Yamaha 2008 Annual Report Download - page 77

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75Annual Report 2008
13. INCOME TAXES
Income taxes applicable to the Company and its domestic consolidated subsidiaries comprised corporation tax, inhabitants’
taxes and enterprise tax which, in the aggregate, resulted in a statutory tax rate of approximately 39.5% for the years ended
March 31, 2008 and 2007. Income taxes of the overseas consolidated subsidiaries are, in general, based on the tax rates appli-
cable in their respective countries of incorporation.
The major components of deferred tax assets and liabilities as of March 31, 2008 and 2007 are summarized as follows:
Millions of Yen
Thousands of
U.S. Dollars
(Note 3)
2008 2007 2008
Deferred tax assets:
Write-downs of inventories ¥ 1,868 ¥ 2,096 $ 18,645
Unrealized gain on inventories and property, plant and equipment 4,007 3,896 39,994
Allowance for doubtful accounts 1,495 899 14,922
Depreciation 9,492 11,722 94,740
Loss on impairment of fixed assets 8,479 17,908 84,629
Unrealized loss on investment securities 3,113 2,056 31,071
Accrued employees’ bonuses 3,655 3,732 36,481
Product warranty reserve 1,186 1,349 11,838
Accrued employees’ retirement benefits 9,571 10,130 95,528
Tax loss carryforwards 1,540 4,162 15,371
Accumulated losses of subsidiaries —3,471 —
Other 8,779 10,255 87,624
Gross deferred tax assets 53,191 71,682 530,901
Valuation allowance (12,858) (26,121) (128,336)
Total deferred tax assets 40,332 45,560 402,555
Deferred tax liabilities:
Reserve for deferred gain on property, plant and equipment (1,640) (1,853) (16,369)
Reserve for special depreciation (217) (321) (2,166)
Net unrealized holding gain on other securities (32,031) (8,136) (319,703)
Other (742) (997) (7,406)
Total deferred tax liabilities (34,631) (11,308) (345,653)
Net deferred tax assets ¥ 5,701 ¥ 34,252 $ 56,902