NO BORDER

Thousands of
Millions of yen U.S. dollars (Note 1)
2006 2005 2006
LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings (Note 8)
¥ 2,854
¥ 3,038
$ 24,295
Payables:
Trade notes
756
837
6,436
Trade accounts
33,911
32,846
288,678
Other
20,107
20,557
171,167
Accrued expenses
7,460
7,325
63,506
Accrued income taxes (Note 10)
8,186
7,565
69,686
Other current liabilities (Note 10)
4,818
4,648
41,014
Total current liabilities
78,092
76,816
664,782
Long-term liabilities:
Deferred income taxes on land revaluation (Note 7)
3,511
—
29,889
Accrued retirement benefits to employees (Note 9)
11,660
13,580
99,259
Accrued retirement benefits to directors and statutory auditors
1,800
5,517
15,323
Other long-term liabilities (Note 10)
2,004
317
17,060
Total long-term liabilities
18,975
19,414
161,531
Minority interests
6,535
6,736
55,631
Contingent liability (Note 17)
Shareholders’ equity (Note 11):
Common stock
Authorized—500,000,000 shares;
Issued—127,463,685 shares at March 31, 2006 and 2005
25,123
25,123
213,867
Capital surplus
48,385
48,370
411,893
Retained earnings (Note 19)
203,797
193,927
1,734,886
Land revaluation reserve (Note 7)
(7,568)
(2,359)
(64,425)
Net unrealized holding gain on securities
9,899
6,114
84,268
Translation adjustments
242
(3,282)
2,060
Less: Treasury stock, at cost—6,061,522 shares at March 31, 2006
4,033,982 shares at March 31, 2005
(16,679)
(9,754)
(141,985)
Total shareholders’ equity
263,199
258,139
2,240,564
Total liabilities, minority interests and shareholders’ equity
¥ 366,801
¥ 361,105
$ 3,122,508
See accompanying notes to consolidated financial statements.
ANNUAL REPORT 2006
31