Konica Minolta 2005 Annual Report Download - page 49

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8. RESEARCH AND DEVELOPMENT EXPENSE
Total amounts charged to income for the fiscal years ended
March 31, 2005 and 2004 are ¥65,994 million (US$614,526
thousand) and ¥49,103 million, respectively.
9. SHAREHOLDER’S EQUITY
On August 5, 2003, Konica Corporation (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 outstanding shares increased from 357,655,368 to
531,664,337 by 174,008,969, resulting in an additional paid-
in capital increase of ¥146,706 million, as a result of the
integration.
On May 12, 2005, the Board of Director’s meeting
approved cash dividends to be paid to shareholders of
record as of March 31, 2005, totaling ¥2,655 million, at a
rate of ¥5 per share.
10. CONTINGENT LIABILITIES
The Companies were contingently liable as of March 31,
2005 for loan guarantees of ¥2,131 million (US$19,844
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
2005 2004 2005
Buildings and structures ¥6,098 ¥ 7,346 $56,784
Machinery, equipment
and other 9,725 4,401 90,558
Tools and furniture 19,111 20,463 177,959
Rental business-use assets 6,913 9,045 64,373
Intangible assets 813 1,187 7,571
42,662 42,443 397,262
Less: Accumulated
depreciation (27,538) (23,221) (256,430)
Net book value 15,124 19,222 140,832
Depreciation ¥9,389 ¥ 5,640 $87,429
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, 2005 and
2004 are as follows:
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Due within one year ¥6,790 ¥ 8,089 $63,227
Due over one year 8,333 11,132 77,596
Total 15,124 19,222 140,832
Lease rental expenses
for the year ¥9,389 ¥ 5,640 $87,429
2) Operating Leases
The scheduled maturities of future operating lease rental
payments as of March 31, 2005 and 2004 are as follows:
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Due within one year ¥9,668 ¥ 7,151 $90,027
Due over one year 21,036 20,412 195,884
Total ¥30,705 ¥27,564 $285,920
Lessor
1) Finance Leases
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Leased rental
business-use assets:
Purchase cost ¥20,345 ¥ 18,459 $189,450
Accumulated
depreciation (13,060) (11,512) (121,613)
Net book value ¥7,284 ¥ 6,947 $67,828
The scheduled maturities of future finance lease rental
income as of March 31, 2005 and 2004 are as follows:
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Due within one year ¥3,379 ¥ 4,065 $31,465
Due over one year 4,484 3,439 41,754
Total 7,863 7,505 73,219
Lease rental income
for the year 5,054 2,890 47,062
Depreciation for the year ¥4,271 ¥2,285 $39,771
2) Operating Leases
The scheduled maturities of future lease rental income on
such lease contracts as of March 31, 2005 and 2004 are as
follows:
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Due within one year ¥3,094 ¥3,857 $28,811
Due over one year 1,575 4,198 14,666
Total ¥4,669 ¥8,055 $43,477