Casio 2001 Annual Report Download - page 25

23
The Company and its consolidated subsidiaries in Japan
provided liabilities for severance and retirement benefits at
March 31, 2001 based on the estimated amounts of projected
benefit obligation and the fair value of the plan assets at that
date.
The excess of the projected benefit obligation over the
total of the fair value of pension assets as of April 1, 2000 and
the liabilities for severance and retirement benefits recorded
as of April 1, 2000 (the “net transition obligation”) amounted to
¥19,576 million ($157,871 thousand), The net transition obliga-
tion will be recognized in expenses in equal amounts over 10
years commencing with the year ended March 31, 2001.
As a result of the adoption of the new accounting stan-
dard, in the year ended March 31, 2001, severance and
retirement benefit expenses increased by ¥2,794 million
($22,532 thousand), operating income and income before
income taxes and minority interests decreased by ¥2,762 mil-
lion ($22,274 thousand) compared with what would have been
recorded under the previous accounting standard.
Accounting for certain lease transactions—Finance leases,
which do not transfer titles to lessees, are accounted for in the
same manner as operating leases under accounting princi-
ples generally accepted in Japan.
Amortization of goodwill—Goodwill is amortized over 5 years
by the straight-line method. The amount of goodwill is
included in other assets in consolidated balance sheets.
Income taxes—Taxes on income consist of corporation,
inhabitants and enterprise taxes.
Deferred income taxes are provided for the items relating
to intercompany profit elimination in connection with calcula-
tion of consolidated results of operations. In addition, some
foreign subsidiaries recognize the deferred income taxes in
accordance with accounting practices prevailing in their
respective countries of domicile.
The Group recognizes tax effects of temporary differences
between the financial statement basis and the tax basis of
assets and liabilities. The provision for income taxes is com-
puted based on the income before income taxes and minority
interests included in the statements of income of each of the
Group. The asset and liability approach is used to recognize
deferred tax assets and liabilities for the expected future tax
consequences of temporary differences.
Appropriations of retained earnings—Appropriations of
retained earnings are accounted for and reflected in the
accompanying consolidated financial statements when
approved by the shareholders.
Amounts per share of common stock—Net income per share
of common stock has been computed based on the weighted
average number of shares of common stock outstanding dur-
ing each fiscal year (less the treasury stock). For diluted net
income per share, the number of shares outstanding is
adjusted to assume the conversion of the convertible bonds.
Related interest expense, net of income taxes, is eliminated.
Cash dividends per share represent the actual amount
applicable to the respective years.
3. CASH AND CASH EQUIVALENTS AND STATEMENTS OF CASH FLOWS
Cash and cash equivalents at March 31, 2001 and 2000 consisted of the following:
Thousands of
Millions of yen U.S. dollars
2001 2000 2001
Cash and time deposits ¥53,540 ¥ 61,050 $431,774
Time deposits over three months (653) (944) (5,266)
Shares and bonds within three months 30,183 53,645 243,411
Cash and cash equivalents ¥83,070 ¥113,751 $669,919
The amounts of assets and liabilities at September 30, 2000 of The Casio Lease Co., Ltd. excluded from consolidation due to
sales of a part of the equity in the company were as follows:
Thousands of
Millions of yen U.S. dollars
Current assets ¥ 9,917 $ 79,976
Long-term assets* 45,931 370,411
Total assets ¥55,848 $450,387
*Including property, plant and equipment and investments and other assets
Thousands of
Millions of yen U.S. dollars
Current liabilities ¥27,989 $225,718
Long-term liabilities 23,193 187,040
Total liabilities ¥51,182 $412,758