Alpine 2008 Annual Report Download - page 28

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28
The significant components of the Companies’ deferred tax assets and liabilities as of March 31, 2008 and 2007 were as follows:
2008 2007 2008
Deferred tax assets:
Provision for warranty ¥1,041 ¥1,450 $10,390
Depreciation 2,174 2,344 21,699
Provision for employees' severance and retirement benefits 164 184 1,637
Accrued expenses 138 219 1,377
Elimination of unrealized profit 796 769 7,945
Other 2,921 2,692 29,155
Valuation reserve (304) (293) (3,034)
Offset allowed against deferred tax liabilities (3,241) (3,014) (32,349)
Total deferred tax assets ¥3,689 ¥4,351 $36,820
Deferred tax liabilities:
Unrealized holding gains and losses on securities ¥3,059 ¥5,289 $30,532
Loss on limited partnership in a consolidated subsidiary — 18 —
Other 1,595 1,979 15,920
Offset allowed against deferred tax assets (3,241) (3,014) (32,349)
Total deferred tax liabilities ¥1,413 4,272 14,103
Net deferred tax assets ¥2,276 ¥79 $22,717
Thousands of U.S. Dollars
Millions of Yen
10. Income Taxes
The Companies are subject to a number of taxes based on income, which, in the aggregate, indicate statutory rates in Japan of approximately 40% for
the years ended March 31, 2008, 2007 and 2006.
The following table summarizes the significant differences between the statutory tax rate and the Companies’ effective tax rate for financial statement
purposes for the years ended March 31, 2006. Reconciliation of the statutory tax rate and the Company’s effective tax rate for the year ended March 31,
2008 and 2007 were not required due to the small difference:
2006
Statutory tax rate 40.4%
Research and development cost tax credit (2.5)
Non-taxable dividend income (0.2)
Foreign tax credit (2.3)
Differences in overseas subsidiaries (2.8)
Non-deductible expenses 0.6
Equity in earnings of affiliated company 1.6
Tax refund (0.9)
Valuation reserve 1.0
Other 1.6
Effective tax rate 36.5%