Kenwood 2001 Annual Report Download - page 26
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KENWOOD Corporation Annual Report 2001
24
Net income (loss) per share is based on the weighted average
number of outstanding shares of common stock.
The average number of common shares used in the computation
was 147,332 thousand for the years ended March 31, 2001,
2000, and 1999, respectively.
Diluted net income per share is not disclosed because of
the Company's net loss position.
Cash dividends per share shown in the accompanying
consolidated statements of operations have been presented on
the accrual basis and include, in the year ended March 31, 1999,
dividends approved and paid after such date, but which were
applicable to those periods.
11. Per Share Data
9. Research and Development Cost
Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial (gain) loss
Unrecognized transitional obligation
Net liability (asset)
Millions
of yen Thousands of
U.S. dollars
Assumptions used for the year ended March 31, 2001 is set
forth as follows:
Discount rate
Expected rate of return on plan assets
Recognition period of actuarial gain loss
Amortization period of transitional obligation
8. Shareholders' Equity
The Japanese Commercial Code provides that at least one-half
of the proceeds from shares issued at a price in excess of par
value be included in common stock.
The Japanese Commercial Code provides that a portion of
retained earnings in an amount equal to at least 10% of the
aggregate amount of cash dividends and certain other items
made as appropriations of retained earnings associated with cash
outlays with respect to each fiscal or interim six-month period
be appropriated as a legal reserve until such reserve equals 25%
of the stated capital. The legal reserve and additional paid-in capital
are not available for dividends, but may be used to reduce a
deficit by resolution of the shareholders or may be transferred to
common stock by resolution of the Board of Directors.
Cash dividends are approved by the shareholders after the end
of each fiscal period or declared by the Board of Directors after
the end of each interim six-month period. Such dividends are
payable to shareholders of record at the end of each such fiscal
or interim six-month period.
10. Income Taxes
The Company and its domestic subsidiaries are subject to
several taxes based on income with normal tax rates aggregating
42%, 42% and 48% for the years ended March 31, 2001, 2000,
and 1999, respectively.
As of March 31, 2001, the Company and certain consolidated
subsidiaries had tax loss carryforwards of approximately 26,936
million ($217,226 thousand), which are available to apply against
future taxable income.
Tax effects of significant temporary differences and loss carry-
forwards which resulted in deferred tax assets and liabilities at
March 31, 2001 are as follows:
A reconciliation between the normal effective statutory tax rate
for the year ended March 31, 2001 and the actual effective tax
rates reflected in the accompanying consolidated statement of
operations is as follows:
Research and development costs charged to income were 1,198 million ($9,661 thousand) for the year ended March 31, 2001.
Deferred Tax Assets:
Devaluation of marketable securities
Devaluation of investment securities
Tax loss carryforwards
Deferred interest expense
Liability for retirement benefits
Other
Less: valuation allowance
Deferred Tax Assets:
Deferred Tax Liabilities:
Inventories
Land revaluation
Other
Deferred Tax Liabilities:
Deferred Tax Assets, Net:
Millions
of yen Thousands of
U.S. dollars
Normal effective statutory tax rate
Expenses not deductible for income tax purposes
Tax benefits not recognized on operating losses of subsidiaries
Reversal of deferred tax assets of prior years
Reversal of deferred tax assets on unrealized profit included in assets resulting from transactions within the Group
Other, net
Actual effective tax rate
The Company was contingently liable as of March 31, 2001, as a
guarantor for borrowings of employees aggregating 14 million
($113 thousand).
At March 31, 2001, the Company had cancelable and non-
cancelable long-term lease agreements, principally for office
space, machinery and computer equipment. Rental expense for
12. Commitments and Contingent Liabilities
The liability (asset) for employees' retirement benefits at March
31, 2001 consisted of the following: