Isuzu 2006 Annual Report Download - page 38

36
Financial Section
Isuzu Motors Limited Annual Report 2006
Thousands of
Millions of yen U.S. dollars
Guarantees of bank loans
Export bills discounted
Notes endorsed
Notes discounted
$ 22,539
843
—
6,172
¥ 2,647
99
—
725
10. Contingent Liabilities
Contingent liabilities at March 31, 2006 is as follows:
(Revised acquisition price shall be calculated to the first decimal point
and then rounded up. In addition, if during the actual value calcula-
tion period, a revision specified in (c) below becomes necessary, the
average price shall be revised to an amount judged appropriate by the
Board of Directors in accordance with (c).). However, after the above
calculation, when the revised acquisition price is below the price equal
to 50% of the initial acquisition price (calculated to the first decimal
point and then rounded up, hereinafter referred to as floor acquisi-
tion price and revised according to (c).), the floor acquisition price shall
be treated as the revised acquisition price. Also after the above cal-
culation, when the revised acquisition price is above the price equal
to 200% of the initial acquisition price (calculated to the first decimal
point and then rounded up, hereinafter referred to as the maximum
acquisition price and revised according to (c).), the maximum acquisi-
tion price shall be treated as the revised acquisition price.
(c) Adjustment of Acquisition Price
After the issue of Class-IV preferred stocks, if any of the followings
applies, the acquisition price shall be adjusted by the formula below
(hereinafter referred to as formula for the adjustment of acquisition
price). In this formula, figures shall be calculated to the first decimal
point and then rounded up.
(iii) The Number of Common Stocks to be issued in exchange for the acquisition of the Class-IV Preferred Stocks
The number of common stocks of the Company to be issued in exchange for the acquisition of the Class-IV preferred stocks shall be as follows.
(3) Mandatory Acquisition
The Class-IV preferred stocks which are not requested for acquisi-
tion during the period in which a request for acquisition is possible
shall become common stocks on the day determined by the Board
of Directors’ Meeting which is held on the next day of the last day of
the said period (hereinafter referred to as the base date of Mandatory
acquisition) and the number of the common stocks is obtained from
dividing the amount equal to the amount paid per stock of the Class-
IV preferred stocks by the average price (calculated to the first decimal
point and then rounded up) of the daily closing price (including quot-
ed price) in regular transactions of common stocks of the Company
at the Tokyo Stock Exchange during 30 business days (excluding days
without closing price) starting from the 45th business day preceding
the base date of Mandatory acquisition.
When the average price is lower than the floor acquisition price, the
Class-IV preferred stocks shall become common stocks whose num-
ber is obtained from dividing the amount equal to the amount paid
per stock of the Class-IV preferred stock by the floor acquisition price.
Also, when the average price is more than the maximum acquisition
price, they shall become common stocks whose number is obtained
from dividing the amount equal to the amount paid per stock of the
Class-IV preferred stocks by the maximum acquisition price.
When fractions less than 1 are produced in calculating the above
number of common stocks, they shall be treated according to the
treatment specified in the Article 234 of the Company Law.
9. Land Revaluation
In accordance with the Law concerning Revaluation of Land en-
acted on 31 March, 1999, the land used for business owned by the
Company and its consolidated subsidiaries was revalued, and the un-
realized gain on the revaluation of land, net of deferred tax, was re-
ported as “Variance of Land Revaluation” within Stockholders’ Equity,
and the relevant deferred tax was reported as “Deferred Tax Liabilities
related to Land Revaluation” in Liabilities for the fiscal year ended 31
March, 2006.
Revalued Date: 31 March, 2000
In accordance with the Law concerning Revaluation of Land enacted
on March31, 1998, the land used for business owned by some of the
Company’s consolidated subsidiaries and affiliates accounted for by
the equity method were revalued.
Revalued Date: 31 March, 2002
The method of revaluation is as follows:
Under article 3-3 of the enforcement ordinance for the law, the land
price for the revaluation is determined based on the official notice
prices assessed and published by the National Land Agency of Japan,
after appropriate adjustments for the shape of land and the timing of
the assessment on 31 March, 1998.
The difference of the total fair value, revalued based on the law on
revaluation of land article 10, of business land for the end of this fis-
cal year and the total book price for the business land revalued was
¥56,149 millions ($477,986 thousands).
No. of new and disposal common stocks x Amount paid per share
Market value per share
No. of issued common stocks +
Adj. acquisition price = Pre-adjust acquisition price x
No. of issued common stocks + No. of new common stocks
No. of common stocks issued in exchange for
the acquisition of the Class-IV preferred stocks =
Total value equal to paid-in amount of the Class-IV Preferred Stocks
submitted by Shareholders asking for Acquisition
Acquisition Price