FINANCIAL
SECTION
– 51 Management’s Discussion and Analysis – 53 Operating Risks
– 54 Financial Summary – 56 Consolidated Balance Sheet – 58 Consolidated Statement of Income
– 58 Consolidated Statement of Comprehensive Income – 59 Consolidated Statement of Changes in Net Assets – 60 Consolidated Statement of Cash Flows
– 61 Notes to Consolidated Financial Statements – 84 Management’s Report on Internal Control
over Financial Reporting – 85 Report of Independent Auditors
Revenues and Expenses
In the iscal year under review, consolidated net sales declined 2.2% year-on-year, to ¥206.0 billion, due mainly to sluggish demand result- ing from an economic slowdown in China and Southeast Asia and to foreign currency translation differences involving a strong yen.
Gross proit beneited from a decline in fuel and raw material prices but decreased 1.4% year-on-year, to ¥52.9 billion, due to factors such as lower sales. Operating income declined 6.2%, to ¥16.6 billion, due to costs related to the acquisition of three companies in Europe and the United States and foreign currency translation differences. Proit before income taxes decreased 8.3%, to ¥15.4 billion, due to losses arising from ixed-asset disposal and the liquidation of subsid- iaries. Proit attributable to owners of parent increased 5.1%, to ¥11.5 billion, owing mainly to a 30.5% decline, to ¥4.2 billion, in income taxes following the application of tax effect accounting.
Net income per share increased from ¥151.07 in the previous iscal year to ¥158.69, and ROE rose from 6.4% to 6.6%.
Performance by Business Segment Printing and Industrial Materials Products
In Printing & variable information products operations in Japan, adhesive products for seals and labels were impacted by unseason- able weather conditions for food-use products but sales of medical- and distribution-use products were solid. Overseas, sales were impacted by an economic slowdown, mainly in China.
In Industrial & material operations, equipment for mail-order business sold well, but sales of motorcycle- and automobile-use adhesive products and window ilms were sluggish due to an eco- nomic slowdown in emerging countries in Asia.
As a result of the above, net sales in Printing and Industrial Materials Products declined 2.3% year-on-year, to ¥85.7 billion, and operating income declined 39.9%, to ¥1.7 billion.
Electronic and Optical Products
In Advanced materials operations, sales of semiconductor-related adhesive tapes and equipment were maintained at the same level as the previous iscal year, owing to a recovery in demand for products for smartphones and other devices from the second quarter. Multilayer ceramic capacitor-related tapes experienced a recovery in demand from the autumn but declined year-on-year due to a weak irst half.
In Optical products operations, sales of LCD-related adhesive products were low due to sluggish demand for products for large televisions and others.
As a result of the above, net sales in Electronic and Optical Products were down 2.6% year-on-year, at ¥83.2 billion, and operating income decreased 13.3%, to ¥9.2 billion.
Paper and Converted Products
In Fine & specialty paper products operations, sales of mainstay color papers for envelopes were low and there were also declines for construction material papers and oil resistant papers.
In Converted products operations, sales of casting papers for carbon iber composite materials were solid for aircraft use. Sales of release papers for FPC cover lay ilms and release ilms for optical- related products were also steady.
As a result of the above, net sales in Paper and Converted Products declined 0.9% year-on-year, to ¥37.1 billion, while operating income rose 34.0%, to ¥5.8 billion.
Management’s Discussion and Analysis
Net Sales Operating Income
210.5
206.0
2016 2017
Printing and Industrial Materials Products –2.0
Electronic and Optical Products
–2.2 Paper and Converted Products
–0.3
17.7
16.6
2016 2017
Printing and Industrial Materials Products
–1.1 Electronic and Optical Products
–1.4
Paper and Converted Products
+1.5
Adjustment –0.0
¥ Billion ¥ Billion
(Fiscal years ended March 31) (Fiscal years ended March 31)
FINANCIAL SECTION
Financial Position A s s e t s
Total assets as of March 31, 2017, were ¥274.2 billion, an increase of
¥33.5 billion from the end of the previous iscal year. The main changes were as follows:
· Cash and deposits -¥20.7 billion
· Trade notes and accounts receivable +¥4.5 billion
· Inventories +¥3.5 billion
· Property, plant and equipment +¥9.0 billion
· Goodwill +¥34.5 billion
L i a b i l i t i e s
Total liabilities as of March 31, 2017, were ¥95.5 billion, an increase of
¥26.9 billion from the end of the previous iscal year. The main changes were as follows:
· Trade notes and accounts payable +¥5.4 billion
· Short-term loans payable -¥1.1 billion
· Current portion of long-term loans payable +¥3.1 billion
· Long-term loans payable +¥17.8 billion
N e t A s s e t s
Net assets as of March 31, 2017, were ¥178.7 billion, an increase of ¥6.6 billion from the end of the previous iscal year. The main changes were as follows:
· Retained earnings +¥7.5 billion
Cash Flows
Cash and cash equivalents as of March 31, 2017, amounted to ¥41.3 billion, a decrease of ¥19.0 billion year-on-year.
C a s h F l ow s f r om O p e r a t i n g A c t i v i t i e s
Net cash provided by operating activities increased ¥4.4 billion year- on-year, to ¥24.4 billion. The principal movements were as follows.
· Proit before income taxes -¥1.4 billion
· Depreciation and amortization -¥1.3 billion
· Trade notes and accounts receivable -¥2.5 billion
· Trade notes and accounts payable +¥5.0 billion
· Income taxes paid +¥1.7 billion
C a s h F l ow s f r om I n v e s t i n g A c t i v i t i e s
Net cash used in investing activities decreased ¥38.5 billion year-on- year, to ¥48.4 billion. The principal movements were as follows.
· Payments into time deposits -¥1.2 billion
· Proceeds from withdrawal of time deposits +¥2.2 billion
· Purchase of property, plant and equipment -¥3.2 billion
· Purchase of shares and membership interests of subsidiaries resulting in change in scope of consolidation -¥36.9 billion
C a s h F l ow s f r om F i n a n c i n g A c t i v i t i e s
Net cash provided by inancing activities amounted to ¥5.3 billion compared with net cash used of ¥4.0 billion in the previous iscal year. The principal movements were as follows.
· Short-term loans payable -¥1.7 billion
· Proceeds from long-term loans payable +¥20.9 billion
· Repayments of long-term loans payable -¥9.3 billion
Management’s Discussion and Analysis
N e t A s s e t s C a s h F l ow s
172.1
178.7
2016 2017
Total shareholders’
equity +7.5
Total accumulated other comprehensive
income –0.7
Non- controlling
interests –0.3 Share
subscription rights
+0.0
41.3 60.3
2016 2017
Net cash provided by
operating activities +24.4
Net cash used in investing activities
–48.4
Net cash provided by financing activities
+5.3
Effect of exchange rate change on cash
and cash equivalents
+0.0 Decrease in cash and cash equivalents
resulting from exclusion of subsidiaries
from consolidation –0.3
¥ Billion ¥ Billion
(Fiscal years ended March 31) (Fiscal years ended March 31)
Operating Risks
The following is a summary of risks that could affect the LINTEC Group’s operations. This summary provides speciic examples of major risks that are anticipated, but it does not include all risks.
1. Changes in Economic Conditions
The Group’s operations include development in a wide range of industries. Therefore, domestic and overseas economic conditions affect the Group’s operations directly and indirectly. As a result, future trends in economic conditions could affect the Group’s business results. Furthermore, global trends in the electronics industry affect the Group’s electronics-related products business. Future market trends could affect the Group’s business results.
2. Changes in Selling Prices
Due to intense competition in both the domestic and overseas markets in which the Group operates, the Group may be unable to maintain selling prices to preserve suficient earnings or sales share. Furthermore, the Group’s business results could be affected by dificulties related to cost reductions aimed at maintaining proits and recovering its share by reining customer services.
3. Changes in Raw Material Prices
The Group uses a large quantity of pulp for paper and petrochemical products as raw materials and fuel. The prices of these materials and fuels luctuate in accordance with market conditions, such as inven- tories and the supply–demand balance. The Group purchases raw materials in light of careful monitoring of market trends. However, a dramatic change in raw material prices could affect the Group’s business results.
4. Changes in Foreign Exchange Rates
The Group conducts foreign currency-denominated procurement and sales overseas as well as inance transactions between both domestic and overseas Group companies. Therefore, changes in foreign exchange rates could affect the Group’s business results.
5. Overseas Operations
The Group conducts manufacturing and business operations in markets worldwide. In these countries, the following events could affect the Group’s business results.
(1) Political instability or a deterioration in security due to such factors as terrorism, a political change, or a coup d’état
(2) Labor disputes, such as those involving strikes or boycotts (3) Infrastructure failures, such as those related to electric power,
water, or communications
(4) Outbreaks of contagious diseases
(5) Unpredictable changes in laws and regulations, such as those involving tax systems, foreign exchange, or customs
(6) Problems arising between the Group and its business associates or in the collection of accounts receivable due to differences in cultures or business practices
6. New Product Development
The Group pursues R&D activities with a view to realizing comprehensive technological capabilities that cater to market demand and bringing to market competitive, high-value-added products. Accordingly, the Group is stepping up allocations of management resources to increase its number of researchers and to pursue such initiatives as joint research with other companies and academic institutions.
However, there is no guarantee that such investment of management resources in R&D will result in the development of new products or increase operating income. Due to such factors as extended development periods, it could become necessary to discontinue development, and if product development costs cannot be recovered, it could affect the Group’s business results.
7. Intellectual Property Rights
The Group takes necessary measures to protect intellectual property rights in Japan and overseas for various original production technologies that it has developed. However, legal measures alone do not provide complete protection, possibly preventing the Group from effectively protecting the rights it has obtained. Furthermore, in the event that a lawsuit is iled by a third party regarding intellectual property rights infringement associated with the Group’s products, the Group’s business results could be affected.
8. Signiicant Lawsuits
In conducting business in Japan and overseas, the Group may be subject to lawsuits or other claims related to product liability, environmental, or intellectual property rights issues. Lawsuits or claims, depending on their content, could affect the Group’s business results.
9. Legal and Regulatory Systems
In the countries in which it conducts business operations, the Group is subject to various legal and regulatory systems, and as such is working to ensure rigorous compliance with these systems. In the event that the systems are strengthened or changed, the Group’s business activities could be restricted or the Group’s business results could be affected.
2017 2016 2015 2014 F or t h e y e a r :
Net sales ¥ 205, 975 ¥210,501 ¥207,255 ¥203,242
Operating income 16, 595 17,692 16,881 13,766
% of net sales 8.1% 8.4% 8.1% 6.8%
Profit before income taxes 15,398 16,799 17,555 12,883
Profit attributable to owners of parent 11,450 10,899 11,659 8,501
Return on equity 6.6% 6.4% 7.2% 5.8%
Return on assets 6.1% 7.4% 7.8% 6.0%
Per share data (yen):
Net income ¥ 158.69 ¥ 151.07 ¥ 161.63 ¥ 114.22
Net assets 2,465.43 2,370.49 2,363.81 2,100.87
Cash dividends 66.00 54.00 48.00 42.00
Depreciation and amortization ¥ 7,466 ¥ 8,800 ¥ 8,713 ¥10,055
Purchase of property, plant and equipment (13,049) (9,810) (6,299) (5,508)
Net cash provided by operating activities 24,361 19,928 15,485 16,309
Net cash used in investing activities (48,378) (9,898) (5,104) (6,952)
Net cash provided by (used in) financing activities 5,257 (4,044) (3,135) (8,020)
At year-end:
Current assets ¥151,449 ¥163,647 ¥163,017 ¥149,396
Current liabilities 64,401 56,389 57,058 54,820
Working capital 87,048 107,258 105,958 94,575
Cash and cash equivalents 41,284 60,323 56,050 44,992
Property, plant and equipment, net 73,871 64,859 61,503 61,456
Long-term debt, less current portion 17,795 — — —
% of shareholders’ equity 10.3% — — —
Total assets 274,199 240,720 237,444 225,073
Net assets 178,690 172,101 171,674 152,610
% of total assets 64.9% 71.1% 71.8% 67.3%
Number of shares outstanding 76,564,240 76,564,240 76,564,240 76,564,240
Number of employees 4,760 4,246 4,413 4,223
Segment information: Net sales:
Printing and Industrial Materials Products ¥85,721 ¥88,100 ¥86,826 ¥86,310
Electronic and Optical Products 83,278 85,895 83,281 79,143
Paper and Converted Products 52,632 54,576 54,564 52,781
Segment income:
Printing and Industrial Materials Products 1,672 2,785 2,878 2,290
Electronic and Optical Products 9,155 10,562 10,071 6,846
Paper and Converted Products 5,767 4,303 3,996 4,645
Financial Summary
LINTEC Corporation and its consolidated subsidiaries Years ended March 31
(Supplementary information)
Effective the year ended March 31, 2011, the “Accounting Standard for Disclosure about Segments of an Enterprise and Related Information” (Accounting Standards Board of Japan (ASBJ) Statement No. 17, issued by ASBJ on March 27, 2009) and the “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ Guidance No. 20, issued by ASBJ on March 21, 2008) have been applied.
Since it is impracticable to restate segment information of the iscal years of 2010 and before complying revised accounting standards for segment information, only reportable segment information for the year ended March 31, 2011 onward have been presented.
Millions of yen, except per share data, number of shares, and number of employees
2013 2012 2011 2010 2009 2008
¥190,844 ¥200,905 ¥212,733 ¥189,348 ¥194,901 ¥202,297
10,564 13,975 20,889 11,576 8,498 14,894
5.5% 7.0% 9.8% 6.1% 4.4% 7.4%
10,836 13,382 19,565 11,399 5,215 13,191
7,681 8,648 13,622 7,284 3,391 9,308
5.6% 6.6% 10.9% 6.2% 2.9% 8.0%
5.2% 6.5% 9.7% 6.1% 3.0% 6.6%
¥ 102.83 ¥ 115.26 ¥ 180.21 ¥ 96.36 ¥ 44.86 ¥ 123.15
1,909.57 1,766.60 1,715.78 1,596.37 1,497.58 1,598.30
34.00 40.00 40.00 24.00 20.00 24.00
¥ 10,141 ¥ 10,079 ¥10,178 ¥10,537 ¥11,286 ¥ 9,011
(13,823) (8,760) (8,237) (7,777) (9,584) (14,700)
19,619 18,910 23,307 22,259 12,979 17,739
(13,966) (12,262) (9,926) (9,253) (9,752) (15,071)
(2,877) (5,099) (2,820) (3,454) (2,300) (769)
¥138,505 ¥137,229 ¥132,891 ¥121,451 ¥ 95,937 ¥120,028
56,911 62,075 60,465 58,654 43,655 67,631
81,593 75,153 72,426 62,797 52,282 52,397
40,739 36,036 35,188 25,387 15,370 17,315
64,915 62,273 61,888 63,337 67,010 73,711
— — — 54 107 201
— — — 0.0% 0.1% 0.2%
216,048 210,203 206,188 195,656 172,854 204,852
143,569 132,847 130,576 121,502 113,930 121,635
66.0% 62.8% 62.9% 61.7% 65.5% 59.4%
76,564,240 76,564,240 76,564,240 76,564,240 76,564,240 76,564,240
4,270 4,286 4,198 4,037 3,987 3,802
¥82,785 ¥90,143 ¥91,936 — — —
72,372 73,925 81,193 — — —
52,061 53,225 55,317 — — —
2,380 5,213 7,990 — — —
3,196 3,942 6,732 — — —
4,980 4,846 6,129 — — —
Millions of yen
Thousands of U.S. dollars (Note 1)
ASSETS 2017 2016 2017
C u r r e n t a s s e t s :
Cash and deposits (Notes 12, 14) ¥ 45, 060 ¥ 65,733 $ 401, 641
Trade notes and accounts receivable (Note 14) 66, 801 62,331 595, 431
Inventories (Note 3) 34, 584 31,066 308, 267
Deferred tax assets (Note 19) 1, 614 1,121 14, 390
Other (Notes 14, 16) 3, 530 3,538 31, 225
Allowance for doubtful accounts ( 114) (143) ( 1, 017)
Total current assets 151, 449 163,647 1, 349, 938
N on - c u r r e n t a s s e t s :
Property, plant and equipment (Notes 6, 10, 13):
Buildings and structures 71, 545 69,970 637, 716
Machinery, equipment and vehicles 124, 185 116,352 1, 106, 920
Land 11, 057 10,184 98, 564
Construction in progress 2, 163 2,864 19, 286
Other 12, 511 12,070 111, 517
221, 463 211,442 1, 974, 005
Accumulated depreciation ( 147, 592) (146,583) ( 1, 315, 557)
Property, plant and equipment, net 73, 871 64,859 658, 447
Intangible assets:
Goodwill 34, 558 22 308, 039
Other (Note 13) 4, 000 2,334 35, 660
Total intangible assets 38, 559 2,357 343, 700
Investments and other assets:
Investment securities (Notes 14, 15) 3, 102 3,126 27, 657
Deferred tax assets (Note 19) 5, 063 4,978 45, 137
Other 2, 256 1,854 20, 116
Allowance for doubtful accounts ( 105) (103) ( 937)
Total investments and other assets 10, 318 9,855 91, 974
Total non-current assets 122, 749 77,072 1, 094, 122
T ot a l a s s e t s ¥ 274, 199 ¥ 240,720 $ 2, 444, 061
The accompanying notes are an integral part of the consolidated inancial statements.
Consolidated Balance Sheet
LINTEC Corporation and its consolidated subsidiaries March 31, 2017 and 2016
Millions of yen
Thousands of U.S. dollars (Note 1)
LIABILITIES AND NET ASSETS 2017 2016 2017
Current liabilities:
Trade notes and accounts payable (Note 14) ¥ 45,057 ¥ 39,683 $ 401,622
Short-term loans payable (Notes 14, 26) 641 1,695 5,720
Current portion of long-term loans payable (Notes 14, 16, 26) 3,051 — 27,202
Accrued income taxes (Notes 14, 19) 3,098 2,272 27,621
Provision for directors’ bonuses 90 93 804
Other (Notes 14, 16, 26) 12,460 12,644 111,065
Total current liabilities 64,401 56,389 574,035
Non-current liabilities:
Long-term loans payable (Notes 14, 16, 26) 17,795 — 158,616
Provision for environmental measures 135 137 1,204
Net defined benefit liability (Notes 7, 8, 17) 12,362 11,476 110,189
Other (Note 26) 814 614 7,261
Total non-current liabilities 31,107 12,228 277,272
Total liabilities 95,508 68,618 851,308
Commitments and contingent liabilities (Note 2)
Net assets:
Shareholders’ equity (Note 25): Common stock:
Authorized: 300,000,000 shares in 2017 and 2016
Issued: 76,564,240 shares in 2017 and 2016 23,201 23,201 206,803
Capital surplus 26,829 26,829 239,141
Retained earnings 131,247 123,713 1,169,870
Less: treasury stock, at cost:
4,412,515 shares in 2017 and 4,411,475 shares in 2016 (7,714) (7,712) (68,762)
Total shareholders’ equity 173,563 166,032 1,547,052
Accumulated other comprehensive income
Net unrealized holding gain on securities 775 701 6,909
Foreign currency translation adjustments 6,938 7,812 61,844
Remeasurements of defined benefit plans (Notes 7, 8, 17) (3,392) (3,509) (30,240)
Total accumulated other comprehensive income 4,320 5,005 38,514
Share subscription rights (Note 18) 186 169 1,665
Non-controlling interests 619 895 5,520
Total net assets 178,690 172,101 1,592,752
Total liabilities and net assets ¥274,199 ¥240,720 $2,444,061
Consolidated Statement of Income
LINTEC Corporation and its consolidated subsidiaries Years ended March 31, 2017 and 2016
Consolidated Statement of Comprehensive Income
LINTEC Corporation and its consolidated subsidiaries Years ended March 31, 2017 and 2016
Millions of yen
Thousands of U.S. dollars (Note 1)
2017 2016 2017
Net sales ¥205,975 ¥210,501 $1,835,953
Cost of sales 153,115 156,877 1,364,790
Gross profit 52,859 53,624 471,162
Selling, general and administrative expenses (Notes 4, 5) 36,264 35,932 323,243
Operating income 16,595 17,692 147,919
Non-operating income:
Interest income 218 308 1,951
Dividend income 91 59 817
Rent income 43 58 391
Gain on sales of non-current assets 20 7 179
Insurance income 226 42 2,019
Other income 274 276 2,445
Total non-operating income 875 752 7,805
Non-operating expenses:
Interest expenses 73 18 654
Loss on retirement of non-current assets 785 357 7,003
Compensation expenses 107 129 957
Foreign exchange losses 473 124 4,221
Other expenses 345 189 3,083
Total non-operating expenses 1,786 820 15,921
Ordinary income 15,684 17,623 139,802
Extraordinary gain:
Gain on sales of investment securities (Note 15) 190 — 1,696
Gain on sales of non-current assets (Note 6) 121 11 1,086
Gain on liquidation of subsidiaries 17 — 153
Total extraordinary gain 329 11 2,937
Extraordinary loss:
Loss on liquidation of subsidiaries 568 — 5,068
Impairment loss (Note 10) 34 — 304
Loss on sales of investment securities (Note 15) 13 — 116
Special retirement expenses (Note 7) — 438 —
Loss on abolishment of retirement benefit plan (Note 8) — 265 —
Loss on temporary suspension of production (Note 9) — 131 —
Total extraordinary losses 615 835 5,488
Profit before income taxes 15,398 16,799 137,251
Income taxes (Note 19):
Current 5,383 5,339 47,985
Deferred (1,191) 689 (10,618)
Total income taxes 4,192 6,029 37,367
Profit 11,206 10,769 99,884
Profit (loss) attributable to non-controlling interests (244) (129) (2,175)
Profit attributable to owners of parent (Note 25) ¥ 11,450 ¥ 10,899 $ 102,060
Millions of yen
Thousands of U.S. dollars (Note 1)
2017 2016 2017
Profit ¥11,206 ¥10,769 $99,884
Other comprehensive income (Note 11)
Net unrealized holding gain on securities 73 (130) 656
Foreign currency translation adjustments (907) (3,443) (8,091)
Remeasurements of defined benefit plans (Notes 7, 8, 17) 118 (2,975) 1,052
Total other comprehensive income (716) (6,549) (6,382)
Comprehensive income ¥10,489 ¥ 4,220 $93,501
(Comprehensive income attributable to:)
Owners of parent 10,765 4,318 95,959
Non-controlling interests (275) (97) (2,458)
The accompanying notes are an integral part of the consolidated inancial statements.
Thousands Millions of yen Shareholders’ equity Accumulated other comprehensive income
Number of shares of common stock
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Net unrealized holding gain on securities
Foreign currency translation adjustments
Remeasure- ments of defined benefit plans
Total accumulated other com- prehensive income
Share subscription rights
Non- controlling interests
Total net assets B alance as at April 1, 2015 76,564 ¥23,201 ¥26,830 ¥116,638 ¥(7,741) ¥158,928 ¥832 ¥11,256 ¥(503) ¥11,586 ¥166 ¥992 ¥171,674 Changes during the year:
Cash dividends (3,823) (3,823) (3,823)
Profit attributable to owners
of parent 10,899 10,899 10,899
Purchase of treasury stock (2) (2) (2)
Disposal of treasury stock (0) 31 30 30
Change of scope of consolidation — —
Net changes in items other
than shareholders’ equity (130) (3,443) (3,006) (6,580) 2 (97) (6,676)
Total changes during the year — — (0) 7,075 29 7,103 (130) (3,443) (3,006) (6,580) 2 (97) 427
Balance as at March 31, 2016 76,564 ¥23,201 ¥26,829 ¥123,713 ¥(7,712) ¥166,032 ¥701 ¥7,812 ¥(3,509) ¥5,005 ¥169 ¥895 ¥172,101 Changes during the year:
Cash dividends (4,329) (4,329) (4,329)
Profit attributable to owners
of parent 11,450 11,450 11,450
Purchase of treasury stock (2) (2) (2)
Disposal of treasury stock 0 0 0 0
Change of scope of consolidation 413 413 413
Net changes in items other
than shareholders’ equity 73 (874) 116 (684) 17 (275) (942)
Total changes during the year — — 0 7,533 (2) 7,531 73 (874) 116 (684) 17 (275) 6,589
Balance as at March 31, 2017 76,564 ¥23,201 ¥26,829 ¥131,247 ¥(7,714) ¥173,563 ¥775 ¥6,938 ¥(3,392) ¥4,320 ¥186 ¥619 ¥178,690
Thousands Thousands of U.S. dollars (Note 1)
Shareholders’ equity Accumulated other comprehensive income
Number of shares of common stock
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Net unrealized holding gain on securities
Foreign currency translation adjustments
Remeasure- ments of defined benefit plans
Total accumulated other com- prehensive income
Share subscription rights
Non- controlling interests
Total net assets Balance as at April 1, 2016 76,564 $206,803 $239,141 $1,102,716 $(68,741) $1,479,919 $6,253 $69,640 $(31,279) $44,614 $1,508 $7,978 $1,534,021 Changes during the year:
Cash dividends (38,587) (38,587) (38,587)
Profit attributable to owners
of parent 102,060 102,060 102,060
Purchase of treasury stock (21) (21) (21)
Disposal of treasury stock 0 0 0 0
Change of scope of consolidation 3,681 3,681 3,681
Net changes in items other
than shareholders’ equity 656 (7,795) 1,038 (6,100) 157 (2,458) (8,401)
Total changes during the year — — 0 67,153 (21) 67,132 656 (7,795) 1,038 (6,100) 157 (2,458) 58,731
Balance as at March 31, 2017 76,564 $206,803 $239,141 $1,169,870 $(68,762) $1,547,052 $6,909 $61,844 $(30,240) $38,514 $1,665 $5,520 $1,592,752
The accompanying notes are an integral part of the consolidated inancial statements.
Consolidated Statement of Changes in Net Assets
LINTEC Corporation and its consolidated subsidiaries Years ended March 31, 2017 and 2016
Consolidated Statement of Cash Flows
LINTEC Corporation and its consolidated subsidiaries Years ended March 31, 2017 and 2016
Millions of yen
Thousands of U.S. dollars (Note 1)
2017 2016 2017
Cash flows from operating activities:
Profit before income taxes ¥ 15,398 ¥16,799 $ 137,251
Depreciation and amortization 7,466 8,800 66,553
Amortization of goodwill 315 71 2,809
Increase (decrease) in net defined benefit liability 947 788 8,445
Increase (decrease) in allowance for doubtful accounts (24) (72) (216)
Interest and dividend income (310) (367) (2,769)
Interest expenses 73 18 654
Loss (gain) on sales of property, plant and equipment (132) (9) (1,178)
Loss on retirement of property, plant and equipment 482 163 4,296
Decrease (increase) in trade notes and accounts receivable (1,565) 966 (13,953)
Decrease (increase) in inventories 812 582 7,242
Increase (decrease) in trade notes and accounts payable 3,470 (1,485) 30,930
Loss (gain) on sales of investment securities (177) (0) (1,580)
Increase (decrease) in provision for environmental measures (2) (2) (23)
Loss (gain) on liquidation of subsidiaries 551 — 4,914
Impairment loss 34 — 304
Special retirement expenses — 438 —
Loss on abolishment of retirement benefit plan — 265 —
Other, net 1,789 (792) 15,954
Subtotal 29,128 26,166 259,634
Interest and dividend income received 325 382 2,902
Interest expenses paid (16) (18) (150)
Income taxes (paid) refund (4,809) (6,534) (42,870)
Special retirement expenses paid (265) (66) (2,366)
Net cash provided by operating activities 24,361 19,928 217,149
Cash flows from investing activities:
Payments into time deposits (10,897) (9,653) (97,138)
Proceeds from withdrawal of time deposits 12,164 9,957 108,427
Purchase of property, plant and equipment (13,049) (9,810) (116,312)
Proceeds from sales of property, plant and equipment 181 26 1,613
Purchase of intangible assets (199) (455) (1,776)
Purchase of investment securities (5) (15) (51)
Proceeds from sales of investment securities 361 0 3,226
Proceeds from liquidation of subsidiaries 24 — 222
Payments of loans receivable (2) (5) (17)
Collection of loans receivable 4 2 36
Purchase of shares and membership interests of subsidiaries resulting in change in
scope of consolidation (Note 12) (36,909) — (328,994)
Other, net (50) 56 (451)
Net cash used in investing activities (48,378) (9,898) (431,216)
Cash flows from financing activities:
Increase (decrease) in short-term loans payable (1,748) — (15,589)
Proceeds from long-term loans payable 20,850 — 185,846
Repayments of long-term loans payable (9,253) — (82,484)
Cash dividends paid (4,328) (3,824) (38,582)
Purchase of treasury stock (2) (2) (21)
Repayments of lease obligations (258) (217) (2,302)
Other, net 0 0 0
Net cash provided by (used in) financing activities 5,257 (4,044) 46,866
Effect of exchange rate change on cash and cash equivalents 35 (1,712) 313
Net increase (decrease) in cash and cash equivalents (18,723) 4,273 (166,887)
Cash and cash equivalents at beginning of year 60,323 56,050 537,693
Increase in cash and cash equivalents from newly consolidated subsidiary — 0 —
Decrease in cash and cash equivalents resulting from exclusion of subsidiaries
from consolidation (315) — (2,815)
Cash and cash equivalents at end of year (Note 12) ¥ 41,284 ¥60,323 $ 367,990
The accompanying notes are an integral part of the consolidated inancial statements.
1. Summary of Significant Accounting Policies (a) Basis of presenting financial statements
LINTEC Corporation (the “Company”) maintains its accounting records and prepares its consolidated financial statements in accordance with accounting principles generally accepted in Japan, which are different in certain respects as to the application and disclosure requirements of International Financial Reporting Standards. The accompanying consoli- dated financial statements have been compiled from the consolidated financial statements prepared by the Company as required by the Financial Instruments and Exchange Act of Japan.
In addition, the notes to the consolidated financial statements include information which is not required under accounting principles generally accepted in Japan but is presented herein as additional information. For the convenience of the readers, the accompanying consolidated financial statements have been presented in U.S. dollars by translating all Japanese yen amounts at the rate of ¥112.19=U.S.$1, the prevailing exchange rate as of March 31, 2017. This translation should not be construed as a representation that the Japanese yen amounts could be converted into U.S. dollars at this or any other rate of exchange. As permitted under the Financial Instruments and Exchange Act of Japan, amounts of less than one million yen have been omitted. As a result, the totals shown in the accompanying consolidated financial state- ments do not necessarily agree with the sum of the individual amounts. Certain reclassifications of previously reported amounts have been made to conform to the consolidated financial statements for the year ended March 31, 2017 presentation.
(b) Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its 41 significant subsidiaries as of March 31, 2017, but exclude subsidiaries whose total assets, net sales, profit and retained earnings are not material in relation to the comparable amounts in these statements. All significant intercompany accounts and transactions have been eliminated in consolidation.
Goodwill is amortized over periods of the useful lives (mainly 5 years) on a straight-line basis.
Investments in subsidiaries and affiliates, which are not consolidated or accounted for by the equity method, are carried at cost. Where there has been a permanent decline in the value of such investments, the Company has written down the investments.
Certain subsidiaries are consolidated on the basis of fiscal period ending December 31, which differ from that of the Company. The neces- sary adjustments are made to the financial statements of such subsidiaries to reflect any significant transactions from their respective fiscal year ends to March 31.
(c) Foreign currency translation
Receivables, payables and securities denominated in foreign currencies are converted into Japanese yen at the exchange rates at fiscal year end. Transactions in foreign currencies are recorded based on the prevailing exchange rates on the transaction dates and the resulting translation gains or losses are included in statement of income.
In respect of the financial statement items of overseas subsidiaries, all assets and liabilities accounts are translated into Japanese yen by applying the exchange rates in effect at the fiscal year end. All income and expense accounts are translated into Japanese yen by applying the average exchange rates during the fiscal year.
Translation differences after allocating to non-controlling interest for portions attributable to non-controlling interest are reported as foreign currency translation adjustments in a separate component of net assets in the accompanying consolidated balance sheet.
(d) Investment securities
Securities with market value are stated at fair value, and changes in fair value are recorded as a separate component of net assets at an amount,
net of tax, and the moving average method is used to calculate the original cost. Securities without market value are stated at cost deter- mined by the moving average method.
(e) Derivatives
Derivatives are stated at fair value. (f) Inventories
Inventories mainly apply the cost method based on the weighted-average method, which determines the amount of the inventories shown on the consolidated balance sheet by writing them down based on the decrease in their profitability.
Machinery applies the cost method based on the specific identification method, which determines the amount of the inventories shown on the consolidated balance sheet by writing them down based on the decrease in their profitability.
(g) Property, plant and equipment (Excluding leased assets)
Depreciation is computed by the straight-line method over the useful lives of the respective assets.
The significant useful lives are summarized as follows: Buildings and structures 3–50 years Machinery, equipment and vehicles 3–17 years (h) Intangible assets (Excluding leased assets)
Capitalized costs of software for internal use are amortized using the straight-line method over useful lives (5 years).
(i) Leased assets
Leased assets arising from finance lease transactions which transfer ownership to the lessees are depreciated as the same as the owned property, plant and equipment.
Leased assets arising from finance lease transactions which do not transfer ownership to the lessees are depreciated to a residual value of zero by the straight-line method using the contract term as the useful life. (j) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at the amount of estimated uncollectible accounts, based on individual collectability with respect to identified doubtful receivables and past experience of doubtful receivables. (k) Provision for directors’ bonuses
Bonus to directors is accrued at the year end and to be paid in the following year when such bonuses are attributable.
(l) Accounting method for retirement benefits
(1) Method of attributing expected retirement benefits to periods In calculating retirement benefit obligations, the benefit formula basis is used to attribute expected retirement benefits to periods through the end of the fiscal year.
(2) Method of amortizing actuarial gain and loss and prior service cost Actuarial gain and loss are amortized in the year following the year in which the gain or loss is recognized by the straight-line method principally over 15 years. Prior service cost is being amortized by the straight-line method principally over 15 years.
(m) Provision for environmental measures
The provision for environmental measures is estimated and recorded to provide for future potential costs, such as costs related to removal and disposal of toxic substances based on related legal requirements. (n) Accounting for consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.
(o) Cash and cash equivalents
Cash and cash equivalents are composed of cash and time deposits having maturities within three months from acquisition, all of which are low-risk, short-term financial instruments readily convertible into cash. (p) Research and development costs
Research and development costs are charged to income when incurred. (q) Income taxes
Deferred tax assets and liabilities are determined based on differences
Notes to Consolidated Financial Statements
LINTEC Corporation and its consolidated subsidiaries March 31, 2017
2. Commitments and Contingent Liabilities
The Company and its consolidated subsidiaries had unused lines of credit for short-term financing aggregating ¥23,194 million (U.S. $206,743 thousand) and ¥22,208 million at March 31, 2017 and 2016, respectively.
between financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse.
(r) Shareholders’ equity
The Corporation Law of Japan provides that an amount equal to 10% of the amount to be distributed as distributions of capital surplus (other than the capital reserve) and retained earnings (other than the legal reserve) be transferred to the capital reserve and the legal reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25% of the common stock account. Such distributions can be made at any time by resolution of the shareholders or by the Board of Directors if certain conditions are met, but neither the capital reserve nor the legal reserve is available for distributions.
(s) Hedge accounting (1) Hedge accounting method
The exceptional accounting treatment (the “Tokurei-shori”) is applied with respect to interest rate swaps that meet the requirements to hedge the cash flow volatility of certain foreign currency-denominated loans. The Tokurei-shori and the designated hedge accounting (the
“Furiate-shori”) are applied with respect to interest rate and currency swaps that meet the requirements to hedge the cash flow volatility caused by foreign exchange rate fluctuations on certain foreign currency-denominated loans.
(2) Hedging instruments and hedged items 1Hedging instruments ...Interest rate swaps
Hedging items ...Foreign currency-denominated loans 2Hedging instruments ...Interest rate and currency swaps Hedging items ...Foreign currency-denominated loans (3) Hedging policy
In accordance with the internal regulation, risk of fluctuations in interest rates and foreign exchange is hedged.
(4) Method of evaluating the effectiveness of hedges
The evaluation of effectiveness is omitted for interest rate swaps accounted for under the Tokurei-shori and for interest rate and currency swaps accounted for under the Tokurei-shori and Furiate-shori. (t) Changes in accounting principles
(Changes in accounting principles that are difficult to distinguish from changes in accounting estimates)
(Change in the depreciation method of property, plant and equipment) The Company and its domestic consolidated subsidiaries had convention- ally used the declining-balance method (straight line method for the buildings (excluding attached facilities) acquired on or after April 1, 1998) as the depreciation method of property, plant and equipment (excluding leased assets), which has been changed to the straight line method from this consolidated fiscal year.
Based on its medium-term business plan “LIP-2016”, which was announced in 2014, the LINTEC Group (the “Group”) has been further promoting its global development and actively investing its management resources in growth areas such as innovative new products that will support the next generation.
As part of these efforts, the Group has added a new research building and testing and research facilities, and when these new facilities
commenced full operation in 2016, the Group re-examined its depreciation method, which appropriately reflected the condition of the use of the Group’s property, plant and equipment. As a result, the Group determined that comprehensively considering the following changes and altering the depreciation method to the straight-line method would enable more appropriate cost distribution throughout the period of use.
(1) The latest, large testing and research facilities were installed during the addition of the research building in order to improve the Group’s development simulation capability, which resulted in an increase in the percentage of research and development facilities in its property, plant and equipment. Such R&D facilities will include large test coaters associated with factory mass production facilities, advanced analysis equipment, and other devices, which are expected to substantially accelerate the process from the initial stage of research to mass production. The Group plans to engage in development for the estab- lishment of the mass production process, and these R&D facilities will be operated steadily every fiscal year.
