Toshiba 2014 Annual Report Download - page 136

48 TOSHIBA Annual Report 2014
Toshiba Corporation and Subsidiaries
March 31, 2014
Notes to Consolidated Financial Statements
The Group's tax loss carryforwards for the corporate and local taxes at March 31, 2014 amounted to ¥464,137 million
($4,506,184 thousand) and ¥679,131 million ($6,593,505 thousand), respectively, the majority of which will expire during
the period from the year ending March 2015 through 2023. The Group utilized tax loss carryforwards of ¥124,024 million
($1,204,117 thousand) and ¥52,616 million to reduce current corporate taxes and ¥73,260 million ($711,262 thousand) and
¥23,904 million to reduce current local taxes during the years ended March 31, 2014 and 2013, respectively.
Realization of tax loss carryforwards and other deferred tax assets is dependent on the Group generating sufficient
taxable income prior to their expiration or the Group exercising certain available tax strategies. Although realization is not
assured, management believes it is more likely than not that all of the deferred tax assets, less the valuation allowance,
will be realized. The amount of such net deferred tax assets considered realizable, however, could be reduced in the near
term if estimates of future taxable income during the carryforward period are reduced.
A reconciliation table of the beginning and ending amount of unrecognized tax benefits is as follows:
Millions of yen
Thousands of
U.S. dollars
Year ended March 31 2014 2013 2014
Balance at beginning of year ¥ 5,349 ¥ 4,673 $ 51,932
Additions฀for฀tax฀positions฀of฀the฀current฀year 353 346 3,427
Additions฀for฀tax฀positions฀of฀prior฀years 250 486 2,427
Reductions for tax positions of the current year (567) (377) (5,505)
Reductions for tax positions of prior years (722) (24) (7,010)
Lapse of statute of limitations or closed audits (575) (414) (5,582)
Foreign฀currency฀translation฀adjustments 481 659 4,670
Balance at end of year ¥ 4,569 ¥ 5,349 $ 44,359
The total amounts of unrecognized tax benefits that would reduce the effective tax rate, if recognized, are ¥1,472 million
($14,291 thousand) and ¥1,664 million at March 31, 2014 and 2013, respectively.
The Group recognizes interest and penalties accrued related to unrecognized tax benefits in income taxes in the
consolidated statements of income. Both interest and penalties accrued as of March 31, 2014 and 2013, and interest and
penalties included in income taxes for the years ended March 31, 2014 and 2013 are not significant.
The Group believes its estimates and assumptions of unrecognized tax benefits are reasonable and based on each of
the items of which the Group is aware at March 31, 2014, no significant changes to the unrecognized tax benefits are
expected within the next twelve months.
The Group files income tax returns in Japan and various foreign tax jurisdictions. In Japan, the Group is no longer
subject to regular income tax examinations by the tax authority for years before the fiscal year ended March 31, 2012 with
few exceptions. In other major foreign tax jurisdictions, the Group is no longer subject to regular income tax examinations
by tax authorities for years before the fiscal year ended March 31, 2006 with few exceptions.