*P01-22

2311,689,879ドル
11,380,226
309,653
9,978,564
9,679,072
299,492
726,005
786,497
303,430
477,732
$ 1.011.000.48
33,627,837ドル
27,924,609
16,716,642
6,537,6762001For the year:
Operating revenues:
Electric
Other
Operating expenses:
Electric
Other
Interest charges
Income before
income taxes
and minority interests
Income taxes
Net income
Per share of common stock
(yen and U.S. dollars):
Net income:
Basic
Diluted
Cash dividends
applicable to the year
At year-end:
Total assets
Net property
Long-term debt, less
current maturities
Total shareholders’ equity
1,448,376円
1,410,010
38,366
1,236,344
1,199,237
37,107
89,952
97,447
37,595
59,191
\ 124.83
123.65
60.00
4,166,489円
3,459,859
2,071,192
810,01820011,444,068円
1,409,492
34,576
1,238,582
1,206,622
31,960
134,781
71,475
37,420
33,655
\ 70.97
70.45
50.00
4,165,131円
3,665,153
2,365,687
659,9891998Consolidated Six-Year Financial Summary
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years ended March 31
Millions of yen
(except for per share data)
Thousands of
U.S. dollars
(except for
per share data)
1,413,983円
1,379,549
34,434
1,206,787
1,175,421
31,366
140,454
66,633
26,684
39,621
\ 83.56
82.86
50.00
4,162,484円
3,698,901
2,322,673
650,31219971,431,298円
1,397,061
34,237
1,199,799
1,169,255
30,544
146,132
88,657
42,915
45,322
\ 95.58
94.73
50.00
4,129,566円
3,654,595
2,327,481
634,69119961,430,164円
1,387,855
42,309
1,259,056
1,219,999
39,057
111,753
60,077
33,885
25,835
\ 54.48
54.21
50.00
4,123,686円
3,596,203
2,276,929
659,58819991,428,559円
1,392,148
36,411
1,246,791
1,211,227
35,564
107,190
39,490
16,058
22,934
\ 48.37
48.21
50.00
4,141,718円
3,528,297
2,137,509
725,5162000Note: All dollar figures herein refer to U.S. currency. Yen amounts have been translated, for convenience only, at 123円.90=U.S. 1ドル.24On October 1, 2000, the Company lowered its rates an
average 6.12% following a review of progress in enhancing
operational efficiency and profitability.
Higher electricity sales more than offset rate cuts, leading
to a 1.4% rise in operating revenues, to 1,448円.4 billion.
Operating expenses dropped 0.8%, to 1,236円.3 billion,
owing to Companywide efficiency initiatives. As a conse-
quence, operating income jumped 16.6%, to 212円.0 billion.
Despite recording 14円.7 billion in equity in loss of ASTEL
Kyushu Corporation, an affiliated phone company, Kyushu
Electric boosted net income 158.1%, to 59円.2 billion.
Capital Investment Policy: Kyushu Electric’s plant and
equipment plans are designed to lower the costs of electricity
and stabilize long-term supplies.
To meet future power demand, we are improving the
reliability of our facilities and are making them more effi-
cient by upgrading operating technologies. At the same
time, we are revising our design and construction standards
Consolidated Financial Review
Operating Results: In fiscal 2000, ended March 31, 2001,
the Japanese economy remained stagnant amid worsening
unemployment and sluggish personal consumption, while
exports and manufacturing growth decelerated following a
slowdown in the U.S. economy from the end of 2000.
These factors overshadowed higher production in the
mining and manufacturing industries and increased
private-sector capital investment.
Kyushu Electric’s power sales volume for the term rose
4.4%. This mainly reflected expanded commercial and
industrial power demand. Iron and steel production rose in
the first half to meet expanded demand elsewhere in Asia,
while the production of electrical equipment increased in
line with buoyant conditions in the information technology
sector. Residential (lighting) and commercial demand
advanced 2.5%, as higher-than-average summer tempera-
tures raised air-conditioning usage. As a result of these
factors, Kyushu Electric’s sales rose 3.0%, to 75.2 billion
kilowatt-hours.
Hydroelectric
Thermal
Nuclear
Internal-combustion engine
Generating facilities
Transmission, transformation and
distribution facilities
Upgrading of existing facilities
Nuclear fuel and other facilities
Generating Capacity
(Thousands of megawatts)162012840
Capital Investments
(Billions of yen)320400240160800
97 98 99 00 01 97 98 99 00 0125while diversifying equipment and supplies sourcing to
increase capital efficiency.
We are cultivating coal- and LNG-fired thermal power
sources to ensure a balance with nuclear power, our primary
energy source. The key considerations are supply stability,
economy and the environment.
We are gradually expanding our 500-kilovolt trunk line
system to link generating facilities currently under develop-
ment to better serve future demand. We are installing more
efficient transmission and distribution facilities to match
growth in long-term demand. We are also laying distribu-
tion lines underground to harmonize with the environment.
In fiscal 2000, our capital investments totaled 281円.3
billion, down 0.4% from a year earlier, owing to
cost-cutting initiatives.
The construction of new generating facilities is proceed-
ing smoothly. The 700-megawatt Unit No. 2 of the
Reihoku Thermal Power Station will come on line in July
2003. The 1,000-megawatt Unit No. 2 of the Matsuura
Thermal Power Station will open in July 2005. A 1,200-
megawatt pumped storage hydroelectric power station in
Omarugawa will start commercial operations when the first
600 megawatts come on line in July 2006, followed by a
second 600 megawatts in July 2008.
Financing: Kyushu Electric mainly funds its capital invest-
ments internally, supported by low-cost external financing
through diverse channels.
In fiscal 2000, capital investment and the redemption
of corporate bonds and short- and long-term borrowings
required 884円.0 billion, down 1.0%. Bond redemptions and
other debt repayments declined 1.3%, to 602円.7 billion.
Internal reserves fell 13.9%, to 355円.6 billion. Proceeds
from the issue of bonds and notes were off 6.7%, to 140円.0
billion, of which the net proceeds were 139円.4 billion.
Borrowings climbed 17.6%, to 389円.0 billion.
Japan’s Electric Utility Law: The Electric Utility Law of
1964 governs Japan’s electric power companies and
their activities. The law’s principal objectives are to
protect the interests of users, to promote the develop-
ment of the electric power industry, and to assure that
the production and provision of electric power is
conducted in a safe and nonpolluting manner. The law
effectively permits the country’s nine regional electric
power companies to monopolize the retail sale of
electric power in their respective areas, but it also
requires that electric power rates be set at levels that
reflect the companies’ actual operating costs and are
fair to both suppliers and consumers.
On March 21, 2000, the government implemented
the revised Electric Utility Law, deregulating the
retailing of high-voltage power.
Internal reserves
Bonds
Borrowings
Sources of Funds
(Billions of yen)8001,0006004002000
97 98 99 00 012660,229,774ドル
2,915,763
2,882,454
66,027,991
889,597
37,213,785
38,103,382
27,924,609
1,622,470
1,169,790
515,819
527,409
174,278
2,387,296
548,410
13,398
689,588
(8,684)
337,256
93,212
20,282
1,693,462
33,627,837ドル2001PROPERTY (Note 3):
Utility plant and equipment
Other plant and equipment
Construction in progress
Total
Less—
Contributions in aid of construction
Accumulated depreciation
Total
Net property
NUCLEAR FUEL
INVESTMENTS AND OTHER ASSETS:
Investment securities (Note 4)
Investments in and advances to non-consolidated subsidiaries
and associated companies (Note 4)
Deferred tax assets (Note 8)
Other assets
Total investments and other assets
CURRENT ASSETS:
Cash and cash equivalents
Short-term investments
Receivables
Allowance for doubtful accounts
Inventories, principally fuel, at average cost
Deferred tax assets (Note 8)
Prepaid expenses and other
Total current assets
TOTAL
\ 7,462,469
361,263
357,136
8,180,868
110,221
4,610,788
4,721,009
3,459,859
201,024
144,937
63,910
65,346
21,593
295,786
67,948
1,660
85,440
(1,076)
41,786
11,549
2,513
209,820
\ 4,166,4892001\ 7,362,953
352,223
298,446
8,013,622
105,558
4,379,767
4,485,325
3,528,297
183,104
55,146
71,014
86,060
25,227
237,447
49,363
1,888
90,306
(905)
39,866
10,304
2,048
192,870
\ 4,141,7182000Consolidated Balance Sheets
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
March 31, 2001 and 2000
Millions of yen
Thousands of
U.S. dollars (Note 1)
See notes to consolidated financial statements.
ASSETS2716,716,642ドル
1,380,089
1,852,147
747,466
20,696,344
2,055,884
2,360,008
726,247
247,675
639,685
297,272
6,326,771
67,046
1,915,295
250,904
3,914,157
457,336(16)6,537,676
33,627,837ドル
LONG-TERM LIABILITIES:
Long-term debt, less current maturities (Note 5)
Liability for employees’ retirement benefits (Note 6)
Reserve for reprocessing of irradiated nuclear fuel
Reserve for decommissioning nuclear power units
Total long-term liabilities
CURRENT LIABILITIES:
Current maturities of long-term debt (Note 5)
Short-term borrowings (Note 7)
Notes and accounts payable (Note 11)
Accrued income taxes
Accrued expenses
Other
Total current liabilities
RESERVE FOR FLUCTUATIONS IN WATER LEVEL
MINORITY INTERESTS
COMMITMENTS AND CONTINGENCIES (Note 13)
SHAREHOLDERS’ EQUITY (Note 9):
Common stock, 500円 par value—authorized, 1,000,000,000 shares;
issued and outstanding 474,183,951 shares in 2001 and 2000
Additional paid-in capital
Retained earnings
Unrealized gain on available-for-sale securities
Treasury stock, at cost—1,220 shares in 2001 and 1,481 shares in 2000
Total shareholders’ equity
TOTAL
\ 2,071,192
170,993
229,481
92,611
2,564,277
254,724
292,405
89,982
30,687
79,257
36,832
783,887
8,307
237,305
31,087
484,964
56,664(2)810,018
\ 4,166,489
\ 2,137,509
156,539
210,282
85,713
2,590,043
288,683
279,200
91,376
23,180
87,768
48,189
818,396537,710
237,305
31,087
457,126(2)725,516
\ 4,141,718
LIABILITIES AND SHAREHOLDERS’ EQUITY 2001
2001 2000
Millions of yen
Thousands of
U.S. dollars (Note 1)2811,380,226ドル
309,653
11,689,879
9,679,072
299,492
9,978,564
1,711,315
726,005
176,287
22,954
925,246
786,069
(428)
786,497
405,561
(102,131)
303,430
483,067
(5,335)
$ 477,7322001OPERATING REVENUES:
Electric
Other
Total operating revenues
OPERATING EXPENSES (Notes 10 and 12):
Electric
Other
Total operating expenses
OPERATING INCOME
OTHER EXPENSES (INCOME):
Interest charges (Note 3)
Equity in loss of associated companies
Provision for liability for severance payments (Note 2.i.)
Other—net
Total other expenses—net
INCOME BEFORE INCOME TAXES AND
PROVISION FOR (REVERSAL OF) RESERVE FOR
FLUCTUATIONS IN WATER LEVEL AND
MINORITY INTERESTS
PROVISION FOR (REVERSAL OF) RESERVE FOR
FLUCTUATIONS IN WATER LEVEL
INCOME BEFORE INCOME TAXES AND
MINORITY INTERESTS
INCOME TAXES (Note 8):
Current
Deferred
Total
INCOME BEFORE MINORITY INTERESTS IN NET
INCOME OF CONSOLIDATED SUBSIDIARIES
MINORITY INTERESTS IN NET INCOME OF
CONSOLIDATED SUBSIDIARIES
NET INCOME
\ 1,410,010
38,366
1,448,376
1,199,237
37,107
1,236,344
212,032
89,952
21,842
2,844
114,638
97,394(53)97,447
50,249
(12,654)
37,595
59,852
(661)
\ 59,1912001\ 1,392,148
36,411
1,428,559
1,211,227
35,564
1,246,791
181,768
107,190
12,057
22,328650142,225
39,5435339,490
40,142
(24,084)
16,058
23,432
(498)
\ 22,9342000Consolidated Statements of Income
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years ended March 31, 2001, 2000 and 1999
See notes to consolidated financial statements.
\ 1,387,855
42,309
1,430,164
1,219,999
39,057
1,259,056
171,108
111,753209111,962
59,146
(931)
60,077
33,38849733,885
26,192
(357)
\ 25,8351999PER SHARE OF COMMON STOCK (Note 2.p.):
Net income:
Basic
Diluted
Cash dividends applicable to the year
\ 124.83
123.65
60.00
48円.37
48.21
50.00
54円.48
54.21
50.00
1ドル.011.000.48
Millions of yen
Thousands of
U.S. dollars (Note 1)
Yen U.S. dollars29BALANCE AT APRIL 1, 1998
Adjustment of retained earnings for change in
scope of application of equity method
Net income
Cash dividends, 50円 per share
Bonuses to directors and corporate auditors
Net decrease in treasury stock
BALANCE AT MARCH 31, 1999
Adjustment of retained earnings for the
adoption of deferred tax accounting method
Adjustment of retained earnings for a newly
consolidated subsidiary
Adjustment of retained earnings for change in
scope of application of equity method
Net income
Cash dividends, 50円 per share
Bonuses to directors and corporate auditors
Net increase in treasury stock
BALANCE AT MARCH 31, 2000
Adjustment of retained earnings for exclusion
of an equity method accounted company
Net income
Cash dividends, 55円 per share
Bonuses to directors and corporate auditors
Net increase in treasury stock
Unrealized gain on available-for-sale securities
BALANCE AT MARCH 31, 2001
474,184
474,184
474,184
474,184
Consolidated Statements of Shareholders’ Equity
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years ended March 31, 2001, 2000 and 1999
Millions of yen
Thousands
See notes to consolidated financial statements.
Outstanding
number of
shares of
common stock
237,305円
237,305
237,305
237,305円
Common
stock
31,087円
31,087
31,087
31,087円
Additional
paid-in
capital
391,600円
(2,244)
25,835
(23,709)
(284)
391,198
62,1887044,080
22,934
(23,709)
(269)
457,126
(4,990)
59,191
(26,080)
(283)
484,964円
Retained
earnings
BALANCE AT MARCH 31, 2000
Adjustment of retained earnings for exclusion
of an equity method accounted company
Net income
Cash dividends, 0ドル.44 per share
Bonuses to directors and corporate auditors
Net increase in treasury stock
Unrealized gain on available-for-sale securities
BALANCE AT MARCH 31, 2001
$ 1,915,295
1,915,295ドル
$ 250,904
250,904ドル
$ 3,689,476
(40,274)
477,732
(210,493)
(2,284)
3,914,157ドル
$ (16)0$(16)
\ (3)1(2)0(2)0\ (2)
Treasury
stock
56,664
56,664円
Unrealized
gain on
available-for-
sale securities
457,336
457,336ドル
Thousands of U.S. dollars (Note 1)
Common
stock
Additional
paid-in
capital
Retained
earnings
Treasury
stock
Unrealized
gain on
available-for-
sale securities30\ 39,490
(31,627)
319,394
44,193
29,099
6,304
11,070
10,2675312,057
(3,103)
(4,138)
3,232
(2,197)
(4,544)
390,060
429,550
(288,945)
(10,413)
8,353
4,431
(286,574)
149,339
(186,360)
67,688
(157,033)
(13,567)
(23,698)(18)(163,649)
(20,673)4669,990
\ 49,3632000CASH FLOWS FROM OPERATING ACTIVITIES:
Income before income taxes and minority interests
Adjustments for:
Income taxes—paid
Depreciation and amortization
Provision for liability for employees’ retirement benefits
Provision for reserve for reprocessing of irradiated nuclear fuel
Provision for reserve for decommissioning of nuclear power units
Loss on disposal of plant and equipment
Nuclear fuel transferred to reprocessing costs
Provision for (reversal of) reserve for fluctuations in water level
Equity in loss of associated companies
Cash contribution for liquidation of an associated company
Changes in assets and liabilities, net of effects from a newly
consolidated subsidiary:
Decrease (increase) in trade receivables
Increase in inventories
Increase in trade payable
Decrease in interest payable
Other—net
Total adjustments
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures including nuclear fuel
Payments for investments and advances
Proceeds from sales of investment securities and collections of advances
Other—net
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of bonds
Repayments of bonds
Proceeds from long-term bank loans
Repayments of long-term bank loans
Net increase (decrease) in short-term borrowings
Cash dividends paid
Other—net
Net cash used in financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS OF A NEWLY
CONSOLIDATED SUBSIDIARY AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
\ 97,447
(42,742)
302,559
14,454
19,199
6,898
13,030826(53)
21,842
(14,099)
4,584
(1,920)
6,139
(2,228)
(12,605)
315,884
413,331
(283,293)
(11,211)
6,057
8,967
(279,480)
139,419
(206,767)
87,945
(122,985)
13,205
(26,065)(18)(115,266)
18,585
49,363
\ 67,9482001Consolidated Statements of Cash Flows
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years ended March 31, 2001 and 2000
See notes to consolidated financial statements.
$ 786,497
(344,972)
2,441,961
116,659
154,956
55,674
105,165
6,667
(428)
176,287
(113,794)
36,998
(15,496)
49,548
(17,982)
(101,735)
2,549,508
3,336,005
(2,286,465)
(90,484)
48,886
72,373
(2,255,690)
1,125,254
(1,668,822)
709,806
(992,615)
106,578
(210,371)
(145)
(930,315)
150,000
398,410
$ 548,4102001Millions of yen
Thousands of
U.S. dollars (Note 1)31Notes to Consolidated Financial Statements
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years ended March 31, 2001, 2000 and 1999
1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements have been
prepared in accordance with the provisions set forth in the Japanese
Securities and Exchange Law and the Japanese Electric Utility Law
and their related accounting regulations. Kyushu Electric Power
Company, Incorporated (the "Company") and its consolidated
subsidiaries (together the "Companies") maintain their accounts
and records in accordance with the provisions set forth in the
Commercial Code of Japan (the "Code") and in conformity with
accounting principles and practices generally accepted in Japan,
which are different in certain respects as to application and disclo-
sure requirements of International Accounting Standards. The
consolidated financial statements are not intended to present the
financial position, results of operations and cash flows in accordance
with accounting principles and practices generally accepted in
countries and jurisdictions other than Japan.
Effective April 1, 1999, a consolidated statement of cash flows is
required to be prepared under Japanese accounting standards. The
statements of cash flows for the years ended March 31, 2001 and
2000 are presented herein. Such statement for the year ended
March 31, 1999 is not presented, as Japanese accounting standards
do not require retroactive preparation for prior years’ financial
statements.
In preparing these consolidated financial statements, certain
reclassifications and rearrangements have been made to the finan-
cial statements issued domestically in order to present them in a
form that is more familiar to readers outside Japan.
The United States dollar amounts included herein are provided
solely for the convenience of readers and are stated at the rate of
123円.90=U.S.1,ドル the approximate exchange rate prevailing on
March 31, 2001. The translations should not be construed as
representations that the Japanese yen amounts could be converted
into United States dollars at that or any other rate.
Certain reclassifications have been made to the consolidated financial
statements for 2000 to conform to classifications used in 2001.
2. Summary of Significant Accounting Policies
a. Consolidation and Application of the Equity Method—The consolidated
financial statements as of March 31, 2001 include the accounts of
the Company and its eight (eight for 2000 and seven for 1999)
significant subsidiaries. All significant intercompany transactions and
balances have been eliminated in consolidation. Investment in five
(six for 2000 and four for 1999) significant associated companies
are accounted for by the equity method.
Effective April 1, 1999, the Companies changed its consolidation
scope of subsidiaries and associated companies from the application
of the ownership concept to the control or influence concept.
Under the control or influence concept, those companies in which
the Parent, directly or indirectly, is able to exercise control over
operations are fully consolidated, and those companies over which
the Companies have the ability to exercise significant influence are
accounted for by the equity method.
The excess of the cost of the Company’s investments in consoli-
dated subsidiaries and associated companies accounted for by the
equity method over its equity in the net assets at the respective
dates of acquisition until March 31, 1999, is being amortized over
a period of 5 years.
Effective April 1, 1999, the excess of the cost of an acquisition
over the fair value of the net assets of the acquired subsidiary at the
date of acquisition is being amortized over a period of 5 years.
Consolidation of the remaining subsidiaries and the application
of the equity method to the remaining associated companies would
not have a material effect on the accompanying consolidated
financial statements.
b. Property and Depreciation—Property is stated at cost. Prior to April
1, 2000, the cost of property includes certain interest costs on the
specific borrowed funds incurred during the construction period of
the related assets. Effective April 1, 2000, interest expense has not
been capitalized in accordance with a recent revision to the
accounting rules for electric utility companies. The effect of this
change was not incurred. Contributions in aid of construction that
include contributions made by customers are deducted from the
cost of the related assets.
The Company and most of the consolidated subsidiaries com-
pute depreciation using the declining-balance method based on the
estimated useful lives of the assets.
c. Amortization of Nuclear Fuel—Amortization of nuclear fuel is com-
puted based on the proportion of current heat production to the
estimated total heat production over the estimated useful life of the
nuclear fuel.
d. Investment Securities—In prior years, investment securities were
stated at cost determined by the average method.
Effective April 1, 2000, the Companies adopted a new accounting
standard for financial instruments, including investment securities. It
requires all applicable securities to be classified and accounted for,
depending on management’s intent, as follows:32i) held-to-maturity securities are stated at cost with discounts or
premiums amortized throughout the holding periods; ii) available-
for-sale securities, which are not classified as the aforementioned
securities and investment securities in non-consolidated subsidiaries
and associated companies, are stated at market value; and securities
without market value are stated at cost if they are not significantly
impaired. The Companies record unrealized gain or loss on
available-for-sale securities, net of deferred taxes, in shareholders’
equity presented as "Unrealized gain on available-for-sale
securities." The effect of the application of the new standard was
to increase investment securities by 88,880円 million (717,353ドル
thousand) and to decrease long-term deferred tax assets by 32,122円
million (259,258ドル thousand). In addition, unrealized gain
on available-for-sale securities was newly accounted for in
shareholders’ equity in the balance sheets as of March 31, 2001.
e. Investments in Non-Consolidated Subsidiaries and Associated
Companies—Investments in non-consolidated subsidiaries and
associated companies, except five (six for 2000 and four for 1999)
associated companies accounted for by the equity method, are
stated at cost; however, they are written down to appropriate
values if the investments have been significantly impaired in value
of a permanent nature.
f. Cash Equivalents—Cash equivalents are certain short-term invest-
ments that are readily convertible into cash and that are exposed to
insignificant risk of changes in value. Cash equivalents include time
deposits and mutual funds investing in bonds that represent short-
term investments, all of which mature or become due within three
months of the date of acquisition.
g. Foreign Currency Transactions—Prior to April 1, 2000, current
receivables and payables denominated in foreign currencies were
translated into Japanese yen at the rates in effect at each balance
sheet date, whereas noncurrent receivables and payables were
translated at the rates in effect when acquired or incurred.
Effective April 1, 2000, the Companies adopted a revised
accounting standard for foreign currency transactions. In accordance
with the revised standard, receivables and payables denominated
in foreign currencies are translated into Japanese yen at the rates in
effect at each balance sheet date. The effect of this change was
immaterial.
h. Derivatives and Hedging Activities—The Company enters into
derivative financial instruments ("derivatives"), including foreign
exchange forward contracts and currency swaps, to hedge market
risk from the fluctuations in foreign exchange rates associated with
liabilities denominated in foreign currencies.
Also, Oita Liquefied Natural Gas Company Inc. ("Oita LNG"), a
consolidated subsidiary of the Company, enters into interest swaps to
hedge market risk from the changes in interest rates associated with
floating rate liabilities. The Company and Oita LNG do not enter
into derivatives for trading or speculative purposes.
Effective April 1, 2000, the Companies adopted a new account-
ing standard for derivative financial instruments and a revised
accounting standard for foreign currency transactions. These
standards require that: a) all derivatives be recognized as either assets
or liabilities and measured at market value, and gains or losses on the
derivatives be recognized currently in the income statement and
b) for derivatives for hedging purposes, if derivatives qualify for
hedge accounting because of high correlation and high hedge
effectiveness between the hedging instruments and the hedged items,
gains or losses on the derivatives are deferred until maturities of the
hedged transactions.
The long-term debt denominated in foreign currencies for
which the foreign exchange forward contracts are used to hedge
the foreign currency fluctuations are translated at the contracted
rate, since such treatment is also allowed to be incorporated under
the standards if the forward contracts qualify for hedge accounting.
The interest rate swaps which qualify for hedge accounting are
not remeasured at market value but the differential paid or received
under the swap agreements are recognized in interest expense,
which treatment is also allowed under the standards.
The adoption of the new accounting standard for derivative
financial instruments and the revised accounting standard for
foreign currency transactions did not have a material effect on the
Companies’ consolidated financial statements.
i. Severance Payments and Pension Plans—The Companies have
unfunded retirement plans for all of their employees and the
Company also has a contributory funded defined benefit pension
plan covering substantially all of its employees.
In prior years, with respect to the unfunded plans, the annual
provision for employees’ severance payments were calculated to
state the present value of the amount that would be required if all
employees voluntarily terminated their services with the Company
at each balance sheet date. For the funded pension plan, the
amounts contributed to the fund except for prior service costs
were charged to income when paid. Prior service costs were
accrued when incurred.
Effective April 1, 1998, the Company changed its accounting
policy for prior service costs from the method of charging at the
time of contribution to the method of charging to income when
incurred. The effect of this change was to decrease income before
income taxes and minority interests for the year ended March 31,
1999 by 9,528円 million.
In the fiscal year ended March 31, 2000, the Company amended
the rate of present value for calculating the annual provisions for
employees’ severance payments from 40% to 55% which is based on
the average remaining service period of employees and the discount
rate considering the recent condition of lower interest rates. The
effect of this change was to decrease income before income taxes
and minority interests for the year ended March 31, 2000 by
22,328円 million.33Effective April 1, 2000, the Companies adopted a new account-
ing standard for employees’ retirement benefits. Under the new
standard, the amount of the liability for employees’ retirement
benefits is determined based on the projected benefit obligations
and plan assets of the pension fund at the balance sheet date. The
full amount of the transitional obligation of 32,394円 million
(261,453ドル thousand), determined as of the beginning of year, was
amortized on a lump-sum basis in the current fiscal year ended
March 31, 2001.
The net effect of the adoption of the new standard on the
statement of income was to increase operating expenses by
30,592円 million (246,909ドル thousand) and to decrease income
before income taxes and minority interests by 34,653円 million
(279,685ドル thousand) including a cumulative effect of 32,394円
million (261,453ドル thousand) for the year ended March 31, 2001.
Retirement benefits for directors and corporate auditors are
charged to income when authorized by the shareholders.
j. Reserve for Reprocessing of Irradiated Nuclear Fuel—The annual
provision for the costs of reprocessing irradiated nuclear fuel is
calculated to state the related reserve at 60% of the amount that
would be required to reprocess all of the irradiated nuclear fuel in
accordance with the regulatory authority.
k. Reserve for Decommissioning of Nuclear Power Units—Provision is
made for future disposition costs of nuclear power units based on a
proportion of the current generation of electric power to the
estimated total generation of electric power of each unit.
l. Income Taxes—Prior to April 1, 1999, income taxes were provided
at the amount currently payable. Deferred income taxes arising
from temporary differences in recognizing certain assets and
liabilities between financial and tax reporting purposes were not
provided, except for those applicable to unrealized profits arising
from the elimination of intercompany transactions in consolidation.
Effective April 1, 1999, the Companies adopted an accounting
method for interperiod allocation of income taxes based on the
asset and liability method. The cumulative effect of the application
of interperiod tax allocation in prior years in the amount of
62,188円 million is included as an adjustment to retained earnings as
of April 1, 1999. Such cumulative effect is calculated by applying the
income tax rate stipulated by enacted tax laws as of April 1, 1999.
Deferred income taxes are recorded to reflect the impact of
temporary differences between assets and liabilities recognized for
financial reporting purposes and such amounts recognized for tax
purposes. These deferred taxes are measured by applying currently
enacted tax laws to the temporary differences.
m. Appropriations of Retained Earnings—Appropriations of retained
earnings at each year end are reflected in the financial statements
for the following year upon shareholders’ approval.
n. Special Reserves—The Japanese Special Taxation Measures Law
permits companies in Japan to take as tax deductions certain
reserves, if recorded in the books of account, that are not required
for financial reporting purposes. These reserves must be reversed to
taxable income in future periods in accordance with the law.
The Code requires that the special reserves, except for the
reserve for fluctuations in water level, be recorded as a component
of shareholders’ equity (see Note 9).
A reserve for fluctuations in water level is recorded when the
volume of water for generating hydroelectric power is abundant
and available for future power generation, and reversed in years
when there is an insufficient volume of water, in accordance with the
Japanese Electric Utility Law and related accounting regulations.
Under the law and regulations, this reserve must be shown as
a liability.
o. Stock and Bond Issuance Costs and Bond Discount Charges—Stock and
bond issuance costs are charged to income when paid or incurred.
Prior to April 1, 2000, bond discount charges were charged to
income when incurred. Effective April 1, 2000, bond discount
charges are amortized over the term of the related bonds in accor-
dance with a new accounting standard for financial instruments.
The effect of this change was immaterial.
p. Net Income and Cash Dividends per Share—Basic earnings per share
is computed based on the weighted average number of shares of
common stock outstanding during the year after giving effect to
retroactive adjustment for subsequent stock splits (if any).
Diluted earnings per share is computed assuming full conversion
of the outstanding convertible debt at the beginning of the year or
on the date of the subsequent issuance with an applicable adjustment
for related interest expense, net of income tax.
Cash dividends per share represent actual amounts applicable to
earnings of the respective year.
q. Research and Development Costs—Research and development costs
are charged to income as incurred.
r. Leases—Leases that transfer ownership of the leased equipment to
the lessee are accounted for as finance leases. All other leases are
accounted for as operating leases.344. Investment Securities
The carrying amounts and aggregate fair values of investment securities at March 31, 2001 were as follows:
3. Property
The major classes of property as of March 31, 2001 and 2000 were as follows:
$ 4,290,888
11,969,661
11,872,437
965,633
29,098,619
11,270,759
6,846,328
10,201,937
2,915,763
2,765,464
2,882,454
46,667
66,027,991
889,597
37,213,785
$ 27,924,6092001Original costs:
Electric power production facilities:
Hydroelectric power
Thermal power
Nuclear power
Internal-combustion engine power
Total
Transmission facilities
Transformation facilities
Distribution facilities
Other plant and equipment
General facilities
Construction in progress
Property leased to others
Total
Less contributions in aid of construction
Less accumulated depreciation
Carrying value
\ 531,641
1,483,041
1,470,995
119,642
3,605,319
1,396,447
848,260
1,264,020
361,263
342,641
357,136
5,782
8,180,868
110,221
4,610,788
\ 3,459,8592001\ 521,525
1,479,034
1,480,567
115,477
3,596,603
1,356,059
833,863
1,236,606
352,223
334,040
298,446
5,782
8,013,622
105,558
4,379,767
\ 3,528,2972000Millions of yen
Thousands of
U.S. dollars
Interest costs capitalized for the years ended March 31, 2000 and 1999 were 30円 million and 281円 million, respectively.
