Nikon 2001 Annual Report Download - page 30

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page 28
At the general shareholders’ meeting held on June 29, 1999, the Company’s shareholders approved that the Company was authorized to
repurchase, at management’s discretion, up to 35 million shares of the Company’s stock for the purpose of canceling the shares by charging
repurchased amounts to retained earnings.
Under the Code, the amount available for dividends is based on retained earnings as recorded on the Company’s books. At March 31, 2001,
retained earnings as recorded on the Company’s books were ¥64,681 million ($522,041 thousand), which was available for future dividends sub-
ject to the approval of the shareholders and legal reserve requirements.
8. INCOME TAXES
The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted in a nor-
mal effective statutory tax rate of approximately 42% for the years ended March 31, 2001 and 2000.
The tax effects of significant temporary differences which result in 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:
Inventories ¥ 16,581 ¥ 4,649 $ 133,826
Warranty reserve 2,120 1,209 17,116
Liability for employees' retirement benefits 5,433 43,854
Depreciation and amortization 7,927 6,118 63,976
Other 10,166 7,178 82,049
Total ¥ 42,227 ¥ 19,154 $ 340,821
Deferred tax liabilities :
Deferred profits on sales of property to be replaced 2,468 2,141 19,923
Unrealized gain on available-for-sale securities 3,414 27,556
Undistributed earnings of associated companies 2,545 20,539
Other 1,974 494 15,932
Total ¥ 10,401 ¥ 2,635 $ 83,950
Net deferred tax assets ¥ 31,826 ¥ 16,519 $ 256,871
Valuation allowance of ¥2,764 million ($22,311 thousand) in 2001 and ¥3,451 million in 2000 were deducted from the amounts calculated
above, respectively.
A reconciliation between the normal effective statutory tax rate for the years ended March 31, 2001 and 2000, and the actual effective tax
rates reflected in the consolidated statements of income were as follows:
Year ended March 31,
2001 2000
Normal statutory tax rate 42% 42%
Nontaxable consolidated adjustment (16.7 ) 13.9
Undistributed earnings of associated companies 8.5
Other-net (4.0 ) (23.6 )
Actual effective tax rate 29.8% 32.3%