Pioneer 2009 Annual Report Download - page 43

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Annual Report 2009 41
10. INCOME TAXES
The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate,
resulted in a normal effective statutory tax rate of approximately 41% for the years ended March 31, 2009 and 2008.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities
at March 31, 2009 and 2008 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Deferred tax assets:
Write-down of inventories ¥ 9,529 ¥ 7,259 $ 97,235
Accrued expenses 11,540 15,989 117,755
Excess depreciation 6,135 6,634 62,602
Loss on impairment of property, plant and equipment 15,231 23,669 155,418
Loss on impairment of investment securities 8,720 1,873 88,980
Tax loss carryforwards 95,227 48,167 971,704
Others 7,392 7,012 75,429
Valuation allowance (132,987) (65,084) (1,357,011)
Total 20,787 45,519 212,112
Deferred tax liabilities:
Unrealized gain on available-for-sale securities (868) (1,182) (8,857)
Others (3,055) (2,279) (31,173)
Total (3,923) (3,461) (40,030)
Net deferred tax assets ¥ 16,864 ¥ 42,058 $ 172,082
Reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying
consolidated statements of operations for the years ended March 31, 2009 and 2008 was as follows:
2009 2008
Normal effective statutory tax rate (41.0)% 41.0%
Expenses not deductible for income tax purposes 1.2 28.2
Revenue not taxable for income tax purposes (0.4) (6.0)
Difference in foreign and Japanese tax rates (0.1) (119.7)
Valuation allowance 71.7 1,048.4
Others—net (0.9) (3.6)
Actual effective tax rate 30.5% 988.3%
Net deferred tax assets for the years ended March 31, 2009 and 2008 were included in the following accounts:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Current Assets:
Deferred tax assets ¥ 7,097 ¥17,089 $ 72,418
Investments and Other Assets:
Deferred tax assets 12,484 25,250 127,387
Long-term Liabilities:
Other long-term liabilities (2,717) (281) (27,724)