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In thousands of
In millions of yen U.S. dollars
-------------------------------------- -------------------
Year ended March 31 1993 1994 1995 1995
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Common stock:
Balance at beginning of year............................ Y188,252 Y188,301 Y188,764 $2,169,701
Conversion of convertible debt ......................... 49 463 241 2,770
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Balance at end of year ................................. 188,301 Y188,764 Y189,005 $2,172,471
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Additional paid-in capital:
Balance at beginning of year............................ Y297,352 Y297,423 Y297,418 $3,418,598
Conversion of convertible debt.......................... 71 (5) 225 2,586
Change in interest in a consolidated subsidiary......... --- --- 425 5,195
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Balance at end of year.................................. Y297,423 Y297,418 Y298,095 $3,426,379
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Legal reserve:
Balance at beginning of year............................ Y22,815 Y24,473 Y26,186 $300,988
Transfer from retained earnings......................... 1,658 1,713 1,683 19,344
Transfer to minority interest arising from change
in interest in a consolidated subsidiary.............. --- --- (3) (34)
Deconsolidation of an affiliated company................ --- --- (9) (103)
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Balance at end of year.................................. Y24,473 Y26,186 Y27,857 $320,195
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Retained earnings appropriated for special allowances:
Balance at beginning of year............................ Y41,709 Y46,711 Y48,256 $554,667
Appropriation of retained earnings
for (reversal of) special allowances, net of taxes.... 5,002 1,545 (2,162) (24,851)
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Balance at end of year ................................. Y46,711 Y48,256 Y46,094 $529,816
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Cumulative translation adjustments:
Balance at beginning of year............................ Y (9,248) Y(21,335) Y(36,768) $(422,621)
Translation adjustment for the year..................... (12,087) (15,433) (12,142) (139,563)
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Balance at end of year.................................. Y(21,335) Y(36,768) Y(48,910) (562,184)
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Treasury stock, at cost:
Balance at beginning of year............................ Y (3) Y (2) Y (6) $ (69)
Net change resulting from purchase and sales of
fractional shares of less than "One Unit" as defined
by the Japanese Commercial Code....................... 1 (4) 4 46
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Balance at end of year.................................. Y (2) Y (6) Y (2) $ (23)
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The number of issuances of common stock in connection with conversions of convertible debt for the years ended March 31, 1993, 1994 and 1995 were 273,333 shares, 755,334 shares and 1,150,138 shares, respectively.
Prior to 1985 the parent company made free share distributions of 233,182,146 shares. The cumulative amount of the fair value of these shares at the time of issuance was 258,755 million yen ($2,974,195 thousand). Had the company accounted for these free share distributions in the manner used by United States companies, that amount would have been transferred from retained earnings to appropriate capital accounts.
During the year ended March 31, 1995, a certain consolidated investee issued shares to third parties upon conversions of convertible debt to common stock at an amount per share in excess of the company's average per share carrying value. This resulted in an increase of 452 million yen ($5,195 thousand) in the shareholders' equity of the investee applicable to the company and that amount was credited to additional paid-in capital.
The Japanese Commercial Code provides that an amount equal to at least 10 percent of cash dividends and other distributions from retained earnings paid by the parent company and its Japanese subsidiaries be appropriated as a legal reserve. No further appropriation is required when the legal reserve equals 25 percent of their respective stated capital.
The amount of retained earnings available for dividends is based on the parent company's retained earnings determined in accordance with generally accepted accounting principles and the Commercial Code in Japan. The appropriations of retained earnings for the year ended March 31, 1995, as incorporated in the accompanying consolidated financial statements, include year-end dividends of 7,707 million yen ($88,586 thousand) which, in accordance with the Commercial Code, will be proposed for approval at the Ordinary General Meeting of Shareholders to be held on June 29, 1995 and will be recorded in the statutory books of account on that date.
