Olympus 2015 Annual Report Download - page 51

16. Contingent Liabilities
The Company and its consolidated subsidiaries were contingently liable for notes and bills discounted of ¥331 million and ¥209 million
($1,742 thousand) as of March 31, 2014 and 2015, respectively. The Company and its consolidated subsidiaries were also contingently
liable as guarantors of borrowings, primarily for housing loans to employees, amounting to ¥65 million and ¥49 million ($408 thousand),
respectively, and as guarantors of borrowings from banks to third parties, amounting to ¥843 million and ¥3,798 million ($31,650 thousand),
respectively, as of March 31, 2014 and 2015.
Concerning the Company’s deferral of recognition of losses on securities investments, etc., the Company has damage claim or lawsuits
filed against it mainly by shareholders. A provision for loss on litigation was provided as of March 31, 2015 at an amount considered neces-
sary, however, there is a risk that the outcome may adversely affect the consolidated financial results in the future and an additional provision
for loss on litigation may be necessary depending on the progress of the lawsuits and the damage claim.
The provision for loss on litigation amounting to ¥11,000 million as of March 31, 2014 and 2015, respectively, which was presented as
the current liabilities in the consolidated balance sheets, was provided in connection with the lawsuits which were filed against the Company
by the Teachers’ Retirement System of the State of Illinois, etc. on June 28, 2012 and California State Teachers’ Retirement System, etc. on
June 27, 2013.
Since November 2011, Olympus Corporation of the Americas, which is the Company’s Americas regional headquarters, has been under
investigation by the U.S. Department of Justice relating to the U.S. Anti-kickback Act and the U.S. False Claims Act, and is currently con-
tinuing discussions with the Department of Justice to resolve this matter. A provision related to the U.S. Anti-kickback Act was provided for
the year ended March 31, 2015 (Note 23 “Loss related to the investigation under U.S. Anti-kickback Act and the related Act”) at an amount
considered necessary, however, there is a risk that the outcome may adversely affect the consolidated financial results in the future and an
additional provision for loss on litigation may be necessary depending on the progress of the investigation. The Company recorded ¥58,883
million ($490,692 thousand) for “Provision for loss related to the investigation under U.S. Anti-kickback Act and the related Act.”
17. Pledged Assets
The following assets were pledged as collateral for long-term debt, current maturities of long-term debt and short-term borrowings as of
March 31, 2014 and 2015:
Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
Lease receivables and leased investment assets ................................................................................... ¥ 8,393 ¥14,781 $123,175
Other assets .......................................................................................................................................... 5,081 6,369 53,075
¥13,474 ¥21,150 $176,250
The obligations secured by such collateral were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
Long-term debt ..................................................................................................................................... ¥ 5,081 ¥ 6,369 $ 53,075
Short-term borrowings........................................................................................................................... 8,393 14,781 123,175
¥13,474 ¥21,150 $176,250
Under the Law, all additional paid-in capital and legal earnings reserve may be transferred to other capital surplus and other retained
earnings, respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial statements
ofthe Company in accordance with the Law.
(1) March 31, 2014
A summary of information regarding the consolidated statement of changes in net assets for the year ended March 31, 2014 was as follows:
Total number and class of shares issued and treasury stock
Class of shares
As of
April 1, 2013
(Number of shares)
Increase
(Number of shares)
Decrease
(Number of shares)
As of
March 31, 2014
(Number of shares)
Shares issued:
Common stock (Note 1) .................................................................................... 305,671,508 37,000,000 — 342,671,508
Treasury stock:
Common stock (Notes 2 and 3) ......................................................................... 4,425,782 5,281 — 4,431,063
Notes:
1. The increase in the number of issued shares of common stock includes 37,000,000 shares through public offering (offering through a book building method).
2. The increase in the number of common stock in treasury includes 5,281 shares through the purchase of stock of less than one trading unit.
3. The decrease in the number of common stock in treasury includes 4,000,000 treasury shares disposed through public offering (offering through a book building method).
Share subscription rights
Please refer to Note 13 “Stock option plans.”
Dividends paid
There were no dividends paid in the year ended March 31, 2014, and there were no dividends whose record date is in the year ended March
31, 2014 but whose effective date is in the year ended March 31, 2015.
(2) March 31, 2015
A summary of information regarding the consolidated statement of changes in net assets for the year ended March 31, 2015 was as follows:
Total number and class of shares issued and treasury stock
Class of shares
As of
April 1, 2014
(Number of shares)
Increase
(Number of shares)
Decrease
(Number of shares)
As of
March 31, 2015
(Number of shares)
Shares issued:
Common stock ................................................................................................. 342,671,508 — — 342,671,508
Treasury stock:
Common stock (Note) ....................................................................................... 431,063 3,173 — 434,236
Note: The increase in the number of common stock in treasury includes 3,173 shares through the purchase of stock of less than one trading unit.
Share subscription rights
Please refer to Note 13 “Stock option plans.”
Dividends paid
There were no dividends paid in the year ended March 31, 2015.
Dividends resolved during the year ended March 31, 2015 that will be effective after March 31, 2015
Resolution Class of shares
Amount of
dividends paid
(Millions of yen) Funds of distribution
Dividend
per share (Yen) Record date Effective date
General Shareholders’ Meeting
(June 26, 2015) Common stock ¥3,422 Retained earnings ¥10.00 March 31, 2015 June 29, 2015
Notes to the Consolidated Financial Statements
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OLYMPUS Annual Report 2015
98 OLYMPUS Annual Report 2015