Square Enix 2008 Annual Report Download - page 48

• FY2007 (April 1, 2007 to March 31, 2008)
Millions of yen
Games Games Mobile Phone Eliminations or Consolidated
(Offline) (Online) Content Publication Amusement Others Total unallocated total
I Sales and operating income
Net sales
(1) Sales to external customers ¥41,588 ¥12,098 ¥6,474 ¥11,158 ¥67,632 ¥ 8,564 ¥147,516 ¥ — ¥147,516
(2) Intersegment sales — — 104 — 1,471 440 2,017 (2,017) —
Total 41,588 12,098 6,579 11,158 69,104 9,005 149,533 (2,017) 147,516
Operating expenses 32,705 6,218 4,820 7,532 65,974 5,681 122,931 3,064 125,996
Operating income (loss) ¥ 8,882 ¥ 5,880 ¥1,758 ¥ 3,626 ¥ 3,129 ¥ 3,324 ¥ 26,602 ¥ (5,082) ¥ 21,520
II Total assets, depreciation and
amortization, impairment loss
and capital expenditures
Total assets ¥64,345 ¥18,118 ¥7,697 ¥10,588 ¥68,380 ¥13,266 ¥182,397 ¥29,736 ¥212,134
Depreciation and amortization 375 428 43 5 7,544 730 9,127 805 9,933
Impairment loss — — — — 9 — 9 — 9
Capital expenditures 426 234 10 1 4,768 1,142 6,584 368 6,952
Notes: 1. The classification of business segments is made based on the types of products and services.
2. Major products offered by business segment are summarized as follows:
Segment Major Products
Games (Offline) Games
Games (Online) Online games
Mobile Phone Content Content for mobile phones
Publication Magazine comics, serial comics, game-related books
Amusement All businesses of the Taito Group including Amusement Operations and Rental,
Sales of Goods and Merchandise and Content Services
Others Derivative products such as character merchandise, school for game designers
3. Unallocated operating expenses included in “Eliminations or unallocated” totaled ¥5,082 million. These expenses were related to administrative departments of the
Company which provide services and operational support that cannot be allocated to specific business segments.
4. Unallocated assets included in “Eliminations or unallocated” totaled ¥30,558 million. These assets mainly consisted of cash and deposits, deferred tax assets and
buildings and structures of administrative departments of the Company.
5. Change in accounting policy
As noted in “Important matters relating to the presentation of the consolidated financial statements,” Section 4. (2) (A), pursuant to the revision of the Corporation
Tax Law, effective this fiscal year, for tangible fixed assets acquired on or after April 1, 2007, the Company and its domestic consolidated subsidiaries have
changed their method of accounting for depreciation to that provided under the revised Corporation Tax Law.
As a result of this change, operating expenses increased for “Games (Offline)” by ¥33 million, for “Games (Online)” by ¥13 million, for “Amusement” by ¥537
million, for “Others” by ¥224 million and for “Eliminations or unallocated” by ¥19 million over the corresponding amounts which would have been recorded under
the previous method. At the same time, operating income (loss) for each segment decreased (increased) by the same amount as that of the corresponding increase
in operating expenses as a result of this change from the amount which would have been recorded under the previous method. The impact of this change on the
remaining segments were immaterial.
6. Additional information
As noted in “Important matters relating to the presentation of the consolidated financial statements,” Section 4. (2) (A), pursuant to the revision of the Corporation
Tax Law, effective this fiscal year, for assets acquired on or before March 31, 2007, the Company and its domestic consolidated subsidiaries apply the method of
accounting for depreciation provided for in the Corporation Tax Law prior to the revision and depreciate the difference between 5% of an asset’s acquisition cost
and its memorandum value using the straight-line method over a period of five years, from the fiscal year following the fiscal year in which the net book value of
the asset reaches 5% of its acquisition cost. Such depreciation is recorded in depreciation expense.
As a result of this change, operating expenses increased for “Amusement” by ¥137 million and for “Eliminations or unallocated” by ¥9 million over the corre-
sponding amounts which would have been recorded under the previous method. At the same time, operating income (loss) for each segment decreased (increased)
by the same amount as that of the corresponding increase in operating expenses as a result of this change from the amount which would have been recorded
under the previous method. The impact of this change on the remaining segments were immaterial.
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