Casio 2006 Annual Report Download - page 41

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Annual Report 2006
14. Contingent Liabilities
At March 31, 2006, the Group was contingently liable for trade notes and export drafts discounted with banks in the amount of
¥2,504 million ($21,402 thousand) and as guarantor of others for bank loans in the amount of ¥220 million ($1,880 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 ($5.97) per share in the period from July 1, 2004 to June 30,
2009, and a total of 303 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 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 ($10.44) per share in the period from July 1, 2005 to June 30,
2010, and a total of 140 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 ($13.46) 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 fiscal year ended March 31, 2005, the Company and its domestic consolidated subsidiaries recognized loss on impair-
ment 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, which consisted of land ¥1,007 million, buildings and structures ¥257 million, machinery and equipment
¥189 million and other ¥41 million.
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, 2006, the Company’s shareholders approved the payment of a cash dividend
of ¥20.00 ($0.17) per share aggregating ¥5,319 million ($45,462 thousand) to shareholders of record as of March 31, 2006 and
the payments of bonuses to directors and corporate auditors totaling ¥155 million ($1,325 thousand).