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65
MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
4. Additional Information
On March 30, 2006, MMC agreed with DaimlerChrysler AG (DCX) as to the basic outline on which both sides would
further advance their consultations regarding the discontinuance of production of the
smart forfour
model manufac-
tured by MMC’s consolidated subsidiary, Netherlands Car B.V., as well as compensation for the discontinuance of pro-
duction. At present, MMC is in discussion with DCX. However, based on the Contract Manufacturing Agreement
between Netherlands Car B.V. and smart gmbh which is effective until the year 2010, smart gmbh will bear annual
fixed costs related to the
smart forfour
. Therefore MMC’s FY2006 earnings projections are unchanged regardless of
the discontinuance of the production of
smart forfour
.
5. U.S. Dollar Amounts
The U.S. dollar amounts in the accompanying consolidated financial statements are included, solely for convenience,
at ¥117.47 = U.S.$1.00, the exchange rate prevailing on March 31, 2006. The translation should not be construed
as a representation that the Yen amounts represent or have been, or could be, converted into U.S. dollars at that or
any other rate.
6. Trade Notes and Accounts Receivable, and Finance Receivables Sold
The outstanding balances of trade notes and accounts receivable sold to others which have been deducted from the
respective accounts amounted to ¥12,359 million ($105,210 thousand) and ¥7,913 million as of March 31, 2006
and 2005, respectively. Such amounts deducted from finance receivables were ¥115,214 million ($980,800 thou-
sand) and ¥240,317 million as of March 31, 2006 and 2005, respectively.
7. Inventories
Inventories at March 31, 2006 and 2005 consisted of the following:
In thousands of
In millions of yen U.S. dollars
2006 2005 2006
Finished products ¥164,510 ¥163,187 $1,400,448
Raw materials 32,008 25,468 272,485
Work in process 61,427 44,696 522,918
¥257,946 ¥233,353 $2,195,851
8. Property, Plant and Equipment
Property, plant and equipment at March 31, 2006 and 2005 consisted of the following:
In thousands of
In millions of yen U.S. dollars
2006 2005 2006
Land ¥ 105,038 ¥ 127,449 $ 894,176
Buildings and structures 320,919 332,613 2,731,927
Machinery and equipment 1,319,823 1,350,483 11,235,407
Construction in progress 20,732 34,964 176,490
1,766,514 1,845,511 15,038,002
Accumulated depreciation (1,260,506) (1,314,608) (10,730,453)
Property, plant and equipment, net ¥ 506,007 ¥ 530,903 $ 4,307,548
Notes to Consolidated Financial Statements