Document and Entity Information
Document and Entity Information | |
Mar. 31, 2010
| |
Entity Common Stock, Shares Outstanding | 145,075,080 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | |||
In Millions | Mar. 31, 2010
JPY (¥) | Mar. 31, 2010
USD ($) | Mar. 31, 2009
JPY (¥) |
Current assets: | |||
Cash and cash equivalents | 123309 | $1,325 | 200966 |
Trade notes and accounts receivable, net of allowance for doubtful accounts of yen 717 million on March 31, 2009 and yen 398 million ($4,278 thousand) on March 31, 2010: | |||
Notes | 10,968 | 118 | 11,663 |
Accounts | 151,430 | 1,628 | 111,548 |
Inventories | 69,503 | 747 | 57,475 |
Other current assets | 19,673 | 211 | 20,364 |
Total current assets | 374,883 | 4,029 | 402,016 |
Marketable securities and other securities investments | 17,462 | 188 | 13,344 |
Investments in and advances to affiliated companies | 614 | 7 | 1,549 |
Long-term Investments, Total | 18,076 | 194 | 14,893 |
Property, plant and equipment: | |||
Land | 39,605 | 426 | 39,386 |
Buildings | 127,152 | 1,367 | 112,934 |
Machinery and equipment | 269,208 | 2,893 | 255,887 |
Construction in progress | 12,436 | 134 | 11,835 |
Property, Plant and Equipment, Gross, Total | 448,401 | 4,819 | 420,042 |
Less-Accumulated depreciation | (247,094) | (2,656) | (230,357) |
Property, Plant and Equipment, Net, Total | 201,307 | 2,164 | 189,685 |
Goodwill | 72,231 | 776 | 71,060 |
Other non-current assets, net of allowance for doubtful accounts of yen 1,594 million on March 31, 2009 and yen 1,432 million ($15,391 thousand) on March 31, 2010 | 26,294 | 283 | 25,230 |
Total assets | 692,791 | 7,446 | 702,884 |
Current liabilities: | |||
Short-term borrowings | 115,467 | 1,241 | 221,342 |
Current portion of long-term debt | 1,497 | 16 | 1,883 |
Trade notes and accounts payable | 109,143 | 1,173 | 70,398 |
Other current liabilities | 36,158 | 389 | 24,120 |
Total current liabilities | 262,265 | 2,819 | 317,743 |
Long-term liabilities: | |||
Long-term debt | 1,745 | 19 | 2,578 |
Accrued pension and severance costs | 15,542 | 167 | 15,684 |
Other long-term liabilities | 11,708 | 126 | 9,192 |
Total long-term liabilities | 28,995 | 312 | 27,454 |
Equity: | |||
Common stock authorized 2009 and 2010: 480,000,000 shares; issued and outstanding: 2009-145,075,080 shares / 2010-145,075,080 shares | 66,551 | 715 | 66,551 |
Additional paid-in capital | 69,090 | 743 | 69,162 |
Retained earnings | 257,255 | 2,765 | 212,955 |
Accumulated other comprehensive income (loss): | |||
Foreign currency translation adjustments | (29,234) | (314) | (26,324) |
Unrealized (losses) gains on securities, net of reclassification adjustments | 1,747 | 19 | (417) |
Pension liability adjustments | (1,033) | (11) | (723) |
Treasury stock, at cost: 2009-5,782,871 shares / 2010-5,784,406 shares | (24,067) | (259) | (24,056) |
Total Nidec Corporation shareholders' equity | 340,309 | 3,658 | 297,148 |
Noncontrolling interests | 61,222 | 658 | 60,539 |
Total equity | 401,531 | 4,316 | 357,687 |
Total liabilities and equity | 692791 | $7,446 | 702884 |
1_CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS (Parenthetical) | ||||
In Millions, except Share data | Mar. 31, 2010
JPY (¥) | Mar. 31, 2010
USD ($) | Mar. 31, 2009
JPY (¥) | Mar. 31, 2009
USD ($) |
Trade notes and accounts receivable, allowance for doubtful accounts | 398 | $4 | 717 | |
Other non-current assets, allowance for doubtful accounts | 1432 | $15 | 1594 | |
Common stock, authorized | 480,000,000 | 480,000,000 | ||
Common stock, issued and outstanding | 145,075,080 | 145,075,080 | ||
Treasury stock, shares | 5,784,406 | 5,782,871 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME | ||||
In Millions, except Per Share data | 12 Months Ended
Mar. 31, 2010 JPY (¥) JPY / shares | 12 Months Ended
Mar. 31, 2010 USD ($) USD / shares | 12 Months Ended
Mar. 31, 2009 JPY (¥) JPY / shares | 12 Months Ended
Mar. 31, 2008 JPY (¥) JPY / shares |
Net sales | 587459 | $6,314 | 610803 | 724361 |
Operating expenses: | ||||
Cost of products sold | 436,337 | 4,690 | 480,475 | 567,679 |
Selling, general and administrative expenses | 48,067 | 517 | 51,488 | 49,702 |
Research and development expenses | 24,713 | 266 | 26,825 | 29,583 |
Costs and Expenses, Total | 509,117 | 5,472 | 558,788 | 646,964 |
Operating income | 78,342 | 842 | 52,015 | 77,397 |
Other income (expense): | ||||
Interest and dividend income | 838 | 9 | 2,536 | 2,859 |
Interest expense | (702) | (8) | (1,403) | (2,366) |
Foreign exchange loss, net | (2,968) | (32) | (3,683) | (13,218) |
Gain (loss) from marketable securities, net | 52 | 1 | (1,305) | 454 |
Other, net | (560) | (6) | (890) | (1,037) |
Nonoperating Income (Expense), Total | (3,340) | (36) | (4,745) | (13,308) |
Income from continuing operations before income taxes | 75,002 | 806 | 47,270 | 64,089 |
Income taxes | (17,519) | (188) | (12,475) | (15,858) |
Equity in net income (losses) of affiliated companies | (45) | 0 | (48) | 39 |
Income from continuing operations | 57,438 | 617 | 34,747 | 48,270 |
Loss on discontinued operations | (1,287) | (14) | (3,512) | (1,032) |
Consolidated net income | 56,151 | 604 | 31,235 | 47,238 |
Less: Net income attributable to noncontrolling interests | (4,190) | (45) | (2,882) | (6,082) |
Net income attributable to Nidec Corporation | 51,961 | 558 | 28,353 | 41,156 |
Earning per share-basic | ||||
Income from continuing operations attributable to Nidec Corporation | 3.8 | 4.08 | 2.2 | 2.9 |
Loss on discontinued operations attributable to Nidec Corporation | -6.66 | -0.07 | -17.68 | -4.57 |
Net income attributable to Nidec Corporation | 3.7 | 4.01 | 2 | 2.8 |
Earning per share-diluted | ||||
Income from continuing operations attributable to Nidec Corporation | 3.8 | 4.08 | 2.1 | 2.8 |
Loss on discontinued operations attributable to Nidec Corporation | -6.66 | -0.07 | -17.41 | -4.44 |
Net income attributable to Nidec Corporation | 3.7 | 4.01 | 1.9 | 2.8 |
Cash dividends | 55 | 0.59 | 60 | 50 |
Net income attributable to Nidec Corporation | ||||
Income from continuing operations attributable to Nidec Corporation | 52,889 | 568 | 30,891 | 41,819 |
Loss on discontinued operations attributable to Nidec Corporation | (928) | (10) | (2,538) | (663) |
Net income attributable to Nidec Corporation | 51961 | $558 | 28353 | 41156 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||
In Millions | Common stock
JPY (¥) | Additional paid-in capital
JPY (¥) | Retained earnings
JPY (¥) | Accumulated other comprehensive income (loss)
JPY (¥) | Treasury stock, at cost
JPY (¥) | Loan to Share-holder
JPY (¥) | Nidec Corporation total shareholders' equity
USD ($) | Non-controlling interests
USD ($) | Total
JPY (¥) JPY / shares |
Beginning Balance at Mar. 31, 2007 | 65868 | 68469 | 160480 | 10461 | -262 | 0 | $305,016 | $66,453 | 371469 |
Cumulative effect resulting from the adoption of ASC 740 | (987) | (987) | (987) | ||||||
Comprehensive income: | |||||||||
Net income | 41,156 | 41,156 | 6,082 | 47,238 | |||||
Other comprehensive income (loss): | |||||||||
Foreign currency translation adjustments | (17,107) | (17,107) | (1,512) | (18,619) | |||||
Unrealized gains from (losses) on securities, net of reclassification adjustment | (2,308) | (2,308) | (817) | (3,125) | |||||
Pension liability adjustments | 305 | 305 | (113) | 192 | |||||
Total comprehensive income | 22,046 | 3,640 | 25,686 | ||||||
Exercise of stock option | 380 | 390 | 770 | 770 | |||||
Purchase of treasury stock | (19) | (19) | (19) | ||||||
Dividends paid to shareholders of Nidec Corporation | (7,242) | (7,242) | (7,242) | ||||||
Dividends paid to noncontrolling interests | (1,828) | (1,828) | |||||||
Capital transaction with consolidated subsidiaries and other | (79) | (79) | |||||||
Ending Balance at Mar. 31, 2008 | 66,248 | 68,859 | 193,407 | (8,649) | (281) | 0 | 319,584 | 68,186 | 387,770 |
Adjustment to apply the measurement date provision of ASC 715, net of tax | (106) | (5) | (111) | (22) | (133) | ||||
Comprehensive income: | |||||||||
Net income | 28,353 | 28,353 | 2,882 | 31,235 | |||||
Other comprehensive income (loss): | |||||||||
Foreign currency translation adjustments | (16,091) | (16,091) | (851) | (16,942) | |||||
Unrealized gains from (losses) on securities, net of reclassification adjustment | (1,433) | (1,433) | (772) | (2,205) | |||||
Pension liability adjustments | (1,286) | (1,286) | (164) | (1,450) | |||||
Total comprehensive income | 9,543 | 1,095 | 10,638 | ||||||
Conversion of convertible debt | 303 | 303 | 606 | 606 | |||||
Purchase of treasury stock | (23,775) | (23,775) | (23,775) | ||||||
Payment for loan to shareholder | (14,500) | (14,500) | (14,500) | ||||||
Collection of loan to shareholder | 14,500 | 14,500 | 14,500 | ||||||
Dividends paid to shareholders of Nidec Corporation | (8,699) | (8,699) | (8,699) | ||||||
Dividends paid to noncontrolling interests | (2,205) | (2,205) | |||||||
Capital transaction with consolidated subsidiaries and other | (6,515) | (6,515) | |||||||
Ending Balance at Mar. 31, 2009 | 66,551 | 69,162 | 212,955 | (27,464) | (24,056) | 0 | 297,148 | 60,539 | 357,687 |
Comprehensive income: | |||||||||
Net income | 51,961 | 558 | 45 | 56,151 | |||||
Other comprehensive income (loss): | |||||||||
Foreign currency translation adjustments | (2,910) | (31) | (2) | (3,121) | |||||
Unrealized gains from (losses) on securities, net of reclassification adjustment | 2,164 | 23 | 6 | 2,745 | |||||
Pension liability adjustments | (310) | (3) | 1 | (206) | |||||
Total comprehensive income | 547 | 50 | 55,569 | ||||||
Purchase of treasury stock | (11) | 0 | (11) | ||||||
Dividends paid to shareholders of Nidec Corporation | (7,661) | (82) | (7,661) | ||||||
Dividends paid to noncontrolling interests | (13) | (1,197) | |||||||
Capital transaction with consolidated subsidiaries and other | (72) | (1) | (30) | (2,856) | |||||
Ending Balance at Mar. 31, 2010 | 66551 | 69090 | 257255 | -28520 | -24067 | $3,658 | $658 | 401531 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
In Millions | 12 Months Ended
Mar. 31, 2010 JPY (¥) JPY / shares | 12 Months Ended
Mar. 31, 2010 USD ($) USD / shares | 12 Months Ended
Mar. 31, 2009 JPY (¥) JPY / shares | 12 Months Ended
Mar. 31, 2008 JPY (¥) JPY / shares |
Cash flows from operating activities: | ||||
Consolidated net income | 56151 | $604 | 31235 | 47238 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 29,185 | 314 | 32,147 | 36,334 |
Amortization | 1,954 | 21 | 1,933 | 1,638 |
(Gain) loss from marketable securities, net | (52) | (1) | 1,305 | (454) |
Loss on sales, disposal or impairment of property, plant and equipment | 1,088 | 12 | 1,282 | 1,636 |
Deferred income taxes | (740) | (8) | 1,085 | 2,065 |
Equity in net (income) losses of affiliated companies | 45 | 0 | 48 | (39) |
Foreign currency adjustments | 4,036 | 43 | 2,091 | 8,305 |
Accrual for pension and severance costs, net payments | (1,457) | (16) | 366 | (1,551) |
Changes in operating assets and liabilities: | ||||
Decrease (increase) in notes and accounts receivable | (32,537) | (350) | 38,041 | 26 |
(Increase) decrease in inventories | (8,442) | (91) | 11,238 | (5,575) |
Increase (decrease) in notes and accounts payable | 29,799 | 320 | (46,469) | 5,949 |
(Decrease) increase in accrued income taxes | 5,995 | 64 | (3,631) | (3,601) |
Other | 5,055 | 54 | (4,440) | 2,845 |
Net cash provided by operating activities | 90,080 | 968 | 66,231 | 94,816 |
Cash flows from investing activities: | ||||
Additions to property, plant and equipment | (36,608) | (393) | (38,501) | (35,660) |
Proceeds from sales of property, plant and equipment | 633 | 7 | 865 | 2,010 |
Purchases of marketable securities | (10) | 0 | (3,609) | (231) |
Proceeds from sales of marketable securities | 94 | 1 | 76 | 2,761 |
Acquisitions of business, net of cash acquired | (4,396) | (47) | (756) | (2,619) |
Other | (227) | (2) | (1,448) | (1,942) |
Net cash used in investing activities | (40,514) | (435) | (43,373) | (35,681) |
Cash flows from financing activities: | ||||
(Decrease) increase in short-term borrowings | (109,100) | (1,173) | 153,934 | (15,123) |
Repayments of long-term debt | (1,733) | (19) | (2,067) | (3,966) |
Redemption of corporate bonds | (26,412) | |||
Proceeds from issuance of new shares | 761 | |||
Purchases of treasury stock | (11) | 0 | (23,775) | (19) |
Payments for additional investments in subsidiaries | (3,152) | (34) | (9,286) | (8,043) |
Payment for loan to shareholder | (14,500) | |||
Collection of loan to shareholder | 14,500 | |||
Dividends paid to shareholders of Nidec Corporation | (7,661) | (82) | (8,699) | (7,242) |
Dividends paid to noncontrolling interests | (1,197) | (13) | (2,205) | (1,828) |
Other | 75 | 1 | 384 | 137 |
Net cash (used in) provided by financing activities | (122,779) | (1,320) | 81,874 | (35,323) |
Effect of exchange rate changes on cash and cash equivalents | (4,444) | (48) | (4,575) | (11,787) |
Net increase (decrease) in cash and cash equivalents | (77,657) | (835) | 100,157 | 12,025 |
Cash and cash equivalents at beginning of year | 2,160 | 2,160 | 100,809 | 88,784 |
Cash and cash equivalents at end of year | 123309 | $1,325 | 2160 | 100809 |
Nature of operations:
Nature of operations: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Nature of operations: | 1. Nature of operations: NIDEC Corporation (the Company) and its subsidiaries (collectively NIDEC) are primarily engaged in the design, development, manufacture and marketing of i) small precision motors, which include spindle motors for hard disk drives, motors for optical disk drives, small precision fans and other small motors; ii) mid-size motors, which are used in automobiles, various electric household appliances and industrial equipment; iii) machinery, which includes, test systems, measuring equipment, power transmission equipment, factory automation systems, card readers and industrial robots; iv) electronic and optical components, which include camera shutters, camera lens units, switches, trimmer potentiometers, motor driven actuator units, processing and precision plastic mold products; and v) other products, which include auto parts, pivot assemblies, other components and other services. Manufacturing operations are located primarily in Japan and Asia (China, Thailand, the Philippines, Vietnam and Singapore), and sales subsidiaries are primarily located in Asia, Europe and North America. The main customers for spindle motors are manufacturers of hard disk drives. NIDEC also sells its products to the manufacturers of various automation equipment, electric household appliances, home video game consoles, telecommunication and audio-visual equipment, and automotive components. |
Summary of significant accounti
Summary of significant accounting policies: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Summary of significant accounting policies: | 2. Summary of significant accounting policies: The Company and its subsidiaries in Japan maintain their records and prepare their financial statements in accordance with accounting principles generally accepted in Japan, and its foreign subsidiaries in conformity with those of their countries of domicile. Certain adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements to conform with accounting principles generally accepted in the United States of America. Significant accounting policies after reflecting adjustments for the above are as follows: Estimates The preparation of NIDECs consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates include the allowance for doubtful accounts, depreciation and amortization of long-lived assets, valuation allowance for deferred tax assets, fair value of financial instruments, uncertain tax positions, pension liabilities and the recoverability of long-lived assets and goodwill. Actual results could differ from those estimates. Basis of consolidation and accounting for investments in affiliated companies The consolidated financial statements include the accounts of the Company and those of its majority-owned subsidiary companies. All significant intercompany transactions and accounts have been eliminated. Companies over which NIDEC exercises significant influence, but which it does not control, are classified as affiliated companies and accounted for using the equity method. Consolidated net income includes NIDECs equity in current earnings (losses) of such companies, after elimination of unrealized intercompany profits. On occasion, NIDEC may acquire additional shares of the voting rights of a consolidated subsidiary or dispose of a part of those shares or a Nidec consolidated subsidiary may issue its shares to third parties. With respect to such transactions, all transactions for changes in a parents ownership interest in a subsidiary that do not result in the subsidiary ceasing to be a subsidiary are recognized as equity transactions. The FASB Accounting Standards Codification (ASC) 810, Consolidation (formerly the FASB Interpretation No.46R, Consolidation of Variable Interest Entitiesan interpretation of ARB No.51) requires the consolidation or disclosure of variable interest entities. During the year ended March31, 2009, an entity was identified as a variable interest entity in accordance with ASC 810, but NIDEC was not the primary beneficiary and therefore did not consolidate the entity. During the year ended March31, 2010, NIDEC does not hold any variable interests in a variable interest entity. Translation of foreign currencies Non monetary asset and liability accounts of foreign subsidiaries and affiliates are translated into Japanese yen |
U.S. dollar amounts:
U.S. dollar amounts: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
U.S. dollar amounts: | 3. U.S. dollar amounts: U.S. dollar amounts presented in the consolidated financial statements and the related notes are included solely for the convenience of the reader and are unaudited. These translations should not be construed as representations that the yen amounts actually represent, or have been or could be converted into, U.S. dollars. For this purpose, the rate of 93.04 = U.S. $1, the approximate current exchange rate at March31, 2010, was used for the presentation of the U.S. dollar amounts in the accompanying consolidated financial statements of NIDEC as of and for the year ended March31, 2010. |
Acquisitions and dispositions:
Acquisitions and dispositions: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Acquisitions and dispositions: | 4. Acquisitions and dispositions: On April27, 2007, NIDEC acquired 18,203,000 shares (or, 51.7%) of the common stock in Japan Servo Co., Ltd. (JSRV), currently Nidec Servo Corporation (NSRV), which manufactures and sells motors and motor applied products. Since NIDEC already owned 1,466 shares of NSRVs common stock prior to April27, 2007, total shares and purchase price for NSRV were 18,204,466 and 4,810 million, respectively. NIDEC recognized goodwill amounting to 572 million as a result of this acquisition. During the period between April27, 2007 and March31, 2008, NIDEC acquired an additional 3,288,000 shares of NSRVs common stock, increasing its ownership interest in NSRV to 61.1%. As a result, the number of shares of NSRVs common stock held by NIDEC totaled 21,492,466, representing a 6,611 million purchase price in total, and recognized, goodwill of 1,610 million as of March31, 2008. On June13, 2008, NIDEC acquired all of the voting rights of Shanghai Nidec Automotive Electric Motors Limited. This acquisition did not have a material impact on NIDECs consolidated financial position, results of operations or liquidity. In addition, on August1, 2008, NIDEC acquired an additional 3,500 new shares of Copal Yamada Corporation. NIDEC had already owned 3,000 shares of Copal Yamada Corporation prior to August1, 2008. As a result, the number of shares of Copal Yamada Corporations common shares held by NIDEC became 68.4%. This acquisition did not have a material impact on NIDECs consolidated financial position, results of operations or liquidity. On March31, 2009, NIDEC disposed all of the shares of Nidec Nemicon Corporation, its subsidiary. This disposition did not have a material impact on NIDECs consolidated financial position, results of operations or liquidity. For all of the above acquisitions, consummated prior to March1, 2009, the total cost of these acquisitions has been allocated to the assets acquired and the liabilities assumed based on their respective fair values at the date of the acquisitions in accordance with SFAS 141, Business Combinations. On August4, 2009, NIDEC acquired the additional 60.0% of the voting rights of NTN-Nidec (Zhejiang) Corporation, currently Nidec Bearing (Zhejiang) Corporation (NBCC), and NTN-Nidec (Thailand) Co., Ltd., currently Nidec Bearing (Thailand) Co., Ltd. (NBTC). NIDEC previously owned 40.0% of the voting rights of NBCC and NBTC prior to August4, 2009. As a result, NIDEC acquired all of the voting rights of NBCC and NBTC. These acquisitions did not have a material impact on NIDECs consolidated financial position, results of operations or liquidity. On January26, 2010, NIDEC acquired all of the voting rights of the household motor business of Appliances Components Companies S.p.A.. As a result, NIDEC has included Nidec Sole Motor Corporation S.R.L. (NSMC) in its scope of consolidation as wholly owned subsidiary of NIDEC. This acquisition did not have a material impact on NIDECs consolidated financial position, results of operations or liquidity. On February26, 2010, NIDEC acquired 864,000 shares (or, 90.0%) of SC WADO Co., Ltd. This acquisition did not have a material impact on |
Goodwill and other intangible a
Goodwill and other intangible assets (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Goodwill and other intangible assets | 5. Goodwill and other intangible assets Intangible assets subject to amortization are summarized as follows: Yen in millions U.S dollars in thousands March31 March 31, 2010 2009 2010 Gross carrying amounts Accumulated amortization Gross carrying amounts Accumulated amortization Gross carrying amounts Accumulated amortization Patent rights 507 232 707 302 $ 7,599 $ 3,246 Proprietary technology 1,959 433 1,931 617 20,754 6,632 Customer relationships 5,600 1,103 6,325 1,677 67,981 18,024 Software 6,297 2,480 6,694 3,213 71,948 34,534 Other 1,422 585 1,854 710 19,927 7,631 Total 15,785 4,833 17,511 6,519 $ 188,209 $ 70,067 The weighted average amortization period for patent rights, proprietary technology, customer relationships and software are 8 years, 10 years, 12 years and 5 years, respectively. Total amortization of intangible assets for the years ended March31, 2008, 2009 and 2010 amounted to 1,540 million, 1,784 million and 1,863 million ($20,024 thousand), respectively. Total indefinite lived intangible assets amounted to 145 million and 144 million ($1,548 thousand) as of March31, 2009 and 2010, respectively. The estimated aggregate amortization expense for intangible assets for the next five years is as follows: Yen inmillions U.Sdollars inthousands Years ending March 31, 2011 1,975 $ 21,227 2012 1,803 19,379 2013 1,613 17,337 2014 1,315 14,134 2015 948 $ 10,189 NIDEC has completed the annual impairment test for existing goodwill as required by ASC 350 as of January1, 2010. For the years ended March31, 2008, 2009 and 2010, NIDEC has determined that the fair value of each reporting unit which includes goodwill has been in excess of its carrying amount. Accordingly, for the years ended March31, 2008, 2009 and 2010, no goodwill impairment loss has been recorded. Due to the discontinued OPU business, an impairment loss of 357 million of goodwill in All Others segment for the year ended March31, 2009 and due to discontinued SME business, an impairment loss of 230million ($2,472 thousand) of goodwill in NTSC (Nidec Tosok Corporation) segment for the year ended March31, 2010 was recorded as loss on discontinued operations in the consolidated statement of income in accordance with ASC 205-20 Presentation of Financial Statements-Discontinued Operations (formerly SFAS No.144, Accounting for the impairment or disposal of Long-Lived Assets). The carrying amounts of goodwill by operating reportable segment as of March31, 2009 and 2010 are as follows. Reportable segment information is described in Note 26 (2). Yen in millions U.Sdollars inthousands March31, March 31, 2010 2009 2010 NSNK 22,445 22,445 $ 241,240 NCPL 13,223 13,223 142,122 N |
Supplemental cash flow informat
Supplemental cash flow information: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Supplemental cash flow information: | 6. Supplemental cash flow information: Cash payments for income taxes were 17,019 million, 13,315 million and 11,504 million ($123,646 thousand) for the years ended March31, 2008, 2009 and 2010, respectively. Interest payments during the years ended March31, 2008, 2009 and 2010 were 2,501 million, 1,441 million and 706 million ($7,588 thousand), respectively. Tax benefits related to a stock-based compensation plan of 9 million was classified as operating cash flows for the year ended March31, 2008. There was no impact for the year ended March31, 2009 and 2010. Capital leasing receivables of 663 million was obtained for the year ended March31, 2009. There was no impact for the years ended March31, 2008 and 2010, respectively. Capital lease obligations of 1,075 million, 762 million and 602 million ($6,470 thousand) were incurred for the years ended March31, 2008, 2009 and 2010, respectively. Conversion of convertible debt into common stock was 606million for the year ended March31, 2009. There was no impact for the years ended March31, 2008 and 2010, respectively. |
