Sharp 2015 Annual Report Download - page 39

Notes to the Consolidated Financial Statements
4. Income Taxes
The Company is subject to a number of different income taxes which, in the aggregate, indicate a statu-
tory tax rate in Japan of approximately 37.9% for the years ended March 31, 2014 and approximately
35.5% for the year ended March 31, 2015.
The Company and its wholly owned domestic subsidiaries have adopted the consolidated tax return
system of Japan.
The following table summarizes the significant differences between the statutory tax rate and the ef-
fective tax rate for financial statement purposes for the year ended March 31, 2014:
The differences between the statutory tax rate and the effective tax rate for financial statement pur-
poses for the year ended March 31, 2015 are not disclosed because a loss before income taxes and
minority interests was recorded.
2014 2015
Statutory tax rate 37.9% —
Foreign withholding tax 13.6 —
Expenses not deductible for tax purposes 10.4 —
Income taxes for prior periods 15.7 —
Differences in normal tax rates of overseas subsidiaries (8.0) —
Other 2.1 —
Effective tax rate 71.7% —
Significant components of deferred tax assets and deferred tax liabilities as of March 31, 2014 and
2015 were as follows:
Net deferred tax assets as of March 31, 2014 and 2015 were included in the consolidated balance
sheets as follows:
Yen
(millions)
2014 2015
Deferred tax assets:
Inventories ¥ 42,240 ¥ 47,420
Accrued expenses 19,165 23,184
Accrued bonuses 9,635 3,950
Valuation reserve for inventory purchase commitments — 17,927
Net defined benefit liability 35,463 27,379
Buildings and structures 11,712 25,767
Machinery, equipment and vehicles 7,986 13,611
Software 9,183 4,494
Long-term prepaid expenses 21,319 21,624
Loss carried forward 278,536 291,067
Other 58,957 40,701
Gross deferred tax assets 494,196 517,124
Valuation allowance (448,022) (479,297)
Total deferred tax assets 46,174 37,827
Deferred tax liabilities:
Retained earnings appropriated for tax allowable reserves (2,342) (2,294)
Net unrealized holding gains (losses) on securities (3,770) (5,059)
Other (11,156) (3,205)
Total deferred tax liabilities (17,268) (10,558)
Net deferred tax assets ¥ 28,906 ¥ 27,269
Yen
(millions)
2014 2015
Deferred tax assets (Current Assets) ¥ 23,733 ¥ 16,576
Other assets (Investments and Other Assets) 16,173 18,961
Other current liabilities (96) (541)
Deferred tax liabilities (Long-term Liabilities) (10,904) (7,727)
Net deferred tax assets ¥ 28,906 ¥ 27,269
37
Notes to the Consolidated
Financial Statements
Financial Section
Segment Outline
Medium-Term Management Plan
for Fiscal 2015 through 2017
Investor Information
Directors, Audit & Supervisory Board
Members and Executive Officers
Risk Factors
Corporate Governance
Contents
Corporate Social
Responsibility (CSR)
Message to our Shareholders
Fiscal 2014 Review by
Product Group
Financial Highlights
SHARP Annual Report 2015
Consolidated
Subsidiaries
Independent Auditor’s
Report
Consolidated Statements of
Cash Flows
Consolidated Statements of
Changes in Net Assets
Consolidated Statements of
Comprehensive Income
Consolidated Statements of
Operations
Consolidated Balance Sheets
Financial Review
Five-Year Financial Summary