ANNUAL REPORT 2013 for the year ended March 31, 2013

※JavaScriptを有効にしてください。※
tools_title

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Credit Saison Co., Ltd. and Consolidated Subsidiaries
For the year ended March 31, 2013

13. RETIREMENT BENEFIT PLANS

The Company and some of its consolidated subsidiaries changed from cash balance plans and defined contribution plans or prepaid retirement benefit payment plans at the employee’s option to defined contribution plans or prepaid retirement benefit payment plans at the employee’s option in fiscal 2012.


RETIREMENT BENEFIT EXPENSES

Retirement benefit expenses for the years ended March 31, 2013 and 2012, are stated below:


  Millions of yen   Thousands of
U.S. dollars
2013 2012   2013
Service costs ¥   ― ¥256   $       ―
Interest costs 104  
Expected return on plan assets (19)  
Actuarial differences recognized as expenses 390  
Prior service costs recognized as expenses (304)  
Other* 801 524   8,509
Retirement benefit expenses 801 951   8,509
Loss on revision of retirement benefit plan 1,658  
Total ¥801 ¥2,609   $8,509

*Other represents payments to the defined contribution pension fund, and other items.


14. DEFERRED TAX ASSETS AND LIABILITIES

The Company and its consolidated subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted in a normal effective statutory tax rates of approximately 38.01% and 40.7% for the years ended March 31, 2013 and 2012.

(A) EFFECTIVE TAX RATE

A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying consolidated statement of income for the year ended March 31, 2012, is as follows.


  2012
Statutory tax rate 40.70%
Reconciliation:  
Expenses not deductible for tax purposes (1.23)
Nontaxable dividend income 0.71
Inhabitants taxes per capita (1.74)
Amortization of negative goodwill 1.43
Equity in net earnings of affiliated companies 14.42
Increase of valuation allowance (277.62)
Decrease in deferred tax assets due to tax rate changes (94.05)
Tax effect on investments in subsidiaries to be liquidated 510.44
Other (1.53)
Effective tax rate 191.53%

A reconciliation for the year ended March 31, 2013, is not provided because the deference between the effective income tax rate of the Companies and the statutory tax rate is less than 5% of the statutory tax rate.

(B) DEFERRED TAX ASSETS

The tax effects of significant temporary differences and loss carryforwards which resulted in deferred tax assets and liabilities at March 31, 2013 and 2012, are as follows:


  Millions of yen   Thousands of
U.S. dollars
2013 2012   2013
Deferred tax assets:        
Write-downs of inventories ¥ 24,194 ¥ 35,081   $ 256,971
Accumulated impairment losses 2,481 2,360   26,350
Accumulated depreciation expense 1,047 1,191   11,118
Asset retirement obligations 416 579   4,421
Investment securities 4,715 5,833   50,083
Allowance for doubtful accounts 18,711 20,429   198,737
Allowance for losses on interest repayments 7,108 9,478   75,492
Accrued expenses 335 380   3,560
Accrued enterprise taxes 703 752   7,472
Allowance for losses on point program 25,971 26,011   275,851
Allowance for losses on guarantees 1,538 1,528   16,332
Other allowance 935 906   9,929
Long-term unearned revenue 301 426   3,199
Tax effect on investments in subsidiaries to be liquidated 47,394 47,892   503,388
Tax loss carryforwards 46,164 24,951   490,322
Unrealized losses on available-for-sale securities 131 43   1,392
Deferred losses on derivatives under hedge accounting 836 855   8,876
Other 3,714 3,797   39,450
Subtotal 186,694 182,492   1,982,943
Less valuation allowance (89,413) (86,708)   (949,686)
Total deferred tax assets 97,281 95,784   1,033,257
Deferred tax liabilities:        
Capital gains deferred for tax purposes (185) (185)   (1,969)
Unrealized gains on available-for-sale securities (7,868) (3,283)   (83,569)
Deferred gains on derivatives under hedge accounting (7) (5)   (73)
Adjustment account of retirement debt (329) (347)   (3,497)
Adjustment account of debt (56)  
Fair value difference between carrying amount and the tax bases of
 assets and liabilities caused by the corporate split
(6,862)   (72,882)
Other (3,660) (3,267)   (38,867)
Total deferred tax liabilities (18,911) (7,143)   (200,857)
Net deferred tax assets ¥  78,370 ¥  88,641   $  832,400

  Net deferred tax assets are presented on the consolidated balance sheets as of March 31, 2013 and 2012, as follows:

  Millions of yen   Thousands of
U.S. dollars
2013 2012   2013
Current assets ¥10,121 ¥12,468   $107,497
Investment and other assets 68,445 76,174 726,980
Current liabilities―other
Long-term liabilities―other 196 1 2,077

back to pagetop