Allowance for doubtful accounts
Allowance for doubtful accounts: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Allowance for doubtful accounts: | 7. Allowance for doubtful accounts: NIDEC estimates losses for uncollectible accounts based on historical experience and the evaluation of the likelihood of success in collecting specific customer receivables. An analysis of activity within the allowance for doubtful accounts for the years ended March31, 2008, 2009 and 2010 is as follows: Yen in millions U.S.dollars inthousands 2008 2009 2010 2010 Allowance for doubtful accounts at April1 2,163 2,246 2,311 $ 24,839 Provision for doubtful accounts, net of reversal 312 349 31 333 Write-offs (149 ) (273 ) (492 ) (5,288 ) Acquisition and other 95 (4 ) 41 441 Translation adjustment and other (175 ) (7 ) (61 ) (656 ) Allowance for doubtful accounts at March31 2,246 2,311 1,830 $ 19,669 |
Inventories:
Inventories: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Inventories: | 8. Inventories: Inventories consist of the following: Yen in millions U.S.dollars Inthousands March31 March 31, 2010 2009 2010 Finished goods 26,521 28,323 $ 304,419 Raw materials 13,004 19,428 208,813 Work in process 14,567 17,995 193,411 Project in progress 1,124 653 7,018 Supplies and other 2,259 3,104 33,362 57,475 69,503 $ 747,023 |
Other current assets:
Other current assets: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Other current assets: | 9. Other current assets: Other current assets as of March31, 2009 and 2010 consist of the following: Yen in millions U.S.dollars inthousands March31 March 31, 2010 2009 2010 Deferred tax assets (Note 18) 7,409 5,651 $ 60,737 Other receivable 5,741 4,825 51,859 Time deposit 2,932 3,891 41,821 Other 4,282 5,306 57,029 20,364 19,673 $ 211,446 Other primarily consists of taxes receivable and prepaid expenses. |
Marketable securities and other
Marketable securities and other securities investments: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Marketable securities and other securities investments: | 10. Marketable securities and other securities investments: Marketable securities and other securities investments include debt and equity securities of which the aggregate fair value, gross unrealized gains and losses and cost are as follows: Yen in millions March31, 2009 Cost Gross unrealized gains Gross unrealized losses Fair 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 Yen in millions March31, 2010 Cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale Equity securities 8,993 7,714 143 16,564 Held-to-maturity Japanese government debt securities 200 200 9,193 7,714 143 16,764 Securities not practicable to fair value Equity securities 698 U.S. dollars in thousands March 31, 2010 Cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale Equity securities $ 96,657 $ 82,911 $ 1,537 $ 178,031 Held-to-maturity Japanese government debt securities 2,150 2,150 $ 98,807 $ 82,911 $ 1,537 $ 180,181 Securities not practicable to fair value Equity securities $ 7,502 During the years ended March31, 2008, 2009 and 2010, the net unrealized gain on available-for-sale securities included as a component of accumulated other comprehensive income, net of applicable taxes, decreased by 2,308 million, 1,433 million and increased by 2,164 million ($23,259 thousand), respectively. Proceeds from sales of available-for-sale securities were 2,221 million, 317 million and 94 million ($1,010 thousand) for the years ended March31, 2008, 2009 and 2010, respectively. On those sales, gross realized gains were 805 million, 241 million and 66 million ($709 thousand) and gross realized losses were 7 million, 4 million and 0 million ($0 thousand), respectively. NIDEC holds long-term investment securities that are classified as marketable securities and other securities investments. The securities issued by various non-public companies are recorded at cost, as their fair values are not readily determinable. NIDECs management employs a systematic methodology to assess the recoverability of such investments by reviewing the financial position of the underlying companies and the prevailing market conditions in which these companies operate to de |
Investments in and transactions
Investments in and transactions with affiliated companies: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Investments in and transactions with affiliated companies: | 11. Investments in and transactions with affiliated companies: Summarized financial information for affiliated companies accounted for using the equity method is shown below: Yen in millions U.S.dollars inthousands March31 March 31, 2010 2009 2010 Current assets 3,659 30 $ 322 Non-current assets 4,844 394 4,235 Total assets 8,503 424 $ 4,557 Current liabilities 5,029 124 $ 1,333 Long-term liabilities Shareholders equity 3,474 300 3,224 Total liabilities and shareholders equity 8,503 424 $ 4,557 NIDECs share of shareholders equity 1,390 120 $ 1,290 NIDECs investment in equity-method affiliates 1,158 120 $ 1,290 Loan receivable from affiliated companies 122 113 $ 1,215 Number of affiliated companies at end of period 3 1 Yen in millions U.S.dollars inthousands For the year ended March31 For the yearended March31, 2010 2008 2009 2010 Net revenues 16,848 11,722 3,617 $ 38,876 Gross profit 1,532 966 386 4,149 Net income (loss) 171 (223 ) (175 ) (1,881 ) NIDECs share of net income (loss) 45 (80 ) (70 ) (752 ) Adjustments (6 ) 32 25 268 Equity (loss) income 39 (48 ) (45 ) $ (484 ) As of March31, 2008, entities comprising a significant portion of NIDECs investment in affiliated companies include NTN-Nidec (Zhejiang) Corporation (NNSC) (40.0%), NTN-Nidec (Thailand) Co., Ltd. (NNTC) (40.0%), Nidec Development Philippines Corporation (NDF) (39.9%), Copal Yamada Corporation (CYC) (28.6%)and, Copal Yamada (Vietnam) Co., Ltd. (CYVC) (28.6%). As of March31, 2009, entities comprising a significant portion of NIDECs investment in affiliated companies include NNSC (40.0%), NNTC (40.0%)and NDF (39.9%). CYC and CYVC became NIDECs consolidated subsidiaries during the year ended March31, 2009. As of March31, 2010, entities comprising a significant portion of NIDECs investment in affiliated companies include NDF (39.9%). NNSC and NNTC became NIDECs consolidated subsidiaries during the year ended March31, 2010. Account balances and transactions with affiliated companies are presented below: Yeninmillions U.S.dollars inthousands March31 March 31, 2010 2009 2010 Trade notes and accounts receivable 181 113 $ 1,215 Trade notes and accounts payable 2,072 Yen in millions U.S.dollars inthousands For the year ended March31 For the year ended March31, 2010 2008 2009 2010 Sales of products 552 330 10 $ 107 Purchases of goods 13,482 10,126 2,726 $ |
Other non-current assets:
Other non-current assets: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Other non-current assets: | 12. Other non-current assets: Other non-current assets as of March31, 2009 and 2010 consist of the following: Yen in millions U.S.dollars inthousands March31 March 31, 2010 2009 2010 Intangible assets* 10,952 11,136 $ 119,690 Deferred tax assets 11,264 12,153 130,621 Other 3,014 3,005 32,298 25,230 26,294 $ 282,609 Notes: * Intangible assets information is described in Note 5 Goodwill and other intangible assets |
Short-term borrowings and long-
Short-term borrowings and long-term debt: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Short-term borrowings and long-term debt: | 13. Short-term borrowings and long-term debt: Short-term borrowings at March31, 2009 and 2010 consist of the following: Yen in millions U.S. dollars in thousands March31 March 31, 2010 2009 2010 Loans, principally from banks with average interest at March31, 2009 and 2010 of 0.53% and 0.25%per annum, respectively 221,342 115,467 $ 1,241,047 At March31, 2010, NIDEC had unused lines of credit amounting to 148,202million ($1,592,885 thousand) with banks. Under these programs, NIDEC is authorized to obtain short-term financing at prevailing interest rates. Long-term debt at March31, 2009 and 2010 is comprised of the following: Yen in millions U.S.dollars inthousands March31 March 31, 2010 2009 2010 Unsecured loans, representing obligations principally to banks and an insurance company Due 2009 to 2026 in 2009 with interest ranging from 0.00% to 6.40%per annum in 2009 Due 2010 to 2026 in 2010 with interest ranging from 0.00% to 9.30%per annum in 2010 663 640 $ 6,879 Long-term capital lease obligations Due 2009 to 2015 in 2009, with interest from 0.19% to 5.85%per annum in 2009 Due 2010 to 2016 in 2010, with interest from 0.19% to 12.43%per annum in 2010 3,798 2,602 27,966 4,461 3,242 34,845 LessCurrent portion due within one year (1,883 ) (1,497 ) (16,090 ) 2,578 1,745 $ 18,755 The aggregate amounts of annual maturity of long-term debt during the next five years are as follows: Yeninmillions U.S.dollars in thousands Year ending March31 2011 1,497 $ 16,090 2012 919 9,877 2013 409 4,396 2014 144 1,548 2015 67 720 2016 and thereafter 206 $ 2,214 Standard agreements with certain banks in Japan include provisions that collateral (including sums on deposit with such banks) or guarantees will be furnished upon the banks request and that any collateral furnished, pursuant to such agreements or otherwise, will be applicable to all present or future indebtedness to such banks. There was no collateral furnished pursuant to the standard agreements with banks as of March31, 2010 and 2009. |
Other current liabilities:
Other current liabilities: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Other current liabilities: | 14. Other current liabilities: Other current liabilities as of March31, 2009 and 2010 consist of the following: Yen in millions U.S.dollars inthousands March31 March 31, 2010 2009 2010 Accrued expenses 13,995 18,455 $ 198,356 Income taxes payable 3,008 8,479 91,133 Payable for property, plant and equipment 2,342 4,824 51,849 Other 4,775 4,400 47,291 24,120 36,158 $ 388,629 |
Pension and severance plans:
Pension and severance plans: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Pension and severance plans: | 15. Pension and severance plans: The Company and certain subsidiaries sponsor pension and retirement plans, which entitle employees, under most circumstances, to lump-sum indemnities or pension payments based on current rates of pay and length of service or the number of points. Under normal circumstances, the minimum payment prior to retirement age is an amount based on voluntary retirement. Employees receive additional benefits upon involuntary retirement, including retirement at the mandatory retirement age. As of April1, 2008, NIDEC adopted the measurement date provision of ASC 715, CompensationRetirement Benefits, (formerly SFAS No.158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plansan amendment of FASB Statements No.87, 88, 106, and 132(R)). In accordance with this provision, the measurement dates of some of the Japanese benefit pension plans were changed from December31 to March31. By the application of the second approach described in ASC 715-20-65-1, at the beginning of the previous fiscal year, accrued pension and severance costs increased by 225 million. Retained earnings, net of tax was reduced by 106 million, and accumulated other comprehensive income, net of tax was reduced by 5million. Information regarding NIDECs employees defined benefit plans is as follows: Japanese plans: Yen in millions U.S.dollars inthousands March31 March 31, 2010 2009 2010 Change in benefit obligation: Benefit obligation at beginning of year 19,474 19,276 $ 207,180 ASC 715 measurement date adjustment 256 Service cost 1,163 1,155 12,414 Interest cost 335 331 3,558 Actuarial loss 366 587 6,309 Plan amendment (206 ) (2,214 ) Acquisition and other 23 Benefits paid (2,341 ) (2,192 ) (23,560 ) 19,276 18,951 203,687 Change in plan assets: Fair value of plan assets at beginning of year 8,476 7,085 76,150 ASC 715 measurement date adjustment 32 Actual return on plan assets (1,442 ) 1,270 13,650 Employer contribution 1,043 1,008 10,834 Plan amendment (68 ) (731 ) Benefits paid (1,024 ) (1,319 ) (14,176 ) Fair value of plan assets at end of year 7,085 7,976 85,727 Funded status 12,191 10,975 $ 117,960 Amounts included in the consolidated balance sheet are comprised of: Yen in millions U.S.dollars inthousands March31 March 31, 2010 2009 2010 Accrued pension and severance costs 12,191 10,975 $ 117,960 Net amounts recognized 12,191 10,975 $ 117,960 Amounts included in accumulated other comprehensive income (loss) as pension liability adjustments are comprised of: Yeninmillions U.S.dollars inthousands March31 |
Other long-term liabilities:
Other long-term liabilities: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Other long-term liabilities: | 16. Other long-term liabilities: Other long-term liabilities as of March31, 2009 and 2010 consist of the following: Yen in millions U.S.dollars inthousands March31 March 31, 2010 2009 2010 Deferred tax liabilities 2,388 3,426 $ 36,823 Long-term accrued liabilities 2,164 1,326 14,252 Unrecognized tax benefits*1 2,481 5,098 54,794 Other*2 2,159 1,858 19,970 9,192 11,708 $ 125,839 Notes: *1. Unrecognized tax benefits information is described in Note 18 Income taxes *2. Other primarily consists of revenue received in advance. |
Equity:
Equity: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Equity: | 17. Equity: The Japanese Company Law (the Company Law) provides that an amount equal to 10% of cash dividends from retained earnings by the Company and its Japanese subsidiaries must be appropriated as a legal reserve. No further appropriations are required when the sum of the legal reserves reaches 25% of stated capital. These reserves currently exceed 25% of stated capital and are available for dividends under the Company Law subject to approval at the shareholders meeting. Certain foreign subsidiaries are also required to appropriate their earnings to legal reserves under the laws of the respective countries. The amount of statutory retained earnings of the Company available for dividend payments to shareholders was 74,252 million and 98,247 million ($1,055,965 thousand) for the years ended March31, 2009 and 2010, respectively. In accordance with customary practice in Japan, the appropriations are not accrued in the financial statements for the period to which they relate, but are recorded in the subsequent accounting period. Retained earnings for the year ended March31, 2010 includes amounts representing final cash dividends of 5,572 million ($59,888 thousand), 40 ($0.43) per share. Repurchased treasury stock is not entitled to a dividend under the Company Law. NIDEC resolved to repurchase its own shares at several meetings of its Board of Directors during the year ended March31, 2009. In accordance with the resolution, NIDEC repurchased 5,732,600 shares of treasury stock for the aggregate cost of 23,758 million. NIDEC owned 5,782,871 shares, or 24,056million and 5,784,406 shares, or 24,067 million ($258,674 thousand) of treasury stock repurchased for the year ended March31, 2009 and 2010, which were restricted regarding the payment of cash dividend. Retained earnings relating to equity in undistributed earnings reflect 357 million, 557 million and 197 million ($2,117 thousand) of accumulated deficit of the companies accounted for by the equity method for the years ended March31, 2008, 2009 and 2010. Tax effects allocated to each component of other comprehensive income (loss) and reclassification adjustments, including amounts attributable to noncontrolling interests for the years ended March31, 2008, 2009 and 2010 are as follows: Yen in millions Pre-tax amount Tax expense Net-of-tax amount For the year ended March31, 2008: Foreign currency translation adjustments: Foreign currency translation adjustments arising during period (18,944 ) 325 (18,619 ) Unrealized gains (losses) from securities: Unrealized holding gains (losses) arising during period (4,842 ) 1,985 (2,857 ) Reclassification adjustments for gains and losses realized in net income (454 ) 186 (268 ) Pension liability adjustment: Actual (gains) losses arising during period (240 ) 472 232 Reclassification adjustments for actual gains (losses) realized in net income (5 ) 2 (3 ) Reclassification adjustments for prior service credit realized |
Income taxes:
Income taxes: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Income taxes: | 18. Income taxes: The components of income from continuing operations before income tax comprise the following: Yen in millions U.S.dollars inthousands For the year ended March31 For the year ended March 31, 2010 2008 2009 2010 Income from continuing operations before income taxes: The Company and domestic subsidiaries 26,851 20,396 16,639 $ 178,837 Foreign subsidiaries 37,238 26,874 58,363 627,289 64,089 47,270 75,002 $ 806,126 The provision for income taxes consists of the following: Yen in millions U.S.dollars inthousands For the year ended March31 For the year ended March 31, 2010 2008 2009 2010 Current income tax expense: The Company and domestic subsidiaries 8,534 5,960 9,216 $ 99,054 Foreign subsidiaries 4,812 4,345 9,043 97,195 Total current 13,346 10,305 18,259 196,249 Deferred income tax expense (benefit): The Company and domestic subsidiaries 4,865 1,908 198 2,128 Foreign subsidiaries (2,353 ) 262 (938 ) (10,082 ) Total deferred 2,512 2,170 (740 ) (7,954 ) Total provision 15,858 12,475 17,519 $ 188,295 NIDEC is subject to a number of different income taxes, which, in the aggregate, indicate a statutory rate in Japan of approximately 41.0% in 2008, 2009 and 2010. Reconciliation of the differences between the statutory tax rate and the effective income tax rate is as follows: FortheyearendedMarch31 2008 2009 2010 Statutory tax rate 41.0 % 41.0 % 41.0 % Increase (reduction) in taxes resulting from: Tax benefit in foreign subsidiaries (20.1 ) (18.9 ) (23.2 ) Tax (benefit) on undistributed earnings 1.6 (1.1 ) 3.3 Valuation allowance (1.4 ) 3.6 0.4 Liabilities for unrecognized tax benefits 2.5 (0.2 ) 3.4 Accumulated earnings tax of foreign subsidiaries 0.6 1.0 (0.1 ) Other 0.5 1.0 (1.4 ) Effective income tax rate 24.7 % 26.4 % 23.4 % The effective income tax rate for the year ended March31, 2010 was lower compared to the effective income tax rate for the year ended March31, 2009. The decrease was mainly due to the net impact of a decrease in the impact on the effective tax rate of the valuation allowance and tax benefit in foreign subsidiaries. With regard to the effective tax rates of the Company and domestic subsidiaries for the year ended March31, 2009, it approached the statutory tax rate. The main reason was due to a net impact of an increase in the impact on the effective tax rate of the valuation allowance, decrease in tax on undistribute |
Reconciliation of the differenc
Reconciliation of the differences between basic and diluted earnings per share: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Reconciliation of the differences between basic and diluted earnings per share: | 19. Reconciliation of the differences between basic and diluted earnings per share: The tables below set forth a reconciliation of the differences between basic and diluted income attributable to Nidec Corporation per share for the years ended March31, 2008, 2009 and 2010. Yen inmillions Thousands of shares Yen U.S. dollars Net income (loss) attributable to Nidec Corporation Weighted- average shares Net income (loss) attributableto Nidec Corporation per share Net income (loss) attributableto Nidec Corporation per share For the year ended March31, 2008: Basic net income attributable to Nidec Corporation per share Income from continuing operations attributable to Nidec Corporation 41,819 144,914 288.57 Loss on discontinued operations attributable to Nidec Corporation (663 ) 144,914 (4.57 ) Net income attributable to Nidec Corporation 41,156 144,914 284.00 Effect of dilutive securities Zero coupon 0.0% convertible bonds 4,022 Stock option 26 Diluted net income attributable to Nidec Corporation per share Income from continuing operations attributable to Nidec Corporation 41,819 148,962 280.73 Loss on discontinued operations attributable to Nidec Corporation (663 ) 148,962 (4.44 ) Net income attributable to Nidec Corporation 41,156 148,962 276.29 Yen inmillions Thousands of shares Yen U.S. dollars Net income (loss) attributable to Nidec Corporation Weighted- average shares Net income (loss) attributableto Nidec Corporation per share Net income (loss) attributableto Nidec Corporation per share For the year ended March31, 2009: Basic net income attributable to Nidec Corporation per share Income from continuing operations attributable to Nidec Corporation 30,891 143,616 215.10 Loss on discontinued operations attributable to Nidec Corporation (2,538 ) 143,616 (17.68 ) Net income attributable to Nidec Corporation 28,353 143,616 197.42 Effect of dilutive securities Zero coupon 0.0% convertible bonds (47 ) 2,200 Diluted net income attributable to Nidec Corporation per share Income from continuing operations attributable to Nidec Corporation 30,844 145,816 211.53 Loss on discontinued operations attributable to Nidec Corporation (2,538 ) 145,816 (17.41 ) Net income attributable to Nidec Corporation 28,306 145,816 194.12 Yen inmillions Thousands of shares Yen U.S. dollars Net income (loss) attributable to Nidec Corporation Weighted- average shares Net income (loss) attributableto Nidec Corporation per share Net income (loss) attributablet |
Derivatives:
Derivatives: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Derivatives: | 20. Derivatives: NIDEC manages the exposure of its financial assets and liabilities to interest rate and foreign exchange rate movements through the use of derivative financial instruments which include foreign exchange forward contracts, interest rate swaps, and interest rate currency swap agreements. The contracted amounts outstanding for foreign exchange forward contracts on March31, 2009 and 2010 were 67 million and 123 million ($1,322 thousand), respectively. Interest rate currency swap agreement, which mature in 2011, is designed to reduce NIDECs exposure to losses resulting from adverse fluctuations in cash flows due to changes in interest rates and currency exchange rates on underlying debt instruments. The contracted amounts outstanding on March31, 2009 and 2010 were 72 million and 48 million ($516 thousand), respectively. The interest rate swap agreements, which were designed for the same purpose as the interest rate currency swap, matured in the year ended March31, 2009. Fair Values of Derivative Instruments Derivatives not designated as hedging instruments under ASC 815 are as follows: Liability Derivatives [BookedasOthercurrentliabilities] Yen in millions U.S. dollars inthousands March31,2009 March31,2010 March31,2010 Foreign exchange forward contracts 2 2 $ 21 Interest rate currency swap agreements 1 0 0 Total Derivatives 3 2 $ 21 The Effect of Derivative Instruments on the Consolidated Statements of Income for the years ended March31, 2008, 2009 and 2010 Derivatives not designated as hedging instruments under ASC 815 are as follows: AmountofGainor(Loss)Recognizedinincomeon Derivative [Booked as Other, net] Yen in millions U.S.dollars inthousands March31, March 31, 2010 2008 2009 2010 Foreign exchange forward contracts 2 (7 ) 0 $ 0 Interest rate swap agreements 5 7 Interest rate currency swap agreements 11 12 2 21 Total 18 12 2 $ 21 Nidec does not have derivatives designated as hedging instruments under ASC 815. |
Fair Value:
Fair Value: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Fair Value: | 21. Fair Value: Under Statement of ASC 820, Fair Value Measurements and Disclosures (formerly SFAS No.157, Fair Value Measurements), fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect NIDECs assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs (other than quoted prices) that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Assets and Liabilities that are measured at Fair Value on a Recurring Basis: The following table provides information by level for assets and liabilities that are measured at fair value, as defined by ASC 820, on a recurring basis. Yen in millions FairValue at March31,2009 FairValueMeasurements UsingInputsConsideredas Level 1 Level2 Level3 Assets: Marketable securities 12,332 12,332 Liabilities: Derivative liabilities 3 3 Yen in millions FairValue at March31,2010 FairValueMeasurements UsingInputsConsideredas Level 1 Level2 Level3 Assets: Marketable securities 16,764 16,764 Liabilities: Derivative liabilities 2 2 U.S. dollars in thousands FairValue at March31,2010 Fair Value Measurements Using Inputs Considered as Level 1 Level2 Level3 Assets: Marketable securities $ 180,181 $ 180,181 Liabilities: Derivative liabilities $ 21 $ 21 Level 1 marketable securities are comprised primarily of equity securities, which are valued using an unadjusted quoted market price in active markets with sufficient volume and frequ |
Related party transactions:
Related party transactions: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Related party transactions: | 22. Related party transactions: As of March31, 2010, the Chief Executive Officer (CEO) of the Company and a business entity discussed below indirectly owned by the CEO held 8.5% and 3.9% of the outstanding shares of the Company, respectively. There were no significant related party transactions in the fiscal year ended March31, 2010 other than those described in Note 11. Loan to S.N. Kohsan In December2008, the Company advanced a loan of 14,500million to S.N. Kohsan, a company indirectly owned by the CEO. The loan was guaranteed by the CEO and collateralized by a pledge of 4,500,000 of the CEOs shares in NIDEC. The loan had a term of 5 years and accrued interest quarterly at an annual rate of 2.4%. The loan was repaid in full on February17, 2009 after the Company and the CEO determined that the loan was not permitted under Section402 of the U.S. Sarbanes-Oxley Act of 2002. The loan receivable and its subsequent repayment was recorded in the balance sheet in equity and is presented as a financing activity in the Cash Flow Statement. S.N. Kohsan obtained the funds to repay the loan through the sale of a total of 3,356,000 of its shares in NIDEC through the J-NET and on the Osaka Securities Exchange. Of these shares, 2,917,800 were purchased by the Company through the J-NET for a total of 12,867 million. A special committee of the Companys Board of Corporate Auditors conducted an independent investigation of this matter with the assistance of independent counsel and concluded that the failure to comply with Section402 was inadvertent. We voluntarily brought this matter to the attention of the U.S. Securities and Exchange Commission (the SEC). The Division of Enforcement of the SEC advised that it was conducting an informal inquiry into the issue, and we cooperated fully with the informal inquiry. We have subsequently been advised by the Staff of the Division of Enforcement that its investigation has been concluded and that the Staff will not recommend that enforcement proceedings be commenced. During the period the loan was outstanding, S.N. Kohsan qualified as a variable interest entity. NIDEC was not the primary beneficiary. |
Lease commitments:
Lease commitments: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Lease commitments: | 23. Lease commitments: NIDEC leases certain assets under capital lease and operating lease arrangements. An analysis of leased assets under capital leases is as follows: Yen in millions U.S.dollars inthousands March31 March 31, 2010 2009 2010 Class of property Machinery and equipment 8,756 6,182 $ 66,445 Other leased assets 743 447 4,804 Less - Accumulated amortization (6,884 ) (5,022 ) (53,977 ) 2,615 1,607 $ 17,272 Amortization expenses under capital leases for the years ended March31, 2008, 2009 and 2010 were 1,977million, 1,553million and 1,005million ($10,802 thousand), respectively. Future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of March31, 2010 are as follows: Yen inmillions U.S.dollars inthousands Year ending March 31: 2011 1,240 $ 13,328 2012 918 9,867 2013 387 4,160 2014 113 1,215 2015 34 365 2016 and thereafter 7 74 Total minimum lease payments 2,699 29,009 LessAmount representing interest (97 ) (1,043 ) Present value of net minimum lease payments 2,602 27,966 LessCurrent obligations (1,178 ) (12,661 ) Long-term capital lease obligations 1,424 $ 15,305 Rental expenses under operating leases for the years ended March31, 2008, 2009 and 2010 were 1,129million, 1,351million and 1,674million ($17,992 thousand), respectively. The minimum rental payments required under operating leases relating primarily to land, buildings and equipment having initial or remaining non-cancelable lease terms in excess of one year at March31, 2010 are as follows: Yen inmillions U.S.dollars inthousands Year ending March 31: 2011 1,267 $ 13,618 2012 988 10,619 2013 834 8,964 2014 586 6,298 2015 313 3,364 2016 and thereafter 1,317 14,155 Total minimum future rentals 5,305 $ 57,018 NIDEC is a lessor in direct financing leases and operating leases for which a portion of the land, office and manufacturing facilities is subleased over various terms. The direct financing leases did not have a material impact on our consolidated financial position or results of operations. Rental revenues under operating leases for the years ended March31, 2008, 2009 and 2010 were 103 million, 168million and 317million ($3,407 thousand), respectively. The future minimum lease payments to be received under operating leases that have remaining non-cancelable terms at March31, 2010 are as follows: Yen inmillions U.S.dollars inthousands Year ending March 31: 2011 314 $ 3,375 2012 298 3,203 2013 298 3,203 2014 171 1,838 |
Other commitments and contingen
Other commitments and contingencies, concentrations and factors that may affect future operations: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Other commitments and contingencies, concentrations and factors that may affect future operations: | 24. Other commitments and contingencies, concentrations and factors that may affect future operations: Commitments Commitments outstanding at March31, 2010 for the purchase of property, plant and equipment and other assets approximated 2,115 million ($22,732 thousand). Contingencies NIDEC has guaranteed approximately 146 million ($1,569 thousand) of bank loans for employees in connection with their housing costs at March31, 2010. If an employee defaults on his/her loan payments, NIDEC would be required to perform under the guarantee. The undiscounted maximum amount of NIDECs obligation to make future payments in the event of defaults is approximately 146 million ($1,569 thousand). The current carrying amount of the liabilities for NIDECs obligations under the guarantee is zero. Concentration of risk NIDEC is dependent on a number of large customers for a substantial portion of NIDECs net sales. Sales to NIDECs six largest customers represented approximately 37%, 36%, and 41% of consolidated net sales for the years ended March31, 2008, 2009, and 2010, respectively. Sales to NIDECs largest customer were approximately 11%, 10%, and 11% of consolidated net sales for the years ended March31, 2008, 2009, and 2010, respectively. Accounts receivable are financial instruments that expose NIDEC to a concentration of credit risk. At March31, 2009, the six largest customers with outstanding accounts receivable balances totaled 36,693million, or 33% of the gross accounts receivable, compared to 61,629million ($662,393 thousand), or 41% of the gross accounts receivable, at March31, 2010. If any one or group of these customers receivable balances should be deemed uncollectable, it would have a materially adverse effect on NIDECs results of operations and financial condition. Product warranty NIDEC guarantees the performance of products delivered and services rendered for a certain period or term. Estimates for warranty cost are made based on historical warranty claim experience. The changes in product warranty liability for the years ended March31, 2009 and 2010 are summarized as follows: Yen in millions U.S.dollars inthousands March31 March 31, 2010 2009 2010 Balance at beginning of year 241 112 $ 1,204 Addition 17 122 1,311 Utilization (140 ) (149 ) (1,601 ) Foreign exchange impact (6 ) Balance at end of year 112 85 $ 914 |
Discontinued Operations
Discontinued Operations (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Discontinued Operations | 25. Discontinued Operations As of December31, 2008, NIDEC discontinued its optical pickup unit (OPU) business. The results of the OPU business were previously recorded in the NSNK and All Others reportable segment. NIDEC discontinued the OPU business by winding down operations in an effort to concentrate management resources and focus capital and RD expenditures on other growing businesses. Total exit costs were 3,972 million (net of tax 2,564 million), which includes an impairment loss of 357 million of goodwill, loss on disposal of fixed assets and inventories, and other closing costs. As of September30, 2009, NIDEC discontinued the semiconductor manufacturing equipment (SME) business included within the NTSC (Nidec Tosok Corporation) and All Others reportable segments, in order to improve profitability by prioritizing NIDECs investment of management resources to the development and production of new products in the automobile parts and measuring equipment businesses, areas with more potential for growth than the SME business. Total exit costs were 1,835million ($19,723 thousand) (net of tax 1,174million ($12,618 thousand)), which includes an impairment loss of 230million ($2,472 thousand) of goodwill, loss on disposal of inventories and fixed assets, and other closing costs. The operating results of the OPU and SME business and exit costs with related taxes were recorded