Mitsubishi 2011 Annual Report Download - page 51

14. Cash Flow Information
Cash and cash equivalents at March 31, 2011 and 2010 consisted
of the following:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2011 2010 2011
Cash and bank deposits ¥317,097 ¥264,323 $3,813,562
Time deposits with maturities
of more than three months (632) (869) (7,612)
Cash and cash equivalents ¥316,464 ¥263,453 $3,805,950
Interest paid less interest received and dividends received
included in other within operating activities in the consolidated
statements of cash flows for the years ended March 31, 2011
and 2010 amounted to a net expense of ¥8,242 million ($99,125
thousand) and ¥10,814 million, respectively. Income taxes paid
included in other within operating activities in the consolidated
statements of cash flows for the years ended March 31, 2011 and
2010 amounted to ¥8,079 million ($97,161 thousand) and ¥5,006
million, respectively.
Purchases of property, plant and equipment within investing
activities in the consolidated statements of cash flows for the years
ended March 31, 2011 and 2010 include payments for the acquisi-
tion of lease vehicles of ¥9,882 million ($118,850 thousand) and
¥5,098 million, respectively.
Proceeds from sales of property, plant and equipment within
investing activities in the consolidated statements of cash flows for
the years ended March 31, 2011 and 2010 include proceeds from
the sale of lease vehicles of ¥7,282 million ($87,586 thousand) and
¥5,416 million, respectively.
Changes in finance receivables within operating activities in the
consolidated statements of cash flows for the years ended March
31, 2011 and 2010 are primarily the net of payments amounting
to ¥130,750 million ($1,572,469 thousand) and ¥98,447 million,
respectively, and proceeds from collections amounting to ¥111,365
million ($1,339,330 thousand) and ¥82,849 million, respectively.
15. Leases
As lessee
(1) Finance lease transactions that do not involve transfer of own-
ership to the lessee
(a) Description of the leased assets:
Property, plant and equipment
Leased assets principally include, but are not limited to,
production facilities for the automobile business (“Machinery
and equipment (net)” and “Tool, furniture and fixtures
(net)”).
(b) Depreciation method of leased assets
Leased assets under finance leases that do not involve trans-
fer of ownership to the lessee, are depreciated using the
straight line method based on the contract term of the lease
agreement. If the guaranteed residual value is determined
in the lease agreement, the said guaranteed residual value
is deemed as the residual value of such leased assets. If the
residual value is not determined, it is deemed to be zero.
(2) Operating lease transactions
Future minimum lease payments required under non-cancellable
operating lease transactions entered into by MMC and its
consolidated subsidiaries at March 31, 2011 and 2010 were
as follows:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2011 2010 2011
Due within 1 year ¥1,349 ¥1,680 $ 16,235
Due after 1 year 7,740 7,081 93,095
Total ¥9,090 ¥8,761 $109,330
As lessor
Future minimum lease revenues from non-cancellable operating
lease transactions entered into by MMC and its consolidated sub-
sidiaries as lessor at March 31, 2011 and 2010 were as follows:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2011 2010 2011
Due within 1 year ¥ 4,618 ¥ 8,502 $ 55,547
Due after 1 year 6,034 3,909 72,578
Total ¥10,653 ¥12,412 $128,125
16. Financial Instruments
For the year ended March 31, 2011 and 2010
Overview of financial instruments
(a) Our policy to manage financial instruments
The Group’s capital management policy is to limit its investments to
low-risk financial products and to obtain its required funds mainly
through bank borrowings. We use derivative instruments to hedge
interest rate, foreign currency and similar risks, and we do not enter
into any speculative transactions.
(b) Nature and risks of financial instruments and our risk
management structure
Trade receivables, which include notes receivable and accounts
receivable, are exposed to the credit risk of our customers. To man-
age this risk, in accordance with the Group’s credit control rules,
MITSUBISHI MOTORS CORPORATION
Annual Report 2011 49