Konica Minolta 2012 Annual Report Download - page 36

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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 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, 2012 and 2011 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, 2012 do not refl ect current year-end
dividends in the amount of ¥3,977 million ($48,388 thousand) approved
by the Board of Directors, which will be payable in May 2012.
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 28, 2011, the Board of Directors approved cash
dividends to be paid to shareholders of record as of September 30,
2011, totaling ¥3,976 million ($48,376 thousand), at a rate of ¥7.5 per
share. On May 10, 2012, the Board of Directors approved cash
dividends to be paid to shareholders of record as of March 31, 2012,
totaling ¥3,977 million ($48,388 thousand), at a rate of ¥7.5 per share.
10. INVENTORIES
Inventories as of March 31, 2012 and 2011 are as follows:
Millions of yen
Thousands of
U.S. dollars
2012 2011 2012
Merchandise and fi nished goods ..
¥ 71,211 ¥ 69,804 $ 866,419
Work in process .........................
13,482 13,796 164,035
Raw materials and supplies ........
20,386 16,641 248,035
Total ...........................................
¥105,080 ¥100,243 $1,278,501
At March 31, 2012 and 2011, the signifi cant components of deferred tax
assets and liabilities in the consolidated fi nancial statements are as
follows:
Millions of yen
Thousands of
U.S. dollars
2012 2011 2012
Deferred tax assets:
Net operating tax loss
carried forward ................ ¥ 49,046 ¥ 37,411 $ 596,739
Accrued retirement benefi ts .. 22,348 24,473 271,907
Depreciation and
amortization .................... 3,928 4,346 47,792
Accrued bonuses .............. 3,614 4,018 43,971
Write-down of assets ......... 3,177 3,876 38,654
Elimination of unrealized
intercompany profi ts ......... 3,018 3,538 36,720
Tax effects related to
investments .................... 1,905 21,182 23,178
Allowance for doubtful
accounts ........................ 992 1,134 12,070
Accrued enterprise taxes .... 778 777 9,466
Reserve for discontinued
operations ...................... —26 —
Other ............................... 8,483 9,540 103,212
Gross deferred tax assets ... 97,292 110,325 1,183,745
Valuation allowance ........... (31,036) (38,416) (377,613)
Total deferred tax assets..... ¥ 66,255 ¥ 71,909 $ 806,120
Deferred tax liabilities:
Retained earnings of
overseas subsidiaries ....... ¥ (2,316) ¥ (4,748) $ (28,179)
Gains on securities
contributed to employees’
retirement benefi t trust ..... (2,134) (2,490) (25,964)
Unrealized gains on
securities ........................ (381) (710) (4,636)
Special tax-purpose reserve
for condensed booking of
fi x e d a s s e t s ..................... (27) (43) (329)
Other ............................... (3,741) (3,886) (45,516)
Total deferred tax liabilities .. ¥ (8,601) ¥(11,878) $ (104,648)
Net deferred tax assets ...... ¥ 57,654 ¥ 60,030 $ 701,472
Deferred tax liabilities
related to revaluation:
Deferred tax liabilities on
land revaluation ............... ¥ (3,269) ¥ (3,733) $ (39,774)
Net deferred tax assets are included in the following items in the
consolidated balance sheets:
Millions of yen
Thousands of
U.S. dollars
2012 2011 2012
Current assets–deferred tax
assets .............................. ¥20,100 ¥30,393 $244,555
Fixed assets–deferred tax
assets .............................. 38,281 30,404 465,762
Current liabilities–other
current liabilities ................ (606) (659) (7,373)
Long-term liabilities–other
long-term liabilities ............. (120) (108) (1,460)
Net deferred tax assets ......... ¥57,654 ¥60,030 $701,472
Adjustment of Deferred Tax Assets and Liabilities due to Changes
in Corporate Tax Rates
Following the enactment on December 2, 2011 of the “Act for Partial
Revision of the Income Tax Act, etc. for the Purpose of Creating
Taxation System Responding to Changes in Economic and Social
Structures” (Act No. 114 of 2011) and “Act on Special Measures for
Securing Financial Resources Necessary to Implement Measures for
Reconstruction following the Great East Japan Earthquake” (Act No. 117
of 2011), the corporate tax rate will be reduced and a special recovery
tax will be imposed effective from fi scal years beginning on or after April
1, 2012. In accordance with these changes, the effective statutory tax
rates will be reduced to 38.01% from 40.69% for the fi scal year
beginning on April 1, 2012 through the fi scal year beginning on April 1,
2014, and to 35.64% for fi scal years beginning on or after April 1, 2015.
As a result of these changes, net deferred tax assets and unrealized
losses on hedging derivatives, net of taxes as of March 31, 2012
decreased ¥3,276 million ($39,859 thousand) and ¥9 million ($110
thousand), respectively. Deferred income taxes for the years ended
March 31, 2012 and unrealized gains on securities, net of taxes as of
March 31, 2012 increased ¥3,320 million ($40,394 thousand) and ¥54
million ($657 thousand), respectively.