Epson 2014 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2014 Epson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 99

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99

13. Income taxes
The significant components of deferred tax assets and liabilities as of March 31, 2013 and 2014, were as follows:
Thousands of
U.S. dollars
March 31,
2013
March 31,
2014
March 31,
2014
Deferred tax assets:
Net operating tax loss carry-forwards ¥90,826 ¥73,625 $715,361
Inter-company profits on inventories and write downs 18,925 23,153 224,961
Property, plant and equipment and intangible assets
(Impairment loss and excess of depreciation)
14,811 18,914 183,773
Provision for retirement benefits 8,981 - -
Net defined benefit liability - 14,331 139,244
Provision for bonuses 3,963 7,073 68,723
Provision for product warranties 2,229 2,972 28,876
Devaluation of investment securities 2,512 2,491 24,203
One-time depreciation for assets 2,315 826 8,025
Others 14,386 14,446 140,403
Gross deferred tax assets 158,953 157,835 1,533,569
Less: valuation allowance (135,886) (102,291) (993,888)
Total deferred tax assets 23,067 55,544 539,681
Deferred tax liabilities:
Undistributed earnings of overseas subsidiaries and affiliates
(11,203) (12,615) (122,570)
Valuation difference on available-for-sale securities (341) (1,889) (18,354)
Net unrealized gains on land held by a subsidiary (1,236) (800) (7,773)
Others (1,001) (892) (8,697)
Gross deferred tax liabilities (13,782) (16,198) (157,394)
Net deferred tax assets ¥9,284 ¥39,345 $382,287
Millions of yen
The valuation allowance was established mainly against deferred tax assets on future tax-deductible temporary
differences and operating tax loss carry-forwards as it is probable that these deferred tax assets will not be
realized within the foreseeable future.
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:
2013 2014
Statutory income tax rate 37.80% 37.80%
Rec onc iliation:
Changes in valuation allowance (304.2) (52.5)
Tax rate differences in overseas subsidiaries 60.7 (5.0)
Entertainment expenses, etc. permanently non-tax deductible 52.2 (1.8)
Other (31.6) 4.7
Income tax rate per statements of income (185.2%) (16.7%)
Year ended March 31
71