Sharp 2014 Annual Report Download - page 50

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48 SHARP CORPORATION
Financial Section
The Company is subject to a number of different income taxes
which, in the aggregate, indicate a statutory tax rate in Japan of
approximately 40.6% for the year ended March 31, 2012, and
approximately 37.9% for the year ended March 31, 2013 and
2014.
The Company and its wholly owned domestic subsidiaries
have adopted the consolidated tax return system of Japan.
The differences between the statutory tax rate and the effec-
tive tax rate for financial statement purposes for the years ended
March 31, 2012 and 2013 are not disclosed because loss before
income taxes and minority interests were recorded.
The following table summarizes the significant differences between the statutory tax rate and the effective tax rate for financial
statements purposes for the year ended March 31, 2014:
Significant components of deferred tax assets and deferred tax liabilities as of March 31, 2012, 2013 and 2014 were as follows:
4. Income Taxes
2012 2013 2014
Statutory tax rate — — 37.9%
Foreign withholding tax — — 13.6
Expenses not deductible for tax purposes — — 10.4
Income taxes for prior periods — — 15.7
Differences in normal tax rates of overseas subsidiaries — — (8.0)
Other — — 2.1
Effective tax rate — — 71.7%
Yen
(millions)
U.S. Dollars
(thousands)
2012 2013 2014 2014
Deferred tax assets:
Inventories ¥ 70,797 ¥ 73,924 ¥ 42,240 $ 414,118
Accrued expenses 20,047 15,997 19,165 187,892
Accrued bonuses 8,372 4,310 9,635 94,461
Provision for loss on litigation — 12,249 7,691 75,402
Net defined benefit liability — — 35,463 347,676
Buildings and structures 962 12,255 11,712 114,824
Machinery, equipment and vehicles 1,466 10,577 7,986 78,294
Software 17,113 14,961 9,183 90,029
Long-term prepaid expenses 14,104 21,914 21,319 209,010
Loss carried forward 161,893 247,570 278,536 2,730,745
Other 37,482 52,463 51,266 502,608
Gross deferred tax assets 332,236 466,220 494,196 4,845,059
Valuation allowance (197,223) (427,832) (448,022) (4,392,373)
Total deferred tax assets 135,013 38,388 46,174 452,686
Deferred tax liabilities:
Retained earnings appropriated for tax
allowable reserves (42,445) (3,258) (2,342) (22,961)
Net unrealized holding gains (losses) on
securities (3,087) (3,339) (3,770) (36,961)
Other (16,985) (15,238) (11,156) (109,372)
Total deferred tax liabilities (62,517) (21,835) (17,268) (169,294)
Net deferred tax assets ¥ 72,496 ¥ 16,553 ¥ 28,906 $ 283,392