Mitsubishi 2008 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2008 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 88

  • 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
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

69
annual report 2008 mitsubishi motors corporation
Pension expenses for MMC and its consolidated subsidiaries’ employees’ retirement defined benefit plans for the years ended March
31, 2008 and 2007 consisted of the following:
In millions of yen
In thousands of
U.S. dollars
2008 2007 2008
Service cost ¥ 9,265 ¥ 9,437 $ 92,479
Interest cost 4,724 4,644 47,151
Expected return on plan assets (4,079) (3,686) (40,721)
Amortization of actuarial losses 2,335 2,712 23,309
Amortization of prior service costs 692 66 6,912
Others 1,871 604 18,681
Pension expenses ¥14,809 ¥13,778 $147,813
In addition to the above pension expenses, additional retirement benefits of ¥10,154 million ($101,354 thousand) and ¥3,073 million
were paid and recorded as other gain (loss), net for the years ended March 31, 2008 and 2007, respectively.
Pension expenses of consolidated subsidiaries, which adopt the simplified method, are included in service cost.
Effective for the year ended March 31, 2008,
Partial Amendments to Accounting Standard for Retirement Benefits (Part2)
(Account-
ing Standards Board of Japan (ASBJ) statement No. 14, May 15, 2007) has been adopted.
16. 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 incor-
poration. The consolidated tax payment system is applied at March 31, 2008 and 2007.
The effective tax rates reflected in the accompanying consolidated statements of operations for the year ended March 31, 2008 differ
from the statutory tax rate for the following reasons:
(%)
2008 2007
Statutory income tax rate for MMC 40.3 40.3
Change in valuation allowance, effect of
using loss carry forwards and similar items (13.5) 18.5
Dividends received (exclusion from gross income) (0.1) (5.7)
Others (0.8) 0.2
Income taxes as a percentage of income before income taxes
and minority interest 25.9 53.3