Canon 2002 Annual Report Download - page 66

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64
The Company and its domestic subsidiaries are subject to a
number of taxes based on income, which in the aggregate
resulted in a normal tax rate of approximately 42.0%.
2002 2001 2000
Japanese normal income tax rate 42.0% 42.0% 42.0%
Increase (reduction) in income taxes resulting from:
Expenses not deductible for tax purposes 0.5 1.4 0.9
Tax benefits not recognized on operating losses of subsidiaries 0.2 0.9 0.9
Income of foreign subsidiaries taxed at lower than Japanese normal tax rate (2.5) (2.0) (1.9)
Tax credit for increased research and development expenses (1.6) (2.1) (1.3)
Other 2.2 0.7 (2.2)
Effective income tax rate 40.8% 40.9% 38.4%
Net deferred income tax assets and liabilities are reflected
on the accompanying consolidated balance sheets under the
following captions:
Thousands of
Millions of yen U.S. dollars
2002 2001 2002
Prepaid expenses and other current assets ¥85,379 82,951 $ 711,491
Other assets 170,673 160,821 1,422,275
Other current liabilities (1,213) (1,517) (10,108)
Other noncurrent liabilities (16,120) (10,234) (134,333)
¥238,719 232,021 $ 1,989,325
CANON INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
A reconciliation of the Japanese normal income tax rate and
the effective income tax rate as a percentage of income before
income taxes is as follows: