Toyota 2006 Annual Report Download - page 110

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Because management intends to reinvest undistributed
earnings of foreign subsidiaries to the extent not expected to
be remitted in the foreseeable future, management has made
no provision for income taxes on those undistributed earnings
aggregating ¥2,094,625 million ($17,831 million) as of March
31, 2006. Toyota estimates an additional tax provision of
¥193,672 million ($1,649 million) would be required if the full
amount of those undistributed earnings became subject to
Japanese taxes.
Operating loss carryforwards for tax purposes attributed to
consolidated subsidiaries as of March 31, 2006 were approxi-
mately ¥121,764 million ($1,037 million) and are available as
an offset against future taxable income of such subsidiaries.
The majority of these carryforwards expire in years 2007 to
2020.
17. Shareholders’ equity:
Changes in the number of shares of common stock issued have resulted from the following:
For the years ended March 31,
2004 2005 2006
Common stock issued
Balance at beginning of year ....................................................................................... 3,609,997,492 3,609,997,492 3,609,997,492
Issuance during the year.............................................................................................. — — —
Purchase and retirement ............................................................................................. — — —
Balance at end of year............................................................................................. 3,609,997,492 3,609,997,492 3,609,997,492
The deferred tax assets and liabilities that comprise the net deferred tax liability are included in the consolidated balance sheets
as follows:
U.S.dollars
Yen in millions in millions
March 31, March 31,
2005 2006 2006
Deferred tax assets
Deferred income taxes (Current assets) ...................................................................... ¥ 475,764 ¥520,494 $ 4,431
Investments and other assets–other........................................................................... 108,513 106,715 908
Deferred tax liabilities
Other current liabilities.............................................................................................. (8,040) (7,120) (60)
Deferred income taxes (Long-term liabilities).............................................................. (811,670) (1,092,995) (9,305)
Net deferred tax liability ........................................................................................ ¥(235,433) ¥(472,906) $(4,026)
The valuation allowance mainly relates to deferred tax assets
of the consolidated subsidiaries with operating loss carryfor-
wards 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, 2004, 2005 and
2006 consist of the following:
U.S. dollars
Yen in millions in millions
For the year ended
For the years ended March 31, March 31,
2004 2005 2006 2006
Valuation allowance at beginning of year .............................................. ¥119,620 ¥104,083 ¥102,737 $875
Additions .......................................................................................... 17,738 21,249 10,285 88
Deductions........................................................................................ (31,934) (22,829) (19,084) (163)
Other ................................................................................................ (1,341) 234 (309) (3)
Valuation allowance at end of year ........................................................ ¥104,083 ¥102,737 ¥93,629 $797
The other amount includes the impact of consolidation and
deconsolidation of certain entities due to changes in owner-
ship interest, changes in the statutory tax rates and currency
translation adjustments during the years ended March 31,
2004, 2005 and 2006.