Konica Minolta 2004 Annual Report Download - page 51

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KONICA MINOLTA HOLDINGS, INC. 2004
8. Research and Development Expenses
Total amounts charged to income for the fiscal years ended March 31,
2004 and 2003 are ¥49,103 million (US$464,595 thousand) and
¥30,308 million, respectively.
9. Shareholders’ Equity
On August 5, 2003, Konica Corp. (Konica) and Minolta Co., Ltd.
(Minolta) integrated their management by issuing 0.621 of a Konica
share to the shareholders of Minolta in an exchange for one Minolta
share. Before the share exchange, the articles of incorporation were
amended and as a result, the number of authorized shares increased
from 800,000,000 to 1,200,000,000. The number of issued and out-
standing shares increased from 357,655,368 to 531,664,337 by
174,008,969 after the integration. The amount of common stock did not
change whereas additional paid-in capital increased by ¥146,706
million as a result of the integration.
On May 20, 2004 the Board of Directors’ meeting approved a
cash dividend to be paid to shareholders of record as of March 31,
2004 totaling ¥2,655 million, at a rate of ¥5 per share.
Effective for the year ended March 31, 2003, the Company and its
domestic consolidated subsidiaries adopted the Statement of Financial
Accounting Standard No.1 “Accounting for Treasury Stock and Reversal
of Capital and Legal Reserves” issued by the Accounting Standards
Board of Japan. However, the effect on net income for the period of
adopting this new statement was immaterial.
10. Contingent Liabilities
The Companies were contingently liable as of March 31, 2004 for loan
guarantees of ¥2,030 million (US$19,207 thousand).
11. Lease Transactions
Information on the Companies’ finance lease transactions (except for
those which are deemed to transfer the ownership of the leased assets to
the lessee) and operating lease transactions are as follows:
Lessee
1) Finance Leases
Thousands of
Millions of yen U.S. dollars
2004 2003 2004
Buildings and structures ¥7,346 ¥ 36 $ 69,505
Machinery and equipment 4,401 10,724 41,641
Tools and furniture 20,564 9,369 194,569
Rental business-use assets 9,045 —85,580
Intangible assets 1,085 471 10,266
42,443 20,601 401,580
Less: Accumulated depreciation (22,392) (10,570) (211,865)
Net book value 20,051 10,031 189,715
Depreciation ¥5,640 ¥ 4,311 $ 53,364
Depreciation is based on the straight-line method over the lease terms
of the leased assets.
The scheduled maturities of future lease rental payments on such
lease contracts as of March 31, 2004 and 2003 are as follows:
Thousands of
Millions of yen U.S. dollars
2004 2003 2004
Due within one year ¥ 8,089 ¥ 3,564 $ 76,535
Due over one year 11,961 6,466 113,171
Total 20,051 10,031 189,715
Lease rental expenses for the year ¥ 5,640 ¥ 4,311 $ 53,364
2) Operating Leases
The scheduled maturities of future lease rental payments on such lease
contracts as of March 31, 2004 and 2003 are as follows:
Thousands of
Millions of yen U.S. dollars
2004 2003 2004
Due within one year ¥26,951 ¥ 4,940 $255,000
Due over one year 51,323 14,745 485,599
Total ¥78,275 ¥19,685 $740,609
Lessor
Finance Leases
Thousands of
Millions of yen U.S. dollars
2004 2003 2004
Leased rental business-use assets:
Purchase cost ¥25,232 ¥576 $ 238,736
Accumulated depreciation (14,938) (537) (141,338)
Net book value ¥10,294 ¥ 38 $ 97,398
The scheduled maturities of future lease rental income on such lease
contracts as of March 31, 2004 and 2003 are as follows:
Thousands of
Millions of yen U.S. dollars
2004 2003 2004
Due within one year ¥ 6,221 ¥ 44 $ 58,861
Due over one year 5,616 —53,137
Total 11,838 44 112,007
Lease rental income for the year 17,178 618 162,532
Depreciation for the year ¥14,938 ¥537 $141,338
12. Retirement Benefit Plans
The Companies have defined benefit retirement plans that include corpo-
rate defined benefit pensions plans (CDBPs), which are governed by the
Japanese Welfare Pension Insurance Law, tax-qualified pension plans,
and lump-sum payment plans. In addition, the Company may pay addi-
tional retirement benefits to employees at its discretion.
The Company and certain of its consolidated subsidiaries recently
changed their retirement plans, which are summarized as follows.
On April 1, 2003, Konica’s tax-qualified benefit plan was transferred
to a CDBP.
On April 30, 2003, a portion of the Konica lump-sum payment plan
was transferred to a defined contribution pension plan.