Securities classified as:
Available-for-sale:
Equity securities
Debt securities
Other securities
Held-to-maturity
133,438ドル73347
2,502
721,558ドル564,140ドル65850,856ドル73282
2,558
Thousands of U.S. dollars
Cost Unrealized gains Unrealized losses Fair value
16,533円94331089,401円7513円8105,421円935317Millions of yen
Cost Unrealized gains Unrealized losses Fair value
Available-for-sale securities and held-to-maturity securities
whose fair values are not readily determinable as of March 31,
2001 were as follows:
Available-for-sale:
Equity securities
Other securities
Held-to-maturity
Total
28,084円
7,657
3,421
39,162円
226,666ドル
61,800
27,611
316,077ドル
Carrying amount
Reference
Information regarding the carrying value and their market value of
quoted equity and debt securities included in investment securities
and investments in associated companies at March 31, 2000 were as
follows:
The above amounts include marketable equity security of an
associated company carried at 26,080円 million with corresponding
quoted market value of 5,832円 million.
The investment in an associated company, carried at 19,609円
million (158,265ドル thousand) by the equity method, at March 31,
2001, had a quoted market value of 6,605円 million (53,309ドル
thousand) at March 31, 2001.
Carrying value
Aggregate market value
Net unrealized gains
041,615円
104,008
062,393円
Millions of yen
Thousands of
U.S. dollars
Millions of yen
March 31, 2001356. Severance Payments and Pension Plans
Employees terminating their employment with the Companies,
either voluntarily or upon reaching mandatory retirement age, are
entitled, under most circumstances, to severance payments based on
their rate of pay at the time of termination, length of service and
certain other factors. As for the Company, if the termination is
made voluntarily at one of a number of specified ages, the employee
is entitled to certain additional payments.
Additionally, the Company and most of the consolidated sub-
sidiaries have contributory funded defined benefit pension plans
covering substantially all of their employees. In general, eligible
employees retiring at the mandatory retirement age receive pension
payments for the remainder of their lives. As for the Company,
eligible employees retiring after at least 20 years of service but
before the mandatory retirement age, receive a lump-sum payment
upon retirement and annuities for a period of 10 years.20022003200420052006Thereafter
Total
Thousands of
U.S. dollars
Millions of yen
\ 254,724
219,517
260,207
165,884
232,108
1,193,476
\ 2,325,916
02,055,884ドル
1,771,727
2,100,137
1,338,854
1,873,349
9,632,575
18,772,526ドル
Year ending
March 31
08,167,756ドル
147,869
888,741
485,730
278,854
188,943
3,830,282
348,386
4,320,097
115,868
18,772,526
2,055,884
16,716,642ドル2001Domestic bonds, 0.4% to 6.9%, due serially to 2020
Domestic convertible bonds, 2.0%, due 2002
U.S. dollar bonds and notes, 6.375% to 7.25%, due 2002 to 2008
Swiss franc bonds, 4.0% to 7.5%, due 2001 to 2007
Deutsche mark bonds, 4.75%, due 2003
Canadian dollar bonds, 10.25%, due 2002
Loans from The Development Bank of Japan, 1.95% to 7.4%, due serially to 2023
Loans, principally from banks and insurance companies, 0.25% to 8.9%, due serially to 2021
Collateralized
Unsecured
Other
Total
Less current maturities
Long-term debt, less current maturities
\ 1,011,985
18,321
110,115
60,182
34,550
23,410
474,572
43,165
535,260
14,356
2,325,916
254,724
\ 2,071,1922001\ 1,066,004
18,326
110,115
72,931
34,550
23,410
523,402
50,610
514,023
12,821
2,426,192
288,683
\ 2,137,5092000Long-term debt consisted of the following at March 31, 2001 and 2000:
At March 31, 2001, the conversion price of the 2.0% domestic
convertible bonds was 2,860円 (23ドル.08) per share, which is subject
to adjustment for subsequent stock splits and certain other circum-
stances. At March 31, 2001, the outstanding convertible bonds
were convertible into 6,407,692 shares of common stock of the
Company.
The outstanding domestic bonds and convertible bonds and Swiss
franc bonds may be redeemed prior to maturity at the option of the
Company, in whole or in part at prices 100% of the principal
amount for the domestic bonds and in whole at prices ranging from
100.25% to 101.25% of the principal amount for Swiss franc bonds.
All of the Company’s assets are subject to certain statutory
preferential rights established to secure bonds, notes, loans received
from The Development Bank of Japan and bonds transferred to
banks under debt assumption agreements (see Note 13).
Certain assets of the consolidated subsidiaries, amounting to
83,753円 million (675,973ドル thousand), are pledged as collateral for
a portion of their long-term debt.
Certain long-term loan agreements include, among other things,
provisions that allow the lenders the right to approve, if desired, any
appropriations of retained earnings including dividends. However, to
date, no lender has exercised this right.
The annual maturities of long-term debt outstanding at March
31, 2001 were as follows:
5. Long-term Debt
Millions of yen
Thousands of
U.S. dollars
Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial loss
Net liability
Thousands of
U.S. dollars
Millions of yen
\(470,795
(239,171)
(60,631)
\(170,993
$(3,799,798
(1,930,355)
(489,354)
$(1,380,089
As discussed Note 2. i., effective April 1, 2000, the Companies
adopted a new accounting standard for employees’ retirement benefits.
The liability for employees’ retirement benefits at March 31,
2001 consisted of the followings:36A reconciliation between the normal effective statutory tax
rate for the years ended March 31, 2001 and 2000 and the actual
effective tax rate reflected in the accompanying consolidated
statements of income is as follows:
The normal effective tax rate reflected in the accompanying
consolidated statement of income for the year ended March 31,
1999 differs from the actual effective tax rate, primarily due to the
effect of permanently non-deductible expenses and temporary
differences in the recognition of asset and liability items for tax and
financial reporting purposes.
7. Short-term Borrowings
Short-term borrowings are generally represented by 365-day notes, bearing interest at the rates ranging from 0.14857% to 1.5% and from
0.30286% to 1.375% at March 31, 2001 and 2000, respectively.
8. Income Taxes
The Companies are subject to several income taxes. The aggregate normal statutory tax rates for the Company approximated 36.1% for 2001
and 2000, and 41.5% for 1999.
The tax effects of significant temporary differences which resulted in deferred tax assets and liabilities at March 31, 2001 and 2000 are as follows:
Deferred tax assets:
Pension and severance costs
Deferred charges
Reserve for reprocessing of irradiated nuclear fuel
Reserve for decommissioning of nuclear power units
Unrealized profits arising from the elimination of intercompany transactions in consolidation
Other
Less valuation allowance
Deferred tax assets
Deferred tax liabilities:
Unrealized gain on available-for-sale securities
Reserve for depreciation of nuclear power production facilities under construction
Other
Deferred tax liabilities
Net deferred tax assets
Service cost
Interest cost
Expected return on plan assets
Amortization of transitional obligation
Net periodic benefit costs
Thousands of
U.S. dollars
Millions of yen
13,723円
12,714
(6,119)
32,394
52,712円
110,759ドル
102,615
(49,387)
261,453
425,440ドル
The components of net periodic benefit costs for the year ended
March 31, 2001 are as follows:
Assumptions for actuarial computations are set forth as follows:
Discount rate 2.5%
Expected rate of return on plan assets mainly 2.5%
Recognition period of actuarial gain/loss mainly 5 years
Amortization period of transitional obligation 1 year
Total charges to income under the plans were 87,935円 million,
70,184円 million for the years ended March 31, 2000 and 1999,
respectively.
369,443ドル
116,408
84,722
82,195
73,697
215,020
(1,162)
940,323ドル
259,258ドル
51,074
9,370
319,702ドル
620,621ドル2001\ 045,774
14,423
10,497
10,184
9,131
26,641
(144)
\ 116,506
\ 032,122
6,328
1,161
\ 039,611
\ 076,8952001\ 034,649
20,417
10,497
10,025
9,336
23,588
\ 108,512
10,919
1,229
\ 012,148
\ 096,3642000Millions of yen
Thousands of
U.S. dollars
Normal effective statutory tax rate
Equity in loss of associated companies
Expenses not deductible for
income tax purposes
Other—net
Actual effective tax rate20002001
36.1%1.50.70.338.6%
36.1%2.32.00.340.7%37155,997ドル218156,215ドル2001Reserve for:
Depreciation of nuclear power production facilities under construction
Losses on overseas investments
Total
\ 19,32827\ 19,3552001\ 27,45525\ 27,48020009. Shareholders’ Equity
As described in Note 2. n., certain special reserves were included in retained earnings. Such reserves at March 31, 2001 and 2000 were
as follows:
The Code requires at least 50% of the issue price of new shares,
with a minimum of the par value, to be designated as stated capital
as determined by resolution of the Board of Directors. Proceeds in
excess of amounts designated as stated capital are credited to
additional paid-in capital.
The Code also requires the Company to appropriate from
retained earnings to a legal reserve equal to at least 10% of all cash
payments made as an appropriation of retained earnings until the
reserve equals 25% of the stated capital. The Company’s reserve
amount, which is included in retained earnings, totals 59,326円
million (478,822ドル thousand) and 56,820円 million as of March 31,
2001 and 2000, respectively, and is not available for dividends but
may be used to reduce a deficit by resolution of the shareholders.
The Company may transfer portions of additional paid-in capital
and legal reserve to stated capital by resolution of the Board of
Directors. The Company may also transfer portions of retained
earnings available for dividends to stated capital by resolution of
the shareholders.
Under the Code, the Company may issue new common shares
to existing shareholders without consideration as a stock split
pursuant to resolution of the Board of Directors. The Company
may make such a stock split to the extent that the aggregate par
value of the shares outstanding after the issuance does not exceed
the stated capital. However, the amount calculated by dividing the
total amount of shareholders’ equity by the number of outstanding
shares after the issuance may not be less than 500円.
Under the Articles of Incorporation of the Company, the
Company may repurchase its outstanding shares up to 47 million
shares to cancel them by resolution of the Board of Directors.
Dividends are approved by the shareholders’ meeting to be held
subsequent to the fiscal year to which the dividends are applicable.
In addition, a semi-annual interim dividend may be paid upon
resolution of the Board of Directors, subject to limitations imposed
by the Code.
The following appropriations of retained earnings as of March
31, 2001 were approved at the shareholders’ meeting of the
Company held on June 28, 2001:
Year-end cash dividends,
30円.00 (0ドル.24) per share
Bonuses to directors and
corporate auditors
\ 14,225140114,810ドル
1,130
Millions of yen
Thousands of
U.S. dollars
Thousands of
U.S. dollars
Millions of yen
10. Research and Development Costs
Research and development costs charged to income were 12,998円 million (104,907ドル thousand) and 12,648円 million for the years ended March
31, 2001 and 2000, respectively.
