Nintendo 2004 Annual Report Download - page 52

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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, 2004 and 2003.
Note 8. Income Taxes
Deferred tax assets:
Inventory - write-downs and
elimination of unrealized profit
Accrued expenses
Research and development costs
Unrealized loss on land
Reserve for employee retirement and severance benefits
Unrealized loss on investments in securities
Depreciation
Allowance for doubtful accounts
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)
$
Significant components of deferred tax assets and liabilities are summarized as follows:
Reconciliation of the statutory tax rate and the effective income tax rate:
50
Nintendo Co., Ltd. and consolidated subsidiaries
Years ended March 31, 2004 and 2003
Notes to Consolidated Financial Statements
¥11,352
9,264
4,941
2,572
1,657
1,417
1,351
1,021
8,149
41,724
(1,276)
40,448
(4,545)
(1,114)
(747)
(6,406)
¥34,042
$108,114
88,227
47,060
24,494
15,781
13,496
12,862
9,724
77,611
397,369
(12,154)
385,215
(43,290)
(10,606)
(7,114)
(61,010)
$324,205
As of March 31, 2004
Statutory tax rate
Expenses not deductible for tax purposes
Extra tax deduction on expenses for research
Differences in consolidated foreign subsidiaries' tax rate
Other
Effective income tax rate
42.0%
0.4
(1.4)
(2.6)
(1.2)
37.2%
Year ended March 31, 2004