Annual Report 2007 - Komatsu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other income (expenses) for the years ended March 31, 2007, 2006 and 2005, were comprised of the following:
Thousands of
Millions of yen
U.S. dollars
2007 2006 2005 2007
Interest income–
Installment receivables ¥ 945 ¥ 1,112 ¥ 1,511 $ 8,008
Other 6,729 5,028 3,142 57,026
Dividends 858 684 485 7,271
Interest expense (15,485) (12,208) (10,611) (131,229)
Net gain (loss) from sale of investment securities 344 18 (126) 2,915
Exchange gain or loss, net (903) (1,941) 2,318 (7,653)
Other (738) (342) (712) (6,253)
Total ¥ (8,250) ¥ (7,649) ¥ (3,993) $ (69,915)
25. Valuation and Qualifying Accounts
Valuation and qualifying accounts deducted from assets to which they apply:
Millions of yen
Thousands of
U.S. dollars
Allowance for doubtful receivables 2007 2006 2005 2007
Balance at beginning of fiscal period ¥11,786 ¥14,664 ¥15,222 $ 99,881
Additions
Charged to costs and expenses 2,653 160 3,175 22,483
Deductions 2,631 3,038 3,733 22,296
Balance at end of fiscal period ¥11,808 ¥11,786 ¥14,664 $100,068
Deductions were principally uncollectible accounts and notes charged to the allowance.
Millions of yen
Thousands of
U.S. dollars
Valuation allowance for deferred tax assets 2007 2006 2005 2007
Balance at beginning of fiscal period ¥35,490 ¥56,608 ¥50,273 $300,763
Additions
Charged to costs and expenses 1,715 8,546 6,829 14,534
Charged to other accounts 341 3,129 4,649 2,889
Deductions 6,667 32,793 5,143 56,500
Balance at end of fiscal period ¥30,879 ¥35,490 ¥56,608 $261,686
Deductions were principally realization or expiration of net operating loss carryforwards.
26. Subsequent Event
Komatsu Zenoah Co., a subsidiary of the Company, split off its
outdoor power equipment (OPE) business, and Zenoah Co.,
Ltd., a subsidiary of Komatsu Zenoah Co., took over the OPE
business. All shares of Zenoah Co., Ltd. were sold to a Japanese
subsidiary of Husqvarna AB of Sweden on April 2, 2007. After
the sale of the OPE business which has few synergy effects with
the construction and mining equipment business, Komatsu is
better positioned to further improve management efficiency.
Name and Line of Business of the Sub-Subsidiary Sold
Name:
Zenoah Co., Ltd.
Line of Business: Manufacture and sale of
outdoor power equipment
Name of the Acquisition Company
Name:
Husqvarna Japan Ltd.
Sale Price
Sale Price:
¥18,250 million
Gain on sale
Gain on sale (Pre-Tax): Approximately ¥8.4 billion
87 Annual Report 2007