(2) High-function products have been increasing as a proportion of the Company’s products in recent years, and improvements and additions to the coaters, which are major facilities in the Company’s property, plant and equipment, have been made in line with this increase. These manufacturing facilities as a whole wear at an average rate every fiscal year due to improvements in manufacturing technology thanks to R&D, etc. and the modification of the production system. In addition, operations are expected to be steady given the Company’s active improvement of facilities to meet rising demand in growth areas. As a result, the depreciation of this consolidated fiscal year decreased by ¥2,685 million (U.S. $23,933 thousand) from those using the conven- tional method, and operating income, ordinary income, and profit before income taxes have each increased by ¥2,399 million (U.S. $21,390 thousand). (u) Changes in presentation
(Consolidated Balance Sheet)
“Goodwill,” which was included in “Intangible assets” in the previous consolidated fiscal year, is separately presented in this consolidated fiscal year due to its increased materiality of the amount. To reflect this change in presentation, ¥2,357 million presented as “Intangible assets” in the consolidated balance sheet of the previous fiscal year has been reclassified into ¥22 million of “Goodwill” and ¥2,334 million of “Other.”
(Consolidated Statement of Income)
“Insurance income,” which was included in “Other income” under
“Non-operating income” in the previous consolidated fiscal year, is separately presented in this consolidated fiscal year due to its increased quantitative materiality. To reflect this change in presentation, ¥318 million presented as “Other income” under “Non-operating income” in the consol- idated statement of income of the previous fiscal year has been reclassified into ¥42 million of “Insurance income” and ¥276 million of “Other income.” (v) Additional information
The Accounting Standards Board of Japan (ASBJ) Guidance No. 26 issued the Implementation Guidance on Recoverability of Deferred Tax Assets on March 28, 2016, and the guidance has been applied from this consolidated fiscal year.
3. Inventories
Merchandise and finished goods, work in process, and raw materials and supplies as of March 31, 2017 and 2016 were as follows:
Millions of yen
Thousands of U.S. dollars
2017 2016 2017
Merchandise and finished goods ¥13,031 ¥10,956 $116,156
Work in process 11,951 11,513 106,527
Raw materials and supplies 9,601 8,596 85,583
Total ¥34,584 ¥31,066 $308,267
4. Selling, General and Administrative Expenses
Major items included in selling, general and administrative expenses for the years ended March 31, 2017 and 2016 were as follows:
Millions of yen
Thousands of U.S. dollars
2017 2016 2017
Transportation and warehousing expenses ¥ 5,125 ¥ 5,274 $ 45,682
Provision for allowance for doubtful accounts (12) 48 (109)
Salaries and allowances 7,743 8,011 69,021
Retirement benefit expenses 423 284 3,774
Provision for directors’ bonuses 95 93 853
Depreciation and amortization 1,092 1,068 9,740
Research and development expenses 7,639 7,644 68,094
Other 14,156 13,507 126,185
Total ¥36,264 ¥35,932 $323,243
5. Research and Development Expenses
Research and development expenses, all of which were included in selling, general and administrative expenses, for the years ended March 31, 2017 and 2016 were ¥7,639 million (U.S.$68,094 thousand) and ¥7,644 million, respectively.
6. Gain on Sales of Noncurrent Assets
Gain on sales of noncurrent assets was related to sales of land for the year ended March 31, 2017 and sales of buildings and structures for the year ended March 31, 2016.
7. Special Retirement Expenses
The Company has recognized special retirement expenses for downsizing of consolidated subsidiaries in the U.S. for the year ended March 31, 2016.
8. Loss on Abolishment of Retirement Benefit Plan
The Company has recognized settlement loss for partial settlement of a retirement benefit plan of consolidated subsidiaries in the U.S. for the year ended March 31, 2016.
9. Loss on Temporary Suspension of Production
The Company has recognized extraordinary loss for temporary suspension of production at a manufacturing plant operated by a subsidiary in Indonesia due to a labor strike for the year ended March 31, 2016.
10. Impairment Loss on Property, Plant and Equipment
The Company has recognized impairment loss on the following classes of assets for the year ended March 31, 2017:
Major use Location Category Millions of yen
Thousands of U.S. dollars Pressure-sensitive adhesive related
products manufacturing equipment Massachusetts State, U.S.A. Machinery, equipment and vehicles ¥34 $304 (1) Circumstances leading to the recognition of impairment loss
The impairment loss above has been recognized because the asset has decreased in profitability. (2) Method of calculating recoverable amounts
The recoverable amounts of the assets above are the net realizable value and based on a third-party appraisal value.
11. Comprehensive Income
Reclassification adjustment and tax effect of other comprehensive income for the years ended March 31, 2017 and 2016 were as follows:
Millions of yen
Thousands of U.S. dollars
2017 2016 2017
Net unrealized holding gain on securities:
Amount incurred during the fiscal year ¥ 340 ¥ (202) $ 3,037
Reclassification adjustment (177) (0) (1,580)
Prior to deducting tax effect 163 (202) 1,456
Tax effect (89) 71 (800)
Net unrealized holding gain on securities 73 (130) 656
Foreign currency translation adjustments:
Amount incurred during the fiscal year (453) (3,443) (4,042)
Reclassification adjustment (454) ― (4,048)
Prior to deducting tax effect (907) (3,443) (8,091)
Tax effect ― ― —
Foreign currency translation adjustments (907) (3,443) (8,091)
Remeasurements of defined benefit plans:
Amount incurred during the fiscal year (229) (4,656) (2,049)
Reclassification adjustment 397 381 3,546
Prior to deducting tax effect 167 (4,274) 1,497
Tax effect (49) 1,299 (445)
Remeasurements of defined benefit plans 118 (2,975) 1,052
Total other comprehensive income ¥(716) ¥(6,549) $(6,382)
12. Cash and Cash Equivalents
1. Reconciliation between cash and cash equivalents in the consolidated statement of cash flows and cash and deposits in the consolidated balance sheet as of March 31, 2017 and 2016 were as follows:
Millions of yen
Thousands of U.S. dollars
2017 2016 2017
Cash and deposits ¥45,060 ¥65,733 $401,641
Time deposits with maturity of more than 3 months (3,775) (5,409) (33,650)
Cash and cash equivalents ¥41,284 ¥60,323 $367,990
2. Assets and liabilities of newly acquired consolidated subsidiaries through acquisition of shares or membership interests for the year ended March 31, 2017 was as follows:
(1) Assets and liabilities of VDI, LLC (a newly acquired consolidated subsidiary through acquisition of membership interests) at the inception of its consolidation, the acquisition cost of its membership interest and the related expenditures (net) for the acquisition were as follows:
Millions of yen
Thousands of U.S. dollars 2017
Current assets ¥ 473 $ 4,223
Non-current assets 1,713 15,272
Goodwill 1,839 16,398
Current liabilities (222) (1,987)
Non-current liabilities (1,102) (9,830)
Acquisition cost of membership interests ¥ 2,701 $24,076
Cash and cash equivalents (95) (848)
Net expenditures for acquisition ¥ 2,605 $23,227
(2) Assets and liabilities of MACtac Americas, LLC (another newly acquired consolidated subsidiary through acquisition of membership interests) at the inception of its consolidation, the acquisition cost of its membership interest and the related expenditures (net) for the acquisition were as follows:
Millions of yen
Thousands of U.S. dollars 2017
Current assets ¥ 9,066 $ 80,817
Non-current assets 6,820 60,793
Goodwill 30,889 275,330
Current liabilities (4,794) (42,738)
Non-current liabilities (7,564) (67,427)
Acquisition cost of membership interests ¥34,417 $306,776
Cash and cash equivalents (775) (6,910)
Accrued amount of the acquisition cost of membership interests (301) (2,684)
Net expenditures for acquisition ¥33,340 $297,182
(3) Assets and liabilities of Lintec Graphic Films Limited (the other newly acquired consolidated subsidiary through acquisition of shares) at the inception of its consolidation, the acquisition cost of its shares and the related expenditures (net) for the acquisition were as follows:
Millions of yen
Thousands of U.S. dollars 2017
Current assets ¥ 378 $ 3,375
Non-current assets 144 1,286
Goodwill 733 6,539
Current liabilities (171) (1,531)
Non-current liabilities (59) (534)
Acquisition cost of shares ¥1,024 $ 9,136
Cash and cash equivalents (61) (551)
Net expenditures for acquisition ¥ 963 $ 8,584
There is no disclosure applicable for the year ended March 31, 2016.
