SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 20-F/A(Amendment No. 1)
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGEACT OF 1934
OR

⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended March 31, 2007
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
Date of event requiring this shell company report
For the transition period fromtoCommission file number: 1-7952

Kyocera Kabushiki Kaisha(Exact name of Registrant as specified in its charter)

Kyocera Corporation(Translation of Registrant’s name into English)

Japan

6, Takeda, Tobadono-cho, Fushimi-ku,
Kyoto 612-8501, Japan(Jurisdiction of incorporation or organization)(Address of principal executive offices)

Securities registered or to be registered pursuant to Section 12(b) of the Act.
Title of Each Class

Name of Each Exchange On Which Registered

Common Stock (“Shares”)*

New York Stock Exchange

Securities registered or to be registered pursuant to Section 12(g) of the Act.
None
(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
None
(Title of Class)Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of theperiod covered by the annual report.
As of March 31, 2007, 188,649,089 shares of common stock were outstanding, comprised of 184,820,723 Shares and 3,828,366
American Depositary Shares (equivalent to 3,828,366 Shares).
Act.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Yes
No

⌧

If this report is an annual transition report, indicate by check mark if the registrant is not required to file reports pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes
No⌧

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to filesuch reports), and (2) has been subject to such filing requirements for the past 90 days. Yes
No⌧

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See
definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check One):
Large accelerated filer
Accelerated filer
Non-accelerated filer⌧

Indicate by check mark which financial statement item the Registrant has elected to follow.

Item 17

Item 18⌧

If this is an annual report, indicated by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes
No⌧* Not for trading, but only in connection with the registration of the American Depositary Shares, each representing one share ofCommon Stock.

TABLE OF CONTENTS
Page

Explanatory Note
Item 15. Controls and Procedures
Item 18. Financial Statements
Item 19. Exhibits

1
2
3
4

Explanatory Note
On July 5, 2007, Kyocera filed with the Securities and Exchange Commission its annual report on Form 20-F for the year ended
March 31, 2007 (the “Original Form 20-F”), which included its consolidated balance sheets as of March 31, 2006 and 2007 and its
consolidated statements of income, shareholders’ equity and cash flows for the years ended March 31, 2005, 2006 and 2007 together
with the report of MISUZU PricewaterhouseCoopers. On June 27, 2007, Kyocera appointed Kyoto Audit Corporation as its
accounting auditor under the Corporation Act of Japan and as its independent registered accounting firm for purposes of its
consolidated financial statements filed with the Securities and Exchange Commission. Kyocera is filing this Form 20-F/A(Amendment No. 1) to re-file its consolidated financial statements for the year ended March 31, 2007 together with the report of
Kyoto Audit Corporation thereon. The consolidated financial statements being re-filed with this Form 20-F/A (Amendment No. 1) arein all other respects identical to those previously filed as part of the Original Form 20-F and do not reflect any subsequent information
or events other than the re-filing of the consolidated financial statements and audit report of Kyoto Audit Corporation thereon. This
Form 20-F/A (Amendment No. 1) also includes a report of Kyoto Audit Corporation with respect to the evaluation by Kyocera’s
management of the effectiveness of Kyocera’s internal control over financial reporting as of March 31, 2007.
There are no further changes to the Original Form 20-F. All information in this Form 20-F/A (Amendment No. 1) is as of July 5, 2007
and does not reflect any subsequent information or events other than the re-filing of the consolidated financial statements and audit
report of Kyoto Audit Corporation thereon and the inclusion of the report of Kyoto Audit Corporation with respect to the evaluation
by Kyocera’s management of the effectiveness of Kyocera’s internal control over financial reporting referred to above.
1

Item 15. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Kyocera’s management, with the participation of its principal executive and principal financial officers, evaluated the effectiveness ofKyocera’s disclosure controls and procedures (as defined in Rules 13a-15(e) under the U.S. Securities Exchange Act of 1934) as ofMarch 31, 2007. Based on that evaluation, Kyocera’s principal executive and principal financial officers concluded that the disclosure
controls and procedures were effective as of that date.
Management’s Report on Internal Control Over Financial Reporting
Kyocera’s management is responsible for establishing and maintaining adequate internal control over financial reporting (as definedin Rules 13a-15(f) under the U.S. Securities Exchange Act of 1934). Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject tothe risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies orprocedures may deteriorate.
Kyocera’s management, with the participation of its principal executive and principal financial officers, evaluated the effectiveness ofKyocera’s internal control over financial reporting using the criteria set forth in Internal Control – Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this evaluation, Kyocera’s management
concluded that Kyocera’s internal control over financial reporting was effective as of March 31, 2007. Kyocera’s independent
registered public accounting firm, Kyoto Audit Corporation, has issued an audit report on management’s assessment of thecompany’s internal control over financial reporting, which appears on page F-1 of this Form 20-F/A (Amendment No. 1).
Evaluation of Changes in Internal Control Over Financial Reporting
Kyocera’s management, with the participation of its principal executive and principal financial officers, also carried out an evaluationof changes in our internal control over financial reporting during the year ended March 31, 2007. Based upon that evaluation, there
was no change in Kyocera’s internal control over financial reporting that occurred during the year ended March 31, 2007 thatmaterially affected, or is reasonably likely to materially affect, Kyocera’s internal control over financial reporting.
2

Item 18. Financial Statements
The information required by this item is set forth beginning on page F-1 of this Form 20-F/A (Amendment No. 1).
Description

Page(1) Report of Independent Registered Public Accounting Firm related to the Consolidated Financial Statements listed
below(2) Consolidated Balance Sheets at March 31, 2006 and 2007
(3) Consolidated Statements of Income for the years ended March 31, 2005, 2006 and 2007

F-1
F-2 & F-3
F-4(4) Consolidated Statements of Stockholders’ Equity for the years ended March 31, 2005, 2006 and 2007

F-5

(5) Consolidated Statements of Cash Flows for the years ended March 31, 2005, 2006 and 2007

F-6

(6) Notes to the Consolidated Financial Statements(7) SCHEDULE II. Valuation and Qualifying Accounts for the years ended March 31, 2005, 2006 and 2007
3

F-7 to F-35
F-36

Item 19. Exhibits
Exhibit
NumberDescription

1.1

Articles of Incorporation (English translation) (incorporated by reference to the Registrant’s annual report on Form 20-F
filed on June 29, 2006)

1.2

Share Handling Regulations of the Registrant (English translation) (incorporated by reference to the Registrant’s annual
report on Form 20-F filed on June 29, 2006)

1.3

Regulations of the Board of Directors of the Registrant (English translation) (incorporated by reference to theRegistrant’s annual report on Form 20-F filed on June 29, 2006)

1.4

Regulations of the Board of Corporate Auditors of the Registrant (English translation) (incorporated by reference to theRegistrant’s annual report on Form 20-F filed on July 5, 2007)

2.1

Specimen common stock certificate of the Registrant (incorporated by reference to the Registrant’s annual report on
Form 20-F filed on September 24, 2001)

2.2

Deposit Agreement, dated as of June 29, 1998 among Kyocera Corporation, Citibank N.A. as Depositary and all owners
and holders from time to time of American Depositary Receipts, including the form of American Depositary Receipt, as
amended by Amendment No.1 thereto, dated as of January 5, 1999 (incorporated by reference to the Registrant’s annual
report on Form 20-F filed on September 24, 2001)

8.1

List of Significant Subsidiaries (incorporated by reference to the Registrant’s annual report on Form 20-F filed on July
5, 2007)

11.1

Code of Ethics (incorporated by reference to the Registrant’s annual report on Form 20-F filed on July 5, 2007)

12.1

Certification of the principal executive officer of the Registrant required by Rule 13a-14(a)12.2

Certification of the principal financial officer of the Registrant required by Rule 13a-14(a)13.1

Certification of the principal executive officer of the Registrant required by Rule 13a-14(b) and Section 1350 of Chapter
63 of Title 18 of the United States Code

13.2

Certification of the principal financial officer of the Registrant required by Rule 13a-14(b) and Section 1350 of Chapter
63 of Title 18 of the United States Code

15.1

Consent of Kyoto Audit Corporation with respect to its report on the audit of the financial statements included in thisForm 20-F/A

Kyocera has not included as exhibits certain instruments with respect to its long-term debt, the amount of debt authorized under eachof which does not exceed 10% of its total assets, and it agrees to furnish a copy of any such instrument to the Securities and Exchange
Commission upon request.
4

Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders ofKyocera Corporation
We have completed an integrated audit of Kyocera Corporation’s 2007 consolidated financial statements and of its internal control
over financial reporting as of March 31, 2007 and audits of its 2005 and 2006 consolidated financial statements in accordance withthe standards of the Public Company Accounting Oversight Board (United States). Our opinions, based on our audits, are presented
below.
Consolidated financial statements
In our opinion, the consolidated financial statements listed in the accompanying index present fairly, in all material respects, thefinancial position of Kyocera Corporation and its consolidated subsidiaries (“Kyocera”) at March 31, 2006 and 2007, and the resultsof their operations and their cash flows for each of the three years in the period ended March 31, 2007 in conformity with accounting
principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in
the accompanying index present fairly, in all material respects, the information set forth therein when read in conjunction with therelated consolidated financial statements. These financial statements and financial statement schedule are the responsibility ofKyocera’s management. Our responsibility is to express an opinion on these financial statements and financial statement schedulebased on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. An audit of financial statements includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
As discussed in Note 1 to the consolidated financial statements, Kyocera changed the manner in which it accounts for defined benefit
pensions effective March 31, 2007.
Internal control over financial reporting
Also, in our opinion, management’s assessment, included in the “Management’s Report on Internal Control over Financial Reporting”
appearing under Item 15, that Kyocera maintained effective internal control over financial reporting as of March 31, 2007 based on
criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of theTreadway Commission (COSO), is fairly stated, in all material respects, based on those criteria. Furthermore, in our opinion, Kyocera
maintained, in all material respects, effective internal control over financial reporting as of March 31, 2007, based on criteria
established in Internal Control - Integrated Framework issued by the COSO. Kyocera’s management is responsible for maintaining
effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial
reporting. Our responsibility is to express opinions on management’s assessment and on the effectiveness of Kyocera’s internal
control over financial reporting based on our audit. We conducted our audit of internal control over financial reporting in accordancewith the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan andperform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in
all material respects. An audit of internal control over financial reporting includes obtaining an understanding of internal control overfinancial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal
control, and performing such other procedures as we consider necessary in the circumstances. We believe that our audit provides areasonable basis for our opinions.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of thecompany; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material
effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projectionsof any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Kyoto Audit Corporation

Kyoto Audit Corporation
Kyoto, Japan
June 28, 2007
F-1

Consolidated Balance Sheets
Kyocera Corporation and Consolidated Subsidiaries
March 31, 2006 and 2007
(Yen in millions and U.S. dollars and shares in thousands–Note 2)
ASSETS

Current assets:
Cash and cash equivalents (Note 13)
Short-term investments (Notes 4 and 13)
Trade receivables (Notes 7):
Notes
Accounts
Short-term finance receivables (Notes 3, 5 and 13)
Less allowances for doubtful accounts and sales returns
Inventories (Notes 6)
Deferred income taxes (Note 16)
Other current assets
Total current assets
Investments and advances:
Investments in and advances to affiliates and unconsolidated subsidiaries (Note 7)
Securities and other investments (Notes 4 and 13)
Long-term finance receivables (Notes 3, 5 and 13)
Property, plant and equipment, at cost (Note 9):Land
Buildings
Machinery and equipment
Construction in progress

2006

2007

2007

¥ 300,809
87,942¥ 282,208
213,495$ 2,391,593
1,809,280

24,597
210,393
39,505
274,495(7,425)
267,070
190,564
40,41133,872920,668

25,033
236,380—
261,413(5,960)255,453
209,188
45,39040,757
1,046,491

212,144
2,003,220—
2,215,364(50,508)
2,164,856
1,772,780
384,661
345,398
8,868,568

7,355
553,377
560,732

10,093
690,568
700,661

85,534
5,852,271
5,937,805

80,970——58,286
249,506
697,383
13,473
1,018,648(733,302)
285,346
31,351
31,227
21,228¥1,931,522

Less accumulated depreciation
Goodwill (Note 8)
Intangible assets (Note 8)
Other assets (Notes 10 and 16)

The accompanying notes are an integral part of these statements.
F-2

56,806
261,998
729,6367,362
1,055,802(774,896)
280,906
32,89424,65744,855¥2,130,464

481,4072,220,322
6,183,356
62,3908,947,475(6,566,916)
2,380,559
278,763
208,958
380,127$18,054,780

LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS’ EQUITYCurrent liabilities:
Short-term borrowings (Notes 3, 9 and 13)
Current portion of long-term debt (Notes 3, 9 and 13)
Notes and accounts payable:
Trade
Other
Accrued liabilities:
Payroll and bonus
Income taxes
Other
Other current liabilities (Note 16)
Total current liabilities
Long-term debt (Notes 3, 9 and 13)
Accrued pension and severance liabilities (Note 10)
Deferred income taxes (Note 16)
Other non-current liabilities
Total liabilities
Minority interests in subsidiaries

2006

¥

90,865
16,347

2007¥

15,250
5,853

2007

$

129,237
49,602

103,503
51,997100,295
49,134

849,958
416,390

37,99827,65831,414
18,841
378,623
33,36027,092
125,686
12,742577,503
64,942

41,68036,47533,391
24,110306,188
7,283
16,297
206,858
12,355548,981
66,923353,220
309,110
282,975
204,3222,594,814
61,720138,110
1,753,034
104,7034,652,381
567,144

115,703
161,994
967,576
72,947

115,703
162,363
1,055,293
203,056

980,534
1,375,958
8,943,161
1,720,814(29,143)
1,289,077¥1,931,522(21,855)
1,514,560¥2,130,464(185,212)
12,835,255$18,054,780

Commitments and contingencies (Notes 14)
Stockholders’ equity (Note 15):
Common stock:
Authorized 600,000 shares
Issued 191,309 shares
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income
Common stock in treasury, at cost (Note 11):3,554 shares at March 31, 2006 and 2,660 shares at March 31, 2007
Total stockholders’ equity

The accompanying notes are an integral part of these statements.
F-3

Consolidated Statements of Income
Kyocera Corporation and Consolidated Subsidiaries
For the three years ended March 31, 2007
(Yen in millions and U.S. dollars and shares in thousands, except per share amounts–Note 2)
Net sales (Note 7)
Cost of sales
Gross profit
Selling, general and administrative expenses
Profit from operations

2005

2006

2007

2007

¥1,173,660
852,527
321,133
223,473
97,660¥1,173,544
835,042
338,502
238,807
99,695¥1,283,897
900,470
383,427
248,325
135,102$10,880,483
7,631,102
3,249,381
2,104,449
1,144,932

6,443(1,275)
2,606

8,990
(1,301)(316)

15,472(1,647)(65)

131,119(13,958)(551)(1,678)(2,084)
—
—
—
2,341
6,353

(1,216)
1,472
5,294
6,931
(3,492)
1,180
17,542

2,621
3,819
24
26
—
1,188
21,43822,21232,365203
220—
10,068
181,678

104,013

117,237

156,540

1,326,610

52,606
5,608
58,21445,799(3,142)42,6573,251
45,90846,24053,765520(4,878)46,76048,88770,477
107,653(4,389)(6,324)66,088101,329
3,608
5,175
69,696 ¥ 106,504

455,636(41,339)414,297
912,313(53,593)858,720
43,856
902,576

Other income (expenses):
Interest and dividend income
Interest expense (Note 12)
Foreign currency transaction gains (losses), net (Note 12)
Equity in (losses) earnings of affiliates and unconsolidated
subsidiaries (Note 7)(Losses) gains on sales and maturities of securities, net
Gains on exchange for the shares (Note 4)
Gain on sale of investment in an affiliate (Note 7)
Loss on impairment of investment in an affiliate (Note 7)
Other, net
Income from continuing operations before income taxes andminority interests
Income taxes (Note 16):
Current (Note 14)
DeferredIncome from continuing operations before minority interests
Minority interests
Income from continuing operations
Income from discontinued operations (Notes 3, 12 and 18)
Net income
Earnings per share (Note 19):
Income from continuing operations:
Basic
DilutedIncome from discontinued operations:
Basic
Diluted
Net income:
Basic
DilutedCash dividends declared per share:
Per share of common stock
Weighted average number of shares of common stock outstanding:
Basic
DilutedThe accompanying notes are an integral part of these statements.
F-4

¥

¥

227.52227.47¥¥352.44352.21¥538.52537.35

$

$

4.56
4.55

17.34
17.34

19.24
19.22

27.51
27.44

0.24
0.24

244.86244.81371.68371.43566.03564.79

4.80
4.79

80.00

100.00110.000.93

187,489
187,528

187,514
187,640

188,160
188,573

Consolidated Statements of Stockholders’ Equity
Kyocera Corporation and Consolidated Subsidiaries
For the three years ended March 31, 2007
(Yen in millions and U.S. dollars and shares in thousands–Note 2)

Balance, March 31, 2004 (187,484)
Net income for the year
Foreign currency translation adjustments
Minimum pension liability adjustment - net of taxesof ¥125 (Note 10)
Net unrealized losses on securities - net of taxes of¥11,909 (Note 4)
Reclassification adjustments for net losses on
securities - net of taxes of ¥1,234 (Note 4)
Net unrealized losses on derivative financial
instruments (Note 12)
Reclassification adjustments for net losses onderivative financial instruments (Note 12)
Total comprehensive income for the year
Cash dividends
Purchase of treasury stock (21)Reissuance of treasury stock (18)Stock option plan of a subsidiary
Balance, March 31, 2005 (187,481)
Net income for the year
Foreign currency translation adjustments
Minimum pension liability adjustment - net of taxesof ¥322 (Note 10)
Net unrealized gains on securities - net of taxes of¥29,400 (Note4)
Reclassification adjustments for net gains on
securities - net of taxes of ¥1,206 (Note 4)
Net unrealized losses on derivative financial
instruments (Note 12)
Reclassification adjustments for net losses onderivative financial instruments (Note 12)
Total comprehensive income for the year
Cash dividends
Purchase of treasury stock (20)Reissuance of treasury stock (294)
Balance, March 31, 2006 (187,755)
Net income for the year
Foreign currency translation adjustments
Minimum pension liability adjustment - net of taxes

CommonStock

Additional
Paid-in
CapitalRetained
Earnings(Note 15)

¥115,703¥ 162,091¥ 881,969
45,908

Accumulated Other
Comprehensive Income(Note 15)

Treasury Stock(Notes 11 and 15)¥¥

22,046Comprehensive
Income(31,356)

6,704¥

45,908
6,704

(152)

(152)

(18,441)(18,441)

1,661

1,661

(27)

(27)

48
¥

48
35,701(11,249)

115,703(5)(25)
162,061(170)
146
916,628
69,696

11,839(31,380)

21,396¥

69,696
21,396

(428)

(428)

42,05442,054(1,866)(1,866)

(75)

(75)

27
¥

27
130,804(18,748)

115,703(67)
161,994

967,576
106,504

72,947(170)
2,407(29,143)¥

10,474

106,504
10,474of ¥108 (Note 10)
Net unrealized gains on securities - net of taxes of¥70,986 (Note 4)
Reclassification adjustments for net gains on
securities - net of taxes of ¥6 (Note 4)
Net unrealized gains on derivative financial
instruments (Note 12)
Reclassification adjustments for net losses onderivative financial instruments (Note 12)
Total comprehensive income for the year
Adjustment for initially applying SFAS No. 158 net of taxes of ¥12,035 (Note 10)
Cash dividends
Purchase of treasury stock (24)
Reissuance of treasury stock (918)
Stock option plans of subsidiaries
Balance, March 31, 2007 (188,649)
Balance, March 31, 2006
Net income for the year
Foreign currency translation adjustments
Minimum pension liability adjustment - net of taxesof $915 (Note 10)
Net unrealized gains on securities - net of taxes of$601,576 (Note4)
Reclassification adjustments for net gains on
securities - net of taxes of $51 (Note 4)
Net unrealized gains on derivative financial
instruments (Note 12)
Reclassification adjustments for net losses onderivative financial instruments (Note 12)
Total comprehensive income for the year
Adjustment for initially applying SFAS No. 158 net of taxes of $ 101,992 (Note 10)
Cash dividends
Purchase of treasury stock
Reissuance of treasury stock
Stock option plans of subsidiaries
Balance, March 31, 2007

(82)

(82)

103,334

103,334(1,313)(1,313)

89

89

49
¥

49
219,055

17,558(18,787)¥115,703$980,534

127
242¥ 162,363$1,372,831

(251)
7,539
¥1,055,293$8,199,797
902,576¥$

203,056
618,195¥$(21,855)(246,975)

88,763$

902,576
88,763

(695)

(695)

875,712875,712(11,127)(11,127)

754

754

415

415
$ 1,856,398

148,797(159,212)$980,534

1,076
2,051
$1,375,958

The accompanying notes are an integral part of these statements.
F-5(2,127)63,890$8,943,161$

1,720,814$(185,212)

Consolidated Statements of Cash Flows
Kyocera Corporation and Consolidated Subsidiaries
For the three years ended March 31, 2007
(Yen in millions and U.S. dollars in thousands –Note 2)
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization
Provision for doubtful accounts
Write-down of inventories
Deferred income taxes
Minority interests
Losses (gains) on sales and maturities of securities, net
Equity in losses (earnings) of affiliates and unconsolidated
subsidiaries (Note 7)
Gain on sales of investment in an affiliate (Note 7)
Loss on impairment of investment in an affiliate (Note 7)
Gains on sales of investment in subsidiaries (Note 3)
Gains on exchange for the shares (Note 4)
Foreign currency adjustments
Change in assets and liabilities:
Decrease (increase) in receivables(Increase) decrease in inventories
Decrease (increase) in other current assets(Decrease) increase in notes and accounts payable
Increase (decrease) in accrued income taxes(Decrease) increase in other current liabilities
Decrease in other non-current liabilities
Other, net
Total adjustments
Net cash provided by operating activities
Cash flows from investing activities:
Payments for purchases of available-for-sale securities
Payments for purchases of held-to-maturity securities
Payments for purchases of investments and advances
Sales and maturities of available-for-sale securities
Maturities of held-to-maturity securities
Proceeds from sales of investment in an affiliate (Note 7)
Proceeds from sales of investment in subsidiaries (Note 3)
Payments for purchases of property, plant and equipment
Payments for purchases of intangible assets
Proceeds from sales of property, plant and equipment, and intangible
assetsAcquisition of businesses, net of cash acquired (Note 20)
Deposit of negotiable certificate of deposits and time deposits
Withdrawal of negotiable certificate of deposits and time deposits
Other, net
Net cash used in investing activities
Cash flows from financing activities:(Decrease) increase in short-term debt
Proceeds from issuance of long-term debt
Payments of long-term debt
Dividends paid
Purchase of treasury stock
Sales of treasury stock
Other, net

2005

2006

2007

2007

¥ 45,908¥ 69,696¥ 106,504

65,909(18)
10,405
5,608
3,142
2,037

73,186
(466)
8,446
(218)
4,389
(1,652)

82,182(494)
11,328(4,878)6,324(3,819)696,457(4,186)96,000(41,339)
53,593(32,365)

1,678
—
—
—
—
(2,391)

1,216(6,931)
3,492—(5,294)272(2,621)(26)—(8,252)(24)
160(22,212)(220)—(69,932)
(203)
1,356

68,558(25,598)
14(31,914)
13,566(1,744)(11,464)
1,827
99,615145,523(9,237)
21,263(3,331)
14,390(4,720)
3,284
(118)
3,410
101,381
171,077(32,626)(25,100)(1,901)
6,015
9,066
11,111(7,062)
3,757
43,140149,644(276,492)(212,712)(16,110)50,97576,83094,161(59,847)
31,839365,593
1,268,169(81,946)(10,141)(11,858)
40,955
8,719——(59,381)(4,820)(98,219)(11,070)(224)
50,0902,340
24,133—(91,436)(10,589)(44,582)(26,867)(307)
99,23027,88960
24,602(64,751)(8,215)(377,814)(227,685)(2,602)840,932
236,347508
208,492(548,737)(69,619)

2,920(2,794)(112,903)
95,2203,535(132,494)

3,350
3(132,286)
100,923(2,482)(165,467)

2,693
(756)
(356,169)
203,076(7,606)(151,703)

22,822(6,407)(3,018,381)
1,720,983(64,458)(1,285,619)(18,490)
21,077(58,720)(12,614)
(170)
142
1,431

23,363
19,876(48,458)(20,473)
(170)
2,339
234

9,369
1,928
(13,361)(20,632)
(251)
7,666
(5,364)

79,39816,339(113,229)(174,847)(2,127)64,966(45,458)$

902,576

Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

(67,344)(23,289)(20,645)(174,958)
3,775
7,896
4,103
34,772(50,540)(9,783)(18,601)(157,636)
361,132
310,592
300,8092,549,229¥ 310,592 ¥ 300,809 ¥ 282,208 $ 2,391,593

The accompanying notes are an integral part of these statements.
F-6

Notes to The Consolidated Financial Statements
Kyocera Corporation and Consolidated Subsidiaries
1. ACCOUNTING POLICIESFinancial Statements Presentation:
The accounts of Kyocera Corporation and its Japanese subsidiaries are generally maintained in accordance with accounting principles
generally accepted in Japan. Adjustments, which are not recorded in KC and its Japanese subsidiaries’ books of account, have been
booked to the accompanying consolidated financial statements in order to present them in conformity with accounting principles
generally accepted in the United States of America.
Basis of Consolidation and Accounting for Investments in Affiliated Companies:
The consolidated financial statements include the accounts of Kyocera Corporation, its majority-owned subsidiaries and a variableinterest entity for which Kyocera Corporation is a primarily beneficiary under the Financial Accounting Standard Board Interpretation
No. 46 (revised December 2003), “Consolidation of Variable Interest Entities.” The consolidated variable interest entity for which
Kyocera Corporation is the primary beneficiary does not have a material effect on Kyocera’s financial position and result of
operations. All significant intercompany transactions and accounts are eliminated. Investments in 20% to 50% owned companies areaccounted for under the equity method, whereby Kyocera includes in net income its equity in the earnings or losses from thesecompanies.
Revenue Recognition:
Kyocera sells various types of products, including fine ceramic parts, semiconductor parts, and telecommunications equipment.
Kyocera recognizes revenue upon completion of the earnings process, which occurs when products are shipped or delivered tocustomers in accordance with the terms of an agreement of sale, there is a fixed or determinable selling price, title and risk of loss
have been transferred, and collectibility is reasonably assured. Most of these conditions are satisfied at the time of delivery tocustomers in domestic sales (FOB destination) and at the time of shipment (FOB shipping) for export sales.
Sales returns
Kyocera records an estimated sales return allowance at the time of sales based on its historical returns experience.
Products warranty
For after-service costs to be paid during warranty periods, Kyocera accrues a product warranty liability for claims under warranties
relating to the products that have been sold. Kyocera records an estimated product warranty liability based on its historical repair
experience.
Revenue from financial services
In addition to the tangible products as discussed above, Kyocera also provided certain services, primarily financial services provided
by Kyocera Leasing Co., Ltd. (KLC) until August 2006. Revenue from direct financing leases was recognized over the term of thelease, and amortization of unearned lease income was recognized using the interest method. Interest income on installment loans wasrecognized on an accrual basis. Interest income was no longer accrued at the time the collection of the interest was past due 1 year or
more, or the collection of the principal was past due 6 months or more. The interest received from cash payments on impaired loans
was recorded as income, unless the collectibility of the remaining investments was doubtful, in which case the cash receipt wasrecorded as collection of the principal.
Cash and Cash Equivalents:
Cash and cash equivalents include time deposits and certificates of deposit with original maturities of three months or less.
Translation of Foreign Currencies:
Assets and liabilities of consolidated foreign subsidiaries and affiliates accounted for under the equity method are translated into
Japanese yen at the exchange rates in effect on the respective balance sheet dates. Operating accounts are translated at the average
rates of exchange for the respective years. Translation adjustments result from the process of translating foreign currency financial
statements into Japanese yen. These translation adjustments, which are not included in the determination of net income, are reported
in other comprehensive income.
Assets and liabilities denominated in foreign currencies are translated at the exchange rates in effect at the respective balance sheet
dates, and resulting transaction gains or losses are included in the determination of net income.

