Ricoh 2008 Annual Report Download - page 57

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56
ANNUAL REPORT 2008
To Our Shareholders
and Customers
Fiscal 2008 Highlights
Fiscal 2008 Milestones 16th Mid-Term
Management Plan
Corporate Governance /
CSR
Financial Section
Sustainable Environmental
Management
Dividends per share shown in the consolidated statements of
income are computed based on dividends paid for the year.
A reconciliation of the numerator and the denominators of the basic
and diluted per share computations for income before cumulative
effect of accounting change, cumulative effect of accounting
change, net of tax and net income is as follows:
Thousands of shares
2006
2007 2008
Weighted average number of
shares of common stock outstanding
733,434 729,745
729,010
Effect of dilutive securities:
Euro Yen Zero Coupon Convertible
Bonds -Due December 2011
– 5,758
19,741
Diluted shares of common stock outstanding
733,434 735,503
748,752
15. PER SHARE DATA
Risk Management Policy
Ricoh enters into various derivative financial instrument contracts
in the normal course of business in connection with the
management of its assets and liabilities.
Ricoh uses derivative instruments to reduce risk and protect market
value of assets and liabilities in conformity with the Ricoh’s policy.
Ricoh does not use derivative 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 terms 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 utilizes a
number of counterparties to minimize the concentration of credit
risk.
Foreign Exchange Risk Management
Ricoh conducts business on a global basis and holds assets and
liabilities denominated in foreign currencies. Ricoh enters into
foreign exchange contracts and foreign currency options to hedge
against the potentially adverse impacts of foreign currency
Thousands of
Millions of Yen U.S. Dollars
2006 2007
2008 2008
Income from continuing operations ¥95,022 ¥106,224
¥106,463 $1,064,630
Income from discontinued operations, net of tax 2,035 5,500
––
Net income 97,057 111,724
106,463 1,064,630
Effect of dilutive securities:
Euro Yen Zero Coupon Convertible Bonds -Due December 2011 – (8)
(25) (250)
Diluted net income ¥97,057 ¥111,716
¥106,438 $1,064,380
Yen U.S. Dollars
2006 2007
2008 2008
Earnings per share:
Basic:
Income from continuing operations ¥129.56 ¥145.56
¥146.04 $1.46
Income from discontinued operations, net of tax 2.77 7.54
––
Net income ¥132.33 ¥153.10
¥146.04 $1.46
Diluted:
Income from continuing operations ¥129.56 ¥144.41
¥142.15 $1.42
Income from discontinued operations, net of tax 2.77 7.48
––
Net income ¥132.33 ¥151.89
¥142.15 $1.42
16.
DERIVATIVE FINANCIAL INSTRUMENTS