Isuzu 2011 Annual Report Download - page 30

Financial Section
28
6. Income Taxes
Accrued income taxes in the balance sheets include corporation tax,
inhabitant tax and enterprise tax. Income taxes in the consolidated
statements of income include corporation tax and inhabitant tax and
enterprise tax.
The significant components of the Company and its consolidated
subsidiaries’ deferred tax assets and liabilities as of March 31, 2011 and
2010 are as follows:
A reconciliation between the normal effective statutory tax rate
and the actual effective tax rate reflected in the accompanying
consolidated statements of income for the years ended March 31,
2011 and 2010 are as follows:
2011 2010
Normal effective statutory tax rate
Net valuation allowance
Different tax rates applied to foreign subsidiaries
Loss for this fiscal year by consolidated subsidiaries
Equity in earnings of unconsolidated subsidiaries
Foreign withholding tax
Per capital levy of inhabitant tax
Others
Effective tax rate after adoption of tax-effect accounting
40.0%
(58.2)
(47.3)
24.9
(14.4)
5.0
2.3
2.0
(45.7)
40.0%
(8.8)
(11.0)
0.6
(4.1)
3.8
0.2
1.8
22.4
8. Land Revaluation
In accordance with the Law concerning Revaluation of Land enacted
on March 31, 1999, the land used for business owned by the Company
and its domestic consolidated subsidiaries and domestic affiliates was
revalued, and the unrealized gain on the revaluation of land, net of
deferred tax, was reported as “Variance of Land Revaluation” within
Net Assets, and the relevant deferred tax was reported as “Deferred
Tax Liabilities related to Land Revaluation” in Liabilities for the fiscal
year ended March 31, 2011.
Revalued Date: March 31, 2000
In accordance with the Law concerning Revaluation of Land enacted
on March 31, 1998, the land used for business owned by some of the
Company’s non-consolidated subsidiaries and affiliates accounted for
by the equity method were revalued.
Revalued Date: March 31, 2001
The method of revaluation is as follows:
Under article 2-4 of the Enforcement Ordinance on Law concerning
Revaluation of Land, the land price for the revaluation is determined
based on the official notice prices assessed and published by the
Commissioner of National Tax Agency of Japan as basis for calculation
of Landholding Tax as stipulated in article 16 of the Landholding Tax
Law. Appropriate adjustments for the shape of land and the timing of
the assessment has been made. The land price for the revaluation for
some of the land is based on land appraisal.
The difference of the total fair value, revalued based on the article
10 of the Enforcement Ordinance on Law concerning Revaluation of
Land, of business land for the end of this fiscal year and the total book
value for the business land revalued was ¥62,577 millions ($752,580
thousands).
9. Contingent Liabilities
Contingent liabilities at March 31, 2011 and 2010 are as follows:
Thousands of
Millions of yen U.S. dollars
2011 2010 2011
Deferred tax assets:
Accrued retirement benefits
Loss from revaluation of investments
and Allowance for doubtful accounts
Accrued expenses
Accrued bonus cost
Loss from inventory write down
Loss carried forward
Unrealized profit eliminated
in consolidation etc.
Others
Total gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Reserve for deferred income
tax of fixed assets
Unrealized holding gain on securities
Others
Total deferred tax liabilities
Net deferred tax assets
Deferred tax liabilities:
Reserve for deferred
income tax of fixed assets
Unrealized holding gain
on securities
Others
Net deferred tax liabilities
¥ 23,313
12,980
9,678
5,304
1,625
40,968
4,436
19,897
118,204
(86,506)
31,697
(1,102)
(1,431)
(914)
(3,449)
¥ 28,248
426
52
3,580
¥ 4,059
¥ 23,189
12,726
8,800
4,846
1,779
61,187
4,718
22,934
140,183
(110,910)
29,272
(1,098)
(16)
(235)
(1,350)
¥ 27,922
475
93
2,769
¥ 3,337
$ 280,372
156,107
116,402
63,797
19,548
492,701
53,354
239,296
1,421,578
(1,040,369)
381,209
(13,263)
(17,218)
(10,999)
(41,482)
$ 339,726
5,131
629
43,061
$ 48,822
7. Shareholders’ Equity
Changes in the numbers of shares issued and outstanding during the
years ended March 31, 2011 and 2010 are as follows:
Thousands of
Millions of yen U.S. dollars
2011 2010 2011
Guarantees of bank loans
¥ 1,033 ¥ 660 $ 12,428
Common stock outstanding
2011 2010
Balance at the beginning of the year 1,696,845,339 1,696,845,339
Increase due to convertible stocks converted — —
Balance at the end of the year 1,696,845,339 1,696,845,339
Treasury stock outstanding
2011 2010
Balance at the beginning of the year 2,235,667 2,234,999
Increase due to purchase of odd stocks 98,993 120,668
Balance at the end of the year 2,450,660 2,355,667