Toshiba 2001 Annual Report Download - page 60

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58
Thousands of U.S. dollars
Pre-tax Tax benefit Net-of-tax
amount (expense) amount
For the year ended March 31, 2001:
Unrealized gains on securities:
Unrealized holding gains arising during period $ (239,936) $101,049 $(138,887)
Less: reclassification adjustment for gains included
in net income (367,153) 167,661 (199,492)
Foreign currency translation adjustments 406,758 (3,113) 403,645
Minimum pension liability adjustment (1,263,145) 531,782 (731,363)
Other comprehensive income (loss) $(1,463,476) $797,379 $(666,097)
A reconciliation of the numerators and denominators between basic and diluted net income per share (EPS) for
the years ended March 31, 2001 and 2000 is as follows:
Thousands of
Millions of yen U.S. dollars
Years ended March 31 2001 2000 2001
Net income (loss) available to common shareholders ¥96,168 ¥(32,903) $775,548
Net income effect of dilutive convertible debentures 186 —1,500
Net income (loss) available to common shareholders
and assumed conversions ¥96,354 ¥(32,903) $777,048
Thousands of shares
Years ended March 31 2001 2000
Number of shares for basic EPS computations:
Weighted—average number of shares of common stock
outstanding for the year 3,218,982 3,218,976
Incremental shares from assumed conversions of dilutive
convertible debentures 24,499 —
Number of shares for diluted EPS computations 3,243,481 3,218,976
Exact yen U.S. dollars
Years ended March 31 2001 2000 2001
Net income (loss) per share of common stock
—Basic ¥29.88 ¥(10.22) $0.241
—Diluted ¥29.71 ¥(10.22) $0.240
The company operates internationally, giving rise to exposure to market risks from fluctuations in for-
eign currency exchange and interest rates. In the normal course of its risk management efforts, the com-
pany employs a variety of derivative financial instruments, which are comprised principally of foreign
currency forward exchange contracts, interest rate swap agreements and currency swap agreements, to
reduce its exposures. The company does not hold or issue financial instruments for trading purposes.
The company does not anticipate any credit loss from nonperformance by the counterparties to foreign
exchange contracts, interest rate swap agreements and currency swap agreements.
The company and several subsidiaries have entered into forward exchange contracts with banks as
hedges against assets and liabilities denominated in foreign currencies. The forward exchange contracts
related to accounts receivable and payable, and commitments on future trade transactions denominated
in foreign currencies mature primarily within a few months subsequent to the balance sheet date. Gains
and losses explicitly deferred, arising from contracts related to future trade transactions, are insignifi-
cant. As these foreign exchange forward contracts are utilized solely for hedging purposes, the resulting
gains or losses are offset against foreign exchange gains or losses on the underlying hedged assets and
liabilities. Gains and losses related to qualifying hedges of firm commitments denominated in foreign
currencies are deferred and are recognized in income when the hedged transaction occurs.
16.
Net Income
Per Share
17.
Financial
Instruments