3. Assets and liabilities related to finance lease transactions newly recognized for the years ended March 31, 2017 and 2016 were ¥183 million (U.S.
$1,639 thousand) and ¥105 million, respectively.
13. Leases
(Lessee’s accounting)
For finance lease transactions that transfer ownership, leased assets recognized as property, plant and equipment are mainly production facilities for the years ended March 31, 2017 and 2016, and are depreciated in the same way as the owned property, plant and equipment.
For finance lease transactions that do not transfer ownership, leased assets recognized as property, plant and equipment are mainly production facili- ties and vehicles, and those recognized as intangible assets are mainly software for the years ended March 31, 2017 and 2016. These leased assets are depreciated to a residual value of zero by the straight-line method using the contract term as the useful life.
The minimum lease payments under noncancellable operating leases as of March 31, 2017 and 2016 were as follows:
Millions of yen
Thousands of U.S. dollars
2017 2016 2017
Due within 1 year ¥ 419 ¥312 $3,741
Due after 1 year 595 343 5,311
Total ¥1,015 ¥655 $9,052
14. Financial Instruments 1. Status of financial instruments (1) Policy regarding financial instruments
The LINTEC Group (the “Group”) limits the scope of its cash and fund management activities to short-term deposits and has a policy of relying principally on bank loans.
The Group makes use of derivatives only to reduce risk of foreign currency exchange fluctuations and has a policy of not engaging in derivative transactions for speculative purposes.
(2) Details of financial instruments and associated risk and risk management system
In the course of its business activities, the Group is exposed to credit risk arising from trade notes and accounts receivable that are outstanding from its customers. Regarding the risk pursuant to the internal regulations for managing its credit exposure and trade receivables, due dates and balances are managed appropriately for each customer, to mitigate risks of uncollect- ible accounts.
Investment securities are stocks being exposed to market price risk, and these are mainly the stocks of companies with which the Group has business relationships and they are periodically confirmed the market value.
All of the trade payables–trade notes and accounts payable–are due within 1 year.
The Group has commitment line contracts with financial institutions and the short-term loans payable are raised mainly for business activities and capital investments.
The long-term loans payable are raised for corporate acquisitions. Interest rate swaps and interest rate and currency swaps are used to manage exposure to market risks from changes in interest rates and foreign currency exchange rate of the long-term loans payable.
The Group is exposed to liquidity risk from its business-related obligations and loans but the Company and its consolidated subsidiaries prepare and implement financing plans to manage the liquidity risk.
The Group conducts and manages derivative transactions based on internal rules and regulations. Director of administration division is in charge of managing derivative transactions and related reports are submitted to top management for each case.
In addition, the contract amounts of derivative transactions described below in Note 16, “Derivatives,” do not represent the market risk associated with derivative transactions.
2. Estimated fair value and other matters related to financial instruments
Carrying value on the consolidated balance sheet as of March 31, 2017 and 2016 along with their fair value and the variance were shown in the following table.
Millions of yen
Thousands of U.S. dollars 2017 Carrying value
Estimated
fair value Variance Carrying value
Estimated
fair value Variance
(1) Cash and deposits ¥ 45,060 ¥ 45,060 ¥— $ 401,641 $ 401,641 $ —
(2) Trade notes and accounts receivable 66,801 66,801 — 595,431 595,431 —
(3) Investment securities
Other securities 2,519 2,519 — 22,455 22,455 —
(4) Trade notes and accounts payable (45,057) (45,057) — (401,622) (401,622) —
(5) Short-term loans payable (641) (641) — (5,720) (5,720) —
(6) Accrued income taxes (3,098) (3,098) — (27,621) (27,621) —
(7) Long-term loans payable (20,847) (20,888) 41 (185,819) (186,190) 371
(8) Derivatives (37) (37) — (331) (331) —
Notes: i. Figures shown in parentheses are liability items.
ii. The current portion of long-term loans payable is included in long-term loans payable. iii. The value of assets and liabilities arising from derivatives is shown by net value.
Millions of yen 2016 Carrying value
Estimated
fair value Variance
(1) Cash and deposits ¥ 65,733 ¥ 65,733 ¥ —
(2) Trade notes and accounts receivable 62,331 62,331 —
(3) Investment securities
Other securities 2,469 2,469 —
(4) Trade notes and accounts payable (39,683) (39,683) —
(5) Short-term loans payable (1,695) (1,695) —
(6) Accrued income taxes (2,272) (2,272) —
(7) Long-term loans payable — — —
(8) Derivatives 4 4 —
Notes: i. Figures shown in parentheses are liability items.
ii. The value of assets and liabilities arising from derivatives is shown by net value.
