Mitsubishi 2012 Annual Report Download - page 46

The obligations secured by such collateral at March 31, 2012
and 2011 consisted of the following:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2012 2011 2012
Short-term loans payable ¥ 36,640 ¥ 52,051 $ 445,801
Current portion of long-
term debt 51,567 16,467 627,418
Long-term debt 47,790 55,827 581,466
¥135,998 ¥124,347 $1,654,686
8. 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 pre-
ferred 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, 2012.
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.
9. Contingent Liabilities
Loan guarantees given in the ordinary course of business amounted
to ¥2,049 million ($24,932 thousand) and ¥2,862 million at March
31, 2012 and 2011, respectively. Agreements similar to guarantees
given in the ordinary course of business amounted to ¥5,434 million
($66,116 thousand) and ¥9,198 million at March 31, 2012 and
2011, respectively.
10. Selling, General and Administrative Expenses
Selling, general and administrative expenses for the years ended
March 31, 2012 and 2011 consisted of the following:
(In millions of yen)
(In thousands
of U.S. dollars)
For the years ended March 31,
2012 2011 2012
Advertising and promotion
expenses ¥ 62,314 ¥ 63,794 $ 758,170
Freightage expense 44,213 42,918 537,938
Allowance for doubtful
accounts (1,620) —(19,720)
Directors’ compensations,
salaries and allowances 58,731 56,574 714,578
Pension expenses 3,943 4,600 47,985
Depreciation 8,864 10,395 107,848
Research and development
expenses 34,996 27,664 425,798
Other 44,908 43,394 546,403
Total ¥256,350 ¥249,343 $3,119,002
11. Other Gain (Loss), Net
Other gain (loss), net for the years ended March 31, 2012 and 2011
consisted of the following:
(In millions of yen)
(In thousands
of U.S. dollars)
For the years ended March 31,
2012 2011 2012
Equity in earnings of affiliates ¥ 5,932 ¥ 5,914 $ 72,185
Foreign exchange gains
(losses) 2,418 8,800 29,425
Litigation expenses (851) (2,422) (10,354)
Gain (loss) on sales and
retirement of property,
plant and equipment, net (1,807) (669) (21,989)
Reversal of allowance for
doubtful accounts —655 —
Gain on sales of subsidiaries
and affiliates’ stocks 400 —4,869
Impairment loss (16,336) (2,977) (198,764)
Early retirement expense —(17) —
Environmental expenses (10) (6) (129)
Loss on adjustment for
changes of accounting
standard for asset
retirement obligations —(3,031) —
Loss on disaster (1,525) (2,365) (18,565)
Other (1,071) (2,930) (13,034)
Total ¥(12,851) ¥ 948 $(156,358)
MITSUBISHI MOTORS CORPORATION
Annual Report 2012
44