Mazda 2011 Annual Report Download - page 68

12 EQUITY
Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as
common stock. However, a company may, by a resolution of the Board of Directors, designate an amount not
exceeding one half of the price of the new shares as additional paid-in capital, which is included in capital surplus.
Under the Corporate Law (“the Law”), in cases where dividend distribution of surplus is made, the smaller of an
amount equal to 10% of the dividend or the excess, if any, of 25% of common stock over the total of additional paid-in
capital and legal earnings reserve, must be set aside as additional paid-in capital or legal earnings reserve. Legal
earnings reserve is included in retained earnings in the accompanying consolidated balance sheets. Legal earnings
reserve and additional paid-in capital could be used to eliminate or reduce a deficit or could be capitalized by a resolu-
tion of the shareholders’ meeting. Additional paid-in capital and legal earnings reserve may not be distributed as divi-
dends. Under the Law, all additional paid-in capital and legal earnings reserve may be transferred to other capital
surplus and retained earnings, respectively, which are potentially available for dividends. The maximum amount that
the Company can distribute as dividends is calculated based on the non-consolidated financial statements of the
Company in accordance with the Law. Cash dividends charged to retained earnings during the fiscal year were year-
end cash dividends for the preceding fiscal year and interim cash dividends for the current fiscal year.
The appropriations are not accrued in the consolidated financial statements for the corresponding period, but are
recorded in the subsequent accounting period after shareholders’ approval has been obtained. For the year ended
March 31, 2011, no year-end dividends were appropriated.
As discussed in Note 3, commencing in the year ended March 31, 2011, the Company and its foreign affiliates
adopted PITF No. 24. As a transition requirement of PITF No. 24, the balance of consolidated retained earnings as
of April 1, 2010 was reduced.
13 OTHER INCOME/(EXPENSES)
The components of “Other, net” in Other income/(expenses) in the consolidated statements of operations for the
years ended March 31, 2011 and 2010 were comprised as follows:
Millions of yen
Thousands of
U.S. dollars
For the years ended March 31 2011 2010 2011
Gain on sale of investment securities, net ¥ 15 ¥ 10 $ 181
Gain on sale of investment in affiliates, net 702 440 8,458
Reversal of investment valuation allowance 285 227 3,434
Loss on retirement and sale of property, plant and equipment, net (1,908) (3,012) (22,988)
Rental income 2,023 2,035 24,373
Loss on sale of receivables (1,234) (1,397) (14,867)
Loss on impairment of long-lived assets (3,416) (2,495) (41,157)
Foreign exchange gain/(loss) 9,230 (807) 111,205
Compensation received for the exercise of eminent domain 2 311 24
Reserve for loss from business of affiliates (8,533) (5,862) (102,807)
Reserve for environmental measures (11) (1,464) (133)
Adoption of accounting standards for asset retirement obligations (2,684) — (32,337)
Loss on disaster(*1) (5,211) —(62,783)
Other (1,461) (1,505) (17,602)
¥(12,201) ¥(13,519) $(147,000)
(*1) The effect of the Great East Japan Earthquake.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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