Issue of Annual Report 2010

6. Shareholders’ Equity
Retained earnings include a legal reserve provided in accordance with the provisions of the Commercial Code. This reserve is not available for
the payment of dividends, but it may be used to reduce or eliminate a deficit by resolution of the shareholders or may be transferred to common
stock by resolution of the Board of Directors.
7. Other Income (Expenses)
“Other income (expenses)—Other, net” for each of the three years in the period ended December 31, 2010 consisted of the following:
Millions of yen
Thousands of
U.S. dollars (Note 1)
2010 2009 2008 2010
Gain on gift voucher redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 677 ¥ 532 ¥ – $ 8,316
Equity in income of affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 611 276 – 7,501
Loss on disposal of inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – (1,103) –
Equity in loss of affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – (1) –
Gain on sales of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . 16,576 948 25,893 203,532
Gain on sales of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 645 20 21 7,917
Reversal of provision for doubtful receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 – 11 758
Reversal of removal costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 569 – – 6,987
Compensation income from store closures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – 111 –
Loss on disposal of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . (1,724) (1,524) (5,836) (21,163)
Loss on sales of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . (8,410) – – (103,261)
Loss on impairment of property, plant and equipment. . . . . . . . . . . . . . . . . . . . (2,375) (926) (8,207) (29,157)
Devaluation of marketable securities and investments . . . . . . . . . . . . . . . . . . . (1,246) (244) (747) (15,294)
Provision for gift voucher redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – (747) –
Loss on revision of retirement benefit plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – (1,307) –
Early retirement benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – (305) –
Business reorganization costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (664) – (1,444) (8,157)
Loss on devaluation of inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – (125) – –
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226 (291) (306) 2,777
¥ 4,948 ¥(1,334) ¥ 6,033 $ 60,755
8. Contingent Liabilities
Contingent liabilities at December 31, 2010 and 2009 are summarized as follows:
Millions of yen
Thousands of
U.S. dollars (Note 1)
2010 2009 2010
Guarantee of loans, principally loans for employees’ housing . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,069 ¥1,164 $13,130
SAPPORO HOLDINGS LIMITED
Annual Report 2010
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