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10. Selling, General and Administrative Expenses
Selling, general and administrative expenses for the fiscal years ended March 31, 2013 and 2014 principally consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2013 2014 2014
Advertising expenses ¥83,815 ¥73,232 $711,545
Provision for doubtful receivables (461) (129) (1,251)
Provision of warranty costs 4,212 4,992 48,505
Employees’ salaries 32,855 32,966 320,303
Net periodic retirement benefit cost 2,357 2,149 20,881
Employees’ bonuses and others 17,682 17,333 168,409
Research and development costs 76,497 74,552 724,369
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 38.0% for the fiscal years ended March 31, 2013 and 2014.
The tax effects of significant temporary differences and tax loss carryforwards, which result in deferred tax assets and liabilities, at March
31, 2013 and 2014, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2014 2014
Deferred tax assets:
Write-down of inventories ¥33,433 ¥28,204 $274,041
Warranty reserve 6,590 7,933 77,082
Liability for employees’ retirement benefits 529 1,474 14,320
Depreciation and amortization 16,560 15,844 153,946
Accrued bonuses 3,654 4,575 44,457
Other 6,097 3,464 33,651
Total ¥66,863 ¥61,494 $597,497
Deferred tax liabilities:
Reserve for advanced depreciation of noncurrent assets ¥ 2,730 ¥ 5,129 $ 49,839
Unrealized gain on available-for-sale securities 3,816 5,432 52,779
Undistributed earnings of foreign subsidiaries 8,272 9,653 93,793
Other 2,022 6,775 65,823
Total ¥16,840 ¥26,989 $262,234
Net deferred tax assets ¥50,023 ¥34,505 $335,263
A valuation allowance of ¥4,660 million in 2013 and ¥7,897 million ($76,731 thousand) in 2014 was deducted from the amounts
calculated above.
FINANCIAL INFORMATION
Notes to Consolidated Financial Statements
68 NIKON REPORT 2014