Wacom 2008 Annual Report Download - page 34

15. Earnings per share information:
Basic net income per share for the years ended March
31, 2007 and 2008 was ¥6,886.19 and ¥8,348.74
($83.33), respectively. Diluted net income per share for
the years ended March 31, 2007 and 2008 was
¥6,784.24 and ¥8,304.38 ($82.89), 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.
14. Derivatives:
All derivative transactions are entered into in order to
hedge foreign currency exposures 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.
Derivative transactions entered into by the Company have
been executed in accordance with internal policies, which
regulate the authorization and credit limit amount.
The amount of the derivative contracts does not
necessarily indicate the significance of the risk.
Certain information on outstanding derivative
contracts is shown below.
Foreign exchange forward contracts:
To sell U.S. dollars
To sell Euros
Total
$14,369
6,791
$21,160
$14,300
6,789
$21,089
$69
2
$71
Thousands of U.S. dollars
March 31, 2008
Contract
amount Fair value
Unrealized
gain/(loss)
Foreign exchange forward contracts:
To sell U.S. dollars
To sell Euros
Total
¥901,430
309,087
¥1,210,517
¥897,180
314,660
¥1,211,840
¥4,250
(5,573)
¥(1,323)
Thousands of yen
March 31, 2007
Contract
amount Fair value
Unrealized
gain/(loss)
Foreign exchange forward contracts:
To sell U.S. dollars
To sell Euros
Total
¥1,439,624
680,435
¥2,120,059
¥1,432,717
680,217
¥2,112,934
¥6,907
218
¥7,125
Thousands of yen
March 31, 2008
Contract
amount Fair value
Unrealized
gain/(loss)
Primary net income per share:
Net income
Amounts not attributable to
the common shareholders
Net income attributable to the
common shareholders
Weighted-average number of
common shares outstanding
during each fiscal year
(unit: shares)
Diluted net income per share:
Adjustments to net income
Increase in the number of
common shares outstanding
during each fiscal year that
would result in exercising
options to issue new shares
(unit: shares)
¥2,853,274
(–)
¥2,853,274
414,347
¥–
6,227
¥3,501,360
(–)
¥3,501,360
419,388
¥–
2,240
$34,947
(–)
$34,947
419,388
$–
2,240
Thousands of
U.S. dollars
Thousands of yen
March 31
2007 2008 2008
March 31
(3) Calculation method of depreciation
equivalents-
Depreciation equivalents are calculated using the
declining-balance method for tangible fixed assets
over the lease terms with residual value by 10%,
before multiplying by 10 and being divided by 9 and
on the straight-line method for the intangible fixed
assets over the lease terms without residual value.
(4)Allocation of interest expense equivalents-
Differences between total lease expenses and
purchase price equivalents of the leased properties
comprise interest expense equivalents and insurance,
maintenance and certain other operating costs.
Interest expense equivalents are allocated using the
interest method over the lease terms.
16.Stock options:
The following are the stock options granted to directors and
employees, which would result in an increase in the number
of common shares with the following exercise prices.
November 8, 2002
June 26, 2003
June 24, 2004
June 23, 2005
Date of
ordinary
shareholders’
meeting
113
6
33
4
66
13
2
4
9
1
6
9
Employees
Subsidiaries’ executive officers
Subsidiaries’ employees
Executive officers
Employees
Subsidiaries’ employees
Executive officers
Employees
Subsidiaries’ employees
Executive officers
Employees
Subsidiaries’ employees
Person granted
19,160
7,440
1,200
800
28,600
Number of
common
shares granted
(shares)
Stock option
to purchase
newly
issued
shares
November 8, 2002
June 26, 2003
June 24, 2004
June 23, 2005
Date of
ordinary
shareholders’
meeting
17,659
158,951
306,139
242,865
Exercise price
per share
(exact yen)
251,375
250,607
−
−
Average price
per share
at exercise
(exact yen)
Stock option
to purchase
newly
issued
shares
Exercise periods
From November 9,
2004 to October 31,
2011
From June 27, 2005
to June 26, 2008
From June 25, 2006
to June 24, 2009
From June 24, 2007
to June 23, 2010
There is no impairment losses allocated to leased
assets.
(2) Minimum lease payments under non-cancelable
operating leases are as follows:
Due within one year
Due after one year
Total minimum lease payments
¥22,882
37,910
¥60,792
¥56,762
39,474
¥96,236
$567
394
$961
Thousands of
U.S. dollars
Thousands of yen
2007 2008 2008
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