Epson 2011 Annual Report Download - page 26

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25
27, 2009. Effective in the year under review, therefore, the company changed the method it uses to calculate
segment income and, for comparison purposes, recalculated the previous period's results using the new method.
Segment income in the information-related equipment segment was ¥70,151 million, compared to ¥71,748
million in the previous period. The slight dip came largely because the effects of yen appreciation and price
erosion cancelled out the effects of increased unit shipments of 3LCD projectors and SIDM printers for business
applications and the effects of increased operational efficiency, which reduced logistics and other SG&A
expenses.
Segment income in the electronic devices segment was ¥5,569 million, compared to 1,529 million in the
previous period. Although negatively impacted by yen appreciation and price erosion affecting quartz devices
and HTPS panels, segment income jumped due to a combination of improvement in the semiconductor product
mix, increased gross profit owing to reduced expenses for small- and medium-sized displays, and reduced R&D
and other SG&A expenses.
Segment income in the precision products segment was ¥3,307 million, compared to a ¥1,311 million loss in the
previous period. The rebound in income reflects a rise in gross profit that accompanied revenue growth in
watches, IC handlers, and robots, among other products.
Other segment loss was ¥286 million, compared to a ¥100 million loss in the previous period.
As for adjustments, segment loss was ¥46,032 million, compared to a loss of¥ 53,639 million in the previous
period. The smaller loss was primarily due to the recording of R&D expenses for basic research and new
businesses that do not belong to a reporting segment, as well as to the recording of SG&A expenses, largely
comprised of Head Office expenses, and more rigorous screening of budget expenditures.
Non-operating income and expenses
Non-operating income minus non-operating expenses amounted to a net loss of ¥1,534 million, a ¥2,817 million
improvement from the ¥4,351 million loss in the previous period. The main reason for the improvement is that
the loss on foreign exchange was ¥1,239 million in the year under review, compared to a loss of ¥5,076 million
in the previous period.
Ordinary income
Ordinary income was ¥31,174 million, up ¥17,299 million (124.7%) compared to the previous period.
Extraordinary income and losses
Extraordinary income minus extraordinary loss amounted to a net loss of ¥15,793 million, a ¥1,118 million
increase in loss from the ¥14,675 million recorded in the previous period. The increase in extraordinary loss was
primarily due to a ¥7,269 million impairment loss on business assets in the small- and medium-sized display
business in the previous period, as well as the recording of ¥9,909 million in business structure improvement
expenses associated with the transfer and termination of the small- and medium-sized displays business and a
¥4,755 million loss on disaster, comprising the loss or damage of inventory as a result of the Great East Japan
Earthquake, which combined to negate a ¥2,274 million gain on sales of noncurrent assets from the sale by a
subsidiary of buildings and structures during the year under review.
Income before income taxes and minority interests
Epson thus recorded income before income taxes and minority interests of ¥15,381 million, an increase of
¥16,181 million from the period.
Income taxes
Income taxes decreased by ¥14,018 million to ¥4,971 million. In the previous period, given the taxable income
situation of the domestic group companies presenting a consolidated tax return, the company revised and took a
write-down on deferred tax assets. Conversely, in the fiscal year under review the company increased its deferred
tax assets as it expects financial improvement of Seiko Epson on a non-consolidated basis. The effective tax rate
after the application of deferred tax accounting came to 32.3%.