Mitsubishi 2014 Annual Report Download - page 50

8. Net Assets
The Company Act provides that an amount equal to 10% of the
amount to be disbursed as a distribution of earnings should be ap-
propriated to a 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 Company Act.
MMC had 3,312,000 authorized shares of convertible preferred
stock and had 396,193 shares outstanding that were classified as
class A and 4 series classified as class G at March 31, 2013.
In the year ended March 31, 2014, MMC decreased capital stock
through a transfer to capital surplus, and decreased capital surplus
immediately thereafter to offset the accumulated deficit brought
forward in accordance with the Company Act.
In the year ended March 31, 2014, MMC issued 217,750,000
shares of common stock through a public offering and 20,419,700
shares of common stock through a third-party allotment for con-
sideration of ¥266,750 million, and this was recorded as increases
in capital stock and capital surplus of equal amounts. MMC then
decreased capital stock and transferred to capital surplus. MMC
then purchased certain of its preferred stock using part of the
proceeds of the above mentioned common stock issue and subse-
quently retired such treasury stock. In addition, in the year ended
March 31, 2014, MMC issued common stock on the conversion of
all the outstanding preferred stock, and as a result, there was no
preferred stock outstanding at March 31, 2014.
Dividends
Dividends of which cut off date is in this fiscal year and effective
date is in the following fiscal year
(a) Approved by: The 45th Ordinary General Meeting of
Shareholders to be held on June 25, 2014.
(b) Total dividends: ¥24,586 million ($238,884 thousand)
(c) Dividend per share: ¥25 (of which ordinary dividend is ¥15 and
special dividend is ¥10)
(d) Cut off date: March 31, 2014
(e) Effective date: June 26, 2014
9. Contingent Liabilities
Loan guarantees given in the ordinary course of business amounted
to ¥14,065 million ($136,666 thousand) and ¥14,325 million at
March 31, 2014 and 2013, respectively. Agreements similar to
guarantees given in the ordinary course of business amounted to
¥3,431 million at March 31, 2013.
10. Selling, General and Administrative Expenses
Selling, general and administrative expenses for the years ended
March 31, 2014 and 2013 consisted of the following:
(In millions of yen)
(In thousands
of U.S. dollars)
For the years ended March 31,
2014 2013 2014
Advertising and promotion
expenses ¥106,143 ¥ 75,225 $1,031,318
Freightage expense 56,595 43,252 549,898
Allowance for doubtful
accounts (1,144) 232 (11,122)
Directors’ compensations,
salaries and allowances 64,515 60,761 626,851
Retirement benefit expenses 5,155 5,080 50,094
Depreciation 9,129 8,795 88,709
Research and development
expenses 36,714 34,817 356,732
Other 49,687 44,422 482,779
Total ¥326,797 ¥272,589 $3,175,261
11. Other Gain (Loss), Net
Other gain (loss), net for the years ended March 31, 2014 and 2013
consisted of the following:
(In millions of yen)
(In thousands
of U.S. dollars)
For the years ended March 31,
2014 2013 2014
Equity in earnings of affiliates ¥ 7,373 ¥ 4,853 $ 71,639
Foreign exchange gains
(losses) 16,674 30,395 162,013
Share issuance cost (12,639) —(122,804)
Litigation expenses (1,031) (1,538) (10,026)
Gain (loss) on sales and
retirement of property,
plant and equipment, net (4,038) (5,032) (39,238)
Gain on sales of investment
securities 205 11,533 1,994
Gain on sales of subsidiaries
and affiliates’ stocks 802 —7,796
Loss on sales of subsidiaries
and affiliates’ stocks (185) (30,188) (1,804)
Impairment loss (6,902) (793) (67,069)
Other (3,508) (1,483) (34,091)
Total ¥ (3,251) ¥ 7,747 $ (31,591)
MITSUBISHI MOTORS CORPORATION
Annual Report 2014
48