Nintendo 2014 Annual Report Download - page 13

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- 11 -
Major components of the working capital requirements include purchase expenses of materials and parts for
manufacturing, advertising expenses and research and development expenses, and dividend and income tax
payments. Moreover, it is Nintendo’s basic policy to internally provide the capital necessary to fund future
growth, including capital investments.
During the launch periods of new products and the year-end sales season, there may be temporary increases in
notes and accounts receivable - trade, notes and accounts payable - trade and inventories, which may have a
downward or upward impact on net cash provided by (used in) operating activities.
Moreover, Nintendo maintains retained earnings that are necessary in order to adapt to changes in the business
environment and to pursue further business expansion in the future. Payments into or withdrawals from time
deposits with maturities of more than three months, as well as the timing of acquisition or sale of short-term
investment securities, may have an upward or downward impact on net cash provided by (used in) investing
activities.