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47Annual Report 2011Nikon CorporationFinancial Section
10. Selling, General and Administrative Expenses
Selling, general and administrative expenses for the fiscal years ended March 31, 2010 and 2011 principally consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2010 2011 2011
Advertising expenses ¥63,067 ¥65,824 $791,633
Provision for doubtful receivables 916 65 787
Provision of warranty costs 5,553 4,833 58,128
Employees’ salaries 31,984 30,598 367,983
Net periodic retirement benefit cost 4,456 3,446 41,448
Employees’ bonuses and others 13,142 15,923 191,503
Research and development costs 60,261 60,767 730,817
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, 2010 and 2011.
The tax effects of significant temporary differences carry-forwards which result in deferred tax assets and liabilities at
March 31, 2010 and 2011, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2010 2011 2011
Deferred tax assets:
Write-down of inventories ¥34,434 ¥28,866 $347,153
Warranty reserve 1,855 2,395 28,806
Liability for employees’ retirement benefits 9,756 7,630 91,767
Depreciation and amortization 14,802 15,389 185,073
Accrued bonus 3,539 4,840 58,202
Other 13,985 13,132 157,932
Total ¥78,371 ¥72,252 $868,933
Deferred tax liabilities:
Deferred gains sales of property to be replaced ¥ 3,874 ¥ 3,509 $ 42,205
Unrealized gain on available-for-sale securities 1,790 687 8,259
Undistributed earnings of foreign subsidiaries 4,803 6,563 78,924
Other 1,464 1,476 17,756
Total ¥11,931 ¥12,235 $147,144
Net deferred tax assets ¥66,440 ¥60,017 $721,789
A valuation allowance of ¥4,438 million in 2010 and ¥4,237 million ($50,968 thousand) in 2011 was deducted from the amounts
calculated above, respectively.