Kenwood 2000 Annual Report Download - page 24

(i)Employees' Retirement Allowances
The Company has an unfunded retirement allowance plan for
regular employees having more than one year of service with the
Company. The amounts of the retirement allowances are, in general,
determined on the basis of length of service and basic salary at the
time of retirement.
The Company also has a funded welfare pension plan
(substantially non-contributory) for regular employees having more
than 5 years of service with the Company to pay a portion (40% in
principle) of the amounts of the retirement allowances.
The Company accrues a liability for the retirement allowances,
except for the amounts to be paid from the funded welfare pension
plan, equal to 40% of the amount payable if all regular employees
had voluntarily terminated their employment at the end of each
fiscal year.
Under the funded welfare pension plan, the employees are
entitled to lump-sum payments or pension payments, as defined,
in addition to the lump-sum payments under the unfunded plan.
Under the funded welfare pension plan, it is the Company's
policy to charge to income the annual pension payments to the
trustee, including the amortization of prior service costs which are
being amortized over approximately 20 years.
The pension fund assets, including a government pension
fund required by Japanese law, were ¥16,306 million at
March 31, 1999, the most recent date of available information.
Certain of the Company's consolidated subsidiaries have
funded or unfunded retirement plans. The benefits are determined
on a similar basis as referred to above.
Retirement allowances to directors and corporate auditors
are charged to income when paid subject to the approval of the
shareholders.
The total provisions, including amortization of prior service
costs, charged to income under the above plans for the years ended
March 31, 2000, 1999 and 1998, were ¥1,167million ($11,009thousand),
¥1,253 million and ¥1,344 million, respectively.
(j) Income Taxes
Effective April 1 1999, the Group adopted an accounting method for
interperiod allocation of income taxes based on the assets and liability
method. The cumulative effect of the application of interperiod tax
allocation in prior years in the amount of ¥1,467 million ($13,840
thousand) is included as an adjustment to retained earnings as of April
1, 1999. Such cumulative effect is calculated by applying the income
tax rate stipulated by enacted tax laws of April 1, 1999.
Deferred income taxes are recorded to reflect the impact of
temporary differences between assets and liabilities recognized for
financial reporting purposes and such amounts recognized for tax
purposes. These deferred income taxes are measured by applying
currently enacted tax laws to the temporary differences.
(k) Leases
All leases of the Company and domestic subsidiaries are accounted
for as operating leases. Under Japanese accounting standards for
leases, finance leases that deem to transfer ownership of the leased
property to the lessee are to be capitalized, while other finance
leases are permitted to be accounted for as operating lease
transactions if certain "as if capitalized" information is disclosed in
the notes to the lessee's financial statements.
Marketable securities include interest-bearing securities and other
securities. Investment securities consist of non-current marketable
equity securities and other securities.
Carrying values and aggregate market values of current and non-
current marketable securities held by the Group at March 31, 2000
and 1999, were as follows:
2. Marketable and Investment Securities
Millions of yen
Thousands of
U.S. dollars
Carrying
value
Market
value
2000
Carrying
value
Market
value
2000
Carrying
value
Market
value
1999
The differences between the above carrying amounts and respective
amounts shown in the accompanying balance sheets principally
consist of money management funds and non-marketable securities
held by the Company and marketable and investment securities held
by its consolidated subsidiaries for which there is no readily-
available market information.
3. Leases
2000 1999 2000
Thousands of U.S. dollars
Acquisition
cost
Accumulated
depreciation
Accumulated
depreciation
Net leased
property
Net leased
property
Acquisition
cost
¥ 453
13,603
¥ 14,056
¥ 272
14,566
¥ 14,838
¥ 393
15,565
¥ 15,958
¥ 142
12,408
¥ 12,550
$ 2,569
137,414
$139,983
$ 4,272
128,332
$132,604
¥ 2,955
1,640
223
¥ 4,818
¥ 5,297
3,215
427
¥ 8,939
¥ 2,342
1,575
204
¥ 4,121
Millions of yen
Acquisition
cost
Accumulated
depreciation
Net leased
property
¥ 2,973
1,446
383
¥ 4,802
¥ 5,776
3,456
659
¥ 9,891
¥ 2,803
2,010
276
¥ 5,089
$ 49,972
30,330
4,028
$ 84,330
$ 27,877
15,472
2,104
$ 45,453
$ 22,095
14,858
1,924
$ 38,877
Current
Non-current
Total
2000
¥ 1,603
2,682
¥ 4,285
1999
¥ 1,815
3,459
¥ 5,274
2000
$ 15,123
25,302
$ 40,425
Due within one year
Due after one year
Total
Millions
of yen
Thousands of
U.S. dollars
The Group leases certain machinery, computer equipment, office space and other
assets. Total lease payments under finance leases were
¥ 2,104 million ( $ 19,849
thousand) and
¥ 2,179 million for the years ended March 31, 2000 and 1999,
respectively.
Obligations under finance leases as of March 31, 2000 and 1999 are due as follows:
Pro forma information of leased property on an "as if capitalized" basis, such as acquisition cost, accumulated depreciation, and net lease property
under finance lease as of March 31, 2000 and 1999 are as follows:
Machinery and equipment
Tools, furniture and fixtures
Others
Total
KENWOOD Corporation Annual Report 2000
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