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To Our Shareholders and
Customers
General Information
by Business Area Ricoh's Core Values Solutions Environmental Financial Section
40
ANNUAL REPORT 2006
8 . INCOME TAXES
Incom e before incom e taxes, m inority interests, equity in earnings of affiliates and cumulative effect of accounting change and provision for incom e
taxes for the years ended March 31, 2004, 2005 and 2006 are as follows:
Thousands of
Millions of Yen U.S. Dollars
2004 2005
2006 2006
Incom e before incom e taxes, m inority interests, equity in earnings of affiliates
and cum ulative effect of accounting change:
Domestic ¥ 98,162 ¥ 88,562
¥ 109,218 $ 933,487
Foreign 44,901 46,821
46,981 401,547
¥143,063 ¥135,383
¥ 156,199 $1,335,034
Provision for income taxes-
Current:
Domestic ¥ 38,908 ¥ 28,081
¥ 43,584 $ 372,513
Foreign 14,395 11,200
17,273 147,632
53,303 39,281
60,857 520,145
Deferred:
Domestic 1,951 8,737
(780) (6,667)
Foreign 1,387 2,616
(2,514) (21,487)
3,338 11,353
(3,294) (28,154)
Consolidated provision for incom e taxes ¥ 56,641 ¥ 50,634
¥ 57,563 $ 491,991
Total incom e taxes are allocated as follows:
Thousands of
Millions of Yen U.S. Dollars
2004 2005
2006 2006
Provision for income taxes ¥ 56,641 ¥ 50,634
¥ 57,563 $491,991
Shareholders’ investm ent:
Foreign currency translation adjustm ents ( 1,334) 3,378
1,266 10,821
Unrealized gains ( losses) on securities ( 3,617) 407
2,472 21,128
Unrealized gains ( losses) on derivatives 109 97
27 231
Minimum pension liability adjustment 49,733 129
5,195 44,402
Cumulative effect of accounting change 5,722 –
– –
¥ 107,254 ¥ 54,645
¥ 66,523 $568,573
The changes in the carrying am ounts of goodwill for the year ended
March 31, 2005 and 2006, were as follows:
Thousands of
Millions of Yen U.S. Dollars
2005
2006 2006
Balance at beginning of year ¥25,298
¥47,502 $406,000
Goodwill acquired during the year 21,722
1,783 15,239
Foreign exchange im pact 482
2,649 22,641
Balance at end of year ¥47,502
¥51,934 $443,880
As of March 31, 2006, most of the carrying value of goodwill was
allocated to the Office Solutions Segm ent.
Gross carrying am ount of software was increased for the year ended
March 31, 2006 mainly due to the capitalization of costs to develop
back-office information system s.
The aggregate am ortization expense of other intangible assets subject to
amortization for the years ended March 31, 2004, 2005 and 2006 was
¥9,284 million, ¥11,405 million and ¥ 16,992million ( $145,231
thousand) . The future am ortization expense for each of the next five
years relating to intangible assets currently recorded in the consolidated
balance sheets is estim ated to be the following at March 31, 2006:
Thousands of
Years ending March 31 Millions of Yen U.S. Dollars
2007 ¥17,449 $149,137
2008 14,984 128,068
2009 9,361 80,009
2010 4,838 41,350
2011 2,210 18,889