Mitsubishi 2006 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2006 Mitsubishi 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 92

  • 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

79
MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
The effective tax rates reflected in the accompanying consolidated statements of operations for the year ended
March 31, 2005 differ from the statutory tax rate for the following reasons:
(%)
2006 2005
Statutory income tax rate for MMC Due to loss before income 40.3
Increase in valuation allowance, effect of use of taxes and minority interest,
loss carry forwards and similar items the information is omitted (42.4)
Income from affiliates accounted for by the equity method from the notes. 1.1
Amortization of consolidation goodwill (0.1)
Increase by tax effect of overseas subsidiaries and similar 1.1
Expenses not deductible for income taxes purposes (0.1)
Income on sales of affiliates 0.1
Other 4.3
Income taxes as a percentage of loss before income taxes
and minority interest 4.3
The significant components of deferred tax assets and liabilities as of March 31, 2006 and 2005 are as follows:
In thousands of
In millions of yen U.S. dollars
2006 2005 2006
Deferred tax assets:
Net operating loss carry forward ¥ 183,201 ¥ 308,079 $ 1,559,557
Accrued retirement benefits 45,561 41,411 387,858
Allowance for doubtful accounts 25,264 31,270 215,069
Allowance for product warranties 18,583 13,339 158,198
Accounts payable — warranties 14,359 19,468 122,235
Impairment losses 42,799 31,054 364,341
Others 77,861 85,931 662,820
Less valuation allowance (351,425) (483,085) (2,991,617)
Total deferred tax assets 56,205 47,468 478,464
Deferred tax liabilities:
Reserves under the Special Taxation Measures Law (436) (1,486) (3,716)
Unrealized holding gain on securities (6,022) (6,145) (51,270)
Fair value adjustments relating to land in consolidated subsidiaries (6,149) (5,921) (52,353)
Accelerated depreciation in overseas consolidated subsidiaries (41,627) (30,448) (354,363)
Other (11,685) (12,393) (99,475)
Total deferred tax liabilities (65,921) (56,396) (561,180)
Net deferred tax assets ¥ (9,716) ¥ (8,927) $ (82,716)
Deferred tax assets and liabilities at March 31, 2006 and 2005 are included in the accompanying consolidated
balance sheets as follows:
In thousands of
In millions of yen U.S. dollars
2006 2005 2006
Current assets ¥ 1,206 ¥ 1,799 $ 10,270
Investments and other assets 7,413 6,730 63,113
Current liabilities (86) (100) (733)
Non-current liabilities (18,251) (17,357) (155,367)
Net deferred tax assets ¥ (9,716) ¥ (8,927) $ (82,716)
Notes to Consolidated Financial Statements