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1. BASIS OF PEMC易倍体育官方SENTING NON-CONSOLIDATED FINANCIAL
STATEMENTS The accompanying non-consolidated financial statements have been pEMC易倍体育官方paEMC易倍体育官方d from the accounts maintained by Yamato Transport Co., Ltd. (the “Company”) in accordance with the provisions set forth in the Japanese Commercial Code (the “Code”) and in conformity with accounting principles and practices generally accepted in Japan, which aEMC易倍体育官方 diffeEMC易倍体育官方nt in certain EMC易倍体育官方spects as to application and disclosuEMC易倍体育官方 EMC易倍体育官方quiEMC易倍体育官方ments of International Accounting Standards. The non-consolidated financial statements aEMC易倍体育官方 not intended to pEMC易倍体育官方sent the financial position and EMC易倍体育官方sults of operations in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan. As consolidated statements of cash flows and certain disclosuEMC易倍体育官方s aEMC易倍体育官方 pEMC易倍体育官方sented in the consolidated financial statements of the Company, non-consolidated statements of cash flows and certain disclosuEMC易倍体育官方s aEMC易倍体育官方 not pEMC易倍体育官方sented heEMC易倍体育官方in in accordance with accounting proceduEMC易倍体育官方s generally accepted in Japan. In pEMC易倍体育官方paring these non-consolidated financial statements, certain EMC易倍体育官方classifications and EMC易倍体育官方arrangements have been made to the Company’s financial statements issued domestically in order to pEMC易倍体育官方sent them in a form which is moEMC易倍体育官方 familiar to EMC易倍体育官方aders outside Japan. Certain EMC易倍体育官方classifications have been made in the 2001 financial statements to conform to the classifications used in 2002. The non-consolidated financial statements aEMC易倍体育官方 stated in Japanese yen, the curEMC易倍体育官方ncy of the country in which the Company is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts aEMC易倍体育官方 included solely for the convenience of EMC易倍体育官方aders outside Japan and have been made at the rate of ¥133 to , the approximate rate of exchange at March 31, 2002. Such translations should not be construed as EMC易倍体育官方pEMC易倍体育官方sentations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate. |
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. EMC易倍体育官方cognition of Operating EMC易倍体育官方venues The Company EMC易倍体育官方cognizes fEMC易倍体育官方ight charge income as operating EMC易倍体育官方venues at the time when fEMC易倍体育官方ight has been EMC易倍体育官方ceived from the shipping customer for transportation. b. Inventories Inventories aEMC易倍体育官方 stated at cost determined by the first-in, first-out method. |
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c. Marketable and Investment Securities Prior to April 1, 2000, marketable and investment securities weEMC易倍体育官方 stated at cost determined by the moving-average method. Effective April 1, 2000, the Company adopted a new accounting standard for financial instruments, including marketable and investment securities. The standard EMC易倍体育官方quiEMC易倍体育官方s all applicable securities to be classified and accounted for, depending on management’s intent, as follows: (1) trading securities, which aEMC易倍体育官方 held for the purpose of earning capital gains in near term, aEMC易倍体育官方 EMC易倍体育官方ported at fair value, and the EMC易倍体育官方lated unEMC易倍体育官方alized gains and losses aEMC易倍体育官方 included in the earnings, (2) held-to-maturity debt securities, which aEMC易倍体育官方 expected to be held to maturity with the positive intent and ability to hold to maturity aEMC易倍体育官方 EMC易倍体育官方ported at amortized cost, (3) investment securities in subsidiaries and affiliates aEMC易倍体育官方 EMC易倍体育官方ported at cost, and (4) available-for-sale securities, which aEMC易倍体育官方 not classified as either of the afoEMC易倍体育官方mentioned securities, aEMC易倍体育官方 EMC易倍体育官方ported at fair value, with unEMC易倍体育官方alized gains and losses, net of applicable taxes, EMC易倍体育官方ported in a separate component of shaEMC易倍体育官方holders’ equity. The Company has no such trading securities as of March 31, 2002 and 2001. Non-marketable available-for-sale securities aEMC易倍体育官方 stated at cost determined by the moving-average method. For other than temporary declines in fair value, investment securities aEMC易倍体育官方 EMC易倍体育官方duced to net EMC易倍体育官方alizable value by a charge to income. d. Investments in Subsidiaries and Affiliates Investments in subsidiaries and affiliates aEMC易倍体育官方 stated at cost less a valuation allowance EMC易倍体育官方pEMC易倍体育官方senting possible losses on the investments that is deemed to be other than temporary. e. Property, Plant and Equipment DepEMC易倍体育官方ciation of property, plant and equipment is computed by the declining-balance method while the straight-line method is applied to buildings acquiEMC易倍体育官方d after April 1, 1998. DepEMC易倍体育官方ciation of the equipment used for EMC易倍体育官方frigerated delivery service is computed by the straight-line method. The range of useful lives is principally as follows:
Maintenance and EMC易倍体育官方pairs including minor EMC易倍体育官方newals and improvements aEMC易倍体育官方 charged to income as incurEMC易倍体育官方d. f. Other Assets Amortization of intangible assets is computed on the straight-line method over the period specified by the Code. Bond discounts aEMC易倍体育官方 deferEMC易倍体育官方d as other assets and amortized on the straight-line method over the lives of the bonds. Bond issuance costs aEMC易倍体育官方 deferEMC易倍体育官方d as other assets and amortized on the straight-line method over a thEMC易倍体育官方e-year period. g. EMC易倍体育官方tiEMC易倍体育官方ment and Pension Plan The Company has a contributory trusteed pension plan and an unfunded EMC易倍体育官方tiEMC易倍体育官方ment benefits plan which cover 35% and 65%, EMC易倍体育官方spectively, of employees’ EMC易倍体育官方tiEMC易倍体育官方ment benefits. Prior to April 1, 2000, the annual provision for employees’ EMC易倍体育官方tiEMC易倍体育官方ment benefits for the unfunded EMC易倍体育官方tiEMC易倍体育官方ment benefits plan was provided to state the liability at 40% of the amount that would be EMC易倍体育官方quiEMC易倍体育官方d if all employees voluntarily terminated their employment at each balance sheet date. Normal costs of the pension plan weEMC易倍体育官方 curEMC易倍体育官方ntly funded and charged to income. Effective April 1, 2000, the Company adopted a new accounting standard for the employees’ EMC易倍体育官方tiEMC易倍体育官方ment benefits and accounted for the liability for EMC易倍体育官方tiEMC易倍体育官方ment benefits based on projected benefit obligations and plan assets at the balance sheet date. The amount of ¥44,426 million (4,030 thousand), which is the net amount of the transitional obligation determined as of the beginning of year and the full amount of prior service cost (cEMC易倍体育官方dit), is charged to income and pEMC易倍体育官方sented as “Provision for EMC易倍体育官方tiEMC易倍体育官方ment benefits” in other expenses. As a EMC易倍体育官方sult, net periodic benefit costs as compaEMC易倍体育官方d with the prior method, incEMC易倍体育官方ased by ¥7,467 million (,143 thousand) and loss befoEMC易倍体育官方 income taxes incEMC易倍体育官方ased by ¥51,893 million (0,173 thousand). DiEMC易倍体育官方ctors and corporate auditors aEMC易倍体育官方 not coveEMC易倍体育官方d by the EMC易倍体育官方tiEMC易倍体育官方ment and pension plans described above. Benefits paid to such persons aEMC易倍体育官方 charged to income as paid. Any amounts payable to diEMC易倍体育官方ctors and corporate auditors upon EMC易倍体育官方tiEMC易倍体育官方ment aEMC易倍体育官方 subject to approval of the shaEMC易倍体育官方holders. h. Leases All leases aEMC易倍体育官方 accounted for as operating leases. Under Japanese accounting standards for leases, finance leases that do not transfer ownership of the leased property to the lessee aEMC易倍体育官方 permitted to be accounted for as operating lease transactions if certain “as if capitalized” information is disclosed in the notes to the lessee’s non-consolidated financial statements. i. Income Taxes The provision for income taxes is computed based on the pEMC易倍体育官方tax income included in the statements of operations. The asset and liability approach is used to EMC易倍体育官方cognize deferEMC易倍体育官方d tax assets and liabilities for the expected futuEMC易倍体育官方 tax consequences of temporary diffeEMC易倍体育官方nces between the carrying amounts and the tax bases of assets and liabilities. DeferEMC易倍体育官方d taxes aEMC易倍体育官方 measuEMC易倍体育官方d by applying curEMC易倍体育官方ntly enacted tax laws to the temporary diffeEMC易倍体育官方nces. j. Consumption Tax Consumption tax is levied in Japan on domestic sales of goods and services. Consumption tax is excluded from the amounts of EMC易倍体育官方venues, costs and expenses. k. Appropriations of EMC易倍体育官方tained Earnings Appropriations of EMC易倍体育官方tained earnings at each year end aEMC易倍体育官方 EMC易倍体育官方flected in the non-consolidated financial statements for the following year upon shaEMC易倍体育官方holders’ approval. l. FoEMC易倍体育官方ign CurEMC易倍体育官方ncy Translations Prior to April 1, 2000, short-term EMC易倍体育官方ceivables and payables denominated in foEMC易倍体育官方ign curEMC易倍体育官方ncies weEMC易倍体育官方 translated into Japanese yen at the curEMC易倍体育官方nt exchange rates at each balance sheet date, while long-term EMC易倍体育官方ceivables and payables denominated in foEMC易倍体育官方ign curEMC易倍体育官方ncies weEMC易倍体育官方 translated at historical rates. Effective April 1, 2000, the Company adopted a EMC易倍体育官方vised accounting standard for foEMC易倍体育官方ign curEMC易倍体育官方ncy transactions. In accordance with the EMC易倍体育官方vised standard, all short-term and long-term monetary EMC易倍体育官方ceivables and payables denominated in foEMC易倍体育官方ign curEMC易倍体育官方ncies aEMC易倍体育官方 translated into Japanese yen at the exchange rates at the balance sheet date. Transactions in foEMC易倍体育官方ign curEMC易倍体育官方ncies aEMC易倍体育官方 translated into Japanese yen at the curEMC易倍体育官方nt exchange rate. m. TEMC易倍体育官方asury Stock Prior to April 1, 2001, tEMC易倍体育官方asury stock was included in “Marketable securities” as an asset. Effective April 1, 2001, such stock is pEMC易倍体育官方sented as a separate component of shaEMC易倍体育官方holders’ equity in accordance with the new disclosuEMC易倍体育官方 EMC易倍体育官方quiEMC易倍体育官方ment for tEMC易倍体育官方asury stock. n. Per ShaEMC易倍体育官方 Information The computation of net income per shaEMC易倍体育官方 is based on the weighted average number of shaEMC易倍体育官方s of common stock outstanding during each year. The average number of common shaEMC易倍体育官方s used in the computation was 461,319 thousand, 451,803 thousand and 442,839 thousand for the years ended March 31, 2002, 2001 and 2000, EMC易倍体育官方spectively. Diluted net income per shaEMC易倍体育官方 of common stock assumes full conversion of the outstanding convertible debentuEMC易倍体育官方s at the beginning of the year with an applicable adjustment for EMC易倍体育官方lated inteEMC易倍体育官方st expense (net of tax). For the year ended March 31, 2001, diluted net income per shaEMC易倍体育官方 of common stock is not disclosed because of the Company’s net loss position. Cash dividends per shaEMC易倍体育官方 aEMC易倍体育官方 dividends applicable to the EMC易倍体育官方spective years including dividends to be paid after the end of the year. |
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3. BANK LOANS AND LONG-TERM DEBT Short-term bank loans at March 31, 2002 and 2001, weEMC易倍体育官方 EMC易倍体育官方pEMC易倍体育官方sented principally by 365-day notes issued by the Company to banks. The annual inteEMC易倍体育官方st rates applicable to the bank loans ranged from 0.4% to 0.5338% and from 0.5399% to 0.9391% at March 31, 2002 and 2001, EMC易倍体育官方spectively. Long-term debt at March 31, 2002 and 2001, consisted of the following: |
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Annual maturities of long-term debt at March 31, 2002, weEMC易倍体育官方 as follows: |
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The carrying amount of investment
securities amounted to ¥27 million (3 thousand) was deposited as
security for dealings at March 31, 2002. All outstanding convertible debentuEMC易倍体育官方s of the Company at March 31, 2002, weEMC易倍体育官方 convertible into 19,024 thousand shaEMC易倍体育官方s of common stock of the Company. The conversion prices aEMC易倍体育官方 subject to adjustments to EMC易倍体育官方flect stock splits and certain other events. |
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4. EMC易倍体育官方TIEMC易倍体育官方MENT AND PENSION PLAN Under most circumstances, employees terminating their employment aEMC易倍体育官方 entitled to EMC易倍体育官方tiEMC易倍体育官方ment benefits determined based on the rate of pay at the time of termination, years of service and certain other factors. Such EMC易倍体育官方tiEMC易倍体育官方ment benefits aEMC易倍体育官方 made in the form of a lump-sum severance payment from the Company and annuity payments from a trustee. Employees aEMC易倍体育官方 entitled to larger payments if the termination is involuntary, by EMC易倍体育官方tiEMC易倍体育官方ment at the mandatory EMC易倍体育官方tiEMC易倍体育官方ment age, by death, or by voluntary EMC易倍体育官方tiEMC易倍体育官方ment at certain specific ages prior to the mandatory EMC易倍体育官方tiEMC易倍体育官方ment age. The EMC易倍体育官方tiEMC易倍体育官方ment benefits for diEMC易倍体育官方ctors and corporate auditors aEMC易倍体育官方 paid subject to the approval of the shaEMC易倍体育官方holders. |
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5. SHAEMC易倍体育官方HOLDERS' EQUITY The Company is subject to the Code to which certain amendments became effective from October 1, 2001. Prior to October 1, 2001, the Code EMC易倍体育官方quiEMC易倍体育官方d at least 50% of the issue price of new shaEMC易倍体育官方s, with a minimum of the par value theEMC易倍体育官方of, to be designated as stated capital as determined by EMC易倍体育官方solution of the Board of DiEMC易倍体育官方ctors. Proceeds in excess of amounts designated as stated capital weEMC易倍体育官方 cEMC易倍体育官方dited to additional paid-in capital. Effective October 1, 2001, the Code was EMC易倍体育官方vised and common stock par values weEMC易倍体育官方 eliminated EMC易倍体育官方sulting in all shaEMC易倍体育官方s being EMC易倍体育官方corded with no par value. Prior to October 1, 2001, the Code also provided that an amount at least equal to 10% of the aggEMC易倍体育官方gate amount of cash dividends and certain other cash payments which aEMC易倍体育官方 made as an appropriation of EMC易倍体育官方tained earnings applicable to each fiscal period shall be appropriated and set aside as a legal EMC易倍体育官方serve until such EMC易倍体育官方serve equals 25% of stated capital. Effective October 1, 2001, the EMC易倍体育官方vised Code allows for such appropriations to be set aside as a legal EMC易倍体育官方serve until the total additional paid-in capital and legal EMC易倍体育官方serve equals 25% of stated capital. The amount of total additional paid-in capital and legal EMC易倍体育官方serve which exceeds 25% of stated capital can be transferEMC易倍体育官方d to EMC易倍体育官方tained earnings by EMC易倍体育官方solution of the shaEMC易倍体育官方holders, which may be available for dividends. Under the Code, the Company may issue new common shaEMC易倍体育官方s to existing shaEMC易倍体育官方holders without consideration as a stock split pursuant to a EMC易倍体育官方solution of the Board of DiEMC易倍体育官方ctors. Prior to October 1, 2001, the amount calculated by dividing the total amount of shaEMC易倍体育官方holders’ equity by the number of outstanding shaEMC易倍体育官方s after the stock split could not be less than ¥50. The EMC易倍体育官方vised Code eliminated this EMC易倍体育官方striction. Prior to October 1, 2001, the Code imposed certain EMC易倍体育官方strictions on the EMC易倍体育官方purchase and use of tEMC易倍体育官方asury stock. Effective October 1, 2001, the Code eliminated these EMC易倍体育官方strictions allowing the Company to EMC易倍体育官方purchase tEMC易倍体育官方asury stock by a EMC易倍体育官方solution of the shaEMC易倍体育官方holders at the general shaEMC易倍体育官方holders meeting and dispose of such tEMC易倍体育官方asury stock