Allowances for Doubtful Accounts:
Kyocera maintains allowances for doubtful accounts related to both trade and finance receivables for estimated losses resulting from
customers’ inability to make timely payments, including interest on finance receivables. Kyocera’s estimates are based on various
factors including the length of past due payments, historical experience and current business environments. In circumstances where itis aware of specific customer’s inability to meet its financial obligations, a specific allowance against these amounts is provided
considering the fair value of assets pledged by the customer as collateral.
Inventories:
Inventories are stated at the lower of cost or market. Cost is determined by the average method for approximately 57% and 62% offinished goods and work in process as well as approximately 24% and 21% of raw materials and supplies at March 31, 2006 and2007, respectively. The first-in, first-out method is applied to the other inventories. Kyocera recognizes estimated write-down of
inventories for excess, slow-moving and obsolete inventories.
Securities:
Certain investments in debt and equity securities are accounted for under the Statement of Financial Accounting Standards (SFAS)
No. 115 “Accounting for Certain Investments in Debt and Equity Securities.” Securities classified as available-for-sale securities arerecorded at the fair value, with unrealized gains and losses excluded from income and reported in other comprehensive income, net oftaxes. Securities classified as held-to-maturity securities are recorded at amortized cost. Kyocera evaluates whether the declines in fairvalue of debt and equity securities with readily determinable fair values are other-than-temporary. Other-than-temporary declines infair value are recorded as a realized loss with a new cost basis. This evaluation is based mainly on the duration and the extent towhich the fair value is less than cost, and the anticipated recoverability in fair value.
F-7

Property, Plant and Equipment and Depreciation:
Property, Plant and Equipment are recorded at cost less accumulated depreciation. Kyocera provides for depreciation of buildings,
machinery and equipment over their estimated useful lives primarily on the declining balance method. The principal estimated useful
lives used for computing depreciation are as follows:
Buildings
Machinery and equipment

2 to 50 years
2 to 20 years

The cost of maintenance, repairs and minor renewals is charged to expense in the year incurred; major renewals and betterments
are capitalized.
When assets are sold or otherwise disposed of, the profits or losses thereon, computed on the basis of the difference between
depreciated costs and proceeds, are credited or charged to income in the year of disposal, and costs and accumulated depreciation are
removed from the accounts.
Goodwill and Other Intangible Assets:
Kyocera has adopted SFAS No.142, “Goodwill and Other Intangible Assets.” This requires that, rather than being amortized,
goodwill and intangible assets with indefinite useful lives are tested for impairment at least annually, and also following any events orchanges in circumstances that might lead to impairment. Intangible assets with definite useful lives are amortized over their respective
estimated useful lives to their estimated residual values, and reviewed for impairment whenever events or changes in circumstancesindicate that their carrying amount may not be recoverable.
The principal estimated useful lives for intangible assets are as follows:
Patent rights
Software2 to 8 years
2 to 5 years

Impairment of Long-Lived Assets:
Pursuant to SFAS No.144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” Kyocera reviews its long-lived assets
and intangible assets with definite useful lives for impairment periodically. Long-lived assets and intangible assets with definite
useful lives are considered to be impaired when the expected undiscounted cash flow from the asset group is less than its carrying
value. A loss on impairment is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived
assets and intangible assets with definite useful lives.
Derivative Financial Instruments:
Kyocera utilizes derivative financial instruments to manage its exposure resulting from fluctuations of foreign currencies and interest
rates. These derivative financial instruments include foreign currency forward contracts and interest rate swaps. Kyocera does nothold or issue such derivative financial instruments for trading purposes.
Kyocera applies SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended by SFAS
No. 138, “Accounting for Certain Derivative Instruments and Certain Hedging Activities an Amendment of Financial AccountingStandards Board (FASB) Statement No. 133.” All derivatives are recorded as either assets or liabilities on the balance sheet andmeasured at fair value. Changes in the fair value of derivatives are charged in current earnings. However cash flow hedges whichmeet the criteria of SFAS No. 133 may qualify for hedge accounting treatment. Changes in the fair value of the effective portion ofthese hedge derivatives are deferred in other comprehensive income and charged to earnings when the underlying transaction being
hedged occurs.
Kyocera designates certain foreign currency forward contracts and certain interest rate swaps as cash flow hedges under SFAS
No. 133. Most of Kyocera’s foreign currency forward contracts are entered into as hedges of existing foreign currency denominatedassets and liabilities and as such do not qualify for hedge accounting. Accordingly, Kyocera records changes in fair value of these
foreign currency forward contracts currently in earnings. It is expected that such changes will be offset by corresponding gains orlosses on the underlying assets and liabilities.
Kyocera formally documents all relationships between hedging instruments and hedged items, as well as its risk management
objective and strategy for undertaking various hedge transactions. This process includes all derivatives designated as cash flow hedge
are linked to specific assets and liabilities on the balance sheet or forecasted transactions. Kyocera also formally assesses, both at thehedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective inoffsetting cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to
be a highly effective hedge, Kyocera discontinues hedge accounting prospectively. When hedge accounting is discontinued, thederivative will continue to be carried on the balance sheet at its fair value, with deferred unrealized gains or losses chargedimmediately in current earnings.
F-8

Stock-Based Compensation:
Prior to April 1, 2006, Kyocera accounted for stock-based compensation in accordance with SFAS No. 148, “Accounting for StockBased Compensation-Transition and Disclosure,” an Amendment of FASB Statement No. 123, “Accounting for Stock-Based
Compensation.” As allowed by SFAS No. 148, Kyocera measured stock-based compensation expense using the intrinsic value
method in accordance with Accounting Principles Board (APB) Opinion No. 25, “Accounting for Stock Issued to Employees,” and its
related interpretations. Effective April 1 2006, Kyocera adopted SFAS No. 123 (revised 2004) (SFAS No. 123R), “Share – Based
Payment” and recognized the cost resulting from share-based payment transactions in financial statements by adopting fair-value
based measurement method in accordance with SFAS No. 123R. Under the modified prospective method of adoption for SFAS
No.123R, Kyocera recognized compensation cost which includes: (a) compensation cost for all stock options granted prior to, but not
yet vested as of April 1, 2006, and (b) compensation cost for all stock options granted or modified subsequent to April 1, 2006.
The following table illustrates the effect on income from continuing operations, net income and earnings per share if Kyocera
had applied the fair value recognition provisions of SFAS 123 for the years ended March 31, 2005 and 2006.
(Yen in millions except per share amounts)
Years ended March 31,
2005
2006

Income from continuing operations, as reported
Add: Stock-based employee compensation expense included in reported income - net of taxes
Deduct: Total stock-based employee compensation expense determined under fair value based method for allawards - net of taxes
Pro forma income from continuing operations
Income from discontinued operations
Pro forma net income
Earnings per share:
Income from continuing operations:
Basic, as reported
Basic, pro forma
Diluted, as reported
Diluted, pro forma
Net income:Basic, as reported
Basic, pro forma
Diluted, as reported
Diluted, pro forma
F-9¥ 42,657(25)¥ 66,088—(2,772)39,8603,251¥ 43,111(1,550)64,5383,608¥ 68,146¥ 227.52
212.60227.47212.55¥ 352.44
344.18352.21
343.94244.86229.94244.81229.89371.68363.42371.43363.17

Earnings and Cash Dividends per Share:
Basic earnings per share is computed based on the weighted average number of shares outstanding during each period. Diluted
earnings per share assumes the dilution that could occur if all stock options were exercised and resulted in the issuance of common
stock.
Cash dividends per share are those declared with respect to the earnings for the respective periods for which dividends areproposed by the Board of Directors. Dividends are charged to retained earnings in the year in which they are paid.
Research and Development Expenses and Advertising Expenses:
Research and development expenses and advertising expenses are charged to operations as incurred.
Use of Estimates:
Preparation of consolidated financial statements in conformity with generally accepted accounting principles requires managements’estimates and assumption if it is expected to have any impacts on assets and liabilities, which includes contingently arose, at theperiod end date, and also on revenue and expenses during the period. However, the results may possibly differ from the estimates.
Accounting Changes:
In November 2004, the Financial Accounting Standards Board (FASB) issued SFAS No. 151, “Inventory Costs-an amendment of
ARB No. 43, Chapter 4.” SFAS No. 151 requires that all abnormal idle facility expense, freight, handling costs, and spoilage berecognized as current-period charges regardless of whether they meet the criterion of “so abnormal.” In addition, SFAS No. 151
requires that allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production
facilities. SFAS No. 151 was effective for inventory costs incurred during fiscal years beginning after June 15, 2005. The adoption of
SFAS No. 151 did not have a material impact on Kyocera’s consolidated results of operations and financial position.
In May 2005, the FASB issued SFAS No. 154, “Accounting Changes and Error Corrections—a replacement of APB Opinion
No. 20 and FASB Statement No. 3.” SFAS No. 154 replaces APB Opinion No. 20, “Accounting Changes”, and SFAS No. 3,“Reporting Accounting Changes in Interim Financial Statements”, and changes the requirements for the accounting for and reportingof a change in accounting principle. SFAS No. 154 applies to all voluntary changes in accounting principle. It also applies to changes
required by an accounting pronouncement when the pronouncement does not include specific transition provisions. APB Opinion
No. 20 previously required that most voluntary changes in accounting principle be recognized by including in net income of theperiod of the change the cumulative effect of changing to the new accounting principle. SFAS No. 154 requires retrospective
application to prior periods’ financial statements of changes in accounting principle. SFAS No. 154 was effective for accountingchanges and corrections of errors made in fiscal years beginning after December 15, 2005. The adoption of SFAS No. 154 did nothave a material impact on Kyocera’s consolidated results of operations and financial position.
In December 2004, the FASB issued SFAS No. 123R, “Share-Based Payment.” This statement is a revision of SFAS No. 123,
“Accounting for Stock-Based Compensation.” SFAS No. 123R supersedes APB Opinion No. 25, “Accounting for Stock Issued to
Employees,” and its related interpretations. SFAS No. 123R requires that the cost resulting from all share-based payment transactions
be recognized in the financial statements. SFAS No. 123R establishes fair value as the measurement objective in accounting forshare-based payment arrangements and requires all entities to apply a fair-value based measurement method in accounting for sharebased payment transactions with employees except for equity instruments held by employee share ownership plans. SFAS No. 123R
was announced to be effective as of the beginning of the first fiscal year that would begin after June 15, 2005, however, on April 14,
2005, the Securities and Exchange Commission (SEC) staff postponed implementation of SFAS No. 123R. Kyocera adopted SFAS
No.123R effective April 1, 2006, and the impact of adoption of SFAS No. 123R was ¥333 million ($2,822 thousand) on Kyocera’s
consolidated results of operations for the year ended March 31, 2007.
In September 2006, SEC staff published Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year
Misstatements when Quantifying Misstatements in Current Year Financial Statements” (SAB No. 108). SAB No. 108 provides
guidance on the consideration of the effects of prior year misstatements in quantifying current year misstatements for the purpose of amateriality assessment. SAB No. 108 requires quantification of the effects of financial statement errors by two approaches generally
referred to as “rollover” and “iron curtain”. SAB No. 108 shall be effective for fiscal years ending after November 15, 2006. The
adoption of SAB No. 108 did not have a material impact on Kyocera’s consolidated results of operations and financial position.
In September 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans-an amendment of FASB Statements No.87, 88, 106, and 132 (R)”, which requires an employer to recognize theoverfunded or underfunded status of its defined benefit postretirement plans as an asset or liability in its statement of financial
position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income.
Kyocera recognized the funded status of its defined benefit plans and provided the required disclosures in accordance with SFAS
No. 158 as of the year ended March 31, 2007. For the impact of adoption of SFAS No. 158 on Kyocera’s consolidated results ofoperations and financial position, see Note 10 to the Consolidated Financial Statements in this annual report. SFAS No. 158 alsorequires an employer to measure the funded status of a plan as of the date of its year end statement of financial position. Kyocera will
be required to measure the funded status of its plans at the date of its year end as of the year ending March 31, 2009. Kyocera iscurrently evaluating the impact of adoption of this requirement for measurement date in its consolidated results of operations andfinancial position.
F-10

Recently Issued Accounting Standards:
In June 2006, the FASB issued Interpretation No. 48, “Accounting for Uncertainty in Income Taxes-an interpretation of FASBStatement No.109” (FIN 48) which clarifies the accounting for uncertainty in income taxes recognized in the financial statements inaccordance with SFAS No. 109, “Accounting for Income Taxes.” FIN 48 also provides guidance on derecognition, classification,interest and penalties, disclosure and transitional measures. FIN 48 shall be effective for fiscal years beginning after December 15,
2006. Kyocera is currently evaluating the impact of adoption of FIN 48 in its consolidated results of operations and financial position.
In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements.” The purpose of SFAS No. 157 is to define
fair value, establish a framework for measuring fair value and enhance disclosures about fair value measurements. The measurementand disclosure requirements are effective beginning after November 15, 2007. Kyocera is currently evaluating the impact of adoptionof SFAS No. 157 in its consolidated results of operations and financial position.
In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities—
Including an amendment of FASB Statement No. 115”. SFAS No.159 provides companies with an option to report selected financial
assets and liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected will berecognized in earnings. SFAS No.159 is effective for fiscal years beginning after November 15, 2007 and Kyocera will adopt SFAS
No. 159 effective April 1, 2008. Kyocera is currently evaluating the impact of adoption of SFAS No. 159 in its consolidated results ofoperations and financial position.
Reclassifications:Certain reclassifications of previously reported amounts have been made to the consolidated statements of income, cash flows andcorresponding footnotes for the year ended March 31, 2005 and 2006 in order to conform to the current year presentation. Such
reclassifications have no effect on net assets, net income and cash flows.
2. U.S. DOLLAR AMOUNTS
The consolidated financial statements as of and for the year ended March 31, 2007 presented herein are expressed in the Japaneseyen, and, solely for the convenience of the readers, have been translated into the U.S. dollar at the rate of ¥118 for US$1, the rate
prevailing on March 30, 2007.
This translation should not be construed as a representation that the yen amounts shown could be so converted into the U.S.
dollar at ¥118 for US$1 or at any other rate.
3. DISCONTINUED OPERATIONSOn August 1, 2006, Kyocera sold 100% of the shares of KLC (presently Diamond Asset Finance Company Limited) to Diamond
Lease Company Limited (presently Mitsubishi UFJ Lease & Finance Company Limited) for ¥25,274 million ($214,186 thousand),aimed to concentrate Kyocera’s management resources on its core businesses to enhance and improve its corporate value. Kyocera
has accounted for the results of operations and the sale of KLC less income taxes, as discontinued operations in accordance with
SFAS No.144, “Accounting for the Impairment or Disposal of Long-Lived Assets” in its consolidated statements of income.
Accordingly, the prior years’ financial statements and related footnote disclosures have been reclassified.
For comparative purposes, the components of the income from discontinued operations, which had been reported as the“Others” segment previously, are summarized as follows:(Yen in millions and U.S. dollars in thousands)
Years ended March 31,
2005
2006
2007
2007

Net sales
Income before income taxes
Income taxes
Net income
Gain on sales of discontinued operations - net of taxes of ¥3,534 ($ 29,949)
Income from discontinued operations¥ 9,069 ¥ 9,213 ¥ 1,779 $ 15,076
3,517
4,150
862
7,305
266
542
381
3,229
3,251
3,608
481
4,076
—
—
4,694
39,780
3,251
3,608
5,175
43,856

The financial positions of discontinued operations at March 31, 2006 are summarized as follows:(Yen in millions)
March 31, 2006

Short-term finance receivables
Long-term finance receivables
Other assets¥

48,12180,971
4,981

Total assets
Short-term borrowings
Long-term debt (including portion due within one year)
Other liabilities
Total liabilities¥
F-11

134,073
80,35125,857
11,772
117,980

4. INVESTMENTS IN DEBT AND EQUITY SECURITIES
Available-for-sale securities are recorded at fair value, with unrealized gains and losses excluded from income and reported in othercomprehensive income, net of tax. Held-to-maturity securities are recorded at amortized cost. In gross unrealized gains and losses on
equity securities, ¥111,178 million of gross unrealized gain at March 31, 2006 and ¥289,853 million ($2,456,381 thousand) of grossunrealized gain at March 31, 2007 were derived from a fluctuation in the market value of the shares of KDDI Corporation (KDDI)
held by Kyocera Corporation.
Other-than-temporary loss on debt and equity securities with readily determinable fair values for the years ended March 31,
2005, 2006 and 2007 amounted to ¥1 million, ¥113 million and ¥797 million ($6,754 thousand), respectively.
Due to the merger of Mitsubishi Tokyo Financial Group, Inc. and UFJ Holdings, Inc., on October 1, 2005, Kyocera’s holding
shares in UFJ Holdings, Inc. were exchanged for shares of the new company, Mitsubishi UFJ Financial Group. As a result of thisshare exchange, Kyocera recognized a gain in the amount of ¥5,281 million for the year ended March 31, 2006 in accordance with
Emerging Issues Task Force (EITF) 91-5, “Nonmonetary Exchange of Cost-Method Investments.”
Investments in debt and equity securities at March 31, 2006 and 2007, included in short-term investments (current assets) and insecurities and other investments (non-current assets) are summarized as follows:(Yen in millions)
March 31,
2006

Cost*

Available-for-sale securities:
Corporate debt securities
Other debt securities
Equity securities
Total available-for-sale securities
Held-to-maturity securities:
Other debt securities
Total held-to-maturity securities
Total investments in debt and equity
securities¥

