Oki 2009 Annual Report Download - page 42

40 Annual Report 2009
Net deferred tax assets are included in the consolidated balance sheets as follows:
Millions of yen
Thousands of
U.S. dollars
2009 2008 2009
Other current assets ¥3,772 ¥ 7,504 $38,489
Other assets 3,905 4,922 39,846
Other current liabilities (27) (29) (275)
Net deferred tax assets ¥7,650 ¥12,398 $78,061
Income taxes applicable to the Company and its domestic consolidated subsidiaries comprised corporation tax, inhabitants’ taxes and enterprise tax,
which, in the aggregate, resulted in a statutory tax rate of approximately 41% for the years ended March 31, 2009, 2008 and 2007. Income taxes of
the overseas consolidated subsidiaries are based generally on the tax rates applicable in their respective countries of incorporation. A reconciliation
between the statutory tax rate and the effective tax rates as a percentage of income before income taxes, minority interests and equity in earnings
of affiliates for the years ended March 31, 2008 is summarized as follows, and the corresponding reconciliation for the year ended March 31, 2009
and 2007 has been omitted since loss before income taxes, minority interests and equity in losses of affiliates was recorded.
2009 2008 2007
Statutory tax rate —41.0% —
Additions to (deductions from) income taxes resulting from:
Increase in valuation allowance for deferred tax assets —80.9 —
Permanent nondeductible differences such as entertainment expenses —10.8 —
Permanent differences not recognized for tax purposes such as dividends received —(7.1) —
Nondeductible temporary differences arising form unrealized profit —(18.2) —
Differences between the Company's statutory tax rate and the overseas consolidated
subsidiaries' effective tax rates —(9.3) —
Other, net —(16.8) —
Effective tax rates —81.3% —
9.
SHAREHOLDERS’ EQUITY
Corporation Law of Japan (the “Law”) provides that amounts from additional paid-in capital and retained earnings may be distributed to the share-
holders at any time by resolution of the shareholders or by the Board of Directors if certain provisions are met subject to the extent of the appli-
cable sources of such distributions. The Law further provides that amounts equal to 10% of such distributions be transferred to the capital reserve
included in additional paid-in capital or the legal reserve included in retained earnings based on the applicable sources of such distributions until
the sum of the capital reserve and the legal reserve equals 25% of the capital stock account.
Pursuant to a resolution of the Board of Directors at a meeting held on May 23, 2006, the Company issued unsecured convertible bonds with
stock acquisition rights (the total amount of the bond issuance was ¥18,000 million). Unsecured convertible bonds with stock acquisition rights
which were converted fully to shares of common stock as a result of the exercise of rights held by shareholders during the year ended March 31,
2007. As a result, the common stock and additional paid-in capital increased during the year ended March 31, 2007.
10.
DEPRECIATION
Depreciation of property, plant and equipment for the years ended March 31, 2009, 2008 and 2007 was as follows:
Millions of yen
Thousands of
U.S. dollars
2009 2008 2007 2009
¥18,768 ¥26,841 ¥27,263 $191,510