Sony 2003 Annual Report Download - page 217

Consolidated Financial Information 2003
- 131 -
Reconciliation of the differences between the statutory tax rate and the effective income tax rate is as
follows:
Year ended March 31
2001 2002 2003
Statutory tax rate 42.0% 42.0% 42.0%
Increase (reduction) in taxes resulting from:
Income tax credits (1.7) (2.1) (1.9)
Change in valuation allowances 14.2 55.5 5.5
Decrease in deferred tax liabilities on
undistributed earnings of foreign subsidiaries (6.5) (21.6) (14.8)
Reversal of foreign tax reserves - (6.5) -
Other (4.5) 3.0 1.8
Effective income tax rate 43.5% 70.3% 32.6%
The significant components of deferred tax assets and liabilities are as follows:
Yen in millions
Dollars in
millions
March 31 March 31,
2002 2003 2003
Deferred tax assets:
Accrued pension and severance costs ¥125,745 ¥213,284 $1,777
Operating loss carryforwards for tax purposes 155,979 130,473 1,087
Warranty reserve and accrued expenses 59,979 64,094 534
Future insurance policy benefits 28,552 34,734 289
Inventory – intercompany profits and write-down 41,294 34,423 287
Film costs 41,917 33,907 283
Tax credit carryforwards 16,004 33,762 281
Accrued bonus 31,060 32,694 272
Reserve for doubtful accounts 16,401 20,256 169
Depreciations 19,067 15,724 131
Other 134,373 119,671 998
Gross deferred tax assets 670,371 733,022 6,108
Less: Valuation allowance (252,208) (116,068) (967)
Total deferred tax assets 418,163 616,954 5,141
Deferred tax liabilities:
Insurance acquisition costs (111,570) (118,689) (989)
Undistributed earnings of foreign subsidiaries (72,713) (46,449) (387)
Intangible assets acquired through exchange
offerings (40,580) (38,882) (324)
Gain on securities contribution to employee
retirement benefit trust (29,313) (17,438) (145)
Unrealized gains on securities
Other
(21,487)
(55,169)
(11,672)
(81,374)
(97)
(679)
Gross deferred tax liabilities (330,832) (314,504) (2,621)
Net deferred tax assets ¥87,331 ¥302,450 $2,520