Aggregate
Fair Value

2007

Gross
Unrealized
Gains

Gross
Unrealized
LossesGross
Unrealized
Gains

Aggregate
Fair Value

Cost*

Gross
Unrealized
Losses3,745 ¥ 3,908 ¥184 ¥21 ¥ 3,842 ¥ 4,033 ¥194 ¥133,758 132,660
29
1,127
74,56374,574
71
274,985 415,950 141,059
94 272,653 585,274 312,724
412,488 552,518 141,272
1,242 351,058 663,881 312,989

3
60
103
166

34,39834,39865
65

34,01534,015

—
—

383
383

33,51233,51233,44733,447——¥446,886 ¥586,533 ¥141,272 ¥ 1,625 ¥384,570 ¥697,328 ¥312,989 ¥(U.S. dollars in thousands)
March 31, 2007
Gross
Unrealized
Aggregate
Gains
Fair Value

Gross
Unrealized
Losses32,559631,890
2,310,619
2,975,068$

34,178631,983
4,959,949
5,626,110

$

1,644
602
2,650,203
2,652,449$

284,000
284,000$3,259,068

283,449
283,449$5,909,559——$2,652,449

551
551$ 1,958

Cost*

Available-for-sale securities:
Corporate debt securities
Other debt securities
Equity securities
Total available-for-sale securities
Held-to-maturity securities:
Other debt securities
Total held-to-maturity securities
Total investments in debt and equity securities

$

F-12

231

25
509
873
1,407

At March 31, 2007, the contractual maturities of available-for-sale and held-to-maturity securities are summarized as follows:

Available-for-Sale
Aggregate
Fair Value
Cost*(Yen in millions and U.S. dollars in thousands)
March 31, 2007
Held-to-Maturity
Available-for-Sale
Aggregate
Aggregate
Fair Value
Fair Value
Cost*
Cost*

Held-to-Maturity
Aggregate
Fair Value
Cost*

Due within 1 year
Due after 1 year to 5 years
Due after 5 years
Equity securities¥ 24,168 ¥ 24,295 ¥17,110 ¥ 17,062 $ 204,814 $ 205,890 $145,000 $144,593
52,33852,391 16,402
16,385443,542443,991 139,000 138,856
1,899
1,921
—
—
16,093
16,280——272,653 585,274——
2,310,619 4,959,949——¥351,058 ¥663,881 ¥33,512 ¥ 33,447 $2,975,068 $5,626,110 $284,000 $283,449* Cost represents amortized cost for held-to-maturity securities and acquisition cost for available-for-sale securities. The cost basis of
the individual securities is written down to fair value as a new cost basis when other-than-temporary impairment is recognized.
Proceeds from sales of available-for-sale securities and the related gross realized gains and losses for the years ended March 31, 2005,
2006 and 2007 are as follows:(Yen in millions and U.S. dollars in thousands)
Years ended March 31,
2005
2006
2007
2007

Proceeds from sales of available-for-sale securities
Gross realized gains
Gross realized losses¥22,662
2,015
4,224

¥48,173
2,769
1,346

¥99,171
6,055
2,305

$840,432
51,314
19,534

For the purpose of computing gains and losses, the cost of those securities is determined by the moving average method.
Kyocera’s available-for-sale securities were classified by its length of an unrealized loss position at March 31, 2006 and 2007 as
follows:

within 1 year
Gross
Unrealized
Aggregate
LossesFair Value

Corporate debt securities
Other debt securities
Equity securities(Yen in millions)
March 31, 2006
over 1 year
Aggregate
Gross
Fair
Unrealized
Value
Losses¥1,012 ¥
21 ¥
131,942
1,127
1,252
87
¥134,206 ¥ 1,235 ¥

— ¥
—
25
25 ¥

—
—

Total
Aggregate
Fair Value

Gross
Unrealized
Losses¥ 1,012 ¥21
131,942
1,127
7
1,277
94
7 ¥134,231 ¥ 1,242(Yen in millions)
March 31, 2007
within 1 year
Gross
Unrealized
Aggregate
LossesFair Value

Corporate debt securities
Other debt securities
Equity securities

¥

529 ¥
50,8671,700¥ 53,096 ¥over 1 year
Aggregate
Gross
Fair
Unrealized
Value
Losses

3 ¥
60
103
166 ¥

—
—
—
—

¥

¥

—
—
—
—

Aggregate
Fair Value

Total
Gross
Unrealized
Losses¥529 ¥50,8671,700¥ 53,096 ¥

3
60
103
166

(U.S. dollars in thousands)
March 31, 2007
within 1 year
over 1 year
Total
Gross
Aggregate
Gross
Gross
Unrealized
Fair
Unrealized
Unrealized
Aggregate
Aggregate
Losses
Value
Losses
LossesFair Value
Fair Value

Corporate debt securities
Other debt securities
Equity securities$

4,483 $
25 $
431,076509
14,407873$449,966 $ 1,407 $

—
—
—
—

$

$

—
—
—
—

$ 4,483 $25
431,076509
14,407873$449,966 $ 1,407

At March 31, 2006 and 2007, the number of individual available-for-sale securities in an unrealized loss position held byKyocera were 33 and 38, respectively.

F-13

5. FINANCE RECEIVABLES
On August 1, 2006, Kyocera sold 100% of the shares of KLC. Detailed information regarding this transaction is described in Note 3.
Finance receivables at March 31, 2006 consist of the following:(Yen in millions)
March 31, 2006

Investments in financing leases :Minimum lease payments receivable
Unearned lease income¥

Less-allowance for doubtful accounts
Less-current portion¥
Other finance receivables
Less-allowance for doubtful accounts¥

Less-current portion
¥
¥

7,469
(639)
6,830
(501)
6,329
(2,499)3,830
119,911(5,831)
114,080(36,940)
77,14080,970Investments in financing leases consisted primarily of direct financing leases of telecommunications equipment and informationequipment. Other finance receivables consisted primarily of installment loans to unrelated third parties.
Investments in loans of ¥5,146 million at March 31, 2006 were considered to be impaired, for which valuation allowances at
March 31, 2006 were provided of ¥3,567 million, calculated under SFAS No.114, “Accounting by Creditors for Impairment of aLoan” and included in allowances for doubtful accounts.
The average recorded investments in impaired loans for the years ended March 31, 2005 and 2006 were ¥9,567 million and¥6,179 million, respectively. The related recognized interest income for the years ended March 31, 2005 and 2006 were, ¥43 millionand ¥34 million, respectively.
The principal amount of the loan on which interest income was no longer accrued at March 31, 2006 was ¥6,207 million, and at
March 31, 2006 there was no loan, on which the collection of the principal was past due ninety days or more and on which interest
income was still accrued.
Changes in allowances for doubtful accounts on finance receivables are as follows:(Yen in millions)Years ended March 31,
2005
2006

Beginning balance
Provision charged to income
Charge-offs
Ending balance¥ 36,315
508(21,904)¥ 14,919
F-14¥14,919326(8,913)¥ 6,332

6. INVENTORIESInventories at March 31, 2006 and 2007 are as follows:(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007

Finished goods
Work in process
Raw materials and supplies¥

95,492
38,42556,647¥ 190,564¥ 106,135
44,80658,247¥ 209,188$

899,449
379,712493,619$ 1,772,780

7. INVESTMENTS IN AND ADVANCES TO AFFILIATES
Kyocera Corporation owned a 36.02% interest in Taito Corporation, a major affiliate which operates in the electric amusementbusiness and accounted for its investment under the equity method. On September 28, 2005, Kyocera Corporation sold its entire
holding of shares of Taito Corporation in a tender offer bid for Taito shares by Square Enix Co., Ltd., one of the leading companies in
the game software industry. As a result of this sale of Taito Corporation shares, Kyocera Corporation recorded a gain of¥6,931 million for the year ended March 31, 2006.
Kyocera Mita Corporation owns a 30% interest in Triumph-Adler AG Group (TA), which is a distributor of office equipment
and accounted for its investment under the equity method. Kyocera recognized loss on impairment of investment in an affiliate of¥3,492 million due to an extended decline in its market value for the year ended March 31, 2006.
Kyocera Corporation owns a 30% interest in WILLCOM, INC., which operates a Personal Handyphone System (PHS) businessand is accounted for its investment under the equity method.
On March 31, 2006 and 2007, TA was a listed company. The market values of investment in TA at March 31, 2006 and 2007
were ¥2,669 million and ¥3,375 million ($28,602 thousand), respectively.
Related party transactions with the affiliates, accounted for under the equity method is as follows:(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007

Kyocera’s investments in and advances to affiliates
Kyocera’s trade receivables from affiliates

¥

2005

Kyocera’s equity in (losses) earnings of affiliates
Kyocera’s sales to affiliates¥
F-15(1,712)
21,3207,107
15,851¥

9,818
13,940$(Yen in millions and U.S. dollars in thousands)
Years ended March 31,
2006
2007

¥

(1,311)42,822¥

2,593
39,18983,203
118,136

2007$

21,975332,110

8. GOODWILL AND OTHER INTANGIBLE ASSETS
Intangible assets subject to amortization are summarized as follows:(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007
Gross Carrying
Accumulated
Gross Carrying
Accumulated
Gross Carrying
Accumulated
AmountAmortization
AmountAmortization
AmountAmortization

Patent rights
Software
Other

¥

¥

31,75524,314
6,754
62,823¥¥

15,546
13,0193,031
31,596¥¥29,00827,626
6,562
63,196¥¥

17,71016,876
3,955
38,541$$

245,830
234,119
55,610535,559$ 150,085
143,01733,517$ 326,619

The carrying amount of intangible assets other than goodwill having an indefinite life at March 31, 2006 and 2007 were notsignificant.
Intangible assets acquired during the year ended March 31, 2007 totaled ¥5,710 million ($48,390 thousand) and primarily
consist of patent rights of ¥626 million ($5,305 thousand) and software of ¥4,661 million ($39,500 thousand).
The weighted average amortization periods for patent rights and software are 5 years and 4 years, respectively.
Total amortization of intangible assets during the years ended March 31, 2005, 2006 and 2007 amounted to ¥7,008 million,¥10,042 million and ¥11,666 million ($98,864 thousand), respectively.
The estimated aggregate amortization expenses for intangible assets for the next five years are as follows:
Years ending March 31,(Yen in millions and U.S. dollars in thousands)

2008
2009
2010
2011
2012

¥

9,433
7,504
4,539
1,359
435

$

79,941
63,59338,466
11,517
3,686

The changes in the carrying amounts of goodwill by reporting segment for the years ended March 31, 2006 and 2007 are as follows:

Balance at March 31, 2005
Goodwill acquired during
the yearTranslation adjustments andreclassification to otheraccounts
Balance at March 31, 2006
Goodwill acquired during
the yearImpairment of goodwill
Translation adjustments
and reclassification toother accounts
Balance at March 31, 2007
Balance at March 31, 2006
Goodwill acquired during
the yearImpairment of goodwill
Translation adjustments
and reclassification toother accounts
Balance at March 31, 2007

Fine Ceramic
Parts Group

Semiconductor
Parts Group(Yen in millions and U.S. dollars in thousands)
Applied CeramicElectronic
Information
Products Group
Device Group
Equipment Group

¥

¥

¥

¥
$

—

6,293

¥

17,099¥OthersTotal

586¥ 4,132¥ 28,110

100

912

150

754

44

5

1,965

—
100

—
912

603
7,046

619
18,472

54
684

—
4,137

1,276
31,351

—
—

—
—

—
—

2,699
—

—
—

19
(1,478)2,718(1,478)60
7,106
59,712239¥ 21,410$ 156,542

5
689
5,797

(1)
¥ 2,677$ 35,059

303¥ 32,894$265,686——

22,873———

161(12,525)

23,034(12,525)

508
60,2202,026$ 181,441

42
5,839

(8)
$ 22,687

2,568$278,763

—
100
847

¥
$

—
—

$

—

—
847

—
912
7,729

¥
$

—
—

$

—
7,729

$

¥
$

$

Kyocera performed the annual impairment test of goodwill and other intangible assets and recorded an impairment loss of¥1,478 million ($12,525 thousands), which caused by stagnant sales and profit results in a reporting unit in the “Others” segment in
the three months ended March 31, 2007. The impairment charge reflected the overall decline in the fair value of a domestic
subsidiary. The fair value of the subsidiary was estimated principally using the expected present value of future cash flow.
F-16

9. SHORT-TERM BORROWINGS AND LONG-TERM DEBT
Short-term borrowings at March 31, 2006 and 2007 are comprised of the following:
Loans, principally from banks with average interest rate of 0.71% and 5.17% at March 31, 2006 and 2007, respectively.
(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007

Unsecured*¥

90,865¥ 15,250$

129,237

Long-term debt at March 31, 2006 and 2007 are comprised of the following:
Loans, principally from banks with interest rates ranging from 0.15% to 5.45% and from 0.15% to 5.82% at March 31, 2006 and2007, respectively.
(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007

SecuredUnsecured *

¥

4,149
45,55849,707(16,347)
33,360Less, portion due within one year
¥

¥

3,256
9,880
13,136(5,853)¥ 7,283$$

27,59383,729111,322(49,602)61,720* See note 3 for more information.
Aggregate maturities of long-term debt at March 31, 2007 are as follows:
Years ending March 31,(Yen in millions and U.S. dollars in thousands)

2009
2010
2011
2012
2013 and thereafter

¥

¥

1,899
1,488
1,370
1,020
1,506
7,283

$

$

Kyocera’s assets pledged as collateral of property, plant and equipment, net of accumulated depreciation for long-term debt at
March 31, 2006 and 2007 were ¥5,692 million and ¥5,374 million ($45,542 thousand), respectively.
F-17

16,093
12,61011,6108,644
12,76361,72010. BENEFIT PLANS
Adoption of SFAS No. 158:
As of March 31, 2007, Kyocera adopted SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans-an amendment of FASB Statements No. 87, 88, 106 and 132 (R),” which requires an employer to recognize theover funded or under funded status of its defined benefit postretirement plans as an asset or liability in its consolidated balance sheet
and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. Kyocera
initially recognized the funded status of its defined benefit plans and to provide the required disclosures in accordance with thisstandard at March 31, 2007.
The following tables show the incremental effect of the applying SFAS No. 158 at March 31, 2007 on the consolidated balance
sheet line items listed below. These adjustments had no effect on Kyocera’s consolidated statements of income and cash flows for theyear ended March 31, 2007.
(Yen in millions)

Investments in and advances to affiliates and unconsolidated
subsidiaries
Intangible assets
Deferred tax assets
Prepaid benefit cost

Before Applicationof SFAS No. 158

Adjustments

After Applicationof SFAS No. 158

¥

¥

¥

Accrued benefit liability
Deferred tax liabilities
Minority interests in subsidiaries
Accumulated other comprehensive income (loss)

—
12
8,354
568
17,856
1,466(942)(2,139)1,033(12)(2,555)23,614

1,033
—
5,799
24,182(4,931)9,480(27)
17,55812,925
10,946(969)
15,419(U.S. dollars in thousands)

Investments in and advances to affiliates and unconsolidated
subsidiaries
Intangible assets
Deferred tax assets
Prepaid benefit costAccrued benefit liability
Deferred tax liabilities
Minority interests in subsidiaries
Accumulated other comprehensive income (loss)

Before Applicationof SFAS No. 158

Adjustments

After Applicationof SFAS No. 158

$

$

$

—
102
70,797
4,813
151,322
12,424(7,983)(18,127)

