Nintendo 2005 Annual Report Download - page 53

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52
Nintendo Co., Ltd. and consolidated subsidiaries
The Company is subject to several Japanese taxes based on income, which, in the aggregate, result in a normal statutory tax
rates of approximately 40.6% in Fiscal 2005 and 42% in Fiscal 2004.
Note 8. Income Taxes
Significant components of deferred tax assets and liabilities are summarized as follows:
Deferred tax assets:
Inventory - write-downs and
elimination of unrealized profit
Research and development costs
Other A/P and accrued expenses
Accrued enterprise tax
Land
Unrealized loss on investments in securities
Reserve for employee retirement and severance benefits
Depreciation
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized gains on other securities
Undistributed retained earnings of subsidiaries and affiliates
Other
Total deferred tax liabilities
Net deferred tax assets
Japanese Yen in Millions
¥
U.S. Dollars in Thousands (Note 1)
$
As of March 31, 2005
¥7,418
6,998
5,428
3,452
2,572
1,962
1,337
1,059
7,277
37,503
(429)
37,074
(4,918)
(1,769)
(717)
(7,404)
¥29,670
$69,322
65,404
50,730
32,262
24,035
18,336
12,495
9,898
68,011
350,493
(4,010)
346,483
(45,958)
(16,534)
(6,703)
(69,195)
$277,288
Reconciliation of the statutory tax rate and the effective tax rate for the year ended March 31, 2005 is omitted, since the
difference is not more than five one-hundredth of the statutory tax rate.
Years ended March 31, 2005 and 2004
Notes to Consolidated Financial Statements