Canon 2008 Annual Report Download - page 86

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8
4
N
et
de
f
e
rr
ed
in
co
m
e
ta
x
assets
a
n
d
li
ab
ili
t
i
es
a
r
e
in
c
l
uded
in the accompanying consolidated balance sheets under the
f
ollowin
g
captions
:
D
ece
m
be
r 3
1
M
illions of
y
e
n
T
housands o
f
U
.
S
.
do
ll
a
r
s
2008
2007
2008
P
repai
d
expenses an
d
ot
h
er current asset
s
¥ 96,613 ¥ 79
,
846 $ 1,061,681
Ot
h
e
r
assets
130,378
68
,17
8
1,432,725
Ot
h
er current
l
ia
b
i
l
itie
s
(2,491)
(
4,506
)
(27,374)
Ot
h
er noncurrent
l
ia
b
i
l
itie
s
(29,075)
(
28,157
)
(319,505)
¥ 195,425 ¥ 115,
361
$ 2,147,527
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES
The tax effects of temporary differences that give rise to the
de
f
erred tax assets and de
f
erred tax liabilities at December 31
,
2008 an
d
2007 are
p
resente
d
b
e
l
ow:
D
ece
m
be
r 3
1
M
illions of
y
e
n
T
h
ousa
n
ds
of
U
.
S
.
do
ll
a
r
s
2008
2
00
7
2008
De
f
erred tax assets
:
Inv
e
n
to
ri
es
¥ 36,817 ¥ 17
,3
5
9
$ 404,582
Acc
r
ued
bus
in
ess
tax
5,183
11
,
555
56,956
A
ccrue
d
pension an
d
severance cos
t
51,713 16
,
336 568,275
R
esearch and development—costs capitalized
f
or tax purpose
s
41,661 4
2,
4
3
4 457,813
P
ropert
y
, plant and equipmen
t
58,682 5
3
,4
87
644,857
A
ccrue
d
expense
s
27,748 27
,
903 304,923
Net operating losses carried
f
orwar
d
6,745 4
,
080 74,121
Ot
h
e
r 44,894
3
4,44
8
493,341
273,443 207,602 3,004,868
Less valuation allowanc
e
(10,817)
(
9,327
)
(118,868)
Tota
l
de
f
e
rr
ed
ta
x
assets
262,626 1
98
,
2
75 2,886,000
De
f
erred tax liabilities:
Undistributed earnin
g
s of forei
g
n subsidiarie
s
(10,407) (13,566) (114,363)
Net unrea
l
ize
d
gains on securities (607)
(
4,440
)
(6,670)
T
ax
d
e
d
ucti
bl
e reserv
e
(8,119)
(
8,574
)
(89,220)
Financin
g
lease revenu
e
(31,035) (26,892) (341,044)
P
repai
d
pension an
d
severance cos
t
(2,644)
(
10,604
)
(29,055)
O
t
h
er (14,389)
(
18,838
)
(158,121)
Tota
l
de
f
e
rr
ed
ta
x li
ab
ili
t
i
es
(67,201)
(
82,914
)
(738,473)
N
et
de
f
e
rr
ed
ta
x
assets
¥ 195,425 ¥ 115,
361
$ 2,147,527
T
h
e net c
h
anges in t
h
e tota
l
va
l
uation a
ll
owance were
increases of ¥1,490 million
(
$16,374 thousand
)
, ¥2,827 million
and ¥3,155 million
f
or the
y
ears ended December 31, 2008,
2007 an
d
2006, respective
ly
.
Based u
p
on the level of historical taxable income and
projections for future taxable income over the periods which
the net deductible temporary di
ff
erences are expected to
reverse, mana
g
ement believes it is more likel
y
than not that
Canon will realize the benefi ts of these deferred tax assets, net
of the existing valuation allowance, at December 31, 2008
.
At December 31, 2008, Canon had net operating losses
which can be carried
f
orward
f
or income tax purposes o
f
¥18,322 million (
$
201,341 thousand) to reduce future taxable
income. Periods available to reduce future taxable income vary
in each tax jurisdiction and generally range from one year to
ten years as
f
ollows
: