Epson 2008 Annual Report Download - page 36

66 Seiko Epson Corporation
67Annual Report 2008
Yen U.S. dollars
Year ended March 31
Year ended
March 31,
Cash dividends per share 2006 2007 2008 2008
Year-end ¥13.00 ¥16.00 ¥16.00 $0.16
Interim 16.00 16.00 16.00 0.16
Total ¥29.00 ¥32.00 ¥32.00 $0.32
The effective dates of the distribution for year-end and interim
cash dividends, which were paid during the year ended March 31,
2007, were June 26, 2006 and November 30, 2006, respectively. The
effective dates of the distribution for year-end and interim cash
dividends, which were paid during the year ended March 31, 2008,
were June 27, 2007 and December 5, 2007, respectively.
The proposed cash dividends of retained earnings of the Company
for the year ended March 31, 2008 approved at the general
shareholders’ meeting, which was held on June 25, 2008, was as
follows:
Millions of yen
Thousands of
U.S. dollars
Cash dividends ¥3,141 $31,358
Yen U.S. dollars
Cash dividends per share ¥16.00 $0.16
The effective date of the distribution is June 26, 2008.
The Japanese Corporation Law, which came into effect on May 1,
2006, provides that an amount equal to 10% of dividends shall be
distributed as additional paid-in capital or legal reserve on the date of
distribution until an aggregated amount of additional paid-in capital
and legal reserve equals 25% of common stock. The Commercial
Code of Japan, which was in effect before the Japanese Corporation
Law, provided that at least 10% of appropriations of retained earnings
that were paid in cash shall be appropriated as legal reserve until an
aggregated amount of additional paid-in capital and the legal reserve
equaled 25% of common stock.
The Japanese Corporation Law stipulates requirements on
distributions of retained earnings similar to those of the Commercial
Code of Japan. Under the Japanese Corporation Law, such
distributions can be made at any time by resolution of the shareholders,
or by the board of directors if certain conditions are met.
Under the Japanese Corporation Law, the distributions of retained
earnings for a fiscal year is made by resolution of shareholders at a
general meeting to be held within three months after the balance sheet
date, and accordingly such distributions are recorded at the time of
resolution.
The amounts of year-end cash dividends per share and interim
cash dividends per share, which the Company paid to the shareholders
of record as at the respective period-ends during the years ended
March 31, 2006, 2007 and 2008, were as follows:
13. Equity/Net assets
The composition of net pension and severance costs for the years ended March 31, 2006, 2007 and 2008 was as follows:
Millions of yen
Thousands of
U.S. dollars
Year ended March 31
Year ended March 31,
2006 2007 2008 2008
Service cost ¥ 7,889 ¥ 7,376 ¥ 8,173 $ 81,578
Interest cost 4,862 5,415 5,613 56,032
Expected return on plan assets (5,079) (6,050) (6,271) (62,592)
Amortization and expenses:
Prior service costs (2,733) (2,619) (2,340) (23,357)
Actuarial losses 8,382 3,119 175 1,750
Net pension and severance costs 13,321 7,241 5,351 53,411
Contribution to defined contribution pension plan 2,976 3,258 3,299 32,929
¥16,297 ¥10,499 ¥ 8,650 $ 86,340
The assumptions used for the actuarial computation of the retirement benefit obligations for the years ended March 31, 2006, 2007 and 2008
were primarily as follows:
Year ended March 31
2006 2007 2008
Discount rate 2.5% 2.5% 2.5%
Long-term rate of return on plan assets 3.0 3.0 3.0
Calculation of net income (loss) per share for the years ended March 31, 2006, 2007 and 2008 was as follows:
14. Net income (loss) per share
Millions of yen
Thousands of
U.S. dollars
Year ended March 31
Year ended
March 31,
2006 2007 2008 2008
Net income (loss) attributable to common shares ¥(17,917) ¥(7,094) ¥19,093 $190,574
Thousands of shares
Weighted-average number of common shares outstanding 196,364 196,363 196,362
Yen U.S. dollars
Net income (loss) per share ¥(91.24) ¥(36.13) ¥97.24 $0.97
Diluted net income per share was not calculated herein since
Epson had no potential common shares, which have dilutive effect
issuable upon conversion of convertible bonds, outstanding for the
years ended March 31, 2006 and 2007. Epson had no dilutive potential
common shares, such as convertible debt or warrants, outstanding
during the year ended March 31, 2008.