as net loss on discontinued operations in the consolidated statement of income in accordance with ASC 205-20 Presentation of Financial Statements-Discontinued Operations (formerly SFAS No.144, Accounting for the impairment or disposal of Long-Lived Assets.). All prior period information has been reclassified to be consistent with the current period presentation. Operating results of discontinued operations for the year ended March31, 2008, 2009 and 2010 were as follows: Yen in millions For the year ended March31,2008 OPU business SME business Total Net sales 13,370 4,395 17,765 (Loss) income on discontinued operations before income taxes (1,572 ) 166 (1,406 ) Income taxes 446 (72 ) 374 (Loss) income on discontinued operations (1,126) 94 (1,032) Yen in millions For the yearended March31, 2009 OPU business SME business Total Net sales 7,681 2,655 10,336 Loss on discontinued operations before income taxes (4,977 ) (241 ) (5,218 ) Income taxes 1,695 11 1,706 Loss on discontinued operations (3,282) (230) (3,512) Yen inmillions U.S.dollars inthousands Fortheyear ended March 31, 2010 Forthe year ended March31, 2010 Net sales 604 $ 6,492 Loss on discontinued operations before income taxes (2,047 ) (22,001 ) Income taxes 760 8,169 Loss on discontinued operations (1,287) $ (13,832 ) |
Segment information:
Segment information: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Segment information: | 26. Segment information: In accordance with ASC 205-20, Presentation of Financial Statements-Discontinued Operations (formerly SFAS No.144, Accounting for the Impairment or Disposal of Long-Lived Assets), amounts in the segment information do not reflect discontinued operations, and previous fiscal years segment information has been reclassified. (1) Enterprise-wide information: Product information The following table provides product information for the years ended March31, 2008, 2009 and 2010: Yen in millions U.S. dollars in thousands For the year ended March31 For the year ended March31, 2010 2008 2009 2010 Net sales: Small precision motors: Hard disk drives spindle motors 223,068 181,255 203,845 $ 2,190,939 Other small precision brushless DC motors 92,359 73,187 75,641 812,995 Brushless DC fans 46,525 37,345 32,651 350,935 Other small precision motors 23,730 22,286 18,023 193,712 Sub-total 385,682 314,073 330,160 3,548,581 Mid-size motors 96,377 77,156 73,381 788,704 Machinery 68,858 69,435 47,966 515,542 Electronic and optical components 145,896 122,552 107,173 1,151,902 Others 27,548 27,587 28,779 309,319 Consolidated total 724,361 610,803 587,459 $ 6,314,048 The Hard disk drives spindle motors group of products consists of hard disk drives spindle motors for 3.5-inch, 2.5-inch, and 1.8-inch hard disk drives. The Other small precision brushless DC motors group of products consists of brushless motors for many types of products, including optical disk drives, copiers, printers and fax machines. The Brushless DC fans group of products consists of brushless fans, which are used in many types of products, including computers and game machines for the purpose of lowering the temperature of central processing units in these products. The Other small precision motors group of products consists of vibration motors for mobile phones, brush DC motors for many types of products, and stepping motors. The Mid-size motors group of products consists of motors which are used in automobiles, various electric household appliances and industrial equipment. The Machinery group of products consists of test systems, measuring equipment, power transmission equipment, factory automation systems, card readers and industrial robots. The Electronic and optical components group of products consists of camera shutters, camera lens units, switches, trimmer potentiometers, motor driven actuator units, processing and precision plastic mold products. Others consists of auto parts, pivot assemblies, other components and other services. Geographic information Revenues from external customers, which are attributed to countries based on the location of the parent company or the subsidiaries that transacted with the external customer for the years ended March31, 2008, 2 |
Subsequent events:
Subsequent events: (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Subsequent events: | 27. Subsequent events: Dividends for the second half of the fiscal year ended March31, 2010 Subsequent to March31, 2010, the Companys Board of Directors declared a cash dividend of 5,572million ($59,888 thousand) payable on June2, 2010 to stockholders as of March31, 2010. Share Exchange Agreement with Nidec Servo Corporation On April26, 2010, at their respective board meetings held, the Company and Nidec Servo Corporation (NSRV) have decided to enter into a share exchange transaction (the Share Exchange) to make NSRV a wholly owned subsidiary of the Company and the two companies have signed a Share Exchange Agreement. 1) Reasonforthe share exchange The Company and NSRV have determined that, in order for NSRV to further grow its business and improve its profitability, it is imperative that management decisions be made promptly and flexibly, resources be fully shared with the Company, investments by both the Company and NSRV produce better results, and an operational structure be established where NSRV is fully integrated with the Company to achieve better performance. 2) Share exchange procedureandeffective date The Share Exchange will become effective on October 1, 2010, per approval of NSRVs shareholders at the ordinary general meeting held on June 18, 2010. The Company to use a simplified share exchange procedure in accordance with Article 796, Paragraph 3, of the Company Act, without obtaining the approval of its shareholders for the Share Exchange. 3) Ratio applied to the allocation of shares For each share of Nidec Servo common stock, 0.0570 shares of Nidec common stock will be allocated. In the event of a significant change to the factors and assumptions used for calculating the ratio, the above share exchange ratio may be modified upon the agreement of Nidec and Nidec Servo. 4) Number of shares of the Company allocated in the share exchange Nidec expects to allocate 731,673 shares of its common stock in the Share Exchange. Nidec intends to use shares of its common stock held in treasury, and does not intend to issue any new shares, for the Share Exchange. |
Quarterly Financial Data for th
Quarterly Financial Data for the year ended March 31, 2010: (Unaudited) (Additional paid-in capital) | |
12 Months Ended
Mar. 31, 2010 | |
Quarterly Financial Data for the year ended March 31, 2010: (Unaudited) | 28. Quarterly Financial Data for the year ended March31, 2010: (Unaudited) Yen in millions First Quarter Second Quarter Third Quarter Fourth Quarter Total Net sales 123,486 145,257 152,391 166,325 587,459 Operating expenses: Cost of products sold 96,218 109,010 110,104 121,005 436,337 Selling, general and administrative expense 11,383 12,050 12,338 12,296 48,067 Research and development expenses 5,601 6,160 6,433 6,519 24,713 113,202 127,220 128,875 139,820 509,117 Operating income 10,284 18,037 23,516 26,505 78,342 Other income (expense): Interest and dividend income 201 176 225 236 838 Interest expense (206 ) (189 ) (144 ) (163 ) (702 ) Foreign exchange (loss) gain, net (1,050 ) (4,653 ) 1,750 985 (2,968 ) (Loss) gain on marketable securities, net (15 ) 255 (233 ) 45 52 Other, net (464 ) 98 185 (379 ) (560 ) (1,534 ) (4,313 ) 1,783 724 (3,340 ) Income from continuing operations before income taxes 8,750 13,724 25,299 27,229 75,002 Income taxes (2,484 ) (4,011 ) (7,311 ) (3,713 ) (17,519 ) Equity in net (losses) income of affiliated companies (107 ) 28 32 2 (45 ) Income from continuing operations 6,159 9,741 18,020 23,518 57,438 Loss on discontinued operations (94 ) (1,193 ) (1,287 ) Consolidated net income 6,065 8,548 18,020 23,518 56,151 Less: Net income attributable to noncontrolling interests (246 ) (579 ) (1,705 ) (1,660 ) (4,190 ) Net income attributable to Nidec Corporation 5,819 7,969 16,315 21,858 51,961 Per share data: Earning per sharebasic Income from continuing operations attributable to Nidec Corporation 42.22 63.43 117.13 156.92 379.70 Loss on discontinued operations attributable to Nidec Corporation (0.44 ) (6.22 ) (6.66 ) Net income attributable to Nidec Corporation 41.78 57.21 117.13 156.92 373.04 Earning per sharediluted Income from continuing operations attributable to Nidec Corporation 42.22 63.43 117.13 156.92 379.70 Loss on discontinued |