Mitsubishi 2015 Annual Report Download - page 65

The fair value of plan assets, by major category, as a percentage
of total plan assets as of March 31, 2015 and March 31, 2014 are
as follows:
March 31,
2015 2014
Bonds 61% 49%
Stocks 27 36
Cash on hand and in banks 45
Life insurance company account 55
Other 35
Total 100% 100%
The expected return on assets has been estimated based on the
anticipated allocation to each asset class and the expected long-
term returns on assets held in each category.
The assumptions used in accounting for the above plans were
as follows:
March 31,
2015 2014
Discount rates Domestic
subsidiaries 0.3% ~ 0.8% 0.9% ~ 2.0%
Foreign
subsidiaries 2.4% ~ 5.4% 3.7% ~ 5.2%
Expected rates
of return on
plan assets
Domestic
subsidiaries 0.7% ~ 4.0% 0.7% ~ 4.0%
Foreign
subsidiaries 2.4% ~ 7.2% 4.1% ~ 8.0%
Rates of
compensation
increase
Domestic
subsidiaries 1.0% ~ 5.3% 1.0% ~ 5.3%
Foreign
subsidiaries 2.0% ~ 6.5% 2.0% ~ 6.5%
Defined contribution plans
Contributions for defined contribution plans (including multi-em-
ployer pension plans that accounted as a defined contribution plan)
for the year ended March 31, 2015 and 2014 were ¥2,896 million
($24,099 thousand) and ¥2,696 million, respectively.
Information of multi-employer pension plans which the required
contribution has been accounted for as retirement benefit expenses
were as follows at March 31, 2014 and 2013:
(In millions of yen)
March 31,
2014 2013
Pension Plan assets ¥27,789 ¥26,943
Total amount of actuarial pension
obligations and the minimum reserve
based on the pension funding calculation 28,594 26,319
Difference ¥ (805) ¥ 624
The above difference was mainly due to unrecognized prior
service costs of ¥1,064 million and ¥1,128 million at March 31,
2014 and 2013. Unrecognized prior service costs are amortized by
the straight line method over periods of 20 years. The approximate
ratio of the Group’s share of accumulated contributions in the
multi-employee plan obligation is 57.3% and 57.2% as of March
31, 2014 and 2013. This ratio does not necessarily match the
amount of the Group’s share of the actuarially estimated pension
benefit obligation.
18. Income Taxes
MMC and its domestic consolidated subsidiaries are subject to cor-
porate, resident and enterprise taxes based on their taxable income.
Income taxes of the foreign consolidated subsidiaries are generally
calculated based on the tax rates applicable in their countries of
incorporation. The consolidated tax payment system is applied in
Japan for the years ended March 31, 2015 and 2014.
The effective tax rates reflected in the accompanying consolidat-
ed statements of income for the years ended March 31, 2015 and
2014 differ from the statutory tax rates for the following reasons:
(%)
For the years ended
March 31,
2015 2014
Statutory income tax rate for MMC 35.2 37.6
Equity in earnings of affiliates (2.9) (2.4)
Dividends received deduction (0.9) (0.5)
Difference in tax rate of overseas
subsidiaries and others (4.5) (9.0)
Effect of valuation allowance changes (19.6) (17.2)
Income taxes as a percentage of income
before income taxes and minority interests 7.3 8.6
MITSUBISHI MOTORS CORPORATION
Annual Report 2015 63