Toshiba 2012 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    Annual Report 2012 Operational Review Toshiba, one of the world's leading diversified electric/electronic manufacturers, provides customers worldwide with innovative products and services in four business domains-Digital Products, Electronic Devices, Social Infrastructure and Home Appliances-while ...

  • Page 3
    ... Contender Business Review Digital Products Segment Electronic Devices Segment Social Infrastructure Segment Home Appliances Segment 02 04 06 14 18 24 26 28 31 36 38 40 42 44 50 52 54 55 56 57 67 Research & Development and Intellectual Property CSR Management Environmental Management Corporate...

  • Page 4
    ... operating income and net sales reflected a healthy performance in thermal and hydro power systems mainly overseas, and the positive impact of acquiring the Swiss company Landis+Gyr AG, the world's leading Smart Meter company. With regard to the Home Appliances segment, LED lighting and industrial...

  • Page 5
    To Our Shareholders

  • Page 6
    ...Note 2) Financial position and indicators Total assets Equity attributable to shareholders of Toshiba Corporation (Note 3) Interest-bearing debt Shareholders' equity ratio (%) Debt/equity ratio (Times) Investment R&D expenditures Capital expenditures (Property, plant and equipment) Return indicators...

  • Page 7
    Net sales (Billions of yen) Ratio of overseas sales (%) 7,404.3 Total equity attributable to shareholders of Toshiba Corporation (Billions of yen) Debt/equity ratio (Times) 1,022.3 6,398.5 6,512.7 6,291.2 6,100.3 797.4 868.1 867.3 Financial H ighlights • Toshiba Corporation and its ...

  • Page 8
    ...our profit-making base. In FY2011, we transferred our LCD business to Japan Display Inc., and as a future growth business, we acquired the Swiss company Landis+Gyr AG, the global leading player in the Smart Meter industry. We have reinforced our global Smart Community business infrastructure through...

  • Page 9
    ... to strengthening such focus businesses as "integrated storage solutions," "Smart Community," "renewable energy," "power electronics and electric vehicles," "healthcare" and "fused digital products and services." we will also strengthen "home solutions" to promote energy saving and cut electricity...

  • Page 10
    ... base through shifting our product mix and timely miniaturization that goes in line with market trends, making facility investment and developing next-generation post-NAND technology. There is a trend toward demand increase mainly in applications for smartphones and SSD (solid state drives, using...

  • Page 11
    ... storage services for medical data using Amazon's web services. We strengthened our retail solutions capability by becoming the global No. 1 POS (point-of-sales) system company when Toshiba TEC, our Group company, acquired IBM's retail store solution (RSS) business. TOSHIBA Annual Report 2012...

  • Page 12
    ...world, we built collaboration relationships in such areas as cloud services with IBM and Hewlett-Packard. Furthermore, Toshiba TEC, our Group company, acquired IBM's retail store solutions business to develop the Smart Community business on a global scale. We are not only establishing alliances with...

  • Page 13
    ... where Toshiba is increasing its market share through our "Power TV series," we are aiming to return to the black in the latter half of FY2012. In addition, in our TVs, PCs and other mobile devices, we will move forward by applying common platforms, offering new enhanced fusion products and services...

  • Page 14
    ... need for energy-saving measures to reduce the total demand load for electric power became a pressing issue, and products that would contribute to saving on the amount of electricity consumed were highly desired. Accordingly, we are now marketing such products as TVs 12 TOSHIBA Annual Report 2012

  • Page 15
    ... the same time, we will promote high-efficiency thermal power generation, practical realization of carbon capture storage (CCS) An Interview with the President technologies, and the development of a next-generation nuclear power reactor that is highly safe. Through our Smart Community business, we...

  • Page 16
    ... company Divested Nagasaki system LSI front-end processes, TMX TV factory and Toshiba Finance's enterprise unit Transferred small- and medium-sized LCD business and Thai HDD factory Note: Figures exclude sales and operating income of Toshiba Mobile Display Co., Ltd. 14 TOSHIBA Annual Report 2012

  • Page 17
    ... debt Shareholders' equity 53 % Social Infrastructure Home Appliances Accumulated plan FY11-13 FY12-14 FY11-13 FY12-14 FY11 FY12 FY14 *2: Corporate Initiative Fund *3: Free Cash Flow *4: Operating income/(shareholders' equity + interest-bearing debt) TOSHIBA Annual Report 2012...

  • Page 18
    ...Innovation Personal Big Data Process Orchestrator Process Storage Device Hospital Retail Store HDD SSD NAND *1 : Factory Energy Management System *2 : Building Energy Management System *3 : Home Energy Management System *4 : Information and Communication Technology 16 TOSHIBA Annual Report 2012

  • Page 19
    ... Plan Expand line-up of small-scale and diversified power sources ¥800 billion Provide low emission solutions by utilizing prominent technology ¥250 billion Home Solutions Promote energy-saving, reduce electric bills by visualization and e ciency *FY2017 Sales Target Total Storage Innovations...

  • Page 20
    ... Management to Make Toshiba an Even Stronger Global Contender Special Feature: Proactive Management to Make Toshiba an Even Stronger Global Contender Feature contents Becoming a true global contender Globalization initiatives Business expansion in emerging markets 18 TOSHIBA Annual Report 2012

  • Page 21
    ... machines Japan share Toshiba CT: World No. 3 share; X-ray: World No. 4 share; Company B Diagnostic ultrasound systems: World No. 3 share (FY2010) Nuclear power generation CT (Medical Systems) No. 2 *11 *2: Unit basis, based on GfK data and Toshiba research *3: Net sales basis, based on Toshiba...

  • Page 22
    ... Sdn Bhd (manufacturer and retailer of power distribution systems and related equipment) Special Feature: Proactive Management to Make Toshiba an Even Stronger Global Contender 2011: Switzerland: Acquired Landis+Gyr AG 2012: Toshiba TEC acquired IBM's Retail Store Point-of-Sale Solutions Business...

  • Page 23
    ... of human resources • Promote shared services and divide functions Europe corporate representative America China corporate representative corporate representative Japan Asia corporate representative No. of facilities Total storage innovation Strengthen global R&D Total energy innovation Basic...

  • Page 24
    ... facilities and sales sites, we continue to release products that meet local needs in each region and to develop strategic advertisement campaigns. By March 2012, the "Power TV series" that was launched in November 2010 had recorded total sales of 3.2 million units. 22 TOSHIBA Annual Report 2012

  • Page 25
    ... from 10% last year to over 20% (based on number of units), bringing us into the top rank of suppliers. Share of TV market (unit base) in major ASEAN countries (%) 30 Source: GfK Vietnam 25 Indonesia 20 Malaysia 15 10 5 Special Feature: Proactive Management to Make Toshiba an Even Stronger...

  • Page 26
    ... pany Toshiba Elevator and Building Systems Corporation Toshiba Solutions Corporation Toshiba Medical Systems Corporation FY2011 Percentage of sales 5.0% Home Appliances Segment H 8.7% 36.6% Toshiba Consumer Electronics Holdings Corporation (As of March 31, 2012) 24 TOSHIBA Annual Report 2012

  • Page 27
    Breakdown by segment: Sales (Billions of yen) Digital Products Electronic Devices Social Infrastructure Home Appliances Others Capital expenditures (Billions of yen) (Order basis) 8.7% 4.7% 6.8% Ratios by segment 7,404.3 6,512.7 2,213.4 1,938.1 6,291.2 1,807.2 6,398.5 1,917.7 25.1% 6,100...

  • Page 28
    ...offer TVs, Blu-ray recorders, notebook PCs, tablets, e-book devices and other products. FY2007 FY2011 FY2011 25 25. 5. .2 .2 Percentage of sales 27.7% Note: Ratio of net sales total prior to exclusion of inter-segment sales Sales Sales (Billions of yen) 2,213.4 1,938.1 1,807.2 1,917.7 Capital...

  • Page 29
    ...develop a wide range of products and aim to increase sales of hardware and software, both in Japan and overseas. *1: For a tablet integrating a 10.1-inch LCD display. Based on Toshiba research, as of September 30, 2011 *2: Based on Toshiba research, as of September 30, 2011 *3: For a consumer-use TV...

  • Page 30
    ... billion) Despite the impact of lower sales, a healthy performance in storage devices and the effects of reduced costs for semiconductors and LCD panels led to an overall increase in income. 5.6 135.7 147.0 -328.6 FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 28 TOSHIBA Annual Report 2012

  • Page 31
    ... to improved power efficiency and energy saving, as a growth business. In the System LSI business, we are developing business models that match each business characteristics of our Logic LSI and Analog and Imaging ICs. System LSI business The production line at Iwate Toshiba Electronics Co., Ltd...

  • Page 32
    ...and operating income. Moving forward, we will continue to number among the top companies in ODD market share and to retain our position as one of the leading companies in this business field. Business Review / Electronic Devices Segment Toshiba Mobile Display Co., Ltd. The company manufactures and...

  • Page 33
    ... of resources and development of optimal overseas sites that will allow us to accelerate "local production for local consumption" and expand business scale. Beyond this, we aim to increase sustainable earnings and income by expanding our product line-up to embrace the energy solutions and services...

