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66 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
Asset groups for which impairment losses were recorded for the year ended March 31, 2006 were as follows:
In thousands of
In millions of yen U.S. dollars
Location Application Assets Impairment loss amount
Illinois, USA and South Australia, Assets used in Structures, machinery
Australia, (2 sites) production and equipment ¥18,908 $160,965
Nagakute, Aichi and Fujiidera, Assets used in
Osaka and others (95 sites) sales operations Land, buildings and others 20,266 172,524
Sendai, Miyagi and Nara, Assets leased
Nara and others (9 sites) to others Land, buildings and others 2,563 21,821
Tama, Tokyo and Kato,
Hokkaido and others (31 sites) Idle assets Land, buildings and others 3,346 28,485
¥45,084 $383,796
The grouping of assets are determined as follows:
Assets used in production are grouped either by manufacturing plants or operational site. Assets used in sales op-
erations are generally grouped by operational site. Assets leased to others and idle assets have their own asset groups.
As a result of the previously listed factors that cast doubt on the ability of the MMC group to continue as a going
concern, as well as significant decreases in market prices, the book value of some of the assets has been adjusted
downwardly to recoverable value.
The recoverable values of assets have been obtained through comparing and then taking the highest value of:
value in use, which is determined by estimating future cash flow with 6% discount rate; an appraisal value obtained
from a professional real estate appraiser: and net sales value, which is calculated on a reasonable basis by using the
estate tax valuations through land assessments and similar methods.
Loss on impairment of fixed assets amounted to ¥45,084 million ($383,796 thousand) as other loss, net for the
year ended March 31, 2006. Losses on land and buildings at March 31, 2006 amounted to ¥20,665 million
($175,924 thousand) and ¥3,944 million ($33,578 thousand), respectively. Losses on other assets at March 31,
2006 amounted to ¥20,474 million ($174,293 thousand).
9. Investments
Other securities at March 31, 2006 and 2005 were as follows:
In millions of yen
2006 2005
Acquisition Carrying Unrealized Unrealized Acquisition Carrying Unrealized Unrealized
cost amount gains (losses) cost amount gains (losses)
Other securities:
Securities with
market value ¥ 9,870 ¥25,110 ¥15,246 ¥(6) ¥ 9,890 ¥25,622 ¥15,759 ¥(27)
Securities without
market value 27,288 27,288 — — 23,178 23,178 — —
Total other securities ¥37,159 ¥52,399 ¥15,246 ¥(6) ¥33,068 ¥48,800 ¥15,759 ¥(27)