Mazda 2014 Annual Report Download - page 58

The breakdown of items of adjustments for retirement benefit (before tax) recognized in
other comprehensive income for the year ended March 31, 2014 were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2014
Past service costs ¥ 15 $ 146
Actuarial differences 2,240 21,748
Other (3) (29)
Total ¥2,252 $21,865
The breakdown of items of adjustments for retirement benefit (before tax) recognized in
accumulated other comprehensive income as of March 31, 2014 were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2014
Past service costs that are yet to be recognized ¥ 14,228 $ 138,136
Actuarial gains and losses that are yet to be recognized (22,476) (218,214)
Other 10 97
Total ¥ (8,238) $ (79,981)
The breakdown of plan assets by major category as of March 31, 2014 were as follows:
2014
Bonds 40%
Equity securities 27%
General accounts of the life insurance companies 18%
Other 15%
Total 100%
The major items of actuarial assumptions as of March 31, 2014 were as follows:
2014
Discount rate Primarily 1.3%
Long-term expected rate of return Primarily 1.5%
(Additional information)
Effective from April 1, 2014, the Company and its certain subsidiaries are going to change
the content of a part of their funded defined benefit pension plans to cash balance plan.
In connection with this change, according to “Accounting Treatment for Transfer
between Retirement Benefit Plans” (ASBJ Guidance No.1 issued on January 31, 2002)
and “Practical Solution on Accounting Treatment for Transfer between Retirement Benefit
Plans” (ASBJ Practical Issues Task Force (PITF) No.2 issued on February 7, 2007), the
retirement benefit obligations for the year ended March 31, 2014 decreased by ¥7,057 mil-
lion ($68,515 thousand) and the same amount of past service costs was incurred.
1 1 CONTINGENT LIABILITIES
Contingent liabilities as of March 31, 2014 and 2013 were as follows:
Millions of yen
Thousands of
U.S. dollars
As of March 31 2014 2013 2014
Guarantees of loans and similar agreements ¥14,728 ¥18,110 $142,990
12 NET ASSETS
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 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 poten-
tially 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 are year-end cash divi-
dends for the preceding fiscal year and interim cash dividends for the current fiscal year. At
the annual shareholders’ meeting held on June 24, 2014, the cash dividends shareholders
approved amounting to ¥2,989 million ($29,019 thousand). Such appropriations have not
been accrued in the consolidated financial statements as of March 31, 2014. This type of
appropriations is recognized in the period in which they are approved by the shareholders.
56
Mazda Annual Report 2014
CONTENTS
Foundations Underpinning
Sustainable Growth
Financial Section
Review of Operations
Message from Management
Introduction
Brand Value Management