Ricoh 2007 Annual Report Download - page 49

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48
ANNUAL REPORT 2007
To Our Shareholders and
Customers
Highlights
Corporate Governance Business Strategy
CSR
Environmental Management
Financial Section Brand Strategy
Total income taxes are allocated as follows:
Thousands of
Millions of Yen U.S. Dollars
2005 2006
2007 2007
Provision for income taxes relating to continuing operations ¥ 48,840 ¥ 56,165
¥ 64,326 $545,136
Provision for income taxes relating to discontinued operations 1,794 1,398
4,196 35,559
Shareholders’ investment:
Foreign currency translation adjustments 3,378 1,266
(50) (424)
Unrealized gains on securities 407 2,472
25 212
Unrealized gains (losses) on derivatives 97 27
(128) (1,085)
Minimum pension liability adjustment 129 5,195
693 5,873
Adjustment to initially apply SFAS 158 – –
1,066 9,034
¥ 54,645 ¥ 66,523
¥ 70,128 $594,305
The Company and its domestic subsidiaries are subject to a National Corporate tax of 30%, an inhabitant tax of approximately 6% and a deductible
Enterprise tax approximately 8%, which in the aggregate resulted in the normal statutory tax rate of approximately 41%. The normal statutory tax
rate differs from the effective tax rate for the years ended March 31, 2005, 2006 and 2007 as a result of the following:
2005 2006
2007
Normal statutory tax rate 41% 41%
41%
Nondeductible expenses 1 0
0
Tax benefits not recognized on operating losses of certain consolidated subsidiaries 1 2
1
Utilization of net operating loss carryforward not previously recognized (3) (2)
(1)
Tax credit for increased research and development expense (3) (4)
(3)
Other, net (0) (0)
(1)
Effective tax rate 37% 37%
37%
Nondeductible expenses include directors’ bonuses and entertainment expenses.
The tax effects of temporary differences and carryforwards giving rise to the consolidated deferred tax assets and liabilities as of March 31, 2006 and
2007 are as follows:
Thousands of
Millions of Yen U.S. Dollars
2006
2007 2007
Assets:
Accrued expenses ¥ 21,417
¥ 22,622 $191,712
Property, plant and equipment 3,014
7,197 60,992
Accrued pension and severance costs 30,888
25,139 213,042
Net operating loss carryforwards 4,941
9,574 81,136
Other 29,601
32,813 278,076
89,861
97,345 824,958
Less- Valuation allowance (8,197)
(12,399) (105,076)
¥ 81,664
¥ 84,946 $ 719,881
Liabilities:
Sales-type leases ¥ (6,460)
$(6,463) $ (54,771)
Undistributed earnings of foreign subsidiaries and affiliates, etc. (18,618)
(21,170) (179,407)
Net unrealized holding gains on available-for-sale securities (6,613)
(5,664) (48,000)
Basis difference of acquired intangible assets (9,372)
(8,358) (70,831)
Other (13,498)
(7,506) (63,610)
¥(54,561)
¥ (49,161) $(416,619)
Net deferred tax assets ¥ 27,103
¥ 35,785 $ 303,263