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63
NIKON REPORT 2015
Financial and Corporate Data
Millions of Yen
Thousands of
U.S. Dollars
2014 2015 2015
Deferred tax liabilities:
Reserve for advanced depreciation of noncurrent assets ¥ 5,129 ¥ 4,566 $ 37,996
Unrealized gain on available-for-sale securities 5,432 8,792 73,162
Undistributed earnings of foreign subsidiaries 9,653 11,172 92,968
Other 6,775 3,027 25,187
Total ¥26,989 ¥27,557 $229,313
Net deferred tax assets ¥34,505 ¥36,000 $299,580
A reconciliation between the normal effective statutory tax rates and the actual effective tax rates reected in the accompanying consoli-
dated statement of income for the year ended March 31, 2015, with the corresponding gures for 2014 is as follows:
2014 2015
Normal statutory tax rate 38.0% 35.6%
Tax credit for research and development costs (3.0) (3.9)
Tax rate difference of consolidated subsidiaries (5.4) (8.5)
Deferred tax assets for unrealizable prots (0.5) (0.3)
Increase in valuation allowance 4.1 13.6
Tax effect on retained earnings for foreign subsidiaries 1.8 4.3
Tax exemption for foreign subsidiaries (2.0) (4.7)
Amortization of goodwill 0.3 0.7
Effect of corporate income tax rate reduction in Japan 2.1 8.0
Other—net 1.9 2.8
Actual effective tax rate 37.3% 47.6%
“Partial Revision of Income Tax Act” (Act No. 9 of 2015) and “Partial Revision of Local Tax Act” (Act No. 2 of 2015) were issued in
Japan on March 31, 2015, which reduced the effective statutory tax rate from 35.6% to 33.1% for the scal year starting April 1, 2015,
and to 32.3% for the scal year starting April 1, 2016.
In accordance with the changes above, deferred tax assets (the net amount including deferred tax liabilities) decreased by ¥1,866 million
($15,529 thousand), while income tax-deferred increased by ¥2,826 million ($23,520 thousand).
12. Research and Development Costs
Research and development costs charged to income were ¥74,552 million and ¥66,730 million ($555,298 thousand ) for the scal years
ended March 31, 2014 and 2015, respectively.
13. Leases
The Group leases certain machinery and equipment for manufacturing.
The minimum rental commitments under noncancelable operating leases at March 31, 2014 and 2015 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2014 2015 2015
Due within one year ¥4,326 ¥3,615 $30,086
Due after one year 4,168 3,697 30,764
Total ¥8,494 ¥7,312 $60,850