JVC 2002 Annual Report Download - page 37

ANNUAL REPORT 2 0 0 2 3 5
As a result of adopting tax-effect accounting, deferred tax assets
and long-term deferred tax assets at March 31, 2000 were decreased
by ¥6,170 million and ¥14,729 million, respectively, deferred tax
liabilities and long-term deferred tax liabilities at that date were
increased by ¥460 million and ¥44 million, respectively, net loss
for the year ended March 31, 2000 was decreased by ¥1,959 million,
and the retained earnings at April 1, 1999 was decreased by
¥27,259 million.
Employees’ severance and retirement benefits
The Company has funded pension plans and unfunded benefit plans
to provide retirement benefits for substantially all employees. Approxi-
mately 85% of total retirement benefits for employees is covered by
funded pension plans.
Upon retirement or termination of employment for reasons other
than dismissal for cause, eligible employees are entitled to lump-sum
and/or annuity payments based on the current rates of their pay and
length of service.
At March 31, 2000, employees’ retirement benefits were prin-
cipally stated at 40% (100% for certain employees whose age
reached 55) of the amount which would be required to be paid (less
the amount which is expected to be covered by the pension plans)
if all eligible employees voluntarily terminated their employment at
the balance sheet date, plus the unamortized balance of certain
previously accumulated amounts.
Effective April 1, 2000, the Companies adopted the new accounting
standard, “Opinion on Setting Accounting Standard for Employees’
Severance and Pension Benefits,” issued by the Business Accounting
Deliberation Council on June 16, 1998 (the “New Accounting Standard”).
Under the New Accounting Standard, the liabilities and expenses
for severance and retirement benefits are determined based on the
amounts actuarially calculated using certain assumptions.
The Companies provided allowance for employees’ severance and
retirement benefits at March 31, 2001 based on the estimated
amounts of projected benefit obligation and the fair value of the plan
assets at that date.
The excess of the projected benefit obligation over the total of the
fair value of pension assets as of April 1, 2000 and the liabilities for
severance and retirement benefits recorded as of April 1, 2000 (the
“net transition obligation”) amounted to ¥41,686 million. The net
transition obligation will be recognized in expenses in equal amounts
primarily over 15 years commencing with the year ended March 31,
2001. Prior service costs are recognized in income or expenses using
the straight-line method over 10 years, and actuarial gains and losses
are recognized in expenses using the straight-line method over 10 years
commencing with the succeeding period.
As a result of the adoption of the new accounting standard, in
the year ended March 31, 2001, severance and retirement benefit
expenses increased by ¥595 million, and income before income taxes
decreased by ¥557 million compared with what would have been
recorded under the previous accounting standard.
Effect on segment information is described in Note 14.
Amounts per share of common stock
The computation of net income per share is based on the weighted-
average number of shares of common stock outstanding during each year.
Diluted net income per share assumes dilution that could occur if
convertible bonds or similar securities were converted into common
stock exercised to result in the issuance of common stock. As the
result of computation for the year ended March 31, 2001, and as the
Company reported net losses for the years ended March 31, 2002 and
2000, inclusion of potential common shares would have an antidilutive
effect on per share amounts. Accordingly, the Company’s basic and
diluted earnings per share computations are the same for the periods
presented.
Cash dividends per share represent the actual amount declared as
applicable to the respective years.
Reclassifications
Certain prior year amounts have been reclassified to conform to the
2002 presentation. These changes had no impact on previously
reported results of operations or stockholders’ equity.
3 . TRANSACTIONS WITH MATSUSHITA ELECTRIC I NDUSTRIAL
CO., LTD.
The Company is a subsidiary of Matsushita Electric Industrial Co.,
Ltd. (“Matsushita”). At March 31, 2002, Matsushita held 133,227
thousand shares of common stock of the Company, or 52.40% of the
total outstanding shares.
Major account balances with Matsushita at March 31, 2002 and
2001 were as follows:
Thousands of
Millions of yen U.S. dollars
2 0 0 2 20 01 2 0 0 2
Due from Matsushita ¥ 3 4 3 ¥ 239 $ 2 ,5 7 9
Due to Matsushita 2 ,3 6 1 2,781 17,752
Sales to and purchases from Matsushita for the years ended March
31, 2002, 2001 and 2000 were as follows:
Thousands of
Millions of yen U.S. dollars
2 0 0 2 2001 2000 2 0 0 2
Net sales ¥ 1,25 6 ¥ 1,148 ¥ 900 $ 9 ,4 4 4
Net purchases 2 0 ,6 8 3 36,898 35,879 1 5 5 , 5 1 1
4 . IN VENTORI ES
Inventories at March 31, 2002 and 2001 were as follows:
Thousands of
Millions of yen U.S. dollars
2 0 0 2 2001 2 0 0 2
Finished goods ¥ 8 5,8 1 5 ¥108,660 $ 6 4 5 ,2 2 6
Work in process 13,166 17,039 98,992
Raw materials and
supplies 27,082 29,645 2 0 3 , 6 2 4
¥126,063 ¥155,344 $ 9 4 7 , 8 4 2
5 . SECU RI TIES
The following tables summarize acquisition costs, book values and
fair value of securities with available fair values as of March 31,
2002 and 2001:
(a) Trading securities
Thousands of
Millions of yen U.S. dollars
2 0 0 2 20 01 2 0 0 2
Book value ¥ —¥2,464 $ —
Amount of net unrealized gains
or losses included in the
income statement (280) 114 (2 ,1 0 5 )