Olympus 2004 Annual Report Download - page 44

4 2 O LYMPUS 2 0 0 4
2 0 0 4 2 0 0 3 2 0 0 2
Japanese statutory tax rate ....................................................................................... 41.8% 4 1 .8 % 4 1 .8 %
Effect of fo reign tax rate differences......................................................................... (4 .3 ) 2 .7 (1 .2 )
Non-taxable dividend income ................................................................................. — (0 .4 ) (1 .0 )
Non-deductible expenses ....................................................................................... 2.1 0 .3 3 . 3
Adjustments o f deferred tax assets and liabilities
for enacted changes in tax laws and rates .............................................................. — 1 .4 —
Impact o f o perating losses (utilized)/ g enerated for certain subsidiaries .......................... 4 .3 (2 . 0 ) 7 .9
Other, net............................................................................................................ 0.4 (0 .6 ) (1 .1 )
Effective tax rate..................................................................................................... 44.3% 4 3 .2 % 4 9 .7 %
Significant compo nents o f deferred inco me tax assets and liabilities as o f March 31, 200 4 and 2 003 were as follo ws:
Thousands of
M illions of yen U.S. dollars
2 0 0 4 2 0 0 3 2 0 0 4
Deferred inco me tax assets:
Invento ries........................................................................................................... ¥ 5 ,0 7 8 ¥ 5,7 2 7 $ 46,1 6 4
Depreciation o f pro perty, plant and equipment .......................................................... 4 ,0 9 9 3 ,8 6 2 3 7 ,2 6 4
Depreciation of intangible assets............................................................................. 2,651 1 ,8 8 3 2 4 ,1 0 0
Severance and retirement allo wances....................................................................... 2 ,255 4 ,5 6 5 2 0 ,5 0 0
Prepaid expenses ................................................................................................. 4,588 4 , 8 3 4 4 1 ,7 0 9
Marketab le and investment securities ....................................................................... 4 ,9 8 4 6 ,1 9 0 4 5 ,3 0 9
Deferred assets .................................................................................................... 268 4 6 3 2,436
Unrealized interco mpany pro fits .............................................................................. 6 ,1 11 6 , 3 9 3 5 5 ,5 5 5
Accrued bonuses .................................................................................................. 3,628 3 ,5 7 2 3 2 ,9 8 2
Other ................................................................................................................. 3,945 5 , 7 2 0 3 5 ,8 6 3
To tal deferred income tax assets ................................................................................ ¥ 3 7 ,6 0 7 ¥ 4 3 ,209 $ 3 4 1 ,8 82
Prepaid pension expenses ........................................................................................ (3,549) —(3 2 ,2 6 4 )
Net unrealized ho lding g ains (lo sses) on securities ....................................................... (2 ,492 ) (3 1 1 ) (2 2 ,6 5 5 )
To tal deferred income tax liabilities............................................................................ (5,0 9 6 ) (3 ,6 0 3 ) (4 6 ,3 2 7 )
Net deferred inco me tax assets ................................................................................. ¥ 2 6 ,4 7 0 ¥ 39 ,2 95 $ 2 4 0 ,636
The effective tax rate used for calculation o f deferred taxes assets and liabilities was 4 1 .8 % fo r the year ended March 31, 200 2 . Effective for
the year commencing o n April 1 , 2 0 0 4 or later, acco rding to the revised lo cal tax law, inco me tax rates for enterprise taxes will be reduced
as a result o f intro ducing the assessment by estimation o n the basis o f the size o f business. Based o n the change of inco me tax rates, for cal-
culation o f deferred taxes assets and liab ilities, the Co mpany and co nsolidated domestic subsidiaries used the effective tax rates o f before
change and after change for current items and non-current items, respectively, fo r the year ended March 3 1 , 2003.
As the result o f the change in the effective tax rates, deferred income tax assets decreased by ¥589 million ($ 5 ,355 thousand) and
inco me taxes-deferred increased by ¥601 million ($ 5 ,464 thousand) co mpared with what would have been reco rded under the previous lo cal
tax la w.
Fo r calculation o f deferred taxes assets and liabilities, the Co mpany and co nsolidated do mestic subsidiaries used the effective tax rates o f
after change fo r bo th current items and non-current items for the year ended March 31, 200 4 .
1 0 . SHAREHO LDERS’ EQ UITY
Under the Code, the follo wing are pro vided:
･The maximum amount that the Co mpany can distribute as dividends is calculated based on the non-co nsolidated financial statements o f the
Co mpany in accordance with the Co de.
･The entire amount o f the issue price of shares is required to be acco unted fo r as capital, altho ugh a company may, by reso lutio n of its
Bo ard of Directo rs, account for an amount no t exceeding o ne-half of the issue price o f the new shares as additio nal paid-in capital, which is
included in capital surplus.
･Dividends are appro ved by the shareho lders’ meeting held subsequent to the statuto ry fiscal period to which the dividends are payable to
shareho lders of record at the end of each such fiscal period.
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