Nikon 2007 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2007 Nikon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 54

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
40 NIKON ANNUAL REPORT 2007
Deferred tax liabilities:
Deferred gains on sales of property to be replaced
Unrealized gain on available-for-sale securities
Undistributed earnings of foreign subsidiaries
Other
Total
Net deferred tax assets
Thousands of
U.S. Dollars
2007
47,433
127,872
53,066
5,519
$ 233,890
$ 253,314
2006
6,137
16,679
4,525
583
¥ 27,924
¥ 26,059
2007
5,599
15,095
6,264
652
¥ 27,610
¥ 29,904
Millions of Yen
A valuation allowance of ¥1,859 million ($15,746 thousand) in 2007 and ¥2,715 million in 2006 were deducted from the amounts
calculated above, respectively.
10. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses for the fiscal years ended March 31, 2007 and 2006 principally consisted of the following:
Advertising expenses
Provision of warranty costs
Employees’ salaries
Net periodic retirement benefit cost
Employees’ bonuses and others
Research and development costs
Thousands of
U.S. Dollars
2007
$ 489,028
41,546
281,727
23,231
141,719
399,981
2006
¥ 46,585
7,130
30,503
4,024
15,012
37,139
2007
¥ 57,730
4,904
33,258
2,742
16,730
47,218
Millions of Yen
Deferred tax assets:
Write-down of inventories
Warranty reserve
Liability for employees’ retirement benefits
Depreciation and amortization
Net operating loss carryforwards
Accrued bonus
Other
Total
Thousands of
U.S. Dollars
2007
$ 151,371
21,785
71,427
119,789
79
38,160
84,593
$ 487,204
2006
¥ 17,647
2,253
9,326
14,296
143
4,076
6,242
¥ 53,983
2007
¥ 17,869
2,572
8,432
14,141
9
4,505
9,986
¥ 57,514
Millions of Yen
The tax effects of significant temporary differences and loss carry-forwards which result in deferred tax assets and liabilities at March 31,
2007 and 2006, were as follows:
11. INCOME TAXES
The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted in a
normal effective statutory tax rate of approximately 40.6% for the fiscal years ended March 31, 2006 and 2007.
Years ended March 31
A reconciliation between the normal effective statutory tax rate for the fiscal years ended March 31, 2007 and 2006, and the actual
effective tax rates reflected in the consolidated statements of income were as follows:
Normal statutory tax rate
Tax credit for research and development costs
Tax difference of consolidated subsidiaries
Tax exemption for foreign subsidiaries
Consolidated adjustment on unrealizable profits in inventories
Tax effect on retained earnings for foreign subsidiaries
Other-net
Actual effective tax rate
2006
40.6%
(2.6)
(3.8)
(3.2)
(4.9)
4.5
(1.3)
29.3%
2007
40.6%
(2.7)
(2.1)
2.0
(0.2)
37.6%