Square Enix 2008 Annual Report Download - page 20

payable from ¥4,773 million to ¥3,912 million, a decrease in
accrued expenses from ¥3,379 million to ¥1,859 million and a
decrease in allowance for sales returns from ¥2,271 million to
¥1,135 million. In addition, reflecting financial adjustments made in
the previous fiscal period relating to the closure of unprofitable
amusement facilities, allowance for store closings decreased from
¥2,973 million to ¥226 million.
Non-Current Liabilities
Millions of yen
March 31 2007 2008 Change
¥52,635 ¥40,858 ¥(11,777)
Total non-current liabilities decreased ¥11,777 million to ¥40,858
million. Of the yen-denominated bonds with warrants issued by the
Company maturing in 2010, ¥13,000 million were exercised, leaving
¥37,000 million as non-current liabilities as of March 31, 2008.
Since these bonds with warrants are zero-coupon bonds, no interest
expense has been incurred.
Shareholders’ Equity/Net Assets
Millions of yen
March 31 2007 2008 Change
Common stock ¥ 8,038 ¥ 14,928 ¥ 6,890
Capital surplus 37,279 44,169 6,890
Retained earnings 84,315 90,295 5,979
Treasury stock (540) (841) (300)
Total shareholders’ equity 129,092 148,552 19,459
Unrealized gain on
revaluation of other
investment securities (8) (12) (4)
Foreign currency
translation adjustments 377 (1,504) (1,881)
Total valuation and
translation adjustments 368 (1,517) (1,886)
Stock acquisition rights — 81 81
Minority interests in
consolidated subsidiaries 1,178 1,077 (100)
Total net assets ¥130,639 ¥148,193 ¥17,554
As of March 31, 2008, total shareholders’ equity amounted to
¥148,552 million, an increase of ¥19,459 million compared with
the previous fiscal year end. Common stock and capital surplus
increased owing to the exercise of yen-denominated bonds with
warrants, maturing in 2010, of ¥13,000 million, and the exercise of
stock options (stock acquisition rights).
Intangible Assets
Millions of yen
March 31 2007 2008 Change
¥21,657 ¥20,024 ¥(1,633)
Total intangible assets decreased ¥1,633 million to ¥20,024 million,
primarily owing to amortization of goodwill. In the fiscal year under
review, ¥1,230 million in goodwill amortization was recorded as
SG&A expenses and ¥136 million in goodwill amortization was
posted as an extraordinary loss.
As of March 31, 2008, the balance of goodwill remaining within
intangible assets was ¥18,883 million.
Investments and Other Assets
Millions of yen
March 31 2007 2008 Change
¥21,748 ¥16,440 ¥(5,308)
Total investments and other assets decreased ¥5,308 million to
¥16,440 million. Significant items within this included a ¥4,087 mil-
lion decrease in deferred tax assets and a decrease in rental deposits
from ¥14,198 million to ¥13,235 million, mainly owing to the closure
of unprofitable amusement facilities in the Amusement business.
Owing to the Group’s withdrawal from the pachinko-slot
machine-related business in the Amusement business, claims in
bankruptcy decreased from ¥5,065 million to ¥327 million and
allowance for doubtful accounts decreased from ¥5,515 million to
¥948 million.
Liabilities
Total Liabilities
Millions of yen
March 31 2007 2008 Change
¥85,040 ¥63,940 ¥(21,099)
As of March 31, 2008, total liabilities amounted to ¥63,940 million, a
decrease of ¥21,099 million compared with the previous fiscal year
end. The main factors contributing to this change were as follows.
Current Liabilities
Millions of yen
March 31 2007 2008 Change
¥32,404 ¥23,082 ¥(9,321)
Total current liabilities decreased ¥9,321 million to ¥23,082 million.
Major changes within this included a decrease in other accounts
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