Yamaha 2009 Annual Report Download - page 74

Thousands of U.S. Dollars (Note 3)
Year ended March 31, 2009 Musical instruments AV/IT
Electronic
devices
Lifestyle-
related
products Others Total
Eliminations or
unallocated
amounts Consolidated
I. Sales and operating income (loss)
Sales to external customers $3,121,551 $577,441 $223,710 $438,980 $313,886 $4,675,598 $ — $4,675,598
Intersegment sales or transfers 10,547 10,547 (10,547) —
Total 3,121,551 577,441 234,267 438,980 313,886 4,686,155 (10,547) 4,675,598
Operating expenses 2,926,112 581,615 260,083 442,085 335,274 4,545,210 (10,547) 4,534,653
Operating income (loss) $ 195,439 $ (4,174) $ (25,817) $ (3,105) $ (21,378) $ 140,945 $ — $ 140,945
II. Total assets, depreciation and
amortization, loss on impairment of
fixed assets and capital expenditures
Total assets $2,760,450 $321,582 $185,554 $185,351 $710,486 $4,163,433 $ — $4,163,433
Depreciation and amortization 102,229 16,604 33,859 10,394 19,230 182,348 — 182,348
Loss on impairment of fixed assets 57,671 56,592 41,729 155,991 — 155,991
Capital expenditures 150,596 14,771 33,055 10,241 21,195 229,879 — 229,879
Notes:(1) The business segments have been determined based on the application or nature of each product in the market.
(2) Major products in each business segment:
Business segment Major products and services
Musical instruments Pianos, digital musical instruments, wind instruments, string instruments, percussion instruments, educational musical instruments, professional
audio equipment, soundproof rooms, music schools, English language schools, music entertainment software, and piano tuning
AV/IT Audio products, and IT equipment
Electronic devices Semiconductors
Lifestyle-related products System bathrooms, system kitchens, and washstands
Others Golf products, automobile interior wood components, factory automation (FA) equipment, metallic molds and components, and management
of accommodation facilities and sports facilities
The major products and services are described in the accompanying “Review of Operations.”
(3) Changes in segment names:
During the year ended March 31, 2008, the Company sold its electronic metal products business, and beginning with the year ended March 31,
2009, the name of the former electronic equipment and metal products segment has been changed to the electronic devices segment.
(4) Changes in business segment classification:
During the year ended March 31, 2008, the Company sold four of its six recreation facilities, and, in view of the decline in materiality of the recreation
business for the Company’s consolidated accounts, beginning with the year ended March 31, 2009, changes have been made to include the recre-
ation business in the others segment. As a result, the figures for the others segment include ¥6,104 million ($62,140 thousand) in sales, ¥310 million
($3,156 thousand) in operating loss, ¥4,231 million ($43,072 thousand) in assets, ¥363 million ($3,695 thousand) in depreciation, ¥3,918 million
($39,886 thousand) of loss on impairment of fixed assets, and ¥182 million ($1,853 thousand) of capital expenditure related to the recreation business
that were applicable to the year ended March 31, 2009.
(5) Among the assets of the others segment, the amounts of investment securities related to Yamaha Motor Co., Ltd. (the market value reported on the
accompanying consolidated balance sheets) were as follows:
2009 ¥37,312 million ($379,843 thousand)
2008 ¥78,206 million
(6) Changes in methods of accounting
Effective the previous fiscal year, pursuant to the changes in method of accounting described in “2. Changes in Methods of Accounting, (4) Change in
Method of Depreciation,” the Company and its domestic consolidated subsidiaries have adopted the declining-balance method for calculating depre-
ciation of tangible fixed assets acquired on or after April 1, 2007, using a rate that is 2.5 times that which would have been used if the straight-line
method had been applied. As a result of this change, for the year ended March 31, 2008, operating expenses increased and operating income
decreased as compared to the corresponding amounts which would have been recorded under the previous method.
Specifically, by segment, operating expenses increased for musical instruments by ¥213 million, for AV/IT by ¥55 million, for electronic equipment
and metal products by ¥162 million, for lifestyle-related products by ¥35 million, for recreation by ¥9 million, and for others by ¥52 million over the
corresponding amounts which would have been recorded under the previous method. At the same time, operating income (loss) for each segment
decreased (increased) by the same amount as that of the corresponding increase in operating expenses as a result of this change from the amount
which would have been recorded under the previous method.
In addition, pursuant to the changes in method of accounting described in “2. Changes in Methods of Accounting, (4) Change in Method of
Depreciation,” effective April 1, 2007, the Company and its domestic consolidated subsidiaries have changed their method of accounting for depre-
ciation of tangible fixed assets acquired on or before March 31, 2007 to depreciating the residual value of such assets which have been fully depreci-
ated to their respective depreciable limits under the Corporate Tax Law to nominal value over a period of five years based on the straight-line method.
As a result of this change, operating expenses increased and operating income decreased as compared to the corresponding amounts which would
have been recorded under the previous method. Specifically, by segment, operating expenses increased for musical instruments by ¥457 million, for
72 Yamaha Corporation