Ricoh 2004 Annual Report Download - page 41

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The Company and its domestic subsidiaries are subject to a 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 normal statutory tax rate of approximately 42%. The normal
statutory tax rate differs from the effective tax rate for the years ended March
31, 2002, 2003 and 2004 as a result of the following:
Nondeductible expenses include directors’ bonuses and entertainment
expenses.
Based on an enacted change in the Japanese tax laws in March, 2003,
the normal statutory tax rate was reduced to approximately 40% effective
April 1, 2004, and such rate has been used in calculating the future expected
tax effects of temporary differences and carryforwards expected to be settled
or realized on or after April 1,2004.
The tax effects of temporary differences and carryforwards giving rise to
the consolidated deferred income tax assets and liabilities as of March 31,
2003 and 2004 are as follows:
40
Normal statutory 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
2004
42%
1
3
(4)
(1)
2
(1)
42%
42%
1
3
(0)
(0)
—
(1)
45%
2002 2003
42%
1
2
(1)
(3)
1
(2)
40%
Deferred income taxes and other (Current Assets)
Lease deposits and other (Non-Current Assets)
Accrued expenses and other (Current Liabilities)
Deferred income taxes (Long-Term Liabilities)
Thousands of
U.S. dollars
2004
Millions of yen
2004
2003
$ 396,279
453,096
(5,558)
(348,990)
$ 494,827
¥ 41,213
47,122
(578)
(36,295)
¥51,462
¥ 41,993
99,204
(241)
(30,653)
¥ 110,303
Assets:
Accrued expenses
Property, plant and equipment
Accrued pension and severance costs
Net operating losses carryforward
Other
Less—Valuation allowance
Liabilities:
Sales-type leases
Undistributed earnings of foreign subsidiaries and affiliates
Net unrealized holding gains on available-for-sale securities
Other
Net deferred tax assets
Thousands of
U.S. dollars
2004
$ 213,125
31,884
301,654
103,635
285,144
935,442
(86,634)
$ 848,808
$ (65,894)
(150,019)
(42,212)
(95,856)
$ (353,981)
$ 494,827
Millions of yen
2004
2003
¥ 26,184
4,014
84,230
13,839
31,460
159,727
(9,193)
¥ 150,534
¥ (7,112)
(12,801)
(8,957)
(11,361)
¥ (40,231)
¥ 110,303
¥ 22,165
3,316
31,372
10,778
29,655
97,286
(9,010)
¥ 88,276
¥ (6,853)
(15,602)
(4,390)
(9,969)
¥ (36,814)
¥ 51,462
Net deferred tax assets as of March 31, 2003 and 2004 are included in the consolidated balance sheets as follows: