Toyota 2011 Annual Report Download - page 89

Shareholders’ equity:
17
0822
Financial Section and
Investor Information
Business and
Performance Review
Special FeatureMessage/Vision
Management and
Corporate Information
Notes to Consolidated Financial Statements
Yen in millions U.S. dollars in millions
For the years ended March 31,
For the year
ended March 31,
2009 2010 2011 2011
Balance at beginning of year ¥ 37,722 ¥ 46,803 ¥ 23,965 $ 288
Additions based on tax positions related to the
current year 858 2,702 213 3
Additions for tax positions of prior years 35,464 6,750 12,564 151
Reductions for tax positions of prior years (24,061) (2,802) (16,133) (194)
Reductions for tax positions related to lapse of
statute of limitations (114) (106) — —
Reductions for settlements (128) (27,409) (2,794) (34)
Other (2,938) (1,973) (2,362) (28)
Balance at end of year ¥ 46,803 ¥ 23,965 ¥ 15,453 $ 186
A summary of the gross unrecognized tax benefits changes for the years ended March 31, 2009,
2010 and 2011 is as follows:
The amount of unrecognized tax benefits
that, if recognized, would affect the effective tax
rate was not material at March 31, 2009, 2010 and
2011, respectively. Toyota does not believe it is
reasonably possible that the total amounts of
unrecognized tax benefits will significantly increase
or decrease within the next twelve months.
Interest and penalties related to income tax
liabilities are included in “Other income (loss),
The Corporation Act provides that an amount
equal to 10% of distributions from surplus paid by
the parent company and its Japanese subsid-
iaries be appropriated as a capital reserve or a
retained earnings reserve. No further appropria-
tions 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, 2010 and 2011
was ¥168,680 million and ¥171,062 million ($2,057
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 calculation of
the profit available for dividend.
The amounts of statutory retained earnings of
the parent company available for dividend
payments to shareholders were ¥5,478,747 million
and ¥5,389,432 million ($64,816 million) as of
March 31, 2010 and 2011, respectively. In
accordance with customary practice in Japan, the
distributions from surplus are not accrued in the
financial statements for the corresponding period,
but are recorded in the subsequent accounting
period after shareholders’ approval has been
obtained. Retained earnings at March 31, 2011
net”. The amounts of interest and penalties
accrued as of and recognized for the years ended
March 31, 2009, 2010 and 2011, respectively,
were not material.
Toyota remains subject to income tax
examination for the tax returns related to the years
beginning on and after January 1, 2004 and
2000, with various tax jurisdictions in Japan and
foreign countries, respectively.
include amounts representing year-end cash
dividends of ¥94,071 million ($1,131 million), ¥30
($0.36) per share, which were approved at the
Ordinary General Shareholders’ Meeting, held on
June 17, 2011.
Retained earnings at March 31, 2011 include
¥1,401,985 million ($16,861 million) relating to
equity in undistributed earnings of companies
accounted for by the equity method.
On June 22, 2007, at the Ordinary General
Shareholders’ Meeting, the shareholders of the
parent company approved to purchase up to 30
million shares of its common stock at a cost up to
¥250,000 million during the purchase period of
one year from the following day. As a result, the
parent company repurchased 30 million shares
during the approved period of time.
On February 5, 2008, the Board of Directors
resolved to purchase up to 12 million shares of its
common stock at a cost up to ¥60,000 million in
accordance with the Corporation Act. As a result,
the parent company repurchased approximately
10 million shares.
On the same date, the Board of Directors also
resolved to retire 162 million shares of its common
stock, and then the parent company retired its
common stock on March 31, 2008. This retire-
ment, in accordance with the Corporation Act
Changes in the number of shares of common stock issued have resulted from the following:
For the years ended March 31,
2009 2010 2011
Common stock issued
Balance at beginning of year 3,447,997,492 3,447,997,492 3,447,997,492
Issuance during the year ― ― ―
Purchase and retirement ― ― ―
Balance at end of year 3,447,997,492 3,447,997,492 3,447,997,492
provision for income taxes on those undistributed
earnings aggregating ¥2,709,626 million ($32,587
million) as of March 31, 2011. Toyota estimates an
additional tax provision of ¥100,957 million ($1,214
million) would be required if the full amount of
those undistributed earnings were remitted.
Operating loss carryforwards for tax purposes
as of March 31, 2011 were approximately ¥894,587
million ($10,759 million) and are available as an
offset against future taxable income. The majority
of these carryforwards expire in years 2012 to
2030. Tax credit carryforwards as of March 31,
2011 were ¥127,289 million ($1,531 million) and
the majority of these carryforwards expire in years
2012 to 2014.
89TOYOTA ANNUAL REPORT 2011