Omron 2003 Annual Report Download - page 48

The approximate effect of temporary differences and tax credit and loss carryforwards that gave rise to deferred
tax balances at March 31, 2003 and 2002 were as follows:
Millions of yen Thousands of U.S. dollars
2003 2002 2003
Deferred Deferred Deferred Deferred Deferred Deferred
tax tax tax tax tax tax
assets liabilities assets liabilities assets liabilities
Inventory valuation ....................................... ¥3,761 ¥ — ¥3,521 ¥ — $31,342 $ —
Accrued bonuses and vacations .................. 4,682 — 3,492 — 39,017 —
Termination and retirement benefits ............ 12,319 — 12,912 — 102,658 —
Enterprise taxes............................................ 150 — 164 — 1,250 —
Intercompany profits .................................... 2,547 — 2,540 — 21,225 —
Marketable securities ................................... 480 — —3,164 4,000 —
Property, plant and equipment..................... 2,369 — 2,789 — 19,742 —
Allowance for doubtful receivables .............. 2,531 99 2,711 180 21,092 825
Gain on sale of land...................................... —1,050 —1,311 —8,750
Minimum pension liability adjustment .......... 34,431 — 15,369 — 286,925 —
Other temporary differences ........................ 10,827 1,792 11,871 1,639 90,225 14,933
Tax credit carryforwards .............................. 4,124 — 3,689 — 34,367 —
Operating loss carryforwards ....................... 16,226 — 12,961 — 135,217 —
Subtotal ........................................................ 94,447 2,941 72,019 6,294 787,060 24,508
Valuation allowance...................................... (8,348) — (9,574) — (69,567) —
Total ...................................................... ¥86,099 ¥2,941 ¥62,445 ¥6,294 $717,493 $24,508
The total valuation allowance decreased by ¥1,226 million ($10,217 thousand) in 2003 and increased by ¥1,779
million and ¥1,310 million in 2002 and 2001, respectively.
As of March 31, 2003, the Company and certain subsidiaries had operating loss carryforwards approximating
¥40,408 million ($336,733 thousand) available for reduction of future taxable income, the majority of which expire in
2008.
The Company has not provided for Japanese income taxes on unremitted earnings of subsidiaries to the extent
that they are believed to be indefinitely reinvested. The unremitted earnings of the foreign subsidiaries which are
considered to be indefinitely reinvested and for which Japanese income taxes have not been provided were
¥62,094 million ($517,450 thousand) and ¥53,928 million at March 31, 2003 and 2002, respectively. It is not practi-
cable to estimate the amount of unrecognized deferred Japanese income taxes on these unremitted earnings.
Dividends received from domestic subsidiaries are expected to be substantially free of tax.
Net sales and total assets of foreign subsidiaries for the years ended March 31, 2003, 2002 and 2001 were as
follows:
Thousands of
Millions of yen U.S. dollars
2003 2002 2001 2003
Net sales ............................................................................ ¥194,498 ¥176,096 ¥170,434 $1,620,817
Total assets........................................................................ ¥158,300 ¥146,734 ¥141,966 $1,319,167
The Company accounts for its earnings per share in accordance with SFAS No. 128, “Earnings per Share.” Basic
net income (loss) per share has been computed by dividing net income (loss) available to common shareholders by
the weighted-average number of common shares outstanding during each year. Diluted net income (loss) per share
reflects the potential dilution of convertible bonds and stock options, and has been computed by the if-converted
method for convertible bonds and by the treasury stock method for stock options.
A reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share compu-
tations is as follows:
Thousands of
Millions of yen U.S. dollars
2003 2002 2001 2003
Income (loss) before cumulative
effect of accounting change ............................................ ¥511 ¥(16,157) ¥22,297 $4,258
Effect of dilutive securities:
Convertible bonds, due 2004 ..................................... — — 325 —
Diluted net income (loss) ................................................ ¥511 ¥(16,157) ¥22,622 $4,258
12. Foreign
Operations
13. Per Share Data
46 • Omron Corporation