Notes to Consolidated Financial Statements
NSK Ltd. and Consolidated Subsidiaries For the year ended March 31, 2007
16. Amounts Per Share
| Yen | U.S. dollars | ||
| Year ended March 31, | 2007 | 2006 | 2007 |
|---|---|---|---|
| Net income: | |||
| Basic | ¥64.53 | ¥47.28 | $0.547 |
| Diluted | 64.47 | 47.26 | 0.546 |
| Net assets | 485.62 | 436.48 | 4.115 |
| Cash dividends applicable to the year | ¥16.00 | ¥12.00 | $0.136 |
Basic net income per share is computed based on the net income available for distribution to shareholders of common
stock and the weighted average number of shares of common stock outstanding during each year. Diluted net
income per share is computed based on the net income available for distribution to the shareholders and the weighted
average number of shares of common stock outstanding during each year after giving effect to the dilutive potential of
shares of common stock to be issued upon the conversion of convertible bonds and the exercise of stock options.
Amounts per share of net assets are computed based on net assets available for distribution to the shareholders
and the number of shares of common stock outstanding at the year end.
Cash dividends per share represent the cash dividends resolved by the Board of Directors as applicable to that
year together with the interim cash dividends paid.
17. Related Party Transactions
The Company purchased goods for resale in the amounts of ¥53,727 million ($455,314 thousand) and ¥50,856
million from NSK-Warner K.K., its major affiliate, which was accounted for by the equity method for the years ended
March 31, 2007 and 2006, respectively. The related payable balances at March 31, 2007 and 2006 amounted to
¥14,280 million ($121,017 thousand) and ¥11,971 million, respectively. The purchase prices were negotiated on
an arm’s-length basis based on the final retail prices of the Company.
18. Supplementary Cash Flow Information
(a) Summary of assets and liabilities excluded from consolidation because of sales of stock in subsidiaries
The following is a summary of the transferred assets and liabilities, relevant selling prices and net cash inflows resulting from the sales of stock in subsidiaries for the year ended March 31, 2007:| Millions of yen | Thousands of U.S. dollars |
|
| Year ended March 31, 2007 | ||
|---|---|---|
| Current assets | ¥ 841 | $7,127 |
| Non-current assets | 918 | 7,780 |
| Current liabilities | (760) | (6,441) |
| Non-current liabilities | (162) | (1,373) |
| Gain on sales of stocks of affiliated companies | 540 | 4,576 |
| Unrealized profit regarding sale of stock | 492 | 4,169 |
| Proceeds from sales of stock | 1,870 | 15,847 |
| Cash and cash equivalents held by affiliated companies | (8) | (68) |
| Net cash inflows | ¥1,861 | $15,771 |
(b) Summary of assets and liabilities included in consolidation upon acquisition of stock in subsidiaries
The following is a summary of the assets and liabilities of subsidiaries which were included in consolidation upon acquisition of stock in subsidiaries and reconciliation of the related acquisition cost and net cash outflows for the year ended March 31, 2006:| Millions of yen | |
| Year ended March 31, 2006 | |
|---|---|
| Current assets | ¥ 32,388 |
| Non-current assets | 42,740 |
| Excess of cost over net assets acquired | 1,005 |
| Current liabilities | (11,011) |
| Non-current liabilities | (8,736) |
| Carrying value of the Company’s investments on an equity basis | (18,658) |
| Total acquisition cost of minority interests | 37,728 |
| Unpaid acquisition cost | (1,341) |
| Acquisition cost of investments in an affiliate | 1,042 |
| Cash and cash equivalents held by subsidiaries | (9,890) |
| Net cash outflows | ¥(27,539) |