Yamaha 2011 Annual Report Download - page 85

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83
Annual Report 2011
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, 2011 and 2010. Income taxes of
the overseas consolidated subsidiaries are, in general, based on the tax rates applicable in their respective countries of incorporation.
The major components of deferred tax assets and liabilities as of March 31, 2011 and 2010 are summarized as follows:
Millions of yen
Thousands of
U.S. dollars (Note 3)
2011 2010 2011
Deferred tax assets:
Write-downs of inventories ¥ 2,113 ¥ 2,240 $ 25,412
Unrealized gain on inventories and property, plant and equipment 402 459 4,835
Allowance for doubtful accounts 615 611 7,396
Depreciation 9,161 9,157 110,174
Loss on impairment of fixed assets 11,666 11,738 140,301
Loss on valuation of investment securities 3,812 4,558 45,845
Accrued employees’ bonuses 2,579 2,539 31,016
Provision for product warranties 856 734 10,295
Provision for retirement benefits 14,613 13,048 175,743
Tax loss carryforwards 13,888 13,372 167,023
Other 4,503 5,544 54,155
Gross deferred tax assets 64,213 64,006 772,255
Valuation allowance (28,476) (29,950) (342,465)
Total deferred tax assets ¥35,737 ¥34,056 $429,790
Deferred tax liabilities:
Reserve for deferred gain on property, plant and equipment ¥ (1,357) ¥ (1,447) $ (16,320)
Reserve for special depreciation (43) (84) (517)
Valuation difference on available-for-sale securities (22,128) (22,011) (266,121)
Other (361) (1,024) (4,342)
Total deferred tax liabilities (23,890) (24,568) (287,312)
Net deferred tax assets ¥11,846 ¥ 9,488 $142,465
A reconciliation between the statutory tax rate and the effective tax rate for the years ended March 31, 2011 and 2010 are as follows:
2011 2010*
Statutory tax rate 39.5% —
Adjustments:
Differences in tax rates of overseas consolidated subsidiaries (19.8) —
Non-temporary differences not deductible for tax purposes (1.7) —
Per capita inhabitants’ taxes 2.5 —
Allowances for changes in valuation (2.0) —
Other 1.5 —
Effective tax rate after adjustments for tax-effect accounting 20.0% —
* A reconciliation between the statutory tax rate and the effective tax rate for the year ended March 31, 2010 has been omitted because the Company recorded loss before taxes
and minority interests for the year.
24. Income Taxes
Since the amount for the year ended March 31, 2011 is not material, this information has been omitted.
25. Asset Retirement Obligations