Casio 2008 Annual Report Download - page 38

36 CASIO COMPUTER CO., LTD.
10. Retirement Benefits for Directors and Corporate Auditors
Effective April 1, 2002, the Company changed its accounting policy for retirement benefits for directors and corporate auditors.
Previously, retirement benefits to directors and corporate auditors were recognized after the approval at the shareholders’
meeting and charged to income when paid.
Under the new policy, the Company and certain subsidiaries provide for retirement allowance to directors and corporate
auditors at an estimate of the amount which would be required to be paid if all directors and corporate auditors had retired at each
balance sheet date.
11. Net Assets
The Japanese Corporate Law (“the Law”) became effective on May 1, 2006, replacing the Japanese Commercial Code (“the
Code”). The Law is generally applicable to events and transactions occurring after April 30, 2006 and for fiscal years ending after
that date.
Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock.
However, a company may, by a resolution of the Board of Directors, designate an amount not exceeding one-half of the price of
the new shares as additional paid-in capital, which is included in capital surplus.
Under the Law, in cases where a dividend distribution of surplus is made, the smaller of an amount equal to 10% of the
dividend or the excess, if any, of 25% of common stock over the total of additional paid-in-capital and legal earnings reserve must
be set aside as additional paid-in-capital or legal earnings reserve. Legal earnings reserve is included in retained earnings in the
accompanying consolidated balance sheets.
Under the Code, companies were required to set aside an amount equal to at least 10% of the aggregate amount of cash
dividends and other cash appropriations as legal earnings reserve until the total of legal earnings reserve and additional paid-in
capital equaled 25% of common stock.
Under the Code, legal earnings reserve and additional paid-in capital could be used to eliminate or reduce a deficit by a resolu-
tion of the shareholders’ meeting or could be capitalized by a resolution of the Board of Directors. Under the Law, both of these
appropriations generally require a resolution of the shareholders’ meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Code, however, on condi-
tion that the total amount of legal earnings reserve and additional paid-in capital remained equal to or exceeded 25% of common
stock, they were available for distribution by resolution of the shareholders’ meeting. Under the Law, all additional paid-in-capital
and all legal earnings reserve may be transferred to other capital surplus and retained earnings, respectively, which are potentially
available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial
statements of the Company in accordance with Japanese laws and regulations.
12. Lease Transactions
(1) Finance leases
The amounts of outstanding future lease payments due at March 31, 2008 and 2007 and total lease expenses (including total
assumed depreciation cost and total assumed interest cost) as lessee for the years ended March 31, 2008 and 2007 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2008 2007 2008
Future lease payments:
Due within one year ..................................................................................... ¥ 4,746 ¥ 4,074 $ 47,460
Due over one year ........................................................................................ 7,873 7,264 78,730
Total ............................................................................................................. ¥12,619 ¥11,338 $126,190
Total lease expenses ........................................................................................... ¥ 5,367 ¥ 4,711 $ 53,670
Total assumed depreciation cost ........................................................................ ¥ 4,967 ¥ 4,321 $ 49,670
Total assumed interest cost ................................................................................ ¥ 377 ¥ 306 $ 3,770
Assumed data as to acquisition cost, accumulated depreciation and net book value of the leased assets under the finance lease
contracts as lessee at March 31, 2008 and 2007 were summarized as follows:
Millions of Yen Thousands of U.S. Dollars
2008 2007 2008
Acquisition
cost
Accumulated
depreciation
Net book
value
Acquisition
cost
Accumulated
depreciation
Net book
value
Acquisition
cost
Accumulated
depreciation
Net book
value
Machinery ............................................. ¥16,990 ¥ 8,194 ¥ 8,796 ¥15,183 ¥ 7,055 ¥ 8,128 $169,900 $ 81,940 $ 87,960
Equipment ............................................ 5,512 2,791 2,721 4,197 2,350 1,847 55,120 27,910 27,210
Other .................................................... 2,026 1,173 853 2,181 1,096 1,085 20,260 11,730 8,530
Total ................................................ ¥24,528 ¥12,158 ¥12,370 ¥21,561 ¥10,501 ¥11,060 $245,280 $121,580 $123,700