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Annual Report 2005
70
MITSUBISHI MOTORS CORPORATION
In thousands of U.S. dollars
2005
Notional Unrealized
amount Fair value gain (loss)
Interest rate swaps:
Pay-fixed, receive-floating $1,209,325 $1,053 $1,053
Pay-floating, receive-fixed 572,012 1,295 1,295
Total $2,348
Included in interest rate swaps above, are contracts with maturities over one year with notional amounts of
¥103,008 million ($959,202 thousand) and ¥45,446 million as at March 31, 2005 and 2004, respectively.
17. RETIREMENT BENEFITS
MMC and its consolidated subsidiaries have defined benefit pension plans for their employees. The plans include
contributory plans in accordance with the Welfare Pension Institute Law of Japan, tax-qualified plans and non-
contributory severance plans. Additional early retirement benefits are paid in certain cases upon employee’s retire-
ment. Certain foreign consolidated subsidiaries have defined contribution pension plans. At March 31, 2005, MMC
and its consolidated subsidiaries have 4 funds for contributory plans in accordance with the Welfare Pension
Insurance Law, and 46 funds for tax-qualified plans. MMC and 43 of its consolidated subsidiaries have non-
contributory severance plans.
The discount rate used to determine the retirement benefit obligation was 1.5%–2.5% for MMC and its domes-
tic consolidated subsidiaries, 6.0%–6.3% for its foreign consolidated subsidiaries, and 2.0%–2.5% for MMC and
its domestic consolidated subsidiaries, 6.25%–7.0% for its foreign consolidated subsidiaries at March 31, 2005
and 2004, respectively. The rate of return on plan assets assumed was 0.8%–4.0% for MMC and its domestic
consolidated subsidiaries, 8.0%–8.5% for its foreign consolidated subsidiaries, and 1.5%–4.0% for MMC and its
domestic consolidated subsidiaries, 8.0%–8.5% for its foreign consolidated subsidiaries for the year ended March
31, 2005 and 2004, respectively.
The retirement benefit obligation for MMC’s and its consolidated subsidiaries’ employees’ defined benefit plans
at March 31, 2005 and 2004 is summarized as follows:
In thousands of
In millions of yen U.S. dollars
2005 2004 2005
Retirement benefit obligation ¥(173,805) ¥(186,990) $(1,618,451)
Pension plan assets at fair value 45,628 54,460 424,882
Unfunded status (128,177) (132,529) (1,193,569)
Unrecognized actuarial losses 20,362 19,668 189,610
Unrecognized prior service cost 11,449 6,605 106,618
Net recognized retirement benefit obligation (96,365) (106,255) (897,340)
Prepaid pension premiums 2,929 4,866 27,283
Accrued retirement benefits ¥(99,295) ¥(111,121) $ (924,624)
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 ¥3,708 million ($34,536 thousand)
and ¥3,627 million at March 31, 2005 and 2004, respectively.