Toshiba 2012 Annual Report Download - page 119

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TOSHIBA Annual Report 2012
The Group's tax loss carryforwards for the corporate and local taxes at March 31, 2012 amounted to ¥600,800 million
($7,326,829 thousand) and ¥742,052 million ($9,049,415 thousand), respectively, the majority of which will expire during
the period from the year ending March 2013 through 2021. The Group utilized tax loss carryforwards of ¥126,432 million
($1,541,854 thousand) and ¥119,953 million to reduce current corporate taxes and of ¥120,232 million ($1,466,244
thousand) and ¥68,530 million to reduce current local taxes during the years ended March 31, 2012 and 2011, respectively.
Realization of tax loss carryforwards and other deferred tax assets is dependent on the Group generating sufficient
taxable income prior to their expiration or the Group exercising certain available tax strategies. Although realization is not
assured, management believes it is more likely than not that all of the deferred tax assets, less the valuation allowance,
will be realized. The amount of such net deferred tax assets considered realizable, however, could be reduced in the near
term if estimates of future taxable income during the carryforward period are reduced.
A reconciliation table of the beginning and ending amount of unrecognized tax benefits is as follows:
Millions of yen
Thousands of
U.S. dollars
Year ended March 31 2012 2011 2012
Balance at beginning of year ¥ 3,473 ¥ 4,493 $ 42,354
Additions for tax positions of the current year 737 598 8,988
Additions for tax positions of prior years 225 683 2,744
Reductions for tax positions of the current year (14) − (171)
Reductions for tax positions of prior years (431) (72) (5,256)
Lapse of statute of limitations or closed audits (1,627) (1,772) (19,841)
Additions from acquisitions 2,375 − 28,963
Foreign currency translation adjustments (65) (457) (793)
Balance at end of year ¥ 4,673 ¥ 3,473 $ 56,988
The total amounts of unrecognized tax benefits that would reduce the effective tax rate, if recognized, are ¥1,715 million
($20,915 thousand) and ¥2,274 million at March 31, 2012 and 2011, respectively.
The Group recognizes interest and penalties accrued related to unrecognized tax benefits in income taxes in the
consolidated statements of income. Both interest and penalties accrued as of March 31, 2012 and 2011, and interest and
penalties included in income taxes for the years ended March 31, 2012 and 2011 are not material.
The Group believes its estimates and assumptions of unrecognized tax benefits are reasonable and based on each of
the items of which the Group is aware at March 31, 2012, no significant changes to the unrecognized tax benefits are
expected within the next twelve months.
The Group files income tax returns in Japan and various foreign tax jurisdictions. In Japan, the Group is no longer
subject to regular income tax examinations by the tax authority for years before the fiscal year ended March 31, 2008 with
few exceptions. In other major foreign tax jurisdictions, the Group is no longer subject to regular income tax examinations
by tax authorities for years before the fiscal year ended March 31, 2006 with few exceptions.