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89
Hitachi, Ltd. Annual Report 2010
13. CAPITAL SURPLUS
The change in capital surplus includes the effect of changes in the Company’s ownership interest in its consolidated
subsidiaries. The net loss attributable to Hitachi, Ltd. and transfers from (to) noncontrolling interests for the year ended
March 31, 2010 is as follows:
Millions of yen
Thousands of
U.S. dollars
2010 2010
Net loss attributable to Hitachi, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(106,961) $(1,150,118)
Transfers from (to) the noncontrolling interests
Decrease in capital surplus for purchase of five listed subsidiaries’
ownership interests to convert them into wholly owned subsidiaries . . . . . . . . . . . (58,175) (625,538)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,823) (73,365)
Net transfers from (to) noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (64,998) (698,903)
Change from net loss attributable to Hitachi, Ltd. and transfers from (to)
noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(171,959) $(1,849,021)
The purchase of five listed subsidiaries’ ownership interests is related to the purchase of the noncontrolling interests of Hitachi
Information Systems, Ltd., Hitachi Software Engineering Co., Ltd., Hitachi Systems & Services, Ltd., Hitachi Plant Technologies,
Ltd. and Hitachi Maxell, Ltd. for the purpose of converting them into wholly owned subsidiaries. As a result, Hitachi Information
Systems, Ltd., Hitachi Software Engineering Co., Ltd. and Hitachi Systems & Services, Ltd. have been converted into wholly
owned subsidiaries during the year ended March 31, 2010, and Hitachi Plant Technologies, Ltd. and Hitachi Maxell, Ltd. have
been wholly owned subsidiaries since April 1, 2010. The total decrease in noncontrolling interests during the year ended March
31, 2010 resulting from these equity transactions was ¥193,880 million ($2,084,731 thousand).
14. LEGAL RESERVE AND RETAINED EARNINGS, AND DIVIDENDS
The Japanese Company Law (JCL) provides that earnings in an amount equal to 10 percent of appropriations of retained
earnings to be paid as dividends should be appropriated as a capital surplus or a legal reserve until the total of capital surplus
and legal reserve equals 25 percent of stated common stock. In addition to transfer from capital surplus to stated common
stock, either capital surplus or legal reserve may be available for dividends by resolution of the shareholders’ meeting.
Dividends during the years ended March 31, 2009 and 2008 represent dividends declared during those years. For the year
ended March 31, 2010, the Company did not pay any dividends. On March 18, 2010, the Board of Directors decided not to
pay a dividend for the second half of the year ended March 31, 2010.
Cash dividends per share for the years ended March 31, 2009 and 2008 were ¥3.0 and ¥6.0, respectively, based on dividends
declared with respect to earnings for the periods.