Fujitsu 2007 Annual Report Download - page 80

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The significant components of deferred tax assets and liabilities at March 31, 2006 and 2007
were as follows:
Yen U.S. Dollars
(millions) (thousands)
At March 31 2006 2007 2007
Deferred tax assets:
Tax loss carryforwards ¥ 231,784 ¥ 204,791 $ 1,735,517
Accrued retirement benefits 169,908 155,048 1,313,966
Accrued bonus 40,265 41,986 355,814
Provision for loss on repurchase of computers 14,186 12,785 108,347
Provision for product warranties 6,552 6,655 56,398
Intercompany profit on inventory and
property, plant and equipment 5,452 3,920 33,220
Other 60,627 69,651 590,263
Gross deferred tax assets 528,774 494,836 4,193,525
Less: Valuation allowance (243,463) (253,113) (2,145,025)
Total deferred tax assets 285,311 241,723 2,048,500
Deferred tax liabilities:
Gains from establishment of stock holding trust
for retirement benefit plan ¥(110,617) ¥(110,617) $ (937,432)
Unrealized gains on securities (123,270) (84,615) (717,076)
Tax allowable reserves (8,523) (6,844) (58,000)
Other (578) (676) (5,729)
Total deferred tax liabilities (242,988) (202,752) (1,718,237)
Net deferred tax assets ¥ 42,323 ¥ 38,971 $ 330,263
(*) Figures at March 31, 2006 have been reclassified for comparative purposes
Net deferred tax assets were included in the consolidated balance sheets as follows:
Yen U.S. Dollars
(millions) (thousands)
At March 31 2006 2007
Current assets—others ¥ 79,244 ¥ 83,112 $ 704,339
Investments and long-term loans—others 63,400 71,771 608,229
Current liabilities—others (520) (1,565) (13,263)
Long-term liabilities—others (99,801) (114,347) (969,042)
Net deferred tax assets ¥ 42,323 ¥ 38,971 $ 330,263
The Company and the wholly owned subsidiaries in Japan have adopted the consolidated tax return
system of Japan.
Tax losses can be carried forward up to 7 years in Japan, 20 years in the United States, and indefi-
nitely in the United Kingdom. Realization depends on the abilities of the companies to generate suffi-
cient taxable income prior to the expiration of the tax loss carryforwards. With respect to deferred tax
assets, we recorded a valuation allowance to cover the amount in excess of what we are likely to recover in
the future.
Deferred tax liabilities have not been provided on the undistributed profit of affiliates, as it is deemed
that any distributions will not give rise to tax liabilities.
78 Fujitsu Limited
2007