CONSOLIDATED FINANCIAL STATEMENTS
TAMURA CORPORATIONAS OF MARCH 31, 2015 AND 2014

Independent Auditor’s Report
The Board of Directors
TAMURA CORPORATION
We have audited the accompanying consolidated financial statements of TAMURACORPORATION and its consolidated subsidiaries, which comprise the consolidated balance
sheet as at March 31, 2015, and the consolidated statements of income, comprehensive income,changes in net assets, and cash flows for the year then ended and a summary of significant
accounting policies and other explanatory information, all expressed in Japanese yen.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with accounting principles generally accepted in Japan, andfor designing and operating such internal control as management determines is necessary toenable the preparation and fair presentation of the consolidated financial statements that are freefrom material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on
our audit. We conducted our audit in accordance with auditing standards generally accepted inJapan. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. The purpose of an audit of theconsolidated financial statements is not to express an opinion on the effectiveness of the entity’s
internal control, but in making these risk assessments the auditor considers internal controls
relevant to the entity’s preparation and fair presentation of the consolidated financial statements
in order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by management, as well as evaluating the overall presentation of theconsolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of TAMURA CORPORATION and its consolidated
subsidiaries as at March 31, 2015, and their consolidated financial performance and cash flows
for the year then ended in conformity with accounting principles generally accepted in Japan.
Convenience Translation
We have reviewed the translation of these consolidated financial statements into U.S. dollars,presented for the convenience of readers, and, in our opinion, the accompanying consolidated
financial statements have been properly translated on the basis described in Note 1(a).
Ernst & Young Shinnihon LLC

June 26, 2015
Tokyo, JapanTAMURA CORPORATION AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED BALANCE SHEETSASSETS
Current Assets:
Cash and bank deposits (Notes 3 and 4)¥
Notes and accounts receivable-trade (Note 4)
Non-consolidated subsidiaries and affiliates
Other
Allowance for doubtful accounts

Millions of yen
March 31,
2015
2014

Thousands of
U.S. dollars(Note 1(a))
March 31,2015

11,816$¥

12,24598,466

111
23,574(106)
23,57914,412624
2,537
52,96879
21,565(113)
21,531
13,324471
2,415
49,986925
196,450(883)
196,492
120,100
5,200
21,142441,400

Securities in the non-current portfolio (Notes 4 and 5)

2,062

1,539

17,183

Investments in non-consolidated subsidiaries
and affiliates
Net defined benefit asset (Note 8)
Deferred tax assets (Note 13)
Other assets
Total investments and other assets

1,958
904
288
2,313
7,525

663
－
564
2,233
4,999

16,316
7,533
2,400
19,27662,708Property, Plant and Equipment: (Notes 14 and 18)
Land
6,130
Buildings and structures
18,193
Machinery and equipment
27,212
Lease assets
1,522
Construction in progress
560
53,617
Accumulated depreciation(33,855)
Net property, plant and equipment
19,762
Total assets¥
80,255

6,714
17,70426,0271,356
461
52,262(32,479)
19,78374,76851,083
151,608
226,767
12,683
4,667
446,808(282,125)
164,683
668,791

Inventories (Note 6)
Deferred tax assets (Note 13)
Other current assets
Total current assets
Investments and Other Assets:¥

The accompanying notes are an integral part of these statements.

2$

Thousands of
U.S. dollars(Note 1(a))
March 31,
2015

Millions of yen
March 31,
2015
2014
LIABIL IT IES AN D SH AREHOL DERS'EQUITY
Current L iabilities:
Short-term loans (Notes 4 and 7)

¥

5,906

¥

5,527

$

49,216

Current portion of long-term debt (Notes 4 and 7)

872

1,976

7,267

Lease obligations (Notes 4 and 7)

371

364

3,092

390

282

3,250

Notes and accounts payable-trade (Note 4)
Non-consolidated subsidiaries and affiliates
Other

11,266

12,00593,883

11,656

12,287

97,133

Income tax payable

585

583

4,875

Accrued bonuses

1,012

961

8,433

Accrued bonuses for directors

63

67

525

Other current liabilities (Note 13)

2,963

2,972

24,692

Total current liabilities

23,42824,737

195,233

Long-term Debt (Notes 4 and 7)

14,914

14,552

124,283

Lease Obligations (Notes 4 and 7)

547

563

4,558

2,765

2,579

23,042

Deferred Tax Liabilities (N ote 13)

26

26

217

Other L ong-term L iabilities

411

416

3,425

11,82911,82998,575Additional paid-in capital

17,174

17,173

143,117

Retained earnings

6,138

3,078

51,150Net Defined Benefit Liability (Note 8)

Contingent L iabilities and Com m itm ent(N ote 16 and 17)
Net Assets
Shareholders' Equity
Common stock:
Authorized - 252,000,000 shares
Issued and outstanding – 82,771,473 shares

Treasury stock, at cost (Note 10)

(288)

(281)

(2,400)Total shareholders' equity

34,85331,799290,442

Unrealized gain on securities

437

129

3,642

Deferred gain (loss) on hedges

2

(8)

16

Acc um ulated Other Com prehensive Incom e

Translation adjustments

3,292

939

27,433Remeasurements of defined benefit plans(617)(1,138)(5,141)

3,114

(78)

25,950

115

99

958

Total accumulated other comprehensive income
Subsc ription Rights to Shares
Minority Interests
Total net assets
Total liabilities and net assets

¥

82

75

683

38,16431,895

318,033

80,255The accompanying notes are an integral part of these statements.

3¥

74,768$

668,791

TAMURA CORPORATION AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME ANDCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(CONSOLIDATED STATEMENTS OF INCOME)

Thousands of2014

U.S. dollars(Note 1(a))
Year ended
March 31,
2015

81,176$

Millions of yen
Year ended March 31,
2015
Net Sales¥

86,248¥

718,733

Operating Cost and Expenses:
Cost of sales (Note 12)62,76060,134

523,000

Selling, general and administrative expenses(Notes 11 and 12)

19,45918,633

162,158

82,2194,029

78,7672,409

685,158
33,575

101
227
(328)
(159)
－
515
(288)
68
4,097

112
－
(367)
668
(28)
506
(560)
331
2,740

842
1,891
(2,733)(1,325)－
4,291(2,400)566
34,141

972
19
991
3,106

865
67
932
1,808

8,100
158
8,258
25,883

0
3,106

11
1,797

0
25,883Operating income
Other Income (Expenses):
Interest and dividend income
Equity in earnings of affiliates
Interest expense
Foreign exchange gain (loss)
Special retirement expenses
Other income
Other expenses
Income before income taxes and minority interests
Income Taxes (Note 13)
Current
DeferredIncome before minority interests
Minority Interests
Net income

¥

¥

Yen
Per Share:
Basic net income
Diluted net income
Cash dividends per share

¥

37.88
37.68
7.00

The accompanying notes are an integral part of these statements.

4

¥

$

U.S. dollars
21.92
21.81
6.00

$

0.31
0.31
0.05

(CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME)

Thousands of
U.S. dollars(Note 1(a))

Millions of yen

Year ended
March 31,

Year ended March 31,
2015
Incom e before m in ority interests

¥

2014

3,106

¥

2015

1,808

$

25,883

Other Com prehensive Incom e
Unrealized gain on securities

308

138

Deferred gain (loss) on hedges

10

(7)

83

2,216

3,077

18,467

521

－

4,341

Translation adjustments
Remeasurements of defined benefit plans

2,567

Share of other comprehensive income ofaffiliates accounted for using equity method

144

9

1,200

Total other comprehensive income (Note 9)

3,199

3,217

26,658Comprehensive income

¥

6,305

¥

5,025

$

52,541

¥

6,298

¥

5,006

$

52,483

Total comprehensive income attributable to:Shareholders of the Company
Minority interests

7

The accompanying notes are an integral part of these statements.

