Pioneer 2013 Annual Report Download - page 42

10. Income Taxes
tional paid-in capital (a component of capital surplus)
or as a legal reserve (a component of retained earn-
ings), depending on the equity account charged upon
the payment of such dividends, until the aggregate
amount of additional paid-in capital and legal reserve
equals 25% of the common stock. Under the Compa-
nies Act, the total amount of additional paid-in capital
and legal reserve may be reversed without limitation.
The Companies Act also provides that common stock,
legal reserve, additional paid-in capital, other capi-
tal surplus and retained earnings can be transferred
among the accounts under certain conditions upon
resolution of the shareholders.
c. Treasury Stock and Treasury Stock
Acquisition Rights
The Companies Act also provides for companies to
purchase treasury stock and dispose of such trea-
sury stock by resolution of the board of directors. The
amount of treasury stock purchased cannot exceed
the amount available for distribution to the share-
holders which is determined by a specified formula.
Under the Companies Act, stock acquisition rights are
presented as a separate component of equity. The
Companies Act also provides that companies can
purchase both treasury stock acquisition rights and
treasury stock. Such treasury stock acquisition rights
are presented as a separate component of equity or
deducted directly from stock acquisition rights.
The Company and its Japanese subsidiaries are subject to Japanese national and local income taxes which, in the
aggregate, resulted in normal effective statutory tax rates of approximately 38% and 41% for the years ended March
31, 2013 and 2012, respectively.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax
assets and liabilities as of March 31, 2013 and 2012, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Deferred tax assets:
Write-down of inventories ¥ 3,470 ¥ 4,037 $ 36,915
Accrued expenses 4,997 7,592 53,159
Excess depreciation 2,850 2,766 30,319
Loss on impairment of property, plant and equipment 6,703 7,418 71,309
Loss on impairment of investment securities 6,846 5,073 72,830
Tax loss carryforwards 92,375 111,932 982,713
Others 5,910 4,258 62,872
Valuation allowance (112,045) (128,814) (1,191,968)
Total ¥ 11,106 ¥ 14,262 $ 118,149
Deferred tax liabilities:
Unrealized gain on available-for-sale securities (406) (377) (4,319)
Others (1,534) (1,278) (16,319)
Total (1,940) (1,655) (20,638)
Net deferred tax assets ¥ 9,166 ¥ 12,607 $ 97,511
Pioneer Corporation Annual Report 2013
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