MITSUBISHI ESTATE Annual Report 2014

The required contribution to defined contribution plans by the consolidated subsidiaries for the year ended March 31, 2014 is ¥234 million ($2,305 thousand).For the year ended March 31, 2013Millions of yenRetirement benefit obligation¥(108,134)Plan assets at fair value80,940Unfunded retirement benefit obligation(27,194)The net retirement benefit obligation at transition of the accounting standards(116)Unrecognized actuarial loss19,408Unrecognized prior service cost(155)Net amounts recognized in the consolidated balance sheets(8,058)Prepaid pension expenses8,845Accrued employees’ retirement benefits¥ (16,903)* The accrued employees’ retirement benefits recognized by Rockefeller Group, Inc., a consolidated subsidiary, in the amount of ¥232 million at March 31, 2013 was included in “Other current liabilities.”The components of expenses related to the pension and severance plans for the years ended March 31, 2013 were as follows:Millions of yenService cost¥ 4,437Interest cost2,116 Expected return on plan assets(1,654)Amortization of net retirement benefit obligation at transition3 Amortization of actuarial loss1,611 Other746 Total¥ 7,261The assumptions used in accounting for the pension and severance plans for the years ended March 31, 2013 were as follows:Discount rates1.0 – 4.6%Expected rates of return on plan assets0.5 – 7.5%8 Income TaxesIncome taxes in Japan applicable to the Company and its domestic consolidated subsidiaries consist of corporation tax, inhabitants’ taxes and enterprise tax which, in the aggregate, resulted in a statutory tax rate of 38.01% for the year ended March 31, 2014 and 2013. Income taxes of the foreign consolidated subsidiaries are based generally on the tax rates applicable in their countries of incorporation.The effective tax rates reflected in the consolidated statements of income for the years ended March 31, 2014 and 2013 differ from the statutory tax rate for the following reasons:20142013Statutory tax rate—38.01%Increase (decrease) in income taxes resulting from:Change in valuation allowance—(17.68)Different tax rates applied—(0.28)Revenues deductible for income tax purposes—(0.74)Expenses not deductible for income tax purposes—2.99 Undistributed earnings of affiliates—0.26 Equity income—(0.33)Reversal of temporary differences associated with investment in affiliates—(19.44)Other—0.57 Effective tax rates—3.36%* Disclosure of the reconciliation of the statutory tax rate and the effective tax rate for the year ended March 31, 2014 has been omitted since the difference is less than 5% of the statutory tax rate.ANNUAL REPORT 201463