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to 35.2% for the temporary differences expected to be realized or
settled from fiscal years beginning April 1, 2014. The effect of the
announced reduction of the effective tax rate at the end fiscal year
ended March 31, 2014 was immaterial.
19. Asset Retirement Obligations
(a) Overview
MMC and its consolidated subsidiaries have obligations associated
with the restoration and removal of tangible fixed assets at the end
of lease terms pertaining to certain property lease agreements, and
have obligations associated with removal of hazardous substances.
(b) Method for measuring the amount of asset retirement
obligations
The useful lives of assets from acquisition or construction date has
been estimated ranging from 1 to 59 years, and the amount of
asset retirement obligations has been measured using the discount
rates ranging from 0.1% to 4.4%.
(c) Changes in the amount of asset retirement obligations
For the year ended March 31, 2014, the carrying amount of asset
retirement obligations was decreased by ¥1,289 million ($12,530
thousand) as it has become clear that the expected removal costs
required at the time of retirement would be less than the original
estimate. Changes in the amount of asset retirement obligations for
the years ended March 31, 2014 and 2013 were as follows:
(In millions of yen)
(In thousands
of U.S. dollars)
For the year ended March 31,
2014 2013 2014
Balance at beginning
of year ¥ 7,386 ¥7,414 $ 71,772
Increase due to the
acquisition of property,
plant and equipment 47 25 461
Discount accretion
expense 112 255 1,097
Decrease due to the
settlement of asset
retirement obligations (972) (51) (9,450)
Increase due to change
in estimate —622 —
Decrease due to change
in estimate (1,289) (105) (12,530)
Others (*) (37) (773) (361)
Balance at end of year ¥ 5,247 ¥7,386 $ 50,989
(*) Others include foreign currency translation adjustments and the effect of
deconsolidation.
20. Investment and Rental Property
For the years ended March 31, 2014 and 2013, no disclosures
are provided as investment and rental property is considered
immaterial.
21. Segment Information
(a) Overview of reportable segments
The reportable segments of the Group are components for which
discrete financial information is available, and for which operating
results are regularly reviewed by MMC’s decision making bodies
including the Board of Directors to determine resource allocation to
the segments and to assess their performance.
The main business of the Group is automobile business, involv-
ing development, design, manufacturing and sales of automobiles
and component parts. In addition, as financial service business, we
engage in sales finance and leasing services for Group products.
Accordingly, based on the types of products and services offered,
the Group determined “automobile business” and “financial service
business” as two reportable segments.
(b) Basis of calculating net sales, income (loss), assets and
other amounts of each reportable segment
The accounting policies of the segments are substantially the same
as those described in Note 1.
MITSUBISHI MOTORS CORPORATION
Annual Report 2014 59