JVC 2001 Annual Report Download - page 36

Total sales of available-for-sale securities sold in the year ended
March 31, 2001 amounted to ¥16,160 million ($130,323 thousand)
and the gains amounted to ¥1,450 million ($11,694 thousand) and
the losses amounted to ¥640 million ($5,161 thousand).
The aggregate book value, market value and unrealized gains
pertaining to marketable equity securities included in “marketable
securities” and “investments and advances, other” in the
accompanying consolidated balance sheets at March 31, 2000 was
as follows:
Millions of yen
2000
Marketable securities:
Book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥15,295
Market value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,029
Unrealized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 734
Investments and advances other:
Book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥15,120
Market value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,864
Unrealized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 7,744
6. INCOME TAXES
Income taxes in Japan consist of corporation, enterprise and
inhabitants taxes. The Company and its domestic consolidated
subsidiaries are subject to the income taxes referred to above which,
in the aggregate, resulted in statutory tax rates of approximately 42.0%
for the years ended March 31, 2001, and 2000 and 47.6% for the
year ended March 31, 1999. Foreign subsidiaries are subject to income
taxes of the countries in which they domicile.
The following table summarizes the significant differences between
the statutory tax rate and the Company’s effective tax for financial
statement purposes for the year ended March 31, 2001and 2000 were
as follows:
2001 2000
Statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . 42.0 % 42.0 %
Lower tax rates of overseas subsidiaries . . . (7.4)% (11.3)%
Expenses not deductible for tax purposes . . 20.0 % 53.0 %
Effect of changes in valuation allowance
for deferred tax assets . . . . . . . . . . . . . . . . . (13.7)% 93.6 %
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.8 % 8.2 %
Effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . 76.7 % 185.5 %
Significant components of the Company’s deferred tax assets and
liabilities at March 31, 2001 and 2000 were as follows:
Thousands of
Millions of yen U.S. dollars
2001 2000 2001
Deferred tax assets:
Loss on devaluation
of inventory . . . . . . . . . . . . ¥4,939 ¥5,464 $ 39,831
Accrued expenses not
deductible for tax purposes 6,479 4,264 52,250
Depreciation . . . . . . . . . . . . 7,938 8,372 64,016
Retirement and severance
benefits . . . . . . . . . . . . . . . . 3,474 2,811 28,016
Tax loss carryforwards . . . . 11,009 12,591 88,782
Other . . . . . . . . . . . . . . . . . . . 9,657 8,121 77,879
Total gross deferred
tax assets . . . . . . . . . . . . 43,496 41,623 350,774
Less valuation allowance . . 24,912 26,206 200,903
Net deferred tax assets . . ¥18,584 ¥15,417 $149,871
Deferred tax liabilities:
Unrealized gain from
appreciation of trading
securities . . . . . . . . . . . . . . ¥(787) ¥(4,223) $ (6,347)
Other . . . . . . . . . . . . . . . . . . . (670) (897) (5,403)
Total gross deferred
tax assets . . . . . . . . . . . . ¥(1,457) ¥(5,120) $ (11,750)
Net deferred tax assets . . . ¥17,127 ¥10,297 $138,121
7. SHORT-TERM BANK LOANS AND LONG-TERM DEBT
Short-term bank loans of certain of the Company’s consolidated
subsidiaries consist of notes maturing generally in three months. The
applicable annual interest rates on short-term bank loans outstanding
at March 31, 2001 and 2000 ranged from 0.78% to 20.57% and from
0.73% to 23.64%, respectively.
Long-term debt at March 31, 2001 and 2000 was as follows:
Thousands of
Millions of yen U.S. dollars
2001 2000 2001
1.5% unsecured convertible
bonds due 2005 . . . . . . . . . ¥11,483 ¥11,483 $ 92,605
0.35% unsecured convertible
bonds due 2002 . . . . . . . . . 19,999 19,999 161,282
0.55% unsecured convertible
bonds due 2005 . . . . . . . . . 20,000 20,000 161,290
1.375% unsecured bonds
due 2001 . . . . . . . . . . . . . . . 5,000 5,000 40,323
1.75% unsecured bonds
due 2003 . . . . . . . . . . . . . . . 5,000 5,000 40,323
2.15% unsecured bonds
due 2005 . . . . . . . . . . . . . . . 10,000 10,000 80,645
1.68% unsecured bonds
due 2006 . . . . . . . . . . . . . . . 20,000 —161,290
1.89% unsecured bonds
due 2007 . . . . . . . . . . . . . . . 10,000 —80,645
1.30% guaranteed notes
due 2001 . . . . . . . . . . . . . . . 5,324 4,561 42,936
1.61% guaranteed notes
due 2002 . . . . . . . . . . . . . . . 5,050 4,327 40,726
1.50% guaranteed notes
due 2005 . . . . . . . . . . . . . . . 8,260 —66,613
Loans, primarily from banks
with interest principally
at 0.86% to 9.20%
Secured . . . . . . . . . . . . . . 221 221 1,782
Unsecured . . . . . . . . . . . . 8,988 9,323 72,484
129,325 89,914 1,042,944
Less current portion . . . . . . 11,732 479 94,613
¥117,593 ¥89,435 $ 948,331
< 34 VICTOR COMPANY OF JAPAN, LIMITED 35 >