Casio 2006 Annual Report Download - page 36

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34 CASIO COMPUTER CO., LTD.
The annual maturities of long-term debt at March 31, 2006 were as follows:
Thousands of
Year ending March 31 Millions of Yen U.S. Dollars
2007 .......................................................................................................... ¥20,747 $177,325
2008 .......................................................................................................... 32,000 273,504
2009 .......................................................................................................... 26,500 226,496
2010 .......................................................................................................... 10,500 89,744
2011 .......................................................................................................... 20,450 174,786
Thereafter .................................................................................................. 10,000 85,470
The line of credit with the main financial institutions agreed as of March 31, 2006 and 2005 was as follows:
Thousands of
Millions of Yen U.S. Dollars
2006 2005 2006
Line of credit .............................................................................................. ¥50,500 ¥60,300 $431,624
Unused....................................................................................................... 50,500 60,300 431,624
8. Income Taxes
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, 2006 and 2005.
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, 2006 and 2005:
2006 2005
Statutory tax rate .............................................................................................................................. 40.7% 40.7%
Increase (Reduction) in tax resulting from:
Nondeductible expenses (Entertainment, etc.).............................................................................. 0.3 0.4
Nontaxable income (Dividends received deduction, etc.) .............................................................. (1.5) (1.2)
Difference in statutory tax rate (included in foreign subsidiaries) .................................................. (1.9) (1.3)
Income tax credits........................................................................................................................ (4.4) (5.6)
Effect of elimination of dividends income..................................................................................... 2.6 —
Other........................................................................................................................................... (0.1) (1.5)
Effective tax rate ............................................................................................................................... 35.7% 31.5%
Significant components of deferred tax assets and liabilities as of March 31, 2006 and 2005 were as follows:
Thousands of
Millions of Yen U.S. Dollars
2006 2005 2006
Deferred tax assets:
Employees’ severance and retirement benefits ....................................... ¥6,433 ¥6,015 $54,983
Accrued expenses (bonuses to employees)............................................. 3,042 2,972 26,000
Inventories............................................................................................. 2,402 3,444 20,530
Net operating loss carryforwards ........................................................... 2,229 —19,051
Intangible fixed assets............................................................................ 2,181 1,549 18,641
Property, plant and equipment .............................................................. 1,670 1,705 14,273
Other .................................................................................................... 9,274 11,070 79,265
Gross deferred tax assets ............................................................................ 27,231 26,755 232,743
Valuation allowance ................................................................................... (2,772) (1,872) (23,692)
Total deferred tax assets ........................................................................ 24,459 24,883 209,051
Deferred tax liabilities:
Unrealized holding gains on securities ................................................... (6,775) (2,402) (57,906)
Effect of valuation difference................................................................. (1,878) (1,878) (16,051)
Property, plant and equipment .............................................................. (233) (283) (1,991)
Other .................................................................................................... (217) (181) (1,855)
Total deferred tax liabilities .................................................................... (9,103) (4,744) (77,803)
Net deferred tax assets .......................................................................... ¥15,356 ¥20,139 $131,248