11. Related Party Transactions
Significant transactions of the Company with associated companies for the years ended March 31, 2001 and 2000 were as follows:
KYUDENKO CORPORATION
Transactions:
Order for construction works of distribution facilities
Balances at year ended:
Payables for construction works
ASTEL Kyushu Corporation
Transactions:
Cash contribution for liquidation
404,956ドル
56,352
113,794ドル2001\ 50,174
6,982
\ 14,0992001\ 52,834
6,9382000Millions of yen
Thousands of
U.S. dollars3813. Commitments and Contingencies
At March 31, 2001, the Companies had a number of fuel purchase commitments, most of which specify quantities and dates for fuel deliveries.
However, purchase prices are contingent upon fluctuations in market prices.
Contingent liabilities as of March 31, 2001 were as follows:
Under the debt assumption agreements, the Company was contingently liable for the redemption of the domestic bonds transferred to
banks.
14. Segment Information
Information by business segment is not disclosed because the
electric service segment, which is the Companies’ main business,
represented more than 90% of their operations.
Geographic segment information is not shown due to the
Company having no overseas operations nor foreign consolidated
subsidiaries.
Information for overseas sales is not disclosed due to overseas
sales being immaterial compared with consolidated net sales.
Co-guarantees of loans, mainly in connection with procurement of fuel
Guarantees of employees’ housing loans
Guarantees under debt assumption agreements
Other
111,802円
52,091
194,417
4,102
0,902,357ドル
420,428
1,569,144
33,107
Millions of yen
Thousands of
U.S. dollars
Millions of yen
Acquisition cost
Accumulated depreciation
Net leased equipment
March 31, 2001
334,455ドル
150,266
184,189ドル
113,164ドル
60,549
052,615ドル
221,291ドル
89,717
131,574ドル
Acquisition cost
Accumulated depreciation
Net leased equipment200106,365円
16,456
22,821円
Due within one year
Due after one year
Total
Millions of yen
12. Leases
The Companies lease certain computer and other equipment.
Total lease payments under finance lease arrangements were 5,970円
million (48,184ドル thousand), 5,444円 million and 5,163円 million for
the years ended March 31, 2001, 2000 and 1999, respectively.
Pro forma information of leased equipment such as acquisition
cost, accumulated depreciation and lease obligations, all of which
included imputed interest expense, under finance leases that do not
transfer ownership of the leased equipment to the lessee on an "as
if capitalized" basis at March 31, 2001 and 2000 were as follows:
Obligations under finance leases which included the imputed
interest expense at March 31, 2001 and 2000 were as follows:
$ 51,372
132,817
184,189ドル2000\ 5,137
13,298
18,435円2001Thousands of
U.S. dollars
General facilities Other
Thousands of U.S. dollars
Total
March 31, 2001
41,439円
18,618
22,821円
14,021円
7,502
06,519円
27,418円
11,116
16,302円
General facilities Other Total
Millions of yen
Acquisition cost
Accumulated depreciation
Net leased equipment
March 31, 2000
31,858円
13,423
18,435円
11,241円
4,880
06,361円
20,617円
8,543
12,074円
General facilities Other Total39To the Board of Directors of
Kyushu Electric Power Company, Incorporated:
We have examined the consolidated balance sheets of Kyushu Electric Power Company, Incorporated and consolidated subsidiaries as of
March 31, 2001 and 2000, and the related consolidated statements of income and shareholders’ equity for each of the three years in the period
ended March 31, 2001, and the consolidated statements of cash flows for the years ended March 31, 2001 and 2000, all expressed in Japanese
yen. Our examinations 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 consolidated financial statements referred to above present fairly the financial position of Kyushu Electric Power
Company, Incorporated and consolidated subsidiaries as of March 31, 2001 and 2000, and the results of their operations for each of the three
years in the period ended March 31, 2001 and the results of their cash flows for the years ended March 31, 2001 and 2000 in conformity with
accounting principles and practices generally accepted in Japan consistently applied during the period subsequent to the change, with which
we concur, made as of April 1, 1998, in the accounting for pension plan as discussed in Note 2.
As described in Note 2, effective April 1, 2000, the consolidated financial statements have been prepared in accordance with new accounting
standards for employees’ retirement benefits and financial instruments and a revised accouting standard for foreign currency transactions.
Our examinations also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation
has been made in conformity with the basis stated in Note 1. Such U.S. dollar amounts are presented solely for the convenience of readers
outside Japan.
June 28, 2001
INDEPENDENT AUDITORS’ REPORT
Tohmatsu & Co.
Fukuoka Sanwa Building
10-24, Tenjin 1-chome,
Chuo-ku,Fukuoka 810-0001, Japan
Tel: +81-92-751-0931
Fax: +81-92-714-5585
www.tohmatsu.co.jp4061,017,030ドル
2,915,109
63,932,139
881,138
36,094,794
36,975,932
26,956,207
1,622,470
1,147,635
671,816
419,685
150,904
2,390,040
437,756
602,865
(8,257)
234,544
82,881
16,094
1,365,883
32,334,600ドル2001PROPERTY (Note 3):
Plant and equipment
Construction in progress
Total
Less—
Contributions in aid of construction
Accumulated depreciation
Total
Net property
NUCLEAR FUEL
INVESTMENTS AND OTHER ASSETS:
Investment securities
Investments in and advances to subsidiaries and
associated companies
Deferred tax assets (Note 7)
Other assets
Total investments and other assets
CURRENT ASSETS:
Cash and cash equivalents
Short-term investments
Receivables
Allowance for doubtful accounts
Fuel and supplies, at average cost
Deferred tax assets (Note 7)
Prepaid expenses and other
Total current assets
TOTAL
\ 7,560,010
361,182
7,921,192
109,173
4,472,145
4,581,318
3,339,874
201,024
142,192
83,238
51,999
18,697
296,126
54,238
74,695
(1,023)
29,060
10,269
1,994
169,233
\ 4,006,2572001\ 7,451,764
300,970
7,752,734
105,015
4,251,257
4,356,272
3,396,462
183,104
53,258
80,607
72,381
20,707
226,953
41,10539177,023
(738)
24,446
9,105
1,393
152,725
\ 3,959,2442000Non-Consolidated Balance Sheets
Kyushu Electric Power Company, Incorporated
March 31, 2001 and 2000
See notes to non-consolidated financial statements.
Millions of yen
Thousands of
U.S. dollars (Note 1)
ASSETS4116,271,477ドル
1,279,636
1,852,147
747,466
20,150,726
1,924,003
2,263,559
597,538
230,654
702,131
286,247
6,004,132
1,915,295
250,904
478,822
3,079,661
455,060
6,179,742
32,334,600ドル2001LONG-TERM LIABILITIES:
Long-term debt, less current maturities (Note 4)
Liability for employees’ retirement benefits (Note 5)
Reserve for reprocessing of irradiated nuclear fuel
Reserve for decommissioning of nuclear power units
Total long-term liabilities
CURRENT LIABILITIES:
Current maturities of long-term debt (Note 4)
Short-term borrowings (Note 6)
Accounts payable
Accrued income taxes
Accrued expenses
Other
Total current liabilities
RESERVE FOR FLUCTUATIONS IN WATER LEVEL
COMMITMENTS AND CONTINGENCIES (Note 11)
SHAREHOLDERS’ EQUITY (Note 8):
Common stock, 500円 par value—authorized, 1,000,000,000 shares;
issued and outstanding 474,183,951 shares in 2001 and 2000
Additional paid-in capital
Legal reserve
Retained earnings
Unrealized gain on available-for-sale securities
Total shareholders’ equity
TOTAL
\ 2,016,036
158,547
229,481
92,611
2,496,675
238,384
280,455
74,035
28,578
86,994
35,466
743,912
237,305
31,087
59,326
381,570
56,382
765,670
\ 4,006,2572001\ 2,078,459
144,242
210,282
85,713
2,518,696
266,017
264,650
80,977
20,470
94,062
38,951
765,12753237,305
31,087
56,820
350,156
675,368
\ 3,959,2442000LIABILITIES AND SHAREHOLDERS’ EQUITY
Millions of yen
Thousands of
U.S. dollars (Note 1)4211,392,252ドル
1,645,658
1,179,152
759,467
2,123,027
1,400,492
181,679
55,674
92,098
173,245
762,292
520,234
291,913
564,609
9,749,540
1,642,712
708,023
21,840
144,867
9,128
883,858
758,854
(428)
759,282
375,868
(101,978)
273,890
$ 485,3922001OPERATING REVENUES
OPERATING EXPENSES (Notes 9 and 10):
PersonnelFuelPurchased power
Depreciation
Maintenance
Reprocessing costs of irradiated nuclear fuel
Decommissioning costs of nuclear power units
Disposal cost of high-level radioactive waste (Note 2.k.)
Disposition of property
Taxes other than income taxes
Subcontract feeRentOther
Total operating expenses
OPERATING INCOME
OTHER EXPENSES (INCOME):
Interest charges
Provision for liability for severance payments (Note 2.h.)
Loss on devaluation of investment securities and
investments in associated companies
Loss on liquidation of an associated company
Other—net
Total other expenses—net
INCOME BEFORE INCOME TAXES AND
PROVISION FOR (REVERSAL OF) RESERVE
FOR FLUCTUATIONS IN WATER LEVEL
PROVISION FOR (REVERSAL OF) RESERVE
FOR FLUCTUATIONS IN WATER LEVEL
INCOME BEFORE INCOME TAXES
INCOME TAXES (Note 7):
Current
Deferred
Total
NET INCOME
\ 1,411,500
203,897
146,097
94,098
263,043
173,521
22,510
6,898
11,411
21,465
94,448
64,457
36,168
69,955
1,207,968
203,532
87,724
2,706
17,949
1,131
109,510
94,022(53)94,075
46,570
(12,635)
33,935
\ 60,1402001\ 1,389,306
219,815
123,499
89,423
290,068
181,616
28,618
5,886
16,701
97,039
67,190
35,340
71,113
1,226,308
162,998
109,039
1,381
110,420
52,578
(931)
53,509
30,075
30,075
\ 23,4341999Non-Consolidated Statements of Income
Kyushu Electric Power Company, Incorporated
Years ended March 31, 2001, 2000 and 1999
See notes to non-consolidated financial statements.
\ 1,393,650
214,311
122,886
93,725
278,897
183,902
41,070
6,304
18,582
94,842
61,364
35,249
68,237
1,219,369
174,281
104,426
22,328
9,756
1,634
138,144
36,1375336,084
36,376
(23,278)
13,098
\ 22,9862000PER SHARE OF COMMON STOCK (Note 2.o.):
Net income:
Basic
Diluted
Cash dividends applicable to the year
\ 126.83
125.63
60.00
\ 48.47
48.32
50.00
\ 49.42
49.21
50.00
1ドル.021.010.48
Millions of yen
Thousands of
U.S. dollars (Note 1)
Yen U.S. dollars43BALANCE AT APRIL 1, 1998
Net income
Cash dividends, 50円 per share
Transfer to legal reserve
Bonuses to directors and corporate auditors
BALANCE AT MARCH 31, 1999
Adjustment of retained earnings for the
adoption of deferred tax accounting
method
Net income
Cash dividends, 50円 per share
Transfer to legal reserve
Bonuses to directors and corporate auditors
BALANCE AT MARCH 31, 2000
Net income
Cash dividends, 55円 per share
Transfer to legal reserve
Bonuses to directors and corporate auditors
Unrealized gain on available-for-sale
securities
BALANCE AT MARCH 31, 2001
474,184
474,184
474,184
474,184
Non-Consolidated Statements of Shareholders’ Equity
Kyushu Electric Power Company, Incorporated
Years ended March 31, 2001, 2000 and 1999
See notes to non-consolidated financial statements.
\ 237,305
237,305
237,305
\ 237,305
\ 31,087
31,087
31,087
\ 31,087
\ 52,050
2,385
54,435
2,385
56,820
2,506
\ 59,326
\ 297,997
23,434
(23,709)
(2,385)
(140)
295,197
58,207
22,986
(23,709)
(2,385)
(140)
350,156
60,140
(26,080)
(2,506)
(140)
\ 381,570
BALANCE AT MARCH 31, 2000
Net income
Cash dividends, 0ドル.44 per share
Transfer to legal reserve
Bonuses to directors and corporate auditors
Unrealized gain on available-for-sale securities
BALANCE AT MARCH 31, 2001
Thousands of U.S. dollars (Note 1)
1,915,295ドル
1,915,295ドル
Common
stock
250,904ドル
250,904ドル
Additional
paid-in
capital
458,596ドル
20,226
478,822ドル
Legal
reserve
2,826,118ドル
485,392
(210,493)
(20,226)
(1,130)
3,079,661ドル
Retained
earnings
\ 56,382
\ 56,382
455,060ドル
455,060ドル
Unrealized
gain on
available-for-
sale securities
Millions of yen
Thousands
Outstanding
number of
shares of
common stock
Common
stock
Additional
paid-in
capital
Retained
earnings
Legal
reserve
Unrealized
gain on
available-for-
sale securities44$ 759,282
(310,428)
2,344,899
115,456
154,956
55,674
104,254
6,667
(428)
21,840
144,867
(113,794)
20,436
(37,240)
6,901
(18,152)
(84,108)
2,411,800
3,171,082
(2,288,943)
(71,598)
36,118
69,508
(2,254,915)
1,125,254
(1,668,822)
617,401
(801,195)
127,563
(210,371)
(810,170)
105,997
331,759
$ 437,7562001CASH FLOWS FROM OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes—paid
Depreciation and amortization
Provision for liability for employees’ retirement benefits
Provision for reserve for reprocessing of irradiated nuclear fuel
Provision for reserve for decommissioning of nuclear power units
Loss on disposal of plant and equipment
Nuclear fuel transferred to reprocessing costs
Provision for (reversal of ) reserve for fluctuations in water level
Loss on devaluation of investment securities and
investments in associated companies
Loss on liquidation of an associated company
Cash contribution for liquidation of an associated company
Changes in assets and liabilities:
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payable
Decrease in interest payable
Other—net
Total adjustments
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures including nuclear fuel
Payments for investments and advances
Proceeds from sales of investment securities and
collections of advances
Other—net
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of bonds
Repayments of bonds
Proceeds from long-term bank loans
Repayments of long-term bank loans
Net increase (decrease) in short-term borrowings
Cash dividends paid
Net cash used in financing activities
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
\ 94,075
(38,462)
290,533
14,305
19,199
6,898
12,917826(53)
2,706
17,949
(14,099)
2,532
(4,614)855(2,249)
(10,421)
298,822
392,897
(283,600)
(8,871)
4,475
8,612
(279,384)
139,419
(206,767)
76,496
(99,268)
15,805
(26,065)
(100,380)
13,133
41,105
\ 54,2382001\ 53,509
(38,881)
317,219
4,962
22,621
5,886
8,947
5,869
(931)
(3,990)
4,006
(2,694)
(1,514)
13,509
335,009
388,518
(301,022)
(24,218)
3,236
4,477
(317,527)
180,000
(112,393)
31,381
(145,158)
(3,720)
(23,703)
(73,593)
(2,602)
65,866
\ 63,2641999Non-Consolidated Statements of Cash Flows
Kyushu Electric Power Company, Incorporated
Years ended March 31, 2001, 2000 and 1999
See notes to non-consolidated financial statements.
\ 36,084
(28,794)
307,022
42,554
29,099
6,304
10,818
10,267539,756
(3,801)
(2,374)
4,211
(2,116)
(8,658)
374,341
410,425
(280,631)
(8,245)
6,416
4,261
(278,199)
149,339
(186,358)
63,777
(145,055)
(12,390)
(23,698)
(154,385)
(22,159)
63,264
\ 41,1052000Millions of yen
Thousands of
U.S. dollars (Note 1)45Notes to Non-Consolidated Financial Statements
Kyushu Electric Power Company, Incorporated
Years ended March 31, 2001, 2000 and 1999
1. Basis of Presenting Non-Consolidated Financial Statements
The non-consolidated financial statements of Kyushu Electric
Power Company, Incorporated (the "Company") have been
prepared in accordance with the provisions set forth in the
Commercial Code of Japan (the "Code") and the Japanese Electric
Utility Law and their related accounting regulations, and in confor-
mity with accounting principles and practices generally accepted in
Japan which are different in certain respects as to application and
disclosure requirements of International Accounting Standards.
The non-consolidated financial statements are not intended to
present the financial position, results of operations and cash flows
in accordance with accounting principles and practices generally
accepted in countries and jurisdictions other than Japan. The non-
consolidated statements of cash flows are not required as part of the
basic financial statements in Japan but are presented herein as
additional information. Effective April 1, 1999, the Company
adopted the new accounting standards for cash flows, which
differed from those applied up to the year ended March 31, 1999;
accordingly, the non-consolidated statement of cash flows for the
year ended March 31, 1999 was restated to be in conformity with
the new standards.
In preparing these non-consolidated financial statements, certain
reclassifications and rearrangements have been made to the finan-
cial statements issued domestically in order to present them in a
form that is more familiar to readers outside Japan.
The United States dollar amounts included herein are provided
solely for the convenience of readers and are stated at the rate of
123円.90=U.S.1,ドル the approximate exchange rate prevailing on
March 31, 2001. The translations should not be construed as
representations that the Japanese yen amounts could be converted
into United States dollars at that or any other rate.
Certain reclassifications have been made to the non-consolidated
financial statements for 2000 and 1999 to conform to classifications
used in 2001.
2. Summary of Significant Accounting Policies
a. Property and Depreciation—Property is stated at cost. Prior to April
1, 2000, the cost of property includes certain interest costs on the
specific borrowed funds incurred during the construction period
of the related assets. Effective April 1, 2000, interest expense has
not been capitalized in accordance with a recent revision to the
accounting rules for electric utility companies. The effect of this
change was not incurred. Contributions in aid of construction that
include contributions made by customers are deducted from the
cost of the related assets.
Depreciation is computed using the declining-balance method
based on the estimated useful lives of the assets.
b. Amortization of Nuclear Fuel—Amortization of nuclear fuel is com-
puted based on the proportion of current heat production to the
estimated total heat production over the estimated useful life of the
nuclear fuel.
c. Investment Securities—In prior years, investment securities were
stated at cost determined by the average method.
Effective April 1, 2000, the Company adopted a new accounting
standard for financial instruments, including investment securities. It
requires all applicable securities to be classified and accounted for,
depending on management’s intent, as follows: i) held-to-maturity
securities are stated at cost with discounts or premiums amortized
throughout the holding periods; ii) available-for-sale securities,
which are not classified as the aforementioned securities and
investment securities in subsidiaries and associated companies, are
stated at market value; and securities without market value are
stated at cost if they are not significantly impaired. The Company
records unrealized gain or loss on available-for-sale securities, net
of deferred taxes, in shareholders’ equity presented as "Unrealized
gain on available-for-sale securities." The effect of the application
of the new standard was to increase investment securities by
88,234円 million (712,139ドル thousand) and to decrease long-term
deferred tax assets by 31,852円 million (257,078ドル thousand). In
addition, unrealized gain on available-for-sale securities was newly
accounted for in shareholders’ equity in the balance sheet as of
March 31, 2001.
d. Investments in Subsidiaries and Associated Companies—Investments
in subsidiaries and associated companies are stated at cost; however,
they are written down to appropriate values if the investments
have been significantly impaired in value of a permanent nature.
e. Cash Equivalents—Cash equivalents are certain short-term invest-
ments that are readily convertible into cash and that are exposed to
insignificant risk of changes in value. Cash equivalents include time
deposits, which mature or become due within three months of the
date of acquisition.
f. Foreign Currency Transactions—Prior to April 1, 2000, current
receivables and payables denominated in foreign currencies were
translated into Japanese yen at the rates in effect at each balance
sheet date, whereas noncurrent receivables and payables were
translated at the rates in effect when acquired or incurred.
Effective April 1, 2000, the Company adopted a revised
accounting standard for foreign currency transactions. In accordance
with the revised standard, receivables and payables denominated
in foreign currencies are translated into Japanese yen at the rates
in effect at each balance sheet date. The effect of this change
was immaterial.46g. Derivatives and Hedging Activities—The Company enters into
derivative financial instruments ("derivatives"), including foreign
exchange forward contracts and currency swaps, to hedge market
risk from the fluctuations in foreign exchange rates associated with
liabilities denominated in foreign currencies. The Company does
not enter into derivatives for trading or speculative purposes.
Effective April 1, 2000, the Company adopted a new accounting
standard for derivative financial instruments and a revised account-
ing standard for foreign currency transactions. These standards
require that: a) all derivatives be recognized as either assets or
liabilities and measured at market value, and gains or losses on the
derivatives be recognized currently in the income statement and b)
for derivatives for hedging purposes, if derivatives qualify for hedge
accounting because of high correlation and high hedge effectiveness
between the hedging instruments and the hedged items, gains or
losses on the derivatives are deferred until maturities of the hedged
transactions.
