Toshiba 1999 Annual Report Download - page 62

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Page
60.
TOSHIBA ANNUAL REPORT 1999
10. RESEARCH AND DEVELOPMENT:
Research and development costs are charged to expense as incurred and amounted to ¥316,703 million ($2,617,380 thousand)
and ¥322,928 million for the years ended March 31, 1999 and 1998, respectively.
11. ADVERTISING:
Advertising costs are expensed as incurred. Advertising expenses amounted to ¥73,909 million ($610,818 thousand) and ¥79,693
million for the years ended March 31, 1999 and 1998, respectively.
12. FOREIGN EXCHANGE GAINS AND LOSSES:
For the years ended March 31, 1999 and 1998, the net foreign exchange loss was ¥10,596 million ($87,570 thousand) and ¥33,229
million, respectively.
13. INCOME TAXES:
The company is subject to a number of different taxes based on income which, in the aggregate, indicate a normal statutory tax
rate in Japan of approximately 47.7 percent and 51.4 percent for the years ended March 31, 1999 and 1998, respectively. Due to
changes in Japanese income tax regulations, the normal statutory tax rate in Japan was reduced to approximately 47.7 percent
effective April 1, 1998 and further, was reduced to approximately 42.1 percent effective April 1, 1999. Those revised tax rates
enacted respectively during the fiscal years ended March 31, 1999 and 1998 were used in the measurement of deferred tax assets
and liabilities at March 31, 1999 and 1998, respectively. A reconciliation between the reported income tax expense and the
amount computed by multiplying the income before income taxes and minority interest by the applicable normal statutory tax
rate is as follows:
Thousands of
Millions of yen U.S. dollars
Years ended March 31 1999 1998 1999
Computed expected income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 5,351 ¥ 9,636 $ 44,223
Increase (reduction) in taxes resulting from:
Non-deductible expenses for tax purposes . . . . . . . . . . . . . . . . . . . . . . . . 4,738 5,441 39,157
Net valuation allowance for losses of subsidiaries . . . . . . . . . . . . . . . . . . 8,928 3,550 73,785
Loss on parent company’s investment in subsidiaries . . . . . . . . . . . . . . . (13,944) –(115,240)
Effect of changes in the statutory tax rates . . . . . . . . . . . . . . . . . . . . . . . 16,848 8,668 139,240
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,573 (2,820) 29,529
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 25,494 ¥24,475 $ 210,694