Casio 2001 Annual Report Download - page 30

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11. LEASE TRANSACTIONS
(1) Lessee
The amounts of outstanding future lease payments due at March 31, 2001 and 2000 and total lease expenses (including total
assumed depreciation cost and total assumed interest cost) as lessee for the years ended March 31, 2001 and 2000 were as
follows:
10. SHAREHOLDERS’ EQUITY
At the current conversion prices, 15,849 thousand shares of
common stock were issuable at March 31, 2001 upon full
conversion of the 1.9% convertible bonds.
In accordance with the Code, certain issues of shares of
common stock, including conversions of convertible bonds
and exercise of warrants, are required to be credited to the
common stock account to the extent of the greater of par
value or at least 50% of the proceeds. The remaining
amounts are credited to additional paid-in capital.
Under the Code, certain amounts of retained earnings
equal to at least 10% of cash dividends and bonuses to direc-
tors and corporate auditors must be set aside as a legal
reserve until the reserve equals 25% of common stock. The
reserve is not available for dividends but may be used to
reduce a deficit by resolution of the stockholders or may be
capitalized by resolution of the Board of Directors. The legal
reserve is included in the retained earnings.
The maximum amount that the Company can distribute
as dividends is calculated based on the unconsolidated finan-
cial statements of the Company in accordance with the Code.
As a result, the retained earnings of the Company available
for cash dividends at March 31, 2001 subject to shareholders’
approval, amounted to ¥53,462 million ($431,145 thousand).
Millions of yen Thousands of U.S. dollars
Projected benefit obligation ¥ 79,002 $ 637,113
Unrecognized prior service costs — —
Unrecognized actuarial differences (9,791) (78,960)
Less fair value of pension assets (47,109) (379,911)
Less unrecognized net transition obligation (17,612) (142,032)
Prepaid pension costs 8 64
Liabilities for severance and retirement benefits ¥ 4,498 $ 36,274
Included in the consolidated statements of income for the year ended March 31, 2001 are severance and retirement benefit
expenses comprised of the following:
Millions of yen Thousands of U.S. dollars
Service costs—benefits earned during the year ¥ 3,932 $31,709
Interest cost on projected benefit obligation 2,417 19,492
Expected return on plan assets (2,187) (17,637)
Amortization of prior service costs — —
Amortization of actuarial differences — —
Amortization of net transition obligation 1,964 15,839
Severance and retirement benefit expenses ¥ 6,126 $49,403
The discount rate and the rate of expected return on plan assets used by the Group are 3.5% and 4.5%, respectively.
The estimated amount of all retirement benefits to be paid at the future retirement date is allocated equally to each service
year using the estimated number of total service years. Actuarial gains and losses are recognized in expenses using the
straight-line method over 9–15 years (a certain period not exceeding the average of the estimated remaining service lives com-
mencing with the next period).