Mitsubishi 2000 Annual Report Download - page 55

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Notes to consolidated financial statements
53
a. Other income and expenses
Other income and expenses at March 31, 2000 and 1999 consisted of the following:
11. Income taxes
MMC and its domestic consolidated subsidiaries are subject to corporation, inhabitants' and enterprise taxes based on tax-
able income, which, in the aggregate, resulted in statutory tax rates of approximately 41.8% and 46.4% for the years end-
ed March 31, 2000 and 1999, respectively. Income taxes of the foreign consolidated subsidiaries are based generally on
the tax rates applicable in their countries of incorporation. The effective tax rates reflected in the accompanying consoli-
dated statements of operations for the year ended March 31, 1999 differs from the statutory rates primarily because of the
effect of timing differences in the recognition of certain income and expenses for tax and financial reporting purposes and
the effects of permanently nondeductible expenses and tax credits.
The effective tax rate reflected in the consolidated statement of operations for the year ended March 31, 2000 differs from
the statutory tax rate for the following reasons:
Year ended March 31,
2000 1999 2000
(In millions of yen) (In thousands of
U.S. dollars)
Gains on sales of marketable securities ¥ 13,572 ¥ 602 $ 127,857
Gains on sales and disposal of property, plant
and equipment 4,268 23,441 40,207
Equity in profit in affiliates 9,132 569 86,029
Foreign exchange gain (loss) (19,512) 2,115 (183,815)
Severance payment for early retirement (9,094) - (85,671)
Settlement for litigation - (4,459) -
Prior adjustment of severance payment (3,767) - (35,488)
Others (1,865) (4,233) (17,569)
¥ (7,266) ¥ 18,035 $ (68,450)
(%)
Effective income tax rate for MMC 41.8
Loss at subsidiaries (92.5)
Increase of valuation allowance (83.9)
Equity in affiliates 30.2
Amortization of consolidation adjustment (19.5)
Other (5.0)
Actual ratio of income taxes against income
before income taxes (128.9)