Konica Minolta 2012 Annual Report Download - page 35

34
7. SHORT-TERM DEBT, LONG-TERM DEBT AND
LEASE OBLIGATIONS
Short-term debt is primarily unsecured and generally represents bank
overdrafts. The amounts as of March 31, 2012 and 2011 were ¥32,913
million ($400,450 thousand) and ¥50,018 million, respectively, with the
weighted-average interest rates approximately 1.2% and 1.5%,
respectively.
Long-term debt as of March 31, 2012 and 2011, including the current
portion is as follows:
Bonds
Millions of yen
Thousands of
U.S. dollars
2012 2011 2012
Zero coupon convertible
unsecured bonds due in 2016
.. ¥ 40,000 ¥40,000 $ 486,677
1st Unsecured Bonds ............. 20,000 20,000 243,339
2nd Unsecured Bonds ............ 10,000 10,000 121,669
3rd Unsecured Bonds ............ 20,000 —243,339
4th Unsecured Bonds ............. 20,000 —243,339
¥110,000 ¥70,000 $1,338,362
Less—Current portion included
in current liabilities ................ ———
Bonds, less current portion ..... ¥110,000 ¥70,000 $1,338,362
The zero coupon convertible unsecured bonds due in 2016 are
bonds with share subscription rights which were 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
2012 2011 2012 2012
Loans principally from
banks, due through
2022 ...................... ¥ 85,019 ¥72,549 $1,034,420
Less—Current portion
included in current
liabilities ................ (11,994) (24,516) 1.1% (145,930)
Long-term loans, less
current portion ....... ¥ 73,025 ¥48,033 1.1% $888,490
The aggregate annual maturities of long-term loans at March 31,
2012 are as follows:
Amount
Fiscal year Millions of yen
Thousands of
U.S. dollars
2013 ........................................... ¥23,021 $280,095
2014 ........................................... 27,001 328,519
2015 ........................................... 5,000 60,835
2016 ........................................... 4,000 48,668
2017 and after ............................. 14,001 170,349
Lease obligations
Lease obligations are included in other liabilities.
Millions of yen
Interest
rate*
Thousands of
U.S. dollars
2012 2011 2012 2012
Lease obligations, due
through 2026. ......... ¥ 4,756 ¥ 5,019 — $ 57,866
Less—Current portion
included in current
liabilities ................ (1,417) (1,506) — (17,241)
Lease obligations, less
current portion ....... ¥ 3,338 ¥ 3,512 — $ 40,613
* Since the book value of lease obligations includes the equivalent of interest
payable, interest rates of lease obligations are not represented in the table above.
The aggregate annual maturities of long-term lease obligations at
March 31, 2012 are as follows:
Amount
Fiscal year Millions of yen
Thousands of
U.S. dollars
2013 .......................................... ¥1,214 $14,771
2014 .......................................... 919 11,181
2015 .......................................... 829 10,086
2016 .......................................... 158 1,922
2017 and after ............................ 216 2,628
8. INCOME TAXES
The income taxes of the Company and its domestic consolidated
subsidiaries comprise 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, 2012 and 2011
is as follows:
2012 2011
Statutory income tax rate .................................... 40.7% 40.7%
Increase in valuation allowance ........................... *(23.1) 17.8
Non-taxable income ......................................... (0.3) (1.1)
Difference in statutory tax rates of foreign subsidiaries . (7.9) (9.5)
Expenses not deductible for tax purposes ........... 2.1 2.1
Amortization of goodwill .................................... 10.8 11.7
Retained earnings of overseas subsidiaries .......... (7.1) 4.7
Ineffective portion of unrealized gain/loss ............. 0.4 5.4
Effect of liquidation of consolidated subsidiaries ..... *14.6 (70.8)
Expiration of net loss carried forward ................... 0.6 8.4
Effects of changes in corporate tax rates ............. 10.1 —
Other, net ........................................................ (3.3) (1.6)
Effective income tax rate per consolidated
statements of income ........................................ 37.6% 7.7%
* Increase in valuation allowance and Effect of liquidation of consolidated
subsidiaries for the year ended March 31, 2012 include the effect of expiration
of net loss carried forward by liquidation of a consolidated domestic
subsidiary. Excluding this effect, Increase in valuation allowance and Effect of
liquidation of consolidated subsidiaries for the year ended March 31, 2012 is
15.4% and (23.9%), respectively.