  • Page 34
    ... and Recovery System In the nuclear business outside of Japan, group company Westinghouse Electric Co. is making progress in the construction of four AP1000® pressurized water Tanjung Jati B Coal Fired Power Plant in Indonesia at 660 MW steam turbine generator 32 TOSHIBA Annual Report 2012

  • Page 35
    ... the global expansion of the T&D Systems business. In June 2011, TopRank Corporation Sdn Bhd, a Malaysian power distribution equipment manufacturer and marketer, became a Toshiba Group company and it now ser ves as our core location in Southeast Asia. Later in the year, in September, we entered into...

  • Page 36
    ...had won orders to supply units to some 20,000 homes. Business Review / Social Infrastructure Segment companies. Beyond this, with a strong emphasis on smart communities, we will continue to reinforce our total solutions businesses. Toshiba Elevator and Building Systems Corporation From development...

  • Page 37
    ...X-ray diagnostic imaging systems and medical IT systems. We hold the top market share in Japan and are expanding globally. In FY2011 we saw increased sales but lower operating income as the result of falling sales prices and exchange rate differences due to yen appreciation. In June 2011 we acquired...

  • Page 38
    ... sales. A healthy performance in LED Lighting was underpinned by a rise in demand for energy efficient products, but lower sales in White Goods reflected the impacts of the flooding in Thailand and a fall-off in demand in Japan on the ending of the eco-point system Business Review / Home Appliances...

  • Page 39
    ... products to the rest of Southeast Asia, the Middle and Near East and Japan. "Straight tube shaped LED base lighting" is installed in the retail spaces on the 3rd to 7th floor of the Tokyu Hands DIY department store in Shinjuku, Tokyo Business Review / Home Appliances Segment Air-conditioning...

  • Page 40
    ... and overcome power shortages. Research & Development and Intellectual Property Major Achievements in Research & Development Commercialization of tablets installed with functional connectivity to REGZA TVs and REGZA Blu-ray recorders, allowing users to enjoy high resolution 2D video and large...

  • Page 41
    ...Increasing licensing revenue Disposals based on consideration of level of impact on business Research & Development and Intellectual Property Business Profit & Growth Global business expansion Alliances & M&A IP management based on appropriate benchmarks Building a patent portfolio that supports...

  • Page 42
    ... to society 2. Secure sound management and finances Pushing forward with CSR management as a key Toshiba Group management policy With "pushing forward with CSR management" at the base of the Toshiba management policy, we drive forward "set ambitious goals for innovation and speed its pace...

  • Page 43
    ... nuclear power plants, and we will work with national and local governments on their utilization. Development of "SARRY-SoilTM" a system to purify irradiated soil * More information regarding activities to support the Great East Japan Earthquake can be found in the "Toshiba Group CSR Report 2012...

  • Page 44
    ...LCA Society of Japan Development and promotion of eco-e ciency assessment methods in the solution field Multilateral environmental communication inside and outside the Company "With 10 years of life" advertisement for LED light bulbs Energy e ciency (Toshiba Information Equipment (Philippines), Inc...

  • Page 45
    ... and Policy • Highlights CSR Report (Due for issue August 2012) CSR website http://www.toshiba.co.jp/csr/en/ • CSR performance Organizational Governance, Human Rights, Labor Practices, Environment, Fair Operating Practices, Consumer Issues, Community Involvement and Development • Engagement...

  • Page 46
    ... of office for directors to one year. And in 2003, following a change in the commercial code, in another move toward reinforcing management efficiency and transparency, we introduced the Company with Committees system, pursuant to a resolution approved by the annual meeting of the shareholders. As...

  • Page 47
    ... of Toshiba's management as an insider and contribute to the company's development Outside Director Hiroyuki Itami by providing opinions on the fundamental policies of its management. Corporate Governance Recent years have seen rapid structural changes in the international community. Increased...

  • Page 48
    ... key matters are made by the chief executive o cer, mainly at the corporate management meeting, which meets weekly as a general rule. Other matters are determined by the in-house company presidents at individual in-house company management meetings. Toshiba's Internal Control Systems Toshiba Group...

  • Page 49
    ... Audit Committee on each year's audit policy and plans. It also holds semimonthly liaison meetings with the Audit Committee for pre -audit discussions and to share information on the divisions subject to audit. The Corporate Audit Division carries out on-site inspections and reports its results to...

  • Page 50
    ...22, 2012 again. The plan protects the Company's corporate value and the common interests of its shareholders by defining procedures to be followed in the event of any large-scale acquisition of the Company's shares. It ensures that shareholders receive all necessary information and the time required...

  • Page 51
    ... Name Atsutoshi Nishida Position Director Director Executive O cer Company Toshiba Corporation Name Position Company Fixed Compensation Â¥ 127 6 96 Performance-based Compensation Â¥ âˆ' âˆ' 7 (Millions of yen) Total Amount Â¥ 127 Norio Sasaki Toshiba Corporation 109 TOSHIBA Annual Report 2012...

  • Page 52
    ... Yasuharu Igarashi Akira Sudo Masahiko Fukakushi Kiyoshi Kobayashi Toshio Masaki Masaaki Oosumi Hiroshi Saito Shigenori Shiga Masayasu Toyohara Hironobu Nishikori Osamu Maekawa Shigenori Tokumitsu 50 TOSHIBA Annual Report 2012

  • Page 53
    ...Director Member, the Audit Committee Member, the Compensation Committee Executive Officers Corporate Vice Presidents Masakazu Kakumu Yasuhiro Shimura Munehiko Tsuchiya Masazumi Yoshioka... Takemi Adachi Yoshihiro Aburatani Shigeyoshi Shimotsuji (As of June 22, 2012) TOSHIBA Annual Report 2012 51

  • Page 54
    ... Promotion Office Corporate Social Responsibility Div. CSR Implementation Office Corporate Government & External Relations Div. In-house Companies Digital Products Group Organization Chart Electronic Devices & Components Group Digital Products & Services Company Digital Products & Services...

  • Page 55
    ... Corporate Sales & Marketing Div. Advertising Div. Design Center Tohoku Recovery Promotion Div. New Lighting Systems Div. Smart Community Div. Cloud & Solutions Div. Materials & Devices Div. Infrastructure Systems Group Organization Chart Power Systems Company Nuclear Energy Systems & Services...

  • Page 56
    ... Toshiba Consumer Electronics Holdings Corporation • Toshiba Consumer Marketing Corporation • Toshiba Device Corporation • Toshiba Elevator and Building Systems Corporation • Toshiba Finance Corporation • Toshiba Home Appliances Corporation • Toshiba Industrial Products Sales Corporation...

  • Page 57
    ... official trade name changed to "Toshiba Corporation." Absorbed Nippon Atomic Industry Group Co., Ltd. Introduced corporate executive officer system. Introduced in-house company system. Changed registered headquarters from Kawasaki City, Kanagawa, to Minato Ward, Tokyo. Announced "01 Action Plan...

  • Page 58
    ...of our corporate philosophy. We recognize that it is our corporate social responsibility (CSR) to put our philosophy and slogan into practice in our day-to-day business activities. In doing so, we accord the highest priority to human life and safety and to compliance. 56 TOSHIBA Annual Report 2012

  • Page 59
    ...-term Debt Stock and Shareholder Information 58 60 62 62 63 64 65 66 Data Section Major indices of the Data Section have been compiled chronologically based on the fiscal years. For the details of financial information for the year ended March 31, 2012, please refer to the "Financial Review 2012...

  • Page 60
    ... Total assets Equity attributable to shareholders of Toshiba Corporation Interest-bearing debt Long-term debt Short-term debt Shareholders' equity ratio (%)*2 Debt/equity ratio (Times)*3 R&D, Capital Expenditures and Depreciation R&D expenditures Capital expenditures (Property, plant and equipment...

  • Page 61
    ...(Times) = (Operating income (loss) + Interest and dividends)/ Interest expense *12 Free cash flow = Net cash provided by operating activities + Net cash used in investing activities *13 Market capitalization = Common stock price [Year-end/Yen/Close] Ã- Total issued shares TOSHIBA Annual Report 2012...

  • Page 62
    ...,687 732,300 1,087,987 ¥5,451,173 356,592 662,474 1,019,066 ¥5,379,319 376,817 800,248 1,177,065 ¥5,731,246 For more information, please visit our IR website at http://www.toshiba.co.jp/about/ir/en/finance/index.htm Data Section 60 TOSHIBA Annual Report 2012

  • Page 63
    ...835,464 Equity attributable to shareholders of Toshiba Corporation Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at ...,455 (275,108) (308,681) (62) ¥ 2012 57,093 (286,126) (338,348) (462) Data Section TOSHIBA Annual Report 2012 61

  • Page 64
    ...,394 37,457 10,531 98,003 115,871 12,371 (10,595) 97,658 61,631 2.92 (2.50) 23.06 14.55 Data Section attributable to shareholders of Toshiba Corporation (Â¥) For more information, please visit our IR website at http://www.toshiba.co.jp/about/ir/en/finance/index.htm 62 TOSHIBA Annual Report 2012

  • Page 65
    ... sale of property, plant and equipment Proceeds from sale of securities Acquisition of property, plant and equipment Purchase of securities (Increase) decrease in investments in affiliates Other Net cash used in investing activities Cash Flows from Financing Activities: Proceeds from long-term debt...

  • Page 66
    ... Net sales Share of net sales (%) Operating income (loss) Operating income ratio (%) Number of employees (Thousands) R&D expenditures Depreciation Capital expenditures Total assets 327.7 (9.6) 4.8 - (0.3) - (0.1) - 16 6.3 0.3 (22.5) 7.2 (58.9) 8.8 (62.4) 333.0 (3.5) 64 TOSHIBA Annual Report 2012

  • Page 67
    ... 178,884 34,000 81,004 265,339 - - ¥ 879,397 ¥ 2012 - 196,356 201,248 50,368 193,566 - 98,548 341,960 ¥1,082,046 For more information on corporate bonds and ratings, please visit our IR website at http://www.toshiba.co.jp/about/ir/en/stock/bond.htm Data Section TOSHIBA Annual Report 2012 65

  • Page 68
    ... 1.8 Annual dividends per share (Yen) Payout ratio (%) (Consolidated) Number of shareholders Price-to-earnings ratio (PER) (Times) Price-to-cash flows ratio (PCFR) (Times) Price-to-book value ratio (PBR) (Times) Note: Common stock price is based on the Tokyo Stock Exchange, Inc. market quotation...

  • Page 69
    ... in a timely manner, and toward this we make full and proactive use of the Internet in our IR activities. On our investor relations site we publish a wide range of resources, including news releases, information for shareholders, our statements of accounts, and explanations of our business results...

  • Page 70

  • Page 71

  • Page 72
    ...) attributable to shareholders of the Company (Note 2) âˆ'Basic âˆ'Diluted Cash dividends Total assets Equity attributable to shareholders of the Company Capital expenditures (Property, plant and equipment) Depreciation (Property, plant and equipment) R&D expenditures Number of employees Â¥ 2011...

  • Page 73
    ... income ratio (ratio of operating income to net sales) is also KPIs. To assess financial position of the Group, the Management emphasizes shareholders' equity ratio (ratio of equity attributable to shareholders of the Company to total assets) and debt-to-equity ratio. Investments including capital...

  • Page 74
    ... fluctuations in foreign exchange rates and a downturn in stock market prices and the payment of a dividend to shareholders, but net income (loss) attributable to shareholders of the Company stood at a positive 73.7 billion yen. Total interest-bearing debt increased by 154.5 billion yen from the end...

  • Page 75
    ... the Group's financial position, strategic investment plans and other factors. The Company will announce the dividend for FY2012 as soon as it is determined. RESULTS BY INDUSTRY SEGMENT Billions of yen Net Sales Year ended March 31 âˆ' Change (%) âˆ' Operating Income (loss) Change Digital Products...

  • Page 76
    Management's Discussion and Analysis HOME APPLIANCES The Home Appliances segment saw overall sales decrease by 23.0 billion yen to 576.8 billion yen ($7,033.5 million). The Lighting Systems business recorded a healthy performance, mainly on LEDs, stimulated by concerns to save power. However, the ...

  • Page 77
    ... by Flash Forward, Ltd. and other affiliates accounted for by the equity method. Capital expenditure (billion yen) Investments & loans (billion yen) Total investments (billion yen) Digital Products Electronic Devices Social Infrastructure Home Appliances Others Total Notes: Based on ordering basis...

  • Page 78
    ... Co., Ltd., an assembly facility for power semiconductors. Business Segment billions of yen Planned Capital Investments for FY2012 As of March 31, 2012 Major Contents and Purposes Digital Products Electronic Devices Social Infrastructures Home Appliances Others Total 18.0 140.0 80.0 20.0 42.0 300...

  • Page 79
    ... for sale of shares less than one unit from shareholders Aggregate amount of sales value: Shares held as of the closing date of this period: 2,519,870 (common stock) 142,523 (common stock) 52 (million yen) 26,335 (common stock) 9 (million yen) 2,636,058 (common stock) TOSHIBA Annual Report 2012 09

  • Page 80
    ... March 31, 2012 Name of Company Voting Rights Ratio (Percentage) Location Toshiba TEC Corporation Toshiba Plant Systems & Services Corporation Toshiba Elevator and Building Systems Corporation Toshiba Solutions Corporation Toshiba Medical Systems Corporation Toshiba Nuclear Energy Holdings (US) Inc...

  • Page 81
    ...and new energy, power electronics/EV and home solutions, and total storage innovation, such as HDD/SSD, NAND flash memory, health care solutions, retail solutions and digital products solutions. In areas such as System LSIs, the Group is also restructuring and selectively allocating resources. While...

  • Page 82
    ... 2. Risks related to financial condition, results of operations and cash flow (1) Business environment of the Digital Products business The market for the Digital Products business is intensely competitive, with many companies manufacturing and selling products similar to those offered by the Group...

  • Page 83
    ... The Home Appliances business faces intense competition from many companies manufacturing and selling products similar to those offered by the Group. In addition, the results of this business tend to be strongly affected by consumer spending and trends in building and housing construction starts...

  • Page 84
    ... the Company ("shareholders' equity"). As a result, the Group's shareholders' equity may be affected by exchange rate fluctuations. (iii) Accrued pension and severance costs The Group recognizes the funded status (i.e., the difference between the fair value of plan assets and the benefit Management...

