Toshiba 2011 Annual Report Download - page 68

2
Management’s Discussion and Analysis
Five-year Summary
Toshiba Corporation and Subsidiaries
Years ended March 31
Millions of yen,
except per share amounts
2011 2010 2009 2008 2007
Net sales ¥ 6,398,505 ¥ 6,291,208 ¥ 6,512,656 ¥ 7,404,284 ¥ 6,859,729
Cost of sales 4,897,547 4,852,002 5,242,465 5,548,757 5,115,315
Selling, general and administrative expenses 1,260,685 1,313,958 1,503,599 1,615,171 1,497,204
Operating income (loss) (Note 1) 240,273 125,248 (233,408) 240,356 247,210
Income (loss) from continuing operations, before income
taxes and noncontrolling interests 195,549 34,413 (261,467) 258,056 315,870
Income taxes 40,720 33,534 61,562 110,529 152,441
Net income (loss) attributable to shareholders of the
Company 137,845 (19,743) (343,559) 127,413 137,429
Per share of common stock:
Earnings (loss) attributable to shareholders of the
Company (Note 2)
–Basic ¥ 32.55 ¥ (4.93) ¥ (106.18) ¥ 39.46 ¥ 42.76
–Diluted 31.25 (4.93) (106.18) 36.59 39.45
Cash dividends 5.00 — 5.00 12.00 11.00
Tot al ass ets ¥ 5,379,319 ¥ 5,451,173 ¥ 5,453,225 ¥ 5,935,637 ¥ 5,931,962
Equity attributable to shareholders of the Company 868,119 797,455 447,346 1,022,265 1,108,321
Capital expenditures (Property, plant and equipment) 231,001 209,380 355,516 464,497 373,841
Depreciation (Property, plant and equipment) 215,699 252,523 306,895 339,363 258,835
R&D expenditures 319,693 311,751 357,520 370,273 365,260
Number of employees 203,000 204,000 199,000 198,000 191,000
Notes: 1) Operating income (loss) is derived by deducting the cost of sales and selling, general and administrative expenses from net sales, and reported as a measurement of segment profit or loss.
This result is regularly reviewed to support decision-making in allocation of resources and to assess performance. Certain operating expenses such as restructuring charges and gains (losses)
from the sale or disposition of fixed assets are not included in it.
2) Basic earnings (loss) per share attributable to shareholders of the Company (EPS) is computed based on the weighted-average number of shares of common stock outstanding during each
period.
Diluted EPS assumes the dilution that could occur if convertible bonds were converted or stock acquisition rights were exercised to issue common stock, unless their inclusion would have an
antidilutive effect.
3) On June 17, 2010, the Company and Fujitsu Limited (“Fujitsu”) signed a Memorandum of Understanding to merge their mobile phone businesses, followed by a definitive contract on July 29,
2010. On October 1, 2010, the Company transferred its mobile phone business to a newly established company called Fujitsu Toshiba Mobile Communications Limited, and sold 80.1% of the
shares of the new company to Fujitsu. The results of the mobile phone business are not incorporated into consolidated net sales, operating income (loss), or income (loss) from continuing
operations, before income taxes and noncontrolling interests in the consolidated results. Prior-period data relating to the discontinued operations has been reclassified in accordance with
Accounting Standards Codification (“ASC”) No.205-20, “Presentation of Financial Statements – Discontinued Operations”.
4) Beginning with the fiscal year ended March 31, 2010, the Company adopted ASC No.810 “Consolidation”. Prior-period data for the fiscal years ended from March 31, 2007 through 2009 has
been reclassified to conform with the current classification.
5) The Mobile Broadcasting business ceased operation at the end of the fiscal year ended March 31, 2009. Prior-period data for the fiscal years ended from March 31, 2007 through 2008 has been
reclassified to conform with the current classification.
2. Management’s Discussion and Analysis 18. Consolidated Balance Sheets 20. Consolidated Statements of Income
21. Consolidated Statements of Equity 22. Consolidated Statements of Cash Flows
23. Notes to Consolidated Financial Statements 63. Report of Independent Auditors