Ricoh 2003 Annual Report Download - page 49

Download and view the complete annual report

Please find page 49 of the 2003 Ricoh annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 59

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59

47
Dividends per share shown in the consolidated statem ents of incom e are computed based on dividends paid for the year.
The following table sets forth the com putation of basic and diluted earnings per share showing the reconciliation of the num erators and denominators used for the
com putation.
1 4 . PER SHARE DATA
Weighted average com m on shares outstanding
Effect of dilutive securities:
Convertible bonds—
1.8%, payable in yen, due March 2002
1.5%, payable in yen, due March 2002
0.35%, payable in yen, due March 2003
Diluted com m on shares outstanding
2 0 0 3
Thousands of shares
726,660
—
—
2 3 ,2 5 0
749,910
2002
698,025
997
28,195
24,699
751,916
2001
Thousands of
U.S. dollars
2 0 0 32 0 0 3
Millions of yen
20022001
U.S. dollars
2 0 0 32 0 0 3
Yen
20022001
692,617
1,636
33,070
24,703
752,026
Net incom e applicable to common shareholders
Effect of dilutive securities:
Convertible bonds—
1.8%, payable in yen, due March 2002
1.5%, payable in yen, due March 2002
0.35%, payable in yen, due March 2003
Other
Diluted net income
¥53,228
14
295
119
( 249)
¥53,407
¥61,614
10
258
119
—
¥62,001
¥
7 2 ,5 1 3
—
—
8 6
—
¥
7 2 ,5 9 9
$
614,517
—
—
7 2 9
—
$
615,246
¥ 76.85
71.02
¥ 88.27
82.46
¥
9 9 .7 9
9 6 .8 1
$
0 .8 5
0 .8 2
Earnings per share:
Basic
Diluted
Risk Management Policy
Ricoh enters into various derivative financial instrument contracts in the norm al
course of business in connection with the m anagem ent of its assets and liabilities.
Ricoh uses derivative instruments to reduce risk and protect m arket value of
assets and liabilities in conformity with Ricoh’s policy. Ricoh does not use deriva-
tive 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 term s 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 uti-
lizes a num ber of counterparties to m inimize the concentration of credit risk.
Foreign Exchange Risk Management
Ricoh conducts business on a global basis and holds assets and liabilities denom-
inated in foreign currencies. Ricoh enters into foreign exchange contracts and
foreign currency options to hedge against the potentially adverse impacts of for-
eign currency fluctuations on these assets and liabilities denominated in foreign
currencies.
Inter est Rate Risk Management
Ricoh enters into interest rate swap agreem ents to hedge against the potential
adverse im pacts of changes in fair value or cash flow fluctuations on interest of its
outstanding debt.
Fair Value Hedges
Changes in the fair value of derivative instruments and the related hedged item s
designated and qualifying as fair value hedges are included in other ( incom e)
expenses on the consolidated statements of incom e. There is no hedging ineffec-
tiveness nor are net gains or losses excluded from the assessment of hedge effec-
tiveness for the years ended March 31, 2002 and 2003 as the critical term s of the
interest rate swap m atch the terms of the hedged debt obligations.
1 5 . DERIVATIVE FINANCIAL INSTRUMENTS