Konica Minolta 2009 Annual Report Download - page 39

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The reconciliation of the Japanese statutory income tax rate to
the effective income tax rate for the years ended March 31, 2009
and 2008 is as follows:
2009 2008
Statutory income tax rate 40.7% 40.7%
Increase (Decrease) in valuation allowance 6.4 (4.9)
Tax credits (5.0) (4.3)
Non-taxable income (0.5) (4.7)
Difference in statutory tax rates of foreign
subsidiaries (0.6) (0.0)
Expenses not deductible for tax purposes 4.5 2.6
Amortization of goodwill 10.9 2.7
Impact of change in the recording standard
of tax effects of retained earnings in
accordance with revision of Corporate
Tax Laws (10.4) –
Ineffective portion of unrealized (gain) loss 5.5 –
Other, net 2.7 (1.8)
Effective income tax rate per consolidated
statements of income 54.3% 30.3%
At March 31, 2009 and 2008, significant components of deferred
tax assets and liabilities in the consolidated financial statements are
as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2009 2008 2009
Deferred tax assets:
Net operating tax loss carried
forward ¥ 31,953 ¥ 27,061 $ 325,288
Accrued retirement benefits 29,824 26,973 303,614
Elimination of unrealized
intercompany profits 9,064 20,131 92,273
Reserve for discontinued
operations 6,025 9,565 61,336
Depreciation and amortization 5,661 5,710 57,630
Write-down of assets 5,122 4,151 52,143
Accrued bonuses 4,431 5,768 45,108
Tax effects related to investments 1,717 1,721 17,479
Allowance for doubtful accounts 1,039 1,169 10,577
Accrued enterprise taxes 242 2,059 2,464
Other 10,295 8,657 104,805
Gross deferred tax assets 105,378 112,970 1,072,768
Valuation allowance (33,335) (34,639) (339,357)
Total deferred tax assets 72,043 78,331 733,411
Deferred tax liabilities:
Gains on securities contributed
to employees’ retirement
benefit trust (2,973) (3,042) (30,266)
Retained earnings of overseas
subsidiaries (2,272) (5,455) (23,129)
Special tax-purpose reserve for
condensed booking of fixed
assets (558) (800) (5,681)
Unrealized gains on securities (440) (3,265) (4,479)
Other (1,703) (377) (17,337)
Total deferred tax liabilities (7,948) (12,941) (80,912)
Net deferred tax assets ¥ 64,094 ¥ 65,389 $ 652,489
Deferred tax liabilities related
to revaluation:
Deferred tax liabilities on land
revaluation ¥ (3,889) ¥ (4,010) $ (39,591)
Net deferred tax assets are included in the following items in the
consolidated balance sheets:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2009 2008 2009
Current assets –
deferred tax assets ¥25,326 ¥37,086 $257,823
Fixed assets –
deferred tax assets 39,608 28,604 403,217
Current liabilities –
other current liabilities (734) (248) (7,472)
Long-term liabilities –
other long-term liabilities (105) (53) (1,069)
Net deferred tax assets ¥64,094 ¥65,389 $652,489
8. 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 additional 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, 2009 and 2008 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, 2009 do not reflect current year-
end dividends in the amount of ¥5,302 million ($53,975 thousand)
approved by the Board of Directors, which will be payable in
June 2009.
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 October 30, 2008, the Board of Directors approved cash
dividends to be paid to shareholders of record as of September 30,
2008, totaling ¥5,303 million ($53,986 thousand), at a rate of ¥10.0
per share. On May 14, 2009, the Board of Directors approved cash
dividends to be paid to shareholders of record as of March 31,
2009, totaling ¥5,302 million ($53,975 thousand), at a rate of ¥10.0
per share.