( Thousand) Non-consolidated Statements of Income   2006 73th term 2007 74th term Account   Amount Amount Net sales   23,357,338 23,504,739 Cost of sales   19,107,323 19,176,840 Gross margin   4,250,015 4,327,898 Selling, general and administrative expenses   3,919,854 3,877,219 Operating income   330,161 450,679 Non-operating income   91,688 83,243 Interest payments received   39 29   Divident payments received   21,791 25,966   Rental income   48,447 48,447   Insurance payments received   9,770 -   Other non-operating income   11,638 8,799   Non-operating expenses   51,034 36,099   Interest   3,471 5,830   Losses on sale of notes receivable   6,013 6,187   Depreciation on leased assets   25,187 21,195   Cost of recovery of loan assets   11,853 -   Other non-operating expenses   4,507 2,885   Ordinary income   370,815 497,823 Extraordinary income   203,678 33,696 Income from sale of fixed assets   - 2,924 Gain on sale of investment in securities   197,841 8,742 Reversal of allowance for doubtful accounts   5,837 5,029 Reversal of allowance for losses   - 17,000 Extraordinary losses   31,712 1,439 Losses on disposal of fixed assets   3,880 1,188 Loss from revaluation of golf club memberships   - 251 Transfer to allowance for doubtful accounts   25,831 - Loss on impairment   2,000 - Net income before income taxes   542,781 530,081 Corporate, inhabitant, and business taxes   234,800 211,700 Deferred taxes   81,774 39,463 Net income   226,207 278,918 Unappropriated retained earnings brought forward   290,081 - Interim dividends   46,726 - Unappropriated retained earnings   469,562 -