Sharp 2010 Annual Report Download - page 59

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The maximum amount that the Company can distribute as
dividends is calculated based on the nonconsolidated financial
statements of the Company in accordance with the Law.
Year end cash dividends are approved by the sharehold-
ers after the end of each fiscal year, and semiannual interim
cash dividends are 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
fiscal year or interim six-month period. In accordance with
the Law, final cash dividends and the related appropriations
of retained earnings have not been reflected in the financial
statements at the end of such fiscal year. However, cash
dividends per share shown in the accompanying consoli-
dated statements of operations reflect dividends applicable
to the respective period.
On June 23, 2010, the shareholders approved the declara-
tion of year end cash dividends totaling ¥11,004 million
($119,609 thousand) to shareholders of record as of March
31, 2010, covering the year then ended.
10. Contingent Liabilities
As of March 31, 2010, the Company and its consolidated subsidiaries had contingent liabilities as follows:
Yen
(millions)
U.S. Dollars
(thousands)
2010 2010
Loans guaranteed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥29,281 $318,272
¥29,281 $318,272
The Company and some of its subsidiaries are subject to
the investigations being conducted by the Directorate-General
for Competition of the European Commission etc., with
respect to TFT LCD business. In addition, civil lawsuits seek-
ing monetary damages resulting from the alleged anticom-
petitive behavior have been filed in North America and Europe
against the Company and some of its subsidiaries. The Com-
pany also received a cease and desist order and a surcharge
payment order from the Japan Fair Trade Commission. How-
ever, the Company has submitted a complaint to the Japan
Fair Trade Commission, which is currently pending.
11. Employees’ Severance and Pension Benefits
Allowance for severance and pension benefits of the Company and its domestic consolidated subsidiaries as of March 31, 2009
and 2010 consisted of the following:
Yen
(millions)
U.S. Dollars
(thousands)
2009 2010 2010
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 355,538 ¥ 355,894 $ 3,868,413
Less – fair value of plan assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (247,412) (290,914) (3,162,108)
Less – unrecognized actuarial differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (166,278) (118,781) (1,291,098)
Unrecognized prior service costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,060 29,048 315,739
Prepaid pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,571 26,456 287,565
Allowance for severance and pension benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 1,479 ¥ 1,703 $ 18,511
In addition, allowances for severance and pension benefits of ¥4,240 million as of March 31, 2009 and ¥3,759 million ($40,859
thousand) as of March 31, 2010 were provided by certain overseas consolidated subsidiaries.
Expenses for severance and pension benefits of the Company and its domestic consolidated subsidiaries for the years ended
March 31, 2009 and 2010 consisted of the following:
Yen
(millions)
U.S. Dollars
(thousands)
2009 2010 2010
Service costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 12,841 ¥ 12,841 $ 139,576
Interest costs on projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,870 8,894 96,674
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,439) (11,137) (121,054)
Recognized actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,598 12,971 140,989
Amortization of prior service costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,011) (3,011) (32,728)
Expenses for severance and pension benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 11,859 ¥ 20,558 $ 223,457
Financial Section
Annual Report 2010 57