Epson 2013 Annual Report Download - page 70

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69
The differences between Epson’s statutory income tax rate and the income tax rate reflected in the
consolidated statements of income were reconciled as follows:
Year ended March 31
2012 2013
Statutory income tax rate 40.4% 37.8%
Reconciliation:
Changes in valuation allowance 48.7 (304.2)
Tax rate differences in overseas subsidiaries (24.9) 60.7
Entertainment expenses, etc. permanently non-tax deductible 16.1 52.2
Other (13.7) (31.6)
Income tax rate per statements of income 66.6% (185.2%)
15. Selling, general and administrative expenses
The significant components of selling, general and administrative expenses for the years ended March 31,
2012 and 2013, were as follows:
Thousands of
Millions of yen U.S. dollars
Year ended
Year ended March 31 March 31,
2012 2013 2013
Salaries and wages ¥71,691 ¥74,046 $787,304
Advertising 16,559 14,956 159,021
Sales promotion 20,714 18,128 192,748
Shipping costs 18,809 12,647 134,471
Research and development costs 21,526 18,992 201,935
Allowance for doubtful accounts 143 (5) (53)
Other 74,774 74,420 791,284
Total ¥224,219 ¥213,184 $2,266,710
16. Research and development costs
Research and development costs, which are included in the cost of sales and selling, general and
administrative expenses, totaled ¥52,106 million and ¥49,923 million ($530,813 thousand) for the years
ended March 31, 2012 and 2013, respectively.