Annual Report 2007 - Komatsu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Thousands of U.S. dollars
Pretax Tax (expense) Net of tax
amount or benefit amount
2007:
Foreign currency translation adjustments $ 96,983 $ — $ 96,983
Net unrealized holding gains on securities available for sale:
Unrealized holding gains or (losses) arising during the year 42,492 (16,949) 25,543
Less: reclassification adjustment for (gains) or losses included in net income (1,686) 695 (991)
Net unrealized gains (losses) 40,806 (16,254) 24,552
Pension liability adjustments 83,898 (34,271) 49,627
Net unrealized holding gains (losses) on derivative instruments:
Changes in fair value of derivatives (7,000) 2,856 (4,144)
Net (gains) or losses reclassified into earnings 7,940 (3,237) 4,703
Net unrealized gains (losses) 940 (381) 559
Other comprehensive income (loss) $222,627 $(50,906) $171,721
16. Income Taxes
Income from continuing operations before income taxes, minority interests and equity in earnings of affiliated companies and income
taxes for the years ended March 31, 2007, 2006 and 2005, were as follows:
Thousands of
Millions of yen
U.S. dollars
2007 2006 2005 2007
Income from continuing operations before income taxes , minority interests
and equity in earnings of affiliated companies:
Domestic ¥111,220 ¥ 56,082 ¥ 46,340 $ 942,542
Foreign 125,271 99,697 45,529 1,061,619
¥236,491 ¥155,779 ¥ 91,869 $2,004,161
Income taxes:
Current—
Domestic ¥ 44,295 ¥ 29,740 ¥ 7,343 $ 375,381
Foreign 31,807 16,011 8,713 269,551
76,102 45,751 16,056 644,932
Deferred—
Domestic 681 2,287 15,109 5,771
Foreign 2,962 (4,068) 3,120 25,102
3,643 (1,781) 18,229 30,873
Total ¥ 79,745 ¥ 43,970 ¥ 34,285 $ 675,805
Total income taxes recognized for the years ended March 31, 2007, 2006 and 2005 were applicable to the following:
Millions of yen
Thousands of
U.S. dollars
2007 2006 2005 2007
Income from continuing operations ¥ 79,745 ¥ 43,970 ¥ 34,285 $675,805
Income from discontinued operations 14,566 3,051 1,759 123,441
Other comprehensive income (loss):
Net unrealized holding gains on securities available for sale 1,918 12,500 2,179 16,254
Pension liability adjustments 4,044 5,490 (3,660) 34,271
Net unrealized holding gains (losses) on derivative instruments 45 215 7 381
Amount credited directly to accumulated other comprehensive
income (loss) upon adoption of SFAS No. 158 (5,560) — — (47,119)
Total income taxes ¥ 94,758 ¥ 65,226 ¥ 34,570 $803,033
77 Annual Report 2007