Square Enix 2007 Annual Report Download - page 20

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Investments and Other Assets
Years ended March 31 Millions of yen
2006 2007 Change
¥25,712 ¥21,748 ¥(3,964)
Total investments and other assets decreased by ¥3,964 million, to
¥21,748 million. Major items included a decrease in rental deposits
from ¥17,361 million to ¥14,198 million, owing to the closure of
amusement facilities, and a decrease from ¥1,459 million to ¥455
million in investment securities. An allowance for doubtful
accounts has been provided for claims in bankruptcy.
Liabilities
Total Liabilties
Years ended March 31 Millions of yen
2006 2007 Change
¥91,234 ¥85,040 ¥(6,194)
Total liabilities as of March 31, 2007, amounted to ¥85,040 mil-
lion, a decrease of ¥6,194 million compared with the previous fis-
cal year-end.
Current Liabilities
Years ended March 31 Millions of yen
2006 2007 Change
¥37,840 ¥32,404 ¥(5,436)
Total current liabilities decreased by ¥5,436 million during the fiscal
year, to ¥32,404 million as of March 31, 2007. Notably, other
accounts payable fell from ¥6,509 million to ¥4,773 million,
accrued expenses decreased from ¥6,413 million to ¥3,379 million,
accrued corporate taxes decreased from ¥4,848 million to ¥994
million, and reserve for bonuses decreased from ¥2,648 million to
¥1,872 million. On the other hand, in line with an increase of over-
seas sales, allowance for sales returns increased from ¥1,186 mil-
lion to ¥2,271 million. Also, a reserve was set aside for the closure
of unprofitable amusement facilities, causing allowance for store
closings to increase from ¥292 million to ¥2,973 million.
Non-Current Liabilities
Years ended March 31 Millions of yen
2005 2006 Change
¥53,394 ¥52,635 ¥(758)
Total non-current liabilities decreased ¥758 million, to ¥52,635
million. The principal reason stems from offering the elective early-
retirement plan to Taito employees, which resulted in the departure
of approximately 170 employees on March 31, 2007. In accordance
with the retirements, allowance for retirement benefits decreased
from ¥3,001 million to ¥2,169 million. Same as in fiscal year 2005,
non-current liabilities include ¥50,000 million issue of yen-denomi-
nated convertible bonds with warrants, maturing in 2010, as of
March 31, 2007. As these debentures are zero-coupon, no interest
payment liability is incurred.
Shareholders’ Equity / Net Assets
Years ended March 31 Millions of yen
2006 2007 Change
Common stock ¥007,803 ——
Capital surplus reserve 37,044 ——
Retained earnings 76,022 ——
Unrealized gain on revaluation of
other investment securities 531 ——
Foreign currency translation
adjustments 97 ——
Treasury stock (506) ——
Total shareholders’ equity ¥120,993 ——
Common stock —¥ 8,038 —
Capital surplus reserve —37,279 —
Retained earnings —84,315 —
Treasury stock —(540) —
Total shareholders’ equity —129,092 —
Unrealized gain on revaluation of
other investment securities —(8) —
Foreign currency translation
adjustments —377 —
Total valuation and translation
adjustments —368 —
Minority interests in consolidated
subsidiaries——1,178
Total net assets —¥130,639 —
As of March 31, 2007, total net assets amounted to ¥130,639 mil-
lion. During the current accounting period, the method of presen-
tation of shareholders’ equity changed. The increase in net assets
was due primarily to the increase of ¥8,293 million in retained
earnings from the prior year.
Increases in shareholders’ equity and the capital surplus reserve
resulted from the exercise of stock options (stock acquisition
rights).
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