Olympus 2014 Annual Report Download - page 47

16. Contingent Liabilities
The Company and its consolidated subsidiaries were contingently liable for notes and bills discounted of ¥195 million and ¥331 million
($3,214 thousand) as of March 31, 2013 and 2014, respectively. The Company and its consolidated subsidiaries were also contingently
liable as guarantors of borrowings, primarily for housing loans to employees, amounting to ¥93 million and ¥65 million ($631 thousand),
respectively, and as guarantors of borrowings from banks to third parties, amounting to ¥2,000 million and ¥843 million ($8,184 thousand),
respectively, as of March 31, 2013 and 2014.
Concerning the Company’s deferral of recognition of losses on securities investments, etc., the Company has been fi led lawsuits mainly
by the shareholders. A provision for loss on litigation was provided for the year ended March 31, 2014 (Note 24 “Provision for loss on litiga-
tion”) at an amount considered necessary, however, there is a risk that the outcome may adversely affect the consolidated fi nancial results in
the future and an additional provision for loss on litigation may be necessary depending on the progress of the lawsuits.
17. Pledged Assets
The following assets were pledged as collateral for long-term debt, current maturities of long-term debt and short-term borrowings as of
March 31, 2013 and 2014:
Millions of yen
Thousands of
U.S. dollars
2013 2014 2014
Cash and deposits ............................................................................................................................... ¥ 2,000 ¥ — $ —
Lease receivables and leased investment assets .................................................................................. 8,257 8,393 81,486
Buildings and structures ....................................................................................................................... 980 ——
Machinery and equipment .................................................................................................................... 443 ——
Other assets ......................................................................................................................................... 4,808 5,081 49,330
¥16,488 ¥13,474 $130,816
The obligations secured by such collateral were as follows:
Millions of yen
Thousands of
U.S. dollars
2013 2014 2014
Long-term debt .................................................................................................................................... ¥ 4,109 ¥ 5,081 $ 49,330
Current maturities of long-term debt ..................................................................................................... 93 ——
Short-term borrowings .......................................................................................................................... 8,257 8,393 81,486
¥12,459 ¥13,474 $130,816
18. Selling, General and Administrative Expenses
The following table summarizes the major components of selling, general and administrative expenses for the years ended March 31, 2013
and 2014:
Millions of yen
Thousands of
U.S. dollars
2013 2014 2014
Advertising and promotion expenses .................................................................................................... ¥ 39,946 ¥ 41,885 $ 406,650
Salaries and allowance ......................................................................................................................... 104,079 113,761 1,104,476
Bonuses ............................................................................................................................................... 21,699 26,085 253,252
Retirement benefi t expenses ................................................................................................................. 11,517 8,650 83,981
Amortization of goodwill ........................................................................................................................ 9,683 9,457 91,816
Research and development expenses .................................................................................................. 28,410 29,174 283,243
Depreciation and amortization .............................................................................................................. 23,070 26,002 252,447
The total of research and development expenses included in “Selling, general and administrative expenses” and “cost of sales” for the years
ended March 31, 2013 and 2014 amounted to ¥63,379 million and ¥66,796 million ($648,505 thousand), respectively.
Under the Law, all additional paid-in capital and legal earnings reserve may be transferred to other capital surplus and other retained
earnings, respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated fi nancial statements
ofthe Company in accordance with the Law.
(1) March 31, 2013
A summary of information regarding the Consolidated Statement of Changes in Net Assets for the year ended March 31, 2013 was as follows:
Total number and class of shares issued and treasury stock
Class of shares
As of
April 1, 2012
(Number of shares)
Increase
(Number of shares)
Decrease
(Number of shares)
As of
March 31, 2013
(Number of shares)
Shares issued:
Common stock (Note 1) ................................................................................... 271,283,608 34,387,900 — 305,671,508
Treasury stock:
Common stock (Note 2) ................................................................................... 4,421,878 3,904 — 4,425,782
Notes:
1. The increase in the number of issued shares of common stock includes 34,787,900 shares through the issuance of shares through third-party allotment.
2. The increase in the number of shares of common stock in treasury includes 3,904 shares through the purchase of stock less than one trading unit.
Dividends paid
There were no dividends paid in the year ended March 31, 2013, and there were no dividends whose record date is in the year ended March
31, 2013 but whose effective date is in the year ending March 31, 2014.
(2) March 31, 2014
A summary of information regarding the Consolidated Statement of Changes in Net Assets for the year ended March 31, 2014 was
as follows:
Total number and class of shares issued and treasury stock
Class of shares
As of
April1, 2013
(Numberofshares)
Increase
(Numberofshares)
Decrease
(Numberofshares)
As of
March31,2014
(Numberofshares)
Shares issued:
Common stock (Note 1) ................................................................................... 305,671,508 37,000,000 — 342,671,508
Treasury stock:
Common stock (Notes 2 and 3) ........................................................................ 4,425,782 5,281 4,000,000 431,063
Notes:
1. The increase in the number of issued shares of common stock includes 37,000,000 shares through public offering (offering through a book building method).
2. The increase in the number of share of common stock in treasury includes 5,281 shares through the purchase of stock of less than one trading unit.
3. The decrease in the number of share of common stock in treasury includes 4,000,000 treasury shares disposed through public offering (offering through a book building method).
Share subscription rights
Please refer to Note 13 “Stock option plans.”
Dividends paid
There were no dividends paid in the year ended March 31, 2014, and there were no dividends whose record date is in the year ended March
31, 2014 but whose effective date is in the year ending March 31, 2015.
Notes to the Consolidated Financial Statements
91
OLYMPUS Annual Report 2014
90 OLYMPUS Annual Report 2014