Mazda 2009 Annual Report Download - page 61

Review of OperationsMessages from Management Mazda’s Environmental and
Safety Technology
Corporate Information Financial Section
Additional Information
Change in estimated useful lives of property, plant and equipment
As the Corporate Tax Code of Japan was revised on April 30, 2008 to implement certain changes to useful lives of
property, plant and equipment, commencing in the year ended March 31, 2009, the Domestic Companies changed
the estimated useful lives of property, plant and equipment in calculating depreciation expense in accordance with the
revised Corporate Tax Code of Japan.
The effects of this change on the consolidated statement of operations for the year ended March 31, 2009
were to increase operating loss by ¥2,325 million ($23,724 thousand) and to increase loss before income taxes by
¥2,337 million ($23,847 thousand).
The effects of this change on the segment information are discussed in the applicable section of the notes to the
consolidated financial statements.
Accounting for estimated residual value of property, plant and equipment
In relation to the applicable changes in the Corporate Tax Code of Japan, commencing in the year ended March
31, 2008, for those property, plant and equipment 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 ended March 31, 2008, whichever comes later).
The effects of adopting this accounting for residual value of property, plant and equipment on the consolidated
statement of operations for the year ended March 31, 2008 were to decrease operating income by ¥3,951 million and
to decrease income before income taxes by ¥4,113 million.
The effects of adopting this accounting for residual value of property, plant and equipment on the segment
information are discussed in the applicable section of the notes to the consolidated financial statements.
Termination of directors’ and corporate auditors’ retirement benefits
Prior to the year ended March 31, 2008, the Company used to recognize, in liabilities, directors’ and corporate
auditors’ retirement benefits; the amount that would be required by the internal corporate policy if all the directors
and corporate auditors retired on the balance sheet date was recognized. As part of management reform, however,
by the resolution of the general meeting of shareholders held on June 26, 2007, the Company reached a decision to
terminate retirement benefits to directors and corporate auditors as of the end of this general meeting of shareholders
as well as to pay the directors and corporate auditors such benefits already earned by the time of the decision.
In relation to this decision, commencing in the year ended March 31, 2008, the liabilities are included in other long-
term liabilities. As of March 31, 2008, the outstanding amount of the liabilities included in other long-term liabilities
amounted to ¥618 million.
4. SECURITIES
The Company and its consolidated subsidiaries had no trading or held-to-maturity debt securities with available fair
values at March 31, 2009 and 2008.
Available-for-sale securities that have available market values as of March 31, 2009 were as follows:
Millions of yen Thousands of U.S. dollars
Acquisition Carrying Unrealized Acquisition Carrying Unrealized
costs values gains costs values gains
Stocks ¥4,465 ¥4,712 ¥247 $45,561 $48,081 $2,520
Other 376 376 — 3,837 3,837 —
¥4,841 ¥5,088 ¥247 $49,398 $51,918 $2,520
Available-for-sale securities with no available fair values as of March 31, 2009 were as follows:
Millions Thousands of
of yen U.S. dollars
Carrying values Carrying values
Non-listed equity securities ¥ 3,190 $ 32,551
Certificates of deposit and other 38,840 396,327
59
                      