Nintendo 2003 Annual Report Download - page 70

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Reconciliation of the statutory tax rate and the effective tax rate for the years ended March 31, 2003 and 2002 are excluded,
since the differences are not more than five one-hundredth of the statutory tax rate.
Legislation No.9 of 2003 which amends a portion of local tax laws was officially announced on March 31, 2003. Based upon
this, the statutory tax rate which is used to calculate deferred tax assets and liabilities as of March 31, 2003 has decreased from
42.0% to 40.6%. This is applicable to deferred tax assets and liabilities that are expected to dissolve after April 1, 2004. The
adjustment due to the change is minor.
The Company is subject to several Japanese taxes based on income, which, in the aggregate, result in a normal statutory tax
rates of approximately 42% for the years ended March 31, 2003 and 2002.
Note 8. Income Taxes
Deferred tax assets:
Inventory - write-downs and
elimination of unrealized profit
Accrued expenses
Research and development costs
Accrued enterprise tax
Reserve for employee retirement
and severance benefits
Unrealized loss on land
Allowance for doubtful accounts
Royalty expenses
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized gains on other securities
Undistributed retained earnings
of an overseas subsidiary
Other
Total deferred tax liabilities
Net deferred tax assets
Japanese Yen in Millions
¥
U.S. Dollars in Thousands (Note 1)
$
As of March 31,
¥11,383
10,426
4,111
3,417
2,770
2,431
1,829
1,436
12,539
50,342
(1,735)
48,607
(1,541)
(503)
(706)
(2,750)
¥45,857
2003
¥9,721
20,383
5,458
2,459
1,806
2,515
2,222
1,478
7,183
53,225
(1,668)
51,557
(2,787)
(852)
(954)
(4,593)
¥46,964
2002
$94,858
86,882
34,256
28,478
23,083
20,260
15,245
11,966
104,490
419,518
(14,458)
405,060
(12,841)
(4,194)
(5,882)
(22,917)
$382,143
2003
$81,008
169,861
45,487
20,493
15,052
20,959
18,519
12,313
59,850
443,542
(13,900)
429,642
(23,222)
(7,100)
(7,953)
(38,275)
$391,367
2002
Significant components of deferred tax assets and liabilities are summarized as follows:
66
Nintendo Co., Ltd. and consolidated subsidiaries
Years ended March 31, 2003 and 2002
Notes to Consolidated Financial Statements