Casio 2012 Annual Report Download - page 34

Significant components of deferred tax assets and liabilities as of March 31, 2012 and 2011:
Millions of Yen
Thousands of
U.S. Dollars
2012 2011 2012
Deferred tax assets:
Net operating loss carryforwards ............................................... ¥27,637 ¥15,606 $337,037
Provision for retirement benefits ................................................ 7,369 7,895 89,866
Inventories................................................................................. 2,555 2,521 31,159
Accrued expenses (bonuses to employees) ................................. 1,888 2,242 23,024
Property, plant and equipment .................................................. 1,175 1,331 14,329
Other ........................................................................................ 9,460 8,641 115,366
Gross deferred tax assets ................................................................ 50,084 38,236 610,781
Valuation allowance ........................................................................ (22,171) (15,501) (270,378)
Total deferred tax assets ............................................................ 27,913 22,735 340,403
Deferred tax liabilities:
Unrealized holding gain ............................................................. (1,651) (1,878) (20,134)
Valuation difference on available-for-sale securities ................... (1,119) (2,022) (13,647)
Reserve for advanced depreciation of noncurrent assets ............ (104) (126) (1,268)
Other ........................................................................................ (62) (62) (756)
Total deferred tax liabilities ........................................................ (2,936) (4,088) (35,805)
Net deferred tax assets .............................................................. ¥24,977 ¥18,647 $304,598
Adjustments of amount of deferred tax assets and liabilities for enacted changes in tax laws and
rates
The “Law to Revise the Income Tax etc., in Order to Construct a Tax System Addressing Changes in
Socio-Economic Structure” (Act No. 114 of 2011) and the “Act on Special Measures Relating to Securing
the Fiscal Resources Necessary for Implementing Measures to Effect a Recovery from the Great East Japan
Earthquake” (Law No. 117 of 2011) were enacted on December 2, 2011. In line with this legislation,
the income tax rate applicable to corporate accounts for the business year beginning April 1, 2012 was
lowered, and a Special Disaster-Recovery Corporation Tax was levied.
As a result of these changes, income taxes-deferred increased by ¥2,094 million ($25,537 thousand),
while valuation difference on available-for-sale securities increased by ¥36 million ($439 thousand), and a
deferred loss on hedges of ¥10 million ($122 thousand) was registered.
11. Provision for Retirement Benefits
The liabilities for the provision for retirement benefits at March 31, 2012 and 2011:
Millions of Yen
Thousands of
U.S. Dollars
2012 2011 2012
Projected benefit obligation ............................................................ ¥77,051 ¥70,846 $939,646
Less fair value of pension assets* .................................................... (47,142) (48,407) (574,902)
Unrecognized actuarial differences .................................................. (23,899) (17,892) (291,451)
Unrecognized prior service costs ..................................................... 5,285 6,149 64,451
Prepaid pension cost ....................................................................... ———
Liabilities for the provision for retirement benefits ...................... ¥11,295 ¥10,696 $137,744
* Including employee retirement benefit trust
The provision for retirement benefits expenses for the years ended 2012 and 2011:
Millions of Yen
Thousands of
U.S. Dollars
2012 2011 2012
Service cost—benefits earned during the year ................................. ¥2,858 ¥2,455 $34,854
Interest cost on projected benefit obligation ................................... 1,638 1,653 19,976
Expected return on plan assets ........................................................ (1,344) (1,441) (16,390)
Amortization of actuarial differences ............................................... 2,058 1,911 25,097
Amortization of prior service costs .................................................. (865) (865) (10,549)
Other .............................................................................................. 141 144 1,719
Provision for retirement benefit expenses ................................... ¥4,486 ¥3,857 $54,707
The discount rate and the rate of expected return on plan assets used by the Group are 1.7% and
3.0%, respectively, in 2012. These rates for the previous year are 2.5% and 3.0%, 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 differences 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).
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CASIO Annual Report 2012
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