Toshiba 2008 Annual Report Download - page 104

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Notes to Consolidated Financial Statements
Toshiba Corporation and Subsidiaries
March 31, 2008
Thousands of
Millions of yen U.S. dollars
Balance at April 1, 2007 ¥7,906 $ 79,060
Additions for tax positions of the current year 542 5,420
Reductions for tax positions of prior years (2,009) (20,090)
Lapse of statute of limitations or closed audits (313) (3,130)
Foreign currency translation adjustments (1,023) (10,230)
Balance at March 31, 2008 ¥5,103 $ 51,030
Total amount of unrecognized tax benefits that would reduce the effective tax rate, if recognized, is ¥1,148 million ($11,480
thousand).
The Company believes its estimates and assumptions of unrecognized tax benefits are reasonable and based on each of the
items of which the Company is aware at March 31, 2008, no significant changes to the unrecognized tax benefits are expected
within the next twelve months.
The Company files income tax returns in Japan and various foreign tax jurisdictions. In Japan, the Company is no longer
subject to regular income tax examinations by the tax authority for years before the fiscal year ended March 31, 2006 with
few exceptions. In other major foreign tax jurisdictions, the Company is no longer subject to regular income tax examinations
by tax authorities for years before the fiscal year ended March 31, 2002 with few exceptions.
17. SHAREHOLDERS’ EQUITY
RETAINED EARNINGS
Retained earnings at March 31, 2008 and 2007 included a legal reserve of ¥20,042 million ($200,420 thousand) and ¥17,921
million, respectively. The Corporation Law of Japan provides that an amount equal to 10% of distributions from retained
earnings paid by Toshiba Corporation and its Japanese subsidiaries be appropriated as a legal reserve. No further appropria-
tions are required when the total amount of the additional paid-in capital and the legal reserve equals 25% of their respective
stated capital. The Corporation Law of Japan also provides that additional paid-in capital and legal reserve are available for
appropriations by the resolution of the stockholders.
The amount of retained earnings available for dividends is based on Toshiba Corporation’s retained earnings determined
in accordance with generally accepted accounting principles in Japan and the Corporation Law of Japan. Retained earnings at
March 31, 2008 do not reflect current year-end dividends of ¥19,414 million ($194,140 thousand) which will be paid from
June 2, 2008.
Retained earnings at March 31, 2008 included the Company’s equity in undistributed earnings of affiliated companies
accounted for by the equity method in the amount of ¥59,982 million ($599,820 thousand).