14. Investment and Rental Property Disclosures about the fair values of investment and rental property have not been presented as the total amount of the property is immaterial. Effective from the fiscal year ended December 31, 2010, the Company and its consolidated subsidiaries have applied “Accounting Standard for Disclosures about Fair Value of Investment and Rental Property” (ASBJ Statement No.20, November 28, 2008), and “Guidance on Accounting Standard for Disclosures about Fair Value of Investment and Rental Property” (ASBJ Guidance No.23, November 28, 2008). 15. Capital Surplus and Retained Earnings The Corporation Law of Japan provides that an amount equal to 10% of the amount to be disbursed as distributions of capital surplus (other than the capital reserve) and retained earnings (other than the legal reserve) be transferred to the capital reserve or the legal reserve until the sum of the capital reserve and the legal reserve equals 25% of the capital stock account. Such distributions can be made at any time by resolution of the shareholders or by the Board of Directors if certain conditions are met. The legal reserve amounted to \3,990 million (U.S.$48,963 thousand) and \3,990 million as of December 31, 2010 and 2009, respectively. 16. Research and Development Costs Research and development costs included in selling, general and administrative expenses and manufacturing costs for the years ended December 31, 2010 and 2009 were \4,582 million (U.S.$56,235 thousand) and \4,472 million, respectively. 17. Leases The following amounts represent the acquisition cost, accumulated depreciation and net book value of finance lease transactions entered into on or before December 31, 2009, except for the lease agreements which stipulate the transfer of ownership of the leased assets to the lessee, as of December 31, 2010 and 2009: Millions of yen Thousands of U.S. dollars 2010 2009 2010 Acquisition cost: Buildings and structures.................... \ 23 \ 38 $ 292 Machinery and equipment.............. 475 699 5,832 Other intangible fixed assets.......... 8 8 101 \507 \746 $6,225 Accumulated depreciation: Buildings and structures.................... \ 20 \ 30 $ 248 Machinery and equipment.............. 393 520 4,828 Other intangible fixed assets.......... 7 5 91 \421 \555 $5,168 Net book value: Buildings and structures.................... \ 3 \ 8 $ 43 Machinery and equipment.............. 81 179 1,003 Other intangible fixed assets.......... 0 2 10 \ 86 \190 $1,057 Lease payments relating to finance lease transactions accounted for as operating leases amounted to \107 million (U.S.$1,315 thousand) and \154 million, respectively, which were equal to the depreciation expense of the leased assets computed by the straight-line method over the respective lease terms, for the years ended December 31, 2010 and 2009, respectively. Future minimum lease payments (including the interest portion thereon) subsequent to December 31, 2010 for non-cancelable operating leases and finance leases accounted for as operating leases were summarized as follows: Millions of yen Thousands of U.S. dollars Year ending December 31, Operating leases Finance leases Operating leases Finance leases 2011............................................ \61 \59 $749 $ 726 2012 and thereafter.......... 14 27 183 333 Total............................................ \76 \86 $933 $1,059 18. Treasury Stock Number of shares of treasury stock for the years ended December 31, 2010 and 2009 was as follows: Thousands of shares Year ended December 31, 2010 December 31, 2009 Increase during the year Decrease during the year December 31, 2010 Treasury stock: Common stock................. 11,603 142 20 11,725 Total............................................... 11,603 142 20 11,725 Thousands of shares Year ended December 31, 2009 December 31, 2008 Increase during the year Decrease during the year December 31, 2009 Treasury stock: Common stock................. 3,419 8,216 33 11,603 Total............................................... 3,419 8,216 33 11,603 19. Cash Dividends Dividends paid in the years ended December 31, 2010 and 2009 were as follows: Year ended December 31, 2010 Millions of yen Thousands of U.S. dollars Resolution Type of shares Gross amount Gross amount March 30, 2010 97th Annual Shareholders’ Meeting Common stock \757 $ 9,291 August 5, 2010 Board of Directors Common stock \883 $10,836 Year ended December 31, 2010 Yen U.S. dollars Resolution Per share Per share Record date Effective date March 30, 2010 97th Annual Shareholders’ Meeting \3.00 $0.037 December 31, 2009 March 31, 2010 August 5, 2010 Board of Directors \3.50 $0.043 June 30, 2010 September 6, 2010 Year ended December 31, 2009 Millions of yen Resolution Type of shares Gross amount March 27, 2009 96th Annual Shareholders’ Meeting Common stock \1,042 August 6, 2009 Board of Directors Common stock \ 765 Year ended December 31, 2009 Yen Resolution Per share Record date Effective date March 27, 2009 96th Annual Shareholders’ Meeting \4.00 December 31, 2008 March 30, 2009 August 6, 2009 Board of Directors \3.00 June 30, 2009 September 4, 2009 Dividends whose record date was in the year ended December 31, 2010 but whose effective date is in the year ending December 31, 2011 were as follows: Year ended December 31, 2010 Millions of yen Thousands of U.S. dollars Resolution Type of shares Gross amount Gross amount Resource March 30, 2011 98th Annual Shareholders’ Meeting Common stock \1,387 $17,026 Retained earnings Year ended December 31, 2010 Yen U.S. dollars Resolution Per share Per share Record date Effective date March 30, 2011 98th Annual Shareholders’ Meeting \5.50 $0.067 December 31, 2010 March 31, 2011 38 Annual Report 2010