Mitsubishi 2004 Annual Report Download - page 54

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52
Plan assets relating to multi-employer pension plans are not included in the above pension plan assets, as the amount of such
assets representing the consolidated subsidiaries’ share can not be reasonably established. The amount of such assets calculated
mainly on the basis of contribution ratio was ¥3,627 million ($34,318 thousand) and ¥3,681 million at March 31, 2004 and
2003, respectively.
Pension expenses for MMC’s and its consolidated subsidiaries’ employees’ retirement defined benefit plans for the years ended
March 31, 2004 and 2003 were as follows:
In millions of yen In thousands of
U.S. dollars
2004 2003 2004
Service cost ¥11,718 ¥17,232 $110,879
Interest cost 5,175 8,351 48,970
Expected return on plan assets (2,549) (3,177) (24,125)
Amortization of actuarial loss 2,673 3,019 25,292
Amortization of prior service cost 347 (12) 3,288
Other 5,363 —50,749
Pension expenses ¥22,729 ¥25,413 $215,054
In addition to the above pension expenses, additional early retirement benefits of ¥3,190 million ($30,185 thousand) and
¥1,340 million were paid and recorded as other income (loss) during the years ended March 31, 2004 and 2003, respectively.
On January 6, 2003, MMC demerged its truck and bus operations and established MFTBC. As a result of the sale of a 58%
interest in MFTBC on March 14, 2003, MFTBC became an affiliate of MMC and is accounted for under the equity method.
The retirement benefit obligation which MMC transferred to MFTBC at March 31, 2003 as part of the demerger is
summarized as follows:
In millions of yen
2003
Retirement benefit obligation ¥(93,186)
Pension plan assets at fair value 22,329
Unfunded status (70,857)
Unrecognized actuarial loss 13,155
Unrecognized prior service cost 600
Net recognized retirement benefit obligation (57,101)
Prepaid pension cost 790
Accrued retirement benefits ¥(57,891)
20. INCOME TAXES
MMC and its domestic consolidated subsidiaries are subject to corporation, residents’ and enterprise taxes based on taxable
income, which, in the aggregate, resulted in a statutory tax rate of approximately 41.6% and 41.7% for the years ended March
31, 2004 and 2003, respectively. Income taxes of the foreign consolidated subsidiaries are calculated based generally on the tax
rates applicable in their countries of incorporation.
MMC and its wholly owned domestic subsidiaries have been adopting the system of filing tax returns on a consolidated basis
since the year ended March 31, 2003.
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 temporary differences for which reversals are scheduled in the years to March 31, 2004, and was 40.4% for temporary differ-
ences 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 and increased by
¥1,697 million, respectively.