Casio 2007 Annual Report Download - page 37

35
Annual Report 2007
0% unsecured bonds with stock acquisition rights provide, among other conditions, for conversion into shares of common
stock at the conversion prices per share of ¥1,642 ($13.92), subject to change in certain circumstances. In fiscal 2007, 0% unse-
cured bonds with stock acquisition rights had been all converted.
The annual maturities of long-term debt at March 31, 2007 were as follows:
Thousands of
Year ending March 31 Millions of Yen U.S. Dollars
2008 .......................................................................................................... ¥32,000 $271,186
2009 .......................................................................................................... 26,500 224,576
2010 .......................................................................................................... 10,500 88,983
2011 .......................................................................................................... 450 3,814
2012 .......................................................................................................... 10,000 84,746
The line of credit with the main financial institutions agreed as of March 31, 2007 and 2006 was as follows:
Thousands of
Millions of Yen U.S. Dollars
2007 2006 2007
Line of credit .............................................................................................. ¥38,500 ¥50,500 $326,271
Unused....................................................................................................... 38,500 50,500 326,271
8. Income Taxes
The Company and consolidated domestic subsidiaries used the statutory income tax rate of 40.7% for calculation of deferred
income tax assets and liabilities at March 31, 2007 and 2006.
The following table summarizes the significant differences between statutory tax rate and the Group’s tax rate for financial
statement purposes for the years ended March 31, 2007 and 2006:
2007 2006
Statutory tax rate .............................................................................................................................. 40.7% 40.7%
Increase (Reduction) in tax resulting from:
Nondeductible expenses (Entertainment, etc.).............................................................................. 0.4 0.3
Nontaxable income (Dividends received deduction, etc.) .............................................................. (2.9) (1.5)
Difference in statutory tax rate (included in foreign subsidiaries) .................................................. (2.0) (1.9)
Income tax credits........................................................................................................................ (3.7) (4.4)
Effect of elimination of dividends income..................................................................................... 3.9 2.6
Other........................................................................................................................................... (0.2) (0.1)
Effective tax rate ............................................................................................................................... 36.2% 35.7%
Significant components of deferred tax assets and liabilities as of March 31, 2007 and 2006 were as follows:
Thousands of
Millions of Yen U.S. Dollars
2007 2006 2007
Deferred tax assets:
Employees’ severance and retirement benefits ....................................... ¥6,302 ¥6,433 $53,407
Intangible fixed assets............................................................................ 3,529 2,181 29,907
Accrued expenses (bonuses to employees)............................................. 3,142 3,042 26,627
Inventories............................................................................................. 2,568 2,402 21,763
Net operating loss carryforwards ........................................................... 2,521 2,229 21,364
Property, plant and equipment .............................................................. 1,826 1,670 15,475
Other .................................................................................................... 10,474 9,274 88,762
Gross deferred tax assets ............................................................................ 30,362 27,231 257,305
Valuation allowance ................................................................................... (3,881) (2,772) (32,890)
Total deferred tax assets ........................................................................ 26,481 24,459 224,415
Deferred tax liabilities:
Unrealized holding gains on securities ................................................... (6,029) (6,775) (51,093)
Effect of valuation difference................................................................. (1,878) (1,878) (15,915)
Property, plant and equipment .............................................................. (219) (233) (1,856)
Other .................................................................................................... (183) (217) (1,551)
Total deferred tax liabilities .................................................................... (8,309) (9,103) (70,415)
Net deferred tax assets .......................................................................... ¥18,172 ¥15,356 $154,000