Nikon 2003 Annual Report Download - page 35

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33
Deferred tax assets :
Write-down of inventories
Warranty reserve
Liability for employees’ retirement benefits
Depreciation and amortization
Net operating loss carryforwards
Other
Tota l
Deferred tax liabilities :
Deferred gains on sales of property to be replaced
Unrealized gain on available-for-sale securities
Undistributed earnings of foreign subsidiaries
Other
Tota l
Net deferred tax assets
Thousands of
U.S. Dollars
2003
$81,721
12,449
78,290
88,096
69,257
92,995
$422,808
47,773
19,218
16,886
$83,877
$338,931
2002
¥10,913
2,465
9,207
9,635
2,019
5,522
¥39,761
3,402
781
2,569
3,254
¥10,006
¥29,755
2003
¥9,823
1,496
9,410
10,589
8,325
11,178
¥50,821
5,742
2,310
2,030
¥10,082
¥40,739
Millions of Yen
Year ended March 31,
The reduction of the statutory effective tax rate resulted in a decrease in deferred tax assets (net of deferred tax liabilities) of ¥164
million ($1,363 thousand), and a charge to income taxes-deferred of ¥69 million ($573 thousand) and a decrease in unrealized gain (loss) on
available-for sale securities of ¥95 million ($790 thousand) for the year ended March 31, 2003.
The tax effects of significant temporary differences which result in deferred tax assets and liabilities, at March 31, 2003 and 2002, were
as follows:
A valuation allowance of ¥2,520 million ($20,969 thousand) in 2003 and ¥1,489 million in 2002 were deducted from the amounts
on the above table.
A reconciliation between the normal effective statutory tax rate for the fiscal years ended March 31, 2003 and 2002, and the actual
effective tax rates reflected in the consolidated statements of operations were as follows:
Normal statutory tax rate
Consolidated adjustment on unrealizable profits in inventories
Dividends from foreign subsidiaries not applicable to foreign tax credits
Tax rate differences in foreign subsidiaries
Increase (decrease) in valuation allowance
Other-net
Actual effective tax rate
2002
42%
238.8
53.5
(26.1)
17.2
(7.5)
317.9%
2003
42%
11.6
(14.4)
4.4
(12.2)
(4.6)
26.8%
10. RESEARCH AND DEVELOPMENT COSTS
Research and development costs incurred were ¥27,506 million ($228,832 thousand) and ¥27,313 million for the fiscal years ended March 31,
2003 and 2002, respectively.
11. LEASE PAYMENTS
Total lease payments under financing lease arrangements that do not transfer ownership of the leased property to the Company and its domestic
subsidiaries were ¥2,929 million ($24,364 thousand) and ¥3,533 million for the fiscal years ended March 31, 2003 and 2002, respectively.