Canon 2010 Annual Report Download - page 90
Download and view the complete annual report
Please find page 90 of the 2010 Canon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.CANON ANNUAL REPORT 201088
The Company and its domestic subsidiaries are subject to a
number of income taxes, which, in the aggregate, represent a
statutory income tax rate of approximately 40% for the years
ended December 31, 2010, 2009 and 2008.
A reconciliation of the Japanese statutory income tax rate
and the effective income tax rate as a percentage of income
before income taxes is as follows:
Years ended December 31 2010 2009 2008
Japanese statutory income tax rate 40.0% 40.0% 40.0%
Increase (reduction) in income taxes resulting from:
Expenses not deductible for tax purposes 0.8 0.9 0.5
Income of foreign subsidiaries taxed at lower than
Japanese statutory tax rate (3.5) (5.4) (2.6)
Tax credit for research and development expenses (5.1) (2.8) (4.6)
Change in valuation allowance 2.8 5.4 0.1
Other 0.7 0.2 0.0
Effective income tax rate 35.7% 38.3% 33.4%
Net deferred income tax assets and liabilities are included in the accompanying consolidated balance sheets under the
following captions:
December 31
Millions of yen
Thousands of
U.S. dollars
2010 2009 2010
Prepaid expenses and other current assets ¥ 69,197 ¥ 94,798 $ 854,284
Other assets 136,727 117,263 1,687,988
Other current liabilities (2,149) (2,018) (26,531)
Other noncurrent liabilities (47,827) (36,278) (590,457)
¥155,948 ¥173,765 $1,925,284
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES