Suzuki 2011 Annual Report Download - page 49

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48 SUZUKI MOTOR CORPORATION
NOTE 8: Income taxes
Breakdown of deferred tax assets and deferred tax liabilities by their main occurrence causes were as follows:
NOTE 9: Research and development costs
Research and development costs included in selling, general and administrative expenses, for the years ended March 31, 2011
and 2010 were as follows:
Millions of yen
Thousands of
U.S. dollars
2011 2010 2011
Deferred tax assets
Excess-depreciation and Impairment loss ....................... ¥ 81,896 ¥ 77,678 $ 984,920
Various reserves ................................................................. 38,850 42,151 467,233
Unrealized gross profits elimination .................................. 17,917 18,434 215,489
Loss on valuation of securities .......................................... 9,413 16,901 113,214
Other ................................................................................... 85,250 83,428 1,025,266
Gross deferred tax assets total ...................................... 233,329 238,595 2,806,124
Valuation allowance ........................................................... (30,357)(23,811)(365,094)
Deferred tax assets total ................................................. ¥202,971 ¥214,784 $2,441,029
Deferred tax liabilities
Valuation difference on available-for-sale securities ........ ¥ (17,171)¥ (10,812)$ (206,518)
Variance from the complete market value method of
consolidated subsidiaries ................................................. (6,104)(6,724)(73,416)
Reserve for advanced depreciation of noncurrent assets
... (4,423)(2,812)(53,200)
Other ................................................................................... (7,955)1,199 (95,679)
Deferred tax liabilities total .............................................. ¥ (35,655)¥ (19,149)$ (428,814)
Net amounts of deferred tax assets .................................. ¥167,315 ¥195,634 $2,012,215
The differences between the statutory tax rate and the effective tax rate were summarized as follows:
2011 2010
Statutory tax rate .................................................................... 39.8% 39.8%
Valuation allowance ........................................................... 9.4% 7.9%
Tax credit ............................................................................ —(0.2%)
Difference in foreign subsidiaries tax rate ........................ (4.1%) (3.7%)
Other ................................................................................... (0.3%) (0.3%)
Effective tax rate .................................................................... 44.8% 43.5%
Millions of yen
Thousands of
U.S. dollars
2011 2010 2011
Research and development costs ........................................ ¥104,079 ¥108,784 $1,251,703
Consolidated Financial Statements