141 — —
Increase as a result of stock exchange 68,054,400 — —
At end of year 2,070,018,213 2,070,018,213 2,070,018,213
An increase as a result of stock exchange for the year ended March 31, 2005 reflected the issuance of
shares in October 2004 by which the Company turned Fujitsu Support and Service Inc. into a wholly
owned subsidiary.
13. Commitments and Contingent Liabilities
Commitments outstanding at March 31, 2007 for purchases of property, plant and equipment were
approximately ¥21,982 million ($186,288 thousand).
Contingent liabilities for guarantee contracts amounted to ¥29,116 million ($246,746 thousand) at
March 31, 2007. Of the total contingent liabilities, guarantees given mainly for bank loans taken by FDK
Corporation, an equity method affiliate of the Company, were ¥13,300 million ($112,712 thousand), for
employees’ housing loans were ¥6,707 million ($56,839 thousand) and guarantees given mainly for bank
loans taken by Eudyna Devices Inc., an equity method affiliate of the Company, were ¥6,000 million
($50,847 thousand).
14. Derivative Financial Instruments
Purpose of Derivative Trading
The Group enters into derivative transactions related to foreign currency exchange rates and interest
rates in order to reduce risk exposure arising from fluctuations in these rates, to reduce the cost of the
funds financed, and to improve return on invested funds.
Basic Policies for Derivative Trading
The Group basically enters into derivative transactions only to cover actual requirements for the effective
management of receivables/liabilities, and not for speculative or dealing purposes.
The Group, in principle, has no intention to use derivative financial instruments that would increase
market risks. Furthermore, the counterparties to the derivative transactions are thoroughly assessed in
terms of their credit risks. Therefore, the Group believes that its derivative financial instruments entail
minimal market and credit risks.
Annual Report 2007 79