Nikon 1998 Annual Report Download - page 24

22 Nikon Corporation
(h) Leases
All leases are accounted for as operating leases. Under Japanese accounting standards for leases, finance leases that deem to trans-
fer 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.
(i) Income Taxes
The Company does not provide for deferred income taxes resulting from temporary differences between income calculated for taxa-
tion and accounting purposes, except that deferred taxes are recognized with respect to the elimination of unrealized intercompany
profits or losses and certain other adjustments relating to consolidation of subsidiaries’ accounts.
(j) Research and Development Costs
Expenditures for research and development activities are charged to income as incurred.
(k) Stock Splits
The Commercial Code of Japan permits Japanese companies, upon approval by the Board of Directors, to issue shares in the form
of a “stock split” to shareholders to the extent that the aggregate par value of the shares to be distributed does not exceed the
excess of the common stock account over the par value of shares issued and outstanding and to the extent that net assets per
share exceed ¥50 after a stock split.
(l) Amounts per Share
Net income per share is computed based on the weighted average number of shares of common stock outstanding during each year.
Diluted net income per share is not disclosed because it is anti-dilutive.
Dividends per share shown in the consolidated statements of income have been presented on an accrual basis and include,
in each fiscal year ended March 31, dividends approved or to be approved, but applicable to the year then ended.
Marketable Securities and Investments in Securities
Marketable securities at March 31, 1998 and 1997 were as follows:
Thousands of
Millions of Yen U.S. Dollars
1998 1997 1998
Marketable equity securities ¥15,568 ¥16,008 $117,857
Bank debentures and other 6,283 11,560 47,563
¥21,851 ¥27,569 $165,420
Investments in securities at March 31, 1998 and 1997 were principally equity securities with market quotations as follows:
Thousands of
Millions of Yen U.S. Dollars
1998 1997 1998
Equity securities ¥32,724 ¥32,672 $247,726
Trust bonds, debentures and other 70 111 530
¥32,794 ¥32,783 $248,256
Investments in unconsolidated subsidiaries and associated companies at March 31, 1998 and 1997 were all equity securities
as follows:
Thousands of
Millions of Yen U.S. Dollars
1998 1997 1998
Unconsolidated subsidiaries ¥2,816 ¥2,545 $21,323
Associated companies 349 181 2,644
¥3,166 ¥2,726 $23,967
22 Nikon Corporation
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