Ricoh 2006 Annual Report Download - page 48

47 ANNUAL REPORT 2006
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
am ount expense am ount
2004:
Foreign currency translation adjustm ents ¥ ( 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 adjustm ent 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 adjustm ent 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 com prehensive incom e ( loss) ¥109,352 ¥( 44,891) ¥64,461
2005:
Foreign currency translation adjustm ents ¥12,419 ¥( 3,378) ¥9,041
Unrealized gains ( losses) on securities:
Unrealized holding gains ( losses) arising during the year 1,024 ( 347) 677
Less- Reclassification adjustm ent for ( gains) losses realized in net income 148 ( 60) 88
Net unrealized gains ( losses) 1,172 ( 407) 765
Unrealized gains ( losses) on derivatives:
Unrealized holding gains ( losses) arising during the year 45 ( 17) 28
Less- Reclassification adjustm ent for ( gains) losses realized in net income 193 ( 80) 113
Net unrealized gains ( losses) 238 ( 97) 141
Minimum pension liability adjustment 156 ( 129) 27
Other com prehensive incom e ( loss) ¥13,985 ¥( 4,011) ¥9,974
The Japanese Com mercial Code provides that an am ount 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 am ount of the legal reserve and additional paid-in
capital equals 25% of com mon stock. The Japanese Com mercial 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, 2005 and 2006 were ¥17,053 million and ¥17,156 m illion
( $146,632 thousand) , respectively, and are restricted from being used as
dividends.
The Corporation Law of Japan ( “the Law”) , which has been in force
since May 1, 2006, requires a company to obtain the approval of
shareholders for transferring on am ount between capital and additional
paid-in capital. The Law also perm its a com pany to transfer an am ount
of com mon stock or additional paid-in capital to retained earnings in
principle upon approval of shareholders.
Sem iannual 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-m onth period. Such dividends are payable
to shareholders of record at the end of each such fiscal or interim six-
month period. At the general m eeting to be held on June 28, 2006, the
shareholders will be asked to approve the declaration of a cash dividend
( ¥12 per share) on the com mon stock totaling ¥8,764 million ( $74,906
thousand) , which will be paid to shareholders of record as of March 31,
2006. The declaration of this dividend has not been reflected in the
consolidated financial statements as of March 31, 2006.
The amount of retained earnings legally available for dividend
distribution is that recorded in the Company’s non-consolidated books
and am ounted to ¥354,858 million ( $3,032,974 thousand) as of March
31, 2006.
1 2 . SHAREHOLDERS’ INVESTMENT