Square Enix 2006 Annual Report Download - page 19

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1 6 1 7
A n n u a l R e p o r t 2 0 0 6
Rental Deposits
Years ended March 31 Millions of yen
Reference:
2005 2006 Change Taito
¥2,863 ¥17,361 ¥14,498 ¥14,443
Claims in Bankruptcy
Years ended March 31 Millions of yen
Reference:
2005 2006 Change Taito
¥— ¥2,240 ¥2,240 ¥2,240
Construction Cooperation Fund
Years ended March 31 Millions of yen
Reference:
2005 2006 Change Taito
¥— ¥2,158 ¥2,158 ¥2,158
Allowance for Doubtful Accounts
Years ended March 31 Millions of yen
Reference:
2005 2006 Change Taito
¥— ¥(4,738) ¥(4,738) ¥(4,738)
Among investments and other assets, rental deposits, claims in
bankruptcy and reorganization proceedings, construction coopera-
tion fund and provision for doubtful accounts all increased owing
to Taito becoming a consolidated subsidiary. Rental deposits and
the construction cooperation fund are mainly related to the lease of
game center facilities. Claims in bankruptcy and reorganization pro-
ceedings are mainly attributable to a claim against Baltec Co., Ltd.,
an equity-method affiliate. Provision for doubtful accounts is mainly
related to reserves provided for receivables from Baltec and rental
deposits for leases of game center facilities.
L ia b ilit ie s
Total Liabilities
Years ended March 31 Millions of yen
Reference:
2005 2006 Change Taito
¥22,103 ¥91,234 ¥69,131 ¥89,323
Total liabilities as of March 31, 2006, amounted to ¥91,234 million,
an increase of ¥69,131 million compared with the previous fiscal
year-end. The major factors contributing to this change are as
follows. (Note: Taito includes payables related to the merger of
¥66,999 million.)
Notes and Accounts Payable
Years ended March 31 Millions of yen
Reference:
2005 2006 Change Taito
¥2,241 ¥12,124 ¥9,882 ¥8,433
Notes and accounts payable increased ¥9,882 million, to ¥12,124
million, mainly owing to Taito becoming a consolidated subsidiary
and the timing of game title releases near the end of the period.
Accrued Expenses
Years ended March 31 Millions of yen
Reference:
2005 2006 Change Taito
¥1,662 ¥6,413 ¥4,750 ¥4,422
Accrued expenses increased ¥4,750 million, to ¥6,413 million,
mainly owing to Taito being made a consolidated subsidiary.
Other Accounts Payable
Years ended March 31 Millions of yen
Reference:
2005 2006 Change Taito
¥1,190 ¥6,509 ¥5,318 ¥67,760
Mainly owing to payables relating to the merger and takeover of
Taito, namely outstanding payables to minority interests in Taito,
other accounts payable increased ¥5,318 million, to ¥6,509 million.
Among Taito’s other accounts payable shown above, the amount
of payables relating to the merger with SQEX, which was payable
to the Company, was offset through consolidation. (Note: Taito
includes payables relating to the merger totaling ¥66,999 million.)
S h a r e h o ld e r s ’ E q u it y
Years ended March 31 Millions of yen
2005 2006 Change
Common stock ¥007,433 ¥007,803 ¥00,370
Capital surplus reserve 36,673 37,044 370
Retained earnings 65,561 76,022 10,460
Unrealized gain on revaluation of
other investment securities 472 531 59
Foreign currency translation
adjustment (807) 97 904
Treasury stock (401) (506) (104)
Total shareholders’ equity ¥108,933 ¥120,993 ¥12,060
As of March 31, 2006, total shareholders’ equity amounted to
¥120,993 million, an increase of ¥12,060 million compared to the
previous fiscal year-end. The increases in common stock and capital
reserve are due to stock options being exercised.
Total shareholders’ equity as of March 31, 2006, was not
affected by the takeover of Taito—excluding consolidated income
effects in the second half of the period—since the Company did
not use treasury stock in the takeover transaction. Consequently,
compared with the previous fiscal year-end, the ¥10,460 million
increase in retained earnings is the main factor contributing to the
increase in total shareholders’ equity.