Mitsubishi 2011 Annual Report Download - page 47

(In millions of yen)
For the year ended March 31, 2010
Location Application Assets Impairment loss amount
Matsuyama,
Ehime and
Kawagoe,
Saitama and
others
(16 sites)
Assets used
in sales
operations
Land,
buildings and
others ¥208
Nayoro,
Hokkaido
and others
(2 sites) Idle assets Land 6
¥214
The groupings of assets are determined as follows:
Assets used in production are grouped either by manufacturing
plants or by operational sites. Assets used in sales operations are
generally grouped by operational sites. Assets leased to others and
idle assets have their own asset groups.
As a result of the worsening market environment and other
factors, 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 higher of: value in use, which is
determined by estimating future cash flow with a 5% discount
rate; and net realizable value, which is based on an appraisal value
obtained from a professional real estate appraiser or 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 ¥2,977 million
($35,810 thousand) and consisted of ¥2,875 million ($34,576
thousand) from machinery and equipment and ¥102 million
($1,234 thousand) from other assets for the year ended March 31,
2011. Loss on impairment of fixed assets amounted to ¥214 million
and consisted of ¥85 million from land, ¥125 million from build-
ings, and ¥3 million from other assets for the year ended March 31,
2010.
6. Investments
Other securities at March 31, 2011 and 2010 were as follows:
(In millions of yen)
March 31, 2011
Carrying
amount
Acquisition
cost
Unrealized
gains
Unrealized
(losses)
Other securities:
Securities with
market value ¥28,722 ¥10,164 ¥18,564 ¥(6)
Total ¥28,722 ¥10,164 ¥18,564 ¥(6)
(In thousands of U.S. dollars)
March 31, 2011
Carrying
amount
Acquisition
cost
Unrealized
gains
Unrealized
(losses)
Other securities:
Securities with
market value $345,429 $122,240 $223,270 $(81)
Total $345,429 $122,240 $223,270 $(81)
(In millions of yen)
March 31, 2010
Carrying
amount
Acquisition
cost
Unrealized
gains
Unrealized
(losses)
Other securities:
Securities with
market value ¥20,296 ¥10,170 ¥10,138 ¥(12)
Total ¥20,296 ¥10,170 ¥10,138 ¥(12)
Significant declines in the value of securities with market value
are recognized as impairment losses if the decline is not considered
to be recoverable. After the write-down of the impaired amount,
a new book value is recognized. Losses recognized on the impair-
ment of other securities with market value totaled ¥2 million ($31
thousand) and ¥20 million for the years ended March 31, 2011 and
2010, respectively.
Proceeds from sales of other securities and the corresponding
gross gains and losses that are included in other gain (loss), net in
the accompanying consolidated statements of operations for the
years ended March 31, 2011 and 2010 were as follows:
(In millions of yen)
(In thousands
of U.S. dollars)
For the years ended March 31,
2011 2010 2011
Proceeds ¥1 ¥260 $15
Gross gains —136 —
Gross losses (2) —(35)
MITSUBISHI MOTORS CORPORATION
Annual Report 2011 45