Square Enix 2010 Annual Report Download - page 25

been judged as likely to decrease. This reversal accompanied an
internal restructuring of the Group during this fiscal year. A further
factor contributing to the increase in deferred tax assets was an
increase in temporary tax differences due to a reevaluation of content.
Intangible Assets
Millions of yen
March 31 2009 2010 Change
¥18,697 ¥21,623 ¥2,926
Total intangible assets increased by ¥2,926 million, to ¥21,623
million. Two major factors affected the balance of intangible assets
during this fiscal year. Firstly, the acquisition of United Kingdom-
based EIDOS LTD. in April 2009 led to an increase in intangible
assets, while the recording of accelerated amortization of goodwill
relating to the consolidation of TAITO CORPORATION led to a
decrease in intangible assets.
Within total intangible assets, goodwill amounting to £45,205
(¥6,542 million at the prevailing exchange rate on April 22, 2009)
was recorded in relation to the acquisition of EIDOS LTD. This
goodwill amount, recorded in British pounds, will be amortized by
the straight-line method over 10 years.
Regarding goodwill relating to the Company’s acquisition of
TAITO CORPORATION in September 2005, a change in business
circumstances caused a revision in the estimate of the goodwill’s
useful life and recoverable value. As a result, the Company recorded
an extraordinary loss of ¥12,209 million in this fiscal year.
As a result, goodwill recognized on the Consolidated Balance
Sheets at March 31, 2010, amounted to ¥10,233 million, a decrease
of ¥7,538 million.
■ Liabilities
Total Liabilities
Millions of yen
March 31 2009 2010 Change
¥64,469 ¥116,271 ¥51,801
As of March 31, 2009, total liabilities amounted to ¥116,271
million, an increase of ¥51,801 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 2009 2010 Change
¥23,477 ¥75,257 ¥51,779
Total current liabilities increased by ¥51,779 million to ¥75,257
million. Major items contributing to this increase included the
reclassification of ¥37,000 million in yen-denominated zero coupon
bonds with warrants due November 2010 to the current portion of
corporate bonds from non-current liabilities, an increase in allowance
for sales returns from ¥1,598 million to ¥4,046 million, an increase
in other accounts payable from ¥2,884 million to ¥3,528 million,
and an increase in accrued expenses from ¥1,503 million to ¥6,611
million.
Non-Current Liabilities
Millions of yen
March 31 2009 2010 Change
¥40,992 ¥41,013 ¥21
Total non-current liabilities increased by ¥21 million to ¥41,013
million.
In preparation for the redemption of yen-denominated zero-
coupon bonds with warrants, which mature in November 2010, the
Company raised ¥35,000 million in January 2010 through the
issuance of euro yen zero coupon convertible bonds due 2015. In
addition, the Company recognized deferred tax liabilities amounting
to ¥2,354 million mainly owing to tax effects on intangible assets
relating to a corporate combination.
Reference: Breakdown of principal assets received and liabilities
assumed as of the date of business combination with U.K.-based
EIDOS LTD.
Millions of yen
Current assets ¥ 7,786
Non-current assets 19,543
Total assets 27,329
Current liabilities 14,654
Total liabilities ¥14,850
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