Fujitsu 2008 Annual Report Download - page 110

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The significant components of deferred tax assets and liabilities at March 31, 2007 and 2008 were as follows:
Yen
(millions)
U.S. Dollars
(thousands)
At March 31 2007 2008 2008
Deferred tax assets:
Tax loss carryforwards ¥ 204,791 ¥ 163,047 $ 1,630,470
Accrued retirement benefits 155,048 141,007 1,410,070
Accrued bonus 41,986 47,437 474,370
Excess of depreciation and amortization and impairment loss, etc 20,312 38,594 385,940
Inventories 3,837 17,254 172,540
Provision for loss on repurchase of computers 12,785 9,768 97,680
Loss on revaluation of investment securities 8,034 9,558 95,580
Provision for product warranties 6,655 7,971 79,710
Intercompany profit on inventories and property, plant and equipment 3,920 1,132 11,320
Other 37,468 52,558 525,580
Gross deferred tax assets 494,836 488,326 4,883,260
Less: Valuation allowance (253,113) (263,429) (2,634,290)
Total deferred tax assets 241,723 224,897 2,248,970
Deferred tax liabilities:
Gains from establishment of stock holding trust for retirement benefit plan ¥(110,617) ¥(110,617) $(1,106,170)
Unrealized gains on securities (84,615) (62,472) (624,720)
Tax allowable reserves (6,844) (4,632) (46,320)
Other (676) (2,396) (23,960)
Total deferred tax liabilities (202,752) (180,117) (1,801,170)
Net deferred tax assets ¥ 38,971 ¥ 44,780 $ 447,800
* Figures at March 31, 2007 have been reclassified for comparative purposes.
Net deferred tax assets were included in the consolidated balance sheets as follows:
Yen
(millions)
U.S. Dollars
(thousands)
At March 31 2007 2008 2008
Current assets—others ¥ 83,112 ¥ 80,958 $ 809,580
Investments and long-term loans—others 71,771 54,480 544,800
Current liabilities—others (1,565) (1,055) (10,550)
Long-term liabilities—others (114,347) (89,603) (896,030)
Net deferred tax assets ¥ 38,971 ¥ 44,780 $ 447,800
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 indefinitely in the
United Kingdom. Realization depends on the abilities of the companies to generate sufficient taxable income prior
to the expiration of the tax loss carryforwards. With respect to deferred tax assets, we recorded a valuation allow-
ance to cover the amount in excess of what we are likely to recover in the future.
Deferred tax liabilities have not been recognized on the undistributed profit of affiliates, as it is deemed that any
distributions will not give rise to tax liabilities.
108
ANNUAL REPORT 2008FUJITSU LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS