Sharp 2015 Annual Report Download - page 46

10. Collateral Assets and Liabilities Secured by the Collateral 11. Contingent Liabilities
Collateral assets and liabilities secured by the collateral as of March 31, 2014 and 2015 were as follows:
(1) Collateral Assets
(1) Guarantee Liabilities
Time deposits of ¥19,799 million as of March 31, 2014 and ¥21,335 million as of March 31, 2015 is
pledged as collateral for opening a standby letter of credit.
¥886 million investments in nonconsolidated subsidiaries and affiliates as of March 31, 2014, are
pledged as collateral for ¥18,796 million long-term borrowings of affiliates. In addition, certain shares
of the consolidated subsidiary which are subject to elimination through intra-company transactions are
pledged as collateral of short-term borrowings.
(2) Liabilities Secured by the Collateral
(2) Matters related to inventory purchase commitments on raw materials (polysilicon) of
solar cells
As described in “Notes to the Consolidated Financial Statements, 1. Summary of Significant Accounting
and Reporting Policies, (k) Valuation reserve for inventory purchase commitments,” a valuation reserve
for inventory purchase commitments is set aside with respect to purchase contracts for raw materials
(polysilicon) for solar cells. Some of the purchase contracts for raw materials (polysilicon) at the year-end
prohibit their resale.
Therefore, potential future losses may occur if raw materials (polysilicon) are no longer used. The ag-
gregate amount of purchase contracts prohibiting resale of raw materials after deducting the valuation
reserve for inventory purchase commitments is ¥38,795 million.
(3) Matters related to long-term electricity and others supply contracts at production basis
The Company entered into long-term contracts with several suppliers with respect to electricity and
others necessary to produce solar cells at Sakai Factory. The total amount of future minimum payments
under such contracts at the end of this consolidated fiscal year was ¥43,915 million (the remaining term
is from 2.5 years to 14 years). Each contract shall not be terminated before expiration.
Although such long-term electricity and other supply contracts give the Company 480 mega-watt
production capacity of solar cells per year, the actual production quantity currently sits at around 160
mega-watt per year. Such long-term contracts cause more expensive production cost in the Energy
Solution Business. However, it is difficult to estimate the amount of loss related to such contracts because
the prevailing market price of electricity and others at Sakai Factory, procurement costs of electricity and
others not depending on such contracts and appropriate production costs based on such market price
and procurement costs cannot be determined.
Yen
(millions)
2014 2015
Time deposits ¥ 21,600 ¥ 23,429
Restricted cash 952 —
Notes and accounts receivable
Trade 78,638 60,674
Nonconsolidated subsidiaries and affiliates 1,400 8,677
Inventories 176,111 214,763
Land 86,704 83,075
Buildings and structures 223,152 162,561
Machinery and equipment 32,693 13,610
Investments in securities 33,591 28,735
Investments in nonconsolidated subsidiaries and affiliates 886 —
¥ 655,727 ¥ 595,524
Yen
(millions)
2014 2015
Loans guaranteed ¥ 19,874 ¥ 17,161
Trade payables guaranteed 150 53
¥ 20,024 ¥ 17,214
Yen
(millions)
2014 2015
Short-term borrowings ¥ 339,475 ¥ 477,648
Long-term debt 159,254 1,044
¥ 498,729 ¥ 478,692
Notes to the Consolidated Financial Statements
44
Notes to the Consolidated
Financial Statements
Financial Section
Segment Outline
Medium-Term Management Plan
for Fiscal 2015 through 2017
Investor Information
Directors, Audit & Supervisory Board
Members and Executive Officers
Risk Factors
Corporate Governance
Contents
Corporate Social
Responsibility (CSR)
Message to our Shareholders
Fiscal 2014 Review by
Product Group
Financial Highlights
SHARP Annual Report 2015
Consolidated
Subsidiaries
Independent Auditor’s
Report
Consolidated Statements of
Cash Flows
Consolidated Statements of
Changes in Net Assets
Consolidated Statements of
Comprehensive Income
Consolidated Statements of
Operations
Consolidated Balance Sheets
Financial Review
Five-Year Financial Summary