Wacom 2013 Annual Report Download - page 16

Notes to Consolidated Financial Statements
Wacom Co., Ltd. and Its Subsidiaries
30
1. Basis of presenting consolidated financial
statements:
The accompanying consolidated financial statements
have been prepared from the consolidated financial
statements of Wacom Co., Ltd. (the “Company” ) and
its subsidiaries filed with the Director of the Kanto
Local Finance Bureau in accordance with the Finan-
cial Instruments and Exchange Law of Japan and its
related accounting regulations, and in conformity with
accounting principles and practices generally
accepted in Japan, which are different in certain
respects from the application and disclosure require-
ments of International Financial Reporting Standards.
The consolidated financial statements are stated in
Japanese yen, the currency of the country in which
the Company is incorporated and principally oper-
ates. The translation of Japanese yen amounts into
U.S. dollar amounts is included solely for the conve-
nience of the readers outside Japan and has been
calculated at the rate of JP¥94.05 = U.S.$1.00, the
approximate rate of exchange on March 31, 2013.
Such translations should not be construed as repre-
sentations that the Japanese yen amounts could have
been or could be converted into U.S. dollars at that or
any other rate.
2.Summary of significant accounting policies:
(1)Principles of consolidation -
The consolidated financial statements include the
accounts of the Company and of its 10 majority-
owned subsidiaries. Majority-owned subsidiaries are
as follows;
• Wacom Europe GmbH
• Wacom Technology Corporation
• Wacom China Corporation
• Wacom Korea Co., Ltd.
• Wacom Australia Pty. Ltd.
• Wacom Hong Kong Ltd.
• Wacom Singapore Pte. Ltd.
• Wacom Taiwan Information Co., Ltd.
• Wacom Technology Services, Corporation
• Wacom India Pvt. Ltd.
There are no unconsolidated subsidiaries or affiliates
accounted for by the equity method.
The fiscal year end of Wacom China Corporation is
December 31. However, for consolidation purposes, a
provisional settlement of accounts as of March 31 is
utilized. The fiscal year end of the other consolidated
subsidiaries is same as the consolidated closing date.
(2)Valuation methods for major assets -
(a)Securities:
Available-for-sale securities
Securities for which market price or quotations are
not available are stated at cost based on the moving-
average method.
(b)Derivatives:
All derivatives are stated at fair value.
(c)Inventories:
Inventories held by the Company are stated at the
lower of cost or realizable value, cost being deter-
mined by the average cost method.
(3) Depreciation and amortization of major assets -
(a)Property, plant and equipment:
The Company has adopted the straight-line method of
depreciation.
Useful lives of major classes of property, plant and
equipment are as follows:
Buildings and structures 3 to 65 years
Machinery, equipment and vehicles 3 to 7 years
Tools, furniture and fixtures 2 to 20 years
(b)Intangible assets:
The Company has adopted the straight-line method
for computing amortization of intangible assets. Soft-
ware capitalized for in-house use is amortized based
on the straight-line method over an expected useful
economic life of 5 years. Software capitalized for sale
is amortized based on the estimated volume of sales,
with the minimum amortization amount calculated
based on a useful life of 3 years.
(4)Basis of provision -
(a)Allowance for doubtful accounts:
An allowance for doubtful accounts is provided in an
amount sufficient to cover probable losses on collec-
tion of notes and accounts receivable and other
receivables. The allowance for doubtful accounts is
computed based on the calculated historical bad debt
experience ratio for normal receivables, in addition to
the estimated amount of doubtful receivables on an
individual account basis.
Foreign consolidated subsidiaries mainly compute the
allowance for doubtful accounts based on the esti-
mated amount of doubtful receivables on an indi-
vidual account basis.
(b)Provision for bonuses:
The provision for bonuses to employees is provided
based on the estimated amounts expected to be paid
to employees at the end of the fiscal year.
(c) Provision for directors’ and statutory corporate
auditors’ bonuses:
The provision for directors’ and statutory corporate
auditors’ bonuses is provided based on the estimated
amounts expected to be paid to directors and statu-
tory corporate auditors at the end of the fiscal year.
(d)Provision for retirement benefits:
The provision for retirement benefits for employees is
provided based on the projected benefit obligation.
Unrecognized actuarial gains or losses are amortized
on a straight-line basis over 5 years beginning in the
year after they arise.
(5)Foreign currency translation -
Assets and liabilities denominated in foreign curren-
cies as of year-end are translated at the current
exchange rate. Exchange gains and losses resulting
from foreign currency transactions and the translation
of assets and liabilities denominated in foreign curren-
Net cash provided by (used in) operating activities :
Income before income taxes
Depreciation and amortization
Share-based compensation expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in provision for retirement benefits
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales and retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Others, net
Sub total
Interest and dividends income received
Interest expenses paid
Payments for loss on disaster
Payments for loss on business liquidation
Payment for withdrawal from employees' pension fund
Income taxes paid
Others, net
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities:
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of software
Purchase of investment securities
Proceeds from sales of noncurrent assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Payments for settlement of asset retirement obligations
Others, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities:
Proceeds from issuance of common stock
Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 9)
29
Consolidated Statements of Cash Flows
Wacom Co., Ltd. and Its Subsidiaries
¥7,545,805
1,160,090
69,659
1,939
234,529
72,652
99,422
(79,143)
6,278
(586,864)
14,145
(4,583,027)
93,048
3,297,961
489,626
7,836,120
79,425
(6,304)
-
-
-
(2,014,369)
-
5,894,872
(964,979)
(7,682)
(588,464)
-
9,036
(134,381)
136,480
(61,342)
-
(1,611,332)
-
-
5,526,934
(1,190,174)
4,336,760
1,006,256
9,626,556
11,969,873
¥21,596,429
The accompanying notes are an integral part of these financial statements.
¥3,504,537
1,068,140
58,678
176
338,217
59,963
33,404
(28,579)
8,229
(50,149)
11,471
(3,115,094)
(1,371,687)
4,346,111
1,135,384
5,998,801
27,933
(8,242)
(144,102)
(24,696)
(253,775)
(696,692)
(18,684)
4,880,543
(526,039)
(47,906)
(865,288)
(167,703)
31,129
(125,811)
3,596
-
643
(1,697,379)
14,049
(439,603)
-
(1,201,162)
(1,626,716)
(41,395)
1,515,053
10,454,820
¥11,969,873
$80,232
12,335
741
21
2,494
772
1,057
(841)
67
(6,240)
150
(48,730)
989
35,066
5,206
83,319
844
(67)
-
-
-
(21,418)
-
62,678
(10,260)
(82)
(6,257)
-
96
(1,429)
1,451
(652)
-
(17,133)
-
-
58,766
(12,655)
46,111
10,699
102,355
127,272
$229,627
Year ended March 31 Year ended March 31
Thousands of yen
Thousands of
U.S. dollars
(Note 1)
2013 20132012