Mitsubishi 2011 Annual Report Download - page 50

9. Net Assets
The Companies Act provides that an amount equal to 10% of the
amount to be disbursed as a distribution of earnings should be ap-
propriated to the legal reserve until the sum of the legal reserve and
capital surplus equals at least 25% of common stock. MMC and its
domestic subsidiaries have provided these amounts in accordance
with the Companies Act.
MMC is authorized to issue 3,312,000 shares of convertible
preferred stock that are classified as Series A, B and G (3 to 4 times
in each series), and has 437,593 shares outstanding at March 31,
2011.
The holders of each series of convertible preferred stock do not
have voting rights, but the holders of Series A and G (except for
Series B) are entitled to preferred stock dividends of ¥50,000 per
share each year after April 2009.
In the event of a residual distribution, MMC would also be
required to distribute residual claims to the holders of each series of
convertible preferred stock by payment of one million yen per share
of preferred stock held, in priority over residual claims of holders of
the rights of ordinary shareholders. No further distribution would be
made.
10. Contingent Liabilities
Loan guarantees given in the ordinary course of business amounted
to ¥2,862 million ($34,420 thousand) and ¥3,235 million at March
31, 2011 and 2010, respectively. Agreements similar to guarantees
given in the ordinary course of business amounted to ¥9,198 mil-
lion ($110,627 thousand) and ¥1,525 million at March 31, 2011
and 2010, respectively.
11. Selling, General and Administrative Expenses
Selling, general and administrative expenses for the years ended
March 31, 2011 and 2010 consisted of the following:
(In millions of yen)
(In thousands
of U.S. dollars)
For the years ended March 31,
2011 2010 2011
Advertising and promotion
expenses ¥ 63,794 ¥ 52,211 $ 767,223
Freightage expense 42,918 24,509 516,157
Provision for allowance for
doubtful accounts —647 —
Directors’ compensations,
salaries and allowances 56,574 56,761 680,394
Pension expenses 4,600 4,645 55,329
Depreciation 10,395 11,869 125,026
Research and development
expenses 27,664 22,479 332,706
Other 43,394 46,937 521,877
Total ¥249,343 ¥220,060 $2,998,715
12. Other Gain (Loss), Net
Other gain (loss), net for the years ended March 31, 2011 and 2010
consisted of the following:
(In millions of yen)
(In thousands
of U.S. dollars)
For the years ended March 31,
2011 2010 2011
Equity in earnings of affiliates ¥ 5,914 ¥ 4,544 $ 71,131
Foreign exchange gains
(losses) 8,800 9,130 105,833
Litigation expenses (2,422) (1,752) (29,137)
Gain on sales of investments
in securities —138 —
Gain (loss) on sales and
retirement of property,
plant and equipment, net (669) 736 (8,047)
Reversal of allowance for
doubtful accounts 655 —7,881
Reversal of loss on liquidation
of subsidiaries and affiliates —1,167 —
Impairment loss (2,977) (214) (35,810)
Early retirement expense (17) (1,168) (207)
Environmental expenses (6) (1,949) (78)
Loss on adjustment for
changes of accounting
standard for asset
retirement obligations (3,031) —(36,462)
Loss on disaster (2,365) —(28,445)
Other (2,930) (1,669) (35,247)
Total ¥ 948 ¥ 8,963 $ 11,409
13. Comprehensive Income
The following table presents components of the consolidated state-
ment of comprehensive income for the year ended March 31, 2010:
(In millions of
yen)
For the years
ended March
31, 2010
Comprehensive income:
Comprehensive income attributable to:
Owners of the parent ¥10,717
Minority interests 2,571
Total ¥13,289
Other comprehensive income:
Valuation difference on available-for-sale securities ¥ 4,308
Deferred gains or losses on hedges (880)
Foreign currency translation adjustment 3,285
Share of other comprehensive income of associates
accounted for using equity method (725)
Total ¥ 5,988
MITSUBISHI MOTORS CORPORATION
Annual Report 2011
48