Mitsubishi 2011 Annual Report Download - page 57

The amortization period for actuarial gains and losses starts
from the subsequent fiscal year and actuarial gains and losses are
amortized by the straight line method over the periods of 5 to 15
years ended March 31, 2011 and 2010. These periods are within
the estimated average remaining service years of the employees.
Unrecognized net obligations and assets at the date of initial
application are amortized within one year.
The retirement benefit obligation for MMC and its consolidated
subsidiaries’ employees’ defined benefit plans at March 31, 2011
and 2010 are summarized as follows:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2011 2010 2011
Retirement benefits obligation
¥(172,469) ¥(171,671) $(2,074,197)
Pension plan assets at fair
value 59,607 57,626 716,864
Unfunded status
(112,862) (114,044) (1,357,333)
Unrecognized actuarial losses
18,525 20,337 222,798
Unrecognized prior service
costs (4,957) (5,651) (59,626)
Net recognized retirement
benefits obligation (99,294) (99,358) (1,194,161)
Prepaid pension premiums
7,626 6,995 91,723
Provision for retirement
benefits ¥(106,921) ¥(106,354) $(1,285,884)
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, 2011 and 2010 consisted of the following:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2011 2010 2011
Service cost ¥ 8,206 ¥ 7,804 $ 98,699
Interest cost 4,312 4,372 51,864
Expected return on plan
assets (3,240) (2,841) (38,969)
Amortization of actuarial
losses 3,462 4,840 41,641
Amortization of prior service
costs (73) (595) (889)
Pension expenses ¥12,667 ¥13,580 $152,345
In addition to the pension expenses above, additional retirement
benefits of ¥17 million ($207 thousand) and ¥1,168 million were
paid and recorded as other gain (loss), net for the years ended
March 31, 2011 and 2010, respectively. Pension expenses of
consolidated subsidiaries, which adopt the simplified method, are
included in the service costs.
19. 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, 2011 and 2010.
The effective tax rates reflected in the accompanying consoli-
dated statements of operations for the year ended March 31,
2011 and 2010 differ from the statutory tax rate for the following
reasons:
(%)
For the years ended
March 31,
2011 2010
Statutory income tax rate for MMC 40.2 40.2
Equity in earnings of affiliates (7.8) (15.8)
Dividends received deduction (2.6) (3.2)
Difference in tax rate of overseas
subsidiaries and others 7.5 15.8
Income taxes as a percentage of income
before income taxes and minority interests 37.3 37.0
MITSUBISHI MOTORS CORPORATION
Annual Report 2011 55