Pioneer 2011 Annual Report Download - page 43

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Pioneer Corporation Annual Report 2011 41
11. Income Taxes
Thousands of
Millions of Yen U.S. Dollars
2011 2010 2011
Deferred tax assets:
Write-down of inventories ¥ 4,193 ¥ 5,384 $ 50,518
Accrued expenses 9,908 9,476 119,374
Excess depreciation 3,897 4,949 46,952
Loss on impairment of property, plant and equipment 10,432 11,704 125,687
Loss on impairment of investment securities 5,943 6,289 71,602
Tax loss carryforwards 121,792 123,289 1,467,373
Others 4,233 2,946 51,000
Valuation allowance (148,286) (148,153) (1,786,578)
Total 12,112 15,884 145,928
Deferred tax liabilities:
Unrealized gain on available-for-sale securities (393) (619) (4,735)
Others (2,065) (2,134) (24,880)
Total (2,458) (2,753) (29,615)
Net deferred tax assets ¥ 9,654 ¥ 13,131 $ 116,313
Thousands of
Millions of Yen U.S. Dollars
2011 2010 2011
Current assets:
Deferred tax assets ¥ 5,530 ¥ 5,808 $ 66,627
Investments and other assets:
Deferred tax assets 6,057 9,389 72,976
Long-term liabilities:
Other long-term liabilities (1,933) (2,066) (23,289)
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, 2011 and 2010.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax
assets and liabilities at March 31, 2011 and 2010 were as follows:
2011 2010
Normal effective statutory tax rate 41.0 % (41.0) %
Expenses not deductible for income tax purposes 2.1 1.9
Revenue not taxable for income tax purposes (0.1) 0.3
Difference in foreign and Japanese tax rates (12.6) 0.3
Valuation allowance 8.0 52.5
Others—net 1.5 3.0
Actual effective tax rate 39.9 % 17.0 %
Reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected
in the accompanying consolidated statements of operations for the years ended March 31, 2011 and 2010
was as follows:
Net deferred tax assets for the years ended March 31, 2011 and 2010 were included in the following
accounts:
Notes to Consolidated Financial Statements