Financial Statements
Years ended March 31,2001 and 2002

Contents

Consolidated Financial Statements........................................................................................1
Independent Auditors’ Report on Consolidated Financial Statements ................................2
Consolidated Balance Sheets...................................................................................................3
Consolidated Statements of Operations .................................................................................5

Consolidated Statements of Shareholders’ Equity ............................................................6
Consolidated Statements of Cash Flows ................................................................................7
Notes to Consolidated Financial Statements.........................................................................9

Non-Consolidated Financial Statements..............................................................................31
Independent Auditors’ Report on Non-Consolidated Financial Statements......................32
Non-Consolidated Balance Sheets ........................................................................................33
Non-Consolidated Statements of Operations.......................................................................35
Non-Consolidated Statements of Shareholders’ Equity ......................................................36
Notes to Non-Consolidated Financial Statements...............................................................37

Yodogawa Steel Works, Ltd.

Consolidated Financial Statements
Yodogawa Steel Works, Ltd.
Years ended March 31, 2001 and 2002
with Independent Auditors’ Report1Independent Auditors’ Reporton Consolidated Financial Statements

The Board of Directors and the Shareholders
Yodogawa Steel Works, Ltd.
We have audited the consolidated balance sheets of Yodogawa Steel Works, Ltd. andconsolidated subsidiaries as of March 31, 2001 and 2002, and the related consolidated
statements of operations, shareholders’ equity, and cash flows for the years then ended, allexpressed in yen. Our audits were made in accordance with auditing standards,
procedures and practices generally accepted and applied in Japan and, accordingly,
included such tests of the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
In our opinion, the accompanying consolidated financial statements, expressed in yen,present fairly the consolidated financial position of Yodogawa Steel Works, Ltd. andconsolidated subsidiaries at March 31, 2001 and 2002, and the consolidated results of
their operations and their cash flows for the years then ended in conformity withaccounting principles and practices generally accepted in Japan applied on a consistentbasis.
As described in Note 1, Yodogawa Steel Works, Ltd. and consolidated subsidiaries
adopted new accounting standards for employees’ retirement benefits, financial
instruments and foreign currency translation effective the year ended March 31, 2001 in
the preparation of their consolidated financial statements.
The U.S. dollar amounts in the accompanying consolidated financial statements withrespect to the year ended March 31, 2002 are presented solely for convenience. Our
audit also included the translation of yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made on the basis described in Note 2.

Osaka, Japan
June 27, 2002

See Note 1 which explains the basis of preparation of the consolidated financial
statements of Yodogawa Steel Works, Ltd. and consolidated subsidiaries under Japanese
accounting principles and practices.
2

Yodogawa Steel Works, Ltd.
Consolidated Balance Sheets
March 31, 2001 and 2002
Millions of yen
2001
2002
AssetsCurrent assets:
Cash and cash equivalents
Short-term investments
Marketable securities (Note 3)
Notes and accounts receivable:
Unconsolidated subsidiaries and affiliates
Trade
Less allowance for doubtful receivables
Inventories
Deferred income taxes (Note 7)
Other current assets
Total current assets
Property, plant and equipment (Note 4):
Land (Note 8)
Buildings and structures
Machinery, equipment and vehicles
Construction in progress
Less accumulated depreciation
Property, plant and equipment, net
Investments and other assets:
Investments in securities (Notes 3 and 4)
Investments in and advances tounconsolidated subsidiaries and affiliates
Deferred income taxes (Note 6)
Other assets
Total investments and other assets

Total assets
3

Thousands of
U.S. dollars(Note 2)
2002

¥ 24,313
464
3,339¥ 18,208
1,447
3,302

$

136,645
10,85924,780

14,23533,332(169)
32,528831
3,309
112,182

10,517
24,816(83)
29,315873
3,515
91,91078,927
186,236(623)
220,000
6,552
26,379689,755

22,95853,657
132,548755(129,535)
80,383

23,47253,862
135,150861(135,971)
77,374

176,150
404,218
1,014,259
6,462(1,020,421)
580,668

18,711

20,694

155,302

3,130
1,380
4,022
27,243

3,323
999
3,384
28,40024,938
7,497
25,397
213,134¥ 219,808¥ 197,684$ 1,483,557

Millions of yen
2001
2002
Liabilities and shareholders’ equity
Current liabilities:
Short-term bank loans (Note 4)
Current portion of long-term debt (Note 4)
Notes and accounts payable:
Unconsolidated subsidiaries and affiliates
Trade
Construction
Accrued expenses
Accrued income taxes (Note 6)
Allowance for loss on restructuring
Other current liabilities
Total current liabilities

Thousands of
U.S. dollars(Note 2)
2002

¥ 15,010
5,740¥ 12,897
5,228$ 98,788
39,235913
25,639
2,527
3,701
427
–
2,669
56,626668
15,526
1,160
3,889
399
568
3,230
43,565

5,013
116,518
8,705
29,186
2,994
4,262
24,241
326,942

Long-term liabilities:
Long-term debt (Note 4)
Deferred income taxes on land revaluation
reserve (Notes 6 and 8)
Accrued retirement benefits (Note 5)
Guarantee deposits (Note 4)
Other long-term liabilities
Total long-term liabilities

6,128

1,100

8,255

570
9,276
5,051
598
21,623

765
8,590
4,626
571
15,652

5,741
64,46534,717
4,285
117,463

Minority interests

11,278

12,21591,67023,221–
23,612544
86,883–(1,905)–23,221
23,613
1,139
76,884
3,721
(845)

–
174,266
177,208
8,548
576,990
27,925(6,341)(2,074)130,281¥219,808(1,481)
126,252¥197,684(11,114)
947,482$1,483,557

Contingent liabilities (Note 11)
Shareholders’ equity (Note 7):
Common stock:
Authorized:
March 31, 2001 – 772,439,000 shares
March 31, 2002 – 753,814,067 shares
Issued:March 31, 2001 – 202,811,086 shares
March 31, 2002 – 184,186,153 shares
Additional paid-in capitalLand revaluation reserve (Note 8)
Retained earnings (Note 14)
Unrealized holding gain on securities
Translation adjustments
Treasury stock, at cost – 6,864,571 shares in2001 and 4,951,692 shares in 2002
Total shareholders’ equity
Total liabilities and shareholders’ equity

See accompanying notes to consolidated financial statements.
4

Yodogawa Steel Works, Ltd.
Consolidated Statements of Operations
Years ended March 31, 2001 and 2002
Thousands of
U.S. dollars(Note 2)
2002

Millions of yen
2001
2002
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses(Note 9)Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Gain on sales of securities
Loss on revaluation of securities
Gain (loss) on sales or disposal of property,
plant and equipment, net
Loss on disposal of inventories
Equity in loss of an affiliate
Loss on restructuring
Provision of allowance for loss on
restructuring
Gain on contribution of securities to
employees’ retirement benefit trust
Net retirement benefit obligation at transition(Notes 1(n) and 5)
Other, net
Income (loss) before income taxes and minority
interests
Income taxes (Note 6):
Current
DeferredIncome (loss) before minority interests
Minority interests in earnings of consolidated
subsidiaries
Net income (loss)¥153,863
131,230
22,633¥145,071
124,702
20,369$1,088,713
935,850
152,863

19,786
2,847

18,5381,831

139,122
13,741

576
(587)
991
(433)

562
(581)
18
(4,974)

4,218(4,360)135(37,328)

2,114
–
(164)
(725)

(311)
(613)
(1)
–

(2,334)(4,600)
(8)
–

–

(568)

(4,263)

1,627

–

–

(2,559)
337

–
(689)

–
(5,171)

4,024(5,326)(39,970)

600
306
906
3,118

354
(2,485)(2,131)(3,195)

2,657(18,649)(15,992)(23,978)

(771)
(560)
¥ 2,347 ¥ (3,755)$(4,202)(28,180)

See accompanying notes to consolidated financial statements.
5

Yodogawa Steel Works, Ltd.
Consolidated Statements of Shareholders’ Equity
Years ended March 31, 2001 and 2002
Thousands of
U.S. dollars(Note 2)
2002

Millions of yen
2001
2002
Common stock
Balance at beginning and end of the year
Additional paid-in capital
Balance at beginning of the year
Add:
Transfer from retained earnings
Balance at end of the year
Land revaluation reserve
Balance at beginning of the year
Net change during the year
Balance at end of the year
Retained earnings
Balance at beginning of the year
Add:
Net income
Reversal of land revaluation reserve
Increase resulting from merger of aconsolidated subsidiary
Deduct:Net loss
Decrease resulting from initial inclusionof a subsidiary in consolidation
Cash dividends paid
Bonuses to directors and statutory auditors
Bonuses to employees of an overseas
subsidiary
Transfer to additional paid-in capital
Retirement of treasury stock
Balance at end of the year
Unrealized holding gain on securities (Note 3)
Balance at beginning of the year
Net change during the year
Balance at end of the year
Translation adjustments
Balance at beginning of the year
Net change during the year
Balance at end of the year

