Mitsubishi 2003 Annual Report Download - page 62

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60
ANNUAL REPORT 2003 POWER TO CHANGE
The effective tax rates reflected in the consolidated statements of operations for the years ended March 31, 2003 and 2002 differ
from the statutory tax rate for the following reasons:
Year ended March 31, 2003 2002
Statutory income tax rate for MMC 41.7 % 41.7 %
Income (loss) at subsidiaries (151.7) 9.4
Increase (decrease) in valuation allowance 109.8 (12.4)
Income from affiliated companies (2.3) 4.5
Amortization of consolidation goodwill (0.8) (39.8)
Increase by tax effect of subsidiaries in North America –130.1
Expenses not deductible for income taxes purposes 5.3 3.4
Other 5.2 (3.1)
Income taxes as a percentage of gain (loss) before income taxes and minority interests 7.2 133.8
The significant components of deferred tax assets and liabilities as of March 31, 2003 and 2002 were as follows:
(In thousands of
(In millions of yen) U.S. dollars)
March 31, 2003 2002 2003
Deferred tax assets:
Net operating loss carry forward ¥ 120,460 ¥ 134,409 $ 1,002,163
Accrued retirement benefits 39,370 50,337 342,537
Other 177,549 160,652 1,477,113
Less valuation allowance (125,202) (120,596) (1,041,614)
Total deferred tax assets 212,179 224,803 1,765,216
Deferred tax liabilities:
Reserves under the Special Taxation Measures Law (1,773) (16,822) (14,750)
Differences between cost of investments and
underlying net equity at fair value (8,021) (17,858) (66,730)
Accelerated depreciation (50,378) (13,710) (419,118)
Other (30,265) (30,023) (251,789)
Total deferred tax liabilities (90,438) (78,415) (752,396)
Net deferred tax assets ¥ 121,741 ¥ 146,387 $ 1,012,820
Deferred tax assets and liabilities at March 31, 2003 and 2002 are included in the consolidated balance sheets as follows:
(In thousands of
(In millions of yen) U.S. dollars)
Year ended March 31, 2003 2002 2003
Current assets ¥ 54,955 ¥ 71,692 $ 457,196
Investments and other assets 77,644 91,913 645,957
Other current liabilities (327) (33) (2,720)
Other non-current liabilities (10,532) (17,184) (87,621)
Net deferred tax assets ¥121,741 ¥146,387 $1,012,820