Square Enix 2005 Annual Report Download - page 39

Download and view the complete annual report

Please find page 39 of the 2005 Square Enix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 64

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64

37
Annual Report 2005
• (April 1, 2002 to March 31, 2003)
Millions of yen
Games Games Mobile Phone Eliminations or Consolidated
(Offline) (Online) Content Publication Others Total unallocated total
I Sales and operating income
Net sales
(1) Sales to outside customers ¥11,912 ¥0,942 ¥1,656 ¥5,920 ¥1,445 ¥21,877 ¥ — ¥21,877
(2) Intersegment sales ————————
Total 11,912 942 1,656 5,920 1,445 21,877 — 21,877
Operating expenses 8,278 1,309 872 4,582 1,197 16,240 1,033 17,274
Operating income (loss) ¥03,634 ¥ (366) ¥0,784 ¥1,337 ¥0,247 ¥05,637 ¥ (1,033) ¥04,603
II Assets, depreciation and
capital expenditures
Assets ¥05,302 ¥0 700 ¥0,580 ¥3,094 ¥0,673 ¥10,351 ¥47,113 ¥57,465
Depreciation 207 69 20 8 44 349 36 386
Capital expenditures 93 59 25 2 74 255 45 301
3. Unallocated operating expenses included in
“Eliminations or unallocated” totaled ¥4,722 mil-
lion. These expenses are related to administrative
departments of the Company.
4. Unallocated assets included in “Eliminations or
unallocated” totaled ¥18,523 million. These assets
are related to administrative departments of the
Company.
The Company used to include cash, deposits
and marketable securities in the “Eliminations or
unallocated” column. However, following the
merger with SQUARE, these have been allocated
to each business segment in order to properly
reflect business substance. As a result, assets
included in Games (Offline) business, Games
(Online) business, Mobile Phone Content busi-
ness, Publication business, and Others business
increased by ¥23,829 million, ¥7,582 million, ¥2,166
million, ¥9,206 million, and ¥3,249 million, respec-
tively, compared with the prior segmentation.
Accordingly, the “Eliminations or unallocated”
column decreased by ¥46,034 million.
5. As explained in “Summary of Significant Account-
ing Policies used in the Preparation of Consolidated
Financial Statements, ”the Company changed the
method for depreciation and amortization of
property and equipment. However, this change
did not have a material impact.
6. Effective from the year ended March 31, 2004, the
Company has partly changed its business segmen-
tation due to the expansion of its business as a
result of a merger with SQUARE. The main changes
are that the computer software business has been
divided into Games (Offline) business, Games
(Online) business, and Mobile Phone Content busi-
ness. In addition, the Company has re-examined
the operations previously included in the other
businesses segment and reclassified them into
appropriate segments in order to more properly
reflect the substance of its business. These changes
did not have material impact on sales, operating
expenses and assets for the year ended March 31,
2004. Business segment information for the year
ended March 31, 2003, restated in accordance
with current fiscal year’s segmentation is as follows: