Toyota 2015 Annual Report Download - page 177

TOYOTA MOTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Significant components of deferred tax assets and liabilities are as follows:
Yen in millions
March 31,
2015 2016
Deferred tax assets
Accrued pension and severance costs .................................... 184,215 283,713
Accrued expenses and liabilities for quality assurances ...................... 573,246 586,628
Other accrued employees’ compensation ................................. 126,366 116,420
Operating loss carryforwards for tax purposes ............................. 259,896 201,957
Tax credit carryforwards ............................................. 42,059 22,687
Property, plant and equipment and other assets ............................ 220,226 241,454
Other ............................................................. 288,012 321,022
Gross deferred tax assets ......................................... 1,694,020 1,773,881
Less - Valuation allowance ............................................ (169,811) (151,665)
Total deferred tax assets .......................................... 1,524,209 1,622,216
Deferred tax liabilities
Unrealized gains on securities, net ...................................... (810,192) (692,972)
Undistributed earnings of foreign subsidiaries ............................. (27,692) (30,112)
Undistributed earnings of affiliated companies accounted for by the equity
method ......................................................... (686,692) (656,448)
Basis difference of acquired assets ...................................... (31,946) (31,171)
Lease transactions ................................................... (1,162,540) (1,073,518)
Other ............................................................. (21,597) (93,206)
Gross deferred tax liabilities ....................................... (2,740,659) (2,577,427)
Net deferred tax liability .......................................... (1,216,450) (955,211)
The deferred tax assets and liabilities above that comprise the net deferred tax liability are included in the
consolidated balance sheets as follows:
Yen in millions
March 31,
2015 2016
Deferred tax assets
Deferred income taxes (Current assets) .................................. 978,179 967,607
Investments and other assets - Other .................................... 132,548 151,431
Deferred tax liabilities
Other current liabilities ............................................... (28,708) (28,160)
Deferred income taxes (Long-term liabilities) ............................. (2,298,469) (2,046,089)
Net deferred tax liability .......................................... (1,216,450) (955,211)
The factors used to assess the likelihood of realization of the deferred tax assets are the future reversal of
existing taxable temporary differences, the future taxable income and available tax planning strategies that are
prudent and feasible. All available evidence, both positive and negative, is considered to determine whether,
based on the weight of that evidence, a valuation allowance is needed for deferred tax assets which are not
more-likely-than-not to be realized.
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