Annual Report 2004 [PDF/1.1MB]

The retirement benefit costs of the domestic consolidated subsidiaries calculated by simplified methods have been included in
service cost in the above table.
The assumptions used in accounting for the retirement benefit plans for the years ended March 31, 2004 and 2003 were as
follows:
Discount rate 2.4%
Expected rate of return on plan assets 5.3%
7. INCOME TAXES
Income taxes applicable to the Company and its domestic subsidiaries comprise corporation tax, inhabitants' taxes and
enterprise tax which, in the aggregate, resulted in an aggregate statutory tax rate of approximately 42.0% for the years
ended March 31, 2004 and 2003.
The significant components of deferred tax assets and liabilities at March 31, 2004 and 2003 were as follows:
Millions of yen
2004 2003
Thousands of
U.S dollars
2004
Deferred tax assets:
Tax loss carryforwards
¥ 11,753
¥ 7,665
$ 111,203
Loss on devaluation of inventories
5,918
4,071
55,994
Allowance for doubtful receivables
2,154
2,151
20,380
Loss on devaluation of golf club memberships
1,071
10,133
Net unrealized holding loss on securities
1,674
Unrealized intercompany profit on non-current assets
1,429
1,824
13,521
Accrued retirement benefits
1,684
1,549
15,933
Other
3,871
5,934
36,626
Total
27,880
24,868
263,790
Less valuation allowance
(7,612)
(10,061)
(72,022)
Deferred tax assets
¥ 20,268
¥ 14,807
$ 191,768
Deferred tax liabilities:
Unrealized holding gain on securities
2,051
71
19,406
Other
119
95
1,126
Total
2,170
166
20,532
Net deferred tax assets
¥ 18,098
¥ 14,641
$ 171,236
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