Epson 2008 Annual Report Download - page 30

54 Seiko Epson Corporation
55
Annual Report 2008
Thousands of
Millions of yen U.S. dollars
Year ended March 31
Year ended March 31,
2006 2007 2008 2008
Cash flows from operating activities:
Net loss ¥ (17,917) ¥ (7,094) ¥ — $ —
Adjustments to reconcile net loss to net cash provided by operating activities —
Depreciation and amortization 109,662 88,830 — —
Reorganization costs 45,532 41,068 — —
Accrual for net pension and severance costs, less payments 9,917 (5,102) — —
Net loss on sales and disposal of fixed assets 2,250 3,363 — —
Gain on change in interest due to business combination (12,424) — — —
Equity in net gains under the equity method (168) (138) — —
Deferred income taxes (7,377) 6,837 — —
Decrease in allowance for doubtful accounts (537) (355) — —
Provision for litigation and related expenses 8,540 1,129 — —
Decrease in notes and accounts receivable, trade 23,987 29,897 — —
(Increase) decrease in inventories (1,695) 21,281 — —
Decrease in notes and accounts payable, trade (20,526) (10,864) — —
Decrease in accrued income taxes (1,932) (2,990) — —
Other (19,815) (5,633) — —
Income before income taxes and minority interests — — 52,045 519,467
Adjustments to reconcile income before income taxes and minority interests
to net cash provided by operating activities —
Depreciation and amortization — — 79,209 790,588
Impairment losses — — 10,783 107,630
Equity in net gains under the equity method — — (104) (1,047)
Amortization of goodwill — — (1,254) (12,521)
Decrease in allowance for doubtful accounts — — (462) (4,612)
Increase in accrued bonuses — — 3,526 35,200
Decrease in accrued warranty costs — — (1,604) (16,016)
Accrual for net pension and severance costs, less payments — — (10,872) (108,518)
Interest and dividend income — — (10,836) (108,154)
Interest expenses — — 6,406 63,947
Foreign exchange losses — — 559 5,583
Net gain on sales of fixed assets — — (474) (4,738)
Loss on disposal of fixed assets — — 2,593 25,890
Net gain on sales of investment securities — — (2,010) (20,067)
Decrease in notes and accounts receivable, trade — — 33,520 334,566
Decrease in inventories — — 6,357 63,457
Decrease in consumption tax payable — — (1,504) (15,014)
Decrease in notes and accounts payable, trade — — (30,734) (306,762)
Other — — (15,849) (158,194)
Subtotal — — 119,294 1,190,685
Interest and dividends received — — 11,956 119,336
Interest paid — — (6,179) (61,675)
Income taxes paid — — (13,011) (129,868)
Net cash provided by operating activities 117,497 160,229 112,060 1,118,478
Cash flows from investing activities:
Decrease in time deposits — — 716 7,152
Payments for purchases of short-term investments — — (16) (165)
Proceeds from maturities of short-term investments 1,000 2,000 — —
Payments for purchases of investment securities — — (892) (8,905)
Proceeds from sales of investment securities — — 12,069 120,462
Proceeds from maturities of investment securities — — 8,000 79,848
Payments for purchases of property, plant and equipment (96,099) (67,803) (66,462) (663,369)
Proceeds from sales of property, plant and equipment 1,315 7,317 1,153 11,516
Payments for purchases of intangible assets (9,272) (11,513) (6,143) (61,320)
Proceeds from sales of intangible assets — — 3 31
Payments of long-term prepaid expenses (3,296) (945) (175) (1,755)
Payments for acquisition of additional stock of an affiliate — (3,306) — —
Payments for purchases of subsidiaries’ stock (1,034) (2,000) (336) (3,356)
Proceeds from sales of a subsidiary’s stock — — 146 1,463
Proceeds from business combination, net of payment 12,204 — — —
Other (84) (169) 1,167 11,655
Net cash used in investing activities (95,266) (76,419) (50,770) (506,742)
Cash flows from financing activities:
Increase (decrease) in short-term borrowings 18,471 (12,657) (12,955) (129,313)
Proceeds from long-term debt 116,300 120,880 32,781 327,190
Repayments of long-term debt (111,786) (131,119) (102,251) (1,020,575)
Proceeds from issuance of bonds — — 20,000 199,620
Proceeds from issuance of subsidiaries’ stock 2,674 — — —
Payments for purchases of treasury stock — — (1) (18)
Cash dividends (5,694) (6,284) (6,283) (62,718)
Cash dividends paid to minority shareholders — — (1,426) (14,241)
Other (842) (970) (524) (5,236)
Net cash provided by (used in) financing activities 19,123 (30,150) (70,663) (705,292)
Effect of exchange rate fluctuations on cash and cash equivalents 3,687 1,099 (9,085) (90,680)
Net increase (decrease) in cash and cash equivalents 45,041 54,759 (18,458) (184,237)
Cash and cash equivalents at the beginning of the year 234,904 280,114 334,873 3,342,380
Cash and cash equivalents increased by merger of unconsolidated subsidiaries 169 — — —
Cash and cash equivalents at the end of the year ¥ 280,114 ¥ 334,873 ¥ 316,414 $ 3,158,143
Supplemental disclosures of cash flow information:
Cash received and paid during the year for —
Interest and dividends received ¥ 3,794 ¥ 5,983
Interest paid ¥ (6,678) ¥ (6,417)
Income taxes paid ¥ (18,496) ¥ (13,774)
The accompanying notes are an integral part of these financial statements.
Consolidated Statements of Changes in Equity/Net Assets
Seiko Epson Corporation and Subsidiaries
Consolidated Statements of Cash Flows
Seiko Epson Corporation and Subsidiaries
Thousands of U.S. dollars
Shareholders’ equity
Common
stock
Additional
paid-in
capital
Retained
earnings
Treasury
stock,
at cost
Total
shareholders’
equity
Balance at March 31, 2007 $531,031 $793,501 $3,133,503 $(55) $4,457,981
Net income — — 190,574 — 190,574
Cash dividends — — (62,716) — (62,716)
Decrease due to unification of accounting
policies applied to foreign subsidiaries — — (362) — (362)
Changes in treasury stock — — — (18) (18)
Other, net — — — — —
Balance at March 31, 2008 $531,031 $793,501 $3,260,998 $(73) $4,585,457
Thousands of U.S. dollars
Valuation, translation differences and other
Net unrealized
gains on
other
securities
Net unrealized
gains (losses)
on derivative
instruments
Translation
adjustments
Total valuation,
translation
differences
and other
Minority
interests in
subsidiaries Total net assets
Balance at March 31, 2007 $ 98,020 $ (353) $ 138,605 $ 236,273 $239,728 $4,933,983
Net income — — — — — 190,574
Cash dividends — — — — — (62,716)
Decrease due to unification of accounting
policies applied to foreign subsidiaries — — — — — (362)
Changes in treasury stock — — — — — (18)
Other, net (59,499) 1,916 (300,575) (358,158) 2,221 (355,937)
Balance at March 31, 2008 $ 38,521 $1,563 $(161,969) $(121,885) $241,949 $4,705,522
The accompanying notes are an integral part of these financial statements.