Brother International 2011 Annual Report Download - page 51

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Brother Annual Report 2011
21. Subsequent Events
1) Appropriation of Retained Earnings
The following appropriation of retained earnings at March 31, 2011 was approved at the Company’s board of directors’ meeting held on May
13, 2011:
Millions of Yen
Thousands of
U.S. Dollars
Year-end cash dividends of ¥12 ($0.15) per share ¥ 3,225 $ 38,855
2) The signing on the construction of new manufacturing facility in Xian, China
On April 28, 2011, Xian government and the Company signed the agreement on the construction of new manufacturing facility in Xian, China.
The Company is aggregating the Group’s manufacturing facilities of the industrial sewing machines and machine tools which are currently
located in the several areas in Xian, China into a new single factory by 2013 in order to reinforce the manufacturing operations and business
efficiency, with aims to meet growing demand in the Chinese market.
The Group started the manufacturing of Industrial sewing machines in China as a joint venture in Xian, 1993. In 2001, the Company estab-
lished a wholly owned subsidiary in Xian. In April of 2010, the Company merged these two companies and started operation as Brother
Machinery Xian Co., Ltd. (hereinafter BMX). In addition to the industrial sewing machine, BMX started manufacturing machine tools at another
factory in fall of 2010. Currently BMX is manufacturing both industrial sewing machines and machine tools at three factories.
The demand of Chinese market for both industrial sewing machines and machine tools are expected to grow. In order to respond to this
growing demand and to increase the efficiency of business, the Company is aggregating all factories in Xian into a single factory so that it can
increase production volume business and reinforce the manufacturing of both businesses.
Xian city officials and representatives of the Company participated at a contract signing ceremony for this project on April 28, 2011 in Xian
city. There is no significant impact on profits and losses from this signing.
Outline of the New Factory
Location: Hi-tech industries Development Zone, Xian, Shaanxi, China
No. of Employees: Approximately twelve hundred employees (as of April, 2013)
Total Investment: Approximately 5.3 billion yen
Start date for construction: January 2012
Date of completion: January 2013
Date of start of production: April 2013
Property Space: 79,920m2
Floor space: 51,100m2
Structure / Scale: Steel construction - 3 stories
22. Segment Information
For the year ended March 31, 2011 and 2010
In March 2008, the ASBJ revised ASBJ Statement No.17, “Accounting Standard for Segment Information Disclosures” and issued ASBJ Guidance
No.20, “Guidance on Accounting Standard for Segment Information Disclosures.” Under the standard and guidance, an entity is required to report
financial and descriptive information about its reportable segments. Reportable segments are operating segments or aggregations of operating
segments that meet specified criteria. Operating segments are components of an entity about which separate financial information is available
and such information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing perfor-
mance. Generally, segment information is required to be reported on the same basis as is used internally for evaluating operating segment perfor-
mance and deciding how to allocate resources to operating segments. This accounting standard and the guidance are applicable to segment
information disclosures for the fiscal years beginning on or after April 1, 2010.
The segment information for the year ended March 31, 2010 under the revised accounting standard is also disclosed hereunder as required.
1. Description of reportable segments
The Group’s reportable segments are those for which separately financial information is available and regular evaluation by the Company’s man-
agement is being performed in order to decide how resources are allocated among the Group. The Group consists of the four segments “Printing
& Solutions,” “Personal & Home,” “Machinery & Solution” and “Network & Contents,” in which the Group formulates and implements