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78 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
The retirement benefit obligation for MMC and its consolidated subsidiaries’ employees’ defined benefit plans at
March 31, 2006 and 2005 are summarized as follows:
In thousands of
In millions of yen U.S. dollars
2006 2005 2006
Retirement benefits obligation ¥(187,638) ¥(173,805) $(1,597,333)
Pension plan assets at fair value 66,251 45,628 563,983
Unfunded status (121,387) (128,177) (1,033,350)
Unrecognized actuarial losses 10,236 20,362 87,141
Unrecognized prior service costs 12,040 11,449 102,500
Net recognized retirement benefits obligation (99,110) (96,365) (843,708)
Prepaid pension premiums 3,677 2,929 31,305
Accrued retirement benefits ¥(102,787) ¥ (99,295) $ (875,013)
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 ¥9,529 million ($81,125 thousand)
and ¥3,708 million at March 31, 2006 and 2005, respectively.
Some of the consolidated subsidiaries adopt the simplified method for the calculation of retirement
benefits obligation.
Pension expenses for MMC and its consolidated subsidiaries’ employees’ retirement defined benefit plans for the
years ended March 31, 2006 and 2005 are as follows:
In thousands of
In millions of yen U.S. dollars
2006 2005 2006
Service cost ¥ 9,444 ¥ 9,086 $ 80,395
Interest cost 4,351 4,803 37,046
Expected return on plan assets (3,267) (2,158) (27,816)
Amortization of actuarial losses 3,102 781 26,414
Amortization of prior service costs 716 708 6,098
Others —428 —
Pension expenses ¥14,347 ¥13,650 $122,137
In addition to the above pension expenses, additional retirement benefits of ¥3,183 million ($27,101 thou-
sand) and ¥16,283 million were paid and recorded as other loss, net during the years ended March 31, 2006
and 2005, respectively.
Pension expenses of consolidated subsidiaries that adopt the simplified method are included in service cost.
20. Income Taxes
MMC and its domestic consolidated subsidiaries are subject to corporate, resident and enterprise taxes based on
their taxable income. Income taxes of the foreign consolidated subsidiaries are generally calculated based on the tax
rates applicable in their countries of incorporation. The consolidated tax payment system is applied at March 31,
2006 and 2005.