Suzuki 2007 Annual Report Download - page 43

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SUZUKI MOTOR CORPORATION
NOTE 9: 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
2007 2006 2007
Deferred tax assets
Excess-depreciation ................................................. ¥ 56,526 ¥ 42,663 $ 478,837
Various reserves ....................................................... 44,344 37,012 375,638
Unrealized gross profits elimination.......................... 26,022 23,565 220,432
Others ....................................................................... 98,940 92,905 838,121
Deferred tax assets total ........................................... ¥225,833 ¥196,146 $1,913,029
Deferred tax liabilities
Net unrealized gains on security .............................. ¥ (23,050) ¥ (25,196) $ (195,257)
Variance from the complete market value method
of newly consolidated subsidiaries ......................... (7,984) (7,636) (67,640)
Reserve for fixed assets advanced depreciation ..... (2,499) (2,519) (21,171)
Others ....................................................................... (960) (539) (8,138)
Deferred tax liabilities total........................................ ¥ (34,495) ¥ (35,891) $ (292,208)
Net amounts of deferred tax assets .......................... ¥191,337 ¥160,255 $1,620,821
CONSOLIDATED FINANCIAL STATEMENTS OF 2007
43
The differences between the statutory tax rate and the effective tax rate were summarized as follows.
2007 2006
Statutory tax rate ........................................................... 39.8% 39.8%
Tax credit .................................................................. (5.3%) (4.1%)
Equity in earnings of affiliates ................................... (0.6%) (1.3%)
Others ....................................................................... (1.9%) (1.7%)
Effective tax rate ........................................................... 32.0% 32.7%
Thousands of
Millions of yen U.S. dollars
2007 2006 2007
Research and development costs ............................ ¥92,141 ¥89,917 $780,531
NOTE 10: Research and development costs
Research and development costs included in selling, general and administrative expenses, for the years
ended March 31, 2007 and 2006 were as follows: