Square Enix 2010 Annual Report Download - page 24

decrease in inventories of ¥9,019 million, depreciation and
amortization of ¥7,962 million and amortization of goodwill of
¥13,906 million.
(2) Net Cash Used in Investing Activities
Net cash used in investing activities totaled ¥53,774 million, an
increase of 389.2%, compared with the previous fiscal year. This
mainly comprised payments for acquiring shares in subsidiaries and
affiliated companies of ¥12,202 million, which principally related to
the acquisition of EIDOS LTD., and payments for acquiring short-term
securities (certificates of deposit) of ¥35,000 million.
(3) Net Cash Provided by Financing Activities
Net cash provided by financing activities amounted to ¥31,707 million,
compared with net cash used in financing activities totaling ¥3,044
million in the previous fiscal year. The principal item was the issuance
of euro yen zero coupon convertible bonds due 2015 amounting to
¥35,000 million.
The Group believes that it will be possible to procure the funds
required for working capital and capital investments in the future to
maintain growth based on its sound financial standing and ability to
generate cash through operating activities.
3. Analysis of Business Performance in the Fiscal Year
Ended March 31, 2010
■ Assets
Total Assets
Millions of yen
March 31 2009 2010 Change
¥213,194 ¥270,529 ¥57,335
Total assets as of March 31, 2010 amounted to ¥270,529 million,
an increase of ¥57,335 million compared with the previous fiscal
year-end. The main factors contributing to this change were as
follows:
Cash and Deposits
Millions of yen
March 31 2009 2010 Change
¥111,981 ¥111,211 ¥( 769)
Short-Term Investment Securities
Millions of yen
March 31 2009 2010 Change
— ¥35,000 ¥35,000
At March 31, 2010, the Company held certificates of deposit
amounting to ¥35,000 million as short-term investment securities.
In preparation for the redemption of yen-denominated zero
coupon bonds with warrants, which mature in November 2010
(balance as of March 31, 2010: ¥37,000 million), in January 2010
the Company procured funds (procurement amount: ¥35,000
million) through the issuance of euro yen zero coupon convertible
bonds due 2015.
Notes and Accounts Receivable
Millions of yen
March 31 2009 2010 Change
¥15,432 ¥30,682 ¥15,249
The year-end balance of notes and accounts receivable varies
greatly depending on the timing of new game title releases. Notes
and accounts receivable at year-end were ¥30,682 million, an
increase of ¥15,249 million compared with the previous fiscal year-
end. The principal factors contributing to this increase were the
release of two major game titles in March 2010 in Europe and the
United States, “FINAL FANTASY XIII” and “Just Cause 2.”
Content Production Account
Millions of yen
March 31 2009 2010 Change
¥18,392 ¥16,025 ¥(2,366)
As a rule, content development costs incurred during the period
from a title’s formal development authorization through to its
release are capitalized in the content production account. When the
title is released, this amount is then recorded as an expense.
The content production account is reevaluated based on the
current business environment.
As of March 31, 2010, the content production account totaled
¥16,025 million, a decrease of ¥2,366 million compared with the
end of the prior fiscal year.
As of March 31, 2010, the Company incurred a ¥6,435 million
loss on valuation of inventory due to reevaluation of the content
production account.
Deferred Tax Assets
Millions of yen
March 31 2009 2010 Change
Current ¥3,882 ¥6,231 ¥2,348
Non-current 952 1,682 730
As of March 31, 2010, current deferred tax assets amounted to
¥6,231 million, an increase of ¥2,348 million, and non-current
deferred tax assets amounted to ¥1,682 million, an increase of
¥730 million. These increases reflected such factors as the reversal
of a valuation allowance provided for deferred tax assets that had
Management’s Discussion and Analysis of Operating Results and Financial Position (JPNGAAP)
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