Honda 2007 Annual Report Download - page 98
Download and view the complete annual report
Please find page 98 of the 2007 Honda 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.-
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
 |
 |
96
U.S. dollars
Yen (millions)
(millions) (note 2)
2006 2007 2007
Deferred tax liabilities:
Inventories (11,018) (13,650) (116)
Prepaid pension expenses (29,019) (34,422) (292)
Property, plant and equipment,
excluding lease transactions (67,263) (59,680) (506)
Lease transactions (357,578) (405,516) (3,435)
Undistributed earnings of subsidiaries
and affiliates (81,675) (106,273) (900)
Net unrealized gains on marketable securities (44,580) (41,039) (347)
Other (52,059) (27,262) (230)
Total gross deferred tax liabilities (643,192) (687,842) (5,826)
Net deferred tax (liability) asset ¥(150,749) ¥0(31,120) $0,(263)
Deferred income tax assets and liabilities at March 31, 2006 and 2007 are reflected in the consolidated balance sheets under
the following captions:
U.S. dollars
Yen (millions)
(millions) (note 2)
2006* 2007 2007
Current assets—Deferred income taxes ¥(221,294 ¥(215,172 $(1,823
Other assets 37,686 71,583 606
Other current liabilities (3,002) (1,827) (15)
Other liabilities (406,727) (316,048) (2,677)
Net deferred tax (liability) asset ¥(150,749) ¥0(31,120) $0,(263)
* See note 3.
In assessing the realizability of deferred tax assets, man-
agement considers whether it is more likely than not that
some portion or all of the deferred tax assets will not be real-
ized. The ultimate realization of deferred tax assets is depen-
dent upon the generation of future taxable income over the
periods in which those temporary differences become
deductible and operating loss carryforwards utilized. Man-
agement considered the scheduled reversal of deferred tax
liabilities, projected future taxable income and tax planning
strategies in making this assessment. Based upon the level
of historical taxable income and projections for future taxable
income over the periods which the deferred tax assets are
deductible, management believes it is more likely than not
that Honda will realize the benefits of these deductible differ-
ences and operating loss carryforwards, net of the existing
valuation allowances at March 31, 2006 and 2007.
The net change in the total valuation allowance for the
years ended March 31, 2005 was decrease of ¥11,989
million, for the year ended March 31, 2006 was increase of
¥10,502 million, and for the year ended March 31, 2007 was
decrease of ¥34,792 million ($295 million). The valuation
allowance primarily relates to deferred tax assets associated
with net operating loss carryforwards incurred by certain
foreign subsidiaries.