¥23,221¥23,221$174,266¥23,611¥23,612$177,2011¥23,612

1¥23,613

7$177,208

¥

¥

$

544
595
¥ 1,139$¥90,940¥86,883$652,030

2,347
–

–
144

–
1,080

8

–

–

–

3,755

28,180

2,308
1,416
67

142
1,342
66

1,066
10,071
496

17
1
2,603
¥86,88314
1
4,823¥76,884105
736,195$576,990

¥

¥

–
3,721
¥ 3,721$¥ (1,905)
1,060¥ (845)$ (14,296)
7,955$ (6,341)

¥

¥

393
151
544

–
–
–

¥
–
(1,905)¥(1,905)

4,083
4,465
8,548

–
27,925$ 27,925

See accompanying notes to consolidated financial statements.
6

Yodogawa Steel Works, Ltd.
Consolidated Statements of Cash Flows
Years ended March 31, 2001 and 2002

Cash flows from operating activities
Income (loss) before income taxes and minority
interests
Adjustments for:
Depreciation and amortization
Amortization of goodwill arising fromconsolidation
Equity in loss of an affiliate
Loss on revaluation of investments insecurities
Increase (decrease) in accrued retirement
benefits
Decrease in accrued bonuses
Decrease in allowance for doubtfulreceivables
Interest and dividend income
Interest expense
Gain on sales of securities
Gain on sales of property, plant andequipment
Loss on disposal of property, plant andequipment
Loss on restructuring
Provision of allowance for loss on
restructuring
Net retirement benefit obligation at transition(Increase) decrease in notes and accounts
receivable(Increase) decrease in inventories
Increase (decrease) in notes and accounts
payableBonus payments to directors, statutory
auditors and employees of an overseas
subsidiary
Other
SubtotalInterest and dividends received
Interest paid
Loss on restructuring
Income taxes paid
Other
Net cash provided by operating activities

Millions of yen
2001
2002

Thousands of
U.S. dollars(Note 2)
2002

¥ 4,024¥ (5,326)$ (39,970)

8,626

7,744

58,116

(61)
164

(41)
1

(308)
8

225

4,974

37,328

633
(201)

(771)
(44)

(5,786)
(330)

(246)
(576)
587
(991)

(619)
(562)
581
(19)

(4,645)(4,218)
4,360
(143)

(2,301)

(31)

(233)

107
725

341
–

2,559
–

–
459

568
–

4,263
–

(2,320)(400)

12,424
4,404

93,23833,051

464(10,532)(79,039)

(84)
(338)
8,496
584
(638)
(158)
(638)
–
¥ 7,646(80)
825
13,837
567
(586)
–
(402)
(277)
¥ 13,139

(600)
6,191
103,842
4,255(4,398)–(3,017)(2,078)$ 98,604
7

Yodogawa Steel Works, Ltd.
Consolidated Statements of Cash Flows (continued)
Years ended March 31, 2001 and 2002

Cash flows from investing activities
Increase in time deposits with a maturity ofmore than three months
Proceeds from time deposits with a maturity ofmore than three months
Purchases of marketable securities
Proceeds from sales of marketable securities
Purchases of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchases of other assets
Purchases of investments in securities
Proceeds from sales of investments in securities
Increase in loans receivableCollection of loans receivable
Other
Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term bank loans
Issuance of long-term debt
Repayment of long-term debt
Redemption of bonds
Purchases of treasury stock
Cash dividends paid to the Company’s
shareholders
Cash dividends paid to minority shareholders ofconsolidated subsidiaries
Other
Net cash used in financing activities
Effect of exchange rate changes on cash andcash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of theyear
Increase in cash and cash equivalents arisingfrom initial consolidation of subsidiaries
Cash and cash equivalents at end of the year

Millions of yen
2001
2002

Thousands of
U.S. dollars(Note 2)2002

¥ (2,845)¥ (4,445)$ (33,358)

4,545(2,835)
3,810(11,518)

3,463(3,399)3,822(4,113)25,989(25,508)
28,683(30,867)

2,564
(31)
(2,185)
2,177
(101)
1,129
30
(5,260)471(40)(1,031)
174
(464)
473
8
(5,081)

3,534
(300)
(7,737)1,305(3,482)3,550
60(38,131)

1,668
1,100
(940)
(6,918)(2,603)(2,421)200(5,740)–(4,331)(18,169)
1,501(43,077)–(32,503)(1,417)(1,342)(10,071)(850)–(9,960)(676)
2(14,308)(5,073)
14(107,378)

205(7,369)145(6,105)

1,088(45,817)

31,57824,313

182,462104¥ 24,313–¥ 18,208–$136,645

See notes to consolidated financial statements.
8

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements
March 31, 2002

1.

Summary of Significant Accounting Policies(a) Basis of Preparation
The accompanying consolidated financial statements of Yodogawa Steel Works, Ltd.
(the “Company”) and its consolidated subsidiaries have been prepared in accordancewith accounting principles and practices generally accepted and applied in Japan,
which may differ in certain material respects from accounting principles and practices
generally accepted in countries and jurisdictions other than Japan, and have been
compiled from those prepared by the Company as required under the Securities andExchange Law of Japan.
In addition, the notes to the consolidated financial statements include information
which is not required under accounting principles generally accepted in Japan but ispresented herein as additional information.
Certain reclassifications of previously reported amounts have been made to theconsolidated financial statements for the year ended March 31, 2001 to conform themto the 2002 presentation. Such reclassifications had no effect on consolidated net
income or shareholders’ equity.
(b) Basis of Consolidation
The accompanying consolidated financial statements include the accounts of theCompany and all subsidiaries over which substantial control is exerted through either
majority ownership of voting stock and/or by other means. All significant
intercompany balances and transactions have been eliminated in consolidation.
Investment in an affiliate (a company over which the Company has the ability to
exercise significant influence) is stated at cost plus equity in its undistributed earnings
or losses. Consolidated net income includes the Company’s equity in the current net
income or loss of this company after the elimination of unrealized intercompany
profits.
All assets and liabilities of the consolidated subsidiaries are revalued on acquisition,
if applicable. The difference, not significant in amount, between the cost ofinvestments in subsidiaries and the equity in their net assets at their respective datesof acquisition is charged to income as incurred or amortized over a period of five
years on a straight-line basis.
The financial statements of one consolidated subsidiary whose fiscal year end is
December 31 have been included in consolidation on the basis of a full fiscal year
after making the appropriate adjustments for significant transactions during the period
from its fiscal year end to the Company’s balance sheet date.
9

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
1.

Summary of Significant Accounting Policies (continued)(c) Foreign Currency Translation
Monetary assets and liabilities denominated in foreign currencies are translated into
yen at the rates of exchange in effect at the balance sheet date. Other assets andliabilities denominated in foreign currencies are translated at their historical rates.
All revenues and expenses associated with foreign currencies are translated at therates of exchange prevailing when such transactions were made. The resulting
exchange loss and gain are charged or credited to income.
The balance sheet accounts of the foreign consolidated subsidiary (except forshareholders’ equity) are translated into yen at the rates of exchange in effect at thebalance sheet date. Components of shareholders’ equity are translated at theirrespective historical rates of exchange. Revenue and expense accounts aretranslated into yen at the average rate of exchange in effect during the year.
Effective April 1, 2000, the Company and its domestic consolidated subsidiaries
adopted a revised accounting standard for foreign currency translation. The effect of
the adoption of this standard on the consolidated financial statements was immaterial
for the year ended March 31, 2001.
Due to a change effective the year ended March 31, 2001 in the regulations relating to
the presentation of translation adjustments, translation adjustments have beenpresented as a component of shareholders’ equity and minority interests inconsolidated subsidiaries (instead of as a component of assets or liabilities) in theaccompanying consolidated financial statements for the years ended March 31, 2001
and 2002.
(d) Cash Equivalents
For the purpose of the consolidated statements of cash flows, cash and cash
equivalents consist of cash on hand, deposits with banks withdrawable on demand,and short-term investments which are readily convertible to cash subject to an
insignificant risk of changes in their value and which were purchased with an original
maturity of three months or less.

10

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
1.

Summary of Significant Accounting Policies (continued)(e) Securities
Up to the year ended March 31, 2000, securities were primarily stated at the lower ofcost or market, cost being determined by the moving average method.
Effective April 1, 2000, the Company and its consolidated subsidiaries adopted a new
accounting standard for financial instruments which requires that securities beclassified into three categories: trading securities, held-to-maturity debt securities orother securities. Under this standard, trading securities are carried at fair value andgain and loss, both realized and unrealized, are charged to income. Held-to-maturity
debt securities are carried at their amortized cost. Marketable securities classified asother securities are carried at fair value with any changes in unrealized holding gainor loss, net of the applicable income taxes, reported as a separate component ofshareholders’ equity. Non-marketable securities classified as other securities arecarried at cost.
As permitted under the new standard, the Company and its consolidated subsidiaries
postponed recording marketable securities classified as other securities at fair value tothe year ended March 31, 2002. The following pro forma amounts represent thecarrying value, fair value, unrealized holding gain (net of the applicable income
taxes), and the deferred tax liability (the applicable income taxes on the unrealized
holding gain) and minority interests, which would have been reflected in the
consolidated balance sheet at March 31, 2001 if marketable securities classified asother securities had been carried at fair value:
Millions of yen
Carrying value
Fair value
Unrealized holding gain
Deferred tax liability
Minority interests¥21,106
31,719
6,122
4,457
34

As of April 1, 2000, the Company and its consolidates subsidiaries assessed theirintent in holding their securities, classified them as “held-to-maturity debt securities”
and “other securities,” and accounted for the securities at March 31, 2001 in
accordance with the new standard referred to above. As a result, securities of¥17,215 million, which had been included in marketable securities at March 31, 2000,
were reclassified to investments in securities as of April 1, 2000. The effect of the
adoption of this standard for financial instruments was to increase income before
income taxes and minority interests by ¥1,647 million for the year ended March 31,
2001.

11

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
1.

Summary of Significant Accounting Policies (continued)(e) Securities (continued)
Effective April 1, 2001, the Company and its consolidated subsidiaries have recorded
marketable securities classified as other securities at fair value as required under the
new accounting standard for financial instruments.
At March 31, 2002 the effect of this treatment was to record initially unrealized
holding gain on securities of ¥3,721 million ($27,925 thousand) and to increase
marketable securities, investments in securities, deferred tax liabilities and minority
interests by ¥2 million ($15 thousand), ¥6,519 million ($48,923 thousand), ¥2,756
million ($20,683 thousand) and ¥44 million ($330 thousand), respectively.
(f) Inventories
Inventories are stated at cost determined principally by the last-in, first-out method.
Inventories at the foreign consolidated subsidiary are stated at the lower of cost or
market, cost being determined by the moving average method.
(g) Property, Plant and Equipment and Depreciation
Depreciation of property, plant and equipment is calculated by the declining-balancemethod over the useful lives of the respective assets, except that the straight-line
method is applied to buildings (except for structures attached to the buildings)
acquired subsequent to April 1, 1998.
Depreciation of property, plant and equipment at the foreign consolidated subsidiaryis calculated by the straight-line method.
The useful lives adopted for calculating depreciation are principally as follows:
Buildings and structures
Machinery, equipment and vehicles

3 to 60 years
3 to 36 years

Significant renewals and additions are capitalized at cost. Maintenance and repairs
are charged to income as incurred.
(h) Intangible Assets
Intangible assets are stated on the basis of cost. Amortization is calculated by thestraight-line method over the useful lives of the respective assets.

12

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
1.

Summary of Significant Accounting Policies (continued)(i) Allowance for Doubtful Receivables
Up to the year ended March 31, 2000, the Company and its domestic consolidated
subsidiaries provided an allowance for doubtful receivables principally at an
estimated aggregate amount of probable bad debts plus the maximum amountpermitted to be charged to income under the Corporation Tax Law of Japan.
Effective April 1, 2000, the Company and its consolidated subsidiaries adopted a new
accounting standard for financial instruments. Under the new accounting standard,
the Company and its consolidated subsidiaries provided an allowance for doubtfulreceivables at an amount calculated based on their historical experience of bad debts
on ordinary receivables plus an additional estimate of probable specific bad debts
from customers experiencing financial difficulties. The aggregate effect of the
adoption of the new standard is disclosed in Note 1(e), “Securities.”(j) Research and Development Costs and Computer Software
Research and development costs are charged to income as incurred.
Expenditures relating to the development of computer software intended for internal
use are charged to income when incurred, unless these are deemed to contribute to thegeneration of future income or cost savings. Such expenditures are capitalized asassets and amortized by the straight-line method over their estimated useful life of
five years.
(k) Leases
The Company and its consolidated subsidiaries lease certain equipment under
noncancelable leases referred to as finance leases. Finance leases other than thosewhich transfer the ownership of the leased property to the lessee are accounted for as
operating leases.
(l) Income Taxes
Deferred income taxes are provided for temporary differences between the balancesof assets and liabilities for financial reporting purposes and the correspondingbalances for tax reporting purposes.
(m) Allowance for Loss on Restructuring
The Company has provided an allowance for loss on restructuring arising from thediscontinuation of its household articles business at an estimated amount of the loss to
be incurred.

13

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
1.

Summary of Significant Accounting Policies (continued)(n) Retirement Benefits
Employees of the Company and its consolidated subsidiaries are covered by
employees’ retirement benefit and employees’ pension plans. The employees’
retirement benefits plan provides for a lump-sum payment determined by reference tothe basic salary, length of service and conditions under which the termination occurs.
The employees’ pension plans, which are funded non-contributory plans, partiallycover the benefits under the employees’ retirement benefit plans to employees who
retire after fifteen or more years of service.
Up to the year ended March 31, 2000, accrued retirement benefits were stated at theamount which would be required to be paid if all employees covered by theretirement benefit plans voluntarily terminated their employment at the balance sheet
date, less the assets of the pension plans.
Effective April 1, 2000, the Company and the domestic consolidated subsidiaries
adopted a new accounting standard for retirement benefits. In accordance with thisstandard, accrued retirement benefits for employees at March 31, 2001 were provided
mainly at an amount calculated based on the retirement benefit obligation less the fairvalue of the pension plan assets as of March 31, 2001, as adjusted for unrecognizedactuarial loss. The retirement benefit obligation is allocated to each period by thestraight-line method over the estimated years of service of the eligible employees.
The net retirement benefit obligation at transition of ¥2,559 million was fully charged
to income for the year ended March 31, 2001. The effect of the adoption of thisstandard for retirement benefits was to decrease income before income taxes andminority interests by ¥1,133 million for the year ended March 31, 2001.
Actuarial gain and loss are amortized in the year following the year in which the gainor loss is recognized principally by the straight-line method over 10 years, which iswithin the estimated average remaining years of service of the eligible employees.
Prior service cost is being amortized as incurred by the straight-line method over 15
years, which is within the estimated average remaining years of service of the eligible
employees.
The directors and statutory auditors of the Company and its domestic consolidated
subsidiaries are customarily entitled to lump-sum payments under the unfunded
retirement benefit plans. The provision for retirement benefits for directors andstatutory auditors has been made at an estimated amount based on the Company’s oreach consolidated subsidiary’s internal rules.

14

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
1.

Summary of Significant Accounting Policies (continued)(o) Hedge Accounting
Under the new accounting standard for financial instruments which became effective
April 1, 2000, gain or loss on derivatives designed as hedging instruments is deferred
until the loss or gain on the underlying hedged item is recognized. Interest-rate
swaps which meet certain conditions are accounted for as if the interest rates applied
to the swaps had originally applied to the underlying debt and others. Receivables
and payables hedged by forward foreign exchange contracts which meet certain
conditions are translated at the corresponding foreign exchange contract rates.

2.

U.S. Dollar Amounts

The translation of yen amounts into U.S. dollar amounts is included solely forconvenience, as a matter of arithmetic computation only, at the rate of ¥133.25 =U.S.$1.00, the approximate exchange rate prevailing on March 31, 2002. The translation
should not be construed as a representation that yen have been, could have been, or couldin the future be, converted into U.S. dollars at the above or any other rate.

15

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
3.

Securities

Marketable securities classified as held-to-maturity debt securities at March 31, 2001 and2002 are summarized as follows:

Carrying value
Securities whose fair value exceeds
their carrying value:
Government bonds
Other
Securities whose fair value does notexceed their carrying value:
Corporate bonds
Other
Total

¥

Securities whose fair value does notexceed their carrying value:
Government bonds
Other
Total

¥

Unrealized
gain (loss)

28
600
628

¥ 2
0
2

500
968
1,468
¥2,094

487
906
1,393
¥2,021

(13)
(62)
(75)
¥(73)

Carrying value

2002
Millions of yen
Estimated fairvalue

Unrealized
gain (loss)

Securities whose fair value exceeds
their carrying value:
Government bonds

26
600
626

2001
Millions of yen
Estimated fair
value

¥ 31

¥

31

¥ 0

65
2,341
2,406
¥2,437

64
2,294
2,358
¥2,389

(1)
(47)
(48)
¥(48)

2002
Thousands of U.S. dollars
Estimated fair
Unrealized
Carrying value
value
gain (loss)
Securities whose fair value exceeds
their carrying value:
Government bonds
Securities whose fair value does notexceed their carrying value:
Government bonds
Other
Total

$

233

488
17,56818,056$18,289

$

233

$ 0

480
17,216
17,696$17,929

(8)
(352)
(360)
$(360)

16

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
3.

Securities (continued)

Other securities with determinable market value at March 31, 2002 are summarized asfollows:

Securities whose carrying value
exceeds their acquisition costs:
Equity securities
Corporate bonds
Other
Securities whose carrying value
does not exceed their acquisition
costs:
Equity securities
Corporate bonds
Other
Total

Acquisition
costs

Millions of yen
Estimated fairvalue

Unrealized
gain (loss)¥ 8,979
100
900
9,979

¥16,100
100
911
17,111¥ 7,121
1
11
7,133

2,503
1,003
401
3,906
¥13,885

2,137
886
323
3,346
¥20,457

(366)
(117)
(77)
(560)
¥6,573Thousands of U.S. dollars
Acquisition
Estimated fair
Unrealized
costs
value
gain (loss)
Securities whose carrying value
exceeds their acquisition costs:
Equity securities
Corporate bonds
Other
Securities whose carrying value
does not exceed their acquisition
costs:
Equity securities
Corporate bonds
Other
Total

$ 67,385
750
6,754
74,889$120,826
750
6,837
128,413$53,4418
83
53,532

18,784
7,527
3,009
29,320$104,209

16,038
6,649
2,424
25,111$153,524(2,747)(878)(578)(4,203)$49,329

17

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
3.

