Yamaha 2003 Annual Report Download - page 37

ANNUAL REPORT 2003 35
8. STRUCTURAL REFORM EXPENSES
Structural reform expenses for the year ended March 31, 2003 consisted of losses on disposition of inventories of
¥734 million ($6,106 million) resulting from the discontinuation of the CD-R/RW drive business and of ¥1,537 mil-
lion ($12,787 million) from the termination of operations at the Sunza Villa and Kiroro golf course.
9. OTHER INCOME (EXPENSES)
The components of “Other, net” in “Other income (expenses)” for the years ended March 31, 2003 and 2002 were
as follows:
Thousands of
Millions of Yen U.S. Dollars
2003 2002 2003
Loss on sale of shares of common stock of affiliates ................................................................... ¥(222) ¥ — $(1,847)
Loss on revaluation of capital invested in subsidiaries ............................................................... (242) — (2,013)
Loss on foreign exchange............................................................................................................ — (352) —
Additional retirement benefits paid............................................................................................ —(1,061) —
Other, net ................................................................................................................................... 198 1,079 1,647
................................................................................................................................................... ¥(266) ¥ (334) $(2,213)
10. INCOME TAXES
Income taxes applicable to the Company and its domestic consolidated subsidiaries comprised corporation tax, inhab-
itants’ taxes and enterprise tax which, in the aggregate, resulted in a statutory tax rate of approximately 39.5% and
40.9% for the years ended March 31, 2003 and 2002, respectively. The effect of this change in the tax rate was to
decrease deferred tax assets, net of deferred tax liabilities, by ¥792 million at March 31, 2003 and to increase income
taxes by ¥802 million over the amount which would have been recorded if the tax rate of the previous year had been
applied in the current year. The increase in income taxes referred to above was computed by multiplying the total
balance of temporary differences at March 31, 2003 by the difference between the new and the former tax rates.
Income taxes of the foreign consolidated subsidiaries are, in general, based on the tax rates applicable in their coun-
tries of incorporation.
The major components of deferred tax assets and liabilities as of March 31, 2003 and 2002 are summarized
as follows:
Thousands of
Millions of Yen U.S. Dollars
2003 2002 2003
Deferred tax assets:
Write-downs of inventories................................................................................................ ¥ 2,357¥1,880 $ 19,609
Allowance for doubtful receivables ................................................................................... 1,244 1,188 10,349
Depreciation...................................................................................................................... 9,215 9,336 76,664
Unrealized loss on investment securities........................................................................... 7,289 7,447 60,641
Accrued employees’ bonuses ............................................................................................ 3,609 2,629 30,025
Warranty reserve............................................................................................................... 827 971 6,880
Retirement benefits and long-term accounts payable—other............................................ 18,686 20,569 155,458
Tax loss carried forward .................................................................................................... 21,387 19,667 177,928
Other................................................................................................................................. 8,465 8,808 70,424
.............................................................................................................................................. 73,084 72,499 608,020
Valuation allowance.......................................................................................................... (35,499) (33,682) (295,333)
Total deferred tax assets........................................................................................................ 37,584 38,816 312,679
Deferred tax liabilities:
Reserve for deferred gain on properties............................................................................. (1,460) (1,693) (12,146)
Reserve for asset replacement........................................................................................... (283) — (2,354)
Reserve for special depreciation ....................................................................................... (85) — (707)
Unrealized gain on securities ............................................................................................ (299) (589) (2,488)
Other................................................................................................................................. (663) (1,199) (5,516)
Total deferred tax liabilities ..................................................................................................(2,790) (3,481) (23,211)
Net deferred tax assets .......................................................................................................... ¥34,793 ¥35,335 $289,459