Mitsubishi 2013 Annual Report Download - page 58

MITSUBISHI MOTORS CORPORATION
Annual Report 2013
56
23. Income and Equity per Share
Net income and equity per share of common stock for the years
ended March 31, 2013 and 2012 are summarized as follows:
(In yen)
(In U.S.
dollars)
March 31,
2013 2012 2013
Net income (loss) per share
of common stock
Basic ¥ 6.61 ¥ 4.32 $ 0.07
Diluted 3.71 2.40 0.04
Stockholders’ equity per
share of common stock (9.21) (32.61) (0.10)
The computations of net income per share of common stock for
the years ended March 31, 2013 and 2012 are as follows:
(In millions of yen)
(In thousands
of U.S. dollars)
For the years ended March 31,
2013 2012 2013
Numerator for basic net
income (loss) per share of
common stock:
Net income (loss)
¥37,978 ¥23,928 $403,815
Income not available to
common stockholders
———
Income available to
common stockholders
¥37,978 ¥23,928 $403,815
Denominator for net income
(loss) per share of common
stock:
Weighted average number
of shares (in thousands)
5,749,898 5,537,863
Number of dilutive
potential common
shares (in thousands)
4,488,478 4,421,266
(Preferred stock)
(4,488,478) (4,421,266)
24. Business Combinations and Divestitures
Major affiliates
(a) The outline of business divestiture
(1) Name of transferee company: VD Leegte Beheer B.V.
(2) Divested business: Manufacturing automobiles and parts
(3) Reasons for business divestiture: To respond to the wildly
fluctuating operating environment which automobile manu-
facturers currently face, MMC reviewed its global production
operation structure and accordingly made a decision not to
allocate a new model to be produced at Netherlands Car
B.V. from 2013 and beyond. Since then, MMC carried out
discussions with associated parties to explore the possibility
of the future continuation of Netherlands Car B.V. while
making assurance of employment of all its employees
a top priority. As a result, MMC decided to transfer the
entire shares of Netherlands Car B.V. to VD Leegte Beheer
B.V.(100% owned by VDL Groep B.V.).
(4) Date of business divestiture: December 14, 2012
(5) Legal form of transaction: Share transfer
(b) The outline of accounting treatment implemented
(1) Loss on the transfer of the subsidiary’s equity:
¥24,741 million ($263,064 thousand)
(2) The carrying values of the assets and liabilities transferred in
the business divestiture were as follows:
Current assets ¥26,091 million ($277,417 thousand)
Non-current assets ¥68 million ($729 thousand)
Total assets ¥26,159 million ($278,147 thousand)
Current liabilities ¥6,453 million ($68,617 thousand)
Non-current liabilities ¥2,169 million ($23,072 thousand)
Total liabilities ¥8,623 million ($91,689 thousand)
(3) Accounting treatment: The difference between the proceeds
and consolidated carrying value of Netherlands Car B.V. is re-
corded as Loss on sales of subsidiaries and affiliates’ stocks,
which is included in Other gain (loss), net of consolidated
statement of income for the year ended March 31, 2013.
(4) The reportable segment in which the transferred business
was included: Automobile
(5) The estimated amount of income pertaining to the trans-
ferred business until the time of transfer, which is reported
in the consolidated statement of income for the year ended
March 31, 2013.
Net Sales ¥13,878 million ($147,559 thousand)
Operating income (¥3,420) million (($36,363) thousand)
25. Subsequent Event
(a) Reduction of common stock, transfers within capital surplus
and cancellation of accumulated deficit (transfers within capital
surplus relates to the reduction of capital reserve and the in-
crease of other capital surplus in the non-consolidated financial
statements of MMC)
The 44th general meeting of shareholders on June 25, 2013
duly approved a resolution for the reduction of common stock
and transfers within capital surplus and cancellation of accumu-
lated deficit, which had been approved at the meeting of the
Board of Directors on May 24, 2013.