Annual Report 2002 [PDF/1.6MB]

JapanThousands of U.S. DollarsOther areasEliminationsor CorporateConsolidatedYear ended March 31, 2002:Net sales:Outside customers$ 7,566,154$ 883,602$ $ 8,449,756Intersegment217,43377,246(294,679)Total7,783,587960,848(294,679)8,449,756Operating expenses7,732,713944,653(295,557)8,381,809Operating income (loss)$ 50,874$ 16,195$ 878$ 67,947Total assets$ 4,101,223$ 664,796$ (332,923)$ 4,433,096The principal countries included in “Other areas” are U.S.A., China, Malaysia and Thailand.13. OVERSEAS SALESOverseas sales which include export sales of the Company and its domestic consolidated subsidiaries and sales (other thanexports to Japan) of its foreign consolidated subsidiaries, totaled ¥229,920 million ($1,725,478 thousand) and ¥251,856million, or 20.4% and 19.7% of consolidated net sales for the years ended March 31, 2002 and 2001, respectively.14. LITIGATION“Royal Palm Resort” in Guam, which was developed by Kawasho International (Guam), Inc. (hereinafter referred to as “KIG”),suffered extensive damage due to an earthquake on August 8, 1993. Since defects in design and construction were found afterthorough investigation of the cause of the collapse of the building, the Company, KIG and other unit owners brought a suit inGuam claiming damages (of more than $135 million) against general constructors, Mitsui Construction Co., Ltd., Ssang YongEngineering and Construction Company (Korea) and other parties concerned.The acquisition cost of land of $19 million (¥2,590 million at March 31, 2002 and ¥2,253 million at March 31, 2001) at “RoyalPalm Resort” was recorded as a component of “Land” in property and equipment presented on the consolidated balance sheetsas of March 31, 2002 and 2001. The Companies also recorded damage compensation receivable of $180 million (¥23,804million) and $175 million (¥20,176 million) at March 31, 2002 and 2001, respectively, as a component of “Others” in investmentsand other assets on the consolidated balance sheets as of those dates.On December 14, 2001, it is related with claim for damages among these lawsuit, jurors awarded against Mitsui ConstructionCo., Ltd. and Ssang Yong Engineering and Construction Company $73 million for faulty construction that led to the collapse ofthe building. Jurors awarded against Ssang Yong Engineering and Construction Company $73 million (same as claim fordamages) for exemplay damages at April 16, 2002.15. SUBSEQUENT EVENTSThe disposition of the Company’s retained earnings deficit of ¥13,472 million ($101,103 thousand) as of March 31, 2002being carried forward to the year ending March 31, 2003 was approved at a meeting of the shareholders of the Company heldon June 27, 2002.50