Epson 2009 Annual Report Download - page 68

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67
Prior to April 1, 2008, Epson had provided for deferred income taxes on all undistributed earnings of
overseas subsidiaries and affiliates. However, Epson reversed the part of deferred income taxes on all
undistributed earnings of overseas subsidiaries and affiliates for the year ended March 31, 2009, due to
corporate tax reform.
The differences between Epson’s statutory income tax rate and the income tax rate reflected in the
consolidated statements of income were reconciled as follows:
Year ended March 31
2008 2009
Statutory income tax rate 40.4% 40.4%
Reconciliation:
Changes in valuation allowance 15.2 (99.0)
Reversal of deferred income taxes on undistributed earnings of
overseas subsidiaries due to corporate tax reform - 21.8
Entertainment expenses, etc. permanently non-tax deductible 1.9 (1.5)
Changes in income tax rate of foreign subsidiaries 1.2 -
Unrecognized tax benefit for inter-company profit elimination - 7.8
Other (0.6) 1.3
Income tax rate per statements of operations 58.1% (29.2%)
14. Selling, general and administrative expenses
The significant components of selling, general and administrative expenses for the year ended March 31,
2009, were as follows:
Millions of yen
Thousands of
U.S. dollars
Year ended March 31
Year ended
March 31,
2008 2009 2009
Salaries and wages ¥83,615 ¥75,978 $773,470
Advertising 26,263 22,075 224,727
Sales promotion 27,666 22,881 232,932
Research and development costs 43,263 43,948 447,398
Shipping costs 19,987 16,333 166,273
Provision for doubtful accounts 267 276 2,809
Other 109,806 109,540 1,115,141
Total ¥310,871 ¥291,031 $2,962,750