ABC-MART, INC.
Annual Report 2015
For the year ended February 28, 2015

Contents
1

Consolidated Balance Sheets3

Consolidated Statements of Income

5

Consolidated Statements of Comprehensive Income

6

Consolidated Statements of Changes in Net Assets

7

Consolidated Statements of Cash Flows9

Notes to Consolidated Financial Statements
Independent Auditors' ReportConsolidated Balance Sheets
ABC-MART, INC. and consolidated subsidiaries
As of February 28, 2015 and 2014
Millions of yen
ASSETS

2015

2014

Current Assets:
Cash and deposits (Notes 3, 5 and 12)¥

96,493¥78,884

Notes and accounts receivable – trade (Note 5)

7,873

6,463

Less － allowance for doubtful accounts (Note 5)

(41)

(30)

7,832

6,432

Inventories (Note 4)

49,36739,455

Deferred tax assets (Note 9)

2,049

1,414

Other (Note 18)

4,555

3,355

160,298

129,542

25,39522,758Net trade receivables

Total current assets

Noncurrent assets:
Property, plant and equipment (Notes 15 and 16):
Buildings and structures (Notes 12 and 18)
Tools, furniture and fixtures

9,006

8,012

Land (Notes 12 and 18)

19,62917,696

Constructions in progress

327

90

Other

438

593

54,79749,152(18,681)(16,367)

36,11532,784

Trademark

2,948

2,682

Goodwill

7,511

7,195

Other (Note 15)

2,083

1,770

12,543

11,649Investment in securities (Notes 5 and 6)

60

125

Investment in non-consolidated subsidiaries (Note 5)

102

94

Long-term loans receivable (Note 5)

2,458

2,575

Lease and guarantee deposits (Notes 5, 11 and 18)

20,892

18,960

Other (Note 9)

1,208

1,150

(18)

(1)

Total investments and other assets

24,70422,904

Total noncurrent assets

73,363

67,338

Total
Less accumulated depreciation
Net property, plant and equipment

Intangible assets:

Total intangible assets

Investments and other assets:

Less-allowance for doubtful accounts

Total assets¥

See accompanying notes to consolidated financial statements.

－1－

233,661¥

196,881

Consolidated Balance Sheets
ABC-MART, INC. and consolidated subsidiaries
As of February 28, 2015 and 2014
Millions of yen
LIABILITIES

2015

2014

Current Liabilities:
Notes and accounts payable:
Trade (Notes 5 and 12)¥

Facilities (Notes 5 and 12)

14,176

¥

8,551

722

778

Short-term loans payable (Notes 5 and 8)

6,355

3,278

Current portion of long-term loans payable (Notes 5, 8 and 12)

1,000

1,002

Income taxes payable (Note 5)

9,815

7,113

Provision for bonuses

702

654

Provision

291

234

Asset retirement obligations (Note 11)

14

26

7,992

5,722

41,07027,362Other (Notes 8 and 18)
Total current liabilities

Noncurrent liabilities:
Convertible bonds (Notes 5 and 8)

33,00033,000Long-term loans payable (Notes 5, 8 and 12)

500

1,500

Provision

113

658

Net defined benefit liability (Note 10)

870－

Asset retirement obligations (Note 11)

291

243

2,280

2,197

Total noncurrent liabilities

37,056

37,599Total liabilities

78,12664,961Other (Notes 8, 9 and 12)

Commitments and contingent liabilities (Note 12)
NET ASSETS (Note 13)
Shareholders’ equity:
Common stock, authorized 334,500,000 shares, issued 75,294,429 shares
3,482

3,482

Capital surplus

in 2015 and 2014

7,488

7,488

Retained earnings

131,413112,310(0)(0)

142,384

123,281

Treasury stock, at cost, 208 and 164 shares in 2015 and 2014, respectively
Total shareholders’ equity

Accumulated other comprehensive income (Note 14):
Net unrealized gains on available-for-sale securities
Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests in consolidated subsidiaries
Total net assets
Total liabilities and net assets¥

See accompanying notes to consolidated financial statements.

－2－

14

23

12,6838,241

12,697

8,265

453

372

155,535

131,919

233,661¥

196,881

Consolidated Statements of Income
ABC-MART, INC. and consolidated subsidiaries
For the years ended February 28, 2015 and 2014
Millions of yen
2015
Net sales¥

Cost of sales
Gross profit

2014

213,584¥

188,045

98,52384,317

115,060

103,727

Selling, general and administrative expenses:
Packing and transportation expenses

2,435

2,162

Advertising expenses

6,311

7,263

Warehousing expenses

2,226

2,044

Directors' compensations, salaries and allowances

20,23518,737

Bonuses

1,561

1,139

696

647

Provision for bonuses
Retirement benefit expenses (Note 10)

523

104

Legal and employee benefits expenses

2,775

2,418

Rents (Note 18)

19,885

17,738Depreciation and amortization

4,019

3,885

Utilities expenses

2,189

2,050

Commission fee

4,144

3,461

Taxes and dues

873

873

Amortization of goodwill

1,161

1,023

Other

6,369

6,051

75,40869,601

Total
Operating income¥(Continued)－3－39,651¥

34,126

Millions of yen
2015

2014

Other income (expenses):
Interest income

¥

169

¥

79

Interest expenses

(54)

(53)

Foreign exchange gains－

60

Foreign exchange losses

(67)

－

Gain on cancellation of derivatives－

1

Loss on cancellation of derivatives－(1,051)

Rent income

743

664

Rent expenses

(230)

(347)

56

62

Advertising income
Gain on sales of noncurrent assets (Note 15)

40Loss on retirement of noncurrent assets (Note 15)

(171)

(175)

Impairment loss (Note 16)

(253)

(263)

Loss on disposal of merchandise

－

(95)

Other, net

137

222

Total

333

(894)

39,98533,231

Current

16,10013,598Deferred

(536)

(319)

15,564

13,27824,421

19,952

47(36)

Income before income taxes and minority interests

Income taxes (Note 9):

Total
Income before minority interests
Minority interests
Net income¥

See accompanying notes to consolidated financial statements.

－4－24,373¥

19,989

Consolidated Statements of Comprehensive Income
ABC-MART, INC. and consolidated subsidiaries
For the years ended February 28, 2015 and 2014
Millions of yen
2015
Income before minority interests

¥

2014

24,421¥

19,952Other comprehensive income (Note 14):(8)9Foreign currency translation adjustments

Net unrealized gains (losses) on available-for-sale securities

4,474

6,113

Total other comprehensive income

4,466

6,122

Comprehensive Income

28,887¥

26,07528,806¥

26,062Comprehensive income attributable to:Shareholders of ABC-MART, INC.

¥

Minority interests

80

See accompanying notes to consolidated financial statements.

－5－

12

Consolidated Statements of Changes in Net Assets
ABC-MART, INC. and consolidated subsidiaries
For the years ended February 28, 2015 and 2014
Millions of yen
Accumulated other comprehensive
Shareholders’ equity

Balance at February 28, 2013¥

incomeNet unrealized

Foreign

Minority

gains (losses) on

currencyinterests in

CommonCapitalRetained

Treasury

available-for-saletranslation

consolidated

stock

surplusearnings

stock, at cost

securities

adjustments

subsidiaries

3,482

¥

7,488

¥

96,311

Net income－－

19,989Dividends from surplus－－

Net change during the year

－

－

3,482

Net income

¥

(0)

¥

13

－

(3,990)
6,156

8,241

372

131,919－－－

24,373－－－－(5,270)

(0)

－

－

－

(0)

(8)

4,441

80

4,513

9

7,488

112,310

(0)

23

－

－

24,373－

Dividends from surplus－－(5,270)Purchase of treasury stock

－

－

－

Net change during the year

－

－

－

(0)

7,488

¥

131,413¥

See accompanying notes to consolidated financial statements.

－6－

109,764

82

－

－

¥

¥

－

－

－

3,482

290

6,064

(3,990)¥¥19,989－Balance at February 28, 2015

2,177

－

－

Balance at February 28, 2014¥

Total net assets

(0)

¥

14

－

¥

12,683¥453¥

155,535

Consolidated Statements of Cash Flows
ABC-MART, INC. and consolidated subsidiaries
For the years ended February 28, 2015 and 2014
Millions of yen
2015

2014

Net cash provided by (used in) operating activities:
Net income before income taxes and minority interests¥

39,985¥33,231

Depreciation and amortization

4,019

3,885

Increase in provision for bonuses

46

8

Increase in allowance for doubtful accounts

24

3

(170)

(80)

Interest expenses

54

53

Foreign exchange (gains) losses

21

(85)

Loss on cancellation of derivatives

－

1,049

Loss on sales and retirement of noncurrent assets

166

174

Interests and dividends income

Impairment loss

253

263

Increase in notes and accounts receivable － trade(1,816)(853)

Increase in inventories(7,980)(4,455)

Increase in notes and accounts payable － trade

4,943

659

Other, net

3,317

3,002

42,86636,857

147

56

SubtotalInterest and dividends received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities¥(Continued)

－7－

(55)

(52)

(13,267)(13,863)

29,691¥

22,997

Millions of yen
2015

2014

Net cash provided by (used in) investing activities:
Payment for time deposits¥

Proceeds from withdrawal of time deposits

(506)

¥

－

－

33

(6,099)(3,862)

5

4

Payment for purchase of intangible assets

(366)

(466)

Payment for removal of stores

(89)

(92)

Increase in loans receivable(65)(1,770)

Proceeds from collection of loans receivable

101

85

(8)

－

(1,314)－

Payment for lease and guarantee deposits(2,526)(1,993)

Proceeds from collection of lease and guarantee deposits

1,316

586

(16)

(98)

(9,568)(7,573)

Net increase (decrease) in short-term loans payable

2,617

(972)

Repayment of long-term loans payable(1,003)(1,002)

Cash dividends paid

(5,267)(3,989)Proceeds from share issuance to minority shareholders－

69

Other, net

(22)

(21)

(3,675)(5,916)604

475

Net increase in cash and cash equivalents

17,051

9,983

Cash and cash equivalents at beginning of period

78,755

68,772

Payment for purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Payment for purchase of investment in a subsidiary
Payment for purchase of investment in a subsidiary resulting in change in scope of
consolidation

Other, net
Net cash used in investing activities
Net cash provided by (used in) financing activities:

Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of period (Note 3)¥

See accompanying notes to consolidated financial statements.

－8－

95,807¥78,755

Notes to Consolidated Financial Statements
ABC-MART, INC. and consolidated subsidiaries

1. Basis of Presentation and Financial Statement Translation
The accompanying consolidated financial statements of ABC-MART, INC. and consolidated subsidiaries (“the Group”) are prepared on thebasis of accounting principles generally accepted in Japan, which are different in certain respects as to the application and disclosure
requirements of International Financial Reporting Standards (“IFRS”), and are compiled from the consolidated financial statements preparedby

ABC-MART, INC. (“the Company”) as required by the Financial Instruments and Exchange Act of Japan. Effective March 1, 2009, theCompany adopted the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial
Statements” (PITF No. 18). In accordance with PITF No. 18, the accompanying consolidated financial statements for the years ended
February 28, 2015 and 2014 have been prepared by using the accounts of foreign consolidated subsidiaries prepared in accordance with either
IFRS or accounting principles generally accepted in the United States as adjusted for certain items.
In addition, for the convenience of readers outside Japan, the accompanying consolidated financial statements, including the notes thereof,
have been reclassified and contain additional information which is not required under accounting principles generally accepted in Japan.
As permitted under the Financial Instruments and Exchange Law of Japan, amounts of less than one million yen have been omitted. As aresult, the totals shown in the accompanying Consolidated Financial Statements do not necessarily agree with the sums of the individual
amounts. Certain reclassifications have been made to prior year balances in order to conform to the current year presentation.

2. Summary of(1)

Significant Accounting Policies

Basis of Consolidation

The accompanying Consolidated Financial Statements include the accounts of the Company and 12 subsidiaries (12 subsidiaries as ofFebruary 28, 2014) with an exception of 3 non-consolidated subsidiaries due to immaterial impact on the consolidated financial statements in
net sales, total assets, aggregated amount of net income and retained earnings. The investments in the non-consolidated subsidiaries are notaccounted for by the equity-method because of the immaterial impact on the consolidated financial statements in aggregated amount of net
income and retained earnings, and therefore carried at cost (¥102 million and ¥94 million as of February 28, 2015 and 2014, respectively).
During the year ended February 28, 2015, the Company acquired a subsidiary of which the Company owns 100% of its shares. The
subsidiary is not included in scope of consolidation due to immaterial impact on the consolidated results.
The year end at ABC-MART KOREA, INC., ABC-MART TAIWAN, INC., LaCrosse Footwear, Inc. and its 6 subsidiaries is December 31.
The financial statements as of December 31 are used in preparing the consolidated financial statements for the subsidiaries. All materialtransactions during the period from January 1 to balance sheet date are adjusted for in the consolidation process.
(2)

Securities

Available-for-sale securities are classified into two categories, where (a) the fair value is available and (b) the fair value is not available.
(a)Securities whose fair value is available are valued at the quoted market price prevailing at the end of the year. Net unrealized gains orlosses on these securities are reported as a separate component of net assets at a net-of-tax amount. Cost of sales is determined using themoving-average method.

(b)

Securities whose fair value is not available are valued at cost and the cost is determined using the moving-average method.

(3)

Inventories

Inventories held for sale in the ordinary course of business are stated at cost. The book value of inventories is reduced on the basis of declines
in profitability and is determined principally by the average method for merchandise, the FIFO method for finished goods, work in process andraw materials and supplies in overseas subsidiaries, and the specific identification method for raw materials and supplies in the Company andits domestic subsidiaries.

－9－

(4)

Property, Plant and Equipment(a)

The Company and its domestic subsidiaries

Property, plant and equipment are stated at cost. Depreciation is calculated using the declining-balance method, except for the buildings(excluding building facilities) acquired on or after April 1, 1998, which are depreciated based on the straight-line method.
Useful lives used for majority of assets are as follows:(b)

Buildings and structures

7 to 50 years

Tools, furniture and fixtures

5 to 10 years

Foreign subsidiaries:

Depreciation is calculated using the straight-line method.
(5)

Intangible Assets

Intangible assets are amortized using the straight-line method. Software for internal use is amortized using the straight-line method over an
estimated useful life of five years. The useful life of goodwill is individually estimated based on a reasonable determination. Goodwill isamortized using the straight-line method over the period determined.
(6)

Leased assets

Depreciation of leased assets from finance lease transactions that are deemed to transfer ownership of the leased property is calculated using
the same method applied to noncurrent assets of which the Company has ownership. Depreciation of leased assets from finance leasetransactions that are not deemed to transfer ownership of the leased property is calculated using the straight-line method with no residual
value.
(7)

Allowances for Doubtful Accounts

Allowances for doubtful accounts are provided in amounts management considers sufficient to cover possible losses on collection. With respect
to normal trade accounts receivable, it is stated at an amount based on the actual rate of historical bad debts, and for certain doubtfulreceivables, the uncollectible amount is individually estimated.
(8)

Provision for Bonuses

As a provision for the payment of bonuses to employees, an appropriate portion of the estimated total bonus payment requirement has beenaccounted for in the year under review.
(9)

Employees retirement benefit(a)

In determining the retirement benefit obligations, the Company adopts the benefit formula basis to attribute projected benefit obligations
to the year ended February 28, 2015.

(b)

Actuarial differences are to be charged to expenses immediately when it occurs.

(10) Foreign Currency Translation
All assets and liabilities of the Company and its domestic consolidated subsidiaries denominated in foreign currencies are translated into
Japanese yen at the exchange rate in effect at the respective balance sheet dates. Translation gains or losses are included in the accompanying
Consolidated Statements of Income.
All balance sheet accounts of foreign subsidiaries are translated into Japanese yen at the exchange rate in effect at the respective balance
sheet dates except for shareholders’ equity, which is translated at the historical rates. All income and expense accounts are translated at the
average exchange rate for the period. The resulting translation adjustments are included in the accompanying Consolidated Balance Sheets
under “Foreign currency translation adjustments” and “Minority interests in consolidated subsidiaries.”－ 10 －

(11) Derivative Transactions and Hedge Accounting
Derivative financial instruments are valued at fair value.
(a)Hedge accounting

If derivative financial instruments are used as hedges and meet certain hedge criteria, recognition of gains or losses resulting from changes intheir fair value is deferred until the related losses or gains on the hedged items are recognized. Forward foreign exchange contracts whichmeet specific matching criteria are translated at the foreign exchange rate stipulated in the contracts.
(b)

Hedging instruments and hedged items


Hedging instruments – Derivative transactions (forward foreign exchange contracts)Hedged items – Hedged items are primary trade payables denominated in foreign currencies which have risks associated withadverse fluctuations in foreign currency.

(c)Hedge policy

Hedging transactions are being performed to mitigate future losses on the hedged items.
(d)Assessment of hedge effectiveness

Effectiveness of hedge is assessed by verifying if the foreign currency risks on the hedged items are mitigated.
(12) Cash and Cash Equivalents
Cash and cash equivalents in the accompanying Consolidated Statements of Cash Flows are comprised of cash on hand, demand deposits, andshort term investments with maturities of three months or less from the date of acquisition, that are liquid, readily convertible into cash, andare subject to minimum risk of price fluctuation.
(13) Accounting for Consumption Taxes
The Japanese consumption taxes withheld and consumption taxes paid are not included in the accompanying Consolidated Statements ofIncome.

－ 11 －

3. Cash and Cash Equivalents
Cash and Cash equivalents as of February 28, 2015 and 2014 consist of the following:
Millions of yen
2015
Cash and deposits¥

96,493Time deposits with maturities over three months
Cash and cash equivalents at end of period

2014¥

78,884(686)¥

95,807(128)¥

78,755

4. Inventories
Inventories as of February 28, 2015 and 2014 consist of the following:
Millions of yen
2015
Merchandise and finished goods

¥

2014

48,362¥38,962Work in process

44

13

Raw materials and supplies

960

479

Total

¥

49,367¥39,455

5. Financial Instruments(1)

Qualitative information on financial instruments(a)Policies relating to financial instruments

The Group invests its funds mainly in short-term deposits and raises funds by loans from financial institutions and issuance of bonds.
Derivative transactions are foreign exchange forward contracts which are only used to avoid the risks described below. The Group does notengage in derivative transactions for speculative purposes.
(b)

Details of financial instruments

and associated risk

Trade notes and accounts receivable, which are mostly related to tenant sales and credit card sales of commercial facilities, are exposed tocredit risk of customers.
Investment securities, which are mostly related to stocks of financial institutions, are exposed to market price volatility risk and credit
risk of issuers.
Investment in non-consolidated subsidiary does not have market price and is exposed to impairment risk due to financial result of thesubsidiary.
Long-term loans receivable, which are related to loans to business partners and leasehold contracts of stores, are exposed to credit risk ofborrowers.
Lease and guarantee deposits, which are mostly related to leasehold contracts of stores, are exposed to credit risk of lessors.
All notes and accounts payable and income taxes payable are due in one year.
Short-term loans payable are mostly related to funds used as payment of imported goods and Long-term loans payable are mostly related
to capital expenditures. Loans are generally borrowed with fixed rate and therefore, there is no interest rate risk.
Convertible bonds are related to funds used as mid-term capital investment and the term of redemption of the convertible bonds are 2
years and 11 months at the longest.
Derivative transactions are foreign exchange forward contracts which are used to mitigate the risk of currency exchange rates
fluctuations for receivables and payables denominated in foreign currencies. The Company also uses derivatives as hedging instruments,
which is described in Note 2. “Summary of Significant Accounting Policies”.

－ 12 －

(c)Risk management systems relating to financial instruments(i)Management of credit risk (risk relating to non-performance of a contract obligation by a counterparty, etc.)
With respect to trade receivables related to credit card sales, credit risk is fairly low because counterparties are group of financial
institutions. With respect to trade receivables related to tenant sales, as same as lease and guarantee deposits, Store Development
Department monitors the counterparty to reduce credit risk by early identification of a possible default caused by financial trouble of thecounterparty.
With respect to long-term loans receivable related to loans to business partners, quarterly monitoring of financial condition of theborrowers are performed to reduce credit risk by early identification of a possible default caused by financial trouble.
The Company believes that the credit risk under derivative transactions is fairly low because counterparties of derivativetransactions are limited to financial institutions with a high credit rating.

(ii)

Management of market risks (risks associated with fluctuations in foreign currency exchange as well as interest rates, etc.)
With respect to investment securities and investment in non-consolidated subsidiary, the Group quarterly monitors fair values as well as
the financial status of issuers (counterparties).
Basic policy of derivative transactions are decided by the Board of Directors and Import Team in Accounting Department performs
and manages transactions. Balance of derivative transactions and status of gain and losses are periodically reported to the Board of
Directors.

(iii)

Management of liquidity risks associated with the procurement of funds (the risk of being unable to make payments on due dates)
The Group manages its liquidity risk by adequate preparation and update of financial planning depending on the status of funds.

(d)Supplementary explanation for fair values, etc. of financial instruments

Fair values of financial instruments are determined by market prices. If no market price is available, the fair value is based on the value thatis calculated in a reasonable manner. The determination of such value contains variable factors, and the adoption of wide ranging anddiffering assumptions may cause values to change.
(2)

Fair Value of financial instruments

Book values and fair values of the financial instruments on the Consolidated Balance Sheet on February 28, 2015 and 2014 are as follows.
Financial instruments whose fair value is deemed highly difficult to measure are excluded from the table.
Millions of yen
2015

Cash and deposits

Book value

Fair value

Difference

¥

¥

¥

96,493

Notes and accounts receivable – trade

7,873

Less － allowance for doubtful accounts(41)

Net trade receivables

7,832

96,493

7,832

－

－

Investment in securities

40

40

－

Long-term loans receivable

2,458

2,490

31

Lease and guarantee deposits

17,85817,033(825)

Total assets

124,683

123,889(793)

Notes and accounts payable – trade14,176

14,176－

Notes payable – facilities

722

722

－

Short-term loans payable

6,355

6,355

－

Income taxes payable

9,815

9,815

－

Convertible bonds

33,00048,592

15,592Long-term loans payable (including current portion)

1,500

1,505

5

Total liabilities¥

65,569－ 13 －¥

81,167¥

15,597

Millions of yen
2014

Cash and deposits

Book value

Fair value

Difference

¥

¥

¥

Notes and accounts receivable – trade

78,88478,884－

6,463

Less － allowance for doubtful accounts

(30)
6,432

6,432

－

Investment in securities

Net trade receivables

105

105

－

Long-term loans receivable

2,575

2,600

24

Lease and guarantee deposits

15,232

14,505(727)

Total assets

103,229

102,527(702)

Notes and accounts payable – trade

8,551

8,551

－

Notes payable – facilities

778

778

－

Short-term loans payable

3,278

3,278

－

Income taxes payable

7,113

7,113

－

Convertible bonds

33,00037,042

4,042

Long-term loans payable (including current portion)

2,502

2,513

10

Total liabilities¥

55,224¥59,277¥

4,053

Note 1: Items relating to the calculation of the fair value of financial instruments(Assets)(1)

Cash and deposits and notes and accounts receivable, trade
Given that those items are of short duration, their current value approximates their book value, and therefore the fair value is deemed tobe that book value.

(2)

Investment securities
Fair value of equity securities is based on quoted market prices. Additional information on securities classified by holding purpose ispresented in Note 2. “Summary of Significant Accounting Policies”.

(3)Long-term loans receivable
The fair value of long-term loans receivable is based on the present value, which is obtained by discounting the total of principal andinterest by the interest rate that would be applied if similar new loans were entered into.

(4)

Lease and guarantee deposits
Given that lease and guarantee deposits are considered redeemable after a fixed period, their market value is calculated at a present
value discounted across the period to maturity at the government bonds interest rates closest to the maturity date.

(Liabilities)(1)

Notes and accounts payable – trade, notes payable – facilities, short-term loans payable and income taxes payable
Given that those items are of short duration, their current value approximates their book value, and therefore the fair value is deemed tobe that book value.

(2)

Convertible bonds
The fair value of convertible bonds is based on market price.

(3)Long-term loans payable (including current portion)
The fair value of long-term loans payable is based on the present value, which is obtained by discounting the total of principal andinterest by the interest rate that would be applied if similar new borrowings were entered into.

－ 14 －

Note 2: Items for which fair value is deemed highly difficult to measure
Millions of yen
2015

2014

Investment in securities:
Non-listed securities (*1)

¥

20

¥

20

Investment in non-consolidated subsidiary:
Non-listed securities (*2)
Lease and guarantee deposits (*3)

102

94

3,033

3,727

(*1) Non-listed securities classified as investment securities are not included in “Investment securities” in the tables of fair value of financial
instruments above since determining their estimated fair values was deemed to be highly difficult, due to the fact that these do not havemarket prices.
(*2) Investment in non-consolidated subsidiary are not included in the tables of fair value of financial instruments above since determining
their estimated fair values was deemed to be highly difficult, due to the fact that these do not have market prices.
(*3) These are not included in “Lease and guarantee deposits” in the tables of fair value of financial instruments above since determining
their fair values was deemed to be highly difficult, due to the fact that the amount to be refunded cannot be reasonably estimated.
Note 3: Redemption schedule for receivables and marketable securities with maturities
Millions of yen
2015

Within one year
Deposits¥

96,028Notes and accounts receivable – trade

After five years
within ten years

¥

7,873

Long-term loans receivable
Lease and guarantee deposits (*)
Total

After one year
within five years

¥

¥

－

－

After ten years
¥

－

－

－

160

641

1,622

114

3,206

13,428871

352

107,269¥

14,069

¥

2,494

－

¥

466

Millions of yen
2014

Within one year
Deposits¥

78,573

Notes and accounts receivable – trade

After one year

After five years

within five years

within ten years

¥

6,463

－

¥

－

－

After ten years
¥

－

－
－

Investment securities:
Available-for-securities with maturities:
Debt securities
Long-term loans receivable
Lease and guarantee deposits (*)
Total

(*)

¥

63

－

－

－

75

630

1,693

174

2,800

11,0301,020

380

87,976¥

11,661

¥

2,714

¥

555

Items for which fair values is deemed to be highly difficult, due to the fact that the amount to be refunded cannot be reasonably
estimated, are not included in “Lease and guarantee deposits”.

－ 15 －

6. Securities
Book value and acquisition cost of available-for-sale securities as of February 28, 2015 and 2014 are as follows:
Millions of yen
2015Book value

Acquisition cost

Difference

Securities with book value exceeding acquisition cost:
Equity securities

¥

40

¥

17

¥

22

Debt securities

－

－

－

Other

－

－

－

Sub-total

40

17

22

－

－

－

Securities with book value not exceeding acquisition cost:
Equity securities
Debt securities

－

－

－

Other

20

20

－

Sub-total

20

20

－

Total

¥

60

¥

38

¥

22

Millions of yen
2014Book value

Acquisition cost

Difference

Securities with book value exceeding acquisition cost:
Equity securities

¥

31

¥

17

¥

14

Debt securities

73

49

23

Other

－

－

－

Sub-total

105

67

37

Equity securities

－

－

－

Debt securities

－

－

－

Other

20

20

－

Sub-total

20

20

－

Securities with book value not exceeding acquisition cost:

Total

¥

－ 16 －

125

¥

87

¥

37

7. Leases(1)

Operating leases

The amounts of outstanding future lease payments under lease agreements other than finance leases, which are non-cancelable, including theinterest portion, as of February 28, 2015 and 2014 are as follows:
Millions of yen
2015

Due within one year

¥

2014
2,337

Due after one year

¥

1,692

4,243

Total

¥

6,581

4,010
¥

5,703

8. Short-Term and Long-Term Debt
Short-term and long-term debt as of February 28, 2015 and 2014 consist of the following:
Millions of yen
2015
Short-term loans payable¥

Current portion of long-term loans payable

2014
6,355

¥

1,000

3,278
1,002

Current portion of lease obligations

21

21

Long-term loans payable (excluding current portion)

500

1,500

Lease obligations (excluding current portion)
Convertible bonds
Total short-term and long-term debt

¥

16

38

33,00033,00040,893¥38,840Weighted-average rate of interest:
Short-term loans payable

0.78%

0.49%

Current portion of long-term loans payable

0.88%

0.88%

Current portion of lease obligations
Long-term

loans

payable(excluding

current

1.91%

1.90%

0.88%

0.88%

1.98%

1.92%

－

－

portion)Lease obligations (excluding current portion)
Convertible bonds－ 17 －

On February 5, 2013, the Company issued ¥ 33,000 million of Euro-yen convertible bonds with stock acquisition rights due in 2018. Summaryof the convertible bonds with stock acquisition right are as follows:
Type of stock to be issued upon conversion

Common stock of ABC-MART, INC.

Issue price of stock acquisition rights－

Conversion price (yen) (Note 1)¥ 4,588

Number of shares of common stock (Note 2)

7,192,676

Issue price of bonds (millions of yen)

¥ 33,000

Common stock issued upon conversion－

Percentage of stock acquisition rights granted

100%

Exercise period of conversion

February 19, 2013 to January 22, 2018

PledgeUnsecured

Redemption dateFebruary 5, 2018

Balance of stock acquisition rights as of February 28, 2015－

Note 1:

Conversion price has been changed from ¥ 4,588 to ¥ 4,556.50 on March 1, 2015 because the approval of a year-end cash dividend by
the shareholders at the meeting held on May 27, 2015 corresponds to the adjustment clause of bonds guideline.

Note 2:

Numbers of shares of common stock are calculated on the assumption that all convertible bonds with stock acquisition rights are

Note 3:

Exercise of a stock acquisition right causes the corresponding bond to be cancelled in lieu of a cash payment of purchase of shares,

converted as of February 28, 2015.
and the amount of the convertible bonds with stock acquisition right is the same as the amount of issuance.
The aggregate annual maturities of long-term debt including convertible bonds within 5 years after the years of February 28, 2015 aresummarized as follows:

Millions of yen
Year ending February 28 or 29,
2017

2015
¥

500

2018

33,000

2019

－

2020

－

Total long-term debt¥

33,500－ 18 －

9. Income Taxes(1)

The significant components of deferred tax assets and liabilities as of February 28, 2015 and 2014 are as follows:
Millions of yen
2015

2014

Deferred tax assets:
Accrued enterprise tax

¥

615

¥

490

Provision for bonuses

243

241

Depreciation and amortization

65

80

Allowance for doubtful accounts

17

12

Loss on valuation of inventories

771

320

Impairment loss

54

58

Tax laws adopted foreign subsidiaries

45

72

Accrued social insurance

35

34

Accrued business office tax

39

39

Asset retirement obligation

530

427

Allowance for accrued pension and severance costs－

285

Net defined benefit liability

321

－

Other

570

461

3,311

2,524

Valuation allowances

(121)

(133)

Total deferred tax assets

3,190

2,391

Total deferred tax assets before net of valuation
allowances

Deferred tax liabilities:
Property, plant and equipment
Intangible assets
Other
Total deferred tax liabilities
Net deferred tax assets

(2)

¥

(276)

(261)

(1,662)(1,510)

(54)

(36)

(1,993)(1,808)

1,197

¥

583

The reconciliation of the difference between the statutory tax rate and the effective tax rate for the years ended February 28, 2015 and2014 are as follows:
2014

2015
Statutory tax rate

38.0%

38.0%

Income taxes on retained earnings of family company

1.2%

2.5%

Tax rate difference in subsidiaries(1.5%)(1.3%)

Amortization of goodwill

1.1%

1.2%

Other

0.2%

(0.4%)

38.9%

40.0%

Adjustments:

Effective tax rate

(3)

Correction of the amount of deferred tax assets and deferred tax liabilities due to the change of corporate tax rates, etc.

Following the promulgation on March 31, 2014 of “Act for Partial revision of the Income Tax Act, etc.” (Act No. 10 of 2014), the special
corporate tax for reconstruction were not be imposed from the years beginning on or after April l, 2014. As a result of this application, theeffective tax rates, which were used to calculate deferred income taxes, was reduced from 38.01% to 35.64% for temporary differences that are
expected to be eliminated in the year beginning on March 1, 2015. The impact of this change in tax rate on consolidated financial statements isimmaterial.

－ 19 －

(4)Change in the income tax rate after the consolidated balance sheet date

“Act for Partial revision of the Income tax Act, etc.” (Act No. 9 of 2015) and “Act for Partial revision of the Local Taxation Act, etc.” (Act No.2 of2015) were promulgated on March 31, 2015, and it has been decided that corporate tax rates will be reduced in the year beginning on or after
April 1, 2015.

Associated with this, the statutory effective tax rate used for the calculation of deferred tax assets and deferred tax liabilities

will be reduced from the previous 35.64% to 33.06% for temporary differences that are expected to be realized in the year beginning on March
1, 2016 and to 32.30% for temporary differences that are expected to be realized in or after the year beginning on March 1, 2017. The impact of
this change in tax rate on consolidated financial statements is immaterial.

－ 20 －

10. Retirement Benefits(1)

Retirement benefit plans adopted
A part of subsidiaries have a defined benefit pension plan and a defined contribution plan for employees’ retirement benefit.
Under the defined benefit plan (funded plan), lump-sum payments and/or pension payments, the amounts of which are determinedby reference to their basic salaries are to be made.

(2)

Defined benefit plan(a)

The reconciliation of projected benefit obligations for the year ended February 28, 2015 is as follows:
Millions of yen
2015

As of March 1, 2014

¥

2,424

Service cost

222

Interest cost

102

Actuarial gain/loss

297

Benefit paid

(244)

Translation adjustments372

As of February 28, 2015

(b)

¥

3,175

The reconciliation of plan assets for the year ended February 28, 2015 is as follows:
Millions of yen
2015

As of March 1, 2014

¥

1,857

Expected return on plan assets

134

Actuarial gain/loss(59)

Employee contribution

347

Benefit paid

(241)

Translation adjustments

268

Other
As of February 28, 2015

(c)

(1)
¥

2,305

The reconciliation between projected benefit obligations and plan assets, and net defined benefit liability as of February 28,
2015 is as follows:
Millions of yen
2015

Projected benefit obligations¥

Fair value of plan assets

3,175(2,305)

Net of pension assets and liabilities¥

870

Net defined benefit liabilities¥

870

Net of pension assets and liabilities¥

870－ 21 －

(d)The components of net periodic benefit costs for the year ended February 28, 2015 are as follows:
Millions of yen
2015

Service cost¥

222

Interest cost

102

Expected return on plan assets(134)

Recognized actuarial loss

258

Other
Total

(e)

1
¥

450

The allocation of the plan assets as of the end of February 28, 2015 is as follows:
Millions of yen
2015

Debt securities

49.9%

Equity securities

33.0%

Cash and deposits

17.1%

Other

－

Total

100.0%In determining the expected rate of return on plan assets, the subsidiary considers the current and projected asset allocations, aswell as expected investment returns for each category of the plan assets.
(f)

(3)

Assumptions used as of the end of February 28, 2015 are as follows (shown in weighted average percentage):

Discount rate

3.6%

Expected rate of return on plan assets

7.5%

Rate of salary increase

5.0%

Defined contribution plan
The required contributions for the defined contribution plan for the consolidated subsidiaries are 73 million for the year ended
February 28, 2015.

－ 22 －

11. Asset Retirement Obligations(1)(a)

Asset retirement obligations recorded in the Consolidated Financial Statements.
Summary of asset retirement obligations
The Company recorded asset retirement obligations mainly related to the obligation to return stores to their original condition upon
termination of their lease contracts.

(b)

Calculation method of the asset retirement obligations
In the calculation process of asset retirement obligations, the Company estimates terms of use between 3 and 6 years and use
government bond interest rates as discount rates.

(c)

Changes in the total amounts of applicable asset retirement obligations in the year ended February 28, 2015 and 2014
Millions of yen
2014

2015
As of March 1¥

Increase due to acquisition of property, plant and equipment¥

34

Adjustment due to passage of time

236
20

3

10

Decrease due to settlement of asset retirement obligations

(23)

(22)

Others20

25

As of February 28

(2)

270

¥

305

¥

270

Asset retirement obligations not included in the consolidated balance sheets
Asset retirement obligations for leasehold contracts of certain offices and stores, for which the related amount could not be reasonably
estimated because the period of use of the properties is uncertain and there is no current plan to vacate the properties, are not included in
the consolidated balance sheets.
For certain lease and guarantee deposits, instead of recording asset retirement obligations as liability, a reasonable estimate of theamount of deposits from rental properties, that cannot be recovered at the end of the leasehold contracts, is made, and the portion for thecorresponding year is recorded as expenses. Lease and guarantee deposits that are expected not to be recovered at the end of theleasehold contracts are ¥916 million and ¥956 million as of February 28, 2015 and 2014, respectively.

－ 23 －

12. Commitment and Contingencies(1)

Assets pledged

The amount of assets pledged as collateral by the Company and corresponding liabilities as of February 28, 2015 and 2014 are as follows:
2015
Assets pledged:
Buildings and structures andMillions of yen
¥

711

¥

123

Corresponding liabilities:

Millions of yen

Accounts payable

¥

201

¥

60

Land
Other non-current liabilities
Cash and deposits

42

Accounts payable
Bank loans

271

Note: Total assets of LaCrosse Footwear, Inc. (¥15,007 million) are pledged for a commitment line agreement.
2014
Assets pledged:

Millions of yen

Land

¥

584

Cash and deposits¥

114

Corresponding liabilities:

Millions of yen

Accounts payable¥

Accounts payable¥

Bank loans

79
45
264

Note: Total assets of LaCrosse Footwear, Inc. (¥9,891 million) are pledged for a commitment line agreement.
(2)

Notes payable with maturities

Notes payable with maturities at the end of the year are processed at the date of exchange. Following notes payable with maturities as ofFebruary 28, 2015 are included in the consolidated balance sheet because February 28, 2015 was bank holiday.
Millions of yen
2015
Notes payable:
Trade
Facilities

¥

2,598
162

－ 24 －

13. Net Assets
Net assets comprise three subsections, which are shareholders’ equity, accumulated other comprehensive income, and minority interests inconsolidated subsidiaries.
The Japanese Corporate Law (the “Law”) became effective on May 1, 2006, replacing the Japanese Commercial Code (the “Code”). The
Law is generally applicable to events and transactions occurring after April 30, 2006, and for the years ending after that date.
Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock. However, acompany may, by a resolution of its board of directors, designate an amount not exceeding one-half of the prices of the new shares as additional
paid-in capital, which is included in capital surplus.
Under the Law, in cases where dividend distribution of surplus is made, the smaller of an amount equal to 10% of the dividend or theexcess, if any, of 25% of common stock over the total of additional paid-in capital and legal earnings reserve must be set aside as additional
paid-in capital or legal earnings reserve. Legal earnings reserve is included in retained earnings in the accompanying Consolidated Balance
Sheets.
Under the Code, a company is required to set aside an amount equal to at least 10% of the aggregate amount of cash dividends and othercash appropriations as legal earnings reserve until the total of legal earnings reserve and additional paid-in capital equaled 25% of common
stock.
Under the Code, legal earnings reserve and additional paid-in capital could be used to eliminate or reduce a deficit by a resolution of theshareholders’ meeting or could be capitalized by a resolution of the board of directors. Under the Law, both of these appropriations generally
require a resolution of the shareholders’ meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Code, however, on condition thatthe total amount of legal earnings reserve and additional paid-in capital remained equal to or exceeded 25% of common stock, they wereavailable for distribution by a resolution of the shareholders’ meeting. Under the Law, all additional paid-in capital and all legal earnings
reserve may be transferred to other capital surplus and retained earnings, respectively, which are potentially available for dividends.
The maximum amount that a company can distribute as dividends is calculated based on the Non-Consolidated Financial Statements of theCompany in accordance with the Law.
At the annual shareholders’ meeting, held on May 27, 2015, the shareholders approved cash dividends amounting to ¥4,517 million.
Such appropriations have not been accrued in the Consolidated Financial Statements as of February 28, 2015. Such appropriations are recognized in the period in which they are approved by the shareholders.

－ 25 －

14. Other comprehensive income
The following table presents reclassification adjustments and tax effects allocated to each component of other comprehensive income for theyear ended February 28, 2015 and 2014:
Millions of yen
2014

2015
Net unrealized gains (losses) on available-for-sale securities:
Amount arising during the year

¥

(25)

¥

15

Reclassification adjustments for gains and losses included in net income

10－

Net unrealized gains (losses) on available-for-sale securities before tax

(14)

15

6

(6)

(8)

9

4,474

6,113

4,466

¥ 6,122

Tax effects
Net unrealized gains (losses) on available-for-sale securities
Foreign currency translation adjustments:
Amount arising during the year
Total other comprehensive income¥

15. Supplementary profit and loss information(1)

Components of gain on sales of noncurrent assets for the years ended February 28, 2015 and 2014 are as follows:
Millions of yen
2015¥

Tools, furniture and fixtures
VehiclesComponents of

－

¥

4

Total

(2)

2014

¥

4

0
0

¥

0

loss on retirement of noncurrent assets for the years ended February 28, 2015 and 2014 are as follows:
Millions of yen
2015

Buildings and structures

¥

2014
10

¥

27

Tools, furniture and fixtures

79

61

Vehicles5－

Software1

3

Store removal expenses

75

81

Total

¥

－ 26 －

171

¥

175

16. Impairment loss on property, plant and equipment
For the years ended February 28, 2015 and 2014, the Company recognized ¥253 million and ¥263 million of impairment loss, respectively, on
the following groups of assets:
Millions of yen
Description

Location

Classification

2015

Stores

Shinjuku, Tokyo and other 67 stores (Close, 12

Buildings¥

stores and renewals, 55 stores).

20

Tools, furniture and fixtures
Total impairment loss

233

¥

253

Millions of yen
Description

Location

Classification

2014

StoresUtazu town, Ayauta, Kagawa and other 75 stores

Buildings¥(Close, 21 stores and renewals, 54 stores).

16

Tools, furniture and fixtures
Total impairment loss

247

¥

263

The Company groups its fixed assets by store, which is the minimum cash-generating unit. The book values of stores which are expected toclose or renew, or which incurred consecutive operating losses were reduced to recoverable amounts, and such deducted amounts wererecorded as an impairment loss. Values in use were used as recoverable amounts and the values in use are calculated as nil.

17. Per Share Information
Net income and cash dividends per share for the years ended February 28, 2015 and 2014, and net assets per share as of February 28, 2015
and 2014 are as follows:
Yen
2015

2014

Net income per share:
Basic

¥

Diluted (*)

323.71¥295.49265.48242.33

Net assets per share:
Basic
Cash dividends per share¥

2,059.68¥

1,747.10¥

100.00¥55.00

Basis for the calculation of basic and diluted net income per share for the years ended February 28, 2015 and 2014 are as follows:
Millions of yen
2015

2014

Basic:Net income
Net income pertaining to common shareholders¥

24,373¥

19,98924,373

19,98975,294,263

75,294,265－－

7,192,676

7,192,676

Weighted-average number of shares of common
stock outstanding (shares)
Diluted:Adjustments of net income
Effect of dilutive securities – convertible bonds(shares)
Note: There is no item which had not been included in the calculation of diluted net income per share due to no dilutive effect.

－ 27 －

18. Related Party Transaction
Information of the related parties is as follows:
Capital and
Related party

Classification

Voting rights

Addressinvestments

Business

Masahiro Miki

Major shareholder

－

－

－

Michiko Miki

Major shareholder

－

－

－

E.M Planning, LLC.

Company inwhich major

shareholders

andrelatives

majority

own

their
of

voting rights

Hamanishi Building Co.

Company inwhich major

shareholders

andrelatives

majorityownvoting rights

their
of

Shibuyaward,¥ 10 million

Real estate¥ 43 million

Real estateTokyo(held)
Directly
28.39%
Directly
12.59%
Directly
27.39%Nishi
ward,
Yokohama－ 28 －－

Transactions between the Company and the related parties for the years ended February 28, 2015 and 2014 are as follows:
Millions of yen
2015

2014

Balance of the transactions:
Masahiro Miki:
Prepaid expense¥

17

Lease and guarantee deposits

¥

16

147

147

Michiko Miki:
Prepaid expense

14

14

Lease and guarantee deposits

97

97

Prepaid expense

40

39

Lease and guarantee deposits

378

377

0

0

Prepaid expense

17

16

Lease and guarantee deposits

160

160

E.M Planning, LLC.:

Accrued expenses
Hamanishi Building Co.:

Transaction amounts:
Masahiro Miki:
Leasing of buildings
Transferee of real-estate

¥

191

¥

191

1,891

－

165

165

Leasing of buildings

458

436

Advances－

28,800Receipt of commission

－

0

192

192

Michiko Miki:
Leasing of buildings
E.M Planning, LLC.:

Hamanishi Building Co.:
Leasing of buildings
Note 1:(1)Monthly rent and lease deposit in lease contracts are determined based on prevailing market prices. A part of leasing transactions ofbuildings is nominally conducted via trust bank.

(2)

Purchase price of the real-estate are determined based on appraisal of real estate appraiser.

Note 2:The transaction amount is exclusive of consumption taxes.

－ 29 －

19. Segment Information(1)

Overview of reportable segments

With respect to its reportable segments, the Company is able to obtain delineated financial data from its structural units. Its segments are
subject to periodical review for the purpose of making decisions on allocation of managerial resources and evaluating business performance by
the Board of Directors.
The Group operates shoes retail stores, “ABC-MART” all over the world and sells retail products mainly shoes. In Japan, The Company,
ABC-MART, INC., operates its business, and in overseas, ABC-MART, KOREA, ABC-MART, TAIWAN and LaCrosse Footwear, Inc. (U.S.A)
operate their business independently as management units. Therefore, the Group consists of geographical reportable segments such as“Domestic” and “Overseas”. Each reportable segment sells shoes and other shoes related clothing and accessories.
(2)

Calculation methodology for revenues from operations, income or losses, assets and liabilities, and other items for each reportablesegment

The accounting treatment of each reportable segment is in line with Note 2. “Summary of Significant Accounting Policies”. Segment income asreported in this section is based on operating income. Intersegment revenues and transfers are calculated at prevailing market prices.

－ 30 －

(3)Information on sales, income, assets and other monetary items for each reportable segment
Millions of yen
2015
Reportable segments

Consolidated

Overseas

Domestic

Total

Adjustments

213,584¥

total

Sales:
Customers¥

Intersegment
Total revenue
Segment income

159,456¥

669

54,128

¥

238

908

－

¥

213,584

(908)

－

¥

160,126¥

54,366¥

214,492

¥

(908)

¥

213,584¥

36,124

¥

3,495

¥

39,620¥31¥

39,651

Segment assets

174,283

59,558233,842(180)

233,661

2,274

1,744

4,019

－

4,019

－

1,161

1,161

－

1,161

5,573

2,906

8,480

－

8,480

Other items:
Depreciation and amortization
Amortization of goodwill
Net increase in property, plantand equipment and intangible
assetsMillions of yen
2014
Reportable segments

Consolidated

Overseas

Domestic

Total

total

Adjustments

Sales:
Customers¥

Intersegment¥534

Total revenue¥

Segment income¥

Segment assets

145,187

42,857¥

233

145,721¥

31,358¥188,045¥768

43,091

¥

2,782

¥

－

¥

(768)

188,813¥

34,140¥188,045
－

(768)

¥

(14)

¥

188,045
34,126

149,087

47,903

196,991(110)

196,881

2,349

1,536

3,885

－

3,885

－

1,023

1,023

－

1,023

2,991

1,977

4,969

－

4,969

Other items:
Depreciation and amortization
Amortization of goodwill
Net increase in property, plantand equipment and intangible
assets
Note 1:

The adjustments of ¥31 million and ¥(14) million for segment income and ¥(180) million and ¥(110) million for segment assets are
eliminations of intersegment transactions for the years ended February 28, 2015and 2014, respectively.

Note 2:

Segment income and segment assets are reconciled with the operating income in the Consolidated Statements of Income and total
assets in Consolidated Balance Sheet, respectively.

－ 31 －

(Related information)(1)

Information by products and services

Information is omitted since sales to customers of single category of products and services exceed 90% of consolidated net sales.
(2)

Information by region

Information is omitted since it is described in the segment information.
(3)

Information by major customers

Information is omitted since there is no customer accounting for 10% or more of consolidated net sales.
(4)

Information regarding impairment loss on fixed assets by reportable segment for the year ended February 28, 2015 and 2014 is asfollows:
Millions of yen
2015
Consolidated

Impairment loss

Domestic

Overseas

¥

¥

249

Total
4

¥

total

Adjustments
253

¥

－

¥

253

Millions of yen
2014
Consolidated

Impairment loss

(5)

Domestic

Overseas

¥

¥

263

－

Total
¥

total

Adjustments
263

¥

－

¥

263

Information on amortization and outstanding balance of goodwill by reportable segment for the year ended February 28, 2015 and 2014 is
as follows:
Millions of yen
2015
Consolidated
Domestic

Overseas

Total

total

Adjustments

Amortization

¥

－

¥

1,161

¥

1,161

¥

－

¥

1,161

Balance at the end of year

¥

－

¥

7,511

¥

7,511

¥

－

¥

7,511

Millions of yen
2014
Consolidated
Domestic

Overseas

Total

total

Adjustments

Amortization

¥

－

¥

1,023

¥

1,023

¥

－

¥

1,023

Balance at the end of year

¥

－

¥

7,195

¥

7,195

¥

－

¥

7,195

(6)

Information regarding gain on negative goodwill by reportable segment

None

20. Subsequent Event
Subsequent to February 28, 2015, the Company’s Board of Directors declared a year-end cash dividend of ¥ 4,517 million to be payable on May
28, 2015 to shareholders on record on February 28, 2015. The dividend declared was approved by the shareholders at the meeting held on May
27, 2015.

－ 32 －

ABC-MART, INC.
Registered office:Head office:Telephone:URL:

11-5, Jinnan 1-chome, Shibuya-ku, Tokyo 150-0041, Japan
19th Floor, Shibuya Mark City West,12-1, Dogenzaka 1- chome, Shibuya-ku, Tokyo 150-0043, Japan+81-3-3476-5452
http://www.abc-mart.co.jp/ir/