Casio 2003 Annual Report Download - page 31

Significant components of deferred tax assets and liabilities as of March 31, 2003 and 2002 were as follows:
Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Deferred tax assets:
Net operating loss carryforwards................................................................................. ¥08,017 ¥12,698 $066,808
Employees’ severance and retirement benefits ............................................................ 5,190 3,512 43,250
Unrealized holding losses on securities ....................................................................... 3,984 1,805 33,200
Accrued expenses (bonuses to employees) .................................................................. 2,525 1,755 21,042
Inventories.................................................................................................................. 2,403 3,834 20,025
Other.......................................................................................................................... 12,035 10,989 100,292
Gross deferred tax assets ................................................................................................ 34,154 34,593 284,617
Valuation allowance ....................................................................................................... (5,436) (7,122) (45,300)
Total deferred tax assets ......................................................................................... 28,718 27,471 239,317
Deferred tax liabilities:
Effect of valuation difference ...................................................................................... (2,018) (2,018) (16,817)
Property, plant and equipment ................................................................................... (396) (567) (3,300)
Unrealized holding gains on securities......................................................................... (369) (479) (3,075)
Other.......................................................................................................................... (90) (115) (750)
Total deferred tax liabilities ..................................................................................... (2,873) (3,179) (23,942)
Net deferred tax assets ........................................................................................... ¥25,845 ¥24,292 $215,375
9EMPLOYEES’ SEVERANCE AND RETIREMENT BENEFITS
The liabilities for the employees’ severance and retirement benefits included in the liability section of the consolidated
balance sheets at March 31, 2003 and 2002 consists of the following:
Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Projected benefit obligation ............................................................................................ ¥97,229 ¥90,989 $810,242
Unrecognized prior service costs ..................................................................................... ———
Unrecognized actuarial differences ................................................................................. (29,469) (19,961) (245,575)
Less fair value of pension assets ...................................................................................... (40,567) (45,914) (338,058)
Less unrecognized net transition obligation..................................................................... (13,698) (15,655) (114,150)
Prepaid pension cost....................................................................................................... 13 38 108
Liabilities for the employees’ severance and retirement benefits .................................. ¥13,508 ¥9,497 $112,567
Included in the consolidated statements of operations for the years ended March 31, 2003 and 2002 are employees’
severance and retirement benefit expenses comprised of the following:
Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Service cost-benefits earned during the year........................................................................ ¥4,561 ¥4,530 $38,009
Interest cost on projected benefit obligation........................................................................ 2,586 2,634 21,550
Expected return on plan assets ............................................................................................ (1,929) (1,986) (16,075)
Amortization of prior service costs....................................................................................... ———
Amortization of actuarial differences ................................................................................... 1,482 709 12,350
Amortization of net transition obligation ............................................................................. 1,957 1,957 16,308
Employees’ severance and retirement benefit expenses ................................................... ¥8,657 ¥7,844 $72,142
The discount rate and the rate of expected return on plan assets used by the Company are 2.8% and 4.5% in 2003
and 3.0% and 4.5% in 2002, respectively.
The estimated amount of all retirement benefits to be paid at the future retirement date is allocated equally to each
service year using the estimated number of total service years. Actuarial gains and losses are to be recognized in expenses
using the straight-line method over 9–15 years (a certain period not exceeding the average of the estimated remaining
service lives commencing with the next period).
Annual Report 2003 29