Konica Minolta 2008 Annual Report Download - page 50

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Net deferred tax assets are included in the following items in
the consolidated balance sheets:
Thousands of
Millions of yen U.S. dollars
March 31 March 31
2008 2007 2008
Current assets –
deferred tax assets ¥37,086 ¥41,336 $370,157
Fixed assets –
deferred tax assets 28,604 27,306 285,498
Current liabilities –
other current liabilities (248) (21) (2,475)
Long-term liabilities –
other long-term liabilities (53) (2,191) (529)
Net deferred tax assets ¥65,389 ¥66,430 $652,650
8. Research and Development Costs
Research and development costs included in cost of sales and
selling, general and administrative expenses for the years ended
March 31, 2008 and 2007 are ¥81,370 million ($812,157
thousand) and ¥72,142 million, respectively.
9. Net Assets
The Japanese Corporate Law became effective on May 1, 2006,
replacing the Commercial Code. Under Japanese laws and
regulations, the entire amount paid for new shares is required to
be designated as common stock. However, a company may, by a
resolution of the Board of Directors, designate an amount not
exceeding one half of the price of the new shares as additional
paid-in capital, which is included in capital surplus.
The Japanese Corporate Law provides that an amount equal
to 10% of distributions from retained earnings paid by the
Company and its Japanese subsidiaries be appropriated as addi-
tional paid-in capital or legal earnings reserve. Legal earnings
reserve is included in retained earnings in the accompanying
consolidated balance sheets. No further appropriations are
required when the total amount of the additional paid-in capital
and the legal earnings reserve equals 25% of their respective
stated capital. The Japanese Corporate Law also provides that
additional paid-in capital and legal earnings reserve are available
for appropriations by the resolution of the Board of Directors.
Cash dividends and appropriations to the additional paid-in
capital or the legal earnings reserve charged to retained earnings
for the years ended March 31, 2008 and 2007 represent dividends
paid out during those years and the related appropriations to the
additional paid-in capital or the legal earnings reserve.
Retained earnings at March 31, 2008 do not reflect current
year-end dividends in the amount of ¥3,979 million ($39,715
thousand) approved by the Board of Directors, which will be
payable in May 2008.
The amount available for dividends under the Japanese
Corporate Law is based on the amount recorded in the Company’s
nonconsolidated books of account in accordance with accounting
principles generally accepted in Japan.
On November 1, 2007, the Board of Directors approved cash
dividends to be paid to shareholders of record as of September
30, 2007, totaling ¥3,980 million ($39,725 thousand), at a rate of
¥7.5 per share. On May 9, 2008, the Board of Directors approved
cash dividends to be paid to shareholders of record as of March
31, 2008, totaling ¥3,979 million ($39,715 thousand), at a rate of
¥7.5 per share.
10. Contingent Liabilities
The Companies were contingently liable at March 31, 2008 for
loan and lease guarantees of ¥3,266 million ($32,598 thousand)
and at March 31, 2007 for loan and lease guarantees of ¥2,236
million.
11. Loss on Impairment of Fixed Assets
The Companies have recognized loss on impairment of ¥5,702
million ($56,912 thousand) and ¥640 million for the following
groups of assets for the years ended March 31, 2008 and 2007,
respectively:
Description Classification Amount
Thousands of
Millions of yen U.S. dollars
March 31 March 31
2008 2007 2008
Manufacturing Machinery and ¥2,361 ¥— $23,565
facilities of equipment,
medical and Tools and
graphic film furniture, Others
Rental assets Rental business- 91 117 908
use assets
Idle assets Land, 328 522 3,274
Buildings and
structures,
Machinery, Others
Others Goodwill 2,921 —29,155
Total ¥5,702 ¥640 $56,912
(1) Identifying the cash-generating unit to which an asset belongs
Each cash-generating unit is identified based on product lines
and geographical areas as a group of assets. For rental assets,
cash-generating units are identified based on rental contracts
and each geographical area. Each idle asset is also identified
as a cash-generating unit.
(2) The Companies have written the assets down to the recover-
able value and recognized an impairment loss due to worsen-
ing of the market environment in the Medical and Graphic
business, the decline in real estate value, poor performance
and profitability of rental and idle assets, and the revaluation
of goodwill.
(3) Details of impairment of fixed assets
Amount
Thousands of
Millions of yen U.S. dollars
March 31 March 31
2008 2007 2008
Buildings and structures ¥ — ¥ 87 $ —
Rental business-use assets —117 —
Machinery and equipment 2,451 —24,464
Goodwill 2,921 —29,155
Others 330 435 3,294
(4) Measuring recoverable amount
The recoverable amount of a cash-generating unit is the fair
value less costs to sell. The fair value is supported by an
appraisal report for land and buildings and structures, or a
management estimate for rental business-use assets.