Konica Minolta 2010 Annual Report Download - page 43

The zero coupon convertible unsecured bonds due in 2016 (on the
previous page) are bonds with share subscription rights issued on
December 7, 2006. Details of the share subscription rights are as follows:
2016 bonds
Class of stock Common Stock
Issue price of shares (Yen) Zero
Initial conversion prices (Yen/per share) ¥2,383
Total issue price (Millions of yen) ¥40,000
Ratio of granted rights (%) 100%
Period share subscription rights can be exercised From December
21, 2006 to
November 22, 2016
Long-term loans
Millions of yen Interest
rate
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010 2010
Loans principally from
banks, due through
2018 ¥ 99,126 ¥ 95,362 $1,065,413
Less—Current portion
included in current
liabilities (27,501) (12,102) 1.4% (295,583)
Long-term loans, less
current portion ¥ 71,625 ¥ 83,259 1.4% $ 769,830
The aggregate annual maturities of long-term loans at March 31,
2010 are as follows:
Amount
Millions of yen
Thousands of
U.S. dollars
2011 ¥24,571 $264,091
2012 11,017 118,411
2013 23,009 247,302
2014 5,023 53,988
2015 and after 8,002 86,006
Lease obligations
Lease obligations is included in other liabilities.
Millions of yen Interest
rate
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010 2010
Lease obligations,
due through 2026 ¥ 5,724 ¥ 5,511 $ 61,522
Less—Current portion
included in current
liabilities (1,594) (1,545) 4.7% (17,132)
Lease obligations, less
current portion ¥ 4,130 ¥ 3,965 4.7% $ 44,390
The aggregate annual maturities of long-term lease obligations at
March 31, 2010 are as follows:
Amount
Millions of yen
Thousands of
U.S. dollars
2011 ¥1,191 $12,801
2012 881 9,469
2013 588 6,320
2014 383 4,117
2015 and after 1,086 11,672
8. 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, 2010 and 2009
is as follows:
2010 2009
Statutory income tax rate 40.7% 40.7%
Increase (Decrease) in valuation allowance 1.8 6.4
Tax credits (0.7) (5.0)
Non-taxable income (1.0) (0.5)
Difference in statutory tax rates of foreign subsidiaries (8.5) (0.6)
Expenses not deductible for tax purposes 2.7 4.5
Amortization of goodwill 10.1 10.9
Impact of change in the recording standard of tax
effects of retained earnings in accordance with
revision of Corporate Tax Laws –(10.4)
Retained earnings of overseas subsidiaries 3.2 –
Ineffective portion of unrealized (gain) loss 5.9 5.5
Other, net (1.2) 2.7
Effective income tax rate per consolidated
statements of income 53.0% 54.3%
At March 31, 2010 and 2009, the 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
2010 2009 2010
Deferred tax assets:
Net operating tax loss
carried forward ¥ 36,116 ¥ 31,953 $ 388,177
Accrued retirement benefits 29,147 29,824 313,274
Elimination of unrealized
intercompany profits 4,761 9,064 51,172
Write-down of assets 4,345 5,122 46,700
Accrued bonuses 4,214 4,431 45,292
Depreciation and amortization 3,901 5,661 41,928
Reserve for discontinued
operations 2,407 6,025 25,871
Allowance for doubtful accounts 1,470 1,039 15,800
Tax effects related to investments 1,337 1,717 14,370
Accrued enterprise taxes 461 242 4,955
Other 10,733 10,295 115,359
Gross deferred tax assets 98,898 105,378 1,062,962
Valuation allowance (34,254) (33,335) (368,164)
Total deferred tax assets ¥ 64,644 ¥ 72,043 $ 694,798
Deferred tax liabilities:
Retained earnings of
overseas subsidiaries (3,417) (2,272) (36,726)
Gains on securities contributed to
employees’ retirement benefit trust (2,920) (2,973) (31,384)
Unrealized gains on securities (1,171) (440) (12,586)
Special tax-purpose reserve for
condensed booking of fixed assets (61) (558) (656)
Other (4,127) (1,703) (44,357)
Total deferred tax liabilities ¥(11,699) ¥ (7,948) $ (125,742)
Net deferred tax assets ¥ 52,945 ¥ 64,094 $ 569,056
KONICA MINOLTA HOLDINGS, INC. ANNUAL REPORT 2010 41