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8. INCOME TAXES
Deferred tax assets and liabilities at March 31, 2010 and 2009 consisted of the following:
Deferred tax assets:
Loss carryforwards
Nondeductible retirement benefits
Nondeductible write-downs of inventories
Nondeductible accrued bonuses
Nondeductible loss on impairment of fixed assets
Excess of allowance for doubtful accounts
Other
Gross deferred tax assets
Less: Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Nondeductible unrealized gain on contribution of securities
to a pension trust
Net unrealized holding gain on other securities
Other
Total deferred tax liabilities
Net deferred tax assets
2010 2009 2010
¥ 30,867
18,519
3,068
2,450
1,948
1,521
6,156
64,531
(54,432)
10,098
(1,567)
(1,515)
(47)
(3,130)
¥ 6,968
¥ 30,344
16,656
3,495
2,410
1,742
1,466
4,219
60,334
(51,015)
9,319
(1,567)
(31)
(69)
(1,668)
¥ 7,650
$ 331,903
199,129
32,989
26,344
20,946
16,354
66,193
693,881
(585,290)
108,580
(16,849)
(16,290)
(505)
(33,655)
$ 74,924
Millions of yen
Thousands of
U.S. dollars
Net deferred tax assets are included in the consolidated balance sheets as follows:
Other current assets
Other assets
Other current liabilities
Net deferred tax assets
2010 2009 2010
¥ 4,008
2,960
—
¥ 6,968
¥ 3,772
3,905
(27)
¥ 7,650
$ 43,096
31,827
—
$ 74,924
Millions of yen
Thousands of
U.S. dollars
Income taxes applicable to the Company and domestic consolidated subsidiaries comprised corporation tax, inhabitants’ taxes and enter-
prise tax, which, in the aggregate, resulted in a statutory tax rate of approximately 41% for the years ended March 31, 2010, 2009 and
2008. 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, 2010 and 2008 are summarized as follows, and the correspon-
ding reconciliation for the year ended March 31, 2009 has been omitted since loss before income taxes, minority interests and equity in
losses of affiliates was recorded.
Statutory tax rate
Additions to (deductions from) income taxes resulting from:
Increase (decrease) in valuation allowance for deferred tax assets
Permanent nondeductible differences such as entertainment expenses
Permanent differences not recognized for tax purposes
such as dividends received
Nondeductible temporary differences arising form unrealized profit
Differences between the Company’s statutory tax rate
and the overseas consolidated subsidiaries’ effective tax rates
Influence on the offset of internal transaction among the consolidated group
Other, net
Effective tax rates
2010 2009 2008
41.0%
(20.9)
5.2
(3.0)
(7.7)
—
4.9
7.9
27.4%
—
—
—
—
—
—
—
—
—
41.0%
80.9
10.8
(7.1)
(18.2)
(9.3)
—
(16.8)
81.3%