Toyota 2015 Annual Report Download - page 180

TOYOTA MOTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Model AA Class Shares will not be treated as shareholders’ equity because the shareholders of the
Model AA Class Shares will have cash put options and hence, the Model AA Class Shares will be reported as
mezzanine equity, a separate line item between liabilities and shareholders’ equity.
As of March 31, 2016, unpaid dividends which are included in mezzanine equity were ¥1,224 million.
The difference between the issuance amount and initial carrying amount of the mezzanine equity is adjusted
for accretion of the mezzanine equity over a period of time from the issuance date until the Class Shares can first
be redeemed.
17. Shareholders’ equity:
Changes in the number of shares of common stock issued have resulted from the following:
For the years ended March 31,
2014 2015 2016
Common stock issued
Balance at beginning of year ....................... 3,447,997,492 3,447,997,492 3,417,997,492
Issuance during the year ........................... — — —
Purchase and retirement ........................... — (30,000,000) (80,000,000)
Balance at end of year ........................ 3,447,997,492 3,417,997,492 3,337,997,492
The Companies Act provides that an amount equal to 10% of distributions from surplus paid by the parent
company and its Japanese subsidiaries be appropriated as a capital reserve or a retained earnings reserve. No
further appropriations are required when the total amount of the capital reserve and the retained earnings reserve
reaches 25% of stated capital.
The retained earnings reserve included in retained earnings as of March 31, 2015 and 2016 were
¥186,555 million and ¥182,518 million, respectively. The Companies Act provides that the retained earnings
reserve of the parent company and its Japanese subsidiaries is restricted and unable to be used for dividend
payments, and is excluded from the calculation of the profit available for dividend.
The amounts of statutory retained earnings of the parent company available for dividend payments to
shareholders were ¥7,635,250 million and ¥7,964,099 million as of March 31, 2015 and 2016, respectively. In
accordance with customary practice in Japan, the distributions from surplus are not accrued in the financial
statements for the corresponding period, but are recorded in the subsequent accounting period after shareholders’
approval has been obtained. Retained earnings at March 31, 2016 include amounts representing year-end cash
dividends of ¥334,144 million, ¥110 per common share, which were resolved at the Meeting of the Board of
Directors held on May 11, 2016.
Retained earnings at March 31, 2016 include ¥2,003,566 million relating to equity in undistributed earnings
of affiliated companies accounted for by the equity method.
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