Nikon 2014 Annual Report Download - page 71

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A reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the consolidated statement
of income for the year ended March 31, 2014, with the corresponding figures for 2013 is as follows:
2013 2014
Normal statutory tax rate 38.0% 38.0%
Tax credit for research and development costs (2.2) (3.0)
Tax rate difference of consolidated subsidiaries (7.1) (5.4)
Deferred tax assets for unrealizable profits 0.4 (0.5)
Increase (decrease) in valuation allowance (1.1) 4.1
Tax effect on retained earnings for foreign subsidiaries 2.4 1.8
Amortization of goodwill 0.4 0.3
Effect of corporate income tax rate reduction in Japan 2.1
Other — net 0.6 (0.1)
Actual effective tax rate 31.4% 37.3%
New tax reform laws enacted in 2014 in Japan changed the normal effective statutory tax rate for the fiscal years beginning on or after
April 1, 2014, from approximately 38.01% to 35.64%. The effect of this change was to decrease deferred tax assets in the consolidated
balance sheet as of March 31, 2014 by ¥1,551 million ($15,070 thousand) and to increase income taxes—deferred in the consolidated
statement of income for the year then ended by ¥1,546 million ($15,019 thousand).
12. Research and Development Costs
Research and development costs charged to income were ¥76,497 million and ¥74,552 million ($724,369 thousand) for the fiscal years
ended March 31, 2013 and 2014, respectively.
13. Leases
The Group leases certain machinery and equipment for manufacturing.
The minimum rental commitments under noncancelable operating leases at March 31, 2013 and 2014 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2014 2014
Due within one year ¥ 3,634 ¥4,326 $42,031
Due after one year 6,476 4,168 40,499
Total ¥10,110 ¥8,494 $82,530
69
NIKON REPORT 2014