Annual Report 2007 - Komatsu

Notes to Consolidated Financial Statements
Komatsu Ltd. and Consolidated Subsidiaries
Transfers between segments are made at estimated arm’slength
prices. Segment profit represents net sales less cost of
sales and selling, general and administrative expenses.
Identifiable assets are those assets used in the operations of
each segment. Unallocated corporate assets consist primarily of
cash and cash equivalents and marketable investment securities
maintained for general corporate purposes. Depreciation and
amortization for the years ended March 31, 2007, 2006 and
2005 do not include amortization of long-term prepaid expenses
of ¥913 million ($7,737 thousand), ¥1,225 million and ¥1,416
million, and do not include those for discontinued operations of
¥6,375 million ($54,026 thousand), ¥14,013 million and ¥11,922
million. The term “Capital investment” should be distinguished
from the term “Capital expenditures” as used in the consolidated
statements of cash flows. The term “Capital investment” is
defined to refer to the acquisition of property, plant and equipment
including properties under capital leases on an accrual
basis which reflects the effects of timing differences between
acquisition dates and payment dates.
Certain amounts in the segment information do not reflect
discontinued operations. Accordingly, segment information for
the years ended March 31, 2006 and 2005 has been reclassified
to conform to the presentation for the year ended March 31,
2007. Industrial Machinery, Vehicles and Others segment does
not include net sales to customers of discontinued operations
amounting to ¥22,067 million ($187,008 thousand), ¥20,663
million and ¥17,968 million and segment profit amounting to
¥1,730 million ($14,661 thousand), ¥1,753 million and ¥1,417
million for the years ended March 31, 2007, 2006 and 2005, respectively.
Electronics segment does not include net sales to
customers of discontinued operations amounting to ¥41,349
million ($350,415 thousand), ¥69,166 million and ¥60,749 million
and segment profit amounting to ¥9,288 million ($78,712
thousand), ¥10,199 million and ¥6,305 million for the years
ended March 31, 2007, 2006 and 2005, respectively.
Geographic information:
Net sales to customers recognized by sales destination for the years ended March 31, 2007, 2006 and 2005 are as follows:
Thousands of
Millions of yen
U.S. dollars
2007 2006 2005 2007
Net sales:
Japan ¥ 487,103 ¥ 482,825 ¥ 479,007 $ 4,127,992
The Americas 537,836 477,718 355,561 4,557,932
Europe and CIS 324,071 232,329 195,281 2,746,364
China 129,443 89,667 51,987 1,096,975
Asia (excluding Japan, China) and Oceania 252,768 213,719 190,458 2,142,102
Middle East and Africa 162,122 115,882 83,777 1,373,915
Consolidated net sales ¥1,893,343 ¥1,612,140 ¥1,356,071 $16,045,280
Net sales recognized by geographic origin and property, plant and equipment at March 31, 2007, 2006 and 2005, and for the
years then ended are as follows:
Millions of yen
No individual country within Europe or other areas had a material impact on net sales or property, plant and equipment.
There were no sales to a single major external customer for the years ended March 31, 2007, 2006 and 2005.
Thousands of
U.S. dollars
2007 2006 2005 2007
Net sales:
Japan ¥ 739,206 ¥ 682,260 ¥ 628,304 $ 6,264,458
U.S.A. 527,680 465,726 356,063 4,471,864
Europe 298,509 212,844 175,678 2,529,737
Others 327,948 251,310 196,026 2,779,221
Total ¥1,893,343 ¥1,612,140 ¥1,356,071 $16,045,280
Property, plant and equipment:
Japan ¥ 282,050 ¥ 298,807 ¥ 275,065 $ 2,390,254
U.S.A. 60,609 48,871 50,451 513,636
Europe 25,808 19,563 17,660 218,712
Others 19,926 33,426 23,484 168,864
Total ¥ 388,393 ¥ 400,667 ¥ 366,660 $ 3,291,466
84 Annual Report 2007