8,754
(102)
(21,653)
200,119(41,788)
80,339(229)
148,796

8,754—
49,144204,932
109,534
92,763(8,212)
130,669

Domestic:a. Defined benefit plans
At March 31, 2007, Kyocera Corporation and its major domestic subsidiaries sponsor funded defined benefit pension plans or
unfunded retirement and severance plans for their employees.
Kyocera Corporation adopted a variable expected interest rate for benefits paid for pensioners, which is linked with the longterm interest rate prevailing in Japan instead of a fixed expected interest rate, effective April 2004.
Benefits under the plan of Kyocera Corporation were previously calculated based on base salary, employee’s position, length ofservice period and conditions at the time of retirement. However, after April 2005, Kyocera adopted “point system” whereby benefits
under the plan are calculated according to (i) accumulated “points” that are earned based on employee’s position, extent ofcontribution and length of service period during employment, and (ii) conditions at the time of retirement. In addition, employees
were provided an option to receive lifetime pension payments for the full amount of their retirement payment, while after April 2005,
employees are provided an option to receive lifetime pension payments for 50% of their retirement payment and 50% of pension
payments for 20 years in maximum. These amendments reduced the projected benefit obligation of the pension plan for Kyocera
Corporation. This effect of the reduction in the projected benefit obligation was reflected as a prior service cost.
Major domestic subsidiaries also amended their benefit plans and adopted the “point system” effective April 2006. As a result of
this amendment, their projected benefit obligations decreased and such decreases were reflected as prior service costs.
F-18

The funded statuses of the benefit plans at Kyocera Corporation and its major domestic subsidiaries at March 31, 2006 and 2007
are as follows:(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007

Change in projected benefit obligations:
Projected benefit obligation at beginning of year
Service cost
Interest cost
Actuarial loss (gain)
Benefits paid
Amendment
Projected benefit obligation at end of year
Change in plan assets:
Fair value of plan assets at beginning of year
Actual return on plan assets
Employer contribution
Benefits paid
Fair value of plan assets at end of year
Funded status
Amounts recognized in the consolidated balance sheets consist of:Prepaid benefit costAccrued benefit liability
Net amount recognized
Reconciliation from funded status to amounts recognized in the consolidated balance
sheets consist of:Funded status
Unrecognized net transition obligation
Prior service cost not yet recognized
Unrecognized actuarial loss
Net amount recognized
Amounts recognized in accumulated other comprehensive income (loss) consist of:
Net transition obligation
Prior service cost
Actuarial loss
Accumulated other comprehensive income¥ 104,484 ¥ 110,530 $
6,661
7,873
2,045
2,098
1,464
(1,792)(3,292)(3,355)(832)(5,329)110,530
110,025

936,695
66,72017,780(15,186)(28,432)(45,161)
932,416

107,265
119,920
1,016,271
6,482
2,033
17,2299,043
8,935
75,720(2,870)(3,236)(27,423)
119,920
127,652
1,081,797¥
9,390 ¥ 17,627 $ 149,381¥

657 ¥(17,239)¥ (16,582) ¥24,182 $(6,555)
17,627 $204,932(55,551)
149,381

¥

—
—
—
—
—

—
—
—
—
—

(337) $
55,642(26,235)¥ 29,070 $(2,856)
471,542(222,330)
246,356

9,390
(522)
55,051(28,557)¥ (16,582)
—
—
—
—

¥

(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007

Accumulated benefit obligation at end of year
Pension plans with an accumulated benefit obligation in excess of plan assets at the end ofyear are as follows:
Projected benefit obligation
Accumulated benefit obligation
Fair value of plan assets
F-19¥ 106,963¥ 108,037$

915,568¥¥$

149,271
145,856
93,72025,731
22,477
8,653

17,614
17,211
11,059

Net periodic pension costs at Kyocera Corporation and its major domestic subsidiaries in the years ended March 31, 2005 , 2006 and2007, include the following components:(Yen in millions and U.S. dollars in thousands)
Years ended March 31,
2005
2006
2007
2007

Service cost
Interest cost
Expected return on plan assets
Amortization of transition obligation
Amortization of prior service cost
Recognized actuarial loss
Net periodic pension cost

¥ 6,494
2,385(1,789)221(2,283)
1,243¥ 6,271¥ 6,661
2,045(2,159)221(4,445)
1,350¥ 3,673¥ 7,873
2,098(2,870)185(4,739)1,310¥ 3,857$ 66,720
17,780(24,322)
1,568(40,161)
11,101$ 32,686

Transition obligation, actuarial loss, and prior service cost expected to be amortized at Kyocera Corporation and its major domestic
subsidiaries in the year ending March 31, 2008 are as follows:(Yen in millions and U.S. dollars in thousands)
Year ending March 31,
2008
2008

Amortization of transition obligation
Amortization of prior service cost
Recognized actuarial loss¥

226
(4,320)
1,047

$

1,915
(36,610)
8,873

Assumptions used to determine projected benefit obligations at Kyocera Corporation and its major domestic subsidiaries at March 31,
2006 and 2007 are as follows:
March 31,

Discount rate

2006

2007

1.75% -2.00%

1.75% -2.00%

Assumptions used to determine net periodic pension costs at Kyocera Corporation and its major domestic subsidiaries for the years
ended March 31, 2005 , 2006 and 2007 are as follows:

Discount rate
Expected long-term rate of return on plan assets
Rate of increase in compensation levels

2005

Years ended March 31,
2006

2.00%
2.00%-2.50%
3.00%

2.00%
2.00%-2.50%—

2007

1.75%-2.00%
2.00%-2.50%—

Kyocera Corporation and its domestic subsidiaries use a December 31 measurement date for their plans. Certain domestic subsidiaries
use a March 31 measurement date for their plans. Kyocera Corporation and its domestic subsidiaries, which currently use a
December 31 measurement date, will use a March 31 measurement date upon the adoption of measurement provision of SFAS
No. 158 for the year ending March 31, 2009.
Rate of increase in compensation levels was not used in the calculation of projected benefit obligation and net periodic pension
costs for the years ended March 31, 2006 and 2007 under the “point system.”
Kyocera Corporation and its major domestic subsidiaries determine its expected long-term rate of return on plan assets based on
the defined yields of life insurance company general account, which occupies major part of plan assets categories, and theirconsideration of the current expectations for future returns and the historical returns of other plan assets categories in which they
invest.
Plan assets categories at Kyocera Corporation and its major domestic subsidiaries at March 31, 2006 and 2007 are as follows:
March 31,
2006
2007

Life insurance company general accountEquity securities
Debt securities
Cash and cash equivalents
Other

65.1% 58.6%
21.9% 25.6%
9.5%
8.2%
2.2%
1.4%
1.3%
6.2%
100.0% 100.0%

F-20

Kyocera Corporation and its major domestic subsidiaries manage and operate their plan assets with a target of obtaining better
performance more than earnings from the expected rate of return on plan assets to ensure the sources of funds sufficient to cover thepension benefits paid to participants and beneficiaries into the future. In terms of the plan assets management, they make appropriate
investment choices and optimal portfolios with a consideration of its performances, expected returns and risks, and entrusts their plan
assets to the fund trustees which can be expected to be the most appropriate to accomplish Kyocera’s objective. They also make aneffort to maintain their portfolios within reasonable allocations of plan assets. They evaluate their categories of plan assets allocations
and can change their portfolios when it is needed. Their long-term strategy is to allocate approximately 60% Life insurance company
general account which assures fixed income, and approximately 30% equity and debt securities and approximately 10% cash andother for their defined benefit plans.
Kyocera Corporation and its major domestic subsidiaries forecast to contribute ¥8,753 million ($74,178 thousand) to the defined
benefit pension plans in the year ending March 31, 2008.
Estimated future benefit payments at Kyocera Corporation and its major domestic subsidiaries are as follows:
Years ending March 31,(Yen in millions and U.S. dollars in thousands)

2008
2009
2010
2011
2012
2013 to 2017

¥

4,368
5,372
5,420
5,269
5,843
32,453$37,01745,52545,93244,65349,517275,025b. Other plan
Kyocera Corporation and its major domestic subsidiaries also provide for lump-sum severance benefits with respect to directors andcorporate auditors. To reserve future payments of lump-sum severance benefits to directors and corporate auditors, annual provisions
are made in the accounts for the estimated cost of this termination plan, which is not funded.
Foreign:a. Pension plans
Kyocera International, Inc. and its consolidated subsidiaries (KII) and AVX Corporation and its consolidated subsidiaries (AVX)
which are both consolidated U.S. subsidiaries of Kyocera Corporation, maintain non-contributory defined benefit pension plans in the
U.S. and contributory defined benefit pension plans outside the U.S. The KII plan covers substantially all full-time employees in the
U.S., of which benefits are based on years of service and the employees’ average compensation. AVX sponsors various defined
benefit pension plans covering certain employees. Pension benefits provided to certain U.S. employees covered under collective
bargaining agreements are based on a flat benefit formula. Effective December 31, 1995. AVX froze benefit accruals under its
domestic non-contributory defined benefit pension plan for a significant portion of the employees covered under collective bargaining
agreements. AVX’s pension plans for certain European employees provide for benefits based on a percentage of final pay. AVX’s
funding policy is to contribute amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax
laws.
F-21

The following table sets forth the funded statuses of the KII’s and AVX’s plans at March 31, 2006 and 2007:(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007

Change in benefit obligations:Benefit obligation at beginning of year
Service cost
Interest cost
Plan participants’ contributions
Actuarial loss (gain)
Benefits paid
Amendment
Foreign exchange adjustment
Benefit obligation at end of year
Change in plan assets:
Fair value of plan assets at beginning of year
Actual return on plan assets
Employer contribution
Plan participants’ contributions
Benefits paid
Other expenses
Foreign exchange adjustment
Fair value of plan assets at end of year
Funded status
Amounts recognized in the consolidated balance sheets consist of:
Intangible assets
Accrued benefit liability
Accumulated other comprehensive loss
Net amount recognized
Reconciliation from funded status to amounts recognized in the consolidated balance
sheets consist of:Funded status
Prior service cost not yet recognized
Unrecognized actuarial loss
Net amount recognized
Amounts recognized in accumulated other comprehensive Income (loss) consist of:Prior service cost
Actuarial loss
Accumulated other comprehensive loss

¥ 22,142
433
1,252
90
2,590
(979)
—
1,272
26,800¥ 26,854
538
1,431
98
(491)
(987)
154
1,884
29,481

16,893
2,079
630
90
(979)
(621)
1,589
19,681¥ (7,119)

19,681
1,927
1,095
98
(987)
(64)
1,359
23,109¥ (6,372)

$

¥

¥

$

¥

¥

¥

21
(5,615)
4,614
(980)

¥

(7,119)(15)(6,124)
(980)
—
—
—

—
(6,372)—(6,372)

$

$

—
—
—
—
¥
¥

(159)
(3,782)(3,941)

227,576
4,559
12,127830(4,161)(8,364)
1,305
15,967
249,839
166,788
16,3309,280
830(8,364)(542)
11,517
195,839(54,000)—(54,000)—(54,000)

—
—
—
—
$
$

(1,347)(32,051)(33,398)(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007

Accumulated benefit obligation at end of year
Pension plans with an accumulated benefit obligation in excess of plan assets at theend of year:
Projected benefit obligation
Accumulated benefit obligation
Fair value of plan assets
F-22¥ 25,054¥ 27,567$

233,619¥ 26,800
25,054
19,681¥ 19,685
19,51014,725$

166,822
165,339
124,788

KII’s and AVX’s net periodic pension costs in the years ended March 31, 2005 , 2006 and 2007 include the following components:(Yen in millions and U.S. dollars in thousands)
Years ended March 31,
2005
2006
2007
2007

Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Recognized actuarial loss
Net periodic pension cost

¥

845
1,186
(1,118)13
166¥ 1,092

¥

433
1,252
(1,283)
13
163
¥ 578

¥

538
1,431
(1,482)
17
238
¥ 742

$ 4,559
12,127(12,559)
144
2,017$ 6,288

KII’s and AVX’s actuarial losses and prior service costs expected to be amortized in the year ending March 31, 2008 are as follows:(Yen in millions and U.S. dollars in thousands)
Year ending March 31,
2008
2008

Amortization of prior service cost
Recognized actuarial loss

¥

15
196

$

127
1,661

KII’s and AVX’s assumptions used to determine projected benefit obligations at March 31, 2006 and 2007 are as follows:
March 31,2006

Discount rate
Rate of increase in compensation levels

2007

4.25%-5.50% 4.40%-6.00%
2.00%-4.50% 3.40%-4.50%

KII’s and AVX’s assumptions used to determine net periodic pension costs in the years ended March 31, 2005 , 2006 and 2007 are as
follows:
2005

Discount rate
Rate of increase in compensation levels
Expected long-term rate of return on plan assets

Years ended March 31,
2006

2007

5.25%-6.00% 4.50%-6.00% 4.25%-5.50%
1.25%-4.50% 1.25%-4.50% 3.00%-4.50%
7.00%-8.50% 6.30%-8.50% 6.40%-8.50%

KII and AVX use a December 31 measurement date for their plans. KII and AVX determine their expected long-term rate of returnon plan assets based on the consideration of the current expectations for future returns and the historical returns of other plan assets
categories in which they invest.
KII’s and AVX’s plan assets categories at March 31, 2006 and 2007 are as follows:
March 31,
2006
2007

Equity securities
Debt securities
Cash and cash equivalents
Other

65.9%
33.2%
0.9%
—
100.0%

65.9%
30.5%
2.2%
1.4%
100.0%

KII’s long-term strategy is for target allocation of 65%-75% equity securities and 15%-35% debt securities for its defined benefit
plans. AVX’s long-term strategy is for target allocation of 40% equity and 60% fixed income for its U.S. defined benefit plans and
60% equity and 40% fixed income for its non-U.S. defined benefit plans.
AVX forecasts to contribute ¥931 million ($7,890 thousand) to the defined benefit pension plans in the year ending March 31, 2008.
KII’s and AVX’s estimated future benefit payments are as follows:
Years ending March 31,

2008
2009
2010
2011
2012

(Yen in millions and U.S. dollars in thousands)

¥

964
1,004
1,072
1,136
1,203

$

8,169
8,508
9,085
9,627
10,195

7,1482013 to 2017
F-23

60,576

b. Savings plans
KII and AVX maintain retirement savings plans which allow eligible U.S. employees to defer part of their annual compensation.
AVX also maintains non-qualified deferred compensation programs which permit key employees to annually elect to defer a
portion of their compensation until retirement.
Contributions to the plans for the years ended March 31, 2005, 2006 and 2007 were ¥853 million, ¥928 million and¥1,003 million ($8,500 thousand), respectively.
11. STOCK OPTION PLANS
Kyocera Corporation:
Kyocera Corporation granted directors, corporate auditors, corporate executive officers and certain key employees of Kyocera withstock option plans until the year ended March 31, 2006. Under the plans, they were granted options to purchase Kyocera
Corporation’s shares of common stock at a price determined by the higher of (1) multiplying by 1.1 the average market price ofKyocera Corporation’s common stock in previous month of the date of the grant or (2) the market price of Kyocera Corporation’scommon stock at the date of grant and an option’s maximum term is 5 years. All options vested and are exercisable.
At March 31, 2007, Kyocera Corporation reserved 2,113 thousand shares of its common stock for the plans.
The following table summarizes information on stock option plans for the year ended March 31, 2007:

Number of
Options(in thousands)

Outstanding at March 31, 2006
GrantedExercised
Expired and cancelled
Outstanding at March 31, 2007
Exercisable at March 31, 2007

