Wacom 2008 Annual Report Download - page 33

12. Income taxes:
Income taxes applicable to the Company include
corporation tax, enterprise tax and inhabitants tax,
which, in aggregate, represent a statutory tax rate of
approximately 39.7% for the years ended March 31,
2007 and 2008.

The significant components of deferred tax assets
and liabilities for the years ended March 31, 2007
and 2008 are as follows:
11. Cash and cash equivalents:
Reconciliation of cash and deposits in the
consolidated balance sheets and cash and cash
equivalents in the consolidated statements of cash
flows is as follows, flows is as follows,
Cash and deposits
Less:Time deposits with
maturities exceeding three
month
Securities
Cash and cash equivalents
¥12,707,153
–
–
¥12,707,153
¥8,078,235
(1,041)
5,500,000
¥13,577,194
$80,629
(10)
54,896
¥135,514
Thousands of
U.S. dollars
Thousands of yen
2007 2008 2008
March 31 March 31
b) Dividends of which record date is attributable to
the accounting period ended March 31, 2008 but
to be effective after said accounting period.
The Company resolved approval at the board
meeting held on April 30, 2008 as follows:
Board meeting
on April 30, 2008
(Approval by)
June 3,
2008
March 31,
2008
¥2,500
¥1,050,390
Common
stock
Total amont
of dividends
(Thousands
of yen)
Type of
shares
Dividends
per share
(yen)
Record
date
Effective
date
Board meeting
on April 30, 2008
(Approval by)
June 3,
2008
March 31,
2008
$25 $10,484
Common
stock
Total amont
of dividends
(Thousands
of U.S. dollars)
Type of
shares
Dividends
per share
(dollar)
Record
date
Effective
date
Deferred tax assets:
Inventory-inter-company
profit
Accrued retirement benefits
Accrued bonuses
Accrued severance
indemnities for directors
and statutory corporate
auditors
Enterprise tax
Software development costs
Accrued expenses
Foreign tax credit
Lump-sum depreciation
assets
Others
Gross deferred tax assets
Less - Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Undistributed earnings of
overseas subsidiaries
Total deferred tax liabilities
Net deferred tax assets
¥281,193
128,089
121,426
102,941
80,588
44,084
36,335
26,439
19,812
8,475
849,382
(26,439)
822,943
(288,412)
–
(288,412)
¥534,531
¥488,141
142,989
119,270
121,931
86,872
45,625
63,206
–
19,848
21,360
1,109,242
–
1,109,242
(415,522)
(56,019)
(471,541)
¥637,701
$4,872
1,427
1,190
1,217
867
455
631
–
198
214
11,071
–
11,071
(4,147)
(559)
(4,706)
$6,365
Thousands of
U.S. dollars
Thousands of yen
2007 2008 2008
Statutory effective tax rate
Non deductible expenses for tax purposes
Equalization tax
Tax credit of corporation tax
Others
Effective income tax rate
39.7%
0.7
0.2
(1,9)
(1,6)
37.1%
March 31,
2008
The reconciliation between the statutory tax rate and
the effective income tax rate in the consolidated
statements of income for the year ended March 31,
2008 is as follows:
As difference between the statutory income tax rate
and the effective income tax rate for the year ended
March 31, 2007 was less than 5% of the statutory
income tax rate, and accordingly, the reconciliation
between these two rates has been omitted.
13. Leases:
Certain information on finance lease contracts of the
Company and its subsidiaries, as a lessee, is shown below:
(1) Finance leases, which do not transfer ownership
of the assets to the lessee and are accounted for
as operating leases, are as follows:
Thousands of yen
Machinery, equipment and vehicles
Tools and furniture
Software
Total
¥10,726
20,024
46,240
¥76,990
¥8,128
14,083
34,177
¥56,388
¥2,598
5,941
12,063
¥20,602
Net balance as of
March 31, 2007
Acquisition
cost
Accumulated
depreciation
a) Acquisition costs of leased assets under finance
leases are as follows:
Thousands of yen
Machinery, equipment and vehicles
Tools and furniture
Total
¥2,705
20,024
¥22,729
¥1,284
17,096
¥18,380
¥1,421
2,928
¥4,349
Net balance as of
March 31, 2008
Acquisition
cost
Accumulated
depreciation
Thousands of U.S. dollars
Machinery, equipment and vehicles
Tools and furniture
Total
$27
200
$227
$13
170
$183
$14
29
$43
Net balance as of
March 31, 2008
Acquisition
cost
Accumulated
depreciation
b) Future lease payments under finance leases are as follows:
Due within one year
Due after more than one year
¥13,572
12,948
¥26,520
¥4,261
4,576
¥8,837
$42
46
$88
Thousands of
U.S. dollars
Thousands of yen
2007 2008 2008
Lease payments
Amount representing depreciation
Amount representing interest
¥14,914
14,640
571
¥17,683
12,232
533
$176
122
5
Thousands of
U.S. dollars
Thousands of yen
2007 2008 2008
c) Lease payments and amounts representing
depreciation and interest are as follows:
Notes to Consolidated Financial Statements
32