Annual Report 1998 - Omron

The Company has not provided for Japanese income taxes on unremitted earnings of subsidiaries to
the extent that they are believed to be indefinitely reinvested. The unremitted earnings of the foreign
subsidiaries which are considered to be indefinitely reinvested and for which Japanese income taxes
have not been provided were ¥35,315 million ($267,538 thousand) and ¥29,282 million for the years
ended March 31, 1998 and 1997, respectively. It is not practicable to estimate the amount of unrecognized
deferred Japanese income taxes on these unremitted earnings. Dividends received from domestic
subsidiaries are expected to be substantially free of tax.
10. Foreign
Operations
Net sales and total assets of foreign subsidiaries for the years ended March 31, 1998, 1997 and 1996
were as follows:
Thousands of
Millions of yen
U.S. dollars
1998 1997 1996 1998
Net sales.................................................................................. ¥171,181 ¥151,992 ¥122,716 $1,296,826
Total assets.............................................................................. 143,247 132,714 107,476 1,085,205
11. Amounts
per Share
The Company adopted SFAS No. 128, “Earnings per Share,” in the year ended March 31, 1998. SFAS
No. 128 establishes standards for computing and presenting net income per share and simplifies the
standards for computing net income per share previously found in APB Opinion No. 15, “Earnings per
Share.” SFAS No. 128 replaces the presentation of primary net income per share with a presentation of
basic net income per share. SFAS No. 128 also requires dual presentation of basic and diluted net
income per share on the face of the statements of income for all entities with complex capital structures
and requires a reconciliation of the numerator and denominator of the basic and diluted net
income per share computation.
All prior years’ net income per share data presented were restated to conform with the provisions of
SFAS No. 128.
Basic net income per share has been computed by dividing net income available to common shareholders
by the weighted average number of common shares outstanding during each year. Diluted net
income per share reflects the potential dilution of all convertible bonds and has been computed on the
basis that all convertible bonds were converted at the beginning of the year.
A reconciliation of the numerators and denominators of the basic and diluted net income per share
computation is as follows:
Thousands of
Millions of yen
U.S. dollars
1998 1997 1996 1998
Net income.................................................................................... ¥18,300 ¥15,739 ¥14,587 $138,636
Effect of dilutive securities:
Convertible bonds, due 2004.................................................... 292 275 248 2,212
Diluted net income ....................................................................... ¥18,592 ¥16,014 ¥14,835 $140,848
Number of shares
1998 1997 1996
Average common shares outstanding............................................. 262,107,214 262,107,214 262,107,214
Dilutive effect of:
Convertible bonds, due 2004 ..................................................... 10,028,661 10,028,661 10,028,661
Diluted common shares outstanding.............................................. 271,135,875 272,135,875 272,135,875
Cash dividends per share are the amounts applicable to the respective year, including dividends to
be paid after the end of the year.
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