Weighted Average
Exercise Price

Weighted
Average
Contractual
life remaining(years)

3,087 ¥ 8,498
—
— $ —
(918)
8,344
70.71
(56)
8,531
72.30
2,113 ¥ 8,564 $ 72.58
2,113 ¥ 8,564 $ 72.58

AggregatedIntrinsic Value(Yen in millions and U.S.
dollars in thousands)¥ 2,103 $17,822

1.5 ¥ 5,380 $1.5 ¥ 5,380 $

45,59345,593

The total aggregate intrinsic value of options exercised is ¥16 million, ¥626 million and ¥2,103 million ($17,822 thousand) for theyears ended March 31, 2005, 2006 and 2007, respectively.
At March 31, 2007, there was no unrecognized compensation costs related to unvested awards. The total aggregate fair value of
options vested was ¥2,419 million and ¥1,248 million for the years ended March 31, 2005 and 2006, respectively.
Because Kyocera granted no stock options during the year ended March 31, 2007 and requisite service period of Kyocera’s
stock options granted prior to April 1, 2006 did not attribute to the year ended March 31, 2007, no stock based compensation expense
was recognized for the year ended March 31, 2007.
Cash received from the exercise of stock options was ¥120 million, ¥2,332 million and ¥7,654 million ($64,864 thousand) for
the years ended March 31, 2005, 2006 and 2007, respectively.
Kyocera’s weighted average fair value is estimated at the date of grant using Black Scholes model. Kyocera estimated expected
life, volatility and expected dividends by considering historical record.
The following are significant weighted average assumptions used estimating the fair value of options issued under the Kyocera’s
stock option plans:
Years ended March 31,
2005
2006

Fair value
Interest rate
Expected life
Volatility
Expected dividends

¥

1,946
0.39%
3.7 years
39.09%
1.00%

¥

959
0.20%
2.7 years
28.00%
1.30%

AVX Corporation:
AVX has four fixed stock option plans. Under the 1995 stock option plan, as amended, AVX could grant options to employees

for the purchase of up to an aggregate of 9,300 thousand shares of common stock. Under the non-employee directors’ stock option
plan, as amended, AVX could grant options for the purchase of up to an aggregate of 650 thousand shares of common stock. No
awards were made under these two plans after August 1, 2005. Under the 2004 stock option plan AVX may grant options toemployees for the purchase of up to an aggregate of 10,000 thousand shares of common stock. Under the 2004 non-employee
directors’ stock option plan, AVX may grant options for the purchase of up to an aggregate of 1,000 thousand shares of common
stock. Under all plans, the exercise price of each option shall not be less than the market price of AVX’s stock on the date of grant
and an option’s maximum term is 10 years. Options granted under the 1995 stock option plan and the 2004 stock option plan vest as
to 25% annually and options granted under the non-employee directors’ stock option plan and the 2004 non-employee directors’ stock
option plan vest as to one third annually. Requisite service periods related to all of the plans begin on the grant date. The number ofshares of common stock available for future issuance under all of the plans, consisting of options available to be granted and options
currently outstanding, was 15,300 thousand at March 31, 2007.
Options exercised under the AVX’s stock option plans are issued from the AVX’s treasury shares.
F-24

Activity under the AVX’s stock option plans is summarized as follows:

Number of
Options(in thousands)

Outstanding at March 31, 2006
GrantedExercised
Expired and cancelled
Outstanding at March 31, 2007
Exercisable at March 31, 2007

4,813
513
(430)
(75)
4,821
3,564

Weighted
Average
Exercise Price

$

$
$

14.72
15.27
10.27
18.62
15.14
15.69

Weighted
Averagecontractual
life remaining(years)AggregatedIntrinsic Value(Yen in millions and U.S.
dollars in thousands)

¥
5.11
4.03

323

$

2,737

¥
33
¥ (207)$$280(1,754)

The total aggregate intrinsic value of options exercised is ¥14 million, ¥120 million and ¥323 million ($2,737 thousand) for the years
ended March 31, 2005, 2006 and 2007, respectively.
Unvested share activity under the AVX’s stock options plans at March 31, 2007 is summarized as follows:
Weighted Average
GrantDated Fair Value

Number of Options(in thousands)

Unvested balance at March 31, 2006
Options granted
Option forfeited
Options vested
Unvested balance at March 31, 2007

1,382
513
(36)
(602)
1,257

$

$

5.65
5.44
5.60
6.57
5.39

At March 31, 2007, ¥438 million ($3,712 thousand) of total unrecognized compensation costs related to unvested awards is expected
to be recognized over the vesting period, approximately four years. The total aggregate fair value of options vested is ¥658 million,¥497 million and ¥463 million ($3,924 thousand) for the years ended March 31, 2005, 2006 and 2007, respectively.
The weighted average estimated fair value of the AVX’s stock options granted at grant date market prices was $6.07, $4.91 and$5.44 per option for the years ended March 31, 2005, 2006 and 2007, respectively. The consolidated statement of income includes¥263million ($2,229 thousand), net of ¥45 million ($381 thousand) of tax benefit, in stock based compensation expense for the year
ended March 31, 2007.
Cash received from the exercise of stock options was ¥31 million, ¥646 million and ¥ 516 million ($4,373 thousand) for theyears ended March 31, 2005, 2006 and 2007, respectively. Excess tax benefit from stock-based payment arrangements was¥78 million ($661 thousand) for the year ended March 31, 2007.
AVX’s weighted average fair value is estimated at the date of grant using Black Scholes model. AVX estimated volatility byconsidering the AVX’s historical stock volatility. AVX calculated the dividend yield based on historical dividend paid. In accordancewith SFAS No. 123R AVX has estimated forfeitures in determining the weighted average fair value calculation. The forfeiture rateused for the year ended March 31, 2007 was 6.4%. The following are significant weighted average assumptions used for estimating
the fair value of options issued under the AVX’s stock option plans:
2005

Interest rate
Expected life
Volatility
Expected dividends

Years ended March 31,
2006
2007

3.53%
4.00%
4.90%
4 years
4 years
5 years
55.97%
55.74%
35.25%
1.07%
1.31%
0.98%

Kyocera Wireless Corp. (KWC):
KWC provides key employees with stock options. The options become vested gradually over a four-year period provided participantsremain a KWC employee. The exercise price shall not be less than 85% of the fair value of the common stock at the time the option is
granted, and the grant has a maximum term of 10 years. Since KWC’s securities are not traded on any stock change, KWC’s Board of
Directors is responsible for determining the fair value using reasonable means. KWC may grant options to all key employees for thepurchase for up to an aggregate of 3,800 thousand shares of common stock. The issuance of new options under this plan has beensuspended as of April 1, 2006.
Activity under the KWC’s stock option plans is summarized as follows:Number of
Options(in thousands)

Outstanding at March 31, 2006
GrantedExercised
Expired and cancelled
Outstanding at March 31, 2007
Exercisable at March 31, 2007

2,124
—
—
(585)
1,539
1,253
F-25

Weighted
Average
Exercise Price

$

$
$

2.33
—
—
2.41
2.30
2.38

Weighted
Averagecontractual
life remaining(years)5.45
5.45

AggregatedIntrinsic Value(Yen in millions and U.S.
dollars in thousands)¥ (363)¥ (307)$$(3,076)(2,602)Unvested share activity under the KWC’s stock options plans at March 31, 2007 is summarized as follows:
Weighted Average
GrantDated Fair Value

Number of Options(in thousands)

Unvested balance at March 31, 2006
Options granted
Option forfeited
Options vested
Unvested balance at March 31, 2007

669
—
(149)
(234)
286

$

0.92
—
1.11
0.87
0.87

$

At March 31, 2007, ¥36 million ($305 thousand) of total unrecognized compensation costs related to unvested awards is expected tobe recognized over the vesting period, approximately four years. The total aggregate fair value of options vested is ¥78 million,¥76 million and ¥22 million ($186 thousand) for the years ended March 31, 2005, 2006 and 2007, respectively.
The weighted average estimated fair value of the KWC’s stock options granted at grant date was $1.43 and $0.63 per option forthe years ended March 31, 2005 and 2006, respectively. The consolidated statement of income includes ¥(25) million and ¥25 million($212 thousand) in stock based compensation expense for the years ended March 31, 2005 and 2007, respectively.
KWC’s weighted average fair value is estimated at the date of grant using Black Scholes model. KWC estimated volatility byconsidering historical volatility. The following are significant weighted average assumptions used for estimating the fair value of
options issued under the KWC’s stock option plans:
Years ended March 31,
2005
2006

Fair value
Interest rate
Expected life
Volatility
Expected dividends

$

1.43
3.65%
5 years
45.00%
—

$

0.63
4.21%
5 years
45.00%—

12. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Kyocera’s activities are exposed it to a variety of market risks, including the effects of changes in foreign currency exchange rates andinterest rates. Approximately 60% of Kyocera’s revenues are generated from overseas customers, which exposes Kyocera to foreign
currency exchange rates fluctuations. These financial exposures are monitored and managed by Kyocera as an integral part of its
overall risk management program. Kyocera’s risk management program focuses on the unpredictability of financial markets andseeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results.
Kyocera maintains a foreign currency risk management strategy that uses derivative financial instruments, such as foreign
currency forward contracts, to minimize the volatility in its cash flows caused by changes in foreign currency exchange rates.
Movements in foreign currency exchange rates pose a risk to Kyocera’s operations and competitive position, since exchange rates
changes may affect the profitability, cash flows, and business and/or pricing strategies of non Japan-based competitors. Thesemovements affect cross-border transactions that involve, but not limited to, direct export sales made in foreign currencies and raw
material purchases incurred in foreign currencies.
Kyocera maintains an interest rate risk management strategy that may use derivative financial instruments, such as interest rate
swaps, to minimize significant, unanticipated cash flow fluctuations caused by interest rate volatility.
By using derivative financial instruments to hedge exposures to changes in exchange rates and interest rates, Kyocera became
exposed itself to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contracts. Whenthe fair value of a derivative contract is positive, the counterparty owes Kyocera, which creates repayment risk for Kyocera. When thefair value of a derivative contract is negative, Kyocera owes the counterparty and, therefore, it does not possess repayment risk.
Kyocera minimizes the credit (or repayment) risk in derivative financial instruments by (1) entering into transactions withcreditworthy counterparties, (2) limiting the amount of exposure to each counterparty, and (3) monitoring the financial condition of its
counterparties.
Cash Flow Hedges
Kyocera uses certain foreign currency forward contracts designated as cash flow hedges to protect against foreign currency exchange
rate risks inherent in its forecasted transactions related to purchase and sales.
Kyocera charged deferred net gains of ¥30 million and net losses of ¥27 million and ¥8 million ($68 thousand) fromaccumulated other comprehensive income to foreign currency transaction gains (losses), net in the consolidated statements of income

for the years ended March 31, 2005, 2006 and 2007, as a result of the execution of the hedged transactions.
Also, Kyocera uses interest rate swaps mainly to convert a portion of its variable rate debt to fixed rates. Kyocera charged
deferred net losses of ¥78 million and ¥23 million ($195 thousand) from accumulated other comprehensive income to income fromdiscontinued operations in the consolidated statements of income for the years ended March 31, 2005 and 2007. Kyocera charged
deferred net losses of ¥18 million ($152 thousand) from accumulated other comprehensive income to equity in (losses) earnings ofaffiliates in the consolidated statement of income for the year ended March 31, 2007.
Kyocera recognized net losses of ¥75 million and net gains of ¥63 million ($534 thousand) in accumulated other comprehensive
income at March 31, 2006 and 2007, respectively
F-26

Other Derivatives
Kyocera’s main direct foreign export sales and some import purchases are denominated in the customers’ and suppliers’ local
currency, principally the U.S. dollar, Euro and STG. Kyocera purchases foreign currency forward contracts with terms normallylasting less than three months to protect against the adverse effects that exchange-rate fluctuations may have on foreign-currencydenominated trade receivables and payables. Kyocera does not adopt hedge accounting for such derivatives. The gains and losses onboth the derivatives and the foreign-currency-denominated trade receivables and payables are recorded as foreign currencytransaction gains (losses), net in the consolidated statements of income.
The aggregate contract amounts of derivative financial instruments to which hedge accounting is not applied are as follows:(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007

Foreign currency forward contracts to sell
Foreign currency forward contracts to purchase
Interest rate swaps¥ 118,911
8,572
13,000¥ 135,227
14,961—$ 1,145,992
126,788—

13. FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair values of financial instruments at March 31, 2006 and 2007 and the methods and assumptions used to estimate the fair value
are as follows:(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007
Carrying
Carrying
Carrying
Fair Value
Fair Value
Fair Value
AmountAmountAmountNon-derivatives:
Assets:Cash and cash equivalents (a)Short-term investments (b)Short-term finance receivables (c)Securities and other investments (b)Long-term finance receivables (c)Liabilities:
Short-term borrowings (a)Current portion of long-term debt (c)Long-term debt (c)¥ 300,809 ¥ 300,809 ¥ 282,208 ¥ 282,208 $ 2,391,593 $ 2,391,593
87,942
87,791
1,809,280
1,808,873
213,495
213,447
36,94036,946————553,377
553,144690,568
690,527
5,852,271
5,851,924
77,14077,164————¥1,056,208 ¥1,055,854 ¥1,186,271 ¥1,186,182 $10,053,144 $10,052,390¥ (90,865) ¥ (90,865) ¥ (15,250) ¥ (15,250) $ (129,237) $ (129,237)(16,347)(16,367)(5,853)(5,880)(49,602)(49,831)(33,360)(33,470)(7,283)(7,285)(61,720)(61,737)¥ (140,572) ¥ (140,702) ¥ (28,386) ¥ (28,415) $ (240,559) $ (240,805)

Derivatives:
Foreign currency forward contracts
to sell(d)¥ (1,271) ¥ (1,271) ¥ (1,386) ¥ (1,386) $ (11,746) $Foreign currency forward contracts
to purchase (d)
(27)
(27)
593
70
70
Interest rate swaps (d)
(511)
(511)
—
—
—
At March 31, 2006, both short-term finance receivables and long-term finance receivables in the above do not include
investments in direct financing leases.
(a)
(b)

(c)

(d)

(11,746)
593—

The carrying amount approximates fair value because of the short maturity of these instruments.
The fair value is based on quoted market prices. It was not practicable to estimate the fair value of investments in unlistedcommon stock because of the lack of the market price and difficulty in estimating fair value without incurring excessive cost,
and Kyocera did not identify any events or changes in circumstances that may have had a significant adverse effect on theseinvestments. The aggregated carrying amounts of these investments included in the table at March 31, 2006 and 2007 were¥2,258 million and ¥2,100 million ($17,797 thousand), respectively.
The fair value is estimated by discounting cash flows, using current interest rates for instruments with similar terms andremaining maturities.
The fair value is estimated based on quotes from financial institutions.

