Suzuki 2006 Annual Report Download - page 41

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SUZUKI MOTOR CORPORATION
NOTE 8: Income taxes
Breakdown of deferred tax assets and deferred tax liabilities by their main occurrence causes
were as follows:
Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Deferred tax assets
Various reserves ....................................................... ¥ 37,012 ¥ 35,419 $ 315,082
Excess-depreciation ................................................. 42,663 33,769 363,188
Unrealized gross profits elimination.......................... 23,565 19,892 200,606
Others ....................................................................... 92,905 86,159 790,884
Deferred tax assets total ........................................... ¥196,146 ¥175,240 $1,669,762
Deferred tax liabilities
Net unrealized gains on security .............................. ¥ (25,196) ¥ (13,577) $ (214,492)
Variance from the complete market value method
of newly consolidated subsidiaries ......................... (7,636) (8,090) (65,005)
Reserve for fixed assets advanced depreciation ..... (2,519) (2,363) (21,450)
Others ....................................................................... (539) (329) (4,589)
Deferred tax liabilities total........................................ ¥ (35,891) ¥ (24,361) $ (305,538)
Net amounts of deferred tax assets .......................... ¥160,255 ¥150,879 $1,364,224
CONSOLIDATED FINANCIAL STATEMENTS OF 2006
41
The differences between statutory tax rate and the effective tax rate were summarized as follows:
2006 2005
Statutory tax rate ........................................................... 39.8% 39.8%
Tax credit .................................................................. (4.1%) (4.5%)
Equity in earnings of affiliates ................................... (1.3%) (1.3%)
Others ....................................................................... (1.7%) (0.5%)
Effective tax rate ........................................................... 32.7% 33.4%
Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Research and development costs ............................ ¥89,917 ¥86,856 $765,446
NOTE 9: Research and development costs
Research and development costs included in manufacturing cost and selling, general and
administrative expenses, for the years ended March 31, 2006 and 2005 were as follows: