JVC 2002 Annual Report Download - page 39

ANNUAL REPORT 2 0 0 2 3 7
Millions of yen
Over one year but Over five years but
Within one year within five years within ten years Over ten years Total
2001:
Bonds
Government bonds ¥ 304 ¥ 1 ¥ —¥ —¥ 305
Corporate bonds ——996 —996
Other bonds 1,997 5,242 —1,974 9,213
Others ——281 —281
Total ¥2,301 ¥5,243 ¥1,277 ¥1,974 ¥10,795
Thousands of U.S. dollars
Over one year but Over five years but
Within one year within five years within ten years Over ten years Total
2002:
Bonds
Government bonds $ 8 $ — $ —$ —$ 8
Corporate bonds ——7 ,4 5 1 —7 ,4 5 1
Other bonds 2 1 ,0 6 0 — — —21,060
Total $2 1,0 6 8 $ —$ 7 ,4 5 1 $ —$ 2 8 ,5 1 9
Available-for-sale securities sold in the years ended March 31, 2002
and 2001:
Thousands of
Millions of yen U.S. dollars
2002 20 01 2 0 0 2
Sales ¥19,640 ¥16,160 $ 1 4 7 ,6 6 9
Gains 7 6 3 1,450 5 , 7 3 7
Losses 3 5 8 640 2 ,6 9 2
6 . INCOME TAXES
Income taxes in Japan consist of corporation, enterprise and inhabit-
ants’ taxes. The Company and its domestic consolidated subsidiar-
ies are subject to the income taxes referred to above which, in the
aggregate, resulted in statutory tax rates of approximately 42.0%.
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 rate for financial
statement purposes for the year ended March 31, 2001.
20 01
Statutory tax rate 42.0 %
Lower tax rates of overseas subsidiaries (7.4)%
Expenses not deductible for tax purposes 20.0 %
Effect of changes in valuation allowance
for deferred tax assets (13.7)%
Other 35.8 %
Effective tax rate 76.7 %
Information for 2002 is not prepared as the Company incurred a net
loss in the year ended March 31, 2002.
Significant components of the Company’s deferred tax assets and
liabilities at March 31, 2002 and 2001 were as follows:
Thousands of
Millions of yen U.S. dollars
2 0 0 2 2001 2 0 0 2
Deferred tax assets:
Loss on devaluation
of inventory ¥ 5 ,4 6 5 ¥ 4,939 $ 4 1,09 0
Accrued expenses not
deductible for tax purposes 5 ,9 5 6 6,479 44,782
Accrued restructuring charges
not currently deductible 5 ,5 9 7 —42,083
Depreciation 8 ,0 2 8 7,938 60,361
Retirement and severance
benefits 5 ,1 0 1 3,474 38,353
Tax loss carryforwards 21,767 11,009 1 6 3 ,6 6 2
Other 13,640 9,657 1 0 2 ,5 5 6
Total gross deferred
tax assets 65,554 43,496 4 9 2 , 8 8 7
Less valuation allowance (4 4 ,6 2 8 ) 24,912 (335,549)
Net deferred tax assets ¥2 0 ,9 2 6 ¥18,584 $ 1 5 7 , 3 3 8
Deferred tax liabilities:
Unrealized gain from
appreciation of trading
securities ¥ (94 4 ) ¥ (787) $ (7 ,0 98 )
Net unrealized holding
gains on securities (670) (—)(5 ,0 3 7 )
Other (823) (670) (6 ,1 8 8 )
Total gross deferred
tax liabilities ¥ (2 ,4 3 7 ) ¥ (1,457) $ (1 8,32 3 )
Net deferred tax assets ¥1 8 ,4 8 9 ¥17,127 $ 1 3 9 , 0 1 5