Konica Minolta 2010 Annual Report Download - page 44

Deferred tax liabilities related
to revaluation:
Deferred tax liabilities on
land revaluation ¥ (3,733) ¥ (3,889) $ (40,123)
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
2010 2009 2010
Current assets—
deferred tax assets ¥19,085 ¥25,326 $205,127
Fixed assets—
deferred tax assets 35,304 39,608 379,450
Current liabilities—
other current liabilities (720) (734) (7,739)
Long-term liabilities—
other long-term liabilities (724) (105) (7,782)
Net deferred tax assets ¥52,945 ¥64,094 $569,056
9. NET ASSETS
The Japanese Corporate Law became effective on May 1, 2006,
replacing the Commercial Code. Under Japanese laws and regula-
tions, the entire amount paid for new shares is required to be desig-
nated 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, 2010 and 2009 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, 2010 do not reflect current year-end
dividends in the amount of ¥3,976 million ($42,734 thousand) approved
by the Board of Directors, which will be payable in June 2010.
The amount available for dividends under the Japanese Corporate
Law is based on the amount recorded in the Company’s nonconsoli-
dated books of account in accordance with accounting principles
generally accepted in Japan.
On October 29, 2009, the Board of Directors approved cash divi-
dends to be paid to shareholders of record as of September 30, 2009,
totaling ¥3,977 million ($42,745 thousand), at a rate of ¥7.5 per share.
On May 13, 2010, the Board of Directors approved cash dividends to
be paid to shareholders of record as of March 31, 2010, totaling ¥3,976
million ($42,734 thousand), at a rate of ¥7.5 per share.
10. INVENTORIES
Inventories as of March 31, 2010 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Merchandise and finished goods ¥67,349 ¥ 87,796 $ 723,871
Work in process 15,541 19,003 167,036
Raw materials and supplies 15,373 22,360 165,230
Total ¥98,263 ¥129,160 $1,056,137
11. CONTINGENT LIABILITIES
The Companies were contingently liable at March 31, 2010 for loan and
lease guarantees of ¥2,011 million ($21,614 thousand) and at March
31, 2009 for loan and lease guarantees of ¥2,076 million.
12. COLLATERAL ASSETS
Assets pledged as collateral at March 31, 2010 for long-term debt
of ¥46 million ($494 thousand) are notes receivable of ¥696 million
($7,481 thousand). Assets pledged as collateral at March 31, 2009 for
short-term debt of ¥198 million and long-term debt of ¥146 million are
notes receivable of ¥753 million.
13. 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,
2010 and 2009 are ¥68,475 million ($735,974 thousand) and ¥81,904
million, respectively.
14. LOSS ON IMPAIRMENT OF FIXED ASSETS
The Companies have recognized loss on impairment of ¥2,561 million
($27,526 thousand) and ¥1,168 million for the following groups of
assets for the years ended March 31, 2010 and 2009, respectively:
Description Classification Amount
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Manufacturing
facilities of
plates for
printing
Buildings and
structures, Land,
Machinery and
equipment, Goodwill ¥1,214 ¥ – $13,048
Manufacturing
facilities of
microlenses for
mobile phones
Buildings and
structures, Land,
Others
1,040 778 11,178
Manufacturing
facilities and
sales offices
other than above
Machinery and
equipment,
Goodwill, Others
118 103 1,268
Rental assets Rental business-use
assets 71 149 763
Idle assets Buildings and
structures, Land,
Others 116 137 1,247
Total ¥2,561 ¥1,168 $27,526
(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.
42 KONICA MINOLTA HOLDINGS, INC. ANNUAL REPORT 2010