Fujitsu 2008 Annual Report Download - page 111

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11. Shareholders’ Equity
The changes in the number of issued shares of common stock for the years ended March 31, 2006, 2007 and 2008
were as follows:
Number of shares
Years ended March 31 2006 2007 2008
At beginning of year 2,070,018,213 2,070,018,213 2,070,018,213
Conversion of convertible bonds — — —
Increase as a result of stock exchange — — —
At end of year 2,070,018,213 2,070,018,213 2,070,018,213
12. Commitments and Contingent Liabilities
Commitments outstanding at March 31, 2008 for purchases of property, plant and equipment were approximately
¥2,895 million ($28,950 thousand).
Contingent liabilities for guarantee contracts amounted to ¥24,271 million ($242,710 thousand) at March 31,
2008. 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 ($133,000 thousand), for employees’ housing loans were
¥5,582 million ($55,820 thousand) and guarantees given mainly for bank loans taken by Eudyna Devices Inc., an
equity method affiliate of the Company, were ¥5,000 million ($50,000 thousand).
13. 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 manage-
ment 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.
109
ANNUAL REPORT 2008FUJITSU LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS