Olympus 2006 Annual Report Download - page 45

OLYMPUS 2006 43
12. SHAREHOLDERS’ EQUITY
Under the Commercial Code of Japan (the “Code”), the following are provided:
• The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial statements of the
Company in accordance with the Code.
• The entire amount of the issue price of shares is required to be accounted for as capital, although a company may, by resolution of its
Board of Directors, account for an amount not exceeding one-half of the issue price of the new shares as additional paid-in capital, which
is included in capital surplus.
• Dividends are approved by the shareholders’ meeting held subsequent to the statutory fiscal period to which the dividends are payable to
shareholders of record at the end of such a fiscal period.
• Semi-annual dividends are approved by the Board of Directors after the end of each first six-month period to which the dividends are
payable to shareholders of record at the end of the interim six-month period.
13. CONTINGENT LIABILITIES
The Company and its consolidated subsidiaries were contingently liable for notes and bills discounted of ¥3,485 million ($30,304 thousand)
and endorsed of ¥216 million ($1,878 thousand) as of March 31, 2006. As of March 31, 2006, the Company and its consolidated sub-
sidiaries were also contingently liable as guarantors of borrowings, primarily for housing loans to employees, amounting to ¥472 million
($4,104 thousand), and secondly for borrowing from banks to subsidiaries, amounting to ¥1,322 million ($11,496 thousand).
14. PLEDGED ASSETS
The following assets were pledged as collateral for short-term borrowings and long-term debt as of March 31, 2006 and 2005:
Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Cash and time deposits............................................................................................ ¥1,655 ¥1,844 $14,391
Accounts receivable ................................................................................................ 506 —4,400
Inventories............................................................................................................. 303 —2,635
Land .................................................................................................................. 1,755 194 15,261
Buildings and structures ........................................................................................... 1,781 3,973 15,487
Machinery and equipment........................................................................................ 135 43 1,174
Investment securities ................................................................................................ —100 —
Other assets........................................................................................................... 53 30 461
¥6,188 ¥6,184 $53,809
The obligations secured by such collateral were as follows: Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Long-term debt........................................................................................................ ¥3,685 ¥5,309 $32,043
Short-term borrowings.............................................................................................. 501 221 4,357
.................................................................................................................. ¥4,186 ¥5,530 $36,400
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