F-27

14. COMMITMENTS AND CONTINGENCIESAt March 31, 2007, Kyocera had contractual obligations for the acquisition or construction of property, plant and equipment
aggregating ¥15,893 million ($134,686 thousand) principally due within one year.
Kyocera is lessee under long-term operating leases primarily for office space and equipment. Rental expenses for operatingleases were ¥12,204 million, ¥11,485 million and ¥7,681 million ($65,093 thousand) for the years ended March 31, 2005, 2006 and2007, respectively.
Future minimum lease commitments under non-cancelable operating leases at March 31, 2007 are as follows:
Years ending March 31,(Yen in millions and U.S. dollars in thousands)

2008
2009
2010
2011
2012
2013 and thereafter

¥

¥

6,346
4,126
2,997
2,370
1,771
5,270
22,880$$53,78034,96625,39820,08515,00844,661
193,898

Kyocera has entered into material supply agreements for a significant portion of their anticipated material used in its operations.
Under those agreements, during the year ended March 31, 2007, Kyocera purchased ¥2,414 million ($20,458 thousand) and is
obligated to purchase ¥106,938 million ($906,254 thousand) in total by the end of December 2018.
Kyocera guarantees the debt of employees, customers, an investee and an unconsolidated subsidiary. At March 31, 2007, thetotal amount of these guarantees was ¥850 million ($7,203 thousand). The financial guarantees are made in the form of commitments
and letters of awareness issued to financial institutions and generally obligate Kyocera to make payments in the event of default by
the borrowers. Kyocera also guarantees the leasing debts of customers of the Information Equipment Group. At March 31, 2007, theamount of such guarantee was ¥180 million ($1,525 thousand).
Kyocera is subject to various lawsuits and claims, which arise, in the ordinary course of business. Kyocera consults with legal
counsel and assesses the likelihood of adverse outcome of these contingencies. Kyocera records liabilities for these contingencies
when the likelihood of an adverse outcome is probable and the amount is reasonably estimated. However, based on the information
available, management believes that damages, if any, resulting from these actions will not have a significant effect on Kyocera’s
consolidated results of operations and financial position.
On March 28, 2005, Kyocera Corporation received a notice of tax assessment based on transfer pricing adjustments from the
Osaka Regional Tax Bureau stating that, in the Bureau’s judgment, allocation of profit earned from transfers of products between
Kyocera Corporation and its overseas subsidiaries was not appropriate for the five years from the year ended March 31, 1999 throughthe year ended March 31, 2003. The notice indicated that income should be adjusted upwards ¥24,394 million and that resultant
additional taxes, including local taxes, etc., amounted to ¥12,748 million, which Kyocera had recognized as current income taxes in
its consolidated statement of income for the year ended March 31, 2005. On May 24, 2005, Kyocera Corporation filed a complaint
against tax assessment based on transfer pricing adjustments with the Osaka Regional Tax Bureau.
On September 25, 2006, Kyocera Corporation received decision letter from the Bureau that voided a portion of the originalassessment. In accordance with this decision, ¥4,305 million ($36,483 thousand) of tax refunds, including local taxes, was recognizedin current income taxes in fiscal 2007. Kyocera Corporation remains in disagreement with the decision concerning the portion of theoriginal assessment that was not voided, and therefore, on October 23,2006, Kyocera submitted a written claim for examination with
the Osaka Board of Tax Appeals. Furthermore, with the objective of avoiding duplicate taxation within Kyocera Group, a noticestating mutual agreement with the United States was submitted to the National Tax Agency on December 26, 2006.
15. STOCKHOLDERS’ EQUITY
Under the Company Law of Japan (the “Company Law”), the entire amount paid in for the shares is principally required to becapitalized as stated capital, although Kyocera Corporation may, by resolution of its Board of Directors, capitalize an amount notexceeding one-half of the amount paid in for the shares as additional paid-in capital.
The Company Law requires a domestic company to appropriate as legal reserve or additional paid-in capital, an amount equal to
10% of the amount paid out for dividends until the sum of the legal reserve and the additional paid-in capital equals 25% of its statedcapital. The legal reserve and additional paid-in capital, which could be decreased due to stockholder actions, may be transferred tostated capital or used to reduce a deficit principally. The appropriated legal reserve at March 31, 2007 included in retained earnings
was ¥18,873 million ($ 159,941 thousand).

F-28

The Company Law does not permit any payment of dividends in connection with the repurchased treasury stock. At
March 31,2007, Kyocera Corporation reserved ¥21,855 million ($185,212 thousand) of treasury stock repurchased mainly for stock
options, which are restricted as to the payment of cash dividends. The amount of statutory retained earnings of Kyocera Corporation
available for the payment of dividends to stockholders at March 31, 2007 was ¥649,412 million ($5,503,492 thousand).
The accompanying consolidated financial statements do not include any provision for the dividend of ¥60 ($0.51) per share
aggregating ¥11,319 million ($95,924 thousand) payable on June 28, 2007 which was approved by the stockholders at the meeting
held on June 27, 2007.
Kyocera’s equity in retained earnings or deficits of affiliates and unconsolidated subsidiaries accounted for by the equity methodof accounting aggregating ¥ (13,373 million) ($(113,331 thousand)) at March 31, 2007 was included in retained earnings.
Changes in accumulated other comprehensive income are as follows:(Yen in millions and U.S. dollars in thousands)
Net Unrealized
Gains (Losses)
Minimum
Net Unrealized
on Derivative
PensionGains
Financial
Liability
Pensionon
Instruments
Adjustments
Adjustments
Securities

Total
Accumulated
Other
Comprehensive
Income¥ (35,670)
6,704(28,966)
21,396(7,570)10,474¥¥—¥ 2,904$ (64,153)
88,763

15,419¥ 15,419
$
—
—

2,139
¥
—
$ (17,432)(695)—$ 24,610

130,670$ 130,670$

Foreign
Currency
Translation
Adjustments

Balance at March 31, 2004
Net change for the year
Balance at March 31, 2005
Net change for the year
Balance at March 31, 2006
Net change for the year
Adjustment for initially applying
SFAS No.158
Balance at March 31, 2007
Balance at March 31, 2006
Net change for the year
Adjustment for initially applying
SFAS No.158
Balance at March 31, 2007

—
—
—
—
—
—

¥

(1,477)(152)(1,629)(428)(2,057)(82)

18,127—¥¥$59,241(16,780)
42,46140,18882,649102,021—
184,670
700,415
864,585—$ 1,565,000

¥

¥
$

$

(48)
21
(27)
(48)
(75)
138
—
63
(635)
1,169
—
534

¥
$

22,046(10,207)
11,83961,10872,947
112,551
17,558203,056
618,195
953,822

148,797$ 1,720,814

16. INCOME TAXES
Income from continuing operations before income taxes and minority interests and income taxes for the years ended March 31, 2005,
2006 and 2007 are made up of the following components:(Yen in millions and U.S. dollars in thousands)
Years ended March 31,
2005
2006
2007
2007

Income from continuing operations before income taxes and minority interests:
Domestic
Foreign
Total income from continuing operations before income taxes andminority interests
Income taxes:
Current income taxes:
Domestic
Foreign
Total current income taxes
Deferred income taxes:
Domestic
Foreign
Total deferred income taxes
Total income taxes
F-29¥ 89,673
14,340¥ 93,078
24,159¥102,048
54,492$ 864,813
461,797¥104,013¥117,237¥156,540$1,326,610¥ 47,400
5,206
52,606¥ 39,025
7,215
46,240¥ 41,227
12,53853,765$ 349,382
106,254455,636

(723)
6,331
5,608
¥ 58,214(1,202)
1,722
520¥ 46,760(4,479)(399)(4,878)¥ 48,887(37,958)(3,381)(41,339)$ 414,297

In Japan, a company is subject to a number of taxes, based on income, which in the aggregate indicate normal statutory income tax
rates for the years ended March 31, 2005, 2006 and 2007 of approximately 41.0%.
Reconciliations between the Japanese statutory income tax rate and Kyocera’s effective tax rate for the years ended March 31,
2005, 2006 and 2007 are as follows:

2005

Japanese statutory tax rate
Difference in statutory tax rates of foreign subsidiaries
Change in valuation allowance
Tax credit for research and development expenses
Tax refunds related to transfer pricing adjustments (Note 14)
Adjustments of transfer pricing (Note 14)
Other
Effective income tax rateYears ended
March 31,
2006

41.0%
(4.1)
9.8
(2.3)
—
12.3
(0.7)
56.0%

2007

41.0% 41.0%
(2.8)
(4.6)
5.8
0.0
(3.6)
(3.3)
—
(2.8)
—
—
(0.5)
0.9
39.9% 31.2%

The components of the deferred tax assets and deferred tax liabilities at March 31, 2006 and 2007 are as follows:(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007

Deferred tax assets:
Enterprise tax
Inventories
Allowance for doubtful accounts
Accrued expenses
Employee benefits
Depreciation and amortization
Securities
Net operating losses and tax credit carry forwards
Liquidation of a foreign subsidiary
Other
Total gross deferred tax assets
Valuation allowance
Net deferred tax assets
Deferred tax liabilities:
Depreciation and amortization
Deduction of foreign branch losses
Securities
Prepaid benefit cost
Other
Total deferred tax liabilities
Net deferred tax liabilities¥

2,162 ¥
2,521 $
21,364
19,22822,358
189,475
2,851
1,972
16,712
7,478
9,178
77,78020,825
18,774
159,10228,244
31,165
264,1102,390
2,194
18,59331,37832,500275,424
3,479
3,800
32,2036,456
4,817
40,822
124,491
129,279
1,095,585(42,149)(42,124)(356,983)¥ 82,342 ¥ 87,155 $
738,602¥3,496 ¥
2,566 $
21,746
5,670
5,474
46,390143,734
214,900
1,821,186
269
10,946
92,763973
2,968
25,153¥ 154,142 ¥ 236,854 $ 2,007,238¥ (71,800) ¥ (149,699) $ (1,268,636)
F-30

Net deferred tax assets and liabilities at March 31, 2006 and 2007 are reflected in the consolidated balance sheets under the following
captions.
(Yen in millions and U.S. dollars in thousands)
March 31,
2006
2007
2007

Deferred income taxes - current assets
Other assets
Other current liabilities
Deferred income taxes - non-current liabilities
Net deferred tax liabilities¥

40,411 ¥ 45,390 $ 384,661
13,504
12,024
101,898(29)(255)(2,161)(125,686)(206,858)(1,753,034)¥ (71,800) ¥ (149,699) $ (1,268,636)

At March 31, 2007, Kyocera had net operating losses carried forward of approximately ¥ 89,177 million ($755,737 thousand), which
are available to offset future taxable income. Of these net operating losses carried forward, the amount of ¥20,429 million ($173,127
thousand) recorded at domestic subsidiaries will expire within next seven years, and the amount of approximately ¥16,615 million($140,805 thousand) recorded at U.S. subsidiaries will expire within next twenty years. Certain other foreign subsidiaries have net
operating losses carried forward totaling approximately ¥52,133 million ($441,805 thousand) of which most have no expiration date.
Kyocera intends to reinvest certain undistributed earnings of foreign subsidiaries for an indefinite period of time. Therefore, nodeferred tax liabilities have been provided on undistributed earnings of these subsidiaries, which are not expected to be remitted in theforeseeable future. Kyocera estimates that this unrecognized deferred tax liability amount are ¥17,862 million ($151,373 thousand) at
March 31, 2007. The undistributed earnings of these subsidiaries are ¥172,320 million ($1,460,339 thousand) at March 31, 2007.
Total gross deferred tax assets at March 31, 2006 and 2007 were reduced by valuation allowances of ¥42,149 million and¥42,124 million ($356,983 thousand), respectively. The total valuation allowance for the year ended March 31, 2007 decreased by¥25 million ($212 thousand).
17. SUPPLEMENTAL EXPENSE INFORMATION
Research and development expenses for the years ended March 31, 2005, 2006 and 2007 amounted to ¥54,398 million,¥57,436 million and ¥61,100 million ($517,797 thousand), respectively.
Advertising expenses for the years ended March 31, 2005, 2006 and 2007 amounted to ¥13,914 million, ¥10,840 million and¥11,845 million ($100,381 thousand), respectively.
Shipping and handling costs for the years ended March 31, 2005, 2006 and 2007 amounted to ¥12,914 million, ¥13,984 millionand ¥15,945 million ($135,127 thousand), respectively, and were included in selling, general and administrative expenses in theConsolidated Statements of Income.
F-31

18. SEGMENT REPORTING
Kyocera manufactures and sells a highly diversified range of products, including components involving fine ceramic technologies andapplied ceramic products, telecommunications and information equipment and optical instruments, etc. Main products or businessesof each reporting segment are as follows:(Fine Ceramic Parts Group)
Information & Telecommunication Components
Sapphire Substrates
Components for Semiconductor Processing Equipment
Components for LCD Fabrication Equipment
Automotive Components
ITS-related Components
Ceramic Components for General Industrial Equipment(Semiconductor Parts Group)
Surface Mount Device (SMD) Ceramic Packages
CCD/CMOS Sensor Ceramic Packages
LSI Ceramic Packages
Wireless Communication Device Packages
Optical Communication Device Packages and Components
Organic Multilayer Packages and Substrates(Applied Ceramic Products Group)
Residential and Industrial Solar Power Generating Systems
Solar Cells and Modules
Cutting Tools
Printed Circuit Board Micro Drills
Jewelry
Applied Ceramic Related Products
Dental and Medical Implants(Electronic Device Group)
Ceramic Capacitors
Tantalum Capacitors
Timing Devices (Temperature Compensated Crystal Oscillators (TCXOs), Ceramic Resonators, Crystal Units)
RF Modules
Surface Acoustic Wave (SAW) Filters
Connectors
Thermal Printheads
LED Printheads
Amorphous Silicon Drums
Liquid Crystal Displays(Telecommunications Equipment Group)
CDMA Mobile Phone Handsets
Personal Handy Phone System (PHS) Related Products (PHS Mobile

Phone Handsets, PHS Base Stations, High Speed Wireless Data
Transmission Systems)(Information Equipment Group)
ECOSYS Printers
Copying Machines
Multifunctional Systems(Optical Equipment Group)
Optical Modules and Lenses(Others)
Chemical Materials for Electronic Components
Electrical Insulators
Synthetic Resin Molded Parts
Telecommunication Engineering BusinessInformation and Communication Technology Business
Management Consulting Business
Hotel Business
Realty Development BusinessInsurance Agent and Travel Agent Business
Kyocera Corporation sold its shares of KLC, a subsidiary engaged in financing services included in “Others.” As a result, businessresults and profit on sale of its shares of KLC for the year ended March 31, 2007 have been recorded as income from discontinued
operations. Additionally, commencing for the year ended March 31, 2007, results of Precision Machine Division of Kyocera
Corporation, previously included within “Corporate,” has been reclassified into “Others.” Accordingly, reported results of related
segments for the years ended March 31, 2005 and 2006 have been reclassified.
Inter-segment sales, operating revenue and transfers are made with reference to prevailing market prices. Transactions between
reportable segments are immaterial and not shown separately. Operating profit for each reporting segment represents net sales, lessrelated costs and operating expenses, excluding corporate revenue and expenses, equity in earnings (losses), income taxes andminority interest. Assets for each reporting segment represent those assets associated with a specific reporting segment. Corporate
assets consist primarily of cash and cash equivalents, the facilities of corporate headquarters and various other investments and assetsthat are not specific to each reporting segment.
Kyocera’s sales to KDDI and its consolidated subsidiaries, which are mainly recorded at the Telecommunications Equipmentgroup, for the years ended March 31, 2005, 2006 and 2007 comprised of 7.6%, 8.1% and 9.6% to consolidated net sales, respectively.
Information by reporting segment at and for the years ended March 31, 2005, 2006 and 2007 is summarized on the following
page:
F-32

Reporting segments(Yen in millions and U.S. dollars in thousands)
Years ended March 31,
2005
2006
2007
2007

Net sales:
Fine Ceramic Parts Group
Semiconductor Parts Group
Applied Ceramic Products GroupElectronic Device Group
Telecommunications Equipment Group
Information Equipment Group
Optical Equipment Group
OthersAdjustments and eliminations¥

Operating profit:
Fine Ceramic Parts Group
Semiconductor Parts Group
Applied Ceramic Products GroupElectronic Device Group
Telecommunications Equipment Group
Information Equipment Group
Optical Equipment Group
OthersCorporate
Equity in (losses) earnings of affiliates and unconsolidated subsidiaries
Adjustments and eliminations
Income from continuing operations before income taxes andminority interests
Depreciation and amortization:
Fine Ceramic Parts Group
Semiconductor Parts Group
Applied Ceramic Products GroupElectronic Device Group
Telecommunications Equipment Group
Information Equipment Group
Optical Equipment Group
OthersCorporate

73,711
127,960
93,879262,997
250,918
241,145
35,776
110,595(23,321)¥1,173,660¥

69,373 ¥ 81,326
135,299
152,292
117,555
131,103259,592
286,156
229,035
251,183
249,381
268,781
14,947
11,704
117,409125,656(19,047)(24,304)¥1,173,544 ¥1,283,897

$

¥

¥

$

11,535
17,55017,12935,406(14,918)
36,186(15,387)
9,705
97,206
8,480(1,678)5¥ 104,013¥ 117,237¥ 156,540

132,856
188,220
189,271377,0092,466
287,881(16,059)
74,373
1,236,017
72,61822,212(4,237)$ 1,326,610

4,320 ¥
4,126 ¥
4,500 $
38,135
8,922
10,623
12,533106,212
4,645
7,167
8,097
68,61921,723
21,202
21,537
182,517
8,101
8,692
9,075
76,907
8,953
12,641
16,326
138,356
2,909
1,635
655
5,551
4,197
3,989
6,764
57,322
2,039
2,996
2,575
21,822¥ 65,809 ¥ 73,071 ¥ 82,062 $ 695,441* Depreciation and amortization of KLC amounted to ¥100 million, ¥115 million and ¥120 million ($1,017 thousand) for the years
ended March 31, 2005, 2006 and 2007 respectively, are no longer included in the above table since the result of operations of KLC
are reported as discontinued operations. Therefore, the total amounts of depreciation and amortization in the above table differ
from the depreciation and amortization reported in the statements of cash flows.
F-33¥

11,014 ¥ 15,677
17,742
22,21021,87622,334
27,17044,487(1,706)291
26,412
33,970(5,774)(1,895)
8,983
8,776
105,717
145,850
12,7858,569(1,216)
2,621
(49)
(500)

689,2031,290,610
1,111,042
2,425,051
2,128,670
2,277,805
99,187
1,064,881(205,966)$10,880,483

Reporting segments(Yen in millions and U.S. dollars in thousands)
Years ended March 31,
2005
2006
2007
2007

Write-down of inventories:
Fine Ceramic Parts Group
Semiconductor Parts Group
Applied Ceramic Products GroupElectronic Device Group
Telecommunications Equipment Group
Information Equipment Group
Optical Equipment Group
OthersCorporate¥¥
Capital expenditures:
Fine Ceramic Parts Group
Semiconductor Parts Group
Applied Ceramic Products GroupElectronic Device Group
Telecommunications Equipment Group
Information Equipment Group
Optical Equipment Group
OthersCorporate

¥

¥

14
45
312
598
4,053
1,583
3,793
7
—
10,405

¥

4,394
7,111
7,584
19,453
5,170
11,751
2,248
2,387
3,062
63,160

¥

¥

¥

14
382
1,176
385
4,184
2,079
194
32
—
8,446

¥

4,182
24,136
14,545
21,562
2,639
12,389
199
5,654
3,554
88,860

¥

¥

¥

54
1,848
1,283
670
5,208
1,791
464
10
—
11,328$

7,447
11,432
7,330
19,812
3,800
11,962
322
5,452
2,339
69,896

$

$

$

458
15,661
10,873
5,678
44,135
15,1783,932
85—
96,00063,11096,881
62,119167,898
32,203
101,3732,729
46,204
19,822592,339(Yen in millions and U.S. dollars in thousands)
March 31,
2005
2006
2007
2007

Assets:Fine Ceramic Parts Group
Semiconductor Parts Group
Applied Ceramic Products GroupElectronic Device Group
Telecommunications Equipment Group
Information Equipment Group
Optical Equipment Group
Others¥Corporate
Investments in and advances to affiliates and unconsolidated subsidiaries
Adjustments and eliminations
Total assets
F-34

43,41479,711
85,595
357,797
98,877
178,596
31,338
218,423
1,093,751
682,725
30,623(61,580)¥1,745,519¥

43,822 ¥ 54,860
103,302106,359
112,422
125,266
383,150
412,979
87,34392,584
185,362
207,862
16,211
11,934
243,166
121,150
1,174,778
1,132,994
815,833
1,056,646
7,355
10,093(66,444)(69,269)¥1,931,522 ¥2,130,464$

464,915
901,348
1,061,576
3,499,822
784,610
1,761,542
101,136
1,026,695
9,601,644
8,954,627
85,534(587,025)$18,054,780

Information for revenue from external customers by destination and long-lived assets based on physical location as of and for theyears ended March 31,2005, 2006 and 2007 are summarized as follows:
Geographic segments(Yen in millions and U.S. dollars in thousands)
Years ended March 31,
2005
2006
2007
2007

Net sales:Japan
United States of America
Asia
EuropeOthers¥ 465,422 ¥ 467,035 ¥ 496,959 $ 4,211,517
248,333
253,696274,361
2,325,093
203,848
198,731
216,663
1,836,127
175,850
184,351
210,726
1,785,814
80,207
69,731
85,188
721,932¥1,173,660 ¥1,173,544 ¥1,283,897 $10,880,483(Yen in millions and U.S. dollars in thousands)
March 31,
2005
2006
2007
2007

Long-lived assets:
Japan
United States of America
Asia
EuropeOthers¥ 212,291 ¥ 251,555 ¥ 235,325 $ 1,994,280
35,712
36,24836,777
311,669
31,07037,30842,204
357,661
23,26922,344
24,398
206,763
3,294
3,711
4,635
39,280¥ 305,636 ¥ 351,166 ¥ 343,339 $ 2,909,653

There are no individually material countries with respect to revenue from external customers and long-lived assets in Asia, Europe
and Others.
19. EARNINGS PER SHARE
A reconciliation of the numerators and the denominators of basic and diluted earnings per share computations is as follows:(Yen in millions and U.S. dollars in thousands
except per share amounts)
Years ended March 31,
2005
2006
2007
2007

Income from continuing operations
Income from discontinued operations
Net income
Basic earnings per share:
Income from continuing operations
Income from discontinued operations
Net income
Diluted earnings per share:
Income from continuing operations
Income from discontinued operations
Net income¥42,657
3,251
45,908¥66,088
3,608
69,696¥101,329
5,175
106,504$858,720
43,856
902,576227.5217.34
244.86352.4419.24
371.68538.5227.51
566.03

4.56
0.24
4.80

227.4717.34
244.81352.2119.22
371.43537.3527.44
564.79

4.55
0.24
4.79

(shares in thousands)
Years ended March 31,
2005
2006
2007

Basic weighted average number of shares outstanding
Dilutive effect of stock options
Diluted weighted average number of shares outstanding

187,489 187,514 188,160
39
126
413
187,528 187,640 188,573

20. SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental information related to the Consolidated Statements of Cash Flows is as follows:(Yen in millions and U.S. dollars in thousands)
Years ended March 31,

Cash paid during the year:
Interest
Income taxes
Acquisitions of businesses:
Fair value of assets acquired
Fair value of liabilities assumed
Minority Interests
Cash acquired

F-35

2005

2006

2007

2007

¥ 2,33140,055¥ 1,933
53,037¥ 1,603
52,847$ 13,585
447,856¥ 8,478(2,683)(2,440)(561)¥ 2,794¥¥ 1,151
(333)
—
(62)
¥ 756

$

¥

65
(45)
(8)
(15)
(3)

9,754
(2,822)—(525)$ 6,407

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS
For the years ended March 31, 2005, 2006 and 2007

Balanceat Beginning of
PeriodYen in millions
Column C
Additions
Charged(Credited)to otherCharged to
Accounts
Costs andExpenses(A)¥

42,792
4,408
47,200

¥

548
8,473
¥ 9,021¥

21,0393,899
24,938

¥

696
7,039
¥ 7,735

¥

388
364
752

¥ (9,939)(7,590)¥(17,529)¥12,184
3,712¥15,896

12,184
3,712
15,896¥¥ (4,802)65¥ (4,737)¥ (3,204)(8,499)¥(11,703)¥ 4,982
3,089¥ 8,071

Column A

Column B

Description

For the year ended March 31, 2005:
Allowance for doubtful accounts
Allowance for sales returns
Total
For the year ended March 31, 2006:
Allowance for doubtful accounts
Allowance for sales returns
Total
For the year ended March 31, 2007:
Allowance for doubtful accounts
Allowance for sales returns
Total

¥
¥
¥
¥
¥

804
7,811
¥ 8,615¥¥

Column D

Column E

Deductions(B)

Balanceat End ofPeriod109
58
167¥(22,410)(9,040)¥(31,450)¥21,039
3,899¥24,938(A) Foreign currency translation adjustments, beginning balance of newly consolidated subsidiaries and the decrease by the sale ofKyocera Leasing Co., Ltd.
(B) Charge-offs
F-36

SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, Kyocera certifies that it meets all of therequirements for filing on Form 20-F/A and has duly caused this annual report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Kyocera Corporation(Company)
By /s/ Shoichi Aoki
Shoichi Aoki
Executive Officer
General Manager ofCorporate Financial & Accounting Group
October 5, 2007

INDEX OF EXHIBITS
Description

1.1

Articles of Incorporation (English translation) (incorporated by reference to the Registrant’s annual report on Form 20-F filedon June 29, 2006)

1.2

Share Handling Regulations of the Registrant (English translation) (incorporated by reference to the Registrant’s annual
report on Form 20-F filed on June 29, 2006)

1.3

Regulations of the Board of Directors of the Registrant (English translation) (incorporated by reference to the Registrant’s
annual report on Form 20-F filed on June 29, 2006)

1.4

Regulations of the Board of Corporate Auditors of the Registrant (English translation) (incorporated by reference to theRegistrant’s annual report on Form 20-F filed on July 5, 2007)

2.1

Specimen common stock certificate of the Registrant (incorporated by reference to the Registrant’s annual report on Form 20F filed on September 24, 2001)

2.2

Deposit Agreement, dated as of June 29, 1998 among Kyocera Corporation, Citibank N.A. as Depositary and all owners andholders from time to time of American Depositary Receipts, including the form of American Depositary Receipt, as amended
by Amendment No.1 thereto, dated as of January 5, 1999 (incorporated by reference to the Registrant’s annual report on
Form 20-F filed on September 24, 2001)

8.1

List of Significant Subsidiaries (incorporated by reference to the Registrant’s annual report on Form 20-F filed on July 5,
2007)

11.1

Code of Ethics (incorporated by reference to the Registrant’s annual report on Form 20-F filed on July 5, 2007)

12.1

Certification of the principal executive officer of the Registrant required by Rule 13a-14(a)12.2

Certification of the principal financial officer of the Registrant required by Rule 13a-14(a)13.1

Certification of the principal executive officer of the Registrant required by Rule 13a-14(b) and Section 1350 of Chapter 63
of Title 18 of the United States Code

13.2

Certification of the principal financial officer of the Registrant required by Rule 13a-14(b) and Section 1350 of Chapter 63 of
Title 18 of the United States Code

15.1

Consent of Kyoto Audit Corporation with respect to its report on the audit of the financial statements included in this Form
20-F/AExhibit 12.1
CERTIFICATION
I, Makoto Kawamura, certify that:1.

I have reviewed this Form 20-F/A (Amendment No.1) of Kyocera Corporation;2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material factnecessary to make the statements made, in light of the circumstances under which such statements were made, not misleadingwith respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in allmaterial respects the financial condition, results of operations and cash flows of the company as of, and for, the periods
presented in this report;

4.

The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in
Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

5.

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under
our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, ismade known to us by others within those entities, particularly during the period in which this report is being prepared;(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;(c)

Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report ourconclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by thisreport based on such evaluation; and(d)Disclosed in this report any change in the company’s internal control over financial reporting that occurred during theperiod covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s
internal control over financial reporting; andThe company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control overfinancial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons
performing the equivalent functions):(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reportingwhich are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial
information; and(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in thecompany’s internal control over financial reporting.

Date: October 5, 2007
/s/ Makoto Kawamura
Name: Makoto Kawamura
Title: President and Representative Director(Principal Executive Officer)

Exhibit 12.2
CERTIFICATION
I, Masahiro Umemura, certify that:1.

I have reviewed this Form 20-F/A (Amendment No. 1) of Kyocera Corporation;2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material factnecessary to make the statements made, in light of the circumstances under which such statements were made, not misleadingwith respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in allmaterial respects the financial condition, results of operations and cash flows of the company as of, and for, the periods
presented in this report;

4.

The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in
Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

5.

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under
our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, ismade known to us by others within those entities, particularly during the period in which this report is being prepared;(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;(c)

Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report ourconclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by thisreport based on such evaluation; and(d)Disclosed in this report any change in the company’s internal control over financial reporting that occurred during theperiod covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s
internal control over financial reporting; andThe company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control overfinancial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons
performing the equivalent functions):(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reportingwhich are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial
information; and(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in thecompany’s internal control over financial reporting.

Date: October 5, 2007
/s/ Masahiro Umemura
Name: Masahiro Umemura
Title: Vice Chairman
and Representative Director(Principal Financial Officer)

Exhibit 13.1
CERTIFICATION
Pursuant to 18 U.S.C. § 1350, the undersigned officer of Kyocera Corporation (the “Company”) hereby certifies, to suchofficer’s knowledge, that the Company’s annual report on Form 20-F for the year ended March 31, 2007 as amended by this Form
20F/A (Amendment No. 1) (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the
Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of the Company.
Dated: October 5, 2007
/s/ Makoto Kawamura
Name: Makoto Kawamura
Title: President and Representative Director(Principal Executive Officer)

Exhibit 13.2
CERTIFICATION
Pursuant to 18 U.S.C. § 1350, the undersigned officer of Kyocera Corporation (the “Company”) hereby certifies, to suchofficer’s knowledge, that the Company’s annual report on Form 20-F for the year ended March 31, 2007 as amended by this Form
20/A (Amendment No. 1) (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the
Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of the Company.
Dated: October 5, 2007
/s/ Masahiro Umemura
Name: Masahiro Umemura
Title: Vice Chairman
and Representative Director(Principal Financial Officer)

Exhibit 15.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (File Nos. 33-84904, 33-98132, 3399134, 33-99140, 33-99150, 33-99154, 333-109200, 333-118678, 333-127976 and 333-138316) of our report dated June 28, 2007
relating to the financial statements, financial statement schedule, management’s assessment of the effectiveness of internal control
over financial reporting and the effectiveness of internal control over financial reporting which appear in Kyocera’s Annual Report on
Form 20-F/A for the year ended March 31, 2007.
/s/ Kyoto Audit Corporation
Kyoto Audit Corporation
Kyoto, Japan
October 5, 2007