Casio 2006 Annual Report Download - page 38

36 CASIO COMPUTER CO., LTD.
11. Shareholders’ Equity
Under the Japanese laws and regulations, the entire amount of payment for new shares is required to be designated as common
stock, although, generally, a company may, by a resolution of the Board of Directors, designate an amount not exceeding one-half
of the price of the new shares as additional paid-in capital.
Japanese Company Law (“the Law”) became effective on May 1, 2006, and, at the same time, the Japanese Commercial Code
was repealed (“the Code”).
Under the Code, companies were required to set aside an amount equal to at least 10% of cash dividends and other cash
appropriations as legal earnings reserve until the total of legal earnings reserve and additional paid-in capital equaled 25% of com-
mon stock. Under the Law, in cases when dividends are paid, an amount equal to 10% of the dividends or the excess of 25% of
common stock over the total of additional paid-in capital and legal earnings reserve, whichever is the smaller, must be set aside as
additional paid-in capital or legal earnings reserve. Under the Code, additional paid-in capital and legal earnings reserve were avail-
able for distribution by the resolution of the shareholders’ meeting as long as the total amount of legal earnings reserve and addi-
tional paid-in capital remained equal to or exceeded 25% of common stock. Under the Law, even when the total amount of
additional paid-in capital and legal earnings reserve is less than 25% of common stock, additional paid-in capital and legal earnings
reserve may be available for dividends if there are sufficient distributable surplus. Under the Code, legal earnings reserve and addi-
tional paid-in capital could be used to eliminate or reduce a deficit by a resolution of the shareholders’ meeting or may be capital-
ized by a resolution of the Board of Directors. Under the Law, both of those appropriations require a resolution of the shareholders’
meeting. Legal earnings reserve is included in retained earnings in the accompanying consolidated balance sheets.
12. Lease Transactions
(1) Finance leases
The amounts of outstanding future lease payments due at March 31, 2006 and 2005 and total lease expenses (including total
assumed depreciation cost and total assumed interest cost) as lessee for the years ended March 31, 2006 and 2005 were as follows:
Thousands of
Millions of Yen U.S. Dollars
2006 2005 2006
Future lease payments:
Due within one year .............................................................................. ¥4,132 ¥4,473 $35,316
Due over one year ................................................................................ 5,898 7,288 50,410
Total...................................................................................................... ¥10,030 ¥11,761 $85,726
Total lease expenses ................................................................................... ¥5,194 ¥5,192 $44,393
Total assumed depreciation cost ................................................................. ¥4,746 ¥4,725 $40,564
Total assumed interest cost......................................................................... ¥387 ¥ 470 $3,308
Assumed data as to acquisition cost, accumulated depreciation and net book value of the leased assets under the finance lease
contracts as lessee at March 31, 2006 and 2005 were summarized as follows:
Millions of Yen Thousands of U.S. Dollars
2006 2005 2006
Acquisition Accumulated Net book Acquisition Accumulated Net book Acquisition Accumulated Net book
cost depreciation value cost depreciation value cost depreciation value
Machinery ........................................ ¥17,712 ¥11,604 ¥6,108 ¥17,620 ¥ 9,524 ¥ 8,096 $151,385 $ 99,180 $52,205
Equipment ........................................ 4,272 1,958 2,314 3,732 1,647 2,085 36,513 16,735 19,778
Other ................................................ 2,077 834 1,243 1,921 770 1,151 17,752 7,128 10,624
Total ............................................ ¥24,061 ¥14,396 ¥9,665 ¥23,273 ¥11,941 ¥11,332 $205,650 $123,043 $82,607
(2) Operating leases
The amount of outstanding future lease payments due at March 31, 2006 and 2005 were as follows:
Thousands of
Millions of Yen U.S. Dollars
2006 2005 2006
Future lease payments:
Due within one year .............................................................................. ¥279 ¥161 $2,385
Due over one year ................................................................................. 79 170 675
Total...................................................................................................... ¥358 ¥331 $3,060