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SECURITIES AND EXCHANGE COMMISSION
o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Japan (Jurisdiction of incorporation or organization) | 338 Kuzetonoshiro-cho, Minami-ku, Kyoto 601-8205 Japan (Address of principal executive offices) |
Title of Each Class | Name of Each Exchange On Which Registered | |
Common Stock* American Depositary Shares each representing one-fourth of one share of common stock | New York Stock Exchange New York Stock Exchange |
None
(Title of Class)
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None
(Title of Class)
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the
period covered by the annual report.
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
U.S. GAAP þ | International Financial Reporting Standards as issued by the International Accounting Standards Board o | Other o |
* | Not for trading, but only in connection with the listing of the American Depositary Shares. |
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• | general economic conditions in the information technology, consumer electronics and related product markets, particularly levels of consumer spending; | ||
• | our ability to design, develop, mass produce and win acceptance of our products, particularly those that use the hard disk spindle motor technology, which are offered in highly competitive markets characterized by continual new product introductions and rapid technological development; | ||
• | abrupt changes in our customers’ market position, particularly as a result of mergers and acquisitions; | ||
• | general economic conditions in the information technology, consumer electronics and related product markets, particularly levels of consumer spending; | ||
• | exchange rate fluctuations, particularly between the Japanese yen and the U.S. dollar and other currencies in which we make significant sales or in which our assets and liabilities are denominated; | ||
• | our ability to acquire and successfully integrate companies with complementary technologies and product lines; | ||
• | adverse changes in laws, regulations or economic policies in any of the countries where we have manufacturing operations; and | ||
• | any negative impacts on our businesses from outbreaks of diseases in the countries where we have production plants, such as a new type of influenza virus. |
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Year ended March 31, | ||||||||||||||||||||||||
2005(2) | 2006(2) | 2007(2) | 2008(2) | 2009 | 2009 | |||||||||||||||||||
(Yen in millions and U.S. dollars in thousands, | ||||||||||||||||||||||||
except number of shares outstanding and per share amounts) | ||||||||||||||||||||||||
Income statement data: | ||||||||||||||||||||||||
Net sales | ¥ | 462,274 | ¥ | 511,589 | ¥ | 614,651 | ¥ | 728,756 | ¥ | 613,458 | $ | 6,245,119 | ||||||||||||
Cost of products sold | 348,426 | 389,446 | 471,325 | �� | 571,337 | 482,893 | 4,915,942 | |||||||||||||||||
Selling, general and administrative expenses | 33,143 | 38,336 | 45,409 | 50,168 | 51,795 | 527,283 | ||||||||||||||||||
Operating income | 55,598 | 55,505 | 65,936 | 77,542 | 51,806 | 527,395 | ||||||||||||||||||
Income from continuing operations before income taxes | 59,079 | 66,155 | 67,614 | 64,255 | 47,029 | 478,764 | ||||||||||||||||||
Net income | 33,455 | 40,949 | 39,932 | 41,156 | 28,353 | 288,639 | ||||||||||||||||||
Balance sheet data (period end): | ||||||||||||||||||||||||
Total assets | ¥ | 484,173 | ¥ | 565,970 | ¥ | 662,623 | ¥ | 671,714 | ¥ | 702,884 | $ | 7,155,492 | ||||||||||||
Short-term borrowings | 28,478 | 43,621 | 78,848 | 68,854 | 221,342 | 2,253,303 | ||||||||||||||||||
Current portion of long-term debt | 8,493 | 4,647 | 3,216 | 29,196 | 1,883 | 19,169 | ||||||||||||||||||
Long-term debt | 37,833 | 32,134 | 31,560 | 3,430 | 2,578 | 26,245 | ||||||||||||||||||
Total shareholders’ equity | 207,040 | 263,659 | 305,016 | 319,584 | 297,148 | 3,025,023 | ||||||||||||||||||
Common stock | 61,180 | 65,649 | 65,868 | 66,248 | 66,551 | 677,502 | ||||||||||||||||||
Number of shares outstanding (1) | 142,504,926 | 144,661,292 | 144,780,492 | 144,987,492 | 145,075,080 | 145,075,080 | ||||||||||||||||||
Per share data: | ||||||||||||||||||||||||
Income from continuing operations per share-basic | ¥ | 244.53 | ¥ | 290.89 | ¥ | 281.89 | ¥ | 288.99 | ¥ | 214.04 | $ | 2.18 | ||||||||||||
Loss on discontinued operations per share-basic | (4.66 | ) | (5.42 | ) | (5.86 | ) | (4.99 | ) | (16.62 | ) | (0.17 | ) | ||||||||||||
Net income per share-basic | 239.87 | 285.47 | 276.03 | 284.00 | 197.42 | 2.01 | ||||||||||||||||||
Income from continuing operations per share-diluted | 232.71 | 280.28 | 273.95 | 281.14 | 210.49 | 2.14 | ||||||||||||||||||
Loss on discontinued operations per share-diluted | (4.4 | ) | (5.23 | ) | (5.70 | ) | (4.85 | ) | (16.37 | ) | (0.16 | ) | ||||||||||||
Net income per share-diluted | 228.29 | 275.05 | 268.25 | 276.29 | 194.12 | 1.98 | ||||||||||||||||||
Cash dividends paid per share | 17.50 | 25.00 | 40.00 | 50.00 | 60.00 | 0.61 | ||||||||||||||||||
(1) | Calculated using the average number of shares outstanding for the period (excluding treasury shares held by Nidec). Number of shares outstanding and all per share amounts have been restated to reflect the retroactive effect of the 2 for 1 stock split that took effect on November 18, 2005. | |
Detailed information regarding diluted shares outstanding is included in Note 20 in our consolidated financial statements included in this annual report. | ||
(2) | As of December 31, 2008, we discontinued our optical pickup unit, or OPU, business which had been included within “electronic and optical components”. Amounts in the above table, except for balance sheet data, for the fiscal year ended March 31, 2009 reflects the amounts of OPU business as discontinued operations pursuant to the Statement of Financial Accounting Standards No.144, “Accounting for the impairment or disposal of Long-Lived Assets”. All prior period OPU amounts in the above table, except for balance sheet data, have also been so reclassified as to enable comparisons between the relevant amounts for the fiscal year ended March 31, 2005 through 2008. |
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High | Low | Average | Period-end | |||||||||||||
Year ended March 31, | ||||||||||||||||
2005 | ¥ | 114.30 | ¥ | 102.26 | ¥ | 107.49 | ¥ | 107.22 | ||||||||
2006 | 120.93 | 104.41 | 113.15 | 117.48 | ||||||||||||
2007 | 121.81 | 110.07 | 116.92 | 117.56 | ||||||||||||
2008 | 124.09 | 96.88 | 114.31 | 99.85 | ||||||||||||
2009 | 110.48 | 87.80 | 100.62 | 99.15 | ||||||||||||
Calendar period | ||||||||||||||||
December 2008 | 93.71 | 87.84 | 91.28 | 90.79 | ||||||||||||
January 2009 | 94.20 | 87.80 | 90.12 | 89.83 | ||||||||||||
February 2009 | 98.55 | 89.09 | 92.92 | 97.74 | ||||||||||||
March 2009 | 99.34 | 93.85 | 97.86 | 99.15 | ||||||||||||
April 2009 | 100.71 | 96.49 | 98.98 | 98.76 | ||||||||||||
May 2009 | ¥ | 99.24 | ¥ | 94.45 | ¥ | 96.64 | ¥ | 95.55 | ||||||||
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• | a significant reduction, delay or cancellation of orders from one or more of our significant customers; | ||
• | a decision by one or more of our significant customers to select products manufactured or technologies developed by a competitor, or its own internally developed components, for inclusion in future product generations; or | ||
��� | financial difficulties affecting one or more of our significant customers. |
• | rapid technological change; | ||
• | frequent new product introductions and short product life cycles; |
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• | significant price competition and price erosion; | ||
• | fluctuating inventory levels; | ||
• | alternating periods of over-capacity and capacity constraints due, in part, to cyclical and seasonal market patterns; | ||
• | variations in manufacturing costs and yields; and | ||
• | significant expenditures for manufacturing equipment and product development. |
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• | economic slowdown or downturn in the relevant industries in foreign markets; | ||
• | international currency fluctuations; | ||
• | general strikes or other disruptions in working conditions; | ||
• | political instability; | ||
• | changes in tariffs; | ||
• | the difficulties associated with staffing and managing international operations; | ||
• | generally longer receivables collection periods; | ||
• | unexpected changes in or imposition of new legislative or regulatory requirements; | ||
• | relatively limited protection for intellectual property rights in some countries; | ||
• | potentially adverse taxes; |
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• | cultural and religious differences; | ||
• | difficulty in entering local business communities and markets, including finding suitable subcontractors or parts suppliers, due to differences commercial and business customs; | ||
• | additional cost of products exported overseas, including tariffs, shipping costs may, and other duties and impositions, which may make our products less competitive in terms of price; and | ||
• | significant time and capital required for expanding overseas businesses before achieving capital return. |
• | fluctuations in product demand as a result of the cyclical and seasonal nature of the industries in which our motor and drive technology products are sold and used, including the computer industry; | ||
• | translation effect of exchange rate fluctuations on the results of our overseas subsidiaries and monetary assets and liabilities denominated in foreign currencies; | ||
• | the availability and extent of utilization of our manufacturing capacity; | ||
• | changes in our product or customer mix; | ||
• | entry of new competitors; | ||
• | cancellation or rescheduling of significant orders, which can occur on short notice; | ||
• | deferrals of customer orders in anticipation of new products or enhancements; | ||
• | component and raw material costs and availability, particularly with respect to components obtained from sole or limited sources; | ||
• | natural and man-made disasters, including earthquakes, warfare and acts of terrorism, or unknown epidemics including a new type of influenza virus that significantly exceeds any level expected in Japan or elsewhere; and | ||
• | system failures, caused, for example, by power outages or computer viruses. |
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• | our ability to manufacture and sell the products of the businesses acquired; | ||
• | continued demand for these acquired products by our customers; | ||
• | our ability to integrate the acquired businesses’ operations, products and personnel; | ||
• | our ability to retain key personnel of the acquired businesses; | ||
• | our ability to extend our financial and management controls and reporting systems and procedures to acquired businesses; and | ||
• | accuracy of financial due diligence. |
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• | we could incur substantial costs in defending against claims of infringement of the intellectual property of others and such claims could result in damage awards against us, in orders to pay for the use of previously unrecognized third-party intellectual property or in injunctions preventing us from continuing aspects of our business, which could in turn have a material adverse effect on our business, financial condition and results of operations; | ||
• | our protective measures may not be adequate to protect our proprietary rights; |
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• | other parties, including competitors with substantially greater resources, may independently develop or otherwise acquire equivalent or superior technology, and we may be required to pay royalties to license the intellectual property of those parties; | ||
• | patents may not be issued pursuant to our current or future patent applications, and patents issued pursuant to such applications, or any patents we own or have licenses to use, may be invalidated, circumvented or challenged; | ||
• | the rights granted under any such patents may not provide competitive advantages to us or adequately safeguard and maintain our technology; | ||
• | we could incur substantial costs in seeking enforcement of our patents against infringement or the unauthorized use of our trade secrets, proprietary know how or other intellectual property by others; and | ||
• | the laws of foreign countries in which our products are manufactured and sold may not protect our products and intellectual property rights to the same extent as the laws of Japan and the United States, and such laws may not be enforced in an effective manner. |
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During | ||||
Fiscal | ||||
Year | ||||
Ended | ||||
March 31, | Event | |||
1989 | We acquired Shinano Tokki Co., Ltd., a major manufacturer of spindle motors for hard disk drives, from Teac Corporation, a then major manufacturer of audio equipment and magnetic recording devices for PCs. As a result, we gained the largest market share of spindle motors in the world. | |||
1995 | We acquired 38.5% of Kyoritsu Machinery Co., Ltd. and changed its name to Nidec Machinery Corporation. We subsequently increased our ownership to the current level of 60.0%. This company manufactures factory automation equipment for small precision motor assemblies and automated measuring instruments. | |||
1995/ 2003 | We acquired newly-issued shares of Shimpo Industries Co., Ltd., currently Nidec-Shimpo Corporation, constituting 36.7% of its then outstanding shares. We subsequently increased our ownership to 51% and have consolidated its results since February 2002. Nidec-Shimpo became a wholly-owned subsidiary of Nidec by way of a share exchange, effective as of October 1, 2003. Nidec-Shimpo is a major manufacturer of stepless automatic transmission mechanisms. | |||
1997/ 2002 | At the time when Shimpo Industries became our consolidated subsidiary in February 2007. Shimpo Industries held 90.0% of the outstanding shares of Read Corporation, currently Nidec-Read Corporation, which Shimpo Industries acquired from Nippon Steel Chemical Co., Ltd in 1997. Nidec-Read manufactures engineering inspection equipment for electronics components, including printed circuit boards, ceramics, semiconductors and automotive parts. Nidec-Read became our majority-owned subsidiary in February 2002 as a result of Nidec-Shimpo becoming our consolidated subsidiary. | |||
1998/ 2004 | We acquired 17.7% of the outstanding shares of Copal Co., Ltd. in 1998, currently Nidec Copal Corporation, from Fujitsu Limited. Later in 1998, we increased our ownership of Nidec Copal to 42.8%. We further increased our ownership of Nidec Copal to 51.3% in February 2004. Nidec Copal is a leading manufacturer of camera shutters and other optical and electronics instruments. Nidec Copal also manufactures information terminals, laboratory system instruments and automated manufacturing systems. In connection with our acquisition of Copal’s shares, we acquired from Copal 32.3% of the outstanding shares of Copal Electronics Corporation, currently Nidec Copal Electronics Corporation. Nidec Copal Electronics is a manufacturer of small electronic precision instruments, including semi-fixed gas registers, trimmer capacitators, small precision motors and gas and liquid pressure sensors. We subsequently increased our ownership of Nidec Copal Electronics to 40.0% in 1998 and then to 51.0% in January 2004. |
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During | ||||
Fiscal | ||||
Year | ||||
Ended | ||||
March 31, | Event | |||
1998 | We acquired the assets relating to the motor division of Shibaura Engineering Works Co., Ltd. and established a joint venture, Nidec Shibaura Corporation, with Toshiba Corporation and Shibaura Engineering. We initially owned 40.0% of the joint venture. We subsequently dissolved the joint venture and purchased the remaining 60.0% interest from our former joint venture partners, and Nidec Shibaura became our wholly-owned subsidiary in September 2000. Nidec Shibaura develops and manufactures precision motors for electric appliances and automobiles. Nidec Shibaura focuses on developing new motors for household appliances and automobiles. | |||
1999 | In October 1999, we acquired 71.0% of the outstanding shares of Nemicon Corporation, currently Nidec Nemicon Corporation. Later that year we acquired an additional 2.1%. Nidec Nemicon produces optical rotary encoders, proximity sensors and other electronic equipment. | |||
2000 | We acquired 67.0% of the outstanding shares of Y-E Drive Corporation, currently Nidec Power Motor Corporation, from Yasukawa Electric Corporation. Nidec Power Motor designs, develops, manufactures and services mid-size motors for industrial equipment and home electrical appliances. Through this acquisition, we expanded our business in the field of mid-size motors. | |||
2004 | In October 2003, we acquired approximately 40% of the outstanding shares of Sankyo Seiki Mfg. Co., Ltd., currently Nidec Sankyo Corporation. We subsequently increased our ownership of Nidec Sankyo to approximately 51% in February 2004. | |||
2006 | In November 2006, we acquired 98.9% of the outstanding shares of Fujisoku Corporation, which manufactures and sells industrial switches, memory cards, panel switches and electronic measuring instruments. | |||
2006 | In December 2006, we acquired all of the voting shares of the Motors & Actuators business of Valeo S.A., France. As a result, we have included the results of the Nidec Motor & Actuators group (consisting of seven companies) wholly-owned subsidiaries in our consolidated financial statements. These companies manufacture motors and actuators for automobiles such as air flow systems, body closure systems, occupant positioning systems and brake systems. | |||
2007 | In February 2007, we acquired 87.1% of the outstanding shares of Brilliant Manufacturing Limited, currently Nidec Brilliant Co., Ltd. Nidec Brilliant Co., Ltd is engaged in manufacturing and sales of base plate die-casting and top covers used in hard disk drives. | |||
2008 | In April 2007, we acquired 51.7% of the common stock of Japan Servo Co., Ltd., currently Nidec Servo Corporation, manufactures and sells motors and motor-applied products. |
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During | ||||
Fiscal | ||||
Year | ||||
Ended | ||||
March 31, | Event | |||
2009 | In June 2008, we acquired all of the shares of Shanghai Nidec Automotive Electric Motors Limited. Shanghai Nidec Automotive Electric Motors manufactures DC motors for automobiles such as those used in window lift systems and anti-locked braking systems. | |||
In August 2008, we acquired 68.4% of newly issued shares of Copal Yamada, which manufactures and designs precision molds. |
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• | Small Precision Motors:Hard disk drives spindle motors, other small precision brushless DC motors (for optical disk drives, laser printers, copiers, polygon scanners), brushless DC fans (for game machine consoles, microprocessor units, servers, personal computers, communication devices, automobiles), and other small precision motors (for refrigerator ice makers, mobile phones, CD players, DVD players, and other products); | ||
• | Mid-size Motors:Automotive motors (for power steering systems, engine/fuel cell cooling systems, seat adjusters, window lifts, door lock actuators, and other products), home appliances motors (for air conditioners, air purification systems, washing machines, refrigerators, and other products), and industrial motors (for machine tools, heat pump/water heater systems, elevators, barrier-free facilities, electric tools, and other products); | ||
• | Machinery:Transfer robots (for liquid-crystal-display panels, semiconductor wafers, and other products), card readers, semiconductor manufacturing/testing/measuring equipment, high-speed pressing machines, and power transmission systems; | ||
• | Electronic and Optical Components:Shutters and lens units (for digital still cameras and mobile phones), encoders, switches, trimmer potentiometers, actuators, precision plastic moldings and plastic metal casings, and | ||
• | Others:Pivot assemblies (for hard disk drives), control valves (for automotive transmissions), music boxes and logistics services |
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(Yen in millions, except percentage data) | ||||||||||||||||||||||||
For the year ended March 31 | ||||||||||||||||||||||||
2007 | 2008 | 2009 | ||||||||||||||||||||||
(%) | (%) | (%) | ||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
Small precision motors: | ||||||||||||||||||||||||
Hard disk drives spindle motors | ¥ | 198,196 | 32.3 | ¥ | 223,068 | 30.6 | ¥ | 181,255 | 29.5 | |||||||||||||||
Other small precision brushless DC motors | 74,445 | 12.1 | 92,359 | 12.7 | 73,187 | 11.9 | ||||||||||||||||||
Brushless DC fans | 38,656 | 6.3 | 46,525 | 6.4 | 37,345 | 6.1 | ||||||||||||||||||
Other small precision motors | 6,684 | 1.1 | 23,730 | 3.3 | 22,286 | 3.6 | ||||||||||||||||||
Sub-total | 317,981 | 51.8 | 385,682 | 53.0 | 314,073 | 51.1 | ||||||||||||||||||
Mid-size motors | 57,389 | 9.3 | 96,377 | 13.2 | 77,156 | 12.6 | ||||||||||||||||||
Machinery | 82,944 | 13.5 | 73,253 | 10.0 | 72,090 | 11.8 | ||||||||||||||||||
Electronic and optical components (Note 2) | 129,635 | 21.1 | 145,896 | 20.0 | 122,552 | 20.0 | ||||||||||||||||||
Others | 26,702 | 4.3 | 27,548 | 3.8 | 27,587 | 4.5 | ||||||||||||||||||
Consolidated total | ¥ | 614,651 | 100.0 | ¥ | 728,756 | 100.0 | ¥ | 613,458 | 100.0 | |||||||||||||||
Notes: | ||
(1) | Inter-group transactions have been eliminated in consolidation. | |
(2) | Operations of the optical pickup business, formerly classified in the “Optical and Electronic Components” business group, were reclassified as discontinued operations as of December 31, 2008 in accordance with SFAS No.144. Prior-year amounts in the table are retrospectively restated to reflect this reclassification. |
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a) 3.5-inch form factor—for desktop PCs, enterprise servers, personal video recorders or PVRs, digital flat TVs, and external hard disk drives; | |
b) 2.5-inch form factor—for notebook PCs (including ultra mobile PCs), PVRs, game machine consoles, digital flat TVs, and external hard disk drives, and | |
c) Sub-1.8-inch form factor—for handheld digital devices |
• | Emerging markets have expanded to account for an increasingly substantial portion of the increase in PC sales worldwide, offering new demand opportunities to the PC components manufacturers. Meanwhile, the PC industry’s growing dependence on the emerging regions is expected to result in lower PC prices. The resulting shift toward low-cost configuration may further propel PC commoditization and thereby increase price pressure on the upstream components suppliers. |
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• | Low-cost, ultra mobile PCs, which are also referred to as Netbooks, have emerged as the fastest-growing PC category, representing the increasingly price-driven, mobility-conscious market. The ultra mobile PC was initially intended to operate only on the flash memory-based, solid-state disk drive, or SSD. Presently, however, most of the new models incorporate 2.5-inch hard disk drives as their main storage devices in response to strong consumer demand for larger storage capacity not materially inferior to that of average notebook PCs. Based on our leadership position in the overall hard disk drives spindle motor market, most notably in the 2.5-inch form factor, we intend to take advantage of the growth in this PC category so as to ensure that our spindle motor business will also continue to grow going forward. In the meantime, competition with the SSD manufacturers in this field remains an issue of significance for the hard disk drive industry. SSDs may not be an immediate threat to the hard disk drive supply chain primarily due to extremely high price per gigabyte that substantially diminishes SSDs’ comparative advantages over hard disk drives. However, the hard disk drive industry continues to perceive SSDs as a medium- to long-term potential contender under the assumption that SSD manufacturers would eventually overcome existing technical and financial impediments to gain certain cost-competitiveness in the traditional low-end storage market. | ||
• | Perpendicular magnetic recording, or PMR, has prevailed as the industry’s mainstream data recording technology. We believe PMR and follow-on data recording technologies, which are expected to increase hard disk drive capacity at an annual pace of over 50%, will further broaden applicability of hard disk drives beyond PC into non-compute applications as consumers’ demand for storing high definition moving images increases. | ||
• | Horizontal and vertical consolidations in the hard disk drive industry have accelerated in recent years, influencing the competitive positions of the upstream component suppliers. |
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(Yen in millions, except percentage data) | ||||||||||||||||||||||||
For the year ended March 31 | ||||||||||||||||||||||||
2007 | 2008 | 2009 | ||||||||||||||||||||||
(%) | (%) | (%) | ||||||||||||||||||||||
Sales and operating revenue: | ||||||||||||||||||||||||
Japan | ¥ | 329,096 | 53.6 | ¥ | 359,489 | 49.3 | ¥ | 306,971 | 50.0 | |||||||||||||||
U.S.A. | 10,747 | 1.7 | 19,513 | 2.7 | 12,864 | 2.1 | ||||||||||||||||||
Singapore | 57,373 | 9.3 | 56,626 | 7.8 | 37,811 | 6.2 | ||||||||||||||||||
Thailand | 80,579 | 13.1 | 109,994 | 15.1 | 93,306 | 15.2 | ||||||||||||||||||
The Philippines | 12,929 | 2.1 | 13,374 | 1.8 | 12,394 | 2.0 | ||||||||||||||||||
China | 36,588 | 6.0 | 45,398 | 6.2 | 48,555 | 7.9 | ||||||||||||||||||
Other | 87,339 | 14.2 | 124,362 | 17.1 | 101,557 | 16.6 | ||||||||||||||||||
Consolidated total | ¥ | 614,651 | 100.0 | ¥ | 728,756 | 100.0 | ¥ | 613,458 | 100.0 | |||||||||||||||
Notes: | ||
(1) | Inter-group transactions have been eliminated in consolidation. | |
(2) | Operations of the optical pickup business, formerly classified in the “Optical and Electronic Components” business group, were reclassified as discontinued operations as of December 31, 2008 in accordance with the SFAS No.144. Prior-year amounts in the table have been retrospectively restated to reflect this reclassification. |
(Yen in millions, except percentage data) | ||||||||||||||||||||||||
For the year ended March 31 | ||||||||||||||||||||||||
2007 | 2008 | 2009 | ||||||||||||||||||||||
(%) | (%) | (%) | ||||||||||||||||||||||
Sales by Region: | ||||||||||||||||||||||||
North America | ¥ | 21,110 | 3.5 | ¥ | 31,086 | 4.3 | ¥ | 20,196 | 3.3 | |||||||||||||||
Asia | 370,750 | 60.3 | 429,206 | 58.9 | 358,112 | 58.4 | ||||||||||||||||||
Other | 28,399 | 4.6 | 53,635 | 7.3 | 41,258 | 6.7 | ||||||||||||||||||
Overseas sales total | 420,259 | 68.4 | 513,927 | 70.5 | 419,566 | 68.4 | ||||||||||||||||||
Japan | 194,392 | 31.6 | 214,829 | 29.5 | 193,892 | 31.6 | ||||||||||||||||||
Consolidated total | ¥ | 614,651 | 100.0 | ¥ | 728,756 | 100.0 | ¥ | 613,458 | 100.0 | |||||||||||||||
Notes: | ||
(1) | Inter-group transactions have been eliminated in consolidation. | |
(2) | Operations of the optical pickup business, formerly classified in the “Optical and Electronic Components” business group, were reclassified as discontinued operations as of December 31, 2008 in accordance with the SFAS No.144. Prior-year amounts in the table have been retrospectively restated to reflect this reclassification. |
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Percentage | ||||||||
owned by us | ||||||||
as of March 31, | ||||||||
Name | Country | Principal business | 2009 | |||||
(%) | ||||||||
Consolidated subsidiaries | ||||||||
Nidec Automobile Motor (Zhejiang) Corporation | China | Manufacture of motors for automobiles | 100.0 | % | ||||
Nidec America Corporation | U.S.A | Sales of fans and precision motors | 100.0 | % | ||||
Nidec (Zhejiang) Corporation | China | Manufacture of spindle motors for hard disk drives | 100.0 | % | ||||
Nidec (Dalian) Limited | China | Manufacture of small brushless DC motors and fan motors | 100.0 | % | ||||
Nidec (Dongguan) Limited | China | Manufacture of small brushless DC motors | 100.0 | % | ||||
Shanghai Nidec Automotive Electric Motors Limited | China | Manufacture of motors for automobiles | 100.0 | % | ||||
Nidec Electronics GmbH | Germany | Sales of spindle motors for hard disk drives and fans | 100.0 | % | ||||
Nidec Philippines Corporation | Philippines | Manufacture of spindle motors for hard disk drives | 99.9 | % | ||||
Nidec (H.K.) Co., Ltd. | Hong Kong | Sales of parts for our products and sales of spindle motors | 99.9 | % | ||||
Nidec Singapore Pte. Ltd. | Singapore | Manufacture and sales of pivot assemblies | 100.0 | % | ||||
Nidec Taiwan Corporation | Taiwan | Sales of small brushless DC motors and fans | 100.0 | % | ||||
Nidec Vietnam Corporation | Vietnam | Manufacture of fan motors | 100.0 | % | ||||
Nidec Electronics (Thailand) Co., Ltd. | Thailand | Manufacture and sales of spindle motors for hard disk drives | 99.9 | % | ||||
Nidec Subic Philippines Corporation | Philippines | Manufacture of spindle motors for hard disk drives | 100.0 | % | ||||
Nidec (Shanghai) International Trading Co., Ltd. | China | Sales of small brushless DC motors | 100.0 | % | ||||
Nidec Power Motor Corporation | Japan | Manufacture and sales of mid-size motors and small AC motors | 92.3 | % | ||||
Nidec Shibaura Corporation | Japan | Manufacture and sales of small AC motors | 100.0 | % |
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Percentage | ||||||||
owned by us | ||||||||
as of March | ||||||||
Name | Country | Principal business | 31, 2009 | |||||
Nidec Copal Electronics Corporation *1 | Japan | Manufacture and sales of electronic circuit components, pressure sensors, actuators and potentiometers | 63.7 | % | ||||
Nidec Copal Corporation *1 | Japan | Manufacture and sales of optical, electronic and information equipment, photo laboratory system and factory automation equipment | 59.1 | % | ||||
Nidec-Kyori Corporation | Japan | Manufacture and sales of high speed automatic presses, feed devices and other industrial machinery | 100.0 | % | ||||
Nidec System Engineering (Zhejiang) Corporation | China | Manufacture of factory automation equipment | 100.0 | % | ||||
Nidec Logistics Corporation | Japan | Transportation, warehousing, import and export business, packing, environment business, distribution processing and physical distribution | 100.0 | % | ||||
Nidec Machinery Corporation | Japan | Manufacture and sales of automatic assembly line machinery, testers and equipment for automotive motor | 60.0 | % | ||||
Nidec-Shimpo Corporation | Japan | Manufacture and sales of power transmission drives, control devices, measuring and factory automation equipment, ceramic and wood art equipment, and others | 100.0 | % | ||||
Nidec Tosok Corporation *1 | Japan | Manufacture and sales of precision automotive parts, automatic measuring equipment, semiconductor manufacturing machinery, air/electronic gauges, precision ball screws and other precision measuring devices | 66.2 | % | ||||
Nidec Total Service Corporation | Japan | Insurance agency, real estate business, merchandising, building maintenance and others | 100.0 | % | ||||
Nidec Sankyo Corporation *1 | Japan | Manufacture and sales of motors, automated teller machines, home appliance components and factory automation equipment | 72.6 | % | ||||
Nidec Motors & Actuators | France | Manufacture and sales of air flow system, seat positioning system, body closure system, braking, drive-line and steering system | 100.0 | % | ||||
Nidec Brilliant Co., Ltd. | Singapore | Manufacture and sales of hard disk drives base plate, brackets and top covers | 98.9 | % | ||||
Nidec Servo Corporation *1 | Japan | Manufacture and sales of motors for brushless motors, stepping motors, fans motors, blowers motors, sensors and motor applications | 62.6 | % |
Note: | ||
*1 | — Listed on one or more stock exchanges in Japan |
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Facility name | Location | Floor space (square meters) | Principal products and function | |||
In Japan | ||||||
Corporate Headquarters and Central Technical Laboratories (1) | Japan | 36,119 | Basic research and development of fluid dynamic bearing technology development | |||
Nidec Servo Corporation (1) | Japan | 34,128 | Manufacture of mid-size motors | |||
Nidec-Shimpo Corporation (1) | Japan | 29,322 | Manufacture of power transmission equipments and measuring equipment | |||
Nidec Power Motor Corporation (1) | Japan | 27,459 | Manufacture and sales of mid-size motors | |||
Nidec Shibaura Corporation (2) | Japan | 24,600 | Manufacture and sales of mid-size motors | |||
Nidec Tosok Corporation Head Office and Technical Center (1) | Japan | 23,471 | Manufacture of measuring equipment and semiconductor equipment | |||
Nidec Copal Corporation Koriyama Technical Center (1) | Japan | 22,884 | Development design and material procurement | |||
Shiga Technical Center (1) | Japan | 20,596 | Development and manufacture of small high-precision motors and mid-size motors. Production engineering. | |||
Nidec Sankyo Corporation Ina Facility (1) | Japan | 19,953 | Manufacture of transfer robots | |||
Nidec Copal Corporation Shiojiri Factory (1) | Japan | 16,452 | Manufacture of industrial automation and labor-saving equipments | |||
Nidec Tosok Corporation Yamanashi Factory (1) | Japan | 16,320 | Manufacture of automotive components | |||
Nidec Copal Precision Parts Corporation Koriyama Factory (1) | Japan | 14,372 | Manufacture of precision dies; press stamping components; injection molding components and surface treatment of components | |||
Nidec Sankyo Corporation Komagane Facility (1) | Japan | 14,347 | Manufacture of time switches; AC motors; stepping motor units; and related parts and components | |||
Nidec Copal Electronics Corporation Sano Factory (1) | Japan | 14,188 | Manufacture and sales of precision automotive parts |
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Facility name | Location | Floor space (square meters) | Principal products and function | |||
Outside Japan | ||||||
Nidec Philippines Corporation (3) | Philippines | 76,658 | Manufacture of spindle motors for hard disk drives | |||
Nidec Sankyo (H.K.) Co., Limited Shilong Factory (4) | China | 68,800 | Machining of small motors, stepping motors, stepping motor units, and related parts | |||
Nidec (Dalian) Limited | China | 50,784 | Manufacture of spindle motors for hard disk drives, DC motors for PC peripheral devices, fans and components for precision motors | |||
Nidec Motors & Actuators Mexico S. de R.L. de C.V (1) | Mexico | 46,769 | Manufacture of motors for automotive and industrial applications | |||
Nidec Shibaura (Zhejiang) Co., Ltd. | China | 42,994 | Manufacture of mid-size motors | |||
Nidec Electronics (Thailand) Co., Ltd. Rojana Factory (1) | Thailand | 42,280 | Manufacture of spindle motors for hard disk drives | |||
Nidec Tosok (Vietnam) Co., Ltd. (2) | Vietnam | 41,972 | Manufacture of fans and components for automobiles | |||
Nidec Electronics (Thailand) Co., Ltd. Rangsit Factory (1) | Thailand | 41,650 | Manufacture of spindle motors for hard disk drives | |||
Nidec (Zhejiang) Corporation | China | 41,000 | Manufacture of spindle motors for hard disk drives. Assembling of motors and accessories | |||
Nidec (Dong Guan) Limited (4) | China | 39,880 | Manufacture of small brushless DC motors for PC peripheral devices and office automation equipment | |||
Nidec Precision (Thailand) Co., Ltd. Rojana Factory (1) | Thailand | 37,630 | Manufacture of components for precision motors | |||
Nidec Subic Philippines Corporation (2) | Philippines | 35,627 | Manufacture of spindle motors for hard disk drives | |||
Nidec Motors & Actuators (Germany) GmbH (1) | Germany | 31,120 | Manufacture of motors for automotive and industrial applications | |||
Nidec Copal (Zhejiang) Co., Ltd. | China | 28,949 | Manufacture of components and lens cones for digital still cameras and mini-laboratory systems | |||
Nidec Shibaura Electronics (Thailand) Co., Ltd.(1) | Thailand | 28,476 | Manufacture of mid-size motors | |||
Nidec Copal (Thailand) Co., Ltd. (1) | Thailand | 28,306 | Manufacture of camera components and micro motors | |||
Nidec Copal Electronics (Zhejiang) Co., Ltd. | China | 26,000 | Manufacture of actuators | |||
Nidec Vietnam Corporation (2) | Vietnam | 21,740 | Manufacture of fan motors | |||
Nidec Sankyo Vietnam Corporation (2) | Vietnam | 20,824 | Manufacture of stepping motors | |||
Nidec Sankyo (Fuzhou) Corporation (4) | China | 20,540 | Manufacture of lens actuators | |||
Nidec-Shimpo (Zhejiang) Corporation | China | 20,310 | Manufacture of power transmission drives | |||
Nidec Precision (Thailand) Co., Ltd. Ayutthaya Factory (1) | Thailand | 19,560 | Manufacture of components for precision motors | |||
Nidec Sankyo Electronics (Shaoguan) Co., Ltd. (2) | China | 19,548 | Manufacture of actuator units | |||
Nidec Servo Vietnam Corporation (2) | Vietnam | 18,000 | Manufacture of brushless DC motors for office automation equipment and industrial instrument | |||
Nidec System Engineering (Zhejiang) Corporation | China | 17,390 | Manufacture of various system equipment | |||
Nidec Sankyo (H.K.) Co., Limited Shanghan Electric Plant (4) | China | 16,000 | Manufacture of DC motors | |||
PT. Japan Servo Batam (1) | Indonesia | 14,700 | Manufacture of mid-size motors | |||
Nidec Pigeon (H.K.) Co., Ltd. Dong Bao Precision Factory (4) | China | 14,254 | Manufacture and sales of audio equipment mechanism |
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Facility name | Location | Floor space (square meters) | Principal products and function | |||
Nidec Servo (Changzhou) Corporation (1) | China | 14,220 | Manufacture of mid-size motors | |||
Nidec Automobile Motor (Zhejiang) Corporation (4) | China | 13,745 | Manufacture of motors for automobiles | |||
Nidec Sankyo (Zhejiang) Corporation (4) | China | 13,383 | Manufacture of actuator units | |||
Nidec Nissin (Dalian) Corporation (4) | China | 13,260 | Manufacture of engineering plastic dies and moldings | |||
Nidec Sankyo Singapore Pte. Ltd. Batam Factory (4) | Indonesia | 13,213 | Manufacture of stepping motors and actuator units | |||
Nidec Nissin (Dongguan) Corporation (4) | China | 13,010 | Manufacture of plastic moldings |
(1) | We own both the property and the facilities. | |
(2) | We lease the property and own the facilities. | |
(3) | Nidec Philippines Corporation leases the property from Nidec Development Philippines Corporation, a joint venture company with Prudential BK established for the purpose of purchasing land in the Philippines. We own the facilities. | |
(4) | We lease both the property and the facilities. |
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• | Nidec Motors & Actuators | |
• | Nidec Motors & Actuators (Germany) GmbH | |
• | NMA Property Verwaltungsgesellschaft mbH | |
• | Nidec Motors & Actuators (Poland) Sp.Z o.o. | |
• | Nidec Motors & Actuators (Spain) S.A. | |
• | Nidec Motors & Actuators (USA) INC. | |
• | Nidec Motors & Actuators (Mexico) S. de R.L. de C.V. |
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U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Net sales | ¥ | 614,651 | ¥ | 728,756 | ¥ | 613,458 | $ | 6,245,119 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of products sold | 471,325 | 571,337 | 482,893 | 4,915,942 | ||||||||||||
Selling, general and administrative expenses | 45,409 | 50,168 | 51,795 | 527,283 | ||||||||||||
Research and development expenses | 31,981 | 29,709 | 26,964 | 274,499 | ||||||||||||
548,715 | 651,214 | 561,652 | 5,717,724 | |||||||||||||
Operating income | 65,936 | 77,542 | 51,806 | 527,395 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest and dividend income | 2,501 | 2,869 | 2,543 | 25,888 | ||||||||||||
Interest expense | (1,976 | ) | (2,369 | ) | (1,404 | ) | (14,293 | ) | ||||||||
Foreign exchange gain (loss), net | 1,815 | (13,218 | ) | (3,688 | ) | (37,545 | ) | |||||||||
Gain (loss) from marketable securities, net | 943 | 454 | (1,305 | ) | (13,285 | ) | ||||||||||
Other, net | (1,605 | ) | (1,023 | ) | (923 | ) | (9,396 | ) | ||||||||
1,678 | (13,287 | ) | (4,777 | ) | (48,631 | ) | ||||||||||
Income from continuing operations before income taxes | 67,614 | 64,255 | 47,029 | 478,764 | ||||||||||||
Income taxes | (17,945 | ) | (15,930 | ) | (12,464 | ) | (126,886 | ) | ||||||||
Income from continuing operations before minority interest and equity in earnings of affiliated companies | 49,669 | 48,325 | 34,565 | 351,878 | ||||||||||||
Minority interest in income of consolidated subsidiaries | 8,816 | 6,485 | 3,777 | 38,450 | ||||||||||||
Equity in net losses (income) of affiliated companies | 73 | (39 | ) | 48 | 489 | |||||||||||
Net income from continuing operations | 40,780 | 41,879 | 30,740 | 312,939 | ||||||||||||
Net loss on discontinued operations | (848 | ) | (723 | ) | (2,387 | ) | (24,300 | ) | ||||||||
Net income | ¥ | 39,932 | ¥ | 41,156 | ¥ | 28,353 | $ | 288,639 | ||||||||
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(Yen in millions) | ||||||||||||||||
2008 | 2009 | Inc/Dec | % | |||||||||||||
Net sales: | ||||||||||||||||
Small precision motors: | ||||||||||||||||
Hard disk drives spindle motors | ¥ | 223,068 | ¥ | 181,255 | ¥ | (41,813 | ) | (18.7 | )% | |||||||
Other small precision brushless DC motors | 92,359 | 73,187 | (19,172 | ) | (20.8 | )% | ||||||||||
Brushless DC fans | 46,525 | 37,345 | (9,180 | ) | (19.7 | )% | ||||||||||
Other small precision motors | 23,730 | 22,286 | (1,444 | ) | (6.1 | )% | ||||||||||
Sub-total | 385,682 | 314,073 | (71,609 | ) | (18.6 | )% | ||||||||||
Mid-size motors | 96,377 | 77,156 | (19,221 | ) | (19.9 | )% | ||||||||||
Machinery | 73,253 | 72,090 | (1,163 | ) | (1.6 | )% | ||||||||||
Electronic and optical components | 145,896 | 122,552 | (23,344 | ) | (16.0 | )% | ||||||||||
Others | 27,548 | 27,587 | 39 | 0.1 | % | |||||||||||
Consolidated total | ¥ | 728,756 | ¥ | 613,458 | ¥ | (115,298 | ) | (15.8 | )% | |||||||
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(Yen in millions) | ||||||||||||||||
2007 | 2008 | Inc/Dec | % | |||||||||||||
Net sales: | ||||||||||||||||
Small precision motors: | ||||||||||||||||
Hard disk drives spindle motors | ¥ | 198,196 | ¥ | 223,068 | ¥ | 24,872 | 12.5 | % | ||||||||
Other small precision brushless DC motors | 74,445 | 92,359 | 17,914 | 24.1 | ||||||||||||
Brushless DC fans | 38,656 | 46,525 | 7,869 | 20.4 | ||||||||||||
Other small precision motors | 6,684 | 23,730 | 17,046 | 255.0 | ||||||||||||
Sub-total | 317,981 | 385,682 | 67,701 | 21.3 | ||||||||||||
Mid-size motors | 57,389 | 96,377 | 38,988 | 67.9 | ||||||||||||
Machinery | 82,944 | 73,253 | (9,691 | ) | (11.7 | ) | ||||||||||
Electronic and optical components *1 | 129,635 | 145,896 | 16,261 | 12.5 | ||||||||||||
Others | 26,702 | 27,548 | 846 | 3.2 | ||||||||||||
Consolidated total | ¥ | 614,651 | ¥ | 728,756 | ¥ | 114,105 | 18.6 | % | ||||||||
*1 | As of December 31, 2008, we discontinued OPU business which had been included within “electronic and optical components”. Net sales of electronic and optical components for the fiscal year ended March 31, 2009 do not include the sales amounts of OPU business pursuant to the Statement of Financial Accounting Standards No.144, “Accounting for the impairment or disposal of Long-Lived Assets”. All prior period OPU amounts have also been excluded as to enable comparisons between the relevant net sales amount for the fiscal years ended March 31, 2007, 2008 and 2009. |
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Year ended March 31, | ||||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
(Yen in millions and U.S. dollars in thousands) | ||||||||||||||||
NCJ | ||||||||||||||||
Net sales to external customers | ¥ | 89,466 | ¥ | 88,954 | ¥ | 62,260 | $ | 633,819 | ||||||||
Net sales to other operating segments | 91,130 | 100,299 | 72,064 | 733,625 | ||||||||||||
�� | ||||||||||||||||
Sub total | 180,596 | 189,253 | 134,324 | 1,367,444 | ||||||||||||
NET | ||||||||||||||||
Net sales to external customers | 67,754 | 95,859 | 80,247 | 816,930 | ||||||||||||
Net sales to other operating segments | 21,486 | 32,334 | 31,125 | 316,858 | ||||||||||||
Sub total | 89,240 | 128,193 | 111,372 | 1,133,788 | ||||||||||||
NCC | ||||||||||||||||
Net sales to external customers | 14,802 | 14,161 | 18,305 | 186,348 | ||||||||||||
Net sales to other operating segments | 5,371 | 10,776 | 2,624 | 26,713 | ||||||||||||
Sub total | 20,173 | 24,937 | 20,929 | 213,061 | ||||||||||||
NCD | ||||||||||||||||
Net sales to external customers | 3,637 | 4,190 | 7,776 | 79,161 |
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Year ended March 31, | ||||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
(Yen in millions and U.S. dollars in thousands) | ||||||||||||||||
Net sales to other operating segments | 46,828 | 43,849 | 27,310 | 278,021 | ||||||||||||
Sub total | 50,465 | 48,039 | 35,086 | 357,182 | ||||||||||||
NCS | ||||||||||||||||
Net sales to external customers | 49,877 | 45,472 | 27,118 | 276,066 | ||||||||||||
Net sales to other operating segments | 347 | 227 | 205 | 2,087 | ||||||||||||
Sub total | 50,224 | 45,699 | 27,323 | 278,153 | ||||||||||||
NCH | ||||||||||||||||
Net sales to external customers | 34,738 | 39,359 | 37,761 | 384,414 | ||||||||||||
Net sales to other operating segments | 4,344 | 4,298 | 5,105 | 51,970 | ||||||||||||
Sub total | 39,082 | 43,657 | 42,866 | 436,384 | ||||||||||||
NCF | ||||||||||||||||
Net sales to external customers | 5,382 | 5,833 | 7,517 | 76,524 | ||||||||||||
Net sales to other operating segments | 42,845 | 40,649 | 22,669 | 230,775 | ||||||||||||
Sub total | 48,227 | 46,482 | 30,186 | 307,299 | ||||||||||||
NSNK | ||||||||||||||||
Net sales to external customers | 52,361 | 46,259 | 51,035 | 519,546 | ||||||||||||
Net sales to other operating segments | 10,600 | 12,092 | 11,001 | 111,992 | ||||||||||||
Sub total | 62,961 | 58,351 | 62,036 | 631,538 | ||||||||||||
NCPL | ||||||||||||||||
Net sales to external customers | 63,008 | 63,779 | 53,090 | 540,466 | ||||||||||||
Net sales to other operating segments | 8,460 | 6,594 | 6,727 | 68,482 | ||||||||||||
Sub total | 71,468 | 70,373 | 59,817 | 608,948 | ||||||||||||
NTSC | ||||||||||||||||
Net sales to external customers | 22,310 | 25,769 | 22,644 | 230,520 | ||||||||||||
Net sales to other operating segments | 357 | 293 | 211 | 2,148 | ||||||||||||
Sub total | 22,667 | 26,062 | 22,855 | 232,668 | ||||||||||||
NCEL | ||||||||||||||||
Net sales to external customers | 19,849 | 22,392 | 19,666 | 200,204 | ||||||||||||
Net sales to other operating segments | 3,133 | 4,177 | 5,843 | 59,483 | ||||||||||||
Sub total | 22,982 | 26,569 | 25,509 | 259,687 | ||||||||||||
NSRV | ||||||||||||||||
Net sales to external customers | — | 25,378 | 20,029 | 203,899 | ||||||||||||
Net sales to other operating segments | — | 3,549 | 4,508 | 45,892 | ||||||||||||
Sub total | — | 28,927 | 24,537 | 249,791 | ||||||||||||
NSBC | ||||||||||||||||
Net sales to external customers | 16,146 | 17,286 | 14,600 | 148,631 | ||||||||||||
Net sales to other operating segments | 3,439 | 3,633 | 3,053 | 31,080 | ||||||||||||
Sub total | 19,585 | 20,919 | 17,653 | 179,711 | ||||||||||||
NSCJ | ||||||||||||||||
Net sales to external customers | 10,748 | 11,163 | 9,389 | 95,582 | ||||||||||||
Net sales to other operating segments | 2,448 | 2,455 | 1,746 | 17,775 | ||||||||||||
Sub total | 13,196 | 13,618 | 11,135 | 113,357 | ||||||||||||
NMA | ||||||||||||||||
Net sales to external customers | 9,079 | 36,352 | 24,729 | 251,746 | ||||||||||||
Net sales to other operating segments | — | 284 | 15 | 153 | ||||||||||||
Sub total | 9,079 | 36,636 | 24,744 | 251,899 | ||||||||||||
NNSN |
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Year ended March 31, | ||||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
(Yen in millions and U.S. dollars in thousands) | ||||||||||||||||
Net sales to external customers | 10,895 | 10,847 | 9,738 | 99,135 | ||||||||||||
Net sales to other operating segments | 762 | 826 | 593 | 6,037 | ||||||||||||
Sub total | 11,657 | 11,673 | 10,331 | 105,172 | ||||||||||||
All Others | ||||||||||||||||
Net sales to external customers | 136,867 | 170,670 | 133,792 | 1,362,028 | ||||||||||||
Net sales to other operating segments | 189,726 | 223,080 | 185,151 | 1,884,872 | ||||||||||||
Sub total | 326,593 | 393,750 | 318,943 | 3,246,900 | ||||||||||||
Total | ||||||||||||||||
Net sales to external customers | 606,919 | 723,723 | 599,696 | 6,105,019 | ||||||||||||
Net sales to other operating segments | 431,276 | 489,415 | 379,950 | 3,867,963 | ||||||||||||
Adjustments (*) | 7,732 | 5,033 | 13,762 | 140,100 | ||||||||||||
Intersegment elimination | (431,276 | ) | (489,415 | ) | (379,950 | ) | 3,867,963 | |||||||||
Consolidated total (net sales) | ¥ | 614,651 | ¥ | 728,756 | ¥ | 613,458 | $ | 6,245,119 | ||||||||
(*) | See Note 27 to the consolidated financial statements included in this annual report. |
Year ended March 31, | ||||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
(Yen in millions and U.S. dollars in thousands) | ||||||||||||||||
Operating income or loss: | ||||||||||||||||
NCJ | ¥ | 11,241 | ¥ | 13,980 | ¥ | 7,315 | $ | 74,468 | ||||||||
NET | 10,822 | 12,606 | 15,629 | 159,106 | ||||||||||||
NCC | 275 | 1,040 | (324 | ) | (3,298 | ) | ||||||||||
NCD | 4,560 | 4,720 | 2,855 | 29,064 | ||||||||||||
NCS | 1,545 | 1,231 | 182 | 1,853 | ||||||||||||
NCH | 386 | 576 | 554 | 5,640 | ||||||||||||
NCF | 4,407 | 4,129 | 2,321 | 23,628 | ||||||||||||
NSNK | 8,198 | 4,608 | 4,473 | 45,536 | ||||||||||||
NCPL | 4,056 | 3,415 | 2,102 | 21,399 | ||||||||||||
NTSC | 1,430 | 1,643 | 745 | 7,584 | ||||||||||||
NCEL | 2,688 | 3,631 | 2,046 | 20,829 | ||||||||||||
NSRV | — | 372 | (225 | ) | (2,291 | ) | ||||||||||
NSBC | 136 | (97 | ) | (281 | ) | (2,861 | ) | |||||||||
NSCJ | 1,412 | 1,182 | 201 | 2,046 | ||||||||||||
NMA | 59 | 555 | (728 | ) | (7,411 | ) | ||||||||||
NNSN | 545 | 610 | 298 | 3,034 | ||||||||||||
All Others | 13,046 | 22,663 | 13,463 | 137,056 | ||||||||||||
Total | 64,806 | 76,864 | 50,626 | 515,382 | ||||||||||||
Adjustments (*) | 1,130 | 678 | 1,180 | 12,015 | ||||||||||||
Consolidated total | ¥ | 65,936 | ¥ | 77,542 | ¥ | 51,806 | $ | 527,397 | ||||||||
(*) | See Note 27 to the consolidated financial statements included in this annual report. |
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• | it is highly susceptible to change from period to period because it requires our management to make assumptions about future financial condition and cash flows of investees; and | ||
• | the impact that recognizing an impairment would have on the total assets reported on our balance sheet as well as our operating income would be material. |
Year ended March 31, | ||||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
(Yen in millions and U.S. dollars in thousands) | ||||||||||||||||
Other-than-temporary losses on marketable securities | ¥ | 11 | ¥ | 287 | ¥ | 1,617 | $ | 16,461 | ||||||||
Year ended March 31, | ||||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
(Yen in millions and U.S. dollars in thousands) | ||||||||||||||||
Provision for doubtful accounts, net of reversal | ¥ | 117 | ¥ | 312 | ¥ | 349 | $ | 3,552 | ||||||||
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• | significant underperformance relative to expected historical or projected future operating results; |
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• | significant changes in the manner of our use of the acquired assets or the strategy for our overall business; | ||
• | significant negative industry or economic trends; | ||
• | significant decline in the stock price of the acquired entity for a sustained period; and | ||
• | market capitalization of the acquired entity relative to its net book value. |
Yen in millions | ||||||||
Effect on pre-tax income | Effect on PBO | |||||||
For the year ending March 31, 2010 | As of March 31, 2009 | |||||||
Discount rates | ||||||||
0.5% decrease | ¥ | (43 | ) | ¥ | 1,622 | |||
0.5% increase | 42 | (1,509 | ) | |||||
Expected rate of return on plan assets | ||||||||
0.5% decrease | ¥ | (37 | ) | |||||
0.5% increase | 37 | |||||||
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• | payments for the purchase of parts and raw materials; | ||
• | payments for the purchase of equipment for our production facilities; | ||
• | selling, general and administrative expenses such as research and development expenses; | ||
• | payments for the purchase of shares of companies targeted under our acquisitions strategy; | ||
• | employees’ salaries, wages and other payroll costs; | ||
• | repayment of short-term debt; | ||
• | payments of dividends to our shareholders; and | ||
• | taxes. |
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• | ¥6,337 million of positive impact from an increase in depreciation compared to previous fiscal year; | ||
• | ¥7,937 million of positive impact from an increase in foreign currency adjustments compared to previous fiscal year; and | ||
• | ¥7,140 million of positive impact from changes in operating assets and liabilities compared to previous fiscal year. |
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• | the development and improvement of basic motor characteristics. For example, in order to achieve a higher transfer rate of memory written on hard disks, higher rotation speeds are required of spindle motors. As a result, spindle motors which were formerly required to generate 5,400 rotations per minute are now required to generate 7,200 to 15,000 rotations per minute. These higher speeds can, however, produce more vibration. Such vibration, as well as the higher density of disks, can disrupt the read-write function of hard disk drives. Accordingly, rotation precision has become more important, and we are conducting research and development with a view to improving such precision; | ||
• | the improvement of analysis and material technologies, including (1) improving technologies for investigating the impact of spindle motors on hard disks, (2) improving the cleanliness of materials and of manufacturing technology and (3) research into the development of uses of new materials for spindle motors; | ||
• | the development and improvement of spindle motors for DVDs; | ||
• | the development and improvement of DC fan motors with a high airflow capacity that helps disperse heat inside end products such as computers, game machines and audio-visual equipments; | ||
• | the development and improvement of optical components including shutters and lens unit for digital cameras and lens products for blue-ray, vibration motors, stepping motors, dye sublimation printer, printer for IC cards and geared motors by Nidec Copal; | ||
• | the development and improvement of actuator, pressure sensors and radiofrequency, or RF, components by Nidec Copal Electronics; | ||
• | the development and improvement of LCD panel handling robots for large LCD, micro lens actuator units for mobile phone and card readers by Nidec Sankyo; and | ||
• | the development and improvement of compact motors in automobiles for comfort and safety, such as seat adjuster, sunroof closure, windows closure, engine cooling, and ABS by Nidec Motors and Actuators. |
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Payments Due by Period | ||||||||||||||||||||
Less than | After | |||||||||||||||||||
Contractual Obligations | Total | 1 year | 2-3 years | 4-5 years | 5 years | |||||||||||||||
Long-term Debt | ¥ | 663 | ¥ | 4 | ¥ | 349 | ¥ | 68 | ¥ | 242 | ||||||||||
Capital Lease Obligations | 3,798 | 1,879 | 1,600 | 311 | 8 | |||||||||||||||
Interest on debt *1 | 207 | 115 | 79 | 8 | 5 | |||||||||||||||
Operating Leases | 4,499 | 1,000 | 1,582 | 1,121 | 796 | |||||||||||||||
Purchase Commitments for fixed assets | 9,104 | 9,104 | — | — | — | |||||||||||||||
Total Contractual Cash Obligations | 18,271 | 12,102 | ¥ | 3,610 | ¥ | 1,508 | ¥ | 1,051 | ||||||||||||
Contribution under pension plans *2 | ¥ | 2,338 | ¥ | 2,338 | — | — | — | |||||||||||||
Amount of Commitment Expiration per Period | ||||||||||||||||||||
Total amounts | Less than | Over | ||||||||||||||||||
Other Commercial Commitments | committed | 1 year | 2-3 years | 4-5 years | 5 years | |||||||||||||||
Guarantees | ¥ | 186 | ¥ | 41 | ¥ | 28 | ¥ | 26 | ¥ | 91 | ||||||||||
Total Commercial Commitments | ¥ | 186 | ¥ | 41 | ¥ | 28 | ¥ | 26 | ¥ | 91 | ||||||||||
Payments Due by Period | ||||||||||||||||||||
Less than | After | |||||||||||||||||||
Contractual Obligations | Total | 1 year | 2-3 years | 4-5 years | 5 years | |||||||||||||||
Long-term Debt | $ | 6,750 | $ | 41 | $ | 3,553 | $ | 692 | $ | 2,464 | ||||||||||
Capital Lease Obligations | 38,664 | 19,128 | 16,288 | 3,166 | 82 | |||||||||||||||
Interest on debt *1 | 2,107 | 1,171 | 804 | 81 | 51 | |||||||||||||||
Operating Leases | 45,801 | 10,180 | 16,105 | 11,412 | 8,104 | |||||||||||||||
Purchase Commitments for fixed assets | 92,680 | 92,680 | — | — | — | |||||||||||||||
Total Contractual Cash Obligations | 186,002 | 123,200 | $ | 36,750 | $ | 15,351 | $ | 10,701 | ||||||||||||
Contribution under pension plans *2 | $ | 23,801 | $ | 23,801 | — | — | — | |||||||||||||
Amount of Commitment Expiration per Period | ||||||||||||||||||||
Total amounts | Less than | Over | ||||||||||||||||||
Other Commercial Commitments | committed | 1 year | 2-3 years | 4-5 years | 5 years | |||||||||||||||
Guarantees | $ | 1,894 | $ | 417 | $ | 285 | $ | 265 | $ | 927 | ||||||||||
Total Commercial Commitments | $ | 1,894 | $ | 417 | $ | 285 | $ | 265 | $ | 927 | ||||||||||
*1 | Interests at variable interest rates are assumed based on the current applicable rate of 2.0%. | |
*2 | Amounts are only available for payments due in less than one year. |
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Number of | ||||||||||||||
Nidec shares | Percentage of | |||||||||||||
Month in which | owned as of | common stock | ||||||||||||
current term | March 31, 2009 | outstanding as of | ||||||||||||
Name | Position | Date of birth | expires | (in thousands) | March 31, 2009 | |||||||||
Shigenobu Nagamori | Representative Director, President and Chief Executive Officer | August 28, 1944 | June 2010 | 20,067 | 14.4 | % | ||||||||
Hiroshi Kobe | Representative Director, Executive Vice President and Chief Operating Officer | March 28, 1949 | June 2010 | 236 | * | |||||||||
Yasunobu Toriyama | Member of the Board, Executive Vice President | September 18, 1938 | June 2010 | 15 | * | |||||||||
Kenji Sawamura | Member of the Board, Executive Vice President | February 15, 1942 | June 2010 | 8 | * | |||||||||
Juntaro Fujii | Member of the Board, Executive Vice President | February 20, 1945 | June 2010 | 2 | * | |||||||||
Yasuo Hamaguchi | Member of the Board, First Senior Vice President | September 27, 1949 | June 2010 | 275 | * | |||||||||
Tadaaki Hamada | Member of the Board, First Senior Vice President | August 14, 1948 | June 2010 | 2 | * | |||||||||
Masuo Yoshimatsu | Member of the Board, Senior Vice President and Chief Financial Officer | April 28, 1958 | June 2010 | 3 | * | |||||||||
Tetsuo Inoue | Member of the Board, Vice President | June 22, 1948 | June 2010 | 6 | * | |||||||||
Hideo Asahina | Corporate Auditor | March 28, 1938 | June 2011 | 1 | * | |||||||||
Takashi Iwata | Corporate Auditor | April 9, 1947 | June 2013 | 2 | * | |||||||||
Shiro Kuniya | Corporate Auditor | February 22, 1957 | June 2010 | — | * | |||||||||
Yoshiro Kitano | Corporate Auditor | September 30, 1935 | June 2010 | — | * | |||||||||
Susumu Ono | Corporate Auditor | November 12, 1948 | June 2011 | — | * |
Notes: | ||
(1) | “—” represents no beneficial ownership in any Nidec shares. | |
(2) | The asterisk represents beneficial ownership of less than 1%. |
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Number of | ||||||||||||||
Nidec shares | Percentage of | |||||||||||||
Month in which | owned as of | common stock | ||||||||||||
current term | March 31, 2009 | outstanding as of | ||||||||||||
Name | Position | Date of birth | expires | (in thousands) | March 31, 2009 | |||||||||
Norimasa Goto | Senior Vice President | March 1, 1947 | June 2010 | 0 | * | |||||||||
Seiichi Hattori | Senior Vice President | December 30, 1953 | June 2010 | 20 | * | |||||||||
Seizaburo Kawaguchi | Senior Vice President | October 27, 1953 | June 2010 | 21 | * | |||||||||
Kiyoyoshi Takegami | Senior Vice President | December 28, 1954 | June 2010 | 49 | * | |||||||||
Tsuyoshi Takahashi | Senior Vice President | August 10, 1945 | June 2010 | 0 | * | |||||||||
Seiichi Takeda | Vice President | March 3, 1950 | June 2010 | — | * | |||||||||
Masahiro Hishida | Vice President | October 23, 1954 | June 2010 | 0 | * | |||||||||
Takashi Watanuki | Vice President | November 19, 1952 | June 2010 | 0 | * | |||||||||
Osamu Narumiya | Vice President | August 6, 1951 | June 2010 | 0 | * | |||||||||
Tadashi Matsumoto | Vice President | August 11, 1952 | June 2010 | 0 | * | |||||||||
Hitoshi Inoue | Vice President | December 24, 1952 | June 2010 | 1 | * | |||||||||
Genzo Arakawa | Vice President | June 18, 1949 | June 2010 | 0 | * | |||||||||
Toshihiko Miyabe | Vice President | June 16, 1958 | June 2010 | 4 | * | |||||||||
Hitoshi Tatsuno | Vice President | January 8, 1959 | June 2010 | 5 | * | |||||||||
Kuniyasu Tampo | Vice President | January 21, 1960 | June 2010 | 8 | * | |||||||||
Tatsuya Nishimoto | Vice President | October 20,1956 | June 2010 | — | * |
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Number of | ||||||||||||||
Nidec shares | Percentage of | |||||||||||||
Month in which | owned as of | common stock | ||||||||||||
current term | March 31, 2009 | outstanding as of | ||||||||||||
Name | Position | Date of birth | expires | (in thousands) | March 31, 2009 | |||||||||
Mitsuru Tsuyoshi | Vice President | November 1,1949 | June 2010 | 1 | * | |||||||||
Chiaki Sano | Vice President | November 2,1948 | June 2010 | — | * |
Notes: | ||
(1) | “—” represents no beneficial ownership in any Nidec shares, and “0” represents beneficial ownership in more than 0 but less than 1,000 shares. | |
(2) | The asterisk represents beneficial ownership of less than 1%. |
Supervising DCM (direct current motor) and Fan business
(Representative Director and Chairman, Nidec (New Territories) Co., Ltd.;
Member of the Board and Vice Chairman, Nidec (Dalian) Limited, Nidec (Dongguan)
Limited and Nidec Vietnam Corporation)
Supervising sales departments
(Representative Director and Chairman, Nidec (H.K.) Co., Ltd.)
(Member of the Board, Chairman & CEO, and President, Nidec Brilliant Co., Ltd.)
Assisting SPM business operations
(Representative Director and Chairman, Nidec (Zhejiang) Corporation)
Supervising SPM Business Development Technology;
General Manager, Central Technical Laboratory
(Member of the Board and Executive Vice President, Nidec Motors & Actuators)
(Member of the Board and First Senior Vice President, and supervising Sales Dept. of, Nidec
Shibaura Corporation and Nidec Power Motor Corporation; Member of the Board and First Senior Vice President, and General Manager, Sales Div., Nidec Servo Corporation)
Supervising A/B business
(Member of the Board and Vice Chairman, Nidec Automobile Motor (Zhejiang) Corporation)
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In charge of supervising Human Resources Dept. and General Affairs Dept., Tokyo office
(Member of the Board and First Senior Vice President, Nidec-Read Corporation;
General Manager, Administration Div., General Affairs Dept., and Corporate Strategy Office.)
General Manager, Shiga Technical Center
(Member of the Board and Senior Vice President, Nidec Servo Corporation;
General Manager, Business Administration Div., and in charge of supervising Corporate
Planning Dept.)
(Representative Director and President, Nidec Philippines Corporation)
(Member of the Board and President, Nidec (Dalian) Limited)
(Representative Director and President, Nidec Electronics (Thailand) Co., Ltd.)
(Member of the Board and First Senior Vice President, and General Manager, Sales Div.
Nidec-Shimpo Corporation)
(Director and President, Nidec (H.K.) Co., Ltd.;
Representative Director and President, Nidec Taiwan Corporation;
Representative Director and President, Nidec (Shanghai) International Trading Co., Ltd.;
Member of the Board and President, Nidec (New Territories) Co., Ltd.)
General Manager, Finance Dept.
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As of March 31, | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
Japan | 7,989 | 8,909 | 8,918 | |||||||||
North America | 1,146 | 1,052 | 731 | |||||||||
Asia (other than Japan) | 79,208 | 86,162 | 66,143 | |||||||||
Europe | 727 | 774 | 782 | |||||||||
Total | 89,070 | 96,897 | 76,574 | |||||||||
Note: | The number of employees decreased by 20,322 compared with the previous year mainly due to decreased production by existing production sites to meet with decreased demand overseas. |
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Number of shares of | Percentage of | |||||||
common stock owned | common stock | |||||||
Shareholders | (thousands) | outstanding | ||||||
Shigenobu Nagamori * | 20,067 | 14.4 | % | |||||
Japan Trustee Service Bank, Ltd. (trust account) | 18,314 | 13.1 | % | |||||
The Master Trust Bank of Japan, Ltd. (trust account) | 12,592 | 9.0 | % | |||||
Mitsubishi UFJ Financial Group, Inc. ** | 8,193 | 5.8 | % | |||||
*: | As of March 31, 2009, Mr. Shigenobu Nagamori, our CEO, directly held of record 8.5% and, indirectly through S.N. Kohsan, an entity wholly owned by Mr. Nagamori, held of record 3.9% of our outstanding shares. Mr. Nagamori’s immediate family member held an additional 2.0% of our outstanding shares as of the same date. | |
**: | As of March 31, 2009, and based on the substantial shareholding report filed on that date by Mitsubishi UFJ Financial Group, Inc. (“Mitsubishi”) with the Financial Services Agency in Japan, which disclosed its and its affiliates’ beneficial ownership of shares of our common stock. | |
According to a substantial shareholding report, dated June 1, 2009, filed under the Financial Instruments and Exchange Law of Japan, Mitsubishi UFJ Financial Group, Inc. held 8,854,644 shares of our common stock as of May 25, 2009, representing approximately 6.3% of our total issued shares as of that date. We have not been able independently to confirm such shareholding. |
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U.S. dollars in | ||||||||||||||||
Yen in millions | thousands | |||||||||||||||
For the year ended March 31 | ||||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
S.N. Kohsan *1 | ¥ | (3 | ) | ¥ | (3 | ) | ¥ | (3 | ) | $ | (31 | ) | ||||
Green Kohsan *1 | (10 | ) | (10 | ) | (10 | ) | (102 | ) | ||||||||
Hamaguchi Denki Seisakusho*1 | (24 | ) | (21 | ) | (14 | ) | (143 | ) | ||||||||
Hamaguchi Denki Seisakusho*2 | ¥ | 7 | ¥ | 6 | ¥ | 4 | $ | 41 | ||||||||
Notes: | ||
*1: | Total amount paid by us | |
*2: | Total amount paid to us |
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1. Reason for share repurchase: | The repurchase was made to facilitate S.N. Kohsan’s sale of shares in us to obtain the funds necessary to repay the loan discussed above, and thereby bring Nidec into compliance with Section 402 of the Sarbanes-Oxley Act of 2002 promptly. The share repurchase was within the parameters established in the resolution described above and the repurchase was structured in a manner intended to give all shareholders the opportunity to have their shares repurchased by Nidec, on a pro rata basis, at the same time and at the same price. Accordingly, on February 10, 2009, Nidec publicly announced its intention to repurchase on J-NET, on the morning of February 12, 2009, 3,500,000 shares at the closing price on the market on February 10, 2009. Based on the offers received, Nidec repurchased 2,917,800 of its shares from S.N. Kohsan and 582,200 of its shares from other shareholders. | |
2. Class of shares repurchased: | Common stock | |
3. Total number of shares repurchased: | 3,500,000 shares | |
4. Total amount of repurchase: | ¥15,435 million (representing the closing price of ¥4,410 per share on the Osaka Securities Exchange on February 10, 2009) | |
5. Method of repurchase: | Repurchased through J-NET, the Osaka Securities Exchange |
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Dividends per share | ||||||||
Record date | Yen | U.S. dollar | ||||||
September 30, 2004 | ¥ | 10.0 | * | $ | 0.095 | |||
March 31, 2005 ** | 12.5 | * | 0.115 | |||||
September 30, 2005 | 12.5 | * | 0.104 | |||||
March 31, 2006 ** | 20.0 | 0.173 | ||||||
September 30, 2006 | 20.0 | 0.172 | ||||||
March 31, 2007 | 25.0 | 0.206 | ||||||
September 30, 2007 | 25.0 | 0.224 | ||||||
March 31, 2008 | 30.0 | 0.280 | ||||||
September 30, 2008 | 30.0 | 0.325 | ||||||
March 31, 2009 | ¥ | 30.0 | $ | 0.304 | ||||
* | A two-for-one stock split on the Company’s common stock effective November 18, 2005 was implemented for shareholders of record as of September 30, 2005. The dividends per share have been accordingly adjusted to reflect the effect of the stock split. | |
** | Our Board of Directors recommended the dividend to be paid the end of each fiscal year. The recommended dividend was then approved by shareholders at the general meeting of shareholders in June of each year. Under the Company Law of Japan (which replaced the Commercial Code in May 2006), however, our Board of Directors may, in certain circumstances, pay dividends without shareholder approval. |
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Average | ||||||||||||||||||||
Daily | ||||||||||||||||||||
Price Per Share | Trading | Nikkei Stock Average | ||||||||||||||||||
High | Low | Volume | High | Low | ||||||||||||||||
(in | ||||||||||||||||||||
thousands | ||||||||||||||||||||
of shares) | ||||||||||||||||||||
Year ended March 31, | ||||||||||||||||||||
2005 | ¥ | 6,675 | ¥ | 4,795 | 452 | ¥ | 12,163.89 | ¥ | 10,505.05 | |||||||||||
2006 | 10,930 | 5,735 | 612 | 17,059.66 | 10,825.39 | |||||||||||||||
2007 | 9,660 | 7,030 | 560 | 18,215.35 | 14,218.60 | |||||||||||||||
2008 | 8,730 | 6,080 | 784 | 18,261.98 | 11,787.51 | |||||||||||||||
First Quarter | 7,860 | 6,890 | 658 | 18,240.30 | 17,028.41 | |||||||||||||||
Second Quarter | 8,220 | 6,730 | 869 | 18,261.98 | 15,273.68 | |||||||||||||||
Third Quarter | 8,730 | 7,380 | 700 | 17,458.98 | 14,837.66 | |||||||||||||||
Fourth Quarter | 8,020 | 6,080 | 916 | 14,691.41 | 11,787.51 | |||||||||||||||
2009 | 8,260 | 3,340 | 938 | 14,489.44 | 7,054.98 | |||||||||||||||
First Quarter | 8,260 | 6,280 | 769 | 14,489.44 | 12,656.42 | |||||||||||||||
Second Quarter | 7,920 | 6,380 | 714 | 13,603.31 | 11,259.86 | |||||||||||||||
Third Quarter | 6,500 | 3,340 | 1,180 | 11,368.26 | 7,162.90 | |||||||||||||||
Fourth Quarter | 4,710 | 3,550 | 1,105 | 9,239.24 | 7,054.98 | |||||||||||||||
Calendar period | ||||||||||||||||||||
December 2008 | 4,540 | 3,340 | 1,286 | 8,859.56 | 7,863.69 | |||||||||||||||
January 2009 | 4,350 | 3,550 | 1,360 | 9,239.24 | 7,682.14 | |||||||||||||||
February 2009 | 4,650 | 3,880 | 1,116 | 8,076.62 | 7,268.56 | |||||||||||||||
March 2009 | 4,710 | 3,930 | 864 | 8,636.33 | 7,054.98 | |||||||||||||||
April 2009 | 5,410 | 4,350 | 972 | 8,964.11 | 8,351.91 | |||||||||||||||
May 2009 | ¥ | 5,650 | ¥ | 4,980 | 771 | ¥ | 9,522.50 | ¥ | 8,977.37 | |||||||||||
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Average | ||||||||||||||||||||
Daily | Dow Jones Industrial | |||||||||||||||||||
Price Per ADS | Trading | Average | ||||||||||||||||||
High | Low | Volume | High | Low | ||||||||||||||||
(in ADSs) | ||||||||||||||||||||
Year ended March 31, | ||||||||||||||||||||
2005 | $ | 16.20 | $ | 11.05 | 10,802 | $ | 10,940.55 | $ | 9,749.99 | |||||||||||
2006 | 23.32 | 13.01 | 22,038 | 11,317.43 | 10,012.36 | |||||||||||||||
2007 | 20.82 | 15.28 | 24,161 | 12,786.64 | 10,706.14 | |||||||||||||||
2008 | 19.73 | 14.11 | 29,366 | 14,164.53 | 11,740.15 | |||||||||||||||
First Quarter | 16.53 | 14.25 | 22,054 | 13,676.32 | 12,382.30 | |||||||||||||||
Second Quarter | 17.85 | 14.11 | 36,392 | 14,000.41 | 12,845.78 | |||||||||||||||
Third Quarter | 19.73 | 16.87 | 20,114 | 14,164.53 | 12,743.44 | |||||||||||||||
Fourth Quarter | 18.30 | 14.80 | 39,367 | 13,056.72 | 11,740.15 | |||||||||||||||
2009 | 19.47 | 8.87 | 33,727 | 13,058.20 | 6,547.05 | |||||||||||||||
First Quarter | 19.47 | 16.12 | 20,969 | 13,058.20 | 11,346.51 | |||||||||||||||
Second Quarter | 18.13 | 14.69 | 23,227 | 11,782.35 | 10,365.45 | |||||||||||||||
Third Quarter | 15.43 | 8.87 | 49,230 | 10,831.07 | 7,552.29 | |||||||||||||||
Fourth Quarter | 12.81 | 9.70 | 41,866 | 9,034.69 | 6,547.05 | |||||||||||||||
Calendar period | ||||||||||||||||||||
December 2008 | 11.34 | 8.87 | 43,950 | 8,934.18 | 8,149.09 | |||||||||||||||
January 2009 | 12.05 | 9.82 | 44,140 | 9,034.69 | 7,949.09 | |||||||||||||||
February 2009 | 12.81 | 9.90 | 46,995 | 8,280.59 | 7,062.93 | |||||||||||||||
March 2009 | 11.96 | 9.70 | �� | 35,368 | 7,924.56 | 6,547.05 | ||||||||||||||
April 2009 | 13.90 | 11.33 | 29,648 | 8,185.73 | 7,761.60 | |||||||||||||||
May 2009 | $ | 14.44 | $ | 13.02 | 34,695 | $ | 8,574.65 | $ | 8,212.41 | |||||||||||
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• | manufacture, sales and development of electric, electronic, precision, industrial and other equipment, machines, drives, components and other products, | ||
• | insurance agent business, | ||
• | sales, purchase, lease, brokering, and management of moveable and real property, | ||
• | travel agent and advertising businesses, and | ||
• | any other businesses related or incidental to the foregoing businesses mentioned above. |
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(a) | the normal term of office of our Directors terminates on or prior to the date of conclusion of the ordinary general meeting of shareholders relating to the last fiscal year ending within the period of one year from the election of the Directors; and | ||
(b) | our non-consolidated annual financial statements and certain documents for the last fiscal year present fairly our assets and profit or loss, as required by the ordinances of the Ministry of Justice. |
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“A” = | the total amount of ‘other capital surplus’ and ‘other retained earnings’, each such amount being that appearing on our non-consolidated balance sheet as of the end of the last fiscal year; | ||
“B” = | (if we have disposed of our treasury stock after the end of the last fiscal year) the amount of the consideration for such treasury stock received by us less the book value thereof; | ||
“C” = | (if we have reduced our stated capital after the end of the last fiscal year) the amount of such reduction less the portion thereof that has been transferred to additional paid-in capital or legal reserve (if any); | ||
“D” = | (if we have reduced our additional paid-in capital or legal reserve after the end of the last fiscal year) the amount of such reduction less the portion thereof that has been transferred to stated capital (if any); | ||
“E” = | (if we have cancelled our treasury stock after the end of the last fiscal year) the book value of such treasury stock; | ||
“F” = | (if we have distributed Surplus to our shareholders after the end of the last fiscal year) the total book value of the Surplus so distributed; | ||
“G” = | certain other amounts set forth in the ordinances of the Ministry of Justice, including (if we have reduced Surplus and increased our stated capital, additional paid-in capital or legal reserve after the end of the last fiscal year) the amount of such reduction and (if we have distributed Surplus to our shareholders after the end of the last fiscal year) the amount set aside in our additional paid-in capital or legal reserve (if any) as required by the ordinances of the Ministry of Justice. |
(a) | the book value of our treasury stock; | ||
(b) | the amount of consideration for our treasury stock disposed of by us after the end of the last fiscal year; and | ||
(c) | certain other amounts set forth in the ordinances of the Ministry of Justice, including (if the sum of one-half of good will and the deferred assets exceeds the total of stated capital, |
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additional paid-in capital and legal reserve, each such amount being that appearing on our non-consolidated balance sheet as of the end of the last fiscal year) all or certain part of such exceeding amount as calculated in accordance with the ordinances of the Ministry of Justice. |
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• | the closing price of the shares reported by the Osaka Securities Exchange Co., Ltd. (the “Osaka Securities Exchange”) on the day when the request to purchase is made; or | ||
• | if no sale takes place on such stock exchange on that day, the closing price of the shares reported by the Tokyo Stock Exchange, Inc. (the “Tokyo Stock Exchange”) on such day; or | ||
• | if no sale takes place on either of such stock exchanges on such day, the price at which the shares are first traded on the Osaka Securities Exchange on the next day; or | ||
• | if no sale takes place on such stock exchange on such day, the price at which the shares are first traded on the Tokyo Stock Exchange on such day; or | ||
• | if no sale takes place on either of such stock exchanges on such day, the price at which the shares are first traded on either of such stock exchanges, provided that, if the shares are traded on both such exchanges on the same day, the relevant price shall be the price at which the shares are first traded on the Osaka Securities Exchange. |
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• | to receive distribution of dividends; | ||
• | to receive shares, cash or other assets in case of consolidation or split of shares, exchange or transfer of shares or corporate merger; | ||
• | to be allotted rights to subscribe for new shares and other stock acquisition rights when such rights are granted to shareholders; and | ||
• | to participate in any distribution of surplus assets upon liquidation. |
(a) | reduction of the stated capital; | ||
(b) | amendment to the Articles of Incorporation; | ||
(c) | establishment of a 100% parent-subsidiary relationship by way of share exchange or share transfer; | ||
(d) | dissolution, merger or consolidation; |
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(e) | company split; | ||
(f) | transfer of the whole or an important part of our business; | ||
(g) | taking over of the whole of the business of any other corporation; | ||
(h) | removal of a Corporate Auditor; | ||
(i) | any issuance of shares or transfer of existing shares as treasury stock to persons other than the shareholders at a “specially favorable” price; | ||
(j) | any issuance of stock acquisition rights (including those incorporated in bonds with stock acquisition rights) to persons other than the shareholders under “specially favorable” conditions; | ||
(k) | purchase of shares by us from a specific shareholder other than our subsidiary; | ||
(l) | consolidation of shares; | ||
(m) | distribution of Surplus in kind with respect to which shareholders are not granted the right to require us to make such distribution in cash instead of in kind; and | ||
(n) | exemption from a portion of liability of the Directors, Corporate Auditors or independent auditors. |
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Previous Day’s Closing Price or Special Quote | Maximum Daily Price Movement | |||||||||||||||
Over | ¥ | 3,000 | Less than | ¥ | 5,000 | ¥ | 500 | |||||||||
Over | 5,000 | Less than | 10,000 | 1,000 | ||||||||||||
Over | 10,000 | Less than | 20,000 | 2,000 |
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• | a financial institution; | ||
• | a regulated investment company; | ||
• | a real estate investment trust; | ||
• | a dealer or trader in securities or currencies; | ||
• | a tax-exempt organization; | ||
• | an insurance company | ||
• | a person liable for alternative minimum tax; | ||
• | a person that actually or constructively owns 10% or more of the voting stock of Nidec; | ||
• | a person that holds shares or ADSs as part of a straddle or a hedging or conversion transaction; | ||
• | a person who acquired shares or ADSs through the exercise or cancellation of employee stock options or otherwise as compensation for their services; | ||
• | a U.S. expatriate; or | ||
• | a person whose functional currency is not the U.S. dollar. |
• | a citizen or resident of the United States; | ||
• | a domestic corporation; |
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• | an estate whose income is subject to United States federal income tax regardless of its source; or | ||
• | a trust if (1) a United States court can exercise primary supervision over the trust’s administration and one or more United States persons are authorized to control all substantial decisions of the trust or (2) the trust has a valid election in effect under applicable Treasury regulations to be treated as a U.S. person. |
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• | the overall tax consequences of the acquisition, ownership and disposition of shares or ADSs, including specifically the tax consequences under Japanese law; | ||
• | the laws of the jurisdiction of which they are resident; and | ||
• | any tax treaty between Japan and their country of residence, by consulting their own tax advisers. |
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Maturity date | ||||||||||||||||||||||||||||||||
For the year ending March 31 | ||||||||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | Total | Fair Value | |||||||||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||||||||||
Foreign Exchange Forward Contracts | ||||||||||||||||||||||||||||||||
Sell U.S. dollars (Buy Yen) | ||||||||||||||||||||||||||||||||
Contract amounts (in millions) | ¥ | 66 | — | — | — | — | — | ¥ | 66 | ¥ | (2 | ) | ||||||||||||||||||||
Weighted-average contracted forward Rate (yen per U.S.$1) | 94.35 | — | — | — | — | — | 94.35 |
Maturity date | ||||||||||||||||||||||||||||||||
For the year ending March 31 | ||||||||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | Total | Fair Value | |||||||||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||||||||||
Long-term Loan Receivable | ||||||||||||||||||||||||||||||||
Fixed Rate | ||||||||||||||||||||||||||||||||
Principal cash flows | 7 | 85 | 74 | 52 | 14 | 33 | 265 | 274 | ||||||||||||||||||||||||
Weighted-average interest rate | 3.22 | % | 2.04 | % | 2.02 | % | 2.18 | % | 2.21 | % | 2.96 | % | 2.22 | % | ||||||||||||||||||
Floating Rate | ||||||||||||||||||||||||||||||||
Principal cash flows | 0 | 5 | 5 | 5 | 5 | 7 | 27 | 27 | ||||||||||||||||||||||||
Weighted-average interest rate | 1.49 | % | 0.36 | % | 0.52 | % | 0.67 | % | 0.82 | % | 1.54 | % | 0.87 | % | ||||||||||||||||||
Long-term Debt | ||||||||||||||||||||||||||||||||
Fixed Rate (long-term loan) | ||||||||||||||||||||||||||||||||
Principal cash flows | 4 | 319 | 27 | 34 | 34 | 238 | 656 | 645 | ||||||||||||||||||||||||
Weighted-average interest rate | 4.10 | % | 1.44 | % | 0.34 | % | 0.28 | % | 0.29 | % | 0.33 | % | 0.89 | % | ||||||||||||||||||
Floating Rate (long-term loan) | ||||||||||||||||||||||||||||||||
Principal cash flows | 0 | 1 | 1 | 1 | 1 | 3 | 7 | 7 | ||||||||||||||||||||||||
Weighted-average interest rate | 1.98 | % | 2.15 | % | 2.31 | % | 2.46 | % | 2.61 | % | 2.99 | % | 2.65 | % |
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Maturity date | ||||||||||||||||||||||||||||||||
For the year ending March 31 | ||||||||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | Total | Fair Value | |||||||||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||||||||||
Interest Rate Currency Swaps | ||||||||||||||||||||||||||||||||
Fixed rate payments | ||||||||||||||||||||||||||||||||
Principal cash flows (THB) | 24 | 24 | 24 | — | — | 72 | (1 | ) | ||||||||||||||||||||||||
Notional amounts | 24 | 24 | 24 | — | — | 72 | ||||||||||||||||||||||||||
Weighted-average interest rate | 6.65 | % | 6.65 | % | 6.65 | % | — | — | 6.65 | % | ||||||||||||||||||||||
Floating rate receivables | ||||||||||||||||||||||||||||||||
Principal cash flows (JPY) | 24 | 24 | 24 | — | — | 72 | ||||||||||||||||||||||||||
Notional amounts | 24 | 24 | 24 | — | — | 72 | ||||||||||||||||||||||||||
Weighted-average interest rate | 1.30 | % | 1.30 | % | 1.17 | % | — | — | 1.26 | % |
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U.S. dollars in | ||||||||||||
Yen in millions | thousands | |||||||||||
For the year ended March 31, | For the year ended | |||||||||||
Type of Fee | 2008 | 2009 | March 31, 2009 | |||||||||
Audit Fees (1) | ¥ | 796 | ¥ | 814 | $ | 8,287 | ||||||
Audit Related Fees (2) | 11 | 5 | 51 | |||||||||
Tax Fees (3) | 18 | 27 | 275 | |||||||||
All Other Fees (4) | 0 | 14 | 142 | |||||||||
Total | ¥ | 825 | ¥ | 860 | $ | 8,755 | ||||||
(1) | Audit fees consist of fees for professional services provided in connection with the audit of our annual financial statements and review of our quarterly financial statements and audit services provided in connection with other statutory or regulatory filings. | |
(2) | Audit related fees are fees for assurance and related services that were reasonably related to the performance of the audit or review of our financial statements and were not otherwise included in Audit Fees. This includes fees for audits of employee benefit plans, due diligence related to mergers and acquisitions, attestations that are not required by statute or regulation, and consulting on financial accounting and reporting standards. | |
(3) | Tax fees represent fees for professional services for tax compliance, tax advice and tax planning. | |
(4) | All other fees include fees for products and services provided other than the services reported above. |
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(a) | The Board of Corporate Auditors is established, and its members are selected, pursuant to Japanese law expressly requiring such a board for Japanese companies that elect to have a corporate governance system with corporate auditors. | ||
(b) | Japanese law requires the Board of Corporate Auditors to be separate from the board of directors. | ||
(c) | None of the members of the Board of Corporate Auditors is elected by management, and none of the listed company’s executive officers is a member of the Board of Corporate Auditors. | ||
(d) | Japanese law sets forth standards for the independence of the members of the Board of Corporate Auditors from the listed company or its management. | ||
(e) | The Board of Corporate Auditors, in accordance with Japanese law or the listed company’s governing documents, is responsible, to the extent permitted by Japanese law, for the appointment, retention and oversight of the work of any registered public accounting firm engaged (including, to the extent permitted by Japanese law, the resolution of disagreements between management and the auditor regarding financial reporting) for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the listed company, including its principal accountant which audits its consolidated financial statements included in its annual reports on Form 20-F. | ||
(f) | To the extent permitted by Japanese law: |
• | the Board of Corporate Auditors establishes procedures for (i) the receipt, retention and treatment of complaints received by the listed company regarding accounting, internal accounting controls, or auditing matters, and (ii) the confidential, anonymous submission by |
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the listed company’s employees of concerns regarding questionable accounting or auditing matters; |
• | the Board of Corporate Auditors has the authority to engage independent counsel and other advisers, as it determines necessary to carry out its duties; and | ||
• | the listed company provides for appropriate funding, as determined by its Board of Corporate Auditors, for payment of (i) compensation to any registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the listed company, (ii) compensation to any advisers employed by the Board of Corporate Auditors, and (iii) ordinary administrative expenses of the Board of Corporate Auditors that are necessary or appropriate in carrying out its duties. |
Shares | Shares | |||||||||||||||
Shares | Total number of | Maximum number | ||||||||||||||
Total | Yen | shares purchased | of shares that may | |||||||||||||
number | Average | as part of publicly | yet be purchased | |||||||||||||
of shares | price paid | announced plans or | under the plans or | |||||||||||||
purchased | per share | programs | programs | |||||||||||||
2008 | ||||||||||||||||
April 1 - 30 | 231 | ¥ | 6,653 | — | 1,000,000 | |||||||||||
May 1 - 31 | 108 | 7,650 | — | 1,000,000 | ||||||||||||
June 1 - 30 | 208 | 7,949 | — | 1,000,000 | ||||||||||||
July 1 - 31 | 80 | 7,118 | — | 1,000,000 | ||||||||||||
August 1 - 31 | 347 | 7,759 | — | 1,000,000 | ||||||||||||
September 1- 30 | 634 | 7,004 | — | 1,000,000 | ||||||||||||
October 1 - 31 | 231,780 | 3,976 | 231,400 | 768,600 | ||||||||||||
November 1 - 30 | 580,189 | 4,084 | 580,100 | 5,188,500 | ||||||||||||
December 1- 31 | 926,846 | 3,421 | 926,600 | 4,261,900 | ||||||||||||
2009 | ||||||||||||||||
January 1 - 31 | 494,616 | 3,772 | 494,500 | 3,767,400 | ||||||||||||
February 1 - 28 | 3,500,201 | 4,410 | 3,500,000 | 267,400 | ||||||||||||
March 1 - 31 | 136 | 4,040 | — | 267,400 | ||||||||||||
Total | 5,735,376 | ¥ | 4,145 | 5,732,600 | 267,400 | |||||||||||
(1) | A total of 2,776 shares were purchased other than through a publicly announced plan or program during the fiscal year ended March 31, 2009, due to our purchase of fractional shares from registered holders of fractional shares at the current market price of those shares. For an explanation of the rights of such shareholders, see “Item 10.B. Additional Information —Memorandum and Articles of Association — Japanese Unit Share System.” |
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(2) | During the fiscal year ended March 31, 2009, the following share repurchase plans or programs were publicly announced: |
• | On February 1, 2008, our Board of Directors approved a share repurchase plan pursuant to which we may purchase from February 4, 2008 to February 3, 2009 up to the lesser of 1,000,000 shares of common stock or the number of shares equivalent to ¥6.0 billion in cost of repurchase. | ||
• | On November 21, 2008, our Board of Directors approved a share repurchase plan pursuant to which we may purchase from November 25, 2008 to November 24, 2009 up to the lesser of 5,000,000 shares of common stock or the number of shares equivalent to ¥25.0 billion in cost of repurchase. |
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Exhibit | ||
Number | Description | |
1.1 | Articles of Incorporation of Nidec Corporation (English translation) | |
1.2 | Share Handling Regulations of Nidec Corporation (English translation) | |
1.3 | Regulations of the Board of Directors of Nidec Corporation (English translation) (Incorporated by reference to Nidec’s annual report on Form 20-F/A for the year ended March 31, 2008 filed on December 24, 2008.) | |
1.4 | Regulations of the Board of Corporate Auditors of Nidec Corporation (English translation) (Incorporated by reference to Nidec’s annual report on Form 20-F/A for the year ended March 31, 2008 filed on December 24, 2008.) | |
2.1 | Form of Deposit Agreement among Nidec Corporation, Morgan Guaranty Trust Company of New York as Depositary and all owners and holders from time to time of American Depositary Receipts, including the form of American Depositary Receipt (Incorporated by reference to the Registration Statement on Form F-6 (file no. 333-13894) filed on September 7, 2001.) | |
4.1 | Loan Agreement, dated December 3, 2008, between Nidec Corporation and S.N. Kohsan (English translation) | |
8.1 | Subsidiaries of Nidec Corporation | |
11.1 | Code of Ethics (English translation) | |
12.1 | Certification of the Chief Executive Officer required by Rule 13a-14(a) | |
12.2 | Certification of the Chief Financial Officer required by Rule 13a-14(a) | |
13.1 | Certification of the Chief Executive Officer required by Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code | |
13.2 | Certification of the Chief Financial Officer required by Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code |
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NIDEC CORPORATION | ||||
By: | /s/ Shigenobu Nagamori | |||
Name: | Shigenobu Nagamori | |||
Title: | President, Chief Executive Officer and Representative Director | |||
Table of Contents
Exhibit | ||
Number | Description | |
1.1 | Articles of Incorporation of Nidec Corporation (English translation) | |
1.2 | Share Handling Regulations of Nidec Corporation (English translation) | |
1.3 | Regulations of the Board of Directors of Nidec Corporation (English translation) (Incorporated by reference to Nidec’s annual report on Form 20-F/A for the year ended March 31, 2008 filed on December 24, 2008.) | |
1.4 | Regulations of the Board of Corporate Auditors of Nidec Corporation (English translation) (Incorporated by reference to Nidec’s annual report on Form 20-F/A for the year ended March 31, 2008 filed on December 24, 2008.) | |
2.1 | Form of Deposit Agreement among Nidec Corporation, Morgan Guaranty Trust Company of New York as Depositary and all owners and holders from time to time of American Depositary Receipts, including the form of American Depositary Receipt (Incorporated by reference to the Registration Statement on Form F-6 (file no. 333-13894) filed on September 7, 2001.) | |
4.1 | Loan Agreement, dated December 3, 2008, between Nidec Corporation and S.N. Kohsan (English translation) | |
8.1 | Subsidiaries of Nidec Corporation | |
11.1 | Code of Ethics (English translation) | |
12.1 | Certification of the Chief Executive Officer required by Rule 13a-14(a) | |
12.2 | Certification of the Chief Financial Officer required by Rule 13a-14(a) | |
13.1 | Certification of the Chief Executive Officer required by Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code | |
13.2 | Certification of the Chief Financial Officer required by Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code |
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page | ||
F-2 | ||
F-4 | ||
F-6 | ||
F-7 | ||
F-9 | ||
F-11 |
F-1
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Nihon Densan Kabushiki Kaisha
(“NIDEC Corporation”):
F-2
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Kyoto, Japan
June 23, 2009
F-3
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CONSOLIDATED BALANCE SHEETS
ASSETS
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | ¥ | 100,809 | ¥ | 200,966 | $ | 2,045,872 | ||||||
Trade notes and accounts receivable, net of allowance for doubtful accounts of ¥795 million on March 31, 2008 and ¥717 million ($7,299 thousand) on March 31, 2009: | ||||||||||||
Notes | 17,205 | 11,663 | 118,732 | |||||||||
Accounts | 148,928 | 111,548 | 1,135,580 | |||||||||
Inventories | 69,818 | 57,475 | 585,106 | |||||||||
Other current assets | 20,238 | 20,364 | 207,309 | |||||||||
Total current assets | 356,998 | 402,016 | 4,092,599 | |||||||||
Marketable securities and other securities investments | 15,273 | 13,344 | 135,844 | |||||||||
Investments in and advances to affiliated companies | 2,102 | 1,549 | 15,770 | |||||||||
17,375 | 14,893 | 151,614 | ||||||||||
Property, plant and equipment: | ||||||||||||
Land | 39,389 | 39,386 | 400,957 | |||||||||
Buildings | 110,258 | 112,934 | 1,149,690 | |||||||||
Machinery and equipment | 264,019 | 255,887 | 2,604,977 | |||||||||
Construction in progress | 11,309 | 11,835 | 120,483 | |||||||||
424,975 | 420,042 | 4,276,107 | ||||||||||
Less — Accumulated depreciation | (226,146 | ) | (230,357 | ) | (2,345,078 | ) | ||||||
198,829 | 189,685 | 1,931,029 | ||||||||||
Goodwill | 71,223 | 71,060 | 723,404 | |||||||||
Other non-current assets, net of allowance for doubtful accounts of ¥1,451 million on March 31, 2008 and ¥1,594 million ($16,227 thousand) on March 31, 2009 | 27,289 | 25,230 | 256,846 | |||||||||
Total assets | ¥ | 671,714 | ¥ | 702,884 | $ | 7,155,492 | ||||||
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CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Current liabilities: | ||||||||||||
Short-term borrowings | ¥ | 68,854 | ¥ | 221,342 | $ | 2,253,303 | ||||||
Current portion of long-term debt | 29,196 | 1,883 | 19,169 | |||||||||
Trade notes and accounts payable | 121,698 | 70,398 | 716,665 | |||||||||
Other current liabilities | 33,351 | 24,120 | 245,547 | |||||||||
Total current liabilities | 253,099 | 317,743 | 3,234,684 | |||||||||
Long-term liabilities: | ||||||||||||
Long-term debt | 3,430 | 2,578 | 26,245 | |||||||||
Accrued pension and severance costs | 14,953 | 15,684 | 159,666 | |||||||||
Other long-term liabilities | 12,462 | 9,192 | 93,576 | |||||||||
Total long-term liabilities | 30,845 | 27,454 | 279,487 | |||||||||
Minority interest in consolidated subsidiaries | 68,186 | 60,539 | 616,298 | |||||||||
Commitments and contingencies (Note 23 and 24) | ||||||||||||
Shareholders’ equity: | ||||||||||||
Common stock authorized 2008 and 2009: 480,000,000 shares; issued and outstanding: | ||||||||||||
2008- 144,987,492 shares / 2009- 145,075,080 shares | 66,248 | 66,551 | 677,502 | |||||||||
Additional paid-in capital | 68,859 | 69,162 | 704,082 | |||||||||
Retained earnings | 193,407 | 212,955 | 2,167,922 | |||||||||
Accumulated other comprehensive income: | ||||||||||||
Foreign currency translation adjustments | (10,233 | ) | (26,324 | ) | (267,983 | ) | ||||||
Unrealized gains (losses) on securities | 1,016 | (417 | ) | (4,245 | ) | |||||||
Pension liability adjustments | 568 | (723 | ) | (7,360 | ) | |||||||
Treasury stock, at cost: | ||||||||||||
2008- 47,495 shares / 2009- 5,782,871 shares | (281 | ) | (24,056 | ) | (244,895 | ) | ||||||
Total shareholders’ equity | 319,584 | 297,148 | 3,025,023 | |||||||||
Total liabilities and shareholders’ equity | ¥ | 671,714 | ¥ | 702,884 | $ | 7,155,492 | ||||||
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CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Net sales | ¥ | 614,651 | ¥ | 728,756 | ¥ | 613,458 | $ | 6,245,119 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of products sold | 471,325 | 571,337 | 482,893 | 4,915,942 | ||||||||||||
Selling, general and administrative expenses | 45,409 | 50,168 | 51,795 | 527,283 | ||||||||||||
Research and development expenses | 31,981 | 29,709 | 26,964 | 274,499 | ||||||||||||
548,715 | 651,214 | 561,652 | 5,717,724 | |||||||||||||
Operating income | 65,936 | 77,542 | 51,806 | 527,395 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest and dividend income | 2,501 | 2,869 | 2,543 | 25,888 | ||||||||||||
Interest expense | (1,976 | ) | (2,369 | ) | (1,404 | ) | (14,293 | ) | ||||||||
Foreign exchange gain (loss), net | 1,815 | (13,218 | ) | (3,688 | ) | (37,545 | ) | |||||||||
Gain (loss) from marketable securities, net | 943 | 454 | (1,305 | ) | (13,285 | ) | ||||||||||
Other, net | (1,605 | ) | (1,023 | ) | (923 | ) | (9,396 | ) | ||||||||
1,678 | (13,287 | ) | (4,777 | ) | (48,631 | ) | ||||||||||
Income from continuing operations before income taxes | 67,614 | 64,255 | 47,029 | 478,764 | ||||||||||||
Income taxes | (17,945 | ) | (15,930 | ) | (12,464 | ) | (126,886 | ) | ||||||||
Income from continuing operations before minority interest and equity in earnings of affiliated companies | 49,669 | 48,325 | 34,565 | 351,878 | ||||||||||||
Minority interest in income of consolidated subsidiaries | 8,816 | 6,485 | 3,777 | 38,450 | ||||||||||||
Equity in net losses (income) of affiliated companies | 73 | (39 | ) | 48 | 489 | |||||||||||
Income from continuing operations | 40,780 | 41,879 | 30,740 | 312,939 | ||||||||||||
Loss on discontinued operations | (848 | ) | (723 | ) | (2,387 | ) | (24,300 | ) | ||||||||
Net income | ¥ | 39,932 | ¥ | 41,156 | ¥ | 28,353 | $ | 288,639 | ||||||||
Yen | U.S. dollars | |||||||||||||||
Per share data: | ||||||||||||||||
Earning per share — basic | ||||||||||||||||
Income from continuing operations | ¥ | 281.89 | ¥ | 288.99 | ¥ | 214.04 | $ | 2.18 | ||||||||
Loss on discontinued operations | (5.86 | ) | (4.99 | ) | (16.62 | ) | (0.17 | ) | ||||||||
Net income | 276.03 | 284.00 | 197.42 | 2.01 | ||||||||||||
Earning per share — diluted | ||||||||||||||||
Income from continuing operations | ¥ | 273.95 | ¥ | 281.14 | ¥ | 210.49 | $ | 2.14 | ||||||||
Loss on discontinued operations | (5.70 | ) | (4.85 | ) | (16.37 | ) | (0.16 | ) | ||||||||
Net income | 268.25 | 276.29 | 194.12 | 1.98 | ||||||||||||
Cash dividends | ¥ | 40.00 | ¥ | 50.00 | ¥ | 60.00 | $ | 0.61 | ||||||||
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
AND COMPREHENSIVE INCOME
Yen in millions | ||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Additional | other | Treasury | ||||||||||||||||||||||||||
Common stock | paid-in | Retained | comprehensive | stock, | ||||||||||||||||||||||||
Shares | Amount | capital | earnings | income (loss) | at cost | Total | ||||||||||||||||||||||
Balance at March 31, 2006 | 144,661,292 | ¥ | 65,649 | ¥ | 68,240 | ¥ | 126,334 | ¥ | 3,673 | ¥ | (237 | ) | ¥ | 263,659 | ||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 39,932 | 39,932 | ||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | 6,949 | 6,949 | ||||||||||||||||||||||||||
Unrealized gains from securities, net of reclassification adjustment | (539 | ) | (539 | ) | ||||||||||||||||||||||||
Minimum pension liability adjustment | (25 | ) | (25 | ) | ||||||||||||||||||||||||
Total comprehensive income | 46,317 | |||||||||||||||||||||||||||
Adjustment to initially apply SFAS No. 158, net of tax | 403 | 403 | ||||||||||||||||||||||||||
Total | 46,720 | |||||||||||||||||||||||||||
Dividends paid | (5,786 | ) | (5,786 | ) | ||||||||||||||||||||||||
Exercise of stock option | 119,200 | 219 | 234 | 453 | ||||||||||||||||||||||||
Issuance cost of new stock | (5 | ) | (5 | ) | ||||||||||||||||||||||||
Purchase of treasury stock | (25 | ) | (25 | ) | ||||||||||||||||||||||||
Balance at March 31, 2007 | 144,780,492 | ¥ | 65,868 | ¥ | 68,469 | ¥ | 160,480 | ¥ | 10,461 | ¥ | (262 | ) | ¥ | 305,016 | ||||||||||||||
Cumulative effect resulting from the adoption of FIN No. 48 | (987 | ) | (987 | ) | ||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 41,156 | 41,156 | ||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | (17,107 | ) | (17,107 | ) | ||||||||||||||||||||||||
Unrealized losses on securities, net of reclassification adjustment | (2,308 | ) | (2,308 | ) | ||||||||||||||||||||||||
Pension liability adjustments | 305 | 305 | ||||||||||||||||||||||||||
Total comprehensive income | 22,046 | |||||||||||||||||||||||||||
Dividends paid | (7,242 | ) | (7,242 | ) | ||||||||||||||||||||||||
Exercise of stock option | 207,000 | 380 | 390 | 770 | ||||||||||||||||||||||||
Purchase of treasury stock | (19 | ) | (19 | ) | ||||||||||||||||||||||||
Balance at March 31, 2008 | 144,987,492 | ¥ | 66,248 | ¥ | 68,859 | ¥ | 193,407 | ¥ | (8,649 | ) | ¥ | (281 | ) | ¥ | 319,584 | |||||||||||||
F-7
Table of Contents
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
AND COMPREHENSIVE INCOME
(continued)
Yen in millions | ||||||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||
Additional | other | Treasury | ||||||||||||||||||||||||||||||
Common stock | Paid-in | Retained | comprehensive | stock, | Loan to | |||||||||||||||||||||||||||
Shares | Amount | capital | earnings | loss | at cost | shareholder | Total | |||||||||||||||||||||||||
Balance at March 31, 2008 | 144,987,492 | ¥ | 66,248 | ¥ | 68,859 | ¥ | 193,407 | ¥ | (8,649 | ) | ¥ | (281 | ) | ¥ | — | ¥ | 319,584 | |||||||||||||||
Adjustment to apply the measurement date provision of SFAS No. 158, net of tax | (106 | ) | (5 | ) | (111 | ) | ||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | 28,353 | 28,353 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (16,091 | ) | (16,091 | ) | ||||||||||||||||||||||||||||
Unrealized losses on securities, net of reclassification adjustment | (1,433 | ) | (1,433 | ) | ||||||||||||||||||||||||||||
Pension liability adjustments | (1,286 | ) | (1,286 | ) | ||||||||||||||||||||||||||||
Total comprehensive income | 9,543 | |||||||||||||||||||||||||||||||
Dividends paid | (8,699 | ) | (8,699 | ) | ||||||||||||||||||||||||||||
Conversion of convertible debt | 87,588 | 303 | 303 | 606 | ||||||||||||||||||||||||||||
Purchase of treasury stock | (23,775 | ) | (23,775 | ) | ||||||||||||||||||||||||||||
Payment for loan to shareholder | (14,500 | ) | (14,500 | ) | ||||||||||||||||||||||||||||
Collection of loan to shareholder | 14,500 | 14,500 | ||||||||||||||||||||||||||||||
Balance at March 31, 2009 | 145,075,080 | ¥ | 66,551 | ¥ | 69,162 | ¥ | 212,955 | ¥ | (27,464 | ) | ¥ | (24,056 | ) | ¥ | — | ¥ | 297,148 | |||||||||||||||
U.S. dollars in thousands | ||||||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||
other | Treasury | |||||||||||||||||||||||||||||||
Additional | Retained | comprehensive | stock, at | Loan to | ||||||||||||||||||||||||||||
Common stock | paid-in capital | earnings | loss | cost | shareholder | Total | ||||||||||||||||||||||||||
Balance at March 31, 2008 | $ | 674,417 | $ | 700,997 | $ | 1,968,919 | $ | (88,048 | ) | $ | (2,861 | ) | $ | — | $ | 3,253,424 | ||||||||||||||||
Adjustment to apply the measurement date provision of SFAS No. 158, net of tax | (1,079 | ) | (51 | ) | (1,130 | ) | ||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | 288,639 | 288,639 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (163,809 | ) | (163,809 | ) | ||||||||||||||||||||||||||||
Unrealized losses on securities, net of reclassification adjustment | (14,588 | ) | (14,588 | ) | ||||||||||||||||||||||||||||
Pension liability adjustments | (13,092 | ) | (13,092 | ) | ||||||||||||||||||||||||||||
Total comprehensive income | 97,150 | |||||||||||||||||||||||||||||||
Dividends paid | (88,557 | ) | (88,557 | ) | ||||||||||||||||||||||||||||
Conversion of convertible debt | 3,085 | 3,085 | 6,170 | |||||||||||||||||||||||||||||
Purchase of treasury stock | (242,034 | ) | (242,034 | ) | ||||||||||||||||||||||||||||
Payment for loan to shareholder | (147,613 | ) | (147,613 | ) | ||||||||||||||||||||||||||||
Collection of loan to shareholder | 147,613 | 147,613 | ||||||||||||||||||||||||||||||
Balance at March 31, 2009 | $ | 677,502 | $ | 704,082 | $ | 2,167,922 | $ | (279,558 | ) | $ | (244,895 | ) | $ | — | $ | 3,025,023 | ||||||||||||||||
F-8
Table of Contents
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | ¥ | 39,932 | ¥ | 41,156 | ¥ | 28,353 | $ | 288,639 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation | 29,997 | 36,334 | 32,147 | 327,263 | ||||||||||||
Amortization | 690 | 1,638 | 1,933 | 19,678 | ||||||||||||
(Gain) loss from marketable securities, net | (943 | ) | (454 | ) | 1,305 | 13,285 | ||||||||||
Loss on sales, disposal or impairment of property, plant and equipment | 1,737 | 1,636 | 1,282 | 13,051 | ||||||||||||
Deferred income taxes | (995 | ) | 2,065 | 1,085 | 11,046 | |||||||||||
Minority interest in income of consolidated subsidiaries | 8,130 | 6,082 | 2,882 | 29,339 | ||||||||||||
Equity in net losses (income) of affiliated companies | 73 | (39 | ) | 48 | 489 | |||||||||||
Foreign currency adjustments | 368 | 8,305 | 2,091 | 21,287 | ||||||||||||
Accrual for pension and severance costs, net payments | (1,908 | ) | (1,551 | ) | 366 | 3,726 | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
(Increase) decrease in notes and accounts receivable | (10,414 | ) | 26 | 38,041 | 387,264 | |||||||||||
Decrease (increase) in inventories | 1,805 | (5,575 | ) | 11,238 | 114,405 | |||||||||||
(Decrease) increase in notes and accounts payable | (4,223 | ) | 5,949 | (46,469 | ) | (473,063 | ) | |||||||||
Increase (decrease) in accrued income taxes | 2,491 | (3,601 | ) | (3,631 | ) | (36,964 | ) | |||||||||
Other | (2,017 | ) | 2,845 | (4,440 | ) | (45,201 | ) | |||||||||
Net cash provided by operating activities | ¥ | 64,723 | ¥ | 94,816 | ¥ | 66,231 | $ | 674,244 | ||||||||
F-9
Table of Contents
CONSOLIDATED STATEMENTS OF CASH FLOWS
(continued)
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Additions to property, plant and equipment | ¥ | (39,144 | ) | ¥ | (35,660 | ) | ¥ | (38,501 | ) | $ | (391,948 | ) | ||||
Proceeds from sales of property, plant and equipment | 1,089 | 2,010 | 865 | 8,806 | ||||||||||||
Purchases of marketable securities | (4 | ) | (231 | ) | (3,609 | ) | (36,740 | ) | ||||||||
Proceeds from sales of marketable securities | 1,071 | 2,761 | 76 | 774 | ||||||||||||
Acquisitions of consolidated subsidiaries, net of cash acquired | (25,322 | ) | (2,619 | ) | (756 | ) | (7,696 | ) | ||||||||
Payments for additional investments in subsidiaries | (16,588 | ) | (8,043 | ) | (9,286 | ) | (94,533 | ) | ||||||||
Other | (37 | ) | (1,942 | ) | (1,448 | ) | (14,742 | ) | ||||||||
Net cash used in investing activities | (78,935 | ) | (43,724 | ) | (52,659 | ) | (536,079 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Increase (decrease) in short-term borrowings | 22,649 | (15,123 | ) | 153,934 | 1,567,077 | |||||||||||
Proceeds from issuance of long-term debt | — | 137 | 384 | 3,909 | ||||||||||||
Repayments of long-term debt | (6,696 | ) | (3,966 | ) | (2,067 | ) | (21,042 | ) | ||||||||
Redemption of corporate bonds | — | — | (26,412 | ) | (268,879 | ) | ||||||||||
Proceeds from issuance of new shares | 438 | 761 | — | — | ||||||||||||
Purchases of treasury stock | (25 | ) | (19 | ) | (23,775 | ) | (242,034 | ) | ||||||||
Payment for loan to shareholder | — | — | (14,500 | ) | (147,613 | ) | ||||||||||
Collection of loan to shareholder | — | — | 14,500 | 147,613 | ||||||||||||
Dividends paid | (5,786 | ) | (7,242 | ) | (8,699 | ) | (88,557 | ) | ||||||||
Other | (1,637 | ) | (1,828 | ) | (2,205 | ) | (22,448 | ) | ||||||||
Net cash provided by (used in) financing activities | 8,943 | (27,280 | ) | 91,160 | 928,026 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,974 | (11,787 | ) | (4,575 | ) | (46,574 | ) | |||||||||
Net (decrease) increase in cash and cash equivalents | (3,295 | ) | 12,025 | 100,157 | 1,019,617 | |||||||||||
Cash and cash equivalents at beginning of year | 92,079 | 88,784 | 100,809 | 1,026,255 | ||||||||||||
Cash and cash equivalents at end of year | ¥ | 88,784 | ¥ | 100,809 | ¥ | 200,966 | $ | 2,045,872 | ||||||||
F-10
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-11
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
F-12
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
F-13
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
F-14
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
F-15
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
F-16
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
F-17
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
F-18
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
F-19
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in millions | ||||||||
For the year ended | ||||||||
March 31 | ||||||||
(Unaudited) | ||||||||
2007 | 2008 | |||||||
Pro forma net sales | ¥ | 697,505 | ¥ | 745,006 | ||||
Pro forma net income | 37,260 | 40,684 | ||||||
Yen | ||||||||
Pro forma net income per common share | ||||||||
— basic | ¥ | 257.56 | ¥ | 280.75 | ||||
— diluted | 250.30 | 273.12 | ||||||
Yen in millions | ||||||||||||||||
For the year ended March 31, 2007 | ||||||||||||||||
NMA | FSKC | NBC | TOTAL | |||||||||||||
Cash and cash equivalents | ¥ | 3,681 | ¥ | 346 | ¥ | 924 | ¥ | 4,951 | ||||||||
Accounts receivable | 6,043 | 1,681 | 1,598 | 9,322 | ||||||||||||
Inventories | 1,901 | 1,348 | 1,241 | 4,490 | ||||||||||||
Other current assets | 787 | 551 | 679 | 2,017 | ||||||||||||
Property, plant and equipment | 8,923 | 1,324 | 5,984 | 16,231 | ||||||||||||
Goodwill | 6,772 | 1,987 | 8,134 | 16,893 | ||||||||||||
Other non-current assets | 10,688 | 478 | 1,400 | 12,566 | ||||||||||||
Total assets acquired | 38,795 | 7,715 | 19,960 | 66,470 | ||||||||||||
Short-term borrowings and current portion of long-term debt | (7,936 | ) | (2,222 | ) | (2,599 | ) | (12,757 | ) | ||||||||
Accounts payable | (5,303 | ) | (1,647 | ) | (650 | ) | (7,600 | ) | ||||||||
Other current liabilities | (2,048 | ) | (391 | ) | (1,507 | ) | (3,946 | ) | ||||||||
Long-term debt | (176 | ) | (1,951 | ) | (550 | ) | (2,677 | ) | ||||||||
Other non-current liabilities | (7,622 | ) | (473 | ) | (150 | ) | (8,245 | ) | ||||||||
Total liabilities assumed | (23,085 | ) | (6,684 | ) | (5,456 | ) | (35,225 | ) | ||||||||
Minority interest | — | (0 | ) | (972 | ) | (972 | ) | |||||||||
Purchase price | 15,710 | 1,031 | 13,532 | 30,273 | ||||||||||||
Cash acquired | (3,681 | ) | (346 | ) | (924 | ) | (4,951 | ) | ||||||||
Net cash paid | ¥ | 12,029 | ¥ | 685 | ¥ | 12,608 | ¥ | 25,322 | ||||||||
F-20
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in millions | ||||||||||||
NMA | NBC | TOTAL | ||||||||||
Inventories | ¥ | — | ¥ | 176 | ¥ | 176 | ||||||
Property, plant and equipment | 1,265 | 585 | 1,850 | |||||||||
Goodwill | (995 | ) | (652 | ) | (1,647 | ) | ||||||
Other non-current assets | (213 | ) | 9 | (204 | ) | |||||||
Total assets acquired | 57 | 118 | 175 | |||||||||
Other non-current liabilities | (57 | ) | (118 | ) | (175 | ) | ||||||
Total liabilities assumed | ¥ | (57 | ) | ¥ | (118 | ) | ¥ | (175 | ) | |||
Yen in millions | ||||
For the year | ||||
ended | ||||
March 31, | ||||
2008 | ||||
NSRV | ||||
Cash and cash equivalents | ¥ | 2,191 | ||
Accounts receivable | 9,018 | |||
Inventories | 4,189 | |||
Other current assets | 1,201 | |||
Property, plant and equipment | 6,752 | |||
Goodwill | 572 | |||
Other non-current assets | 1,900 | |||
Total assets acquired | 25,823 | |||
Short-term borrowings and current portion of long-term debt | (6,126 | ) | ||
Accounts payable | (5,499 | ) | ||
Other current liabilities | (1,998 | ) | ||
Long-term debt | (619 | ) | ||
Other non-current liabilities | (3,019 | ) | ||
Total liabilities assumed | (17,261 | ) | ||
Minority interest | (3,752 | ) | ||
Purchase price | 4,810 | |||
Cash acquired | (2,191 | ) | ||
Net cash paid | ¥ | 2,619 | ||
F-21
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in millions | ||||||||
March 31, | ||||||||
2007 | 2008 | |||||||
NSRV | — | ¥ | 486 | |||||
NMA | ¥ | 6,772 | — | |||||
All others | 10,121 | 86 | ||||||
¥ | 16,893 | ¥ | 572 | |||||
Years | Yen in millions | |||||||
weighted average | March 31, 2007 | |||||||
amortization | Gross carrying | |||||||
period | amounts | |||||||
Proprietary technology | 10 | ¥ | 2,364 | |||||
Customer relationships | 12 | 7,277 | ||||||
Other | 2 to 10 | 360 | ||||||
Total | ¥ | 10,001 | ||||||
Years | Yen in millions | |||||||
weighted average | March 31, 2008 | |||||||
amortization | Gross carrying | |||||||
period | amounts | |||||||
Patent rights | 8 | ¥ | 86 | |||||
Proprietary technology | 20 | 50 | ||||||
Customer relationships | 1 | 6 | ||||||
Other | 6 | 4 | ||||||
Total | ¥ | 146 | ||||||
F-22
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S dollars | ||||||||||||||||||||||||
Yen in millions | in thousands | |||||||||||||||||||||||
March 31 | March 31, | |||||||||||||||||||||||
2008 | 2009 | 2009 | ||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||
carrying | Accumulated | carrying | Accumulated | carrying | Accumulated | |||||||||||||||||||
amounts | amortization | amounts | amortization | amounts | amortization | |||||||||||||||||||
Patent rights | ¥ | 564 | ¥ | 180 | ¥ | 507 | ¥ | 232 | $ | 5,161 | $ | 2,362 | ||||||||||||
Proprietary technology | 2,422 | 298 | 1,959 | 433 | 19,943 | 4,408 | ||||||||||||||||||
Customer relationships | 7,095 | 799 | 5,600 | 1,103 | 57,009 | 11,229 | ||||||||||||||||||
Software | 5,408 | 2,084 | 6,297 | 2,480 | 64,105 | 25,247 | ||||||||||||||||||
Other | 1,541 | 537 | 1,422 | 585 | 14,476 | 5,955 | ||||||||||||||||||
Total | ¥ | 17,030 | ¥ | 3,898 | ¥ | 15,785 | ¥ | 4,833 | $ | 160,694 | $ | 49,201 | ||||||||||||
Yen in | U.S dollars | |||||||
millions | in thousands | |||||||
Years ending March 31, | ||||||||
2010 | ¥ | 1,807 | $ | 18,396 | ||||
2011 | 1,667 | 16,970 | ||||||
2012 | 1,499 | 15,260 | ||||||
2013 | 1,376 | 14,008 | ||||||
2014 | ¥ | 1,116 | $ | 11,361 | ||||
F-23
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31, | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
NSNK | ¥ | 20,925 | ¥ | 22,445 | $ | 228,494 | ||||||
NCPL | 13,289 | 13,223 | 134,613 | |||||||||
NTSC | 829 | 816 | 8,307 | |||||||||
NCEL | 4,346 | 4,564 | 46,462 | |||||||||
NSRV | 1,367 | 1,384 | 14,089 | |||||||||
NSBC | 1,240 | 1,240 | 12,623 | |||||||||
NSCJ | 1,280 | 1,280 | 13,031 | |||||||||
NMA | 5,942 | 5,293 | 53,884 | |||||||||
NNSN | 738 | 820 | 8,348 | |||||||||
All others | 21,267 | 19,995 | 203,553 | |||||||||
¥ | 71,223 | ¥ | 71,060 | $ | 723,404 | |||||||
U.S dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Balance as of April 1 | ¥ | 67,780 | ¥ | 71,223 | $ | 725,064 | ||||||
Acquisition | 572 | 439 | 4,469 | |||||||||
Acquisition of minority interests | 4,518 | 2,245 | 22,854 | |||||||||
Purchase price allocation adjustments | (1,647 | ) | — | — | ||||||||
Impairment loss | — | (357 | ) | (3,634 | ) | |||||||
Disposition | — | (5 | ) | (51 | ) | |||||||
Translation adjustments | — | (2,485 | ) | (25,298 | ) | |||||||
Balance as of March 31 | ¥ | 71,223 | ¥ | 71,060 | $ | 723,404 | ||||||
F-24
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
Yen in millions | in thousands | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Allowance for doubtful accounts at April 1 | ¥ | 2,184 | ¥ | 2,163 | ¥ | 2,246 | $ | 22,865 | ||||||||
Provision for doubtful accounts, net of reversal | 117 | 312 | 349 | 3,552 | ||||||||||||
Write-offs | (375 | ) | (149 | ) | (273 | ) | (2,779 | ) | ||||||||
Acquisition and other | 229 | 95 | (4 | ) | (41 | ) | ||||||||||
Translation adjustment and other | 8 | (175 | ) | (7 | ) | (71 | ) | |||||||||
Allowance for doubtful accounts at March 31 | ¥ | 2,163 | ¥ | 2,246 | ¥ | 2,311 | $ | 23,526 | ||||||||
F-25
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||
Yen in millions | In thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Finished goods | ¥ | 32,735 | ¥ | 26,521 | $ | 269,989 | ||||||
Raw materials | 17,849 | 13,004 | 132,383 | |||||||||
Work in process | 16,164 | 14,567 | 148,295 | |||||||||
Project in progress | 816 | 1,124 | 11,442 | |||||||||
Supplies and other | 2,254 | 2,259 | 22,997 | |||||||||
¥ | 69,818 | ¥ | 57,475 | $ | 585,106 | |||||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Deferred tax assets (Note 18) | ¥ | 6,896 | ¥ | 7,409 | $ | 75,425 | ||||||
Other receivable | 4,271 | 5,741 | 58,444 | |||||||||
Time deposit | 3,851 | 2,932 | 29,848 | |||||||||
Other | 5,220 | 4,282 | 43,592 | |||||||||
¥ | 20,238 | ¥ | 20,364 | $ | 207,309 | |||||||
F-26
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in millions | ||||||||||||||||
March 31, 2008 | ||||||||||||||||
Gross | Gross | |||||||||||||||
unrealized | unrealized | Fair | ||||||||||||||
Cost | gains | losses | value | |||||||||||||
Available-for-sale | ||||||||||||||||
Equity securities | ¥ | 6,239 | ¥ | 7,663 | ¥ | 291 | ¥ | 13,611 | ||||||||
Held-to-maturity | ||||||||||||||||
Japanese government debt securities | 100 | — | — | 100 | ||||||||||||
¥ | 6,339 | ¥ | 7,663 | ¥ | 291 | ¥ | 13,711 | |||||||||
Securities not practicable to fair value | ||||||||||||||||
Equity securities | ¥ | 1,562 | ||||||||||||||
Yen in millions | ||||||||||||||||
March 31, 2009 | ||||||||||||||||
Gross | Gross | |||||||||||||||
unrealized | unrealized | Fair | ||||||||||||||
Cost | gains | losses | value | |||||||||||||
Available-for-sale | ||||||||||||||||
Equity securities | ¥ | 9,285 | ¥ | 3,502 | ¥ | 656 | ¥ | 12,131 | ||||||||
Held-to-maturity | ||||||||||||||||
Japanese government debt securities | 201 | — | — | 201 | ||||||||||||
¥ | 9,486 | ¥ | 3,502 | ¥ | 656 | ¥ | 12,332 | |||||||||
Securities not practicable to fair value | ||||||||||||||||
Equity securities | ¥ | 1,012 | ||||||||||||||
U.S. dollars in thousands | ||||||||||||||||
March 31, 2009 | ||||||||||||||||
Gross | Gross | |||||||||||||||
unrealized | unrealized | Fair | ||||||||||||||
Cost | gains | losses | value | |||||||||||||
Available-for-sale | ||||||||||||||||
Equity securities | $ | 94,523 | $ | 35,651 | $ | 6,678 | $ | 123,496 | ||||||||
Held-to-maturity | ||||||||||||||||
Japanese government debt securities | 2,046 | — | — | 2,046 | ||||||||||||
$ | 96,569 | $ | 35,651 | $ | 6,678 | $ | 125,542 | |||||||||
Securities not practicable to fair value | ||||||||||||||||
Equity securities | $ | 10,302 | ||||||||||||||
F-27
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in millions | Yen in millions | |||||||||||||||
Less than 12 months | 12 months or more | |||||||||||||||
Fair | Unrealized | Fair | Unrealized | |||||||||||||
value | loss | value | loss | |||||||||||||
Equity securities | ¥ | 1,950 | ¥ | 468 | ¥ | 552 | ¥ | 188 | ||||||||
F-28
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars in thousands | U.S. dollars in thousands | |||||||||||||||
Less than 12 months | 12 months or more | |||||||||||||||
Fair | Unrealized | Fair | Unrealized | |||||||||||||
value | loss | value | loss | |||||||||||||
Equity securities | $ | 19,851 | $ | 4,764 | $ | 5,619 | $ | 1,914 | ||||||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Current assets | ¥ | 6,573 | ¥ | 3,659 | $ | 37,249 | ||||||
Non-current assets | 7,424 | 4,844 | 49,313 | |||||||||
Total assets | ¥ | 13,997 | ¥ | 8,503 | $ | 86,562 | ||||||
Current liabilities | ¥ | 8,889 | ¥ | 5,029 | $ | 51,196 | ||||||
Long-term liabilities | 25 | — | — | |||||||||
Shareholders’ equity | 5,083 | 3,474 | 35,366 | |||||||||
Total liabilities and shareholders’ equity | ¥ | 13,997 | ¥ | 8,503 | $ | 86,562 | ||||||
NIDEC’s share of shareholders’ equity | ¥ | 1,932 | ¥ | 1,390 | $ | 14,150 | ||||||
NIDEC’s investment in equity-method affiliates | ¥ | 1,946 | ¥ | 1,158 | $ | 11,789 | ||||||
Loan receivable from affiliated companies | ¥ | 156 | ¥ | 122 | $ | 1,242 | ||||||
Number of affiliated companies at end of period | 5 | 3 | ||||||||||
F-29
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
Yen in millions | in thousands | |||||||||||||||
For the | ||||||||||||||||
For the year ended | year ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Net revenues | ¥ | 11,693 | ¥ | 16,848 | ¥ | 11,722 | $ | 119,332 | ||||||||
Gross profit | 957 | 1,532 | 966 | 9,834 | ||||||||||||
Net income (loss) | 31 | 171 | (223 | ) | (2,270 | ) | ||||||||||
NIDEC’s share of net income (loss) | (16 | ) | 45 | (80 | ) | (815 | ) | |||||||||
Adjustments | (57 | ) | (6 | ) | 32 | 326 | ||||||||||
Equity (loss) income | ¥ | (73 | ) | ¥ | 39 | ¥ | (48 | ) | $ | (489 | ) | |||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Trade notes and accounts receivable | ¥ | 299 | ¥ | 181 | $ | 1,843 | ||||||
Trade notes and accounts payable | ¥ | 3,006 | ¥ | 2,072 | $ | 21,093 | ||||||
F-30
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
Yen in millions | in thousands | |||||||||||||||
For the year | ||||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Sales of products | ¥ | 1,739 | ¥ | 552 | ¥ | 330 | $ | 3,359 | ||||||||
Purchases of goods | ¥ | 9,822 | ¥ | 13,482 | ¥ | 10,126 | $ | 103,085 | ||||||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Intangible assets *1 | ¥ | 13,132 | ¥ | 10,952 | $ | 111,493 | ||||||
Deferred tax assets | 11,098 | 11,264 | 114,670 | |||||||||
Other *2 | 3,059 | 3,014 | 30,683 | |||||||||
¥ | 27,289 | ¥ | 25,230 | $ | 256,846 | |||||||
F-31
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
*1. | “Intangible assets” information is described at note No. 5 “Goodwill and other intangible assets” | |
*2. | “Other” primarily consists of deposits and long-term receivables. |
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Loans, principally from banks with average interest at March 31, 2008 and 2009 of 1.53% and 0.53% per annum, respectively | ¥ | 68,854 | ¥ | 221,342 | $ | 2,253,303 | ||||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Secured loans, representing obligations principally to banks | ||||||||||||
Due 2008 with interest ranging 2.07% per annum in 2008 | ¥ | 8 | — | — | ||||||||
Unsecured loans, representing obligations principally to banks and an insurance company | ||||||||||||
Due 2008 to 2026 in 2008 with interest ranging from 0.00% to 6.40% per annum in 2008 | ||||||||||||
Due 2009 to 2026 in 2009 with interest ranging from 0.00% to 6.40% per annum in 2009 | 302 | ¥ | 663 | ¥ | 6,750 | |||||||
Zero coupon convertible bonds, due 2008 | ||||||||||||
Convertible at ¥6,914 for one common share, redeemable before due date (see notes below) | 27,089 | — | — | |||||||||
Long-term capital lease obligations | ||||||||||||
Due 2008 to 2015 in 2008, with interest from 0.19% to 7.03% per annum in 2008 | ||||||||||||
Due 2009 to 2015 in 2009, with interest from 0.19% to 5.85% per annum in 2009 | 5,227 | 3,798 | 38,664 | |||||||||
32,626 | 4,461 | 45,414 | ||||||||||
Less — Current portion due within one year | (29,196 | ) | (1,883 | ) | (19,169 | ) | ||||||
¥ | 3,430 | ¥ | 2,578 | $ | 26,245 | |||||||
F-32
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
1. | Detail of Zero coupon 0.0% convertible bonds, due 2008 is as follow; |
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Principal amount | ¥ | 27,000 | — | — | ||||||||
Unamortized discount | 89 | — | — | |||||||||
Total | ¥ | 27,089 | — | — | ||||||||
2. | The yen denominated zero coupon convertible bonds with stock acquisition rights due 2008, which were listed on London Stock Exchange, were issued on October 17, 2003, and were redeemable at 100% of face value on October 17, 2008 (maturity date). The face value of the bonds was ¥30,000 million and the issue price was 103.00% of the face value. | |
On October 17, 2008, NIDEC redeemed the bonds at maturity. The total bonds redeemed were ¥26,412 million ($268,879 thousand). NIDEC financed the redemption cost by borrowings from banks. |
U.S. dollars | ||||||||
Yen in millions | in thousands | |||||||
Year ending March 31 | ||||||||
2010 | ¥ | 1,883 | $ | 19,169 | ||||
2011 | 1,249 | 12,715 | ||||||
2012 | 700 | 7,126 | ||||||
2013 | 303 | 3,085 | ||||||
2014 | 76 | 774 | ||||||
2015 and thereafter | ¥ | 250 | $ | 2,545 | ||||
F-33
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Accrued expenses | ¥ | 17,533 | ¥ | 13,995 | $ | 142,472 | ||||||
Income taxes payable | 5,942 | 3,008 | 30,622 | |||||||||
Payable for property, plant and equipment | 3,305 | 2,342 | 23,842 | |||||||||
Other | 6,571 | 4,775 | 48,611 | |||||||||
¥ | 33,351 | ¥ | 24,120 | $ | 245,547 | |||||||
F-34
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Change in benefit obligation: | ||||||||||||
Benefit obligation at beginning of year | ¥ | 15,359 | ¥ | 19,474 | $ | 198,249 | ||||||
SFAS No. 158 measurement date adjustment | — | 256 | 2,606 | |||||||||
Service cost | 1,100 | 1,163 | 11,840 | |||||||||
Interest cost | 331 | 335 | 3,410 | |||||||||
Actuarial loss | 680 | 366 | 3,726 | |||||||||
Acquisition and other | 3,817 | 23 | 234 | |||||||||
Benefits paid | (1,813 | ) | (2,341 | ) | (23,832 | ) | ||||||
19,474 | 19,276 | 196,233 | ||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of year | 7,053 | 8,476 | 86,287 | |||||||||
SFAS No. 158 measurement date adjustment | — | 32 | 325 | |||||||||
Actual return on plan assets | (162 | ) | (1,442 | ) | (14,680 | ) | ||||||
Employer contribution | 967 | 1,043 | 10,618 | |||||||||
Acquisition and other | 1,330 | — | — | |||||||||
Benefits paid | (712 | ) | (1,024 | ) | (10,424 | ) | ||||||
Fair value of plan assets at end of year | 8,476 | 7,085 | 72,126 | |||||||||
Funded status | ¥ | 10,998 | ¥ | 12,191 | $ | 124,107 | ||||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Accrued pension and severance costs | ¥ | 10,998 | ¥ | 12,191 | $ | 124,107 | ||||||
Net amounts recognized | ¥ | 10,998 | ¥ | 12,191 | $ | 124,107 | ||||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Actuarial loss | ¥ | (1,304 | ) | ¥ | (3,350 | ) | $ | (34,104 | ) | |||
Prior service cost | 441 | 364 | 3,706 | |||||||||
Pension liability adjustments, pre-tax | ¥ | (863 | ) | ¥ | (2,986 | ) | $ | (30,398 | ) | |||
F-35
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Projected benefit obligations | ¥ | 19,434 | ¥ | 19,276 | $ | 196,233 | ||||||
Accumulated benefit obligations | 18,014 | 17,571 | 178,876 | |||||||||
Fair value of plan assets | 8,437 | 7,085 | 72,127 | |||||||||
March 31 | ||||||||
2008 | 2009 | |||||||
Discount rate | 1.3-2.8 | % | 1.2-2.5 | % | ||||
Rate of compensation increase | 1.0-3.2 | % | 1.0-3.2 | % | ||||
For the year ended | ||||||||||||
March 31 | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
Discount rate | 1.5-3.1 | % | 1.3-2.7 | % | 1.3-2.8 | % | ||||||
Expected return on plan assets | 0.8-3.0 | % | 0.8-3.0 | % | 0.8-3.5 | % | ||||||
Rate of compensation increase | 0.0-3.5 | % | 1.0-3.5 | % | 1.0-3.2 | % | ||||||
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31 | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Components of net periodic (benefit) cost: | ||||||||||||||||
Service cost | ¥ | 667 | ¥ | 1,100 | ¥ | 1,163 | $ | 11,840 | ||||||||
Interest cost | 325 | 331 | 335 | 3,410 | ||||||||||||
Expected return on plan assets | (155 | ) | (201 | ) | (148 | ) | (1,507 | ) | ||||||||
Amortization of net actuarial (gain) loss | (38 | ) | (5 | ) | 33 | 336 | ||||||||||
Amortization of prior service credit | (62 | ) | (62 | ) | (62 | ) | (631 | ) | ||||||||
Net periodic pension cost | ¥ | 737 | ¥ | 1,163 | ¥ | 1,321 | $ | 13,448 | ||||||||
F-36
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Change in benefit obligation: | ||||||||||||
Benefit obligation at beginning of year | ¥ | 4,784 | ¥ | 4,038 | $ | 41,108 | ||||||
Service cost | 191 | 267 | 2,718 | |||||||||
Interest cost | 221 | 251 | 2,555 | |||||||||
Actuarial (gain) loss | (914 | ) | 26 | 265 | ||||||||
Foreign currency exchange rate changes | (54 | ) | (526 | ) | (5,355 | ) | ||||||
Benefits paid | (190 | ) | (332 | ) | (3,380 | ) | ||||||
4,038 | 3,724 | 37,911 | ||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of year | 77 | 83 | 845 | |||||||||
Actual return on plan assets | (14 | ) | 7 | 71 | ||||||||
Employer contribution | 28 | 331 | 3,370 | |||||||||
Foreign currency exchange rate changes | 20 | (43 | ) | (438 | ) | |||||||
Benefits paid | (28 | ) | (147 | ) | (1,496 | ) | ||||||
Fair value of plan assets at end of year | 83 | 231 | 2,352 | |||||||||
Funded status | ¥ | 3,955 | ¥ | 3,493 | $ | 35,559 | ||||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Accrued pension and severance costs | ¥ | 3,955 | ¥ | 3,493 | $ | 35,559 | ||||||
Net amounts recognized | ¥ | 3,955 | ¥ | 3,493 | $ | 35,559 | ||||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Actuarial gain | ¥ | 914 | ¥ | 690 | $ | 7,024 | ||||||
Pension liability adjustments, pre-tax | ¥ | 914 | ¥ | 690 | $ | 7,024 | ||||||
F-37
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Projected benefit obligations | ¥ | 4,038 | ¥ | 3,724 | $ | 37,911 | ||||||
Accumulated benefit obligations | 3,883 | 3,529 | 35,926 | |||||||||
Fair value of plan assets | 83 | 231 | 2,352 | |||||||||
March 31 | ||||||||
2008 | 2009 | |||||||
Discount rate | 5.9 | % | 6.0 | % | ||||
Rate of compensation increase | 2.5 | % | 2.5 | % | ||||
For the year ended | ||||||||||||
March 31 | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
Discount rate | 4.3 | % | 4.3 | % | 5.9 | % | ||||||
Rate of compensation increase | 2.5 | % | 2.5 | % | 2.5 | % | ||||||
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31 | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Components of net periodic (benefit) cost: | ||||||||||||||||
Service cost | ¥ | 172 | ¥ | 191 | ¥ | 267 | $ | 2,719 | ||||||||
Interest cost | 57 | 221 | 251 | 2,555 | ||||||||||||
Expected return on plan assets | (9 | ) | 13 | (9 | ) | (92 | ) | |||||||||
Amortization of net actuarial gain | — | — | (40 | ) | (407 | ) | ||||||||||
Net periodic pension cost | ¥ | 220 | ¥ | 425 | ¥ | 469 | $ | 4,775 | ||||||||
F-38
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Asset allocation of pension plans | ||||||||||||
Actual % | Target % | |||||||||||
March 31 | March 31 | March 31 | ||||||||||
2008 | 2009 | 2010 | ||||||||||
Assets Category | ||||||||||||
Equity securities | 39 | 30 | 30 | |||||||||
Debt securities | 22 | 24 | 24 | |||||||||
Life insurance company general accounts | 26 | 31 | 30 | |||||||||
Others | 13 | 15 | 16 | |||||||||
Total | 100 | 100 | 100 | |||||||||
U.S. dollars | ||||||||||||||||
Yen in millions | in thousands | |||||||||||||||
Japanese | Foreign | Japanese | Foreign | |||||||||||||
plans | plans | plans | plans | |||||||||||||
2010 | ¥ | 1,451 | ¥ | 241 | $ | 14,771 | $ | 2,453 | ||||||||
2011 | 1,741 | 264 | 17,724 | 2,688 | ||||||||||||
2012 | 1,276 | 319 | 12,990 | 3,247 | ||||||||||||
2013 | 1,310 | 175 | 13,336 | 1,782 | ||||||||||||
2014 | 1,216 | 189 | 12,379 | 1,924 | ||||||||||||
Years 2015-2019 | ¥ | 5,126 | ¥ | 1,526 | $ | 52,184 | $ | 15,535 | ||||||||
