Nikon 2010 Annual Report Download - page 51

49
Nikon Corporation Annual Report 2010
17. Net Income per Share
Reconciliation of the differences between basic and diluted net income (loss) per share (“EPS”) for the years ended March 31, 2010 and 2009 was as
follows. Diluted net income (loss) per share for the year ended March 31, 2010 is not disclosed because of the Company’s net loss position.
Millions of Yen
Thousands
of shares Yen U.S. Dollars
Net Income
Weighted
Average Shares EPS
For the year ended March 31, 2010:
Basic EPS
Net loss available to common shareholders ¥(12,615) 396,398 ¥(31.82) $(0.34)
For the year ended March 31, 2009:
Basic EPS
Net income available to common shareholders ¥ 28,056 396,520 ¥ 70.76 $ 0.72
Effect of Dilutive Securities
Warrants (Stock Option) 258
Convertible bonds 16,361
Diluted EPS
Net income for computation ¥ 28,056 413,139 ¥ 67.91 $ 0.69
18. Business Combinations
(a) Business Spin-off of Precision Equipment Company’s
Production Subsidiaries
On April 1, 2008, Sendai Nikon Precision Co., Ltd., a wholly owned
consolidated subsidiary, was spun off from Sendai Nikon Corporation,
a wholly owned consolidated subsidiary. The new subsidiary was estab-
lished to promote the Nikon Group’s in-house company system fi rmly,
respond to market changes more quickly and strengthen competitive-
ness and profi tability. The precision equipment business of Sendai
Nikon Corporation was transferred to Sendai Nikon Precision Co., Ltd.
After this spin-off, Sendai Nikon Precision Co., Ltd. belongs to the
Precision Equipment Company and Sendai Nikon Corporation belongs
to the Imaging Company.
As this spin-off was a transaction under common control, all
intercompany transactions were eliminated and there was no account-
ing effect of this transaction on the consolidated fi nancial statements
for the year ended March 31, 2009.
(b) Reorganization of Precision Equipment Company’s Production
Subsidiaries
1. Objective and Measures
The Company has been implementing various structural reforms of
its Precision Equipment Company to cope with deterioration of the IC
steppers and scanners market as well as the future outlook of the IC/
LCD steppers and scanners markets. As a part of this reform, the
Precision Equipment Company’s currently operating four production
subsidiaries in Japan were reorganized and integrated into two subsid-
iaries for establishment of a production structure to substantially
reduce fi xed costs and enhance both operational effi ciency and the
capability to cope with the drastic change in the business environment.
Production of IC steppers and scanners was integrated into Tochigi
Nikon Precision Co., Ltd. Major devices of LCD steppers and scanners
production were integrated into Zao Nikon Co., Ltd.
2. Outline of Reorganization
(Date of enforcement)
October 1, 2009
(Schema)
The IC stepper and scanner business of Sendai Nikon Precision
Corporation was transferred to Tochigi Nikon Precision Co., Ltd. via
split by absorption. The LCD stepper and scanner business of Mito
Nikon Precision Corporation was transferred to Zao Nikon Co., Ltd.
via split by absorption.
After split by absorption, merger by absorption proceeded with
Tochigi Nikon Precision Co., Ltd. as the continuing concern and Mito
Nikon Precision Corporation as the discontinued concern.
In the same manner, merger by absorption proceeded with Zao
Nikon Co., Ltd. as the continuing concern and Sendai Nikon Precision
Corporation as the discontinued concern. Further, Zao Nikon Co., Ltd.
changed its trade name to Miyagi Nikon Precision Co., Ltd. on the
same day.