Mitsubishi 2003 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2003 Mitsubishi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 78

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78

59 MITSUBISHI MOTORS CORPORATION
11. CONTINGENT LIABILITIES
Trade notes endorsed in the ordinary course of business amounted to ¥112 million ($932 thousand) at March 31, 2003.
Loans guaranteed given in the ordinary course of business amounted to ¥9,691 million ($80,624 thousand) at March 31, 2003.
Agreements similar to guarantees given in the ordinary course of business amounted to ¥5,171 million ($43,020 thousand) at March
31, 2003.
12. OTHER INCOME AND EXPENSES
Other income and expenses for the years ended March 31, 2003 and 2002 consisted of the following:
(In thousands of
(In millions of yen) U.S. dollars)
Year ended March 31, 2003 2002 2003
Gain on sales of investments in securities ¥ 13,980 ¥ 3,977 $ 116,306
Gain on sales of stocks of subsidiaries 6,569 –54,651
Gain (loss) on sales and disposal of property, plant and equipment
and intangible assets (3,358) 266 (27,937)
Cumulative effect of a change in accounting for deferred lease
subvention income (11,152) –(92,779)
Loss on impairment of investment securities (10,401) –(86,531)
Income from affiliated companies 2,373 4,352 19,742
Foreign exchange gain (loss) 292 (11,174) 2,429
(Provision) / Reversal of accrual for restructuring expense (1,170) 1,644 (9,734)
Cost of extraordinary measures (5,099) –(42,421)
Severance payments for early retirement (1,361) (14,926) (11,323)
Amortization of consolidation goodwill 833 (27,285) 6,930
Other (5,507) (7,116) (45,815)
¥(14,000) ¥(50,262) $(116,473)
13. INCOME TAXES
MMC and its domestic consolidated subsidiaries are subject to corporation, resident’s and enterprise taxes based on taxable in-
come, which, in the aggregate, resulted in a statutory tax rate of approximately 41% for the years ended March 31, 2003 and 2002.
Income taxes of the foreign consolidated subsidiaries are calculated based generally on the tax rates applicable in their countries
of incorporation.
A system for the preparation and filing of consolidated tax returns was introduced in Japan in fiscal 2002. MMC and its domestic
subsidiaries elected to adopt this system in fiscal 2002.
Due to a change in the Japanese enterprise tax law, the aggregate statutory tax rate for MMC and its domestic subsidiaries will
decrease effective April 1, 2004. Consequently the effective tax rate reflected in the calculation of deferred taxes was 41.7% for tem-
porary differences for which reversals are scheduled in the years to March 31, 2004, and was 40.4% for temporary differences for which
reversals are scheduled thereafter. As a result, net deferred tax assets and liabilities, and provisions for income taxes of MMC and its
consolidated subsidiaries for the year ended March 31, 2003 decreased by ¥997 million ($8,294 thousand) and increased by ¥1,697
million ($14,118 thousand), respectively.