Ricoh 2005 Annual Report Download - page 47

The Japanese Commercial Code provides that an amount equal to at
least 10% of cash dividends and other distributions from retained
earnings paid by the Company and its domestic subsidiaries be
appropriated as a legal reserve. No further appropriation is required
when the total amount of the legal reserve and additional paid-in
capital equals 25% of common stock. The Japanese Commercial Code
also provides that to the extent that the sum of the additional paid-in
capital and the legal reserve exceeds 25% of the stated capital, the
amount of the excess ( if any) is available for appropriations by the
resolution of the shareholders. Certain foreign subsidiaries are also
required to appropriate their earnings to legal reserves under the laws of
the respective countries. Legal reserves included in retained earnings as
of March 31, 2004 and 2005 were ¥16,894 million and ¥17,053 million
( $159,374 thousand) , respectively, and are restricted from being used as
dividends.
Semiannual cash dividends are approved by the shareholders after the
end of each fiscal period or are declared by the Board of Directors after
the end of each interim six-month period. Such dividends are payable
to shareholders of record at the end of each such fiscal or interim six-
month period. At the general meeting to be held on June 28, 2005, the
shareholders will be asked to approve the declaration of a cash dividend
( ¥10 per share) on the common stock totaling ¥7,348 million ( $68,673
thousand) , which will be paid to shareholders of record as of March 31,
2005. The declaration of this dividend has not been reflected in the
consolidated financial statements as of March 31, 2005.
The Japanese Commercial Code provides that at least one-half of the
proceeds from shares issued is included in common stock. In
conformity therewith, the Company has divided the principal amount of
bonds converted into common stock between common stock and
additional paid-in capital.
The amount of retained earnings legally available for dividend
distribution is that recorded in the Company’s non-consolidated books
and amounted to ¥325,534 million ( $3,042,374 thousand) as of March
31, 2005.
To Our Shareholders
and Customers
Review of Operations
(General Information by Business Area)
Technology Corporate Social
Responsibility Environment Financial Section
46
ANNUAL REPORT 2005
1 2 . SHAREHOLDERS’ INVESTMENT
1 3 . OTHER COMPREHENSIVE INCOME ( LOSS)
Tax effects allocated to each component of other comprehensive income ( loss) are as follows:
Millions of Yen
Before-tax Tax Net-of-tax
amount expense amount
2003:
Foreign currency translation adjustments ¥ 181 ¥ 826 ¥ 1,007
Unrealized gains ( losses) on securities:
Unrealized holding gains ( losses) arising during the year (5,348) 2,065 ( 3,283)
Less- Reclassification adjustment for ( gains) losses realized in net income 2,234 (935) 1,299
Net unrealized gains ( losses) ( 3,114) 1,130 ( 1,984)
Unrealized gains ( losses) on derivatives:
Unrealized holding gains ( losses) arising during the year ( 634) 277 ( 357)
Less- Reclassification adjustment for ( gains) losses realized in net income 654 ( 268) 386
Net unrealized gains ( losses) 20 9 29
Minimum pension liability adjustment ( 80,220) 30,811 ( 49,409)
Other comprehensive income ( loss) ¥(83,133) ¥32,776 ¥( 50,357)
2004:
Foreign currency translation adjustments ¥ ( 6,727) ¥ 1,334 ¥ ( 5,393)
Unrealized gains ( losses) on securities:
Cumulative effect of accounting change (13,095) 5,722 (7,373)
Unrealized holding gains ( losses) arising during the year 7,688 ( 3,227) 4,461
Less- Reclassification adjustment for ( gains) losses realized in net income ( 2,766) 1,122 ( 1,644)
Net unrealized gains ( losses) ( 8,173) 3,617 ( 4,556)
Unrealized gains ( losses) on derivatives:
Unrealized holding gains ( losses) arising during the year ( 105) 42 ( 63)
Less- Reclassification adjustment for ( gains) losses realized in net income 368 ( 151) 217
Net unrealized gains ( losses) 263 ( 109) 154
Minimum pension liability adjustment 123,989 ( 49,733) 74,256
Other comprehensive income ( loss) ¥109,352 ¥( 44,891) ¥64,461