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14 INCOME TAXES
For the year ended March 31, 2012, since loss before income taxes was reported, the information on the reconcilia-
tion from statutory tax rate to effective tax rate is not provided in accordance with the applicable provisions of
Japanese GAAP.
The effective tax rate reflected in the consolidated statement of operations for the year ended March 31, 2011
differs from the statutory tax rate for the following reasons.
For the year ended March 31 2011
Statutory tax rate 40.4%
Equity in net income of affiliated companies (31.8)
Valuation allowance 453.8
Dividend received from foreign subsidiaries eliminated in consolidation 9.1
Other 0.1
Effective tax rate 471.6%
Deferred tax assets and liabilities reflect the estimated tax effects of loss carryforwards and accumulated
temporary differences between assets and liabilities for financial accounting purposes and those for tax purposes.
The significant components of deferred tax assets and liabilities as of March 31, 2012 and 2011 were as follows:
Millions of yen
Thousands of
U.S. dollars
As of March 31 2012 2011 2012
Deferred tax assets:
Allowance for doubtful receivables ¥ 1,619 ¥ 1,981 $ 19,744
Employees’ severance and retirement benefits 25,390 30,723 309,634
Loss on impairment of long-lived assets 8,740 9,866 106,585
Accrued bonuses and other reserves 19,855 27,797 242,134
Inventory valuation 7,075 7,111 86,280
Valuation loss on investment securities, etc. 1,589 1,182 19,378
Net operating loss carryforwards 128,920 92,015 1,572,195
Other 40,894 55,409 498,708
Total gross deferred tax assets 234,082 226,084 2,854,658
Less valuation allowance (178,423) (123,598) (2,175,890)
Total deferred tax assets 55,659 102,486 678,768
Deferred tax liabilities:
Reserves under Special Taxation Measures Law (315) (5,906) (3,841)
Other (7,267) (6,607) (88,622)
Total deferred tax liabilities (7,582) (12,513) (92,463)
Net deferred tax assets ¥ 48,077 ¥ 89,973 $ 586,305
The net deferred tax assets are included in the following accounts in the consolidated balance sheet:
Millions of yen
Thousands of
U.S. dollars
As of March 31 2012 2011 2012
Current assets—Deferred taxes ¥45,997 ¥58,307 $560,939
Investments and other assets—Deferred taxes 6,035 32,558 73,597
Current liabilities—Other current liabilities (69) (54) (841)
Long-term liabilities—Other long-term liabilities (3,886) (838) (47,390)
Net deferred tax assets ¥48,077 ¥89,973 $586,305
Mazda Annual Report 2012 49