Konica Minolta 2013 Annual Report Download - page 39

38
At March 31, 2013 and 2012, 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
2013 2012 2013
Deferred tax assets:
Net operating tax loss
carried forward ................ ¥ 50,283 ¥ 49,046 $ 534,641
Accrued retirement benefi ts ... 22,099 22,348 234,971
Depreciation and
amortization .................... 4,323 3,928 45,965
Write-down of assets ......... 3,460 3,177 36,789
Accrued bonuses .............. 3,405 3,614 36,204
Elimination of unrealized
intercompany profi ts ......... 3,009 3,018 31,994
Tax effects related to
investments .................... 1,866 1,905 19,841
Accrued enterprise taxes .... 975 778 10,367
Allowance for doubtful
accounts ........................ 966 992 10,271
Other ............................... 10,687 8,483 113,631
Gross deferred tax assets ... 101,077 97,292 1,074,716
Valuation allowance ........... (37,682) (31,036) (400,659)
Total deferred tax assets..... ¥ 63,395 ¥ 66,255 $ 674,056
Deferred tax liabilities:
Retained earnings of
overseas subsidiaries ....... (3,226) (2,316) (34,301)
Intangible assets recognized
in business combinations ... (2,859) — (30,399)
Gains on securities
contributed to employees’
retirement benefi t trust ..... (2,083) (2,134) (22,148)
Unrealized gains on
securities ........................ (1,413) (381) (15,024)
Special tax-purpose
reserve for condensed
booking of fi xed assets ..... (15) (27) (159)
Other ............................... (3,948) (3,741) (41,978)
Total deferred tax liabilities .. ¥ (13,546) ¥ (8,601) $ (144,030)
Net deferred tax assets ...... ¥ 49,849 ¥ 57,654 $ 530,027
Deferred tax liabilities
related to revaluation:
Deferred tax liabilities on
land revaluation ............... ¥ (3,269) ¥ (3,269) $ (34,758)
Net deferred tax assets are included in the following items in the
consolidated balance sheets:
Millions of yen
Thousands of
U.S. dollars
2013 2012 2013
Current assets—deferred tax
assets .............................. ¥20,259 ¥20,100 $215,407
Fixed assets—deferred tax
assets .............................. 33,000 38,281 350,877
Current liabilities—other
current liabilities ................ (711) (606) (7,560)
Long-term liabilities—other
long-term liabilities ............. (2,699) (120) (28,698)
Net deferred tax assets ........ ¥49,849 ¥57,654 $530,027
9. Acquisitions
Charterhouse PM Limited
In December 2012, the Companies acquired a 100% stake of
Charterhouse PM Limited (Charterhouse), a leading European marketing
services production company, through Konica Minolta Business
Solutions Europe GmbH, a wholly owned subsidiary of the Company.
The acquisition provides the Companies with know-how in marketing
and consulting for document management, as well as Charterhouse’s
European sales network. The Companies aim to strengthen their
marketing capabilities to offer practical solutions to customers’
challenges and expand new services. The Companies have recognized
the acquisition cost of ¥3,959 million ($42,095 thousand). The results of
Charterhouse for the period from December 1, 2012 to March 31, 2013,
are recognized in the consolidated fi nancial statements.
The Companies have recognized goodwill of ¥4,878 million ($51,866
thousand), which is amortized on a straight-line basis over its estimated
useful life (14 years). The amounts recognized in the consolidated
fi nancial statements are provisional based on information currently
available to the Companies and certain assumptions that the
Companies consider to be reasonable, because the purchase price
allocation is incomplete.
(1) Assets acquired and liabilities assumed at the date of business
combination
Millions of yen
Thousands of
U.S. dollars
2013 2013
Current assets ..................................... ¥ 3,635 $ 38,650
Long-term assets ................................. 3,013 32,036
Total assets ......................................... ¥ 6,649 $ 70,696
Current liabilities ................................... ¥(6,891) $(73,270)
Long-term liabilities............................... (676) (7,188)
Total liabilities....................................... ¥(7,567) $(80,457)
(2) Amounts and amortization period of major items allocated to
intangibles recognized separately from goodwill
Major items allocated to
intangibles recognized
separately from goodwill
Amounts Amortization
period
weighted
average
Millions of yen
Thousands of
U.S. dollars
2013 2013
Customer-related
assets ........................ ¥2,819 $29,973 11 years
Total intangible assets .... ¥2,819 $29,973 11 years
(3) Allocation of acquisition costs
Allocation of acquisition costs was not completed since the assessment
of identifi able assets and liabilities was not fi nished at the end of the
fi s c a l y e a r .
(4) Approximate effects on the consolidated statements of income
for the year ended March 31, 2013 assuming that the business
combination was completed on April 1, 2012.
Millions of yen
Thousands of
U.S. dollars
2013 2013
Net sales ............................................. ¥8,603 $91,473
Operating profi t .................................... (239) (2,541)
Net income for the year ......................... (444) (4,721)