Mitsubishi 2012 Annual Report Download - page 43

Impairment losses were recognized in the following asset groups
for the years ended March 31, 2012 and March 31, 2011:
(In millions
of yen)
(In thousands
of U.S. dollars)
For the year ended March 31, 2012
Location Application Assets Impairment loss amount
Gifu, Gifu
and others
(28 sites)
Assets used
in sales
operations
Buildings, land
and others ¥ 678 $ 8,251
Kawasaki,
Kanagawa
and others
(18 sites) Idle assets
Machinery and
equipment,
vehicles and
others 1,587 19,319
The
Netherlands
and others
(6sites)
Production
facilities
Buildings,
tools, furniture
and fixture
and others 14,070 171,193
¥16,336 $198,764
(In millions of yen)
For the year ended March 31, 2011
Location Application Assets Impairment loss amount
Yokohama,
Kanagawa
and others
(18 sites)
Assets used
in sales
operations
Land,
buildings and
others ¥ 76
Imabari,
Ehime and
others
(8 sites) Idle assets
Land,
buildings and
others 9
The
Netherlands
and others
(5 sites)
Production
facilities
Machinery and
equipment,
furniture and
fixtures and
others 2,891
¥2,977
The groupings of assets are determined as follows:
Assets used in production are grouped either by manufacturing
plants or by operational sites. Assets used in sales operations are
generally grouped by operational sites. Assets leased to others and
idle assets have their own asset groups.
As a result of the worsening market environment and other
factors, the book value of some of the assets has been reduced to
recoverable value.
The recoverable values of assets have been obtained by compar-
ing and then taking the higher of: value in use, which is determined
by estimating future cash flow with a 4% and 5% discount rate for
the years ended March 31, 2012 and 2011, respectively; and net
realizable value, which is based on an appraisal value obtained from
a professional real estate appraiser or calculated on a reasonable
basis by using the estate tax valuations through land assessments
and similar methods.
Loss on impairment of fixed assets amounted to ¥16,336
million ($198,764 thousand) and consisted of ¥8,052 million
($97,973 thousand) from buildings and structures, ¥3,375 million
($41,074 thousand) from tools, furniture and fixtures, ¥1,250
million ($15,217 thousand) from land and ¥3,657 million ($44,498
thousand) from other assets for the year ended March 31, 2012.
Loss on impairment of fixed assets amounted to ¥2,977 million and
consisted of ¥2,875 million from machinery and equipment and
¥102 million from other assets for the year ended March 31, 2011.
5. Investments
Other securities at March 31, 2012 and 2011 were as follows:
(In millions of yen)
March 31, 2012
Carrying
amount
Acquisition
cost
Unrealized
gains
Unrealized
(losses)
Other securities:
Securities with
market value ¥28,744 ¥10,164 ¥18,592 ¥(11)
Total ¥28,744 ¥10,164 ¥18,592 ¥(11)
(In thousands of U.S. dollars)
March 31, 2012
Carrying
amount
Acquisition
cost
Unrealized
gains
Unrealized
(losses)
Other securities:
Securities with
market value $349,736 $123,665 $226,210 $(139)
Total $349,736 $123,665 $226,210 $(139)
(In millions of yen)
March 31, 2011
Carrying
amount
Acquisition
cost
Unrealized
gains
Unrealized
(losses)
Other securities:
Securities with
market value ¥28,722 ¥10,164 ¥18,564 ¥(6)
Total ¥28,722 ¥10,164 ¥18,564 ¥(6)
MITSUBISHI MOTORS CORPORATION
Annual Report 2012 41