5

19

58

TAMURA CORPORATION AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFor the year ended March 31, 2015

Number ofsharesissuedBalance at April 1, 2014

Millions of yen
Shareholders’ equity
Treasury
Additional
paid-in
Retained
stock
capitalearnings(Note 10)

Total
shareholders'equity¥¥Commonstock

82,771,473¥

11,82917,173

¥

3,078

¥

(281)

31,799

Increase due to exchangeof shares
Dividends from surplus

(492)

(492)

Net income

3,106

3,106

Acquisition of treasury stock(9)

Disposal of treasury stock

0

(1)

Other

(9)

2

1

448

448

Items other than changes
in shareholders’ equity
Balance at March 31, 2015

82,771,473¥

11,829¥17,173

¥

6,139

¥

(288)

¥

34,853

Millions of yen
Accumulated other comprehensive income
Total

Balance at April 1, 2014

Unrealized

DeferredTranslation

Remeasurements

accumulated other

Subscription

gain ongain (loss) on

adjust-of definedcomprehensive

rights to

Minority

securities

hedgesments

benefit plansincomesharesinterests

¥

129 ¥

(8) ¥

939 ¥

(1,138) ¥(78) ¥

99¥

75

Total net
assets¥31,895

Increase due to exchangeof shares
Dividends from surplus(492)

Net income

3,106

Acquisition of treasury stock(9)

Disposal of treasury stock

1

Other

448

Items other than changes
in shareholders’ equity
Balance at March 31, 2015

¥

308

10

2,353

521

3,192

16

7

437 ¥

2 ¥

3,292 ¥

(617) ¥

3,114 ¥

115 ¥

82

6

3,215
¥

38,164

For the year ended March 31, 2014

Number ofsharesissuedBalance at April 1, 2013

Millions of yen
Shareholders’ equity
Treasury
Additional
paid-in
Retained
stock
capitalearnings(Note 10)

Total
shareholders'equity¥¥Commonstock

82,771,473¥

11,82917,173

¥

1,471

¥

(278)

30,195

Increase due to exchangeof shares
Dividends from surplus

(246)

(246)

Net income

1,798

1,798

Acquisition of treasury stock－

Disposal of treasury stock

－

(6)
(1)

Other

(6)

3

2

56

56

Items other than changes
in shareholders’ equity
Balance at March 31, 2014

82,771,473¥

11,829¥17,173

¥

3,078

¥

(281)

¥

31,799Millions of yen
Accumulated other comprehensive income
Total

Balance at April 1, 2013

Unrealized

DeferredTranslation

Remeasurements

accumulated other

Subscription

gain (loss) on

gain (loss) on

adjust-of definedcomprehensive

rights to

Minority

securities

hedgesments

benefit plansincomesharesinterests¥(10) ¥(0) ¥(2,139) ¥－¥(2,149) ¥

89

¥

－

Total net
assets¥28,135

Increase due to exchangeof shares
Dividends from surplus(246)

Net income

1,798

Acquisition of treasury stock(6)

Disposal of treasury stock

2

Other

56

Items other than changes
in shareholders’ equity
Balance at March 31, 2014

¥

139

(8)

129 ¥

(8) ¥

3,078
939 ¥

7

(1,138)(1,138) ¥2,071(78) ¥

10

75

99 ¥

75

2,156
¥

31,895

For the year ended March 31, 2015

Number ofsharesissuedBalance at April 1, 2014

Thousands of U.S. dollars (Note 1(a))
Shareholders’ equity
Treasury
Additional
paid-in
Retained
stock
capitalearnings(Note 10)

Total
shareholders'equity$$Commonstock

82,771,473$

98,575

143,109$25,650$(2,342)

264,992

Increase due to exchangeof shares
Dividends from surplus(4,100)Net income

25,883－(4,100)25,883Acquisition of treasury stock(75)

Disposal of treasury stock

0

(8)

Other

(75)

17

9

3,733

3,733

Items other than changes
in shareholders’ equity
Balance at March 31, 2015

82,771,473$

98,575$

143,109$

51,158$(2,400)$290,442

Thousands of U.S. dollars (Note 1(a))
Accumulated other comprehensive income
Total

Balance at April 1, 2014

Unrealized

DeferredTranslation

Remeasurements

accumulated other

Subscription

gain ongain (loss) on

adjust-of definedcomprehensive

rights to

Minority

securities

hedgesments

benefit plansincomesharesinterests

$

1,075

$

(67)

$

7,825

$

(9,483)

$

(650)

$

825

$

625

Total net
assets$Increase due to exchangeof shares

265,792

Dividends from surplus－(4,100)Net income

25,883Acquisition of treasury stock(75)

Disposal of treasury stock

9

Other

3,733

Items other than changes
in shareholders’ equity
Balance at March 31, 2015

2,567
$

3,642

83
$

16

19,608$27,433

4,342$(5,141)

The accompanying notes are an integral part of these statements.

826,600$25,950

133
$

958

58
$

683

26,791$

318,033

TAMURA CORPORATI ON AND CONSOLID ATED SUBSI DI ARI ESCONSOLI DATED STATEMENTS OF CASH FLOWSMillions of yen
Year ended March 31,
2015

Thousands of
U.S. dollars(Note 1(a))
Year ended
March 31,
2015

2014

C a s h Fl ows fro m Ope ra t i ng Act i vi t i es :¥Income before income taxes
Depreciation
Decrease in net defined benefit liability
Increase (decrease) in allowance for doubtful accounts
Gain on sales of investment securities
Write-down of investment securities

4,097
2,352
(212)
(36)
(0)

¥

－
(101)
328
(63)
(228)
49
(5)
(630)
(223)
(1,375)
382
4,335
113
(333)
(983)
3,132

Interest and dividend income
Interest expense
Foreign exchange gain
Equity in loss (earnings) of affiliates
Increase in accrued bonuses
Increase (decrease) in accrued bonuses for directors
Decrease (increase) in trade receivable
Increase in inventories
Decrease in trade payable
Other, net
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

2,740
2,183
(183)
90
(232)
149
(112)
367
(594)
15
187
60
2,604
(222)
(2,348)
(741)
3,963
150
(364)
(808)
2,941

$

34,141
19,600(1,767)
(300)
(0)
－
(842)
2,733
(525)
(1,900)408(41)(5,250)(1,858)(11,458)
3,183
36,124941(2,775)(8,191)
26,099C a s h Fl ows fro m Inve s t i ng Act i vi t i es :Purchase of tangible fixed assets(2,590)
1,196
(537)
1

Proceeds from sale of tangible fixed assets
Purchase of investments in securities
Proceeds from sale of investments in securities
Increase in loans receivable
Other, net
Net cash used in investing activities－
42(1,888)(3,432)
196
(424)
629
(421)
(23)
(3,475)(21,583)
9,967(4,475)8－
350(15,733)

(148)
1,440
(2,182)
(439)
(9)
0
(496)
(6)
(1,840)(2,688)
10,770(6,057)
(458)
(6)
0
(245)
19
1,335

(1,233)
12,000(18,183)(3,658)(75)
0(4,134)(50)(15,333)

311(285)
11,974

1,142
1,943
9,944

2,592
(2,375)99,783－
11,68987
11,974C a s h Fl ows fro m Fi na nci ng A ct i vi t i e s :Decrease in short-term loans
Proceeds from long-term debt
Repayment of long-term debt
Repayment of lease obligations
Purchase of treasury stock
Proceeds from sales of treasury stock
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of Exchange Rate Changes on Cash andCash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Increase in cash and cash equivalents
resulting from inclusion in consolidation
Cash and Cash Equivalents at End of Year (Note 3)¥

The accompanying notes are an integral part of these statements.

9

¥

$

