Mitsubishi 2002 Annual Report Download - page 40

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38
OTHER INCOME AND EXPENSES, AND NET LOSS
Interest expense decreased ¥3.2 billion to ¥32.6 billion as a result of the reduction of interest-bearing debt.
During the year, MMC booked non-recurring losses of ¥43.7 billion. MMC recorded ¥27.3 billion for amortization of consoli-
dation goodwill as a result of acquiring Mitsubishi Motors Sales of Europe B.V. (MMSE) in March 2002, making it a wholly
owned subsidiary. The figure represents the minority interest in accumulated losses of MMSE. Other charges included ¥14.9
billion in severance payments for early retirement to 1,475 people before the end of September last year, and ¥3.9 billion in
inspection expenses in truck and bus operations resulting from accidents related to hub wear.
As a result of the foregoing, loss before income taxes and minority interests was ¥31.9 billion. After deduction of minority
interests and income taxes, net income came in at ¥11.3 billion, as tax-effect accounting caused income taxes to make a
contribution of ¥42.7 billion.
ASSETS AND FINANCIAL POSITION
(Assets)
Current assets decreased ¥128.6 billion to ¥1,099.0 billion. This mainly reflected a ¥96.4 billion drop in trade notes and
accounts receivable to ¥347.9 billion in line with lower sales, and a ¥46.4 billion decrease to ¥304.4 billion in inventories due
to actions to reduce the number of finished and work-in-process passenger cars.
Fixed assets increased ¥41.5 billion to ¥1,795.6 billion, primarily on account of an ¥80.7 billion increase in deferred tax
assets resulting from the recognition of the tax effect of loss carryforwards at U.S. subsidiaries Mitsubishi Motor Sales of
America, Inc. (MMSA) and Mitsubishi Motor Manufacturing of America, Inc. (MMMA) and other factors. This was offset partly
by a ¥50.7 billion decrease in net property, plant and equipment due mainly to the sale of land.
(Liabilities)
Current liabilities increased ¥111.5 billion to ¥2,056.6 billion. Trade notes and accounts payable decreased ¥136.0 billion to
¥497.5 billion, as sales fell, while there was a ¥175.9 billion increase in short-term debt and other items.
Long-term liabilities decreased ¥236.1 billion to ¥551.1 billion. This chiefly reflected the redemption of ¥159.7 billion in bonds
and repayment of ¥38.2 billion in long-term loans. Consequently, interest-bearing debt at year-end was ¥1,304.6 billion, down
¥22.1 billion from a year ago as the company continued its efforts begun in 1998 to reduce debt. This will remain an ongoing
theme at MMC.
(Minority Interests)
Minority interests increased ¥22.9 billion to ¥16.1 billion owing to MMC making MMSE in Europe a wholly owned subsidiary.
(Stockholders’ Equity)
Total stockholders’ equity was ¥270.7 billion, ¥14.6 billion higher than a year ago, due to the improvement in the consolidated
deficit. Stockholders’ equity per share was ¥184.10, about ¥10 higher than at the end of fiscal 2000. The equity ratio improved
0.8 of a percentage point to 9.4%.