Square Enix 2006 Annual Report Download - page 35

3 2 3 3
A n n u a l R e p o r t 2 0 0 6
SQUARE ENIX, INC., in favor of SONY COMPUTER ENTER-
TAINMENT AMERICA INC. As of March 31, 2006, there is
no liability outstanding under this guarantee.
The Company has issued a guarantee on behalf of consoli-
dated subsidiary TAITO CORPORATION covering its bank
overdraft agreement (maximum amount: ¥41,000 million).
As of March 31, 2006, there is no liability outstanding
under this guarantee.
Consolidated subsidiary TAITO CORPORATION has issued
guarantees on behalf of its commercial audiovisual products
customers covering their leasing fee liabilities to TOKYO
LEASING Corporation and KYOCERA Leasing Co., Ltd. These
guarantees cover leasing fee liabilities up to ¥60 million.
N o t e s t o C o n s o lid a t e d S t a t e m e n t s o f In c o m e
• FY2004 (April 1, 2004 to March 31, 2005)
*1 —————
*2 Breakdown of gain on sale of property and equipment:
Tools and fixtures ¥0 million
*3 Breakdown of loss on sale of property and equipment:
Tools and fixtures ¥2 million
*4 Breakdown of loss on disposal of property and equipment:
Tools and fixtures ¥47 million
Software ¥2 million
Total ¥50 million
*5 Loss on investment securities is due to the significant
decline in market prices of marketable securities.
*6 —————
• FY2005 (April 1, 2005 to March 31, 2006)
*1 Selling, general and administrative expenses include R&D
costs of ¥1,145 million.
*2 Breakdown of gain on sale of property and equipment:
Tools and fixtures ¥— million
*3 Breakdown of loss on sale of property and equipment:
Tools and fixtures ¥19 million
*4 Breakdown of loss on disposal of property and equipment:
Buildings and structures ¥52 million
Tools and fixtures ¥220 million
Amusement equipment ¥159 million
Software ¥22 million
Other ¥3 million
Total ¥457 million
*5 Same as FY2004
*6 Impairment loss
In this fiscal year, the Group posted impairment losses on
the following non-current assets.
Millions of yen
Impairment
Location Usage Category amount
Nagareyama-shi, Chiba Idle assets Land ¥0,042
Tokushima-shi, Tokushima Idle assets Land 146
Chiyoda-ku, Tokyo Idle assets Telephone sub- 9
scription rights
Republic of Korea (TAITO
KOREA CORPORATION) — Goodwill 260
The United States of America
(UIEVOLUTION, INC.) — Goodwill 3,926
Other — — 41
Total ¥4,426
Cash in-flows from each business segment of the Group
are complementary to each other in terms of similarity in
nature of products, merchandise, services and markets.
Consequently, all assets for operational purposes are classi-
fied in one asset group, and idle assets which are not used
for operational purposes are classified individually. In addi-
tion, assets related to the Group’s headquarters and welfare
facilities are classified as common-use assets.
Since the market values for the idle assets listed above
has declined severely in relation to their book values, and
because it remains uncertain as to whether the Group will
be able to utilize these assets in the future, their book
values have been impaired to the recoverable amounts.
The resulting losses have been posted as an impairment loss
totaling ¥198 million.
Furthermore, the recoverable amounts for these assets
have been determined according to market prices calculated
using real estate appraisals.
¥260 million related to the Republic of Korea (TAITO
KOREA CORPORATION) has been posted as an impairment
loss. This is the difference between the appraised income
potential in excess of acquisition amount for amusement
facilities in Korea at the time of acquisition, and the current
level of income assessed as recoverable above acquisition
amount.
The goodwill impairment totaling ¥3,926 million listed for
the United States of America (UIEVOLUTION, INC.) has been
posted as an impairment loss. This amount is the appraised
difference between future cash in-flows and the current
book value.