Alpine 2011 Annual Report Download - page 28

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28
9. 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, 2011, 2010 and 2009.
Reconciliation of the statutory tax rate and the Company’s effective tax rate for the year ended March 31, 2009 was not described due to loss before
income taxes and minority interests.
The main components of difference between the statutory tax rate and the Company’s effective tax rate for the year ended March 31, 2010 were the
taxes against income before income taxes and minority interests ¥12 million were ¥1,292 million and the main components of the taxes were increase of
valuation reserve by ¥1,257 million and resident tax based on per capita by ¥22 million.
The following table summarizes the significant differences between the statutory tax rate and the Companies’ effective tax rate for financial statement
purpose for the years ended March 31, 2011.
The significant components of the Companies’ deferred tax assets and liabilities as of March 31, 2011 and 2010 were as follows:
Millions of Yen
Thousands of U.S. Dollars
2011 2010 2011
Deferred tax assets:
Provision for product warranties ¥ 913 ¥860 $ 10,980
Depreciation 2,462 1,504 29,609
Provision for retirement benefits 209 163 2,514
Accrued expenses 185 94 2,225
Elimination of unrealized profit 106 92 1,275
Carried deficit 2,511 4,472 30,199
Other 2,999 2,026 36,067
Valuation reserve (6,038) (6,485) (72,616)
Offset allowed against deferred tax liabilities (943) (716) (11,341)
Total deferred tax assets ¥ 2,404 ¥ 2,010 $ 28,912
Deferred tax liabilities:
Valuation difference on available-for-sale securities ¥ 3,264 ¥ 3,522 $ 39,254
Other 2,504 2,147 30,114
Offset allowed against deferred tax assets (943) (716) (11,341)
Total deferred tax liabilities ¥ 4,825 ¥ 4,953 $ 58,027
Net deferred tax assets(liabilities) ¥(2,421) ¥(2,943) $(29,115)
2011
Statutory tax rate 40.4%
Non-taxable dividend income (9.2)
Differences in foreign subsidiaries (6.6)
Non-deductible expenses 2.4
Equity in earnings of affiliated company (1.5)
Valuation reserve (7.1)
Dividend income of subsidiaries 10.0
Other 0.0
Effective tax rate 28.4%