Oki 2000 Annual Report Download - page 19

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Net deferred tax assets are included in the consolidated
balance sheets as follows:
Thousands of
Millions of yen U.S. dollars
Other current assets ................................... ¥09,845 $092,886
Other assets ............................................... 9,115 85,996
Other current liabilities ............................... 1 12
Other long-term liabilities ........................... 6 58
Net deferred tax assets .............................. ¥18,954 $178,812
Total income tax benefits for the year ended March 31, 2000
resulted in an effective tax benefit rate of 78.3%. The difference
between the aggregate statutory rate in Japan (42.0%) and the
effective rates on pretax income is summarized as follows:
Statutory rate ...................................................................... 42.0%
Addition (deduction) in income taxes resulting from:
Increase in valuation allowance recognized
on loss of subsidiaries .................................................. 17.8%
Intercompany profit in excess of taxable income .......... 14.2%
Permanent differences nondeductible such as
entertainment expense ................................................. 10.3%
Permanent differences unrecognized for tax purpose
such as dividends received .......................................... (8.1%)
Other, net ......................................................................... 2.1%
Effective tax rate................................................................. 78.3%
9. Special reserves
Special reserves are stated in accordance with the Special
Taxation Measures Law and the Commercial Code of Japan.
The reserves are deducted from taxable income when provided
and reversed to taxable income in subsequent years, which
results in a deferral of income tax payments.
10. Depreciation
The provision for depreciation of property, plant and equip-
ment for the years ended March 31, 2000, 1999 and 1998 was
as follows:
Thousands of
Millions of yen U.S. dollars
2000 1999 1998 2000
¥37,771 ¥42,910 ¥60,018 $356,335
11. Research and development expenses
Research and development expenses for the years ended
March 31, 2000, 1999 and 1998, were as follows:
Thousands of
Millions of yen U.S. dollars
2000 1999 1998 2000
¥29,509 ¥40,912 ¥42,380 $278,389
Convertible bonds, unless previously redeemed, are convert-
ible into shares of common stock of the Company at the
following conversion prices:
Conversion
price
per share Conversion period
2.2% bonds in
yen due 2004 .................. ¥1,050.00 November 1, 1988
.......................................... to March 30, 2004
1.8% bonds in
yen due 2001 .................. ¥1,145.00 November 1, 1989
.......................................... to September 27, 2001
3.5% bonds in
U.S. dollars due 1999 ..... ¥0,766.70 October 1, 1984
.......................................... to September 22, 1999
The bonds are redeemable at the Company’s option, in whole
or in part, at the following redemption prices together with the
accrued interest to the date of redemption:
Redemption price
(% of the
principal amount) Redeemable on or after
2.2% bonds due 2004 ..... 106%–100% April 1, 1997
1.8% bonds due 2001 ..... 105%–100% October 1, 1995
3.5% bonds in
U.S. dollars due 1999 .... 104%–1001/2% September 30, 1987
Under the terms of the issues, the conversion prices of the
convertible bonds are subject to adjustment in certain cases
which include stock splits.
A sufficient number of shares of common stock is reserved
for the conversion of all outstanding convertible bonds.
The aggregate annual maturities of long-term debt subsequent
to March 31, 2000 are summarized as follows:
Thousands of
Year ending March 31 Millions of yen U.S. dollars
2001 ........................................................... ¥038,166 $0,360,063
2002 ........................................................... 48,084 453,623
2003 ........................................................... 27,368 258,193
2004 ........................................................... 23,402 220,782
2005 and thereafter ................................... 156,813 1,479,373
................................................................ ¥293,835 $2,772,036
8. Income taxes
Deferred tax assets (liabilities) at March 31, 2000 consisted of
the following:
Thousands of
Millions of yen U.S. dollars
Deferred tax assets:
Loss carryforwards .................................. ¥30,281 $285,673
Nondeductible accrued bonuses ............ 2,320 21,889
Nondeductible severance indemnities .... 1,940 18,304
Elimination of intercompany profit ........... 1,654 15,612
Other ........................................................ 2,407 22,713
Gross deferred tax assets ........................... 38,604 364,194
Less: Valuation allowance ........................... (11,594) (109,386)
Total deferred tax assets ............................. 27,009 254,807
Deferred tax liabilities
Tax purpose reserve (special reserve) ....... (7,539) (71,130)
Other ........................................................... (515) (4,864)
Gross deferred tax liabilities ....................... (8,055) (75,995)
Net deferred tax assets............................... ¥18,954 $178,812