Casio 2001 Annual Report Download - page 29

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27
The following table summarizes the significant differences between the statutory tax rate and the Group’s effective tax rate for
financial statement purposes for the years ended March 31, 2001 and 2000:
2001 2000
Statutory tax rate 42.1% 42.1%
Increase (Reduction) in tax resulting from:
Nondeductible expenses (Entertainment, etc.) 2.0 2.3
Nontaxable income (Dividends received deduction, etc.) (14.2) (5.0)
Net current operating losses of subsidiaries 12.9 5.7
Difference in statutory tax rate (included in foreign subsidiaries) (2.3) (4.4)
Effect of elimination of dividends income 19.6 8.4
Effect of other elimination (sales of securities and dissolution on affiliated companies, etc.) (36.7) —
Other 1.6 0.4
Effective tax rate 25.0% 49.5%
Significant components of deferred tax assets and liabilities as of March 31, 2001 and 2000 were as follows:
Thousands of
Millions of yen U.S. dollars
2001 2000 2001
Deferred tax assets:
Net operating loss carryforwards ¥ 8,945 ¥ 7,198 $72,137
Property, plant and equipment 3,038 2,870 24,500
Inventories —2,358 —
Allowance for doubtful accounts —1,525 —
Employees’ severance and retirement benefits 1,635 —13,185
Unrealized holding losses on securities 1,512 —12,194
Accrued expenses (Bonuses to employees) 1,500 1,318 12,097
Other 4,315 3,838 34,798
Gross deferred tax assets 20,945 19,107 168,911
Valuation allowance (4,551) (5,827) (36,702)
Total deferred tax assets 16,394 13,280 132,209
Deferred tax liabilities:
Effect of valuation difference (2,018) (2,913) (16,274)
Unrealized holding gains on securities (674) —(5,436)
Property, plant and equipment (671) (672) (5,411)
Other (110) (146) (887)
Total deferred tax liabilities (3,473) (3,731) (28,008)
Net deferred tax assets ¥12,921 ¥ 9,549 $104,201
9. EMPLOYEES’ SEVERANCE AND RETIREMENT BENEFITS
As explained in Note 2, Significant Accounting Policies, effec-
tive April 1, 2000, the Company and its consolidated
subsidiaries in Japan adopted the new accounting standard
for employees’ severance and retirement benefits, under
which the liabilities and expenses for severance and retire-
ment benefits are determined based on the amounts
obtained by actuarial calculations.
The liabilities for severance and retirement benefits included in the liability section of the consolidated balance sheets at
March 31, 2001 consists of the following: