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(In thousands of U.S. dollars)
March 31, 2010
Hedged
item
Notional
amount
Due more
than 1 year
Fair value
Forward foreign
exchange contracts:
Sell:
Japanese ¥ Interest
Income ¥ 4 ¥— ¥0
Total ¥— ¥— ¥0
The method to determine fair values is based on quotations
obtained from financial institutions.
Interest rate swaps
(In millions of yen)
March 31, 2011
Hedged
item
Notional
amount
Due more
than 1 year
Fair value
Pay-fixed, receive-
floating (recorded
as fair value):
Long-term
loans
payable ¥9,724 ¥9,724 ¥8
Pay-fixed, receive-
floating (special
hedge provisions):
Long-term
loans
payable 4,000 750 (*)
Total ¥ — ¥ — ¥8
(In thousands of U.S. dollars)
March 31, 2011
Hedged
item
Notional
amount
Due more
than 1 year
Fair value
Pay-fixed, receive-
floating (recorded
as fair value):
Long-term
loans
payable $116,957 $116,957 $98
Pay-fixed, receive-
floating (special
hedge provisions):
Long-term
loans
payable 48,105 9,019 (*)
Total $ — $ — $98
(In millions of yen)
March 31, 2010
Hedged
item
Notional
amount
Due more
than 1 year
Fair value
Pay-fixed, receive-
floating (special
hedge provisions):
Long-term
loans
payable ¥7,637 ¥3,000 (*)
Total ¥ — ¥ — —
(*) As interest rate swaps under the special hedge provisions are accounted
together with hedged item (long-term loans payable), their fair values are
reflected in the fair value of long-term loans payable.
18. Retirement Benefits
MMC and its consolidated subsidiaries have defined benefit pension
plans for their employees. The plans include contributory plans in
accordance with the Welfare Pension Institute Law of Japan, tax-
qualified plans, and non-contributory severance plans. Additional
retirement benefits are paid in certain cases upon an employee’s
retirement. Certain foreign consolidated subsidiaries have defined
contribution pension plans. At March 31, 2011, MMC and its
consolidated subsidiaries have 1 fund for contributory plans in
accordance with the Welfare Pension Insurance Law, and 11 funds
for tax-qualified plans. MMC and its consolidated subsidiaries have
14 non-contributory severance plans.
The funded status of multi-employer pension plans included in
the above plans which are accounted for as defined contribution
schemes as of March 31, 2010 was as follows:
(In millions of
yen)
Pension Plan assets ¥25,127
Benefit obligations under pension plan rules 24,630
Difference 497
The ratio of MMC and its consolidated subsidiaries’ payments
to total contributions of the multi-employer plans as of March 31,
2010 was 58.0%. This ratio is not equal to the ratio of the amount
actually contributed by the MMC group.
Defined Benefit Plans
The discount rates used to determine the retirement benefit obliga-
tion were 1.5% ~ 2.0% for MMC and its domestic consolidated
subsidiaries at March 31, 2011 and 2010, 4.6% ~ 8.0% and 4.7%
~ 10.5% for its foreign consolidated subsidiaries at March 31, 2011
and 2010, respectively. The rates of return on plan assets assumed
were 0.7% ~ 4.0% for MMC and its domestic consolidated sub-
sidiaries, 5.0% ~ 8.0% for its foreign consolidated subsidiaries at
March 31, 2011 and 2010.
Prior service cost is amortized using the straight line method
over periods of 1 to 17 years for the years ended March 31, 2011
and 2010. These periods are within the estimated average remain-
ing service years of the employees.
MITSUBISHI MOTORS CORPORATION
Annual Report 2011
54