Omron 2001 Annual Report Download - page 41

9. Other Expenses
(Income), net
10. Income Taxes
Share Buyback and Retirement
During 2001, the Company reduced the number of authorized shares as a result of the buyback and subse-
quent retirement of 8,000,000 shares of common stock.
Other expenses (income), net for the years ended March 31, 2001, 2000 and 1999 consisted of the following:
Thousands of
Millions of yen U.S. dollars
2001 2000 1999 2001
Loss on relocation ........................................................... ¥2,312 ¥— ¥— $18,645
Loss on impairment of investment
securities and other assets.......................................... 2,460 2,072 — 19,839
Net loss (gain) on sales and disposal of
property, plant and equipment,
excluding loss on relocation ........................................ (43) 412 458 (347)
Net gain on sales of short-term investments
and investment securities............................................ (3,703) (2,783) (1,725) (29,863)
Other, net......................................................................... 1,786 1,852 1,239 14,403
Total............................................................................. ¥2,812 ¥ 1,553 ¥ (28) $22,677
During the year ended March 31, 2001 the Company recognized a net loss of ¥2,312 million ($18,645 thou-
sand) as a result of an office relocation plan, primarily consisting of the relocation of the headquarters within
Kyoto, Japan.
The provision for income taxes for the years ended March 31, 2001, 2000 and 1999 consisted of the following:
Thousands of
Millions of yen U.S. dollars
2001 2000 1999 2001
Current income tax expense ........................................... ¥22,720 ¥14,857 ¥12,426 $183,226
Deferred income tax benefit,
exclusive of the following .............................................. (5,367) (5,809) (8,591) (43,282)
Change in the beginning of the year balance of
the valuation allowance for deferred tax assets............ (35) — (142) (283)
Adjustments of deferred tax assets and liabilities
for enacted changes in tax rates................................... —— 2,351 —
Total ......................................................................... ¥17,318 ¥ 9,048 ¥ 6,044 $139,661
The effective income tax rates of the Companies differ from the normal Japanese statutory rates as follows for
the years ended March 31:
2001 2000 1999
Normal Japanese statutory rates......................................................................... 42.0% 42.0% 48.0%
Increase (decrease) in taxes resulting from:
Permanently non-deductible items .................................................................. 2.4 2.8 30.2
Losses of subsidiaries for which no tax benefit was provided ........................ 2.6 2.9 10.1
Difference in subsidiaries’ tax rates................................................................. (2.5) (3.0) (18.1)
Change in the beginning of the year balance of
the valuation allowance for deferred tax assets ............................................ (0.1) — (1.7)
Effects of enacted change in tax rates ............................................................ —— 28.5
Recognition of tax credit carryforwards of an overseas subsidiary................. —— (28.5)
Other, net ......................................................................................................... (1.1) (1.7) 4.8
Effective tax rates......................................................................................... 43.3% 43.0% 73.3%
Omron Corporation 39