Pentax 2006 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2006 Pentax annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 77

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77


A reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the accompanying
consolidated statements of income for the years ended March 31, 2006, 2005 and 2004 was as follows:
2006 2005 2004
Normal effective statutory tax rate 40.4% 40.4% 41.7%
Lower or exemption of income tax rates applicable to income in certain foreign countries (18.2) (13.8) (12.4)
Expenses not permanently deductible for income tax purposes 0.4 0.4 0.7
Per capita portion 0.1 0.1 0.2
Non-taxable dividend income (1.8) (2.6) (2.1)
Intercompany cash dividend and transactions 1.8 0.8 1.6
Equity in earnings of associated companies (0.5) (1.8) (1.2)
Special income tax credit on experiment and research expenses (0.5) (0.8) (1.1)
Other—net 0.6 0.3 1.1
Actual effective tax rate 22.3% 23.0% 28.5%
Research and development expenses charged to income for
the years ended March 31, 2006, 2005 and 2004 were
¥14,135 million ($120,329 thousand), ¥10,957 million and ¥9,847
million, respectively.
No. 11 RESEARCH AND DEVELOPMENT EXPENSES
Pro forma information of leased property such as acquisition cost, accumulated depreciation, accumulated impairment loss, obligation
under finance lease, depreciation expense of finance leases that do not transfer ownership of the leased property to the lessee on an “as if
capitalized” basis for the years ended March 31, 2006 and 2005 was as follows:
Millions of Yen Thousands of U.S. Dollars
2006 2005 2006
Machinery Furniture Machinery Furniture Machinery Furniture
and and and and and and
Vehicles Equipment Total Vehicles Equipment Total Vehicles Equipment Total
Acquisition cost ¥3,485 ¥2,084 ¥5,569 ¥3,796 ¥2,409 ¥6,205 $29,667 $17,741 $47,408
Accumulated depreciation 2,398 1,138 3,536 2,191 1,667 3,858 20,414 9,687 30,101
Accumulated impairment loss ——— —203 203 ———
Net leased property ¥1,087 ¥ 946 ¥2,033 ¥1,605 ¥ 539 ¥2,144 $9,253 $ 8,054 $17,307
The imputed interest expense portion as lessee is included in the above acquisition cost.
The Group leases certain machinery, computer equipment, office
space and other assets. Total rental expenses including lease
payments for the years ended March 31, 2006, 2005 and 2004
were ¥5,602 million ($47,689 thousand), ¥5,802 million and
¥6,748 million, respectively. For the year ended March 31, 2004,
the Group recorded an impairment loss of ¥276 million on certain
leased property held under finance leases that do not transfer
ownership, and an allowance for impairment loss on leased
property, which is included in current liabilities.
No. 12 LEASES