Mazda 2008 Annual Report Download - page 85

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4) As discussed earlier in the depreciation of tangible fixed assets section, commencing in the year ended March 31, 2008, the Domestic Companies changed the depreciation
method in relation to the change in the Japanese Income Tax Code. The effects of this change on Japan Segment for the year ended March 31, 2008 were to increase operating
expense by ¥910 million ($9,100 thousand) and to decrease operating income by the same amount.
5) As discussed earlier in the accounting for residual value for fixed assets section, commencing in the year ended March 31, 2008, in relation to the changes in the Japanese
Income Tax Code, for the tangible fixed assets that were acquired on or before March 31, 2007 and for which accumulated depreciation has reached 95% of the acquisition
cost, the Domestic Companies recognize depreciation for the difference between the 5% residual value and the nominal value (i.e., 1 yen) on a straight-line basis over 5 years,
starting in the year following the year in which accumulated depreciation has reached 95% of the acquisition cost (or the year ending March 31, 2008, whichever comes later).
The effects of adopting this accounting for residual value of fixed assets on the consolidated statement of income for the year ended March 31, 2008, were to increase operating
expense by ¥3,951 million ($39,510 thousand) and to decrease operating income by same amount.
International sales for the years ended March 31, 2008, 2007 and 2006 were as follows:
Millions of yen
For the year ended March 31, 2008 North America Europe Other areas Total
International sales ¥1,015,315 ¥888,555 ¥691,787 ¥2,595,657
Percentage of consolidated net sales 29.2% 25.6% 19.9% 74.7%
Millions of yen
For the year ended March 31, 2007 North America Europe Other areas Total
International sales ¥1,017,874 ¥789,135 ¥553,149 ¥2,360,158
　
Millions of yen
For the year ended March 31, 2006 North America Europe Other areas Total
International sales ¥843,988 ¥668,941 ¥519,232 ¥2,032,161
Percentage of consolidated net sales 28.9% 22.9% 17.8% 69.6%
Thousands of U.S. dollars
For the year ended March 31, 2008 North America Europe Other areas Total
International sales $10,153,150 $8,885,550 $6,917,870 $25,956,570
Notes: 1) Overseas sales include exports by Mazda Motor Corporation and its domestic consolidated subsidiaries as well as sales (other than exports to Japan) by overseas consolidated
subsidiaries.
2) Method of segmentation and principal countries or regions belonging to each segment　
a) Method: Segmentation by geographic adjacency
b) Principal countries or regions belonging to each segment
North America ........... U.S.A. and Canada
Europe ......................Germany, U.K. and Russia
Other areas ............... Australia, China and Colombia
18. RELATED PARTY TRANSACTIONS
The Company issued guarantees of loans and letters of undertaking to provide guarantees to certain creditors of
AutoAlliance International, Inc. (“AAI”), an affiliate which is accounted for by the equity basis. As of March 31, 2008
and 2007, guarantees of loans and letters of undertaking, included in contingent liabilities, covered ¥16,480 million
($164,800 thousand) and ¥22,789 million, respectively, of AAI’s obligations.
19. SUPPLEMENTARY CASH FLOW INFORMATION
For the years ended March 31, 2008 and 2007, the exercise of bonds with stock acquisition rights increased common
stock by ¥555 million ($5,550 thousand) and ¥1,153 million, respectively, and increased capital surplus by ¥555
million ($5,550 thousand) and ¥1,153 million, respectively, and decreased bonds with stock acquisition rights by
¥1,110 million ($11,100 thousand) and ¥2,306 million, respectively.
Assets and liabilities related to finance lease transactions that were newly recognized in the year ended March 31,
2008 amounted to ¥38,743 million ($387,430 thousand) and ¥39,906 million ($399,060 thousand), respectively.
20. SUBSEQUENT EVENTS
The Board of Directors of the Company resolved on March 31, 2008, to issue notes and bonds up to ¥70,000 million
($700,000 thousand) from April of 2008 to March of 2009. The Company issued domestic unsecured bonds of
¥10,000 million ($100,000 thousand) on June 17, 2008. The bonds will mature in 2013.
In addition, the following appropriation of retained earnings was approved at a shareholders’ meeting held on June
25, 2008:
Thousands of
Millions of yen U.S. dollars
Year-end cash dividends: ¥3.00 ($0.03) per share ¥4,228 $42,280
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