Kenwood 2000 Annual Report Download - page 25

Long-term debt as of March 31, 2000 and 1999, consisted of the following:
Depreciation expense and interest expense, which are not
reflected in the accompanying statement of operations, computed
by straight-line method and the interest method are as follows:
Millions of yen
¥ 4,924
¥ 10,372
¥ 3,160
6. Long-Term Debt
Short-term bank borrowings are due within one year. The interest
rates on these borrowings ranged from 0.67% to 9.0% and 0.680% to
12.50% as of March 31, 2000 and 1999, respectively.
As of March 31, 2000, short-term bank borrowings and long-term
debt in the amount of ¥148 million ($1,399 thousand) were
collateralized by land and buildings having a net book value of ¥408
million ($3,849 thousand).
5. Short-Term Bank Borrowings
Under the "Law of Land Revaluation", promulgated and revised
on March 31, 1998 and 1999, respectively, the Company elected a
one-time revaluation of its own-use land to a value based on real
estate appraisal information as of March 31, 2000. The resulting
land revaluation surplus represents unrealized appreciation of land
and is stated, net of income taxes, as a component of shareholders'
equity. There is no effect on the statement of operations. Continuous
readjustment is not permitted unless the land value subsequently
declines significantly such that the amount of the decline in value
should be removed from the land revaluation surplus account and
related deferred tax liabilities. The details of the one-time
revaluation as of March 31, 2000 were as follows:
Land before revaluation
Land after revaluation
Land revaluation surplus, net of
income taxes of ¥2,288 million
4. Revaluation Surplus
2000
¥ 1,907
¥ 176
1999
¥ 1,963
¥ 210
2000
$ 17,991
$ 1,660
Millions
of yen
Thousands of
U.S. dollars
¥ 31,458
22
14,938
—
4
46,422
145
46,567
(10,700)
¥ 35,867
¥ 22,663
27
16,756
155
20
39,621
163
39,784
(7,506)
¥ 32,278
$ 296,773
208
140,924
—
38
437,943
1,368
439,311
(100,943)
$ 338,368
Unsecured loans
Banks, 1.128%-8.400%, due through 2006
Japanese government-sponsored agencies, 2.15%-2.75%, due through 2005
Japanese insurance companies, 1.96%-2.90%, due throgh 2004
Obligations under capital leases, 12.50%, due through 2000
Others
Total unsecured loans
Mortgage loans (Note 5)
Total
Less: Current portion included in current liabilities
Millions of yen
19992000
Thousands of
U.S. dollars
2000
Depreciation expense
Interest expense
KENWOOD Corporation Annual Report 2000
23
The aggregate annual maturities of long-term debt as of March 31, 2000, were as follows:
Year ending March 31
2001
2002
2003
2004
2005 and thereafter
Millions
of yen
Thousands of
U.S. dollars
¥ 10,700
13,445
11,308
7,767
3,347
$ 100,943
126,840
106,679
73,274
31,575
$ 439,311
The Japanese Commercial Code provides that at least one-half of the
proceeds from shares issued at a price in excess of par value be included
in common stock.
The Japanese Commercial Code provides that a portion of retained
earnings in an amount equal to at least 10% of the aggregate amount of
cash dividends and certain other items made as appropriations of retained
earnings associated with cash outlays with respect to each fiscal or interim
six-month period be appropriated as a legal reserve until such reserve
equals 25% of the stated capital. The legal reserve and additional paid-in
capital are not available for dividends, but may be used to reduce a deficit
by resolution of the shareholders or may be transferred to common stock
by resolution of the Board of Directors.
Cash dividends are approved by the shareholders after the end of
each fiscal period or declared by the Board of Directors after the end
of each interim six-month period. Such dividends are payable to
shareholders of record at the end of each such fiscal or interim six-
month period.
Under the Japanese Commercial Code, the amount available for
dividends is based on retained earnings as recorded on the
Company's books. As of March 31, 2000, retained earnings recorded
on the Company's books were ¥2,122 million ($20,019 thousand)
which is available for future dividends subject to approval of the
shareholders and legal reserve requirements.
7. Shareholders' Equity
8. Research and Development Cost
Research and development costs charged to income were ¥3,125 million ($29,481 thousand) for the year ended March 31, 2000.
¥ 46,567