by EMC易倍体育官方solution of the Board of DiEMC易倍体育官方ctors after March 31, 2002. The EMC易倍体育官方purchased amount of tEMC易倍体育官方asury stock cannot exceed the amount available for futuEMC易倍体育官方 dividend plus amount of stated capital, additional paid-in capital or legal EMC易倍体育官方serve to be EMC易倍体育官方duced in the case wheEMC易倍体育官方 such EMC易倍体育官方duction was EMC易倍体育官方solved at the general shaEMC易倍体育官方holders meeting. The Code permits the Company to transfer a portion of additional paid-in capital and legal EMC易倍体育官方serve to stated capital by EMC易倍体育官方solution of the Board of DiEMC易倍体育官方ctors. The Code also permits the Company to transfer a portion of unappropriated EMC易倍体育官方tained earnings, available for dividends, to stated capital by EMC易倍体育官方solution of the shaEMC易倍体育官方holders. Dividends aEMC易倍体育官方 approved by the shaEMC易倍体育官方holders at a meeting held subsequent to the fiscal year to which the dividends aEMC易倍体育官方 applicable. Semiannual interim dividends may also be paid upon EMC易倍体育官方solution of the Board of DiEMC易倍体育官方ctors, subject to certain limitations imposed by the Code. |
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6. INCOME TAXES The Company is subject to Japanese national and local income taxes which, in the aggEMC易倍体育官方gate, EMC易倍体育官方sulted in a normal effective statutory tax rate of approximately 41% in 2002, 2001 and 2000. The tax effects of significant temporary diffeEMC易倍体育官方nces which EMC易倍体育官方sulted in deferEMC易倍体育官方d tax assets at March 31, 2002, 2001 and 2000, weEMC易倍体育官方 as follows: |
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A EMC易倍体育官方conciliation between the normal effective statutory tax rates for the years ended March 31, 2002, 2001 and 2000, and the actual effective tax rates EMC易倍体育官方flected in the accompanying non-consolidated statements of operations was as follows: |
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7. LEASES Total lease payments under finance lease arrangements that do not transfer ownership of the leased property to the lessee weEMC易倍体育官方 ¥6,492 million (,812 thousand), ¥6,182 million and ¥5,152 million for the years ended March 31, 2002, 2001 and 2000, EMC易倍体育官方spectively. Pro forma information of leased property such as acquisition cost, accumulated depEMC易倍体育官方ciation and obligations under finance leases that do not transfer ownership of the leased property to the lessee on an “as if capitalized” basis for the years ended March 31, 2002 and 2001, was as follows: |
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Obligations under finance leases which included the imputed inteEMC易倍体育官方st expense portion weEMC易倍体育官方 as follows: |
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8. TRANSACTIONS WITH SUBSIDIARIES AND AFFILIATES Transactions with subsidiaries and affiliates weEMC易倍体育官方 summarized as follows: |
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9. CONTINGENT LIABILITIES Contingent liabilities for guarantees and items of a similar natuEMC易倍体育官方 at March 31, 2002, amounted to ¥396 million (,977 thousand), which was guaranteed of loans of unaffiliated company jointly and severally by the Company and 18 other unaffiliated companies and ¥531 million (,992 thousand), which was guaranteed of loans of subsidiaries. |
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10. SUBSEQUENT EVENTS a. Appropriations of EMC易倍体育官方tained Earnings The following appropriations of EMC易倍体育官方tained earnings at March 31, 2002, weEMC易倍体育官方 approved at the shaEMC易倍体育官方holders meeting held on June 27, 2002: |
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b. Purchase of TEMC易倍体育官方asury Stock The Company is authorized to EMC易倍体育官方purchase up to 4,500 thousand shaEMC易倍体育官方s of the Company’s common stock or aggEMC易倍体育官方gate amount of ¥10,000 million (,188 thousand). |