Toyota 2006 Annual Report Download - page 108

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15. Other payables:
Other payables are mainly related to purchases of property, plant and equipment and non-manufacturing purchases.
16. Income taxes:
The components of income before income taxes comprise the following:
U.S. dollars
Yen in millions in millions
For the year ended
For the years ended March 31, March 31,
2004 2005 2006 2006
Income before income taxes:
Parent company and domestic subsidiaries ........................................ ¥1,104,719 ¥ 946,626 ¥1,159,116 $ 9,867
Foreign subsidiaries ........................................................................... 661,074 808,011 928,244 7,902
¥1,765,793 ¥1,754,637 ¥2,087,360 $17,769
The provision for income taxes consists of the following:
U.S. dollars
Yen in millions in millions
For the year ended
For the years ended March 31, March 31,
2004 2005 2006 2006
Current income tax expense:
Parent company and domestic subsidiaries ........................................ ¥404,672 ¥376,845 ¥451,593 $3,844
Foreign subsidiaries ........................................................................... 155,804 196,354 310,298 2,642
Total current ................................................................................. 560,476 573,199 761,891 6,486
Deferred income tax expense (benefit):
Parent company and domestic subsidiaries ........................................ 77,970 34,820 76,503 651
Foreign subsidiaries ........................................................................... 42,858 49,891 (43,241) (368)
Total deferred ............................................................................... 120,828 84,711 33,262 283
Total provision .............................................................................. ¥681,304 ¥657,910 ¥795,153 $6,769
14. Product warranties:
Toyota provides product warranties for certain defects mainly
resulting from manufacturing based on warranty contracts
with its customers at the time of sale of products. Toyota
accrues estimated warranty costs to be incurred in the future
in accordance with the warranty contracts. The net change in
the accrual for the product warranties for the years ended
March 31, 2004, 2005 and 2006, which is included in
“Accrued expenses” in the accompanying consolidated bal-
ance sheets, consist of the following:
The other amount primarily includes the impact of currency
translation adjustments and the impact of consolidation and
deconsolidation of certain entities due to changes in owner-
ship interest.
In addition to product warranties above, Toyota initiates
recall actions or voluntary service campaigns to repair or to
replace parts which might be expected to fail from products
safety perspectives or customer satisfaction standpoints.
Toyota accrues costs of these activities, which are not included
in the reconciliation above, based on management’s esti-
mates.
U.S. dollars
Yen in millions in millions
For the year ended
For the years ended March 31, March 31,
2004 2005 2006 2006
Liabilities for product warranties at beginning of year ............................ ¥ 262,288 ¥ 291,747 ¥ 330,552 $ 2,814
Payments made during year................................................................... (193,979) (214,876) (252,453) (2,149)
Provision for warranties ......................................................................... 230,531 255,610 298,719 2,543
Changes relating to pre-existing warranties............................................ (1,910) (3,654) (9,457) (81)
Other .................................................................................................... (5,183) 1,725 10,518 90
Liabilities for product warranties at end of year...................................... ¥ 291,747 ¥ 330,552 ¥ 377,879 $ 3,217