Wacom 2010 Annual Report Download - page 15

27
The accompanying notes are an integral part of these financial statements.
Consolidated Statements of Cash Flows
Wacom Co., Ltd. and Its Subsidiaries
Net cash provided by (used in) operating activities :
Income before income taxes
Depreciation and amortization
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
Increase (decrease) in provision for directors' 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
Income taxes paid
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
Proceeds from sales of noncurrent assets
Proceeds from redemption of securities
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
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
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 8)
¥3,120,867
757,167
3,247
(27,704)
32,943
14,058
34,024
(21,510)
14,131
160,114
35,297
(1,492,802)
31,497
1,131,963
534,994
4,328,286
34,676
(14,213)
(742,442)
3,606,307
(375,920)
(192,361)
(739,787)
11,353
500,000
-
-
(8,372)
(805,087)
2,092
-
(1,201,459)
(1,199,367)
(265,854)
1,335,999
11,014,114
¥12,350,113
¥4,179,661
664,439
14,254
(125,070)
(23,695)
48,912
57,382
(85,102)
12,375
(78,350)
13,625
737,805
(36,483)
(1,623,667)
(84,487)
3,671,599
79,379
(12,424)
(2,260,908)
1,477,646
(955,752)
(200)
(197,934)
7,479
-
(50,325)
23,022
-
(1,173,710)
222,293
(1,852,061)
(1,046,500)
(2,676,268)
(190,748)
(2,563,080)
13,577,194
¥11,014,114
$33,544
8,138
35
(298)
354
151
366
(231)
152
1,721
379
(16,045)
339
12,166
5,750
46,521
373
(153)
(7,980)
38,761
(4,040)
(2,068)
(7,951)
122
5,374
-
-
(90)
(8,653)
22
-
(12,913)
(12,891)
(2,857)
14,360
118,380
$132,740
Year ended March 31 Year ended March 31
Thousands of yen
Thousands of
U.S. dollars
(Note 1)
2010 20102009
Notes to Consolidated Financial Statements
Wacom Co., Ltd. and Its Subsidiaries
28
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
operates. The translation of Japanese yen amounts
into U.S. dollar amounts is included solely for the
convenience of the readers outside Japan and has
been calculated at the rate of JP
¥ 93.04 = U.S.$1.00,
the approximate rate of exchange on March 31, 2010.
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 all of its majority-
owned subsidiaries (8 companies) (the “Company”).
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 Taiwa n Information Co., Ltd.
The Company established Wacom Taiwan Information
Co., Ltd. in October 2008. Its results of operations
have been included in the company’s consolidated
financial statements since that date.
The Company liquidated Wacom Components Europe
Ltd. in March 2008. Its results of operations have
been excluded from the company’s consolidated
financial statements since that date.
Wacom Digital Solutions Co., Ltd. changed its
company’s title name to Wacom Korea Co., Ltd. in
April 2008.
In this year presented, 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,
the provisional settlement of accounts as of March 31
is utilized.
(2) Valuation methods for major assets -
(a)Securities:
Securities held by the Company and its subsidiaries
are classified as follows:
Held-to-maturity debt securities are stated at cost
after accounting for any premium or discount at
acquisition, which is amortized over the period to
maturity.
Other 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, with changes in
fair value included in net profit or loss in the period in
which they arise.
(c)Inventories:
Inventories held by the Company are stated at the
lower of cost or realizable value, cost being deter-
mined by the gross average method.
(Accounting changes)
“Accounting Standard for Measurement of Invento-
ries” (Accounting Standards Board of Japan State-
ment No. 9, issued on July 5, 2006) has been adopted
effective for the fiscal year ended March 31, 2009. As
a result, operating profit, ordinary income and income
before income taxes decreased by
¥ 40,330 thousand
compared with what would have been reported under
the previous accounting policy that inventories held
by the Company had been stated at cost. The impact
on segment information is explained in Note 16.
(3)Depreciation and amortization of major assets -
(a)Property, plant and equipment:
The Company adopted the declining-balance method
of depreciation at using rates based on the estimated
useful lives of the assets. Depreciation of buildings
acquired by the domestic company after April 1, 1998
is computed using the straight-line method of depre-
ciation. Depreciation of property, plant and equipment
held by at the foreign consolidated subsidiaries is
computed using the straight-line method over
estimated useful lives.
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