Epson 2010 Annual Report Download - page 27

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were revised as unlikely to be realized. The effective tax rate after the application of deferred tax accounting
came to -2,375.4%.
Minority interests in income
A gain of ¥100 million was recorded for minority interests in subsidiaries, an improvement of ¥4,427 million
from the previous fiscal year. This was primarily due to certain minority interests in subsidiaries that had
accounted for loss in the previous fiscal year becoming wholly owned subsidiaries in the period under review.
Net loss
As a result, Epson recorded a net loss of ¥19,791 million, down ¥91,531 million from the previous period.
(2) Liquidity and capital resources
Cash flow
Net cash provided by operating activities in the period under review was ¥56,542 million, up ¥12,288 million
from the previous fiscal year. This was primarily due to a loss of ¥799 million, in contrast to a loss of ¥89,559
million before income taxes in the previous fiscal year.
The cash flow from investing activities was ¥43,203 million, down ¥17,798 million from the previous fiscal year.
The main reason for the decrease was, despite a ¥10,447 million increase in payments for investment securities,
payments for purchases of tangible and intangible assets declined by ¥28,245 million year-over-year.
Net cash used in financing activities was ¥41,087 million, down from ¥9,558 million in the previous fiscal year.
The main outflows were a net decrease of ¥20,382 million for short- term loans payable and repayments of
¥18,543 million for long-term loans payable, as well as ¥2,654 million for lease obligations and ¥1,374 million
for cash dividends paid. The main inflow was ¥2,000 million in proceeds from long-term loans payable.
Due to these factors, as of March 31, 2010, cash and cash equivalents at the end of the year stood at ¥254,590
million, a drop of ¥29,749 million from the previous fiscal year-end, giving Epson sufficient liquidity.
The total of both short- and long-term loans payable decreased and amounted to ¥209,061 million, down ¥36,986
million from the previous fiscal year.
The majority of long-term loans payable [excluding the current portion of long-term loans payable] amounts to
¥151,593 million, at a weighted average interest rate of 1.21% and with a repayment deadline of March 2015.
These loans were obtained as unsecured loans primarily from banks.
Financial condition
Total assets as of March 31, 2010 stood at ¥870,090 million, a decrease of ¥47,251 million from the previous
fiscal year-end. Current assets were down ¥21,467 million, while fixed assets decreased ¥25,784 million. The
decrease in current assets was due mainly to a decline in marketable securities. The decrease in fixed assets was
primarily the result of selective capital spending and impairment losses on business assets in the electronic
devices business.
Total liabilities were ¥587,226 million, a reduction of ¥11,484 million from the previous fiscal year. Current
liabilities increased ¥44,803 million, while long-term liabilities were down ¥56,288 million. The increase in
current liabilities was due to revised categorization of bonds due to mature within one year; the decrease in
long-term liabilities was due to repayment of long-term loans payable.
Working capital, defined as current assets less current liabilities, was ¥267,558 million, a decrease of ¥66,270
million compared with March 31, 2009.
Total assets declined, and the ratio of interest-bearing debt to total assets dropped from 38.3% to 35.8%.