Wacom 2005 Annual Report Download - page 30

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11. Leases:
Leases that transfer substantially all the risks and rewards of
ownership of the assets are accounted for as capital leases; Leases
do not transfer ownership of the assets at the end of the lease
term, are accounted for as operating leases in accordance with
accounting principles and practices generally accepted in Japan.
Cer tain information on such lease contracts of the Company and
its consolidated subsidiaries, as a lessee, is shown below:
(1) Finance leases, other than those which do not transfer
ownership of properties to lessees, are as follows:
a) Acquisition costs of leased assets under finance leases are as follows:
13. Earnings per share information:
Basic net income per share for the year ended March 31, 2004 and
2005 amounts to ¥6,154.03 and ¥9,826.49, respectively. D iluted
net income per share amounts to ¥5,837.32 and ¥9,386.80 for
2004 and 2005 respectively.
The computation of net income per share is based on the
weighted-average number of common shares outstanding and net
income attributable to the common shareholders during each fiscal
year, as shown below.
The following are the stock options granted to directors and
employees which would result in increasing the number of
common shares with the following exercise prices.
O n June 23, 2005, at the shareholders’ meeting, it was decided to
grant stock options limited to 200 common share to certain
directors and employees.
12. D erivatives:
Effective from fiscal year 2004, the Company enters into foreign
exchange forward contracts to hedge foreign exchange risk
associated with certain assets and liabilities denominated in foreign
currencies.
All derivative transactions are entered into to hedge foreign
currency exposures incorporated within the Company’s business.
Accordingly, the market risk in these derivatives is basically offset by
opposite movements in the value of hedged assets or liabilities. The
Company does not hold derivatives for trading or speculative
purposes. Because the counterparties to these derivatives are
limited to major international finance institutions, the Company
does not anticipate any losses arising from credit risk.
D erivative transactions entered into by the Company have been
come out in accordance with internal policies which regulate the
authorization and credit limit amount.
Cer tain information on outstanding derivative contracts is shown below.
(2) Minimum lease payments under non-cancelable operating
leases are as follows:
c) Lease payments and amounts representing depreciation and interest
are as follows:
Machinery, equipment and vehicles
Tools and furniture
Software
Accumulated depreciation
Total
¥3,714
23,529
46,240
(32,388)
¥41,095
¥8,021
27,825
46,240
(37,384)
¥44,702
$75
259
430
(348)
$416
Thousands of
U.S. dollars
Thousands of yen
March 31
2004 2005 2005
March 31
D ue within one year
D ue after more than one year
¥12,986
30,386
¥43,372
¥15,264
32,432
¥47,696
$142
302
$444
Thousands of
U.S. dollars
Thousands of yen
March 31
2004 2005 2005
March 31
Foreign exchange forward contracts:
Buying U.S. dollars ¥295,596 ¥298,457 ¥2,861
Foreign exchange forward contracts:
Buying U.S. dollars $2,753 $2,779 $27
Thousands of yen
March 31, 2005
Thousands of U.S. dollars
March 31, 2005
March 31 March 31
Basic net income per share:
N et income
Amounts not attributable to the
common shareholders
N et income attributable to the common
shareholders that are director’s bonuses
appropriated by retained earnings
W eighted-average number of common
shares outstanding during each fiscal year
(unit : shares)
D iluted net income per share:
Adjustments to net income
Increase of number of common shares
outstanding during each fiscal year that
would result in exercising options to
issue new shares (unit: shares)
¥589,098
(15,500)
¥573,598
93,207
¥–
5,057
¥944,392
(14,000)
¥930,392
94,682
¥–
4,435
$8,794
(130)
$8,664
94,682
$–
4,435
N ovember 8,
2002
June 26,
2003
June 24,
2004
4,750
1,860
300
6,910
¥71,000
¥639,100
¥1,230,900
Thousands of
U.S. dollars
Thousands of yen
D ate of
ordinary
shareholders’
meeting
N umber of
common share
granted
(shares)
Exercise price
per share
(exact yen) Exercise period
2004 2005 2005
Contract
amount Fair value
Unrealized
gain/(loss
)
Contract
amount Fair value
Unrealized
gain/(loss
)
b) Future lease payments under finance leases are as follows:
Lease payments
Amount representing depreciation
Amount representing interest
¥17,480
¥13,862
¥1,426
¥15,665
¥14,430
¥821
$146
$134
$8
Thousands of
U.S. dollars
Thousands of yen
March 31
2004 2005 2005
March 31
D ue within one year
D ue after one year
Total minimum lease payments
¥11,445
24,205
¥35,650
¥11,116
21,382
¥32,498
$104
199
$303
Thousands of
U.S. dollars
Thousands of yen
March 31
2004 2005 2005
March 31
Stock option to
purchase newly
issued shares
From N ovember 9, 2004
to O ctober 31, 2011
From June 27, 2005
to June 26, 2008
From June 25, 2006
to June 24, 2009
W acom Co., Ltd. Annual Report 2005