Mitsubishi 2013 Annual Report Download - page 54

MITSUBISHI MOTORS CORPORATION
Annual Report 2013
52
The effective tax rates reflected in the accompanying consolidat-
ed statements of income for the years ended March 31, 2013 and
2012 differ from the statutory tax rate for the following reasons:
(%)
For the years ended March 31,
2013 2012
Statutory income tax rate for MMC 37.6 Information is
not presented
as the difference
between the
statutory tax rate
and the effective
tax rate was less
than 5/100 of the
statutory tax rate.
Equity in earnings of affiliates (2.6)
Dividends received deduction 1.3
Difference in tax rate of overseas
subsidiaries and others 3.8
Income taxes as a percentage of
income before income taxes and
minority interests 40.0
The significant components of deferred tax assets and liabilities
as of March 31, 2013 and 2012 consisted of the following:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2013 2012 2013
Deferred tax assets:
Net operating losses
carried forward ¥ 170,449 ¥ 153,845 $ 1,812,327
Accrued retirement benefits 40,304 40,054 428,543
Allowance for doubtful
accounts 3,494 3,025 37,158
Allowance for product
warranties 9,713 9,728 103,277
Accounts payable
– warranties 11,577 3,953 123,094
Fixed assets
(incl. impairment losses) 31,159 29,774 331,304
Others 34,840 55,294 370,442
Less valuation allowance (271,377) (269,565) (2,885,458)
Total deferred tax assets 30,160 26,109 320,689
Deferred tax liabilities:
Reserves under the Special
Taxation Measures Law (244) (283) (2,596)
Unrealized holding gain on
securities (2,783) (6,115) (29,596)
Fair value adjustments
relating to land (3,840) (3,847) (40,830)
Accelerated depreciation
in overseas consolidated
subsidiaries (17,411) (13,899) (185,129)
Others (28,437) (18,323) (302,367)
Total deferred tax liabilities (52,716) (42,469) (560,520)
Net deferred tax liabilities ¥ (22,556) ¥ (16,359) $ (239,830)
Deferred tax assets and liabilities at March 31, 2013 and 2012 are
included in the accompanying consolidated balance sheets as follows:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2013 2012 2013
Current assets ¥ 3,543 ¥ 1,963 $ 37,680
Non-current assets 4,349 8,889 46,249
Current liabilities (346) (238) (3,684)
Non-current liabilities (30,103) (26,973) (320,076)
Net deferred tax liabilities ¥(22,556) ¥(16,359) $(239,830)
19. Asset Retirement Obligations
(a) Overview
MMC and its consolidated subsidiaries have obligations associated
with the restoration and removal of tangible fixed assets at the end
of lease terms pertaining to certain property lease agreements, and
have obligations associated with removal of hazardous substances.
(b) Method for measuring the amount of asset retirement
obligations
The useful lives of assets from acquisition or construction date has
been estimated ranging from 2 years to 59 years, and the amount
of asset retirement obligations has been measured using the dis-
count rates ranging from 0.1 % to 4.4%.
(c) Changes in the amount of asset retirement obligations
For the year ended March 31, 2013, the carrying amount of asset
retirement obligations was increased by ¥622 million ($6,615
thousand) as it has become clear that estimated asset retirement
obligations would exceed the original estimate due to reassessment
of expected removal costs and the useful lives of assets. Further,
the carrying amount of asset retirement obligations was decreased
by ¥105 million ($1,125 thousand) as it has become clear that the
expected removal costs required at the time of retirement would
be less than the original estimate. Changes in the amount of asset
retirement obligations for the years ended March 31, 2013 and
2012 were as follows: