Significant components of the deferred tax assets and liabilities at March 31, 2003 and 2002 were as follows: Millions Millions Thousands of of yen of yen U.S. dollars 2003 2002 2003 Deferred tax assets: Deficit carry forwards ¥ 4,733 ¥ 4,190 $ 39,376 Unrealized gain on sales of inventories 11,280 9,078 93,844 Accrued pension and severance liabilities 20,409 22,428 169,792 Accrued expenses 5,047 3,858 41,988 Accrued employees bonuses 6,005 5,008 49,958 Warranty claims 7,452 7,843 61,997 Loss on valuation of investment securities 3,964 4,067 32,978 Unrealized gain on sales of property, plant and equipment 6,491 7,417 54,002 Loss on valuation of property, plant and equipment 3,400 — 28,286 Other 25,303 22,693 210,508 Total deferred tax assets 94,084 86,582 782,729 Valuation allowance (8,967) (10,378) (74,601) Total deferred tax assets, net of valuation allowance 85,117 76,204 708,128 Deferred tax liabilities: Depreciation and amortization (15,931) (12,442) (132,538) Net unrealized holding gains on investment securities (2,332) (3,619) (19,401) Revaluation reserve for land (442) (457) (3,677) Other (721) (146) (5,998) Total deferred tax liabilities (19,426) (16,664) (161,614) Net deferred tax assets ¥65,691 ¥59,540 $546,514 46 FUJI HEAVY INDUSTRIES LTD.