Mitsubishi 2015 Annual Report Download - page 53

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 flows with a 6% discount rate for the year
ended March 31, 2015 and 2014, respectively; and net realizable
value, which is based on an appraisal value obtained from a profes-
sional real estate appraiser or calculated on a reasonable basis by
using the estate tax valuations through land assessments and similar
methods. The recoverable value of the assets being idle is measured
with their net sale value and that of the idle assets which are consid-
ered substantially difficult to be sold is estimated to be zero.
Loss on impairment of fixed assets amounted to ¥20,145 million
($167,639 thousand) and consisted of ¥4,190 million ($34,872
thousand) from buildings and structures, ¥6,501 million ($54,106
thousand) from tools, furniture and fixtures, ¥6,084 million
($50,634 thousand) from machinery and equipment, ¥2,576 million
($21,438 thousand) from land, and ¥791 million ($6,587 thousand)
from other assets for the year ended March 31, 2015. Loss on
impairment of fixed assets amounted to ¥6,902 million and con-
sisted of ¥1,596 million from buildings and structures, ¥159 million
from tools, furniture and fixtures, ¥4,215 million from machinery
and equipment, ¥867 million from land and ¥64 million from other
assets for the year ended March 31, 2014.
5. Investments
Other securities at March 31, 2015 and 2014 were as follows:
(In millions of yen)
March 31, 2015
Carrying
amount
Acquisition
cost
Unrealized
gains
Unrealized
(losses)
Other securities:
Securities with
market value ¥21,151 ¥9,226 ¥11,925 ¥(0)
Total ¥21,151 ¥9,226 ¥11,925 ¥(0)
(In thousands of U.S. dollars)
March 31, 2015
Carrying
amount
Acquisition
cost
Unrealized
gains
Unrealized
(losses)
Other securities:
Securities with
market value $176,013 $76,780 $99,234 $(1)
Total $176,013 $76,780 $99,234 $(1)
(In millions of yen)
March 31, 2014
Carrying
amount
Acquisition
cost
Unrealized
gains
Unrealized
(losses)
Other securities:
Securities with
market value ¥18,572 ¥9,150 ¥9,422 ¥(0)
Total ¥18,572 ¥9,150 ¥9,422 ¥(0)
Proceeds from sales of other securities and the corresponding
gross gains and losses that are included in other gain (loss), net in
the accompanying consolidated statements of income for the years
ended March 31, 2015 and 2014 were as follows:
(In millions of yen)
(In thousands
of U.S. dollars)
For the years ended March 31,
2015 2014 2015
Proceeds ¥53 ¥225 $443
Gross gains 12 205 107
Gross losses (0) —(3)
No notes are provided for losses recognized on the impairment
of securities, as the amount is considered immaterial.
6. Accounts Payable – Other and Accrued Expenses
Accounts payable – other and accrued expenses at March 31, 2015
and 2014 were as follows:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2015 2014 2015
Accrued expenses and
accounts payable ¥122,128 ¥113,893 $1,016,297
Allowance for product
warranties 34,108 31,993 283,831
¥156,236 ¥145,887 $1,300,128
MITSUBISHI MOTORS CORPORATION
Annual Report 2015 51