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In thousands of
In millions of yen U.S. dollars
-------------------------------------- -------------------
Year ended March 31 1994 1995 1996 1996
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Common stock:
Balance at beginning of year............................ Y188,301 Y188,764 Y189,005 $1,766,402
Conversion of convertible debt ......................... 463 241 2,289 21,392
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Balance at end of year ................................. Y188,764 Y189,005 Y191,294 $1,787,794
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Additional paid-in capital:
Balance at beginning of year............................ Y297,423 Y297,418 Y298,095 $2,785,935
Conversion of convertible debt.......................... (5) 225 2,279 21,299
Change in interest in a consolidated subsidiary......... --- 452 --- ---
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Balance at end of year.................................. Y297,418 Y298,095 Y300,374 $2,807,234
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Legal reserve:
Balance at beginning of year............................ Y 24,473 Y 26,186 Y 27,857 $ 260,346
Transfer from retained earnings......................... 1,713 1,683 1,969 18,402
Transfer to minority interest arising from change
in interest in a consolidated subsidiary.............. --- (3) --- ---
Deconsolidation of an affiliated company................ --- (9) --- ---
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Balance at end of year.................................. Y 26,186 Y 27,857 Y 29,826 $ 278,748
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Cumulative translation adjustments:
Balance at beginning of year............................ Y(21,335) Y(36,768) Y(48,910) $ (457,103)
Translation adjustment for the year..................... (15,433) (12,142) 23,374 218,449
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Balance at end of year.................................. Y(36,768) Y(48,910) Y(25,536) $ (238,654)
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Treasury stock, at cost:
Balance at beginning of year............................ Y (2) Y (6) Y (2) $ (19)
Net change resulting from purchase and sales of
fractional shares of less than "One Unit" as defined
by the Japanese Commercial Code....................... (4) 4 (5) (47)
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Balance at end of year.................................. Y (6) Y (2) Y (7) $ (66)
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The number of issuances of common stock in connection with conversions of convertible debt for the years ended March 31, 1994, 1995 and 1996 were 755,334 shares, 1,150,138 shares and 4,874,097 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 ($2,418,271 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 ($4,224 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, 1996, as incorporated in the accompanying consolidated financial statements, include year-end dividends of 9,277 million yen ($86,701 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 27, 1996 and will be recorded in the statutory books of account on that date.
