Casio 2008 Annual Report Download - page 37

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Annual Report 2008
Significant components of deferred tax assets and liabilities as of March 31, 2008 and 2007 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2008 2007 2008
Deferred tax assets:
Employees’ severance and retirement benefits .............................................. ¥ 6,033 ¥ 6,302 $ 60,330
Intangible fixed assets ................................................................................... 4,556 3,529 45,560
Net operating loss carryforwards ................................................................... 4,425 2,521 44,250
Property, plant and equipment ..................................................................... 4,206 1,826 42,060
Accrued expenses (bonuses to employees) .................................................... 3,112 3,142 31,120
Inventories .................................................................................................... 2,953 2,568 29,530
Other ............................................................................................................ 7,611 10,474 76,110
Gross deferred tax assets ................................................................................... 32,896 30,362 328,960
Valuation allowance ........................................................................................... (9,015) (3,881) (90,150)
Total deferred tax assets ............................................................................... 23,881 26,481 238,810
Deferred tax liabilities:
Unrealized holding gains on securities ........................................................... (3,907) (6,029) (39,070)
Less: valuation allowance .............................................................................. (1,878) (1,878) (18,780)
Reserve for deferred income tax of property, plant and equipment ............... (206) (219) (2,060)
Other ............................................................................................................ (160) (183) (1,600)
Total deferred tax liabilities ........................................................................... (6,151) (8,309) (61,510)
Net deferred tax assets ................................................................................. ¥17,730 ¥18,172 $177,300
9. Employees’ 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, 2008 and 2007 consists of the following:
Millions of Yen
Thousands of
U.S. Dollars
2008 2007 2008
Projected benefit obligation ............................................................................... ¥67,810 ¥63,771 $678,100
Unrecognized prior service costs ........................................................................ 9,088 9,996 90,880
Unrecognized actuarial differences ..................................................................... (14,870) (675) (148,700)
Less fair value of pension assets* ....................................................................... (53,654) (62,666) (536,540)
Less unrecognized net transition obligation ........................................................ (2,341) (3,511) (23,410)
Prepaid pension cost .......................................................................................... 144 80 1,440
Liabilities for the employees’ severance and retirement benefits .................... ¥ 6,177 ¥ 6,995 $ 61,770
* Including employee retirement benefit trust
Included in the consolidated statements of income for the years ended March 31, 2008 and 2007 are employees’ severance
and retirement benefit expenses comprised of the following:
Millions of Yen
Thousands of
U.S. Dollars
2008 2007 2008
Service cost—benefits earned during the year .................................................... ¥3,136 ¥3,124 $31,360
Interest cost on projected benefit obligation ...................................................... 1,495 1,463 14,950
Expected return on plan assets ........................................................................... (1,791) (1,696) (17,910)
Amortization of prior service costs ..................................................................... (908) (910) (9,080)
Amortization of actuarial differences .................................................................. 415 442 4,150
Amortization of net transition obligation ............................................................ 1,170 1,200 11,700
Other ................................................................................................................. 125 122 1,250
Employees’ severance and retirement benefit expenses ................................. ¥3,642 ¥3,745 $36,420
The discount rate and the rate of expected return on plan assets used by the Company are 2.5% and 3.0% in both 2008 and
2007.
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). Prior service costs 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).