Casio 2009 Annual Report Download - page 39

37
Annual Report 2009
9. Income Taxes
The Company and domestic consolidated subsidiaries used the statutory income tax rate of 40.7% for calculation of deferred
income tax assets and liabilities at March 31, 2008.
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, 2008:
2008
Statutory tax rate .................................................................................................................................................... 40.7%
Increase (reduction) in tax resulting from:
Nondeductible expenses (Entertainment, etc.) .................................................................................................... 0.5
Nontaxable income (Dividends received deduction, etc.)..................................................................................... (3.7)
Difference in statutory tax rate (included in foreign subsidiaries)......................................................................... (3.2)
Income tax credits .............................................................................................................................................. (4.6)
Effect of elimination of dividends income ........................................................................................................... 5.7
Valuation allowance .......................................................................................................................................... 21.5
Other ................................................................................................................................................................. 0.9
Effective tax rate ..................................................................................................................................................... 57.8%
The significant differences between the statutory tax rate and the Company’s effective tax rate for financial statement purposes for
the year ended March 31, 2009 is not disclosed because the Company recognizes a loss before income taxes.
Significant components of deferred tax assets and liabilities as of March 31, 2009 and 2008 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Deferred tax assets:
Net operating loss carryforwards ................................................................... ¥11,430 ¥ 4,425 $116,633
Intangible assets ........................................................................................... 7,693 4,556 78,500
Provision for retirement benefits ................................................................... 6,612 6,033 67,469
Property, plant and equipment ..................................................................... 4,107 4,206 41,908
Inventories .................................................................................................... 3,298 2,953 33,653
Accrued expenses (bonuses to employees) .................................................... 2,538 3,112 25,898
Other ............................................................................................................ 10,134 7,611 103,408
Gross deferred tax assets ................................................................................... 45,812 32,896 467,469
Valuation allowance ........................................................................................... (18,634) (9,015) (190,143)
Total deferred tax assets ............................................................................... 27,178 23,881 277,326
Deferred tax liabilities:
Unrealized holding gain ................................................................................ (1,878) (1,878) (19,163)
Valuation difference on available-for-sale securities ....................................... (729) (3,907) (7,439)
Reserve for advanced depreciation of noncurrent assets ................................ (194) (206) (1,980)
Other ............................................................................................................ (159) (160) (1,622)
Total deferred tax liabilities ........................................................................... (2,960) (6,151) (30,204)
Net deferred tax assets ................................................................................. ¥24,218 ¥17,730 $247,122
10. Provision for Retirement Benefits
The liabilities for the provision for retirement benefits included in the liability section of the consolidated balance sheets at March
31, 2009 and 2008 consists of the following:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Projected benefit obligation ............................................................................... ¥69,517 ¥67,810 $709,357
Unrecognized prior service costs ........................................................................ 7,896 9,088 80,572
Unrecognized actuarial differences ..................................................................... (23,426) (14,870) (239,041)
Less fair value of pension assets* ....................................................................... (45,490) (53,654) (464,184)
Less unrecognized net transition obligation ........................................................ (1,170) (2,341) (11,939)
Prepaid pension cost .......................................................................................... 51 144 521
Liabilities for the provision for retirement benefits ......................................... ¥ 7,378 ¥ 6,177 $ 75,286
* Including employee retirement benefit trust