The long-term debt denominated in foreign currencies for
which the foreign exchange forward contracts are used to hedge
the foreign currency fluctuations are translated at the contracted
rate, since such treatment is also allowed to be incorporated under
the standards if the forward contracts qualify for hedge accounting.
The adoption of the new accounting standard for derivative
financial instruments and the revised accounting standard for
foreign currency transactions did not have a material effect on the
Company’s non-consolidated financial statements.
h. Severance Payments and Pension Plans—The Company has an
unfunded retirement plan for all of its employees and a contributory
funded defined benefit pension plan covering substantially all of its
employees.
In prior years, with respect to the unfunded plan, the annual
provision for employees’ severance payments were calculated to
state the present value of the amount that would be required if all
employees voluntarily terminated their services with the Company
at each balance sheet date. For the funded pension plan, the
amounts contributed to the fund except for prior service costs
were charged to income when paid. Prior service costs were
accrued when incurred.
Effective April 1, 1998, the Company changed its accounting
policy for prior service costs from the method of charging at the
time of contribution to the method of charging to income when
incurred. The effect of this change was to decrease income before
income taxes for the year ended March 31, 1999 by 9,528円 million.
In the fiscal year ended March 31, 2000, the Company amended
the rate of present value for calculating the annual provisions for
employees’ severance payments from 40% to 55%, which is based on
the average remaining service period of employees and the discount
rate considering the recent condition of lower interest rates. The
effect of this change was to decrease income before income taxes for
the year ended March 31, 2000 by 22,328円 million.
Effective April 1, 2000, the Company adopted a new accounting
standard for employees’ retirement benefits. Under the new
standard, the amount of the liability for employees’ retirement
benefits is determined based on the projected benefit obligations
and plan assets of the pension fund at the balance sheet date. The
full amount of the transitional obligation of 32,289円 million
(260,605ドル thousand), determined as of the beginning of year, was
amortized on a lump-sum basis in the current fiscal year ended
March 31, 2001.
The net effect of the adoption of the new standard on the
statement of income was to decrease income before income taxes
by 29,901円 million (241,332ドル thousand) including a cumulative
effect of 32,289円 million (260,605ドル thousand) for the year ended
March 31, 2001.
Retirement benefits for directors and corporate auditors are
charged to income when authorized by the shareholders.
i. Reserve for Reprocessing of Irradiated Nuclear Fuel—The annual
provision for the costs of reprocessing irradiated nuclear fuel is
calculated to state the related reserve at 60% of the amount that
would be required to reprocess all of the irradiated nuclear fuel in
accordance with the regulatory authority.
j. Reserve for Decommissioning of Nuclear Power Units—Provision is
made for future disposition costs of nuclear power units based on a
proportion of the current generation of electric power to the
estimated total generation of electric power of each unit.
k. Disposal Cost of High-Level Radioactive Waste—The Company pays
contributions to Nuclear Waste Management Organization of Japan
in order to fund costs for the ultimate disposal of high-level radio-
active waste. The contributions are charged to income when paid.
l. Income Taxes—Effective April 1, 1999, the Company adopted an
accounting method for interperiod allocation of income taxes
based on the asset and liability method. The cumulative effect of
the application of interperiod tax allocation in prior years in the
amount of 58,207円 million is included as an adjustment to retained
earnings as of April 1, 1999. Such cumulative effect is calculated by
applying the income tax rate stipulated by enacted tax laws as of
April 1, 1999.
Deferred income taxes are recorded to reflect the impact of
temporary differences between assets and liabilities recognized for
financial reporting purposes and such amounts recognized for tax
purposes. These deferred taxes are measured by applying currently
enacted tax laws to the temporary differences.47Original costs:
Electric power production facilities:
Hydroelectric power
Thermal power
Nuclear power
Internal-combustion engine power
Total
Transmission facilities
Transformation facilities
Distribution facilities
General facilities
Construction in progress
Property leased to others
Total
Less contributions in aid of construction
Less accumulated depreciation
Carrying value
3. Property
The major classes of property as of March 31, 2001 and 2000 were as follows:
$ 4,298,838
12,057,676
11,947,466
972,211
29,276,191
11,306,069
6,900,387
10,406,118
3,081,598
2,915,109
46,667
63,932,139
881,138
36,094,794
$ 26,956,2072001\ 532,626
1,493,946
1,480,291
120,457
3,627,320
1,400,822
854,958
1,289,318
381,810
361,182
5,782
7,921,192
109,173
4,472,145
\ 3,339,8742001\ 522,368
1,490,216
1,489,833
116,321
3,618,738
1,360,318
840,369
1,261,659
364,898
300,970
5,782
7,752,734
105,015
4,251,257
\ 3,396,4622000Millions of yen
Thousands of
U.S. dollars
m. Special Reserves—The Japanese Special Taxation Measures Law
permits companies in Japan to take as tax deductions certain
reserves, if recorded in the books of account, that are not required
for financial reporting purposes. These reserves must be reversed to
taxable income in future periods in accordance with the law.
The Code requires that the special reserves, except for the
reserve for fluctuations in water level, be recorded as a component
of shareholders’ equity (see Note 8).
A reserve for fluctuations in water level is recorded when the
volume of water for generating hydroelectric power is abundant
and available for future power generation, and reversed in years
when there is an insufficient volume of water, in accordance with
the Japanese Electric Utility Law and related accounting regulations.
Under the law and regulations, this reserve must be shown
as a liability.
n. Stock and Bond Issuance Costs and Bond Discount Charges—Stock
and bond issuance costs are charged to income when paid or
incurred.
Prior to April 1, 2000, bond discount charges were charged to
income when incurred. Effective April 1, 2000, bond discount
charges are amortized over the term of the related bonds in accor-
dance with a new accounting standard for financial instruments.
The effect of this change was immaterial.
o. Net Income and Cash Dividends per Share—Basic earnings per share
is computed based on the weighted average number of shares of
common stock outstanding during the year after giving effect to
retroactive adjustment for subsequent stock splits (if any).
Diluted earnings per share is computed assuming full conversion
of the outstanding convertible debt at the beginning of the year
or on the date of the subsequent issuance with an applicable
adjustment for related interest expense, net of income tax.
Cash dividends per share represent actual amounts applicable
to earnings of the respective year.
p. Research and Development Costs—Research and development costs
are charged to income as incurred.
q. Leases—Leases that transfer ownership of the leased equipment to
the lessee are accounted for as finance leases. All other leases are
accounted for as operating leases.485. Severance Payments and Pension Plans
Employees terminating their employment with the Company,
either voluntarily or upon reaching mandatory retirement age, are
entitled, under most circumstances, to severance payments based
on their rate of pay at the time of termination, length of service
and certain other factors. If the termination is made voluntarily at
one of a number of specified ages, the employee is entitled to
certain additional payments.
Additionally, the Company has a contributory funded defined
benefit pension plan covering substantially all of its employees. In
general, eligible employees retiring at the mandatory retirement
age receive pension payments for the remainder of their lives.
6. Short-term Borrowings
Short-term borrowings are generally represented by 365-day notes, bearing interest at the rates ranging from 0.14857% to 0.81821% and
0.30826% to 0.47321% at March 31, 2001 and 2000, respectively.
At March 31, 2001, the conversion price of the 2.0% domestic
convertible bonds was 2,860円 (23ドル.08) per share, which is subject
to adjustment for subsequent stock splits and certain other circum-
stances. At March 31, 2001, the outstanding convertible bonds
were convertible into 6,407,692 shares of common stock of the
Company.
The outstanding domestic bonds and convertible bonds and Swiss
franc bonds may be redeemed prior to maturity at the option of the
Company, in whole or in part at prices 100% of the principal
amount for the domestic bonds and in whole at prices ranging from
100.25% to 101.25% of the principal amount for Swiss franc bonds.
All of the Company’s assets are subject to certain statutory
preferential rights established to secure bonds, notes, loans received
from The Development Bank of Japan and bonds transferred to
banks under debt assumption agreements (see Note 11).
Certain long-term loan agreements include, among other things,
provisions that allow the lenders the right to approve, if desired,
any appropriations of retained earnings including dividends.
However, to date, no lender has exercised this right.
The annual maturities of long-term debt outstanding at March
31, 2001 were as follows:20022003200420052006Thereafter
Total
Thousands of
U.S. dollars
Millions of yen
\ 238,384
208,481
251,248
159,795
217,740
1,178,772
\ 2,254,420
01,924,003ドル
1,682,655
2,027,829
1,289,710
1,757,385
9,513,898
18,195,480ドル
Year ending
March 31
Eligible employees retiring after at least 20 years of service but
before the mandatory retirement age, receive a lump-sum payment
upon retirement and annuities for a period of 10 years.
As discussed in Note 2. h., effective April 1, 2000, the Company
adopted a new accounting standard for employees’ retirement
benefits. Net periodic benefit costs under the new standard for the
year ended March 31, 2001 were 50,566円 million (408,119ドル
thousand) and total charges to income under the plans for the years
ended March 31, 2000 and 1999 were 85,828円 million and
68,466円 million, respectively.
Domestic bonds, 0.4% to 6.9%, due serially to 2020
Domestic convertible bonds, 2.0%, due 2002
U.S. dollar bonds and notes, 6.375% to 7.25%, due 2002 to 2008
Swiss franc bonds, 4.0% to 7.5%, due 2001 to 2007
Deutsche mark bonds, 4.75%, due 2003
Canadian dollar bonds, 10.25%, due 2002
Loans from The Development Bank of Japan, 1.95% to 6.9%, due serially to 2023
Unsecured loans, principally from banks and insurance companies, 0.25% to 8.9%, due serially to 2021
Other
Total
Less current maturities
Long-term debt, less current maturities
4. Long-term Debt
Long-term debt consisted of the following at March 31, 2001 and 2000:
$ 8,172,599
147,910
888,741
485,730
278,854
188,943
3,682,905
4,301,751
48,047
18,195,480
1,924,003
$ 16,271,4772001\ 1,012,585
18,326
110,115
60,182
34,550
23,410
456,312
532,987
5,953
2,254,420
238,384
\ 2,016,0362001\ 1,066,604
18,326
110,115
72,931
34,550
23,410
500,802
511,268
6,470
2,344,476
266,017
\ 2,078,4592000Millions of yen
Thousands of
U.S. dollars49A reconciliation between the normal effective statutory tax
rate for the years ended March 31, 2001 and 2000 and the actual
effective tax rate reflected in the accompanying non-consolidated
statements of income is not disclosed because the difference
between those rates is immaterial.
The normal effective tax rate reflected in the accompanying
non-consolidated statement of income for the year ended March
31, 1999 differs from the actual effective tax rate, primarily due to
the effect of permanently non-deductible expenses and temporary
differences in the recognition of asset and liability items for tax and
financial reporting purposes.
8. Shareholders’ Equity
As described in Note 2.m., certain special reserves were included in retained earnings. Such reserves at March 31, 2001 and 2000 were
as follows:
7. Income Taxes
The Company is subject to Japanese national and local income
taxes which, in the aggregate, resulted in a normal effective statu-
tory tax rates of approximately 36.1% for 2001 and 2000, and
41.5% for 1999, respectively.
Deferred tax assets:
Pension and severance costs
Deferred charges
Reserve for reprocessing of irradiated nuclear fuel
Reserve for decommissioning of nuclear power units
Other
Deferred tax assets
Deferred tax liabilities:
Unrealized gain on available-for-sale securities
Reserve for depreciation of nuclear power production facilities under construction
Other
Deferred tax liabilities
Net deferred tax assets
The tax effects of significant temporary differences which
resulted in deferred tax assets and liabilities at March 31, 2001 and
2000 are as follows:
155,997ドル218156,215ドル2001Reserve for:
Depreciation of nuclear power production facilities under construction
Losses on overseas investments
Total
\ 19,32827\ 19,3552001\ 27,45525\ 27,4802000Millions of yen
Thousands of
U.S. dollars
341,848ドル
115,270
84,722
82,195
186,812
810,847ドル
257,078ドル
51,074129308,281ドル
502,566ドル2001\ 042,355
14,282
10,497
10,184
23,146
\ 100,464
\ 031,852
6,32816\ 038,196
\ 062,2682001\ 31,310
20,209
10,497
10,025
20,434
\ 92,475
\ 10,91970\ 10,989
\ 81,4862000Millions of yen
Thousands of
U.S. dollars
The Code requires at least 50% of the issue price of new shares,
with a minimum of the par value, to be designated as stated capital
as determined by resolution of the Board of Directors. Proceeds in
excess of amounts designated as stated capital are credited to
additional paid-in capital.
The Code also requires the Company to appropriate from
retained earnings to a legal reserve equal to at least 10% of all cash
payments made as an appropriation of retained earnings until the
reserve equals 25% of the stated capital. This reserve is not available
for dividends but may be used to reduce a deficit by resolution of
the shareholders.
The Company may transfer portions of additional paid-in capital
and legal reserve to stated capital by resolution of the Board of
Directors. The Company may also transfer portions of retained
earnings available for dividends to stated capital by resolution of the
shareholders.
Under the Code, the Company may issue new common shares
to existing shareholders without consideration as a stock split
pursuant to resolution of the Board of Directors. The Company
may make such a stock split to the extent that the aggregate par
value of the shares outstanding after the issuance does not exceed
the stated capital. However, the amount calculated by dividing the
total amount of shareholders’ equity by the number of outstanding
shares after the issuance may not be less than 500円.
Under the Articles of Incorporation of the Company, the
Company may repurchase its outstanding shares up to 47 million
shares to cancel them by resolution of the Board of Directors.509. Research and Development Costs
Research and development costs charged to income were 12,515円 million (101,009ドル thousand) and 12,037円 million for the years ended March
31, 2001 and 2000, respectively.
10. Leases
The Company leases certain computer and other equipment. Total
lease payments under finance lease arrangements were 5,669円
million (45,755ドル thousand), 5,250円 million and 5,252円 million for
the years ended March 31, 2001, 2000 and 1999, respectively.
Pro forma information of leased equipment such as acquisition
cost, accumulated depreciation and lease obligations, all of which
included imputed interest expense, under finance leases that do not
transfer ownership of the leased equipment to the lessee on an "as
if capitalized" basis at March 31, 2001 and 2000 were as follows:
Obligations under finance leases which included the imputed
interest expense at March 31, 2001 and 2000 were as follows:
11. Commitments and Contingencies
At March 31, 2001, the Company had a number of fuel purchase commitments, most of which specify quantities and dates for fuel deliveries.
However, purchase prices are contingent upon fluctuations in market prices.
Contingent liabilities as of March 31, 2001 were as follows:
Under the debt assumption agreements, the Company was contingently liable for the redemption of the domestic bonds transferred to banks.
Millions of yen
Acquisition cost
Accumulated depreciation
Net leased equipment
March 31, 2001
312,704ドル
138,580
174,124ドル
11,485ドル
5,868
05,617ドル
301,219ドル
132,712
168,507ドル
Acquisition cost
Accumulated depreciation
Net leased equipment2001\ 5,843
15,731
21,574円
Due within one year
Due after one year
Total
Millions of yen
$ 47,159
126,965
174,124ドル2000\ 4,931
12,808
17,739円2001Thousands of
U.S. dollars
General facilities Other
Thousands of U.S. dollars
Total
March 31, 2001
\ 38,744
17,170
\ 21,574
\ 1,423727\ 0,696
\ 37,321
16,443
\ 20,878
General facilities Other Total
Millions of yen
Acquisition cost
Accumulated depreciation
Net leased equipment
March 31, 2000
30,933円
13,194
17,739円
1,359円6440,715円
29,574円
12,550
17,024円
General facilities Other Total
Co-guarantees of loans, mainly in connection with procurement of fuel
Guarantees of employees’ housing loans
Guarantees under debt assumption agreements
Other
111,802円
52,091
194,417
8,835
0,902,357ドル
420,428
1,569,144
71,308
Millions of yen
Thousands of
U.S. dollars
Year-end cash dividends,
30円.00 (0ドル.24) per share
Bonuses to directors and
corporate auditors
14,225円140114,810ドル
1,130
Thousands of
U.S. dollars
Millions of yen
Dividends are approved by the shareholders’ meeting to be held
subsequent to the fiscal year to which the dividends are applicable.
In addition, a semi-annual interim dividend may be paid upon
resolution of the Board of Directors, subject to limitations imposed
by the Code.
The following appropriations of retained earnings as of March
31, 2001 were approved at the shareholders’ meeting held on June
28, 2001:51To the Board of Directors of
Kyushu Electric Power Company, Incorporated:
We have examined the non-consolidated balance sheets of Kyushu Electric Power Company, Incorporated as of March 31, 2001 and 2000,
and the related non-consolidated statements of income, shareholders’ equity, and cash flows for each of the three years in the period ended
March 31, 2001, all expressed in Japanese yen. Our examinations 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 non-consolidated financial statements referred to above present fairly the financial position of Kyushu Electric Power
Company, Incorporated as of March 31, 2001 and 2000, and the results of its operations and its cash flows for each of the three years in the
period ended March 31, 2001 in conformity with accounting principles and practices generally accepted in Japan consistently applied during
the period subsequent to the change, with which we concur, made as of April 1, 1998, in the accounting for pension plan as discussed in Note 2.
As described in Note 2, effective April 1, 2000, the non-consolidated financial statements have been prepared in accordance with new
accounting standards for employees’ retirement benefits and financial instruments and a revised accounting standard for foreign currency
transactions.
Our examinations also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation
has been made in conformity with the basis stated in Note 1. Such U.S. dollar amounts are presented solely for the convenience of readers
outside Japan.
June 28, 2001
INDEPENDENT AUDITORS’ REPORT
Tohmatsu & Co.
Fukuoka Sanwa Building
10-24, Tenjin 1-chome,
Chuo-ku,Fukuoka 810-0001, Japan
Tel: +81-92-751-0931
Fax: +81-92-714-5585
www.tohmatsu.co.jp52Millions of yen
(except for per share data)
11,392,252ドル
4,600,847
6,277,216
514,189
9,749,540
1,645,658
1,179,152
759,467
2,123,027
1,400,492
181,679
55,674
173,245
762,292
520,234
291,913
656,707
708,023
759,282
485,392
$ 1.021.010.48
32,334,600ドル
26,956,207
16,271,477
6,179,7422001For the year:
Operating revenues:
Residential (lighting)
Commercial and
industrial
Other
Operating expenses:
PersonnelFuelPurchased power
Depreciation
Maintenance
Reprocessing costs
of irradiated
nuclear fuel
Decommissioning
costs of nuclear
power units
Disposition of
property
Taxes other than
income taxes
Subcontract feeRentOther
Interest charges
Income before
income taxes
Net income
Per share of common
stock (yen and
U.S. dollars):
Net income:
Basic
Diluted
Cash dividends
applicable to the year
At year-end:
Total assets
Property, net
Long-term debt, less
current maturities
Total shareholders’ equity
Number of employees
1,411,500円
570,045
777,747
63,708
1,207,968
203,897
146,097
94,098
263,043
173,521
22,510
6,898
21,465
94,448
64,457
36,168
81,366
87,724
94,075
60,140
\ 126.83
125.63
60.00
4,006,257円
3,339,874
2,016,036
765,670
14,34820011,410,921円
562,675
815,263
32,983
1,213,446
187,491
129,631
87,685
312,497
187,860
19,457
5,513
17,047
94,787
67,813
33,458
70,207
131,791
65,735
30,702
\ 64.75
64.30
50.00
3,994,351円
3,523,684
2,301,914
618,439
14,6091998Non-Consolidated Six-Year Financial Summary
Kyushu Electric Power Company, Incorporated
Years ended March 31
Note: All dollar figures herein refer to U.S. currency. Yen amounts have been translated, for convenience only, at 123円.90=U.S.1ドル.
1,381,013円
555,110
792,602
33,301
1,183,217
176,554
154,196
78,238
287,680
186,429
14,542
5,067
15,615
93,066
71,667
30,897
69,266
137,065
61,087
36,873
\ 77.76
77.15
50.00
3,992,602円
3,561,060
2,258,127
611,587
14,57219971,398,490円
558,392
810,217
29,881
1,177,350
171,567
127,601
76,002
269,752
202,512
12,676
6,472
15,447
89,605
68,076
30,387
107,253
141,962
81,275
41,992
\ 88.56
87.80
50.00
3,960,035円
3,524,536
2,256,422
598,560
14,47319961,389,306円
561,808
776,828
50,670
1,226,308
219,815
123,499
89,423
290,068
181,616
28,618
5,886
16,701
97,039
67,190
35,340
71,113
109,039
53,509
23,434
\ 49.42
49.21
50.00
3,948,892円
3,453,364
2,203,865
618,024
14,44519991,393,650円
564,029
768,596
61,025
1,219,369
214,311
122,886
93,725
278,897
183,902
41,070
6,304
18,582
94,842
61,364
35,249
68,237
104,426
36,084
22,986
\ 48.47
48.32
50.00
3,959,244円
3,396,462
2,078,459
675,368
14,4282000Thousands of
U.S. dollars
(except for
per share data)