Casio 2004 Annual Report Download - page 34

32 CASIO COMPUTER CO., LTD.
The annual maturities of long-term debt at March 31, 2004 were as follows:
Thousands of
Year ending March 31 Millions of Yen U.S. Dollars
2005 .......................................................................................................... ¥12,792 $120,679
2006 .......................................................................................................... 39,655 374,104
2007 .......................................................................................................... 20,705 195,330
2008 .......................................................................................................... 30,500 287,736
2009 .......................................................................................................... 30,500 287,736
Thereafter .................................................................................................. 30,950 291,981
The line of credit with the main financial institutions agreed as of March 31, 2004 and 2003 was as follows:
Thousands of
Millions of Yen U.S. Dollars
2004 2003 2004
Line of credit .............................................................................................. ¥59,010 ¥35,000 $556,698
Unused....................................................................................................... 59,010 35,000 556,698
8. INCOME TAXES
The statutory income tax rate used for calculation of deferred income tax assets and liabilities was 42.1% for the year ended March
31, 2002. Effective for years commencing on April 1, 2004 or later, according to the revised local tax law, income tax rates for
enterprise taxes will be reduced as a result of introducing the assessment by estimation on the basis of the size of business. Based
on the change of income tax rates, for calculation of deferred income tax assets and liabilities, the Company and consolidated
domestic subsidiaries used the statutory income tax rates of 42.1% and 40.5% for current items and non-current items, respec-
tively, at March 31, 2003.
As a result of the change in the statutory tax rates, deferred income tax assets for the year ended March 31, 2003 decreased by
¥548 million and net unrealized holding losses on securities decreased by ¥139 million and provision for deferred income taxes
increased by ¥409 million compared with what would have been recorded under the previous local tax law.
The Company and consolidated domestic subsidiaries used the statutory income tax rate of 40.7% for calculation of deferred
income tax assets and liabilities at March 31, 2004.
The following table summarizes the significant differences between statutory tax rate and the Group’s tax rate for financial
statement purposes for the years ended March 31, 2004:
2004
Statutory tax rate ....................................................................................................................................................... 42.1%
Increase (Reduction) in tax resulting from:
Nondeductible expenses (Entertainment, etc.) ....................................................................................................... 0.6
Nontaxable income (Divdends received deduction, etc.)......................................................................................... (1.2)
Inhabitants’ per capita taxes and other ................................................................................................................. 0.5
Effect of change in statutory tax rate..................................................................................................................... 1.2
Prior periods adjustment of income tax.................................................................................................................. (5.5)
Difference in statutory tax rate (included in foreign subsidiaries) ............................................................................ (1.7)
Other .................................................................................................................................................................... (1.2)
Effective tax rate ........................................................................................................................................................ 34.8%
Due to the difference of tax rate between statutory tax rate and the Group’s tax rate for financial statement purpose being less than
5% for the year ended March 31, 2003, reconciliation of tax rate between statutory tax rate and effective tax rate is not disclosed.
Significant components of deferred tax assets and liabilities as of March 31, 2004 and 2003 were as follows:
Thousands of
Millions of Yen U.S. Dollars
2004 2003 2004
Deferred tax assets:
Employees’ severance and retirement benefits ....................................... ¥5,738 ¥5,190 $54,132
Net operating loss carryforwards ........................................................... 3,413 8,017 32,198
Unrealized holding losses on securities................................................... —3,984 —
Accrued expenses (bonuses to employees)............................................. 2,764 2,525 26,075
Inventories............................................................................................. 2,459 2,403 23,198
Property, plant and equipment .............................................................. 1,113 —10,500
Other .................................................................................................... 10,754 12,035 101,453
Gross deferred tax assets ............................................................................ 26,241 34,154 247,556
Valuation allowance ................................................................................... (3,305) (5,436) (31,179)
Total deferred tax assets ........................................................................ 22,936 28,718 216,377
Deferred tax liabilities:
Unrealized holding gains on securities ................................................... (2,192) (369) (20,679)
Effect of valuation difference................................................................. (1,878) (2,018) (17,717)
Property, plant and equipment .............................................................. (331) (396) (3,123)
Other .................................................................................................... (125) (90) (1,179)
Total deferred tax liabilities .................................................................... (4,526) (2,873) (42,698)
Net deferred tax assets .......................................................................... ¥18,410 ¥25,845 $173,679