Income taxes (Tables)

12 Months Ended

Mar. 31, 2015

Income taxes

Components of income tax expense

	Millions of yen
	Year ended March 31
	2013			2014		2015
Current:
Domestic	¥	71,918		¥	21,558	¥	80,760
Foreign		6,164			6,546		13,531
Subtotal		78,082			28,104		94,291
Deferred:
Domestic		55,257			109,037		23,309
Foreign		(1,300	)		8,024		3,180
Subtotal		53,957			117,061		26,489
Total	¥	132,039		¥	145,165	¥	120,780

Effective income tax rate reflected in consolidated statements of income

	Year ended March 31
	2013			2014			2015
Nomura’s effective statutory tax rate		38.0	%		38.0	%		36.0	%
Impact of:
Changes in deferred tax valuation allowance		(0.7	)		(9.8	)		5.1
Additional taxable revenues		1.5			0.4			0.3
Non-deductible expenses		12.9			7.7			5.9
Non-taxable revenue		(9.3	)		(8.0	)		(4.7	)
Dividends from foreign subsidiaries		0.2			—			0.0
Tax effect of undistributed earnings of foreign subsidiaries		0.2			3.5			0.0
Different tax rate applicable to income (loss) of foreign subsidiaries		10.0			6.3			(1.4	)
Effect of changes in domestic tax laws		0.9			0.6			(1.4	)
Expiration of loss carryforwards		1.3			0.7			0.0
Tax benefit recognized on the devaluation of investment in subsidiaries and affiliates		—			1.4			—
Other		0.5			(0.7	)		(5.0	)
Effective tax rate		55.5	%		40.1	%		34.8	%

Details of deferred tax assets and liabilities

	Millions of yen
	March 31
	2014			2015
Deferred tax assets
Depreciation, amortization and valuation of fixed assets	¥	12,604		¥	14,692
Investments in subsidiaries and affiliates		54,678			33,553
Valuation of financial instruments		46,321			56,566
Accrued pension and severance costs		7,850			10,335
Other accrued expenses and provisions		102,922			123,567
Operating losses		437,899			466,531
Other		3,991			4,356
Gross deferred tax assets		666,265			709,600
Less—Valuation allowance		(490,603	)		(565,103	)
Total deferred tax assets		175,662			144,497
Deferred tax liabilities
Investments in subsidiaries and affiliates		107,020			109,087
Valuation of financial instruments		54,524			56,808
Undistributed earnings of foreign subsidiaries		736			735
Valuation of fixed assets		21,204			20,644
Other		4,899			8,670
Total deferred tax liabilities		188,383			195,944
Net deferred tax assets (liabilities)	¥	(12,721	)	¥	(51,447	)

Changes in valuation allowance for deferred tax assets

	Millions of yen
	Year ended March 31
	2013			2014			2015
Balance at beginning of year	¥	490,986		¥	522,220		¥	490,603
Net change during the year		31,234	(1)		(31,617	)(2)		74,500	(3)
Balance at end of year		522,220			490,603			565,103

(1) Primarily includes ¥52,862 million of additional full valuation allowances established by certain foreign subsidiaries against additional operating loss carryforwards generated during the period as a result of additional taxable losses being incurred by such subsidiaries, ¥1,275 million of additional valuation allowances established against deferred tax assets of certain Japanese subsidiaries and the Company, offset by a reduction of ¥22,903 million of valuation allowances relating to the deconsolidation of NREH. In total, ¥31,234 million of allowances increased for the year ended March 31, 2013.

(2) Primarily includes ¥29,134 million of additional full valuation allowances established by certain foreign subsidiaries against additional operating loss carryforwards generated during the period as a result of additional taxable losses being incurred by such subsidiaries, offset by a reduction of ¥47,263 million of valuation allowances related to the liquidation of certain foreign subsidiaries and a reduction of ¥ 13,488 million of valuation allowances established by the Company and domestic subsidiaries because of changes in the expected realization of deferred tax assets other than those related to operating loss carryforwards. In total, ¥31,617 million of allowances decreased for the year ended March 31, 2014.

(3) Primarily includes ¥85,403 million of additional full valuation allowances established by certain foreign subsidiaries against additional operating loss carryforwards generated during the period as a result of additional taxable losses being incurred by such subsidiaries, offset by a reduction of ¥2,921 million of valuation allowances of certain foreign subsidiaries and a reduction of ¥7,982 million related to Japanese subsidiaries and the Company because of decrease in valuation allowances related to operating loss carryforwards due to the effect of changes in domestic tax laws. In total, ¥74,500 million of allowances increased for the year ended March 31, 2015.

Summarizes major jurisdictions subject to examination

Jurisdiction	Year
Japan		2010	(1)
United Kingdom		2014
United States		2012

(1) The earliest year in which Nomura remains subject to examination for transfer pricing issues is 2009.