Mazda 2013 Annual Report Download - page 50

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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 resolution of the shareholders’ meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Law, all addi-
tional 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, 2013, no year-end dividends were appropriated.
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, 2013 and 2012 were comprised as follows:
Millions of yen
Thousands of
U.S. dollars
For the years ended March 31 2013 2012 2013
Gain on sale of investment in affiliates, net ¥ 9,574 ¥ — $ 101,851
Reversal of investment valuation allowance — 495 —
Loss on retirement and sale of property, plant and equipment, net (2,825) (3,270) (30,053)
Rental income 2,088 1,885 22,213
Loss on sale of receivables (813) (983) (8,649)
Loss on impairment of long-lived assets (2,795) (7,171) (29,734)
Foreign exchange gain/(loss) (19,538) 2,929 (207,851)
Government subsidy 2,746 — 29,213
Reserve for environment measures (60) (19) (638)
Loss on disaster(*1) —(3,731) —
Loss on abolishment of retirement benefit plan —(1,044) —
Business restructuring costs(*2) (1,212) (4,079) (12,894)
Other (976) (2,185) (10,383)
Total ¥(13,811) ¥(17,173) $(146,925)
(*1) The effect of the Great East Japan Earthquake.
(*2) Retirement benefits in some foreign consolidated subsidiaries and compensation payments to some dealers to implement structural reforms.
Notes to Consolidated Financial Statements
Mazda Annual Report 2013
48