  • Page 85
    ... goods through enhanced cooperation with key suppliers. (2) Securing human resources A large part of the success of the Group's businesses depends on securing excellent human resources in every business area and process, including product development, production, marketing and business management...

  • Page 86
    ... by sharing intellectual property through the promotion of common platforms and using overseas resources more efficiently in system development. 7. Risks related to laws and regulations (1) Information security The Group maintains and manages personal information obtained through business operations...

  • Page 87
    ... case the production joint ventures will thereafter be treated as consolidated subsidiaries of the Company. (2) Alliance in nuclear power systems business The Group acquired Westinghouse group in October 2006. The Company's ownership interest in Westinghouse group (including the holding companies...

  • Page 88
    ... social conditions The Group undertakes global business operations. Any changes in political, economic, and social conditions and policies, legal or regulatory changes and exchange rate fluctuations, in Japan or overseas, may impact market demand and the Group's business operations. The Group makes...

  • Page 89
    ... (Note 9) Marketable securities and other investments (Note 6) Total long-term receivables and investments Property, plant and equipment (Notes 17 and 22): Land Buildings Machinery and equipment Construction in progress Less-Accumulated depreciation Total property, plant and equipment Other assets...

  • Page 90
    ...,026 shares Â¥ 439,901 Additional paid-in capital 401,125 Retained earnings 595,583 Accumulated other comprehensive loss (567,843) Treasury stock, at cost: 2012âˆ'2,636,058 shares (1,498) 2011âˆ'2,519,870 shares âˆ' Total equity attributable to shareholders of the Company 867,268 Equity attributable...

  • Page 91
    Consolidated Statements of Income Toshiba Corporation and Subsidiaries For the years ended March 31, 2012 and 2011 Millions of yen Thousands of U.S. dollars (Note 3) 2012 Sales and other income: Net sales Interest and dividends Equity in earnings of affiliates (Note 9) Other income (Notes 6, 16 ...

  • Page 92
    ... of Equity Toshiba Corporation and Subsidiaries For the years ended March 31, 2012 and 2011 Millions of yen Accumulated other comprehensive income (loss) Equity attributable to shareholders of the Company Equity attributable to noncontrolling interests Common stock Additional paid-in capital...

  • Page 93
    ... paid-in capital Retained earnings Treasury stock Total equity Balance at March 31, 2011 $ 5,364,647 $ 4,872,585 $ 6,725,890 $ (6,358,488) $ Change in ownership for noncontrolling interests and others 19,220 Dividend attributable to shareholders of the Company (361,524) Dividends attributable to...

  • Page 94
    ... in investing activities Cash flows from financing activities Proceeds from long-term debt Repayment of long-term debt Increase (decrease) in short-term borrowings, net Dividends paid Purchase of treasury stock, net Other Net cash used in financing activities Effect of exchange rate changes on cash...

  • Page 95
    ..., "the Group") are engaged in research and development, manufacturing and sales of high-technology electronic and energy products, which range (1)Digital Products, (2)Electronic Devices, (3)Social Infrastructure, (4)Home Appliances, and (5)Others. For the year ended March 31, 2012, sales of Social...

  • Page 96
    ...residual value recorded at a nominal value. Depreciation for property, plant and equipment for foreign subsidiaries is generally computed using the straight line method. The estimated useful lives of buildings are 3 to 50 years, and those of machinery and equipment are 2 to 20 years. Maintenance and...

  • Page 97
    ...-13 does not have a material impact on the Company's financial position and results of operations. Revenue from the development of custom software products is recognized when there is persuasive evidence of an arrangement, the sales price is fixed or determinable, collectibility is probable, and the...

  • Page 98
    Notes to Consolidated Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 DERIVATIVE FINANCIAL INSTRUMENTS The Group uses a variety of derivative financial instruments, which include forward exchange contracts, interest rate swap agreements, currency swap agreements and ...

  • Page 99
    ...FY2011. However, the Company continues the maintenance service of products manufactured and supplied. In accordance with ASC No.205-20 "Presentation of Financial Statements-Discontinued Operations" ("ASC No.205-20"), operating results relating to the mobile phone business are separately presented as...

  • Page 100
    ... Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 5. FAIR VALUE MEASUREMENTS ASC No.820 "Fair Value Measurements" defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants...

  • Page 101
    ... Balance at beginning of year Total gains or losses (realized or unrealized): Included in other comprehensive income (loss): Net unrealized gains and losses on securities Purchases Sales Issuances Settlements Balance at end of year ¥ 5 ¥ (143) 3,205 3,067 TOSHIBA Annual Report 2012 31

  • Page 102
    Notes to Consolidated Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 Millions of yen Year ended March 31, 2011 Marketable securities Subordinated retained interests Total Balance at beginning of year Total gains or losses (realized or unrealized): Included in gains (...

