Mitsubishi 2010 Annual Report Download - page 57

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Pension expenses for MMC and its consolidated subsidiaries’ employees’ retirement defined benefit plans for the years ended
March 31, 2010 and 2009 consisted of the following:
In millions of yen
In thousands of
U.S. dollars
2010 2009 2010
Service cost
¥ 7,804 ¥ 8,668 $ 83,886
Interest cost
4,372 4,793 46,991
Expected return on plan assets
(2,841) (3,637) (30,536)
Amortization of actuarial losses
4,840 3,103 52,025
Amortization of prior service costs
(595) 260 (6,401)
Others
–101 –
Pension expenses
¥13,580 ¥13,290 $145,965
In addition to the pension expenses above, additional retirement benefits of ¥1,168 million ($12,557 thousand) and ¥8,832 million
were paid and recorded as other gain (loss), net for the years ended March 31, 2010 and 2009, respectively.
Pension expenses of consolidated subsidiaries, which adopt the simplified method, are included in the service costs.
18. 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, 2010 and 2009.
The effective tax rates reflected in the accompanying consolidated statements of operations for the year ended March 31, 2010
differ from the statutory tax rate for the following reasons:
(%)
2010 2009
Statutory income tax rate for MMC
40.2
Due to loss before income
taxes and minority inter-
ests, the information is
omitted from the notes.
Equity in earnings of affiliates
(15.8)
Dividends received deduction
(3.2)
Difference in tax rate of overseas subsidiaries and others
15.8
Income taxes as a percentage of income before income taxes and minority interests
37.0
The significant components of deferred tax assets and liabilities as of March 31, 2010 and 2009 consisted of the following:
In millions of yen
In thousands of
U.S. dollars
2010 2009 2010
Deferred tax assets:
Net operating loss carry forward
¥ 253,602 ¥ 212,748 $ 2,725,731
Accrued retirement benefits
45,641 46,559 490,556
Allowance for doubtful accounts
6,044 5,916 64,971
Allowance for product warranties
11,352 14,525 122,015
Accounts payable—warranties
4,724 7,812 50,773
Fixed assets (incl. impairment losses)
33,007 38,152 354,767
Others
59,230 61,766 636,618
Less valuation allowance
(388,634) (349,819) (4,177,066)
Total deferred tax assets
24,968 37,661 268,366
Deferred tax liabilities:
Reserves under the Special Taxation Measures Law
(323) (380) (3,473)
Unrealized holding gain on securities
(3,663) (803) (39,370)
Fair value adjustments relating to land
(4,511) (4,557) (48,492)
Accelerated depreciation in overseas consolidated subsidiaries
(13,084) (23,678) (140,631)
Others
(16,069) (17,185) (172,714)
Total deferred tax liabilities
(37,651) (46,605) (404,683)
Net deferred tax liabilities
¥ (12,682) ¥ (8,944) $ (136,317)
55
MITSUBISHI MOTORS CORPORATION Annual Report 2010MITSUBISHI MOTORS CORPORATION Annual Report 2010