Wacom 2012 Annual Report Download - page 16

29
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
Share-based compensation expenses
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 loss on disaster
Increase (decrease) in provision for loss on business liquidation
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for directors' retirement benefits
Loss on adjustment for changes of accounting standard for asset retirement obligations
Interest and dividends income
Interest expenses
Loss (gain) on valuation of investment securities
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
Settlement package paid
Payments for loss on disaster
Payments for loss on business liquidation
Payment for withdrawal from employees' pension fund
Income taxes paid
Income taxes (paid) refund
Others, net
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
Purchase of investment securities
Proceeds from sales of noncurrent assets
Payments for acquisition of business
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 9)
¥3,504,537
1,068,140
58,678
176
338,217
59,963
-
-
33,404
-
-
(28,579)
8,229
-
(50,149)
11,471
(3,115,094)
(1,371,687)
4,346,111
1,135,384
5,998,801
27,933
(8,242)
-
(144,102)
(24,696)
(253,775)
(696,692)
-
(18,684)
4,880,543
(526,039)
(47,906)
(865,288)
(167,703)
31,129
-
(125,811)
3,596
643
(1,697,379)
14,049
(439,603)
(1,201,162)
(1,626,716)
(41,395)
1,515,053
10,454,820
¥11,969,873
The accompanying notes are an integral part of these financial statements.
¥2,952,508
749,373
31,917
(4,589)
(35,100)
327
197,212
25,020
43,168
(452,089)
28,578
(73,246)
9,262
20,000
71,197
12,407
363,288
(958,113)
(877,947)
371,119
2,474,292
73,210
(9,474)
(21,113)
-
-
-
-
(1,337,958)
-
1,178,957
(409,386)
-
(781,514)
-
6,606
(291,637)
(13,791)
19,680
-
(1,470,042)
-
-
(1,202,132)
(1,202,132)
(402,076)
(1,895,293)
12,350,113
¥10,454,820
$42,639
12,996
714
2
4,115
730
-
-
406
-
-
(348)
100
-
(610)
140
(37,901)
(16,689)
52,879
13,814
72,987
340
(100)
-
(1,753)
(300)
(3,088)
(8,477)
-
(227)
59,382
(6,400)
(583)
(10,528)
(2,040)
379
-
(1,531)
44
7
(20,652)
171
(5,349)
(14,614)
(19,792)
(504)
18,434
127,203
$145,637
Year ended March 31 Year ended March 31
Thousands of yen
Thousands of
U.S. dollars
(Note 1)
2012 20122011
Notes to Consolidated Financial Statements
Wacom Co., Ltd. and Its Subsidiaries
30
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 Financial
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¥82.19 = U.S.$1.00, the approximate
rate of exchange on March 31, 2012. Such translations
should not be construed as representations 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 (10 companies). Majority-owned subsid-
iaries 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 Taiwan Information Co., Ltd.
•Wacom Technology Services, Corp.
•Wacom India Pvt. Ltd.
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, a
provisional settlement of accounts as of March 31 is
utilized.
(2)Valuation methods for major assets -
(a)Securities:
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 income or loss in the period in
which they arise.
(c)Inventories:
Inventories held by the Company are stated at lower of
cost or realizable value, cost being determined by the
average cost method.
(3)Depreciation and amortization of major assets -
(a)Property, plant and equipment:
The Company adopted the declining-balance method
of depreciation 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 their
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
(b)Intangible assets:
The Company has adopted the straight-line method for
computing amortization of intangible assets. Software
capitalized for in-house use is amortized based on the
straight-line method over an expected useful
economic life of 5 years. Software capitalized for sale
is amortized based on the estimated volume of sales,
with the minimum amortization amount calculated
based on a useful life of 3 years.
(4)Basis of provision -
(a)Allowance for doubtful accounts:
An allowance for doubtful accounts is provided in an
amount sufficient to cover probable losses on collec-
tion of notes and accounts receivable. The allowance
for doubtful accounts is computed based on the calcu-
lated historical bad debt experience ratio for trade
receivables, in addition to the estimated amount of
doubtful receivables on an individual account basis.
Foreign consolidated subsidiaries mainly compute the
allowance for doubtful accounts based on the
estimated amount of doubtful receivables on an
individual account basis.
(b)Provision for bonuses:
The provision for bonuses to employees is provided
based on the estimated amounts expected to be paid
to employees.
(c) Provision for directors’ and statutory corporate
auditors’ bonuses:
The provision for directors’ and statutory corporate
auditors’ bonuses is provided based on the estimated
amounts expected to be paid to directors and statu-
tory corporate auditors.
(d)Provision for retirement benefits:
The provision for retirement benefits for employees is
provided based on the actuarially calculated present
value of projected benefit obligations except for, as
permitted under the accounting standard for employ-
ees’ retirement benefits, the unrecognized actuarial
gains or losses. The unrecognized actuarial gains or
losses are amortized on a straight-line basis over 5