Casio 2005 Annual Report Download - page 37

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ANNUAL REPORT 2005
14. CONTINGENT LIABILITIES
At March 31, 2005, the Group was contingently liable for trade notes and export drafts discounted with banks in the amount of
¥2,457 million ($22,963 thousand) and as guarantor of others for bank loans in the amount of ¥869 million ($8,121 thousand).
15. STOCK OPTION
By special resolution at the 46th annual shareholders’ meeting held on June 27, 2002, the Company introduced a stock option plan
in accordance with Article 280-20, 21 of the Commercial Code in Japan, and granted stock purchase rights at advantageous terms
to directors, corporate auditors and employees of the Company and subsidiaries, as of June 27, 2002.
The stock purchase rights can be exercised at a price of ¥699 ($6.53) per share in the period from July 1, 2004 to June 30, 2009,
and a total of 585 thousand shares of common stock could be issued by the exercise of these rights. The exercise price of stock pur-
chase rights would be adjusted, if the Company issues new shares at a price below the market price.
By special resolution at the 47th annual shareholders’ meeting held on June 27, 2003, the Company introduced a stock option
plan in accordance with Article 280-20, 21 of the Commercial Code in Japan, and granted stock purchase rights at advantageous
terms to directors, corporate auditors and employees of the Company and subsidiaries, as of June 27, 2003.
The stock purchase rights can be exercised at a price of ¥1,221 ($11.41) per share in the period from July 1, 2005 to June 30,
2010, and a total of 280 thousand shares of common stock could be issued by the exercise of these rights. The exercise price of
stock purchase rights would be adjusted, if the Company issues new shares at a price below the market price.
By special resolution at the 48th annual shareholders’ meeting held on June 29, 2004, the Company introduced a stock option
plan in accordance with Article 280-20, 21 of the Commercial Code in Japan, and granted stock purchase rights at advantageous
terms to directors, corporate auditors and employees of the Company and subsidiaries, as of June 29, 2004.
The stock purchase rights can be exercised at a price of ¥1,575 ($14.72) per share in the period from July 1, 2006 to June 30,
2011, and a total of 264 thousand shares of common stock could be issued by the exercise of these rights. The exercise price of
stock purchase rights would be adjusted, if the Company issues new shares at a price below the market price.
16. LOSS ON IMPAIRMENT OF FIXED ASSETS
During the current fiscal year ended March 31, 2005, the Company and its domestic consolidated subsidiaries recognized loss on
impairment of fixed assets on following group of assets.
Use Type of assets Location
Warehouse used for other business Buildings, land Kojimachi Bussan Co., Ltd.
(Saitama City, Saitama)
Idle properties Buildings and structures, machinery and Public health facilities of Casio
equipment, land, and other Computer Co., Ltd.
(Tachikawa City, Tokyo), and other
The Company and its domestic consolidated subsidiaries classified fixed assets into groups mainly by the type of managerial
accounting segments whose cash flows were grasped continually, and classified idle properties into groups by the type of respective
properties.
Carrying amounts of other warehouse used for business were devalued to their recoverable amounts, owing to substantial
decline in the fair market value. Carrying amounts of idle properties were devalued to their recoverable amounts, owing to no pos-
sibilities of using in the future.
As a result, the Company and its domestic consolidated subsidiaries recognized loss on impairment of fixed assets in the amount
of ¥1,494 million ($13,963 thousand), which consisted of land ¥1,007 million ($9,411 thousand), buildings and structures ¥257
million ($2,402 thousand), machinery and equipment ¥189 million ($1,767 thousand) and other ¥41 million ($383 thousand).
Recoverable amounts of this group of assets were the amount of net selling price (fair value less costs to sell). The Company and
its domestic consolidated subsidiaries mainly used estimated value of the respective firms and appraisal value prepared by real estate
appraisers for calculating net selling price.
17. SUBSEQUENT EVENTS
At the annual shareholders’ meeting held on June 29, 2005, the Company’s shareholders approved the payment of a cash dividend
of ¥17.00 ($0.16) per share aggregating ¥4,515 million ($42,196 thousand) to shareholders of record as of March 31, 2005 and
the payments of bonuses to directors and corporate auditors totaling ¥150 million ($1,402 thousand).