Reconciliation of effective tax rate (Note) On 1 April 2014, the Company completed a five-for-one share split based on the resolution of the board of directors meeting held on 28 February 2014. Basic earnings  per share and diluted earnings per share were calculated under the assumption that the share split took effect at the beginning of the previous fiscal year. The basis of calculation of basic earnings per share and diluted earnings per share is as follows: The Company is subject mainly to corporate tax, inhabitant tax, and enterprise tax on its income and the effective statutory tax rate  calculated based on those taxes for the fiscal years ended 31 March 2013 and 2014 was 37.7%. Foreign subsidiaries are subject to  income taxes on their income in their respective countries of domicile. 13. earnings per share (Millions of yen as otherwise indicated) 2013 2014 Basis of calculating basic earnings per share Profit attributable to owners of the parent ¥ 92,464 ¥ 90,874 Profit not attributable to ordinary shareholders of the parent — — Profit used to calculate basic earnings per share 92,464 90,874 Weighted average number of shares during the year (Thousands of shares) 2,296,353 2,246,508 Basis of calculating diluted earnings per share Profit used to calculate basic earnings per share ¥ 92,464 ¥ 90,874 Adjustment — — Profit used to calculate diluted earnings per share 92,464 90,874 Weighted average number of shares during the year (Thousands of shares) 2,296,353 2,246,508 Subscription rights to shares (Thousands of shares) 3,194 3,429 Weighted average number of diluted ordinary shares during the year (Thousands of shares) 2,299,547 2,249,938 Earnings per share (attributable to owners of the parent): Basic (yen) ¥ 40.27 ¥ 40.45 Diluted (yen) 40.21 40.39 (%) 2013 2014 Effective statutory tax rate 37.7% 37.7% Tax credit for research and development expenses (2.2) (4.5) Non-deductible expenses 3.5 3.7 Difference in tax rates applied to foreign subsidiaries (8.4) (12.2) Undistributed earnings of foreign subsidiaries 0.5 1.6 Effect of change in tax rate in Japan — 2.6 Other (3.7) (3.3) Actual tax rate 27.3% 25.5% Astellas Pharma Inc.  _ Annual Report 2014 120