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71
MITSUBISHI MOTORS CORPORATION
Annual Report 2005
Financial Section
Pension expenses for MMC’s and its consolidated subsidiaries’ employees’ retirement defined benefit plans for
the years ended March 31, 2005 and 2004 were as follows:
In thousands of
In millions of yen U.S. dollars
2005 2004 2005
Service cost ¥9,086 ¥11,718 $84,613
Interest cost 4,803 5,175 44,731
Expected return on plan assets (2,158) (2,549) (20,101)
Amortization of actuarial loss 781 2,673 7,281
Amortization of prior service cost 708 347 6,599
Other 428 5,363 3,987
Pension expenses ¥13,650 ¥22,729 $127,113
In addition to the above pension expenses, additional early retirement benefits of ¥16,283 million ($151,629
thousand) and ¥3,190 million were paid and recorded as other income (loss) during the year ended March 31, 2005
and 2004, respectively.
18. INCOME TAXES
MMC and its domestic consolidated subsidiaries are subject to corporation, resident’s and enterprise taxes based on
taxable income, which, in the aggregate, resulted in a statutory tax rate of approximately 40.3% and 41.6% for the
years ended March 31, 2005 and 2004, respectively. Income taxes of the foreign consolidated subsidiaries are
calculated based generally on the tax rates applicable in their countries of incorporation. Consolidated tax payment
is applied at March 3, 2005 and 2004.
The effective tax rates reflected in the accompanying consolidated statements of operations for the years ended
March 31, 2005 and 2004 differ from the statutory tax rate for the following reasons:
%
2005 2004
Statutory income tax rate for MMC 40.3 41.6
Increase in valuation allowance, effect of use of loss carry forwards and similar (42.4) (211.3)
Income from affiliates accounted for by the equity method 1.1 8.9
Amortization of consolidation goodwill (0.1) 0.8
Increase (decrease) by tax effect of subsidiaries in North America 1.1 (8.3)
Expenses not deductible for income taxes purposes (0.1) (2.1)
Income (loss) on sales of affiliates 0.1 (2.1)
Other 4.3 (6.1)
Income taxes as a percentage of (loss) gain before income taxes
and minority interests 4.3 (178.6)