  • Page 103
    ... expected to be generated by the related assets and on the transfer price of stocks with unobservable inputs. As a result, the net impacts for the years ended March 31, 2012 and 2011 were ¥6,542 million ($79,780 thousand) loss and ¥15,969 million loss, respectively. TOSHIBA Annual Report 2012...

  • Page 104
    ... Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 6. MARKETABLE SECURITIES AND OTHER INVESTMENTS The aggregate cost, gross unrealized holding gains and losses, and aggregate fair value for marketable equity securities and debt securities classified as available-for-sale...

  • Page 105
    ... the prevailing market rate. Related servicing assets or liabilities are immaterial to the Group's financial position. The table below summarizes certain cash flows received from and paid to special purpose entities ("SPEs") on the above securitization transactions. Millions of yen Year ended March...

  • Page 106
    ...2011, respectively, based on quoted market prices at those dates. Summarized financial information of the affiliates accounted for by the equity method is shown below: Millions of yen March 31 Thousands of U.S. dollars Current assets Other assets including property, plant and equipment Total assets...

  • Page 107
    ... Total Other intangible assets not subject to amortization: Brand name Other Total $ 2,306,293 756,659 1,420,475 1,017,622 $ 5,501,049 $ 1,447,793 543,256 350,536 366,427 $ 2,708,012 858,500 213,403 1,069,939 651,195 $ 2,793,037 $ 456,707 29,573 486,280 $ 3,279,317 TOSHIBA Annual Report 2012...

  • Page 108
    Notes to Consolidated Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 Other intangible assets acquired during the year ended March 31, 2012 primarily consisted of software of ¥24,536 million ($299,220 thousand). The weighted-average amortization period of software for the ...

  • Page 109
    ...obligations, are as follows: Year ending March 31 Millions of yen Thousands of U.S. dollars 2013 2014 2015 2016 2017 Thereafter ¥ ¥ 196,356 201,248 50,368 193,566 98,548 341,960 1,082,046 $ 2,394,585 2,454,244 614,244 2,360,561 1,201,805 4,170,244 $ 13,195,683 TOSHIBA Annual Report 2012 39

  • Page 110
    ... Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 12. ISSUANCE OF CONVERTIBLE BOND In July, 2004, the Company issued ¥100,000 million Zero Coupon Convertible Bonds due 2011 (the"2011 Bonds"). The bonds include stock acquisition rights which entitle bondholders to acquire...

  • Page 111
    ... employees and managements in January 2011, and introduced Cash Balance Plan from April 2011. This plan is designed that each plan participant has a notional account, which is accumulated based on salary standards, interest rates in financial markets and others. The funding policy for the plans...

  • Page 112
    ...Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 Amounts recognized in accumulated other comprehensive loss at March 31, 2012 and 2011 are as follows: Millions of yen March 31 Thousands of U.S. dollars Unrecognized actuarial loss Unrecognized prior service cost ¥ ¥ 2012...

  • Page 113
    ...in equity securities, debt securities and life insurance company general accounts at 70 percent or more of total investments. The equity securities are selected primarily from stocks that are listed on the securities exchanges. Prior to investing, the Group has investigated the business condition of...

  • Page 114
    ...Consolidated Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 The three levels of input used to measure fair value are more fully described in Note 5. The plan assets that are measured at fair value at March 31, 2012 and 2011 by asset category are as follows: Millions of yen...

  • Page 115
    ...of yen March 31, 2011 Cash and cash equivalents Equity securities: Japanese companies Foreign companies Pooled funds Debt securities: Government bonds Municipal bonds Corporate bonds Pooled funds Other assets: Hedge funds Real estate Life insurance company general accounts Other assets Total Level...

  • Page 116
    ... Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 Each level into which assets are categorized is based on inputs used to measure the fair value of the assets, and does not necessarily indicate the risks or ratings of the assets. Level 1 plan assets represent marketable...

  • Page 117
    ... of fixed assets were ¥14,097 million for the year ended March 31, 2011. GAINS AND LOSSES ON SALES OF THE SHARES OF TOSHIBA MOBILE DISPLAY CO., LTD. In November 2011, the Company, Innovation Network Corporation of Japan ("INCJ"), Hitachi, Ltd. and Sony Corporation signed definitive agreements...

  • Page 118
    Notes to Consolidated Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 Millions of yen Year ended March 31 Thousands of U.S. dollars Expected income tax expense Increase (decrease) in taxes resulting from: Tax credits Non-deductible expenses for tax purposes Net changes in...

  • Page 119
    ...years before the fiscal year ended March 31, 2008 with few exceptions. In other major foreign tax jurisdictions, the Group is no longer subject to regular income tax examinations by tax authorities for years before the fiscal year ended March 31, 2006 with few exceptions. TOSHIBA Annual Report 2012...

