Sharp 2012 Annual Report Download - page 63

Annual Report 2012 61
Financial Section
Cash and cash equivalents, and Time deposits
Notes and accounts receivable (excluding other accounts receivable)
Total
¥ 247,888
343,457
¥ 591,345
¥ —
49,323
¥ 49,323
Yen (millions)
2011
Due after
one year
Due in one
year or less
8. Net Assets and Per Share Data
Under the Japanese Corporate Law (“the Law”), the entire
amount paid for new shares is required to be designated as
common stock. However, a company may, by a resolution
of the Board of Directors, designate an amount not exceed-
ing one-half of the price of the new shares as additional
paid-in capital, which is included in capital surplus.
Under the Law, in cases where a dividend distribution
of surplus is made, the smaller of an amount equal to
10% of the dividend or the excess, if any, of 25% of com-
mon stock over the total of legal earnings reserve and
additional paid-in capital must be set aside as legal earn-
ings reserve or additional paid-in capital. Legal earnings
reserve is included in retained earnings in the accompany-
ing consolidated balance sheets.
As of March 31, 2012, the total amount of legal earn-
ings reserve and additional paid-in capital exceeded 25%
of the common stock, therefore, no additional provision
is required.
Legal earnings reserve and additional paid-in capital
may not be distributed as dividends. By the resolution of
shareholders’ meeting, legal earnings reserve and addi-
tional paid-in capital may be transferred to other retained
earnings and capital surplus, respectively, which are po-
tentially available for dividends.
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 share-
holders after the end of each fiscal year, and semiannual
interim cash dividends are declared by the Board of Di-
rectors 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 consolidated statements of operations
reflect dividends applicable to the respective period.
On June 26, 2012, the shareholders approved the dec-
laration of year end cash dividends totaling ¥5,502 million
($67,926 thousand) to shareholders of record as of March
31, 2012, covering the year then ended.
9. Contingent Liabilities
As of March 31, 2012, the Company and its consolidated subsidiaries had contingent liabilities as follows:
Loans guaranteed ¥ 27,349
¥ 27,349
$ 337,642
$ 337,642
2012
Yen
(millions)
2012
U.S. Dollars
(thousands)
In relation to TFT-LCD business, the Company and
some of its subsidiaries are currently subject to the inves-
tigations being conducted by the Directorate General for
Competition of the European Commission etc., and civil
lawsuits seeking monetary damages resulting from the
alleged anticompetitive behavior have been filed against
the Company and some of its subsidiaries in North
America and Europe. The Company received a cease and
desist order and an administrative surcharge payment
order from the Japan Fair Trade Commission. However,
the Company has submitted a complaint to the Japan Fair
Trade Commission, which is currently pending.