Toyota 2007 Annual Report Download - page 115

ANNUAL REPORT 2007 113
U.S. dollars
Yen in millions in millions
For the year
ended
For the years ended March 31, March 31,
2005 2006 2007 2007
Valuation allowance at beginning of year .......................................... ¥104,083 ¥102,737 ¥ 93,629 $ 793
Additions........................................................................................... 21,249 10,285 20,785 176
Deductions........................................................................................ (22,829) (19,084) (19,015) (161)
Other ................................................................................................. 234 (309) (174) (1)
Valuation allowance at end of year..................................................... ¥102,737 ¥ 93,629 ¥ 95,225 $ 807
The valuation allowance mainly relates to deferred tax assets
of the consolidated subsidiaries with operating loss carryfor-
wards for tax purposes that are not expected to be realized.
The net changes in the total valuation allowance for deferred
tax assets for the years ended March 31, 2005, 2006 and 2007
consist of the following:
The other amount includes the impact of consolidation and deconsolidation of certain entities due to changes in ownership inter-
est during the years ended March 31, 2005, 2006 and 2007.
The deferred tax assets and liabilities that comprise the net deferred tax liability are included in the consolidated balance sheets
as follows:
U.S. dollars
Yen in millions in millions
March 31, March 31,
2006 2007 2007
Deferred tax assets
Deferred income taxes (Current assets)........................................................................... ¥ 520,494 ¥ 551,503 $ 4,672
Investments and other assets – other .............................................................................. 106,715 98,043 830
Deferred tax liabilities
Other current liabilities...................................................................................................... (7,120) (6,788) (58)
Deferred income taxes (Long-term liabilities)................................................................. (1,092,995) (1,312,400) (11,117)
Net deferred tax liability ............................................................................................... ¥ (472,906) ¥ (669,642) $ (5,673)
Because management intends to reinvest undistributed earn-
ings of foreign subsidiaries to the extent not expected to be
remitted in the foreseeable future, management has made no
provision for income taxes on those undistributed earnings
aggregating ¥2,506,679 million ($21,234 million) as of March 31,
2007. Toyota estimates an additional tax provision of ¥229,863
million ($1,947 million) would be required if the full amount of
those undistributed earnings became subject to Japanese
taxes.
Operating loss carryforwards for tax purposes attributed to
consolidated subsidiaries as of March 31, 2007 were approxi-
mately ¥101,156 million ($857 million) and are available as an
offset against future taxable income of such subsidiaries. The
majority of these carryforwards expire in years 2008 to 2027.
Changes in the number of shares of common stock issued have resulted from the following:
For the years ended March 31,
2005 2006 2007
Common stock issued
Balance at beginning of year................................................................................... 3,609,997,492 3,609,997,492 3,609,997,492
Issuance during the year .......................................................................................... — — —
Purchase and retirement .......................................................................................... — — —
Balance at end of year.......................................................................................... 3,609,997,492 3,609,997,492 3,609,997,492
17. Shareholders’ equity:
The Corporation Act provides that an amount equal to 10%
of distributions from surplus paid by the parent company and
its Japanese subsidiaries be appropriated as a capital reserve or
a retained earnings reserve. No further appropriations are
required when the total amount of the capital reserve and the
retained earnings reserve reaches 25% of stated capital.
The retained earnings reserve included in retained earnings
as of March 31, 2006 and 2007 was ¥145,103 million and
¥151,102 million ($1,280 million), respectively. The Corporation
Act provides that the retained earnings reserve of the parent
company and its Japanese subsidiaries is restricted and unable
to be used for dividend payments, and is excluded from the cal-
culation of the profit available for dividend.
The amounts of statutory retained earnings of the parent
company available for dividend payments to shareholders were
¥5,255,265 million and ¥5,680,249 million ($48,117 million) as of