Securities (continued)

Sales of investments in securities for the years ended March 31, 2001 and 2002 aresummarized as follows:

Millions of yen
2001
2002
Sales
Aggregate gain
Aggregate loss

¥2,910
991
125

¥209
19
0

Thousands of
U.S. dollars
2002$1,568143
0The carrying value of other securities without determinable market value at March 31,
2001 and 2002 were as follows:

Non-marketable equity securities
Money management funds
Medium-term government bondfundsFree financial funds

Millions of yen
2002
2001
¥1,053¥1,010
2,845
1,532
1,521
4,705

–
–

Thousands of
U.S. dollars
2002$ 7,580
11,497––

The redemption schedule for other securities with maturities and held-to-maturity debt
securities as of March 31, 2002 is summarized as follows:
Millions of yen
Due after one Due after five
year through years throughfive years
ten years
¥ 16
¥60
900
–
140
–
¥1,056¥60

Government bonds
Corporate bonds
Other debt securities
Total

Due in one
year or less
¥ 20
200
2,155
¥2,375Government bonds
Corporate bonds
Other debt securities
Total

Thousands of U.S. dollars
Due after one Due after fiveDue in one
year through years throughyear or lessfive years
ten years
$ 150
$ 120
$450
1,501
6,754
–
16,173
1,051–$17,824$7,925$450
18

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
4.

Short-Term Bank Loans, Long-Term Debt and Guarantee Deposits

Short-term bank loans at March 31, 2001 and 2002 represented overdrafts and notes
payable to banks. At March 31, 2001, overdrafts and notes payable to banks amounted
to ¥14,160 million at an annual interest rate of approximately 1.58% and ¥850 million atan annual interest rate of approximately 1.44%, respectively. At March 31, 2002,
overdrafts and notes payable to banks amounted to ¥12,797 million ($96,038 thousand) at
an annual interest rate of approximately 1.27%, and ¥100 million ($750 thousand) at anannual interest rate of approximately 1.375%, respectively.
Long-term debt at March 31, 2001 and 2002 was as follows:
Millions of yen
2001
2002
1.8% unsecured bonds, payable in yen,due 2003
Unsecured loans from banks and an
insurance company, due from 2002
through 2004, at interest rates ranging
from 1.90% to 2.30%
Less current portion

Thousands of
U.S. dollars
2001¥ 5,000¥ 5,000$ 37,523

6,868
11,868(5,740)¥6,128

1,328
6,328(5,228)¥ 1,100

9,967
47,490(39,235)$ 8,255

The aggregate annual maturities of long-term debt subsequent to March 31, 2002 aresummarized as follows:
Millions of yen

Thousands of
U.S. dollars¥5,228
1,100¥6,328$39,235
8,255$47,490

Year ending March 31,
2003
2004

The assets pledged as collateral for short-term bank loans and other current liabilities at
March 31, 2002 were as follows:

Property, plant and equipment, at net book value
Investments in securities

Millions of yen¥28,72550¥28,775

Thousands of
U.S. dollars$215,572
375$215,947

Guarantee deposits, principally from customers, have an average annual interest rate of
2.01%. These guarantee deposits fall due during the years ending March 31, 2008 andthereafter.
19

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
5.

Retirement Benefits

The funded and accrued status of the employees’ defined benefit plans of the Company
and its domestic consolidated subsidiaries, and the amounts recognized in the
consolidated balance sheets at March 31, 2001 and 2002 are summarized as follows:

Millions of yen
2002
2001
Retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Unrecognized actuarial loss
Unrecognized prior service cost
Net retirement benefit obligation
Prepaid pension costAccrued retirement benefits¥(15,336)
6,116(9,220)1,805
51(7,364)462¥ (7,826)¥(14,642)
4,998(9,644)
2,173
48(7,423)606¥ (8,029)

Thousands of
U.S. dollars
2002$(109,883)
37,508(72,375)
16,308360(55,707)
4,548$ (60,255)

The components of retirement benefit expenses for the years ended March 31, 2001 and2002 are outlined as follows:

Millions of yen
2001
2002
Service cost
Interest cost
Expected return on plan assets
Amortization of net retirement benefit
obligation at transition
Amortization of actuarial loss
Amortization of prior service costThousands of
U.S. dollars
2002

¥ 803
489
(163)

¥ 821
403
(73)

$ 6,161
3,024
(548)

2,559
6
7
¥3,701–163
8¥1,322–
1,224
60$9,921

The assumptions used in accounting for the above benefit plans for the years ended March
31, 2001 and 2002 were as follows:
2001
Discount rates
Expected rates of return on plan assets

Principally 2.5%;
3.5 at April 1, 2000
Principally 4.5%

2002
Principally 2.5%
Principally 1.6%

The Company and its domestic consolidated subsidiaries recorded accrued retirement
benefits to directors and statutory auditors of ¥1,450 million and ¥561 million ($4,210
thousand) at March 31, 2001 and 2002, respectively.
20

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
6.

Income Taxes

Income taxes applicable to the Company and its domestic consolidated subsidiaries
comprise corporation, enterprise and inhabitants’ taxes which, in the aggregate, resulted ina statutory tax rate of approximately 42.0% for the years ended March 31, 2001 and 2002.
A reconciliation of the statutory tax rate and the effective tax rate for the year ended
March 31, 2001, as a percentage of income before income taxes and minority interests is
as follows:
2001
Statutory tax rate
Investment tax credits
Nontaxable income
Unrecognized deferred tax assets arising fromtax loss carryforwards of subsidiaries
Differences in tax rates applicable to foreignsubsidiaries
Cash dividends received from foreign subsidiaries
Other
Effective tax rate

42.0%
(10.2)(3.5)(15.5)
(7.6)
3.8
13.5
22.5%

21

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
6.

Income Taxes (continued)

The corresponding information for the year ended March 31, 2002 has been omitted
because a loss before income taxes and minority interests was recorded. The significant
components of the deferred tax assets and liabilities of the Company and its consolidated
subsidiaries at March 31, 2001 and 2002 are summarized as follows:

Deferred tax assets:
Accrued retirement benefits
Investment tax credits
Allowance for doubtful receivables
Accrued bonuses
Inventories
Allowance for loss on restructuring
Excess foreign tax deduction
Depreciation
Tax loss carryforward
Other
Gross deferred tax assets
Less valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Dividends from foreign subsidiaries
Unrealized holding gain on securities
Land revaluation reserve
Reserve for deferred taxation oncontributions for acquisition ofproperty
Total deferred tax liabilities
Net deferred tax assets

Millions of yen
2001
2002

Thousands of
U.S. dollars
2002¥ 2,427
452
528
181
101
–
161
201
–
324
4,375
(618)
3,757

¥ 2,220
592
315
251
123
239
241
99
1,764
1,109
6,953
(910)
6,043

$ 16,660
4,443
2,364
1,884
923
1,794
1,808
743
13,238
8,323
52,180(6,829)45,351

–
–
(570)

(55)
(2,702)
(765)

(413)
(20,278)(5,741)(1,546)(2,116)¥ 1,641(1,413)(4,935)¥ 1,108(10,604)(37,036)$ 8,315

Net deferred tax assets as of March 31, 2001 and 2002 are classified as follows:

Millions of yen
2001
2002
Current assets
Noncurrent assets
Noncurrent liabilities

¥ 831
1,380
(570)
¥1,641

¥ 874
999
(765)
¥1,108

Thousands of
U.S. dollars
2002$ 6,559
7,497(5,741)$8,31522

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
7.

Shareholders’ Equity

The Commercial Code of Japan provides that an amount equivalent to at least 10% of
cash dividends paid and bonuses to directors and statutory auditors, and exactly 10% ofinterim cash dividends paid be appropriated to the legal reserve until the sum of additional
paid-in capital and the legal reserve equals 25% of stated capital. The Code also
provides that neither additional paid-in capital nor the legal reserve is available fordividends but both may be used to reduce or eliminate a deficit by resolution of theshareholders or may be transferred to stated capital by resolution of the Board of Directors.
The Company’s legal reserve, which is included in retained earnings, amounted to ¥3,402
million and ¥3,478 million ($26,101 thousand) at March 31, 2001 and 2002, respectively.

8.

Revaluation of Land

At March 31, 2000 and 2002, certain consolidated subsidiaries and an affiliate revalued
their land held for business use in accordance with the “Law on Land Revaluation.”
Differences on land revaluation have been accounted for as land revaluation reserve undershareholders’ equity at the Company’s share of the net amount of the relevant tax effect.
The method followed for land revaluation was determined in accordance with the“Enforcement Act Concerning Land Revaluation.”
The carrying value of revalued land at March 31, 2000 was as follows:

Carrying value before revaluation
Carrying value after revaluation

Millions of yen¥1,0192,375

As of March 31, 2002, the carrying value of ¥2,375 million ($17,824 thousand) exceeded
the fair value by ¥218 million ($1,636 thousand).
The carrying value of land revalued at March 31, 2002 was as follows:

Carrying value before revaluation
Carrying value after revaluation

Millions of yen

Thousands of
U.S. dollars¥10,059
11,512$75,490
86,39423

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
9.

Research and Development Costs

Research and development costs included in selling, general and administrative expenses
for the years ended March 31, 2001 and 2002 were as follows:
Thousands of
U.S. dollars
2002

Millions of yen
2001
2002
¥696

10.

¥705

$5,291

Leases

The following pro forma amounts present the acquisition costs, accumulated depreciationand net book value of the leased property as of March 31, 2001 and 2002, which would
have been reflected in the balance sheets if finance leases other than those which transfer
the ownership of the leased property of the Company and its consolidated subsidiaries(which are currently accounted for as operating leases) were capitalized:
Millions of yen
2002

2001
Acquisition
costs

Accumulated
depreciation

Net bookvalue

Acquisition
costs

Accumulated
depreciation

Net book
value

¥606

¥359

¥247

¥629

¥397

¥232

Machinery,equipment andvehiclesThousands of U.S. dollars
2002
Acquisition
costs

Accumulated
depreciation

Net book
value$4,720$2,979$1,741

Machinery,equipment andvehiclesThe related lease payments and depreciation for the years ended March 31, 2001 and 2002
were as follows:

Millions of yen
2001
2002
Lease payments
Depreciation

¥119
119

¥118
118

Thousands of
U.S. dollars
2002
$886
886

Depreciation is calculated by the straight-line method over the respective lease terms.
24

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
10.

Leases (continued)

The related future minimum payments (including the interest portion thereon) subsequent
to March 31, 2002 under finance leases other than those which transfer the ownership ofthe leased property to the Company and its consolidated subsidiaries are summarized asfollows:

Year ending March 31,
20032004 and thereafter

11.

Millions of yen

Thousands of
U.S. dollars

¥109
123
¥232

$ 818
923
$1,741

Contingent Liabilities

As of March 31, 2002, the Company and its consolidated subsidiaries had the following
contingent liabilities:

Guarantees of housing loans of employees andindebtedness of unconsolidated subsidiaries
Contingent liability for an in-substancedefeasance on bonds
12.

Millions of yen

Thousands of
U.S. dollars¥2,522$18,927

5,002

37,538Derivatives

The Company and its consolidated subsidiaries have entered into various transactions
involving derivatives in order to manage certain risks arising from adverse fluctuation inforeign currency exchange rates and interest rates. Derivatives positions involve the riskthat the counterparties may default on their obligations. Forward foreign exchange
contracts and interest-rate swaps entail the risk of fluctuation in foreign currency
exchange rates and interest rates, respectively. The Company and its consolidated
subsidiaries select only financial institutions with high credit ratings as counterparties inorder to minimize their risk.
The Company and its consolidated subsidiaries have not entered into derivatives
transactions whose fluctuation in fair value is material and which could thus impact
significantly on their operations. The Company and its consolidated subsidiaries haveestablished policies to report and approve the purpose, nature, counterparties, inherent risk,
limit on loss and the level of risk of each transaction. Under their policies for derivatives,
trading is not entered into for speculative purposes.
At March 31, 2001 and 2002, all derivatives positions qualified for the application ofdeferred hedge accounting and, thus, have not been separately disclosed.
25

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
13.

Amounts per Share

The computation of net income or loss per share is based on the weighted average numberof shares of common stock outstanding during each year.
Net assets per share are based on the number of shares of common stock outstanding at
the year end.
Cash dividends per share represent the cash dividends proposed by the Board of Directors
as applicable to the respective years together with the interim cash dividends paid.
Amounts per share at March 31, 2001 and 2002 and for the years then ended were as
follows:
Yen
Net assets
Net income (loss)
Cash dividends applicable tothe year

14.

2001

2002

U.S. dollars
2002¥664.8811.66¥704.39(19.52)$5.29(0.15)

7.00

7.00

0.05

Segment Information

The Company and its consolidated subsidiaries are primarily engaged in the manufactureand sale of a variety of steel products such as steel sheets, construction materials,
prefabricated structures, home furnishings, steel rolls and billets, and gratings. The
Company also engages in other activities such as real estate rental and engineering
projects.

26

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
14.

Segment Information (continued)

The business and geographical segments of the Company and its consolidated subsidiaries
for the years ended March 31, 2001 and 2002 are outlined as follows:Business Segments
Millions of yen
Year ended March 31, 2001

Steel sheet
products

Electric
furnaceproducts

Other

Total

Eliminations andgeneralcorporate
assetsConsolidated

I. Sales and operating
incomeSales to third parties
Intergroup sales andtransfers
Total sales
Operating expenses
Operating income¥132,979¥10,423¥10,461¥153,863¥–¥153,863

0132,979
130,565¥ 2,4144
10,427
10,165¥ 262

7,069
17,53016,374¥ 1,156

7,073
160,936
157,104¥ 3,832(7,073)(7,073)(6,088)¥ (985)–
153,863
151,016¥ 2,847

II. Assets, depreciationand capital
expenditures
Total assets
Depreciation
Capital expenditures¥135,672
7,420
20,448¥ 11,998
536
213¥22,032555
825¥169,702
8,511
21,486¥50,106115
142¥219,808
8,626
21,628Eliminations andgeneralcorporate
assetsConsolidated

Millions of yen
Year ended March 31, 2002

Steel sheet
products

Electric
furnaceproducts

Other

Total

I. Sales and operating
incomeSales to third parties
Intergroup sales andtransfers
Total sales
Operating expenses
Operating income¥127,020¥ 9,229¥ 8,822¥145,071¥–¥145,0710
127,020
125,270¥ 1,750

–
9,229
9,181
¥
48

4,527
13,34912,433¥ 916

4,527
149,598
146,884¥ 2,714(4,527)(4,527)(3,644)¥ (883)145,071
143,240¥ 1,831

II. Assets, depreciationand capital
expenditures
Total assets
Depreciation
Capital expenditures¥119,342
6,638
2,083

¥10,098452
173¥24,295535
410¥153,735
7,625
2,666

¥ 43,949
123
102¥197,684
7,748
2,768

–

27

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
14.

Segment Information (continued)

Business Segments (continued)
Thousands of U.S. dollars
Year ended March 31, 2002

I. Sales and operating
incomeSales to third parties
Intergroup sales andtransfers
Total sales
Operating expenses
Operating income
II. Assets, depreciationand capital
expenditures
Total assets
Depreciation
Capital expenditures

Eliminations andgeneralcorporate
assetsSteel sheet
products

Electric
furnaceproducts

Other

Total

$ 953,246$69,261$ 66,206$1,088,713$

0953,246
940,113$ 13,133–
69,261
68,901$ 360

33,974
100,180
93,306$ 6,874

33,974
1,122,687
1,102,320$ 20,367(33,974)–(33,974) 1,088,713(27,348) 1,074,972$ (6,626) $ 13,741$ 895,625
49,816
15,632$75,782
3,392
1,298

$182,326
4,015
3,077

$1,153,733
57,22320,007$329,824 $1,483,557
923
58,146765
20,772

Consolidated– $1,088,713

Geographical Segments
Millions of yen

JapanYear ended March 31, 2001
Eliminations
and general
Southeast
corporate
assets
Total
Asia

Consolidated

I. Sales and operating
incomeSales to third parties
Interarea sales andtransfers
Total sales
Operating expenses
Operating income¥123,326¥30,537¥153,863¥–¥153,863

575
123,901
122,621¥ 1,280–
30,53728,970¥ 1,567575
154,438
151,591¥ 2,847

(575)
(575)
(575)
¥
–

–
153,863
151,016¥ 2,847

II. Assets¥153,483¥26,119¥179,602¥40,206¥219,808

28

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
14.

Segment Information (continued)

Geographical Segments (continued)

Japan

Millions of yen
Year ended March 31, 2002
Eliminations
and general
corporate
Southeast
assetsAsia
Total

Consolidated

I. Sales and operating
incomeSales to third parties
Interarea sales andtransfers
Total sales
Operating expenses
Operating income¥104,337¥40,734¥145,071¥–¥145,071

60
104,397
103,956¥
441–
40,734
39,413¥ 1,32160
145,131
143,369¥ 1,762

(60)
(60)
(129)
¥
69

–
145,071
143,240¥ 1,831

II. Assets¥131,031¥30,000¥161,031¥36,653¥197,684

Japan

Thousands of U.S. dollars
Year ended March 31, 2002
Eliminations
and general
Southeast
corporate
Asia
Total
assetsConsolidated

I. Sales and operating
incomeSales to third parties
Interarea sales andtransfers
Total sales
Operating expenses
Operating income$783,017$305,696$1,088,713

450
783,467
780,158$ 3,309–305,696295,782$ 9,914

II. Assets$983,347$225,140$–$1,088,713

450
1,089,163
1,075,940$ 13,223

$

(450)
(450)
(968)
518

–
1,088,713
1,074,972$ 13,741$1,208,488$275,069$1,483,557

As described in Note 1(n), the Company and its domestic consolidated subsidiaries
adopted a new accounting standard for retirement benefits effective April 1, 2000. The
effects of this adoption on the above segment information for the year ended March 31,
2001 are summarized as follows:
Millions of yen
By business segment:
Decrease in operating income in the “steel sheet
products” segment
Decrease in operating income in the “electric furnace
products” segment
Decrease in operating income in the “other” segment
By geographic area:
Decrease in operating income in the “Japan” area

¥112
44
45
¥201

29

Yodogawa Steel Works, Ltd.
Notes to Consolidated Financial Statements (continued)
14.

Segment Information (continued)

Geographical Segments (continued)
Overseas sales which include export sales of the Company and its domestic consolidated
subsidiaries and sales (other than exports to Japan) of the foreign consolidated subsidiaryfor the years ended March 31, 2002 and 2001 are summarized as follows:
Millions of yen
Year ended March 31, 2001
Asia
Other
Total
¥25,224¥11,576¥ 36,800
153,863

Overseas sales
Consolidated net sales
Overseas sales as a percentage ofconsolidated net sales

16.4%

15.

23.9%

Millions of yen
Year ended March 31, 2002
Asia
Other
Total
¥36,958¥9,227¥ 46,185
145,071

Overseas sales
Consolidated net sales
Overseas sales as a percentage ofconsolidated net sales

Overseas sales
Consolidated net sales

7.5%

25.5%

6.3%

31.8%

Thousands of U.S. dollars
Year ended March 31, 2002
Asia
Other
Total
$277,358$69,246$ 346,604
1,088,713

Subsequent Events

On May 27, 2002, the Board of Directors approved a resolution for the Company todispose a pressing and a plating production line at the Kure Plant in September 2002.
The Company anticipates the related loss, which will be recorded in the year ending
March 31, 2003, to be approximately ¥950 million ($7,129 thousand).
The following appropriations of retained earnings of the Company, which have not beenreflected in the accompanying consolidated financial statements for the year ended March
31, 2002, were approved at a shareholders’ meeting held on June 27, 2002:

Cash dividends of ¥3.5 ($0.03) per share

Millions of yen¥645

Thousands of
U.S. dollars$4,84130

Non-Consolidated Financial Statements
Yodogawa Steel Works, Ltd.
Years ended March 31, 2001 and 2002
with Independent Auditors’ Report31Independent Auditors’ Reporton Non-Consolidated Financial Statements

The Board of Directors and the Shareholders
Yodogawa Steel Works, Ltd.

We have audited the non-consolidated balance sheets of Yodogawa Steel Works, Ltd. as of March 31,
2001 and 2002, and the related non-consolidated statements of operations and shareholders’ equity for theyears then ended, all expressed in yen. Our audits were made in accordance with auditing standards,
procedures and practices generally accepted and applied in Japan and, accordingly, included such tests of
the accounting records and such other auditing procedures as we considered necessary in thecircumstances.
In our opinion, the accompanying non-consolidated financial statements, expressed in yen, present fairly
the financial position of Yodogawa Steel Works, Ltd. at March 31, 2001 and 2002, and the results of its
operations for the years then ended in conformity with accounting principles and practices generally
accepted in Japan applied on a consistent basis.
As described in Note 1, Yodogawa Steel Works, Ltd. adopted new accounting standards for employees’
retirement benefits, financial instruments and foreign currency translation effective the year ended March
31, 2001 in the preparation of its non-consolidated financial statements.
The U.S. dollar amounts in the accompanying non-consolidated financial statements with respect to theyear ended March 31, 2002 are presented solely for convenience. Our audit also included the translationof yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis
described in Note 2.

Osaka, Japan
June 27, 2002
See Note 1 which explains the basis of preparation of the non-consolidated financial statements of
Yodogawa Steel Works, Ltd. under Japanese accounting principles and practices.

32

Yodogawa Steel Works, Ltd.
Non-Consolidated Balance Sheets
March 31, 2001 and 2002

Millions of yen
2001
2002
AssetsCurrent assets:
Cash and cash equivalents
Short-term investments
Marketable securities (Note 3)
Notes and accounts receivable:
Subsidiaries and affiliates
Trade
Less allowance for doubtful receivables
Inventories (Note 4)
Deferred income taxes (Note 6)
Other current assets
Total current assets

Property, plant and equipment (Note 5):Land
Buildings and structures
Machinery, equipment and vehicles
Construction in progress
Less accumulated depreciation
Property, plant and equipment, net
Investments and other assets:
Investments in securities (Note 3)
Investments in and advances to subsidiaries andaffiliates (Note 3)
Deferred income taxes (Note 6)
Other assets
Total investments and other assets

Total assets

33

Thousands of
U.S. dollars(Note 2)
2002

¥ 19,072–
3,132¥ 14,025
1,000
3,112

$ 105,253
7,505
23,35422,052
23,392(130)
27,520422
2,506
97,966

15,38014,747(59)
24,556583
4,774
78,118

115,422
110,672(442)
184,285
4,375
35,827586,251

18,27041,877
103,567
134(106,587)
57,261

12,17640,781
102,788
270(109,968)
46,047

91,377
306,049
771,392
2,026(825,276)
345,568

17,867

19,533

146,589

12,922685
1,674
33,14818,829242
1,629
40,233

141,306
1,816
12,226
301,937¥ 188,375¥ 164,398$1,233,756

Millions of yen
2001
2002
Liabilities and shareholders’ equity
Current liabilities:
Short-term bank loans (Note 5)
Current portion of long-term debt (Note 5)
Notes and accounts payable:
Subsidiaries and affiliates
Trade
Construction
Accrued expenses
Accrued income taxes (Note 6)
Allowance for loss on restructuring
Other current liabilities
Total current liabilities

Thousands of
U.S. dollars(Note 2)
2002

¥ 9,780
5,000¥ 7,780
5,000

2,359
21,204
1,044
3,342
29
–
2,010
44,768

1,686
11,184
1,091
2,902
135
568
2,271
32,617

12,65383,932
8,188
21,7791,013
4,263
17,043244,780

5,000
7,550
1,252

–
6,783
1,041

–
50,904
7,812

13,802

7,824

58,716

Treasury stock, at cost

23,221–
23,497
3,402
79,685–––23,221
23,497
3,478
70,041
3,722(2)–
174,266
176,338
26,101
525,636
27,933(14)

Total shareholders’ equity

129,805

123,957

930,260¥188,375¥164,398$1,233,756

Long-term liabilities:
Long-term debt (Note 5)
Accrued retirement benefits
Guarantee deposits (Note 5)
Total long-term liabilities$

58,38637,523

Contingent liabilities (Note 10)
Shareholders’ equity (Note 7):
Common stock:
Authorized:
March 31, 2001 – 772,439,000 shares
March 31, 2002 – 753,814,067 shares
Issued:March 31, 2001 – 202,811,086 shares
March 31, 2002 – 184,186,153 shares
Additional paid-in capital
Legal reserve (Note 12)
Retained earnings (Note 12)
Unrealized holding gain on securities (Note 3)

Total liabilities and shareholders’ equity

See accompanying notes to non-consolidated financial statements.
34

Yodogawa Steel Works, Ltd.
Non-Consolidated Statements Operations
Years ended March 31, 2001 and 2002
Thousands of
U.S. dollars(Note 2)
2002

Millions of yen
2001
2002
Net sales
Cost of sales
Gross profit¥111,066
93,455
17,611¥93,688
78,096
15,592$703,099
586,086
117,013

16,515
1,096

15,061
531

113,028
3,985

1,528
(373)
991
(392)

1,109
(230)
(82)
(5,065)8,322(1,726)(615)(38,011)

2,125
–
(725)
–

(298)
(583)
–
(568)

(2,237)(4,375)(4,263)

1,627

–

–

(2,087)(2,123)
1,667

–
(385)
(5,571)(2,889)(41,809)

236
318
554
1,113

142
(2,414)
2,272(3,299)1,066(18,116)
17,051$ (24,758)

Selling, general and administrative expenses (Note 8)
Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Gain (loss) on sales of securities
Loss on revaluation of securities
Gain (loss) on sales or disposal of property, plant andequipment, net
Loss on disposal of inventories
Loss on restructuring
Provision of allowance for loss on restructuring
Gain on contribution of securities to employees’
retirement benefit trust
Net retirement benefit obligation at transition (Note1(m))
Other, net
Income (loss) before income taxes
Income taxes (Note 6):
Current
Deferred
Net income (loss)

¥

¥

–

–

See accompanying notes to non-consolidated financial statements.
35

Yodogawa Steel Works, Ltd.
Non-Consolidated Statements of Shareholders’ Equity
Years ended March 31, 2001 and 2002

Thousands of
U.S. dollars(Note 2)
2002

Millions of yen
2001
2002
Common stock¥23,221¥23,221$174,266¥23,497¥23,497$176,338¥ 3,250¥ 3,402$ 25,531

152¥ 3,40276¥ 3,478570$ 26,101¥82,847¥79,685$598,011

1,113

–

–

Balance at end of the year

–
1,470
50
152
2,603
¥79,685

3,299
1,396
50
76
4,823
¥70,041

24,758
10,477375
570
36,195$525,636

Unrealized holding gain on securities (Note 3)
Balance at beginning of the year

¥

–
–

¥

$

¥

–

¥ 3,722

Balance at beginning and end of the year
Additional paid-in capital
Balance at beginning and end of the year
Legal reserve
Balance at beginning of the year
Add:
Transfer from retained earnings
Balance at end of the year
Retained earnings
Balance at beginning of the year
Add:
Net income
Deduct:Net loss
Cash dividends paid
Bonuses to directors and statutory auditors
Transfer to legal reserve
Retirement of treasury stock

Net change during the year
Balance at end of the year

–
3,722

–
27,933$ 27,933

See accompanying notes to non-consolidated financial statements.
36

Yodogawa Steel Works, Ltd.
Notes to Non-Consolidated Financial Statements
March 31, 2002

1.

Summary of Significant Accounting Policies(a) Basis of Preparation
The accompanying non-consolidated financial statements of Yodogawa Steel Works, Ltd. (the“Company”) have been prepared in accordance with accounting principles and practices generally
accepted and applied in Japan, which may differ in certain material respects from accounting
principles and practices generally accepted in countries and jurisdictions other than Japan, and havebeen compiled from those prepared by the Company as required under the Securities and Exchange
Law of Japan.
In addition, the notes to the non-consolidated financial statements include information which is not
required under accounting principles generally accepted in Japan but is presented herein as additional
information.
Certain reclassifications of previously reported amounts have been made to the non-consolidated
financial statements for the year ended March 31, 2001 to conform them to the 2002 presentation.
Such reclassifications had no effect on net income or shareholders’ equity.
(b) Foreign Currency Translation
Monetary assets and liabilities denominated in foreign currencies are translated into yen at the rates of
exchange in effect at the balance sheet date. Other assets and liabilities denominated in foreign
currencies are translated at their historical rates. All revenues and expenses associated with foreign
currencies are translated at the rates of exchange prevailing when such transactions were made. The
resulting exchange losses and gains are charged or credited to income.
Effective April 1, 2000, the Company adopted a revised accounting standard for foreign currencytranslation. The effect of the adoption of the revised standard on the non-consolidated financial
statements was immaterial for the year ended March 31, 2001.
(c) Cash Equivalents
Cash and cash equivalents consist of cash on hand, deposits with banks withdrawable on demand,and short-term investments which are readily convertible to cash subject to an insignificant risk ofchanges in their value and which were purchased with an original maturity of three months or less.

37

Yodogawa Steel Works, Ltd.
Notes to Non-Consolidated Financial Statements (continued)

1.

Summary of Significant Accounting Policies (continued)(d) Securities
Up to the year ended March 31, 2000, marketable securities were stated at the lower of cost or market,
cost being determined by the moving average method, and securities other than marketable securities
were stated at cost determined by the moving average method.
Effective April 1, 2000, the Company adopted a new accounting standard for financial instruments
which requires that securities be classified into three categories: trading securities, held-to-maturity
debt securities or other securities. Under this standard, trading securities are carried at fair value
and gain and loss, both realized and unrealized, are charged to income. Held-to-maturity debt
securities are carried at their amortized cost. Marketable securities classified as other securities arecarried at fair value with any changes in unrealized holding gain or loss, net of the applicable income
taxes, reported as a separate component of shareholders’ equity. Non-marketable securities
classified as other securities are carried at cost.
As permitted under the new standard, the Company postponed recording marketable securities
classified as other securities at fair value, from the current year, to the year ended March 31, 2002.
The following pro forma amounts represent the carrying value, fair value, unrealized holding gain(net of the applicable income taxes) and the deferred tax liability (the applicable income taxes on the
unrealized holding gain), which would have been reflected in the non-consolidated balance sheet atMarch 31, 2001 if marketable securities classified as other securities had been carried at fair value:
Millions of yen
Carrying value
Fair value
Unrealized holding gain
Deferred tax liability¥20,883
31,3346,091
4,410

As of April 1, 2000, the Company assessed its intent in holding its securities, classified them as“held-to-maturity debt securities” and “other securities,” and accounted for the securities at March 31,
2001 in accordance with the new standard referred to above. As a result, securities of ¥17,599
million, which had been included in marketable securities at March 31, 2000, were reclassified toinvestments in securities as of April 1, 2000. The effect of the adoption of this standard forfinancial instruments was to increase income before income taxes by ¥1,428 million for the year
ended March 31, 2001.

38

Yodogawa Steel Works, Ltd.
Notes to Non-Consolidated Financial Statements (continued)

1.

Summary of Significant Accounting Policies (continued)(d) Securities (continued)
Effective April 1, 2001, the Company recorded marketable securities classified as other securities atfair value as required under the new accounting standard for financial instruments.
At March 31, 2002, the effect of this treatment was to record initially unrealized holding gain on
securities of ¥3,721 million ($27,925 thousand) and to increase marketable securities, investments insecurities and deferred tax liabilities by ¥2 million ($15 thousand), ¥6,414 million ($48,135
thousand) and ¥2,695 million ($20,225 thousand), respectively.
(e) Inventories
Finished goods, work in process and raw materials are stated at cost determined principally by thelast-in, first-out method. Supplies are stated at cost determined by the first-in, first-out method.
Real estate held for sale is stated at cost determined by the specific identification method.
(f)

Property, Plant and Equipment and Depreciation
Property, plant and equipment is stated on the basis of cost.
Depreciation of property, plant and equipment is calculated by the declining-balance method over theuseful lives of the respective assets, except that the straight-line method is applied to buildings(except for structures attached to the buildings) acquired subsequent to April 1, 1998.
The useful lives adopted for calculating depreciation are principally as follows:
Buildings and structures
Machinery, equipment and vehicles
Significant renewals and additions are capitalized at cost.
income as incurred.

3 to 50 years
4 to 17 years
Maintenance and repairs are charged to(g) Intangible Assets
Intangible assets are stated on the basis of cost. Amortization is calculated by the straight-line
method over the useful lives of the respective assets.

39

Yodogawa Steel Works, Ltd.
Notes to Non-Consolidated Financial Statements (continued)

1.

Summary of Significant Accounting Policies (continued)(h) Allowance for Doubtful Receivables
Up to the year ended March 31, 2000, the Company provided an allowance for doubtful receivables
principally at an estimated aggregate amount of probable bad debts plus the maximum amountpermitted to be charged to income under the Corporation Tax Law of Japan.
Effective April 1, 2000, the Company adopted a new accounting standard for financial instruments.
Under the new accounting standard, the Company provided an allowance for doubtful receivables at
an amount calculated based on the Company’s historical experience of bad debts on ordinary
receivables plus an additional estimate of probable specific bad debts from customers experiencing
financial difficulties. The aggregate effect of the adoption of the new standard is disclosed in
Note 1(d), “Securities.”(i)

Research and Development Costs and Computer Software
Research and development costs are charged to income as incurred.
Expenditures relating to the development of computer software intended for internal use are charged
to income when incurred, unless these are deemed to contribute to the generation of future income or
cost savings. Such expenditures are capitalized as assets and amortized by the straight-line method
over their estimated useful life of five years.

(j)LeasesThe Company leases certain equipment under noncancelable leases referred to as finance leases.
Finance leases other than those which transfer the ownership of the leased property to the Company
are accounted for as operating leases.

(k) Income Taxes
Deferred income taxes are provided for temporary differences between the balances of assets andliabilities for financial reporting purposes and the corresponding balances for tax reporting purposes.
(l)Allowance for Loss on Restructuring
The Company has provided an allowance for loss on restructuring arising from the discontinuation of
its household articles business at an estimated amount of the loss to be incurred.

40

Yodogawa Steel Works, Ltd.
Notes to Non-Consolidated Financial Statements (continued)

1.

Summary of Significant Accounting Policies (continued)(m) Retirement Benefits
Employees of the Company are covered by an employees’ retirement benefit plan and an employees’
pension plan. The employees’ retirement benefit plan provides for a lump-sum payment determinedby reference to the basic salary, length of service and the conditions under which the termination
occurs. The employees’ pension plan, which is a funded non-contributory plan, partially covers thebenefits under the employees’ retirement benefit plan to employees who retire after fifteen or more
years of service.
Up to the year ended March 31, 2000, accrued retirement benefits were stated at the amount which
would be required to be paid if all employees covered by the retirement benefit plan voluntarily
terminated their employment at the balance sheet date, less the assets of the pension plan.
Effective April 1, 2000, the Company adopted a new accounting standard for retirement benefits.
In accordance with this standard, accrued retirement benefits for employees at March 31, 2001 were
provided mainly at an amount calculated based on the retirement benefit obligation less the fair valueof the pension plan assets as of March 31, 2001, as adjusted for unrecognized actuarial loss. The
retirement benefit obligation is allocated to each period by the straight-line method over the estimatedyears of service of the eligible employees. The net retirement benefit obligation at transition of¥2,087 million was fully charged to income for the year ended March 31, 2001. The effect of the
adoption of this standard for retirement benefits was to decrease income before income taxes by ¥582
million for the year ended March 31, 2001.
Actuarial gain and loss are amortized in the year following the year in which the gain or loss isrecognized by the straight-line method over 10 years, which is within the estimated averageremaining years of service of the eligible employees.
The directors and statutory auditors of the Company are customarily entitled to lump-sum payments
under the unfunded retirement benefit plan. The provision for retirement benefits for directors andstatutory auditors has been made at an estimated amount based on the Company’s internal rules.

41

Yodogawa Steel Works, Ltd.
Notes to Non-Consolidated Financial Statements (continued)

1.

Summary of Significant Accounting Policies (continued)(n) Hedge Accounting
Under the new accounting standard for financial instruments which became effective April 1, 2000,
gain or loss on derivatives designed as hedging instruments is deferred until the loss or gain on theunderlying hedged item is recognized. Interest-rate swaps which meet certain conditions areaccounted for as if the interest rates applied to the swaps had originally applied to the underlying debt
and others. Receivables and payables hedged by forward foreign exchange contracts which meetcertain conditions are translated at the corresponding foreign exchange contract rates.

2.

U.S. Dollar Amounts

The translation of yen amounts into U.S. dollar amounts is included solely for convenience, as a matter ofarithmetic computation only, at the rate of ¥133.25 = U.S.$1.00, the approximate exchange rate
prevailing on March 31, 2002. The translation should not be construed as a representation that yen havebeen, could have been, or could in the future be, converted into U.S. dollars at the above or any other rate.

3.

Securities

Information with respect to securities at March 31, 2001 and 2002 is disclosed on a consolidation basis.
See Note 3 to the consolidated financial statements.
Information with respect to the carrying and fair value of, and unrealized loss on, securities withdeterminable market value included in investments in and advances to subsidiaries and affiliates at March
31, 2001 and 2002 is summarized as follows:
Millions of yen
2001

Investments in a
subsidiary

Carrying
value¥11,310

2002

Fair value

Unrealized
loss

Carrying
value

Fair value

Unrealized
loss¥ 8,712¥ (2,598)¥11,310¥8,699¥(2,611)

Thousands of U.S. dollars
2002

Investments in a
subsidiary

Carrying
value

Fair value

Unrealized
loss$84,878$65,283$(19,595)

42

Yodogawa Steel Works, Ltd.
Notes to Non-Consolidated Financial Statements (continued)

4.

Inventories

Inventories at March 31, 2000 and 2001 were as follows:
Thousands of
U.S. dollars
2002

Millions of yen
2001
2002
Finished goods
Work in process
Raw materials and supplies
Real estate held for sale

5.

¥16,652
3,554
7,185
129
¥27,520¥13,632
3,275
6,932
717
¥24,556$102,304
24,57852,022
5,381$184,285

Short-Term Bank Loans, Long-Term Debt and Guarantee Deposits

Short-term bank loans represent overdrafts at annual interest rates of approximately 0.58% and 0.846% at
March 31, 2001 and 2002, respectively.
Long-term debt at March 31, 2001 and 2002 was as follows:
Thousands of
U.S. dollars
2002

Millions of yen
2001
2002
1.8% unsecured bonds, payable in yen,due 2003
Unsecured loans from banks and an
insurance company, due 2002, at aninterest rate of 1.72%
Less current portion¥ 5,000¥ 5,000$ 37,523

5,000

–

–

10,000(5,000)5,000(5,000)37,523(37,523)¥ 5,000

¥

–

$

–

The assets pledged as collateral for short-term bank loans at March 31, 2002 were as follows:

Property, plant and equipment, at net book value

Millions of yen

Thousands of
U.S. dollars¥28,725$215,572

Guarantee deposits, principally from customers, have an average annual interest rate of 2.12%.
guarantee deposits fall due during the years ending March 31, 2008 and thereafter.

These

43

Yodogawa Steel Works, Ltd.
Notes to Non-Consolidated Financial Statements (continued)

6.

Income Taxes

Income taxes applicable to the Company comprise corporation, enterprise and inhabitants’ taxes which, inthe aggregate, resulted in a statutory tax rate of approximately 42.0% for the years ended March 31, 2001
and 2002.
A reconciliation of the statutory tax rate and the effective tax rate for the year ended March 31, 2001 as apercentage of income before income taxes is as follows:
2001
Statutory tax rate
Nondeductible expenses
Nontaxable income
Foreign tax credit
Per capita portion of inhabitants’ taxes

42.0%
3.4
(8.3)
(3.8)
3.1
(3.2)

Other

33.2%

Effective tax rate

The corresponding information for the year ended March 31, 2002 has been omitted because a loss before
income taxes was recorded.
The significant components of the Company’s deferred tax assets and liabilities at March 31, 2001 and2002 are summarized as follows:

Millions of yen
2001
2002

Deferred tax assets:
Accrued retirement benefits for employees
Accrued retirement benefits for directors andstatutory auditors
Accrued bonuses
Allowances for doubtful receivables
Allowance for loss on restructuring
Excess foreign tax deduction
Loss on revaluation of securities
Tax loss carryforward
Other
Total deferred tax assets

Thousands of U.S.
dollars2002¥ 1,520¥ 1,590$ 11,932

484
165
127
–
161
161
–
35

174
225
81
239
241
524
1,764
95

1,306
1,689
608
1,794
1,809
3,932
13,238
713

2,653

4,933

37,021

Deferred tax liabilities:
Unrealized holding gain on securities
Reserve for deferred taxation on contributions
for acquisition of property–(2,695)(20,225)(1,546)(1,412)(10,597)

Total deferred tax liabilities(1,546)(4,107)(30,822)¥$ 6,199

Net deferred tax assets¥ 1,107826

44

Yodogawa Steel Works, Ltd.
Notes to Non-Consolidated Financial Statements (continued)

7.

Shareholders’ Equity

The Commercial Code of Japan provides that an amount equivalent to at least 10% of cash dividends paid
and bonuses to directors and statutory auditors, and exactly 10% of interim cash dividends paid be
appropriated to the legal reserve until the sum of additional paid-in capital and the legal reserve equals
25% of stated capital. The Code also provides that neither additional paid-in capital nor the legal
reserve is available for dividends but both may be used to reduce or eliminate a deficit by resolution of theshareholders or may be transferred to stated capital by resolution of the Board of Directors.
Due to a change effective the year ended March 31, 2002 in the regulations relating to the presentation oftreasury stock, treasury stock has been presented as a deductive component of shareholders’ equity in theaccompanying non-consolidated balance sheet at March 31, 2002.

8.

Research and Development Costs

Research and development costs included in selling, general and administrative expenses for the years
ended March 31, 2001 and 2002 were as follows:

Millions of yen
2001
2002
¥490

¥453

Thousands of
U.S. dollars
2002$3,40045

Yodogawa Steel Works, Ltd.
Notes to Non-Consolidated Financial Statements (continued)

9.

Leases

The following pro forma amounts present the acquisition costs, accumulated depreciation and net bookvalue of the leased property as of March 31, 2001 and 2002, which would have been reflected in thebalance sheets if finance leases other than those which transfer the ownership of the leased property to theCompany (which are currently accounted for as operating leases) were capitalized:
Millions of yen
2001

Machinery,equipment andvehicles2002

Acquisition
costs

Accumulated
depreciation

Net bookvalue

Acquisition
costs

Accumulated
depreciation

Net book
value

¥317

¥199

¥118

¥329

¥186

¥143

Thousands of U.S. dollars
2002

Machinery,equipment andvehiclesAcquisition
costs

Accumulated
depreciation

Net bookvalue$2,469$1,396$1,073

The related lease payments and depreciation for the years ended March 31, 2001 and 2002 were as
follows:

Millions of yen
2002
2001
Lease payments
Depreciation

¥67
67

¥66
66

Thousands of
U.S. dollars
2002
$495
495

Depreciation is calculated by the straight-line method over the respective lease terms.
The related future minimum payments (including the interest portion thereon) subsequent to March 31,
2002 under finance leases other than those which transfer the ownership of the leased property to theCompany are summarized as follows:

Millions of yen

Thousands of
U.S. dollars

¥ 58
85

$ 435
638

¥143

$1,073

Year ending March 31,
20032004 and thereafter46

Yodogawa Steel Works, Ltd.
Notes to Non-Consolidated Financial Statements (continued)

10.

Contingent Liabilities

At March 31, 2002, the Company had the following contingent liabilities:

Guarantees of housing loans of employees and indebtednessof subsidiaries
Contingent liability for in-substance defeasance on bonds

11.

Millions of yen

Thousands of
U.S. dollars

¥ 261
5,002

$ 1,959
37,538Amounts per Share

The computation of net income or loss per share is based on the weighted average number of shares ofcommon stock outstanding during each year.
Net assets per share are based on the number of shares of common stock outstanding at the year end.
Cash dividends per share represent the cash dividends proposed by the Board of Directors as applicable to
the respective years together with the interim cash dividends paid.
Effective the year ended March 31, 2002, the number of shares of treasury stock is deducted from theoutstanding shares of common stock in computing the amounts per share in accordance with anamendment to the Securities and Exchange Law of Japan.
Amounts per share at March 31, 2001 and 2002 and for the years then ended were as follows:Yen

Net assets
Net income (loss)
Cash dividends applicable to the year

12.

2001

2002

U.S. dollars
2002¥640.03
5.35
7.00¥673.02(16.94)7.00$5.05(0.13)
0.05

Subsequent Events

See Note 15 to the consolidated financial statements.

47