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Nikon Annual Report 2009 43
10. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses for the fiscal years ended March 31, 2009 and 2008 principally consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Advertising expenses ¥74,891 ¥75,275 $762,408
Provision for doubtful receivables 4,868 749 49,564
Provision of warranty costs 5,833 6,545 59,384
Employees’ salaries 32,483 34,152 330,682
Net periodic retirement benefit cost 3,354 3,015 34,143
Employees’ bonuses and others 14,851 17,689 151,185
Research and development costs 61,489 58,373 625,971
11. INCOME TAXES
The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted in
a normal effective statutory tax rate of approximately 40.6% for the fiscal years ended March 31, 2009 and 2008.
The tax effects of significant temporary differences and loss carry-forwards which result in deferred tax assets and liabilities at March 31,
2009 and 2008, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Deferred tax assets:
Write-down of inventories ¥24,869 ¥23,164 $253,175
Warranty reserve 1,961 3,009 19,966
Liability for employees’ retirement benefits 8,128 6,769 82,749
Depreciation and amortization 17,592 15,028 179,087
Unrealized gain on available-for-sale securities 2,512 25,576
Accrued bonus 2,801 5,008 28,517
Other 7,529 10,851 76,632
Total ¥65,392 ¥63,829 $665,702
Deferred tax liabilities:
Deferred gains on sales of property to be replaced ¥ 4,315 ¥ 4,924 $ 43,932
Unrealized gain on available-for-sale securities 5,693
Undistributed earnings of foreign subsidiaries 3,858 8,258 39,273
Other 1,254 733 12,765
Total 9,427 19,608 95,970
Net deferred tax assets ¥55,965 ¥44,221 $569,732
A valuation allowance of ¥3,085 million ($31,405 thousand) in 2009 and ¥2,613 million in 2008 were deducted from the amounts
calculated above, respectively.
A reconciliation between the normal effective statutory tax rate for the fiscal years ended March 31, 2009 and 2008, and the actual
effective tax rates reflected in the consolidated statements of income is as follows:
Year ended March 31,
2009 2008
Normal statutory tax rate 40.6% 40.6%
Tax credit for research and development costs (4.0) (2.7)
Tax difference of consolidated subsidiaries (6.0) (3.3)
Dividends from foreign subsidiaries not applicable to foreign tax credits 9.1
Increase in valuation allowance 3.5
Tax effect on retained earnings for foreign subsidiaries (11.2) 1.7
Tax benefits for a foreign manufacturing subsidiary (4.4) (1.3)
Other-net 0.8 0.3
Actual effective tax rate 28.4% 35.3%