Toshiba 1998 Annual Report Download - page 34

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32. Toshiba Corporation Annual Report 1998
Thousands of
Million s of yen U.S. dollars
Years ended March 31 1998 1997 1996 1998
Operating in com e (loss):
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 75,441 ¥ 188,468 ¥ 232,282 $ 571,523
Overseas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . –10,409 37,465 –
North America. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (22,538) (170,742)
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,606 125,803
Europe & Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,323 55,477
Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,462 (1,046) (7,180) 41,378
Consolidated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 82,294 ¥ 197,831 ¥ 262,567 $ 623,439
Iden tifiable assets:
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 4,934,728 ¥ 4,604,366 ¥4,465,996 $37,384,303
Overseas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . –940,133 697,018 –
North America. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344,515 2,609,962
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288,972 2,189,182
Europe & Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268,624 2,035,030
Corporate an d Elim in ation s . . . . . . . . . . . . . . . . . . . . 225,302 264,786 397,470 1,706,834
Consolidated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 6,062,141 ¥ 5,809,285 ¥5,560,484 $45,925,311
Notes: 1. Segm ent information for the fiscal years ended March 31, 1996 and 1997 has been reclassified to conform with the current
classification and segm ents.
2. As Japanese accounting standards do not require retroactive application of newly adopted standards, certain columns in the above
tables are left blank for periods which precede the adoption of new disclosure requirements.
RESEARCH AND DEVELOPMENT
Con solidated R&D expen ditures decreased 3 percen t to ¥322.9 billion (US$2,446 m illion). Th is was 5.9 percent of net
sales, com pared with 6.0 percent on e year earlier. A significan t am ount of R&D expen diture was applied to m ultim edia-
related activities, in cluding next-gen eration networkin g technology, portable PCs an d DVD, achievin g fin er design
rules in sem icon ductor production, polysilicon-type LCDs, com bin ed-cycle power generation, nuclear power plants,
lithium-ion rechargeable batteries, fuel cells an d en vironm en tal system s. Tosh iba estim ates th at fiscal 1998 R&D
expen ditures will decrease to approximately ¥310.0 billion (US$2,348 million ).
CAPITAL EXPENDITURES
Capital expenditures, wh ich include in vestm en ts in property, plan t an d equipm en t of ¥339.6 billion (US$2,573
m illion), were ¥346.4 billion (US$2,624 million ), an increase of 0.6 percen t from th e prior year. Electronic devices &
m aterials accounted for 53 percent of capital expenditures. Sign ifican t elemen ts of these expen ditures were 64M
DRAM production facilities and clean room equipm ent at th e Yokkaich i Works; mem ory-em bedded and oth er logic
LSI production facilities at the Oita Works; and a production lin e for n ext-gen eration polysilicon LCDs. Capital
expen ditures in information & com m unication system s totaled ¥57.2 billion (US$433 m illion). Capital expenditures
in power & in dustrial systems totaled ¥38.4 billion (US$291 m illion ). In consum er products, capital expenditures
were ¥39.5 billion (US$299 m illion). In fiscal 1998, current plans call for capital expen ditures of approximately
¥400.0 billion (US$3,030 million ).
FINANCIAL POSITION
As of March 31, 1998, total assets were ¥6,062.1 billion (US$45,925 m illion), an in crease of ¥252.9 billion from the
prior year. Curren t assets declin ed by ¥30.7 billion . Cash an d cash equivalen ts rose by ¥35.5 billion, but in ventories
were down by ¥66.4 billion due to power plant com pletion s an d reduction s in inventories of air con dition ers and
PCs. Growth in total finan ce receivables was attributable to a n ewly con solidated subsidiary, Tosh iba Building & Lease
Co., Ltd. Production an d research facilities for sem icon ductors were responsible for m ost of the ¥78.9 billion in crease