Toyota 2005 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2005 Toyota annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

98 >NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Significant components of deferred tax assets and liabilities are as follows:
U.S. dollars
Yen in millions in millions
March 31, March 31,
2004 2005 2005
Deferred tax assets
Accrued pension and severance costs ........................................................................ ¥ 204,002 ¥172,811 $ 1,609
Warranty reserves and accrued expenses................................................................... 162,783 160,565 1,495
Other accrued employees’ compensation.................................................................. 115,416 111,555 1,039
Operating loss carryforwards for tax purposes.......................................................... 84,829 50,566 471
Inventory adjustments ................................................................................................ 43,392 53,093 494
Property, plant and equipment and other assets....................................................... 109,623 131,467 1,224
Other............................................................................................................................ 267,745 294,828 2,746
Gross deferred tax assets......................................................................................... 987,790 974,885 9,078
Less—Valuation allowance ........................................................................................ (104,083) (102,737) (957)
Total deferred tax assets ......................................................................................... 883,707 872,148 8,121
Deferred tax liabilities
Unrealized gains on securities .................................................................................... (273,591) (255,028) (2,375)
Undistributed earnings of affiliates accounted for by the equity method ............... (360,310) (365,981) (3,408)
Basis difference of acquired assets.............................................................................. (33,670) (33,313) (310)
Lease transactions........................................................................................................ (287,410) (321,055) (2,990)
Gain on securities contribution to employee retirement benefit trust .................... (66,523) (66,523) (619)
Other............................................................................................................................ (43,526) (65,681) (611)
Gross deferred tax liabilities................................................................................... (1,065,030) (1,107,581) (10,313)
Net deferred tax liability......................................................................................... ¥ (181,323) ¥ (235,433) $ (2,192)
The valuation allowance mainly relates to deferred tax
assets of the consolidated subsidiaries with operating loss
carryforwards for tax purposes that are not expected to be
realized. The net changes in the total valuation allowance
for deferred tax assets for the years ended March 31, 2003,
2004 and 2005 consist of the following:
U.S. dollars
Yen in millions in millions
For the year
For the years ended March 31, ended March 31,
2003 2004 2005 2005
Valuation allowance at beginning of year ....................................... ¥103,211 ¥119,620 ¥104,083 $ 969
Additions ...................................................................................... 29,530 17,738 21,249 198
Deductions.................................................................................... (12,989) (31,934) (22,829) (213)
Other............................................................................................. (132) (1,341) 234 3
Valuation allowance at end of year.................................................. ¥119,620 ¥104,083 ¥102,737 $ 957
The other amount includes the impact of consolidation
and deconsolidation of certain entities due to changes in
ownership interest, changes in the statutory tax rates and
currency translation adjustments during the years ended
March 31, 2003, 2004 and 2005.
During the years ended March 31, 2004 and 2005,
certain subsidiaries reported favorable results resulting in
reduction or reversal of certain previously provided
valuation allowances.