Ricoh 2003 Annual Report Download - page 42

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40
Incom e before incom e taxes, m inority interests and equity in earnings of affiliates and provision for incom e taxes for the years ended March 31, 2001, 2002 and 2003
are as follows:
8 . INCOME TAXES
The Com pany and its dom estic subsidiaries are subject to National Corporate
tax of 30%, an inhabitant tax of approximately 6% and a deductible Enterprise
tax approximately 10%, which in the aggregate resulted in the norm al statutory
tax rate of approximately 42%. The norm al statutory tax rate differs from the
effective tax rate for the years ended March 31, 2001, 2002 and 2003 as a result of
the following:
Norm al tax rate
Nondeductible expenses
Tax benefits not recognized on operating losses of
certain consolidated subsidiaries
Utilization of net operating loss carryforward
not previously recognized
Tax credit for increased research and development
expense
Effect of change in enacted tax rate
Other, net
Effective tax rate
2 0 0 3
42%
1
3
( 0)
( 0)
—
( 1)
45%
42%
2
0
( 2)
( 0)
—
3
45%
2001 2002
4 2 %
1
3
( 4 )
( 1 )
2
( 1 )
4 2 %
Nondeductible expenses include directors’ bonuses and entertainm ent
expenses.
Based on an enacted change in the Japanese tax laws in March, 2003, the
norm al statutory tax rate will be reduced to approximately 40% effective April 1,
2004, and such rate has been used in calculating the future expected tax effects of
tem porary differences and carryforwards that will be realized or settled after
March 31, 2004.
The tax effects of tem porary differences and carryforwards giving rise to the
consolidated deferred income tax assets and liabilities as of March 31, 2002 and
2003 are as follows:
Incom e before incom e taxes, m inority interests and equity in earnings of affiliates—
Domestic
Foreign
Thousands of
U.S. dollars
2 0 0 3
Millions of yen
2 0 0 3
20022001
$ 7 1 9 ,8 8 1
3 2 6 ,4 7 5
$ 1 ,0 4 6 ,3 5 6
¥ 8 4 ,9 4 6
3 8 ,5 2 4
¥123,470
¥ 95,723
18,227
¥113,950
¥77,820
19,945
¥97,765
Provision for incom e taxes—
Current:
Domestic
Foreign
$ 4 2 4 ,6 0 2
1 1 0 ,8 4 7
5 3 5 ,4 4 9
¥ 5 0 ,1 0 3
1 3 ,0 8 0
6 3 ,1 8 3
¥45,684
7,822
53,506
Deferred:
Domestic
Foreign
Consolidated provision for income taxes
( 10,380)
386
( 9,994)
¥43,512
Provision for incom e taxes
Shareholders’ investm ent:
Foreign currency translation adjustments
Unrealized gains ( losses) on securities
Unrealized losses on derivatives
Minim um pension liability adjustment
2 0 0 3
Millions of yen
2 0 0 3
20022001
¥43,512
(1,252)
629
—
( 15,818)
¥27,071
Thousands of
U.S. dollars
Total incom e taxes are allocated as follows:
( 9 ,0 4 3 )
( 2 ,1 5 6 )
( 1 1 ,1 9 9 )
¥ 5 1 ,9 8 4
¥ 43,564
8,801
52,365
( 3,524)
2,306
( 1,218)
¥ 51,147
( 7 6 ,6 3 6 )
( 1 8 ,2 7 1 )
( 9 4 ,9 0 7 )
$ 4 4 0 ,5 4 2
$ 4 4 0 ,5 4 2
( 7 ,0 0 0 )
( 9 ,5 7 6 )
( 7 6 )
( 2 6 1 ,1 1 0 )
$ 1 6 2 ,7 8 0
¥ 5 1 ,9 8 4
( 8 2 6 )
( 1 ,1 3 0 )
( 9 )
( 3 0 ,8 1 1 )
¥ 1 9 ,2 0 8
¥51,147
2,062
( 582)
( 146)
( 11,760)
¥40,721