Nikon 1998 Annual Report Download - page 27

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Nikon Corporation 25
Legal Reserve
The Commercial Code of Japan provides that an amount equal to at least 10% of cash payments made as appropriations of
retained earnings, including cash dividends and bonuses to directors and corporate auditors applicable to each fiscal year, be
appropriated as a legal reserve until such reserve equals 25% of stated capital.
This reserve is not available for dividends, but it may be used to reduce a deficit by a resolution of the shareholders, or it may
be transferred to common stock by a resolution of the Board of Directors.
Retained Earnings
Under the Commercial Code of Japan, the amount available for dividends is based on retained earnings as recorded on the
Company’s books. At March 31, 1998, retained earnings as recorded on the Company’s books were ¥56,586 million ($428,359
thousand), which is available for future dividends subject to the approval of the shareholders and legal reserve requirements.
Contingent Liabilities
Contingent liabilities at March 31, 1998 were as follows:
Thousands of
Millions of Yen U.S. Dollars
As the endorser of trade notes receivable discounted with banks ¥1,751 $ 13,258
As the guarantor of bank loans and indebtedness, principally of employees,
unconsolidated subsidiaries and associated companies 13,668 103,470
¥15,419 $116,728
Lease Payments
Total lease payments during the years ended March 31, 1998 and 1997 were as follows:
Thousands of
Millions of Yen U.S. Dollars
1998 1997 1998
¥5,032 ¥3,789 $38,095
Obligations under finance leases at March 31, 1998 were as follows:
Thousands of
Millions of Yen U.S. Dollars
Due within one year ¥4,122 $31,204
Due after one year 8,041 60,873
¥12,163 $92,077
The amount of obligations under finance leases includes the imputed interest expense portion.
Subsequent Events
(a) On April 1, 1998, the Company, upon approval by the Board of Directors, issued 2.575% yen unsecured bonds due 2005 in the
amount of ¥10,000 million ($75,700 thousand).
(b) On June 26, 1998, the Company’s shareholders approved appropriations of retained earnings as follows:
Thousands of
Millions of Yen U.S. Dollars
Cash dividends ¥1,479 $11,201
Transfer to legal reserve 150 1,136
Bonuses to directors and corporate auditors 20 151
¥1,649 $12,488
QX /NIKON AR 98 9/21 00.4.11 7:39 PM ページ 25