  • Page 120
    Notes to Consolidated Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 19. EQUITY COMMON STOCK The total number of authorized shares of the Company is 10,000,000,000. The total number of shares issued for the years ended March 31,2012 and 2011 are 4,237,602,026. RETAINED ...

  • Page 121
    ... yen Pre-tax amount Tax benefit (expense) Net-of-tax amount For the year ended March 31, 2012: Net unrealized gains and losses on securities: Unrealized holding losses arising during year Less: reclassification adjustment for losses included in net income attributable to shareholders of the Company...

  • Page 122
    Notes to Consolidated Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 Thousands of U.S. dollars Pre-tax amount Tax benefit (expense) Net-of-tax amount For the year ended March 31, 2012: Net unrealized gains and losses on securities: Unrealized holding losses arising during...

  • Page 123
    ...-average number of shares of diluted common stock outstanding for the year Yen Year ended March 31 U.S. dollars 2012 2011 2012 Earnings from continuing operations per share attributable to shareholders of the Company: âˆ'Basic âˆ'Diluted Loss from discontinued operations per share attributable...

  • Page 124
    ... fixed-rate debt to a floatingrate basis. The gain or loss on the derivative financial instruments designated as fair value hedges is offset by the loss or gain on the hedged items in the same location of the consolidated statements of income. Cash Flow Hedge Strategy The forward exchange contracts...

  • Page 125
    ... Group's financial instruments and the location in the consolidated balance sheets at March 31, 2012 and 2011 are summarized as follows: Millions of yen March 31 Thousands of U.S. dollars Location 2012 2011 2012 Derivatives designated as hedging instruments: Assets: Forward exchange contracts...

  • Page 126
    Notes to Consolidated Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 The above table excludes the financial instruments for which fair values approximate their carrying amounts and those related to leasing activities. The table also excludes marketable securities and other...

  • Page 127
    ... acquired the controlling financial interest of TFC. As a consequence, the costs under capital leases from affiliates of the Company and the related accumulated amortization as of March 31, 2012, were not significant. Minimum lease payments for the Group's capital and non-cancelable operating...

  • Page 128
    ... Consolidated Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 23. COMMITMENTS AND CONTINGENT LIABILITIES Commitments for the purchase of property, plant and equipment, and unconditional purchase obligation for license fees outstanding at March 31, 2012 totaled approximately...

  • Page 129
    ... as additional technical or legal information become available. Management is of the opinion that the ultimate costs in excess of the amount accrued, if any, would not have a material adverse effect on the financial position or the results of operations of the Group. TOSHIBA Annual Report 2012 59

  • Page 130
    ... of nuclear power facilities. These obligations address the decommissioning, clean up and release for acceptable alternate use of such facilities. The changes in the carrying amount of asset retirement obligations for the years ended March 31, 2012 and 2011 are as follows: Millions of yen Year ended...

  • Page 131
    ... extensive customer networks, advanced services and technologies, with the Company's comprehensive expertise in energy management for utility companies such as power companies and the energy consumers in corporate buildings and household sectors. The Group positions the Smart Community business as...

  • Page 132
    ...Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 On February 1, 2012, the former affiliate TFC transferred the corporate financial services business to its subsidiary, and subsequently transferred 90% of the share in its subsidiary to IBJ Leasing. Simultaneously, the Company...

  • Page 133
    ... for the purpose of supplying stable electric power systems, and providing electric services and equipments to electric power operators. The Group is not the primary beneficiary of those VIEs because the Group does not have the power to direct the activities that most significantly affect those VIEs...

  • Page 134
    ... Liquid crystal displays, etc. (3) Social Infrastructure: Energy-related equipment, Medical equipment, IT solutions, Elevators, etc. (4) Home Appliances: Refrigerators, Washing drying machines, Light fixtures, Air-conditioners, etc. (5) Others: Logistics Service, etc. 64 TOSHIBA Annual Report 2012

  • Page 135
    ... As of and for the year ended March 31, 2012 Digital Products Electronic Devices Social Infrastructure Home Appliances Others Total Corporate and Eliminations Millions of yen Consolidated Net sales (1) Unaffiliated customers (2) Intersegment Total Segment operating income (loss) Identifiable assets...

  • Page 136
    Notes to Consolidated Financial Statements Toshiba Corporation and Subsidiaries March 31, 2012 GEOGRAPHIC INFORMATION Net Sales Net sales by region based on the location of the customer for the years ended March 31, 2012 and 2011 are as follows: Millions of yen Year ended March 31 Thousands of U.S....

  • Page 137
    ... balance sheets of Toshiba Corporation and subsidiaries (the "Group") as of March 31, 2012 and 2011, and the related consolidated statements of income, equity, and cash flows for the years then ended, all expressed in Japanese yen. These consolidated financial statements are the responsibility...

  • Page 138