tracts denominated in foreign currencies are translated at the con- tracted rates if the forward contracts qualify for hedge accounting. Currency options are also utilized to hedge foreign exchange risks. These options which qualify for hedge accounting are measured at market value at the balance sheet date and the unrealized gains or losses are deferred until maturity as an other liability or other asset. Diluted net income per share reflects the potential dilution that could occur if securities were exercised or converted into common stock. Diluted net income per share of common stock assumes full conversion of the outstanding convertible notes and bonds at the beginning of the year (or at the time of issuance) with an applicable adjustment for related interest expense, net of tax, and full exercise of outstanding warrants. Diluted net income per share for the year ended March 31, 2002, is not disclosed because no dilutive securities were outstanding dur- ing the year. p. Per Share Information  — Basic net income per share is comput- ed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period, retroactively adjusted for stock splits. The Company has guaranteed the indebtedness of certain uncon- solidated subsidiaries and associated companies in the amount of ¥4,985 million ($41,542 thousand) and ¥3,253 million at March 31, 2003 and 2002, respectively. Costs and estimated earnings recognized with respect to con- struction contracts which are accounted for by the percentage-of- completion method at March 31, 2003 and 2002, are as follows: 4. CONSTRUCTION CONTRACTS 3. TRANSACTIONS WITH UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATED COMPANIES Significant transactions with and balances due from/(to) unconsolidat- ed subsidiaries and associated companies are summarized as follows: Costs and estimated earnings ........................................................................................... ¥ 75,610 ¥ 50,511 $ 630,083 Amounts billed ................................................................................................................. (70,560) (48,265) (588,000) Net ................................................................................................................................... ¥ 5,050 ¥ 2,246 $ 42,083 Millions of Yen 2003 2002 Thousands of U.S. Dollars 2003 Transactions for the Year Ended March 31 Construction contract revenues..................................................................................... ¥ 38 ¥ 36 $ 317 Purchases...................................................................................................................... (2,340) (857) (19,500) Selling, general and administrative expenses ................................................................. (923) (363) (7,692) Interest and dividend income ........................................................................................ 42 74 350 Balances at March 31 Notes and accounts receivable — trade......................................................................... 36 78 300 Notes and accounts payable — trade ............................................................................ (422) (238) (3,517) Millions of Yen 2003 2002 Thousands of U.S. Dollars 2003 34