F-39
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Deferred tax liabilities | ¥4,157 | ¥2,388 | $ | 24,310 | ||||||||
Long-term accrued liabilities | 3,034 | 2,164 | 22,030 | |||||||||
Unrecognized tax benefits* | 2,374 | 2,481 | 25,257 | |||||||||
Revenue received in advance | 1,363 | 768 | 7,818 | |||||||||
Other | 1,534 | 1,391 | 14,161 | |||||||||
¥12,462 | ¥9,192 | $ | 93,576 | |||||||||
Note: | ||
* | “Unrecognized tax benefits” information is described at note No.18 “Income taxes” |
F-40
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in millions | ||||||||||||||||||||
Foreign | Minimum | Accumulated | ||||||||||||||||||
currency | Unrealized | pension | Pension | other | ||||||||||||||||
translation | gains (losses) | liability | liability | comprehensive | ||||||||||||||||
adjustments | from securities | adjustment | adjustment | income (loss) | ||||||||||||||||
Balance at March 31, 2006 | ¥(75 | ) | ¥3,863 | ¥(115 | ) | — | ¥3,673 | |||||||||||||
Other comprehensive income (loss) | 6,949 | (539 | ) | (25 | ) | — | 6,385 | |||||||||||||
Adoption of SFAS No. 158 | — | — | ¥140 | ¥263 | 403 | |||||||||||||||
Balance at March 31, 2007 | 6,874 | 3,324 | — | 263 | 10,461 | |||||||||||||||
Other comprehensive income (loss) | (17,107 | ) | (2,308 | ) | — | 305 | (19,110 | ) | ||||||||||||
Balance at March 31, 2008 | (10,233 | ) | 1,016 | — | 568 | (8,649 | ) | |||||||||||||
Adjustment to apply the measurement date provision of SFAS No. 158, net of tax | — | — | — | (5 | ) | (5 | ) | |||||||||||||
Other comprehensive income (loss) | (16,091 | ) | (1,433 | ) | — | (1,286 | ) | (18,810 | ) | |||||||||||
Balance at March 31, 2009 | ¥(26,324 | ) | ¥(417 | ) | — | ¥(723 | ) | ¥(27,464 | ) | |||||||||||
U.S. dollars in thousands | ||||||||||||||||||||
Foreign | Minimum | Accumulated | ||||||||||||||||||
currency | Unrealized | pension | Pension | other | ||||||||||||||||
translation | gains (losses) | liability | liability | comprehensive | ||||||||||||||||
adjustments | from securities | adjustment | adjustment | income (loss) | ||||||||||||||||
Balance at March 31, 2008 | $ | (104,174 | ) | $ | 10,343 | — | $ | 5,783 | $ | (88,048 | ) | |||||||||
Adjustment to apply the measurement date provision of SFAS No. 158, net of tax | — | — | — | (51 | ) | (51 | ) | |||||||||||||
Other comprehensive income (loss) | (163,809 | ) | (14,588 | ) | — | (13,092 | ) | (191,489 | ) | |||||||||||
Balance at March 31, 2009 | $ | (267,983 | ) | $ | (4,245 | ) | — | $ | (7,360 | ) | $ | (279,588 | ) | |||||||
F-41
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in millions | ||||||||||||
Pre-tax | Tax | Net-of-tax | ||||||||||
amount | expense | amount | ||||||||||
For the year ended March 31, 2007: | ||||||||||||
Foreign currency translation adjustments | ¥ | 7,001 | ¥ | (52 | ) | ¥ | 6,949 | |||||
Unrealized gains (losses) from securities: | ||||||||||||
Unrealized holding gains (losses) arising during period | 2 | (1 | ) | 1 | ||||||||
Reclassification adjustments for gains (losses) realized in net income | (943 | ) | 403 | (540 | ) | |||||||
Minimum pension liability adjustment | (44 | ) | 19 | (25 | ) | |||||||
Other comprehensive income (loss) | ¥ | 6,016 | ¥ | 369 | ¥ | 6,385 | ||||||
For the year ended March 31, 2008: | ||||||||||||
Foreign currency translation adjustments | ¥ | (17,432 | ) | ¥ | 325 | ¥ | (17,107 | ) | ||||
Unrealized gains (losses) from securities: | ||||||||||||
Unrealized holding gains (losses) arising during period | (3,457 | ) | 1,417 | (2,040 | ) | |||||||
Reclassification adjustments for gains and losses realized in net income | (454 | ) | 186 | (268 | ) | |||||||
Pension liability adjustment: | ||||||||||||
Actual (gains) losses arising during period | (127 | ) | 472 | 345 | ||||||||
Reclassification adjustments for actual gains (losses) realized in net income | (5 | ) | 2 | (3 | ) | |||||||
Reclassification adjustments for prior service credit realized in net income | (62 | ) | 25 | (37 | ) | |||||||
Other comprehensive income (loss) | ¥ | (21,537 | ) | ¥ | 2,427 | ¥ | (19,110 | ) | ||||
For the year ended March 31, 2009: | ||||||||||||
Foreign currency translation adjustments | ¥ | (15,898 | ) | ¥ | (193 | ) | ¥ | (16,091 | ) | |||
Unrealized gains (losses) from securities: | ||||||||||||
Unrealized holding gains (losses) arising during period | (1,158 | ) | 475 | (683 | ) | |||||||
Reclassification adjustments for gains and losses realized in net income | (1,380 | ) | 630 | (750 | ) | |||||||
Pension liability adjustment: | ||||||||||||
Actual (gains) losses arising during period | (2,107 | ) | 879 | (1,228 | ) | |||||||
Reclassification adjustments for actual gains (losses) realized in net income | (7 | ) | (14 | ) | (21 | ) | ||||||
Reclassification adjustments for prior service credit realized in net income | (62 | ) | 25 | (37 | ) | |||||||
Other comprehensive income (loss) | ¥ | (20,612 | ) | ¥ | 1,802 | ¥ | (18,810 | ) | ||||
F-42
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars in thousands | ||||||||||||
Pre-tax | Tax | Net-of-tax | ||||||||||
amount | expense | amount | ||||||||||
For the year ended March 31, 2009: | ||||||||||||
Foreign currency translation adjustments | $ | (161,844 | ) | $ | (1,965 | ) | $ | (163,809 | ) | |||
Unrealized gains (losses) from securities: | ||||||||||||
Unrealized holding gains (losses) arising during period | (11,789 | ) | 4,836 | (6,953 | ) | |||||||
Reclassification adjustments for gains and losses realized in net income | (14,049 | ) | 6,414 | (7,635 | ) | |||||||
Pension liability adjustment: | ||||||||||||
Actual (gains) losses arising during period | (21,450 | ) | 8,948 | (12,502 | ) | |||||||
Reclassification adjustments for actual gains (losses) realized in net income | (71 | ) | (143 | ) | (214 | ) | ||||||
Reclassification adjustments for prior service credit realized in net income | (631 | ) | 255 | (376 | ) | |||||||
Other comprehensive income (loss) | $ | (209,834 | ) | $ | 18,345 | $ | (191,489 | ) | ||||
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Income from continuing operations before income taxes: | ||||||||||||||||
The Company and domestic subsidiaries | ¥38,463 | ¥26,995 | ¥20,149 | $ | 205,121 | |||||||||||
Foreign subsidiaries | 29,151 | 37,260 | 26,880 | 273,643 | ||||||||||||
¥67,614 | ¥64,255 | ¥47,029 | $ | 478,764 | ||||||||||||
F-43
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Current income tax expense: | ||||||||||||||||
The Company and domestic subsidiaries | ¥ | 15,562 | ¥ | 8,603 | ¥ | 5,948 | $ | 60,552 | ||||||||
Foreign subsidiaries | 2,893 | 4,815 | 4,346 | 44,243 | ||||||||||||
Total current | 18,455 | 13,418 | 10,294 | 104,795 | ||||||||||||
Deferred income tax expense (benefit): | ||||||||||||||||
The Company and domestic subsidiaries | (344 | ) | 4,865 | 1,908 | 19,424 | |||||||||||
Foreign subsidiaries | (166 | ) | (2,353 | ) | 262 | 2,666 | ||||||||||
Total deferred | (510 | ) | 2,512 | 2,170 | 22,090 | |||||||||||
Total provision | ¥ | 17,945 | ¥ | 15,930 | ¥ | 12,464 | $ | 126,885 | ||||||||
F-44
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
For the year ended | ||||||||||||
March 31 | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
Statutory tax rate | 41.0 | % | 41.0 | % | 41.0 | % | ||||||
Increase (reduction) in taxes resulting from: | ||||||||||||
Tax benefit in foreign subsidiaries | (14.8 | ) | (20.0 | ) | (18.9 | ) | ||||||
Tax (benefit) on undistributed earnings | 1.1 | 1.6 | (1.1 | ) | ||||||||
Valuation allowance | (5.3 | ) | (1.4 | ) | 3.6 | |||||||
Transfer pricing taxation | 4.2 | — | — | |||||||||
Liabilities for unrecognized tax benefits | — | 2.5 | (0.2 | ) | ||||||||
Accumulated earnings tax of foreign subsidiaries | 0.4 | 0.6 | 1.0 | |||||||||
Other | (0.1 | ) | 0.5 | 1.1 | ||||||||
Effective income tax rate | 26.5 | % | 24.8 | % | 26.5 | % | ||||||
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Aggregate amounts of tax holidays | ¥ | 5,544 | ¥ | 5,256 | ¥ | 4,879 | $ | 49,669 | ||||||||
Yen | U.S. dollars | |||||||||||||||
Per share — basic | ¥ | 38.32 | ¥ | 36.27 | ¥ | 33.97 | $ | 0.35 | ||||||||
diluted | ¥ | 37.24 | ¥ | 35.28 | ¥ | 33.46 | $ | 0.34 | ||||||||
F-45
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Deferred tax assets: | ||||||||||||
Inventories | ¥ | 2,651 | ¥ | 2,476 | $ | 25,206 | ||||||
Property, plant and equipment | 6,990 | 6,361 | 64,756 | |||||||||
Accrued bonus | 2,569 | 1,707 | 17,378 | |||||||||
Accrued enterprise tax | 893 | 417 | 4,245 | |||||||||
Pension and severance plans | 6,646 | 6,886 | 70,101 | |||||||||
Operating loss carryforwards for tax purposes | 3,313 | 3,891 | 39,611 | |||||||||
Foreign tax credit | 1,982 | 1,770 | 18,019 | |||||||||
Accrued Vacation | 702 | 815 | 8,297 | |||||||||
Accrued expenses | 1,008 | 849 | 8,643 | |||||||||
Other | 1,646 | 2,809 | 28,596 | |||||||||
Gross deferred tax assets | 28,400 | 27,981 | 284,852 | |||||||||
Less — Valuation allowance | (6,455 | ) | (7,026 | ) | (71,526 | ) | ||||||
Net deferred tax assets | 21,945 | 20,955 | 213,326 | |||||||||
Deferred tax liabilities: | ||||||||||||
Basis difference of acquired assets | (2,952 | ) | (2,973 | ) | (30,266 | ) | ||||||
Undistributed earnings not permanently reinvested | (2,561 | ) | (909 | ) | (9,254 | ) | ||||||
Marketable securities | (2,396 | ) | (252 | ) | (2,565 | ) | ||||||
Intangible assets | (159 | ) | (487 | ) | (4,958 | ) | ||||||
Other | (106 | ) | (159 | ) | (1,619 | ) | ||||||
Gross deferred tax liabilities | (8,174 | ) | (4,780 | ) | (48,662 | ) | ||||||
Net deferred tax assets | ¥ | 13,771 | ¥ | 16,175 | $ | 164,664 | ||||||
F-46
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
Yen in millions | in thousands | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Valuation allowance at beginning of year | ¥ | (11,602 | ) | ¥ | (4,279 | ) | ¥ | (6,455 | ) | $ | (65,713 | ) | ||||
Additions | — | (2,785 | ) | (1,719 | ) | (17,500 | ) | |||||||||
Deductions | 8,676 | 890 | 1,178 | 11,992 | ||||||||||||
Impact of acquisition of companies | (1,353 | ) | (281 | ) | (30 | ) | (305 | ) | ||||||||
Valuation allowance at end of year | ¥ | (4,279 | ) | ¥ | (6,455 | ) | ¥ | (7,026 | ) | $ | (71,526 | ) | ||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Deferred tax assets: | ||||||||||||
Other current assets | ¥ | 6,896 | ¥ | 7,409 | $ | 75,425 | ||||||
Other non-current assets | 11,098 | 11,264 | 114,670 | |||||||||
Deferred tax liabilities: | ||||||||||||
Other current liabilities | (66 | ) | (110 | ) | (1,120 | ) | ||||||
Other long-term liabilities | (4,157 | ) | (2,388 | ) | (24,310 | ) | ||||||
Net deferred tax assets | ¥ | 13,771 | ¥ | 16,175 | $ | 164,665 | ||||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31, | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Balance at April 1 | ¥ | 865 | ¥ | 2,374 | $ | 24,168 | ||||||
Additions for tax positions of the current year | 1,509 | — | — | |||||||||
Additions for tax positions of prior years | — | — | — | |||||||||
Reductions for tax positions of prior years | — | — | — | |||||||||
Lapse of the applicable statute of limitations | — | — | — | |||||||||
Settlements | — | — | — | |||||||||
Balance at March 31 | ¥ | 2,374 | ¥ | 2,374 | $ | 24,168 | ||||||
F-47
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in | Thousands | |||||||||||||||
millions | of shares | Yen | U.S. dollars | |||||||||||||
Net | Weighted- | Net income | Net income | |||||||||||||
income | average | (loss) | (loss) | |||||||||||||
(loss) | shares | per share | per share | |||||||||||||
For the year ended March 31, 2007: | ||||||||||||||||
Basic net income(loss) per share | ||||||||||||||||
Income from continuing operations | ¥ | 40,780 | 144,665 | ¥ | 281.89 | |||||||||||
Loss on discontinued operations | (848 | ) | 144,665 | (5.86 | ) | |||||||||||
Net income available to common shareholders | 39,932 | 144,665 | 276.03 | |||||||||||||
Effect of dilutive securities | ||||||||||||||||
Zero coupon 0.0% convertible bonds | — | 4,022 | ||||||||||||||
Stock option | — | 174 | ||||||||||||||
Diluted net income(loss) per share | ||||||||||||||||
Income from continuing operations | 40,780 | 148,861 | 273.95 | |||||||||||||
Loss on discontinued operations | (848 | ) | 148,861 | (5.70 | ) | |||||||||||
Net income for computation | ¥ | 39,932 | 148,861 | ¥ | 268.25 | |||||||||||
F-48
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in | Thousands | |||||||||||||||
millions | of shares | Yen | U.S. dollars | |||||||||||||
Net | Weighted- | Net income | Net income | |||||||||||||
income | average | (loss) | (loss) | |||||||||||||
(loss) | shares | per share | per share | |||||||||||||
For the year ended March 31, 2008: | ||||||||||||||||
Basic net income(loss) per share | ||||||||||||||||
Income from continuing operations | ¥ | 41,879 | 144,914 | ¥ | 288.99 | |||||||||||
Loss on discontinued operations | (723 | ) | 144,914 | (4.99 | ) | |||||||||||
Net income available to common shareholders | 41,156 | 144,914 | 284.00 | |||||||||||||
Effect of dilutive securities | ||||||||||||||||
Zero coupon 0.0% convertible bonds | — | 4,022 | ||||||||||||||
Stock option | — | 26 | ||||||||||||||
Diluted net income(loss) per share | ||||||||||||||||
Income from continuing operations | 41,879 | 148,962 | 281.14 | |||||||||||||
Loss on discontinued operations | (723 | ) | 148,962 | (4.85 | ) | |||||||||||
Net income for computation | ¥ | 41,156 | 148,962 | ¥ | 276.29 | |||||||||||
Yen in | Thousands | |||||||||||||||
millions | of shares | Yen | U.S. dollars | |||||||||||||
Net | Weighted- | Net income | Net income | |||||||||||||
income | average | (loss) | (loss) | |||||||||||||
(loss) | shares | per share | per share | |||||||||||||
For the year ended March 31, 2009: | ||||||||||||||||
Basic net income(loss) per share | ||||||||||||||||
Income from continuing operations | ¥ | 30,740 | 143,616 | ¥ | 214.04 | $ | 2.18 | |||||||||
Loss on discontinued operations | (2,387 | ) | 143,616 | (16.62 | ) | (0.17 | ) | |||||||||
Net income available to common shareholders | 28,353 | 143,616 | 197.42 | 2.01 | ||||||||||||
Effect of dilutive securities | ||||||||||||||||
Zero coupon 0.0% convertible bonds | (47 | ) | 2,200 | |||||||||||||
Diluted net income(loss) per share | ||||||||||||||||
Income from continuing operations | 30,693 | 145,816 | 210.49 | 2.14 | ||||||||||||
Loss on discontinued operations | (2,387 | ) | 145,816 | (16.37 | ) | (0.16 | ) | |||||||||
Net income for computation | ¥ | 28,306 | 145,816 | ¥ | 194.12 | $ | 1.98 | |||||||||
F-49
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Asset Derivatives | ||||||||||||
[Booked as Other current assets] | ||||||||||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31, 2008 | March 31, 2009 | March 31, 2009 | ||||||||||
Foreign exchange forward contracts | ¥ | 5 | — | — | ||||||||
Interest rate swap agreements | — | — | — | |||||||||
Interest rate currency swap agreements | — | — | — | |||||||||
Total Derivatives | ¥ | 5 | — | — | ||||||||
Liability Derivatives | ||||||||||||
[Booked as Other current liabilities] | ||||||||||||
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31, 2008 | March 31, 2009 | March 31, 2009 | ||||||||||
Foreign exchange forward contracts | — | ¥ | 2 | $ | 21 | |||||||
Interest rate swap agreements | ¥ | 7 | — | — | ||||||||
Interest rate currency swap agreements | 12 | 1 | 10 | |||||||||
Total Derivatives | ¥ | 19 | ¥ | 3 | $ | 31 | ||||||
F-50
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Amount of Gain or (Loss) Recognized in income on | ||||||||||||||||
Derivative | ||||||||||||||||
[Booked as Other, net] | ||||||||||||||||
U.S. dollars | ||||||||||||||||
Yen in millions | in thousands | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Foreign exchange forward contracts | ¥ | 4 | ¥ | 2 | ¥ | (7 | ) | $ | (71 | ) | ||||||
Interest rate swap agreements | 0 | 5 | 7 | 71 | ||||||||||||
Interest rate currency swap agreements | (23 | ) | 11 | 12 | 122 | |||||||||||
Interest rate cap | 8 | — | — | — | ||||||||||||
Total | ¥ | (11 | ) | ¥ | 18 | ¥ | 12 | $ | 122 | |||||||
F-51
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in millions | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Fair Value at | Using Inputs Considered as | |||||||||||||||
March 31, 2009 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Marketable securities | ¥ | 12,332 | ¥ | 12,332 | — | — | ||||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | ¥ | 3 | — | ¥ | 3 | — | ||||||||||
U.S. dollars in thousands | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Fair Value at | Using Inputs Considered as | |||||||||||||||
March 31, 2009 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Marketable securities | $ | 125,542 | $ | 125,542 | — | — | ||||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | 31 | — | $ | 31 | — | ||||||||||
Yen in millions | ||||||||
March 31, 2008 | ||||||||
Carrying | Estimated | |||||||
amount | fair value | |||||||
Asset (Liability) | ||||||||
Cash and cash equivalents | ¥ | 100,809 | ¥ | 100,809 | ||||
Short-term investments | 3,851 | 3,851 | ||||||
Short-term loan receivable | 10 | 10 | ||||||
Long-term loan receivable | 291 | 298 | ||||||
Short-term borrowings | (68,854 | ) | (68,854 | ) | ||||
Long-term debt including the current portion and excluding capital lease obligation | ¥ | (27,398 | ) | ¥ | (29,189 | ) | ||
F-52
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
Yen in millions | in thousands | |||||||||||||||
March 31, 2009 | March 31, 2009 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
amount | fair value | amount | fair value | |||||||||||||
Asset (Liability) | ||||||||||||||||
Cash and cash equivalents | ¥ | 200,966 | ¥ | 200,966 | $ | 2,045,872 | $ | 2,045,872 | ||||||||
Short-term investments | 2,932 | 2,932 | 29,848 | 29,848 | ||||||||||||
Short-term loan receivable | 84 | 84 | 855 | 855 | ||||||||||||
Long-term loan receivable | 292 | 301 | 2,973 | 3,064 | ||||||||||||
Short-term borrowings | (221,342 | ) | (221,342 | ) | (2,253,303 | ) | (2,253,303 | ) | ||||||||
Long-term debt including the current portion and excluding capital lease obligation | ¥ | (663 | ) | ¥ | (652 | ) | $ | (6,749 | ) | $ | (6,637 | ) | ||||
F-53
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
F-54
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
1. Reason for share repurchase: | The repurchase was made to facilitate the S.N. Kohsan’s sale of shares in NIDEC to obtain the funds necessary to repay the loan discussed above, and thereby bring the Company into compliance with Section 402 of the Sarbanes-Oxley Act of 2002 promptly. The share repurchase was within the parameters established in the resolution described above and the repurchase was structured in a manner intended to give all shareholders the opportunity to have their shares repurchased by the Company, on a pro rata basis, at the same time and at the same price. Accordingly, on February 10, 2009, the Company publicly announced its intention to repurchase on J-NET, on the morning of February 12, 2009, 3,500,000 shares at the closing price on the market on February 10, 2009. Based on the offers received, the Company repurchased 2,917,800 of its shares from S.N. Kohsan and 582,200 of its shares from other shareholders. | |
2. Class of shares repurchased: | Common stock | |
3. Total number of shares repurchased: | 3,500,000 shares | |
4. Total amount of repurchase: | ¥15,435 million (representing the closing price of ¥4,410 per share on the Osaka Securities Exchange on February 10, 2009) | |
5. Method of repurchase: | Repurchased through J-NET, the Osaka Securities Exchange |
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
Class of property | 2008 | 2009 | 2009 | |||||||||
Machinery and equipment | ¥ | 9,678 | ¥ | 8,756 | $ | 89,137 | ||||||
Other leased assets | 1,186 | 743 | 7,564 | |||||||||
Less — Accumulated amortization | (7,236 | ) | (6,884 | ) | (70,080 | ) | ||||||
¥ | 3,628 | ¥ | 2,615 | $ | 26,621 | |||||||
F-55
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in | U.S. dollars | |||||||
millions | in thousands | |||||||
Year ending March 31: | ||||||||
2010 | ¥ | 1,988 | $ | 20,238 | ||||
2011 | 983 | 10,007 | ||||||
2012 | 689 | 7,014 | ||||||
2013 | 275 | 2,800 | ||||||
2014 | 42 | 428 | ||||||
2015 and thereafter | 8 | 81 | ||||||
Total minimum lease payments | 3,985 | 40,568 | ||||||
Less — Amount representing interest | (187 | ) | (1,904 | ) | ||||
Present value of net minimum lease payments | 3,798 | 38,664 | ||||||
Less — Current obligations | (1,879 | ) | (19,128 | ) | ||||
Long-term capital lease obligations | ¥ | 1,919 | $ | 19,536 | ||||
Yen in | U.S. dollars | |||||||
millions | in thousands | |||||||
Year ending March 31: | ||||||||
2010 | ¥ | 1,000 | $ | 10,180 | ||||
2011 | 860 | 8,755 | ||||||
2012 | 722 | 7,350 | ||||||
2013 | 602 | 6,128 | ||||||
2014 | 519 | 5,284 | ||||||
2015 and thereafter | 796 | 8,104 | ||||||
Total minimum future rentals | ¥ | 4,499 | $ | 45,801 | ||||
F-56
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in | U.S. dollars in | |||||||
millions | thousands | |||||||
Year ending March 31: | ||||||||
2010 | ¥ | 296 | $ | 3,014 | ||||
2011 | 273 | 2,779 | ||||||
2012 | 269 | 2,738 | ||||||
2013 | 269 | 2,738 | ||||||
2014 | 269 | 2,738 | ||||||
2015 and thereafter | 262 | 2,668 | ||||||
Total minimum future rentals | ¥ | 1,638 | $ | 16,675 | ||||
F-57
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||
Yen in millions | in thousands | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Balance at beginning of year | ¥ | 252 | ¥ | 241 | $ | 2,453 | ||||||
Addition | 47 | 17 | 173 | |||||||||
Utilization | (58 | ) | (140 | ) | (1,425 | ) | ||||||
Foreign exchange impact | 0 | (6 | ) | (61 | ) | |||||||
Balance at end of year | ¥ | 241 | ¥ | 112 | $ | 1,140 | ||||||
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the | |||||||||||||||
For the year ended | year ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Net sales | ¥ | 15,016 | ¥ | 13,370 | ¥ | 7,681 | $ | 78,194 | ||||||||
Loss on discontinued operations before income taxes | (2,019 | ) | (1,572 | ) | (4,977 | ) | (50,667 | ) | ||||||||
Income taxes | 485 | 446 | 1,695 | 17,255 | ||||||||||||
Minority interest in loss of consolidated subsidiaries | �� | (686 | ) | (403 | ) | (895 | ) | (9,111 | ) | |||||||
Loss on discontinued operations | ¥ | (848 | ) | ¥ | (723 | ) | ¥ | (2,387 | ) | $ | (24,300 | ) | ||||
F-58
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the | |||||||||||||||
For the year ended | year ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Net sales: | ||||||||||||||||
Small precision motors: | ||||||||||||||||
Hard disk drives spindle motors | ¥ | 198,196 | ¥ | 223,068 | ¥ | 181,255 | $ | 1,845,210 | ||||||||
Other small precision brushless DC motors | 74,445 | 92,359 | 73,187 | 745,058 | ||||||||||||
Brushless DC fans | 38,656 | 46,525 | 37,345 | 380,179 | ||||||||||||
Other small precision motors | 6,684 | 23,730 | 22,286 | 226,876 | ||||||||||||
Sub-total | 317,981 | 385,682 | 314,073 | 3,197,323 | ||||||||||||
Mid-size motors | 57,389 | 96,377 | 77,156 | 785,463 | ||||||||||||
Machinery | 82,944 | 73,253 | 72,090 | 733,890 | ||||||||||||
Electronic and optical components | 129,635 | 145,896 | 122,552 | 1,247,602 | ||||||||||||
Others | 26,702 | 27,548 | 27,587 | 280,841 | ||||||||||||
Consolidated total | ¥ | 614,651 | ¥ | 728,756 | ¥ | 613,458 | $ | 6,245,119 | ||||||||
F-59
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the | |||||||||||||||
For the year ended | year ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Net sales: | ||||||||||||||||
Japan | ¥ | 329,096 | ¥ | 359,489 | ¥ | 306,971 | $ | 3,125,023 | ||||||||
U.S.A. | 10,747 | 19,513 | 12,864 | 130,958 | ||||||||||||
Singapore | 57,373 | 56,626 | 37,811 | 384,923 | ||||||||||||
Thailand | 80,579 | 109,994 | 93,306 | 949,873 | ||||||||||||
The Philippines | 12,929 | 13,374 | 12,394 | 126,173 | ||||||||||||
China | 36,588 | 45,398 | 48,555 | 494,299 | ||||||||||||
Other | 87,339 | 124,362 | 101,557 | 1,033,870 | ||||||||||||
Consolidated total | ¥ | 614,651 | ¥ | 728,756 | ¥ | 613,458 | $ | 6,245,119 | ||||||||
U.S. dollars | ||||||||||||
in thousands | ||||||||||||
Yen in millions | For the | |||||||||||
For the year ended | year ended | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Long-lived assets: | ||||||||||||
Japan | ¥ | 82,306 | ¥ | 83,541 | $ | 850,463 | ||||||
U.S.A. | 1,128 | 1,387 | 14,120 | |||||||||
Singapore | 2,393 | 1,559 | 15,871 | |||||||||
Thailand | 36,373 | 30,464 | 310,129 | |||||||||
The Philippines | 13,828 | 11,202 | 114,038 | |||||||||
China | 37,336 | 35,120 | 357,528 | |||||||||
Other | 25,465 | 26,412 | 268,880 | |||||||||
Consolidated total | ¥ | 198,829 | ¥ | 189,685 | $ | 1,931,029 | ||||||
F-60
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
F-61
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
F-62
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the | |||||||||||||||
For the year ended | year ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Net sales to external customers: | ||||||||||||||||
NCJ | ¥ | 89,466 | ¥ | 88,954 | ¥ | 62,260 | $ | 633,819 | ||||||||
NET | 67,754 | 95,859 | 80,247 | 816,930 | ||||||||||||
NCC | 14,802 | 14,161 | 18,305 | 186,348 | ||||||||||||
NCD | 3,637 | 4,190 | 7,776 | 79,161 | ||||||||||||
NCS | 49,877 | 45,472 | 27,118 | 276,066 | ||||||||||||
NCH | 34,738 | 39,359 | 37,761 | 384,414 | ||||||||||||
NCF | 5,382 | 5,833 | 7,517 | 76,524 | ||||||||||||
NSNK | 52,361 | 46,259 | 51,035 | 519,546 | ||||||||||||
NCPL | 63,008 | 63,779 | 53,090 | 540,466 | ||||||||||||
NTSC | 22,310 | 25,769 | 22,644 | 230,520 | ||||||||||||
NCEL | 19,849 | 22,392 | 19,666 | 200,204 | ||||||||||||
NSRV | — | 25,378 | 20,029 | 203,899 | ||||||||||||
NSBC | 16,146 | 17,286 | 14,600 | 148,631 | ||||||||||||
NSCJ | 10,748 | 11,163 | 9,389 | 95,582 | ||||||||||||
NMA | 9,079 | 36,352 | 24,729 | 251,746 | ||||||||||||
NNSN | 10,895 | 10,847 | 9,738 | 99,135 | ||||||||||||
All Others | 136,867 | 170,670 | 133,792 | 1,362,028 | ||||||||||||
Total | 606,919 | 723,723 | 599,696 | 6,105,019 | ||||||||||||
US GAAP adjustments *1 | 1,176 | (3,749 | ) | 4,101 | 41,749 | |||||||||||
Consolidation adjustments related to elimination of intercompany transactions via third party | (346 | ) | (47 | ) | 0 | 0 | ||||||||||
Others *2 | 6,902 | 8,829 | 9,661 | 98,351 | ||||||||||||
Consolidated total | ¥ | 614,651 | ¥ | 728,756 | ¥ | 613,458 | $ | 6,245,119 | ||||||||
*1 | US GAAP adjustments are mainly related to the differences of revenue recognition between shipment and delivery bases. | |
*2 | Revenues of subsidiaries not included in management reports due to their immateriality are the main components of Others. |
F-63
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the | |||||||||||||||
For the year ended | year ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Net sales to other operating segments: | ||||||||||||||||
NCJ | ¥ | 91,130 | ¥ | 100,299 | ¥ | 72,064 | $ | 733,625 | ||||||||
NET | 21,486 | 32,334 | 31,125 | 316,858 | ||||||||||||
NCC | 5,371 | 10,776 | 2,624 | 26,713 | ||||||||||||
NCD | 46,828 | 43,849 | 27,310 | 278,021 | ||||||||||||
NCS | 347 | 227 | 205 | 2,087 | ||||||||||||
NCH | 4,344 | 4,298 | 5,105 | 51,970 | ||||||||||||
NCF | 42,845 | 40,649 | 22,669 | 230,775 | ||||||||||||
NSNK | 10,600 | 12,092 | 11,001 | 111,992 | ||||||||||||
NCPL | 8,460 | 6,594 | 6,727 | 68,482 | ||||||||||||
NTSC | 357 | 293 | 211 | 2,148 | ||||||||||||
NCEL | 3,133 | 4,177 | 5,843 | 59,483 | ||||||||||||
NSRV | — | 3,549 | 4,508 | 45,892 | ||||||||||||
NSBC | 3,439 | 3,633 | 3,053 | 31,080 | ||||||||||||
NSCJ | 2,448 | 2,455 | 1,746 | 17,775 | ||||||||||||
NMA | — | 284 | 15 | 153 | ||||||||||||
NNSN | 762 | 826 | 593 | 6,037 | ||||||||||||
All Others | 189,726 | 223,080 | 185,151 | 1,884,872 | ||||||||||||
Total | 431,276 | 489,415 | 379,950 | 3,867,963 | ||||||||||||
Intersegment elimination | (431,276 | ) | (489,415 | ) | (379,950 | ) | (3,867,963 | ) | ||||||||
Consolidated total | — | — | — | — | ||||||||||||
F-64
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Operating income or loss: | ||||||||||||||||
NCJ | ¥ | 11,241 | ¥ | 13,980 | ¥ | 7,315 | $ | 74,468 | ||||||||
NET | 10,822 | 12,606 | 15,629 | 159,106 | ||||||||||||
NCC | 275 | 1,040 | (324 | ) | (3,298 | ) | ||||||||||
NCD | 4,560 | 4,720 | 2,855 | 29,064 | ||||||||||||
NCS | 1,545 | 1,231 | 182 | 1,853 | ||||||||||||
NCH | 386 | 576 | 554 | 5,640 | ||||||||||||
NCF | 4,407 | 4,129 | 2,321 | 23,628 | ||||||||||||
NSNK | 8,198 | 4,608 | 4,473 | 45,536 | ||||||||||||
NCPL | 4,056 | 3,415 | 2,102 | 21,399 | ||||||||||||
NTSC | 1,430 | 1,643 | 745 | 7,584 | ||||||||||||
NCEL | 2,688 | 3,631 | 2,046 | 20,829 | ||||||||||||
NSRV | — | 372 | (225 | ) | (2,291 | ) | ||||||||||
NSBC | 136 | 97 | (281 | ) | (2,861 | ) | ||||||||||
NSCJ | 1,412 | 1,182 | 201 | 2,046 | ||||||||||||
NMA | 59 | 555 | (728 | ) | (7,411 | ) | ||||||||||
NNSN | 545 | 610 | 298 | 3,034 | ||||||||||||
All Others | 13,046 | 22,663 | 13,463 | 137,056 | ||||||||||||
Total | 64,806 | 76,864 | 50,626 | 515,382 | ||||||||||||
Main components of U.S. GAAP adjustments: | ||||||||||||||||
Pension and severance costs | (126 | ) | (483 | ) | (30 | ) | (305 | ) | ||||||||
Lease | (1 | ) | 272 | 376 | 3,828 | |||||||||||
Consolidation adjustments mainly related to elimination of intersegment profits | 1,130 | (1,200 | ) | 2,803 | 28,535 | |||||||||||
Reclassification *1 | (544 | ) | 6,611 | (196 | ) | (1,995 | ) | |||||||||
Others *2 | 671 | (4,522 | ) | (1,773 | ) | (18,050 | ) | |||||||||
¥ | 65,936 | ¥ | 77,542 | ¥ | 51,806 | $ | 527,395 | |||||||||
*1 | Some items are reclassified from other expenses (income) and included in operating expenses (income). Reclassification mainly includes non-recurring gain for the year ended March 31, 2008 and loss on disposals of fixed assets for the year ended March 31, 2009. | |
*2 | Profit or loss of subsidiaries not included in management reports due to their immateriality are the main components of Others. Furthermore, Others includes amortization of capitalized assets related to the business acquisitions for the year ended March 31, 2008 and 2009. |
F-65
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Interest income: | ||||||||||||||||
NCJ | ¥ | 1,873 | ¥ | 2,414 | ¥ | 1,636 | $ | 16,655 | ||||||||
NET | 227 | 184 | 391 | 3,980 | ||||||||||||
NCC | 28 | 48 | 20 | 204 | ||||||||||||
NCD | 55 | 115 | 304 | 3,095 | ||||||||||||
NCS | 487 | 344 | 92 | 937 | ||||||||||||
NCH | 44 | 39 | 11 | 112 | ||||||||||||
NCF | 93 | 116 | 47 | 478 | ||||||||||||
NSNK | 539 | 564 | 415 | 4,225 | ||||||||||||
NCPL | 45 | 81 | 37 | 377 | ||||||||||||
NTSC | 1 | 0 | 1 | 10 | ||||||||||||
NCEL | 29 | 22 | 33 | 336 | ||||||||||||
NSRV | — | 122 | 29 | 295 | ||||||||||||
NSBC | 93 | 78 | 34 | 346 | ||||||||||||
NSCJ | 32 | 24 | 15 | 153 | ||||||||||||
NMA | 19 | 81 | 147 | 1,496 | ||||||||||||
NNSN | 55 | 68 | 39 | 397 | ||||||||||||
All Others | 531 | 681 | 370 | 3,766 | ||||||||||||
Total | 4,151 | 4,981 | 3,621 | 36,862 | ||||||||||||
Intersegment elimination | (1,907 | ) | (2,398 | ) | (1,379 | ) | (14,038 | ) | ||||||||
Consolidated total | ¥ | 2,244 | ¥ | 2,583 | ¥ | 2,242 | $ | 22,824 | ||||||||
F-66
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Interest expense: | ||||||||||||||||
NCJ | ¥ | 1,381 | ¥ | 1,764 | ¥ | 1,038 | $ | 10,567 | ||||||||
NET | 0 | 1 | 3 | 31 | ||||||||||||
NCC | 248 | 244 | 111 | 1,130 | ||||||||||||
NCD | 0 | 0 | 0 | 0 | ||||||||||||
NCS | 0 | 0 | 0 | 0 | ||||||||||||
NCH | 0 | 0 | 0 | 0 | ||||||||||||
NCF | 376 | 243 | 69 | 702 | ||||||||||||
NSNK | 309 | 150 | 7 | 71 | ||||||||||||
NCPL | 17 | 25 | 7 | 71 | ||||||||||||
NTSC | 13 | 13 | 5 | 51 | ||||||||||||
NCEL | 1 | 3 | 2 | 20 | ||||||||||||
NSRV | — | 145 | 74 | 753 | ||||||||||||
NSBC | 180 | 220 | 159 | 1,619 | ||||||||||||
NSCJ | 73 | 78 | 64 | 652 | ||||||||||||
NMA | 101 | 279 | 299 | 3,044 | ||||||||||||
NNSN | 36 | 46 | 65 | 662 | ||||||||||||
All Others | 1,082 | 1,373 | 685 | 6,973 | ||||||||||||
Total | 3,817 | 4,584 | 2,588 | 26,346 | ||||||||||||
Intersegment elimination | (1,841 | ) | (2,215 | ) | (1,184 | ) | (12,053 | ) | ||||||||
Consolidated total | ¥ | 1,976 | ¥ | 2,369 | ¥ | 1,404 | $ | 14,293 | ||||||||
F-67
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Depreciation: | ||||||||||||||||
NCJ | ¥ | 1,487 | ¥ | 1,456 | ¥ | 1,417 | $ | 14,425 | ||||||||
NET | 3,397 | 5,391 | 3,393 | 34,541 | ||||||||||||
NCC | 677 | 945 | 1,138 | 11,585 | ||||||||||||
NCD | 918 | 818 | 689 | 7,014 | ||||||||||||
NCS | 266 | 314 | 92 | 937 | ||||||||||||
NCH | 6 | 7 | 5 | 51 | ||||||||||||
NCF | 3,025 | 3,079 | 2,671 | 27,191 | ||||||||||||
NSNK | 861 | 1,006 | 1,190 | 12,114 | ||||||||||||
NCPL | 1,351 | 1,292 | 1,239 | 12,613 | ||||||||||||
NTSC | 727 | 766 | 709 | 7,218 | ||||||||||||
NCEL | 745 | 915 | 896 | 9,122 | ||||||||||||
NSRV | — | 318 | 452 | 4,601 | ||||||||||||
NSBC | 89 | 105 | 252 | 2,565 | ||||||||||||
NSCJ | 344 | 301 | 303 | 3,085 | ||||||||||||
NMA | 428 | 1,534 | 1,308 | 13,316 | ||||||||||||
NNSN | 463 | 493 | 1,029 | 10,475 | ||||||||||||
All Others | 13,340 | 14,926 | 13,828 | 140,773 | ||||||||||||
Total | 28,124 | 33,666 | 30,611 | 311,626 | ||||||||||||
U.S. GAAP adjustments*1 | 1,580 | 1,520 | 53 | 539 | ||||||||||||
Others*2 | 293 | 1,148 | 1,483 | 15,098 | ||||||||||||
Consolidated total | ¥ | 29,997 | ¥ | 36,334 | ¥ | 32,147 | $ | 327,263 | ||||||||
*1 | Some leased properties are not capitalized in the operating segments but are capitalized under U.S. GAAP. | |
*2 | Depreciation expenses of subsidiaries not included in management reports due to their immateriality are the main components of Others. |
F-68
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||||||
in thousands | ||||||||||||||||
Yen in millions | For the year | |||||||||||||||
For the year ended | ended | |||||||||||||||
March 31 | March 31, | |||||||||||||||
2007 | 2008 | 2009 | 2009 | |||||||||||||
Income tax expenses or benefit: | ||||||||||||||||
NCJ | ¥ | 8,162 | ¥ | 4,069 | ¥ | 3,831 | $ | 39,000 | ||||||||
NET | 88 | 179 | 529 | 5,385 | ||||||||||||
NCC | 0 | 0 | 54 | 550 | ||||||||||||
NCD | 500 | 267 | 548 | 5,579 | ||||||||||||
NCS | 220 | 103 | 0 | 0 | ||||||||||||
NCH | 66 | 98 | 89 | 906 | ||||||||||||
NCF | 12 | 14 | 13 | 132 | ||||||||||||
NSNK | (658 | ) | 59 | 654 | 6,658 | |||||||||||
NCPL | 2,060 | 1,199 | 538 | 5,477 | ||||||||||||
NTSC | 528 | 886 | 29 | 295 | ||||||||||||
NCEL | 1,089 | 1,328 | 705 | 7,177 | ||||||||||||
NSRV | — | 226 | (66 | ) | (672 | ) | ||||||||||
NSBC | 98 | (141 | ) | (374 | ) | (3,807 | ) | |||||||||
NSCJ | 551 | 423 | 66 | 672 | ||||||||||||
NMA | 62 | 340 | 28 | 285 | ||||||||||||
NNSN | 295 | 371 | 141 | 1,435 | ||||||||||||
All Others | 3,479 | 4,048 | 3,379 | 34,399 | ||||||||||||
Total | 16,552 | 13,469 | 10,164 | 103,471 | ||||||||||||
U.S. GAAP adjustments | (757 | ) | 514 | (126 | ) | (1,287 | ) | |||||||||
Consolidation adjustments | 2,150 | 1,947 | 2,426 | 24,702 | ||||||||||||
Consolidated total | ¥ | 17,945 | ¥ | 15,930 | ¥ | 12,464 | $ | 126,886 | ||||||||
F-69
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||
in thousands | ||||||||||||
Yen in millions | For the year | |||||||||||
For the year ended | ended | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Segment assets: | ||||||||||||
NCJ | ¥ | 365,503 | ¥ | 466,817 | $ | 4,752,285 | ||||||
NET | 54,590 | 45,208 | 460,226 | |||||||||
NCC | 11,986 | 10,143 | 103,258 | |||||||||
NCD | 22,883 | 20,961 | 213,387 | |||||||||
NCS | 16,956 | 11,591 | 117,999 | |||||||||
NCH | 11,286 | 10,718 | 109,111 | |||||||||
NCF | 17,544 | 14,930 | 151,990 | |||||||||
NSNK | 89,688 | 86,020 | 875,700 | |||||||||
NCPL | 55,969 | 46,564 | 474,030 | |||||||||
NTSC | 26,379 | 20,553 | 209,233 | |||||||||
NCEL | 29,613 | 27,314 | 278,062 | |||||||||
NSRV | 17,696 | 16,767 | 170,691 | |||||||||
NSBC | 17,994 | 15,785 | 160,694 | |||||||||
NSCJ | 20,545 | 17,592 | 179,090 | |||||||||
NMA | 28,474 | 21,172 | 215,535 | |||||||||
NNSN | 10,882 | 11,538 | 117,459 | |||||||||
All Others | 221,434 | 184,314 | 1,876,352 | |||||||||
Total | 1,019,422 | 1,027,987 | 10,465,102 | |||||||||
U.S. GAAP adjustments: | ||||||||||||
Lease | 2,435 | (436 | ) | (4,439 | ) | |||||||
Property, plant and equipment | (2,721 | ) | (2,970 | ) | (30,235 | ) | ||||||
Deferred tax assets | 11,931 | 9,343 | 95,114 | |||||||||
Marketable securities | 4,245 | 4,037 | 41,097 | |||||||||
Others | (5,489 | ) | (4,965 | ) | (50,544 | ) | ||||||
Sub-total | 10,401 | 5,009 | 50,993 | |||||||||
Elimination of intersegment assets, net of taxes | (490,344 | ) | (459,698 | ) | (4,679,813 | ) | ||||||
Intangible assets and other fair value adjustments | 17,131 | 14,064 | 143,174 | |||||||||
Goodwill | 71,223 | 71,060 | 723,404 | |||||||||
To adjust affiliate from cost to equity method | (227 | ) | (630 | ) | (6,414 | ) | ||||||
Others*1 | 44,108 | 45,092 | 459,046 | |||||||||
Consolidated total | ¥ | 671,714 | ¥ | 702,884 | $ | 7,155,492 | ||||||
*1 | Assets of subsidiaries not included in management reports due to their immateriality are the main components of Others. |
F-70
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars | ||||||||||||
in thousands | ||||||||||||
Yen in millions | For the year | |||||||||||
For the year ended | ended | |||||||||||
March 31 | March 31, | |||||||||||
2008 | 2009 | 2009 | ||||||||||
Expenditure for segment assets: | ||||||||||||
NCJ | ¥ | 1,168 | ¥ | 3,871 | $ | 39,407 | ||||||
NET | 3,002 | 2,301 | 23,425 | |||||||||
NCC | 1,860 | 1,599 | 16,278 | |||||||||
NCD | 480 | 349 | 3,553 | |||||||||
NCS | 196 | 1 | 10 | |||||||||
NCH | 5 | 0 | 0 | |||||||||
NCF | 2,298 | 1,108 | 11,280 | |||||||||
NSNK | 899 | 2,270 | 23,109 | |||||||||
NCPL | 885 | 931 | 9,478 | |||||||||
NTSC | 542 | 360 | 3,665 | |||||||||
NCEL | 1,296 | 1,114 | 11,341 | |||||||||
NSRV | 446 | 1,410 | 14,354 | |||||||||
NSBC | 97 | 62 | 631 | |||||||||
NSCJ | 219 | 262 | 2,667 | |||||||||
NMA | 1,721 | 3,067 | 31,223 | |||||||||
NNSN | 507 | 834 | 8,490 | |||||||||
All Others | 15,660 | 18,517 | 188,506 | |||||||||
Total | 31,281 | 38,056 | 387,417 | |||||||||
Reconciliation *1 | 4,379 | 445 | 4,531 | |||||||||
Consolidated total | ¥ | 35,660 | ¥ | 38,501 | $ | 391,948 | ||||||
*1 | The amounts of expenditure for segment assets were on an accrual basis while the amounts of consolidated total were on a cash basis. |
F-71
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Yen in millions | ||||||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Total | ||||||||||||||||
Net sales | ¥ | 174,947 | ¥ | 190,273 | ¥ | 141,186 | ¥ | 107,052 | ¥ | 613,458 | ||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of products sold | 136,005 | 146,354 | 111,452 | 89,082 | 482,893 | |||||||||||||||
Selling, general and administrative expense | 13,215 | 14,253 | 12,802 | 11,525 | 51,795 | |||||||||||||||
Research and development expenses | 7,335 | 7,280 | 6,894 | 5,455 | 26,964 | |||||||||||||||
156,555 | 167,887 | 131,148 | 106,062 | 561,652 | ||||||||||||||||
Operating income | 18,392 | 22,386 | 10,038 | 990 | 51,806 | |||||||||||||||
Other income (expense): | ||||||||||||||||||||
Interest and dividend income | 632 | 636 | 771 | 504 | 2,543 | |||||||||||||||
Interest expense | (364 | ) | (343 | ) | (347 | ) | (350 | ) | (1,404 | ) | ||||||||||
Foreign exchange gain (loss), net | 4,794 | (2,121 | ) | (12,828 | ) | 6,467 | (3,688 | ) | ||||||||||||
(Loss) gain on marketable securities, net | (24 | ) | (33 | ) | 127 | (1,375 | ) | (1,305 | ) | |||||||||||
Other, net | (347 | ) | (227 | ) | 161 | (510 | ) | (923 | ) | |||||||||||
4,691 | (2,088 | ) | (12,116 | ) | 4,736 | (4,777 | ) | |||||||||||||
Income (loss) from continuing operations before income taxes | 23,083 | 20,298 | (2,078 | ) | 5,726 | 47,029 | ||||||||||||||
Income taxes | (5,891 | ) | (5,275 | ) | (171 | ) | (1,127 | ) | (12,464 | ) | ||||||||||
Income (loss) from continuing operations before minority interest and equity in earnings of affiliated companies | 17,192 | 15,023 | (2,249 | ) | 4,599 | 34,565 | ||||||||||||||
Minority interest in income of consolidated subsidiaries | 2,080 | 1,995 | 195 | (493 | ) | 3,777 | ||||||||||||||
Equity in net losses (income) of affiliated companies | 58 | 36 | (16 | ) | (30 | ) | 48 | |||||||||||||
Income (loss) from continuing operations | 15,054 | 12,992 | (2,428 | ) | 5,122 | 30,740 | ||||||||||||||
Income (loss) from discontinued operations | 55 | (261 | ) | (2,349 | ) | 168 | (2,387 | ) | ||||||||||||
Net income (loss) | ¥ | 15,109 | ¥ | 12,731 | ¥ | (4,777 | ) | ¥ | 5,290 | ¥ | 28,353 | |||||||||
Per share data: | ||||||||||||||||||||
Earning per share — basic | ||||||||||||||||||||
Income (loss) from continuing operations | ¥ | 103.86 | ¥ | 89.62 | ¥ | (16.85 | ) | ¥ | 36.47 | ¥ | 214.04 | |||||||||
Income (loss) from discontinued operations | 0.38 | (1.80 | ) | (16.31 | ) | 1.20 | (16.62 | ) | ||||||||||||
Net income (loss) | 104.24 | 87.82 | (33.16 | ) | 37.67 | 197.42 | ||||||||||||||
Earning per share — diluted | ||||||||||||||||||||
Income (loss) from continuing operations | ¥ | 100.91 | ¥ | 87.05 | ¥ | (16.85 | ) | ¥ | 36.47 | ¥ | 210.49 | |||||||||
Income (loss) from discontinued operations | 0.36 | (1.75 | ) | (16.31 | ) | 1.20 | (16.37 | ) | ||||||||||||
Net income (loss) | 101.27 | 85.30 | (33.16 | ) | 37.67 | 194.12 | ||||||||||||||
Cash dividends | ¥ | 30.00 | ¥ | 0.00 | ¥ | 30.00 | ¥ | 0.00 | ¥ | 60.00 | ||||||||||
F-72
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
U.S. dollars in thousands | ||||||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Total | ||||||||||||||||
Net sales | $ | 1,780,994 | $ | 1,937,015 | $ | 1,437,300 | $ | 1,089,810 | $ | 6,245,119 | ||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of products sold | 1,384,557 | 1,489,911 | 1,134,602 | 906,872 | 4,915,942 | |||||||||||||||
Selling, general and administrative expenses | 134,531 | 145,098 | 130,327 | 117,327 | 527,283 | |||||||||||||||
Research and development expenses | 74,672 | 74,112 | 70,182 | 55,533 | 274,499 | |||||||||||||||
1,593,760 | 1,709,121 | 1,335,111 | 1,079,732 | 5,717,724 | ||||||||||||||||
Operating income | 187,234 | 227,894 | 102,189 | 10,078 | 527,395 | |||||||||||||||
Other income (expense): | ||||||||||||||||||||
Interest and dividend income | 6,434 | 6,474 | 7,849 | 5,131 | 25,888 | |||||||||||||||
Interest expense | (3,706 | ) | (3,491 | ) | (3,533 | ) | (3,563 | ) | (14,293 | ) | ||||||||||
Foreign exchange gain (loss), net | 48,804 | (21,592 | ) | (130,591 | ) | 65,834 | (37,545 | ) | ||||||||||||
(Loss) gain on marketable securities, net | (244 | ) | (336 | ) | 1,293 | (13,998 | ) | (13,285 | ) | |||||||||||
Other, net | (3,533 | ) | (2,311 | ) | 1,639 | (5,191 | ) | (9,396 | ) | |||||||||||
47,755 | (21,256 | ) | (123,343 | ) | 48,213 | (48,631 | ) | |||||||||||||
Income (loss) from continuing operations before income taxes | 234,989 | 206,638 | (21,154 | ) | 58,291 | 478,764 | ||||||||||||||
Income taxes | (59,971 | ) | (53,701 | ) | (1,741 | ) | (11,473 | ) | (126,886 | ) | ||||||||||
Income (loss) from continuing operations before minority interest and equity in earnings of affiliated companies | 175,018 | 152,937 | (22,895 | ) | 46,818 | 351,878 | ||||||||||||||
Minority interest in income of consolidated subsidiaries | 21,175 | 20,309 | 1,985 | (5,019 | ) | 38,450 | ||||||||||||||
Equity in net losses (income) of affiliated companies | 590 | 367 | (163 | ) | (305 | ) | 489 | |||||||||||||
Income (loss) from continuing operations | 153,253 | 132,261 | (24,717 | ) | 52,142 | 312,939 | ||||||||||||||
Income (loss) from discontinued operations | 559 | (2,657 | ) | (23,914 | ) | 1,712 | (24,300 | ) | ||||||||||||
Net income (loss) | $ | 153,812 | $ | 129,604 | $ | (48,631 | ) | $ | 53,854 | $ | 288,639 | |||||||||
Per share data: | ||||||||||||||||||||
Earning per share — basic | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 1.06 | $ | 0.91 | $ | (0.17 | ) | $ | 0.37 | $ | 2.18 | |||||||||
Income (loss) from discontinued operations | 0.00 | (0.02 | ) | (0.17 | ) | 0.01 | (0.17 | ) | ||||||||||||
Net income (loss) | 1.06 | 0.89 | (0.34 | ) | 0.38 | 2.01 | ||||||||||||||
Earning per share — diluted | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 1.03 | $ | 0.89 | $ | (0.17 | ) | $ | 0.37 | $ | 2.14 | |||||||||
Income (loss) from discontinued operations | 0.00 | (0.02 | ) | (0.17 | ) | 0.01 | (0.16 | ) | ||||||||||||
Net income (loss) | 1.03 | 0.87 | (0.34 | ) | 0.38 | 1.98 | ||||||||||||||
Cash dividends | $ | 0.31 | $ | 0.00 | $ | 0.31 | $ | 0.00 | $ | 0.61 | ||||||||||
F-73