Konica Minolta 2008 Annual Report Download - page 49

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6. Short-Term Debt and Long-Term Debt
Short-term debt was principally unsecured and generally represents
bank overdrafts. The amounts as of March 31, 2008 and 2007
were ¥93,875 million ($936,970 thousand) and ¥79,927 million,
respectively, and the weighted-average interest rates were
approximately 3.4% and 3.3% , respectively.
Long-term debt as of March 31, 2008 and 2007, including
current portion, consisted of the following:
Bonds Thousands of
Millions of yen U.S. dollars
March 31 March 31
2008 2007 2008
2.3% bonds due in 2007 ¥—¥ 9 $—
2.5% bonds due in 2007 —9—
2.4% bonds due in 2007 —9—
2.825% unsecured
bonds due in 2008 5,000 5,000 49,905
Zero coupon convertible
unsecured bonds due
in 2009 30,166 30,266 301,088
Zero coupon convertible
unsecured bonds due
in 2016 40,000 40,000 399,241
¥75,166 ¥75,296 $750,235
Less—Current portion
included in current liabilities (5,000) (29) (49,905)
¥70,166 ¥75,266 $700,329
Zero coupon convertible unsecured bonds due in 2009 and
2016 above are bonds with share subscription rights issued on
December 7, 2006. Details of the share subscription rights are as
follows: 2009 bonds 2016 bonds
Class of stock Common Stock Common Stock
Issue price of shares (Yen) Zero Zero
Initial conversion prices
(Yen/per share) ¥2,175 ¥2,383
Total issue price
(Millions of yen) ¥30,000 ¥40,000
Ratio of granted rights (% ) 100 100
Period share subscription From December From December
rights can be exercised 21, 2006 to 21, 2006 to
December 1, November 22,
2009 2016
Long-term loans Thousands of
Millions of yen Interest U.S. dollars
March 31 rate March 31
2008 2007 2008 2008
Loans principally
from banks, due
through 2020 ¥56,983 ¥ 74,140 1.4% $568,749
Less—Current portion
included in current
liabilities (6,363) (17,075) (63,509)
¥50,620 ¥ 57,065 $505,240
The aggregate annual maturities of long-term loans at March
31, 2008 are as follows: Amount
Thousands of
Years ending March 31 Millions of yen U.S. dollars
2009 ¥ 6,363 $ 63,509
2010 12,103 120,800
2011 27,502 274,498
2012 11,002 109,811
2013 2 20
7. Income Taxes
The income taxes of the Company and its domestic consolidated
subsidiaries consist of corporate income taxes, local inhabitants’
taxes and enterprise taxes.
The reconciliation of the Japanese statutory income tax rate to
the effective income tax rate for the years ended March 31, 2008
and 2007 is as follows:
2008 2007
Statutory income tax rate 40.7% 40.7%
Decrease in valuation allowance (4.9) (9.3)
Tax credits (4.3) (2.6)
Non-taxable income (4.7) (0.7)
Difference in statutory tax rates
of foreign subsidiaries (0.0) (0.3)
Expenses not deductible for
tax purposes 2.6 1.7
Amortization of goodwill 2.7 1.9
Other, net (1.8) (0.8)
Effective income tax rate per
consolidated statements of income 30.3% 30.6%
At March 31, 2008 and 2007, significant components of
deferred tax assets and liabilities in the consolidated financial
statements are as follows:
Thousands of
Millions of yen U.S. dollars
March 31 March 31
2008 2007 2008
Deferred tax assets:
Net operating tax loss
carried forward ¥ 27,061 ¥ 25,244 $ 270,097
Accrued retirement benefits 26,973 28,949 269,218
Elimination of unrealized
intercompany profits 20,131 18,121 200,928
Reserve for discontinued
operations 9,565 12,901 95,469
Accrued bonuses 5,768 5,181 57,571
Depreciation and amortization 5,710 4,298 56,992
Write-down of assets 4,151 7,658 41,431
Enterprise taxes 2,059 2,148 20,551
Tax effects related to
investments 1,721 8,720 17,177
Allowance for doubtful
accounts 1,169 986 11,668
Other 8,657 16,194 86,406
Gross deferred tax assets 112,970 130,405 1,127,558
Valuation allowance (34,639) (49,902) (345,733)
Total deferred tax assets 78,331 80,502 781,825
Deferred tax liabilities:
Retained earnings of
overseas subsidiaries (5,455) (3,194) (54,447)
Unrealized gains on securities (3,265) (6,374) (32,588)
Gains on securities
contributed to employees’
retirement benefit trust (3,042) (3,124) (30,362)
Special tax-purpose
reserve for condensed
booking of fixed assets (800) (1,086) (7,985)
Other (377) (291) (3,763)
Total deferred tax liabilities (12,941) (14,072) (129,165)
Net deferred tax assets ¥ 65,389 ¥ 66,430 $ 652,650
Deferred tax liabilities
related to revaluation:
Deferred tax liabilities
on land revaluation ¥(4,010) ¥(4,028) $(40,024)