Pioneer 2014 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2014 Pioneer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 60

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60

9. Income Taxes
The Company and its Japanese subsidiaries are subject to Japanese national and local income taxes which, in the
aggregate, resulted in a normal effective statutory tax rate of approximately 38% for the years ended March 31, 2014
and 2013.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax
assets and liabilities as of March 31, 2014 and 2013, were as follows:
Prior to April 1, 2013, “Accrued pension and severance costs” was included in “Others” of “Deferred tax assets” in
the above table. Due to the application of the revised accounting standard and the guidance, “Others” of “Deferred
tax assets” of ¥5,910 million was reclassified to “Accrued pension and severance costs” in the amount of ¥3,618
million and “Other” in the amount of ¥2,292 million as of March 31, 2013.
Millions of Yen
Thousands of
U.S. Dollars
2014 2013 2014
Deferred tax assets:
Write-down of inventories ¥ 3,924 ¥ 3,470 $ 38,097
Accrued expenses 4,539 4,997 44,068
Excess depreciation 2,907 2,850 28,223
Loss on impairment of property, plant and equipment 5,956 6,703 57,825
Loss on impairment of investment securities 6,834 6,846 66,350
Accrued pension and severance costs 10,651 3,618 103,408
Tax loss carryforwards 93,828 92,375 910,951
Others 1,813 2,292 17,602
Valuation allowance (120,294) (112,045) (1,167,903)
Total ¥ 10,158 ¥ 11,106 $ 98,621
Deferred tax liabilities:
Unrealized gain on available-for-sale securities (421) (406) (4,087)
Others (1,045) (1,534) (10,146)
Total (1,466) (1,940) (14,233)
Net deferred tax assets ¥ 8,692 ¥ 9,166 $ 84,388
2014 2013
Normal effective statutory tax rate 38.0% 38.0%
Expenses not deductible for income tax purposes 10.2 (8.3)
Revenue not taxable for income tax purposes (1.1) 1.7
Difference in foreign and Japanese tax rates (15.5) 0.4
Valuation allowance 45.1 (108.7)
Foreign tax credits 8.7 (4.8)
Others—net 5.7 (4.0)
Actual effective tax rate 91.1% (85.7)%
Reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the
accompanying consolidated statement of operations for the years ended March 31, 2014 and 2013, was as follows:
43
Pioneer Corporation
Annual Report 2014