50 TOSHIBA CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Millions of yen Pre-tax Tax benefit Net-of-tax amount (expense) amount For the year ended March 31, 2003: Unrealized gains on securities: Unrealized holding losses arising during year ¥ (28,670) ¥11,717 ¥ (16,953) Less: reclassification adjustment for losses included in net income 12,524 (5,121) 7,403 Foreign currency translation adjustments: Currency translation adjustments arising during year (20,363) (374) (20,737) Less: reclassification adjustment for losses included in net income 3,099 — 3,099 Minimum pension liability adjustment (217,487) 92,357 (125,130) Unrealized losses on derivative instruments: Unrealized losses arising during year (11,210) 4,784 (6,426) Less: reclassification adjustment for losses included in net income 11,668 (4,907) 6,761 Other comprehensive income (loss) ¥(250,439) ¥98,456 ¥(151,983) Thousands of Millions of yen U.S. dollars March 31 2003 2002 2003 Unrealized gains on securities: Balance at beginning of year ¥ 25,186 ¥ 28,728 $ 209,883 Current year change (9,550) (3,542) (79,583) Balance at end of year ¥ 15,636 ¥ 25,186 $ 130,300 Foreign currency translation adjustments: Balance at beginning of year ¥ (41,951) ¥ (55,938) $ (349,592) Current year change (17,638) 13,987 (146,983) Balance at end of year ¥ (59,589) ¥ (41,951) $ (496,575) Minimum pension liability adjustment: Balance at beginning of year ¥(279,939) ¥(199,185) $(2,332,824) Current year change (125,130) (80,754) (1,042,751) Balance at end of year ¥(405,069) ¥(279,939) $(3,375,575) Unrealized losses on derivative instruments: Balance at beginning of year ¥ (2,088) — $ (17,400) Current year change 335 ¥ (2,088) 2,792 Balance at end of year ¥ (1,753) ¥ (2,088) $ (14,608) Total accumulated other comprehensive loss: Balance at beginning of year ¥(298,792) ¥(226,395) $(2,489,933) Current year change (151,983) (72,397) (1,266,525) Balance at end of year ¥(450,775) ¥(298,792) $(3,756,458) Retained Earnings Accumulated Other Comprehensive Loss Corporation’s shares had a par value of ¥50 per share.  Retained earnings at March 31, 2003 and 2002 include a legal reserve of ¥12,869 million ($107,242 thousand) and ¥81,815 million, respectively. The Japanese Commercial Code provides that an amount equal to at least 10 per- cent of cash dividends and other distributions from retained earnings paid by Toshiba Corporation and its Japanese subsidiaries be appropriated as a legal reserve. No further appropriations are required when the total amount of the additional paid-in capital and the legal reserve equals 25 percent of their respective stated capital. The Japanese Commercial Code also provides that to the extent that the sum of the additional paid-in capital and the legal reserve exceeds 25 percent of the stated capital, the amount of the excess (if any) is available for appro- priations by the resolution of the shareholders.  The amount of retained earnings available for dividends is based on Toshiba Corporation’s retained earnings deter- mined in accordance with generally accepted accounting principles in Japan and the Japanese Commercial Code. Retained earnings at March 31, 2003 do not reflect year-end dividends of ¥9,656 million ($80,467 thousand) for the year ended March 31, 2003, which are expected to be formally approved at the general shareholders’ meeting held in June 2003, and will be payable subsequently.  Retained earnings at March 31, 2003 included the Company’s equity in undistributed earnings of affiliated companies accounted for by the equity method in the amount of ¥45,131 million ($376,092 thousand). An analysis of the changes in accumulated other comprehensive loss, net of tax, for the years ended March 31, 2003 and 2002 is shown below: Tax effects allocated to each component of other comprehensive income (loss) for the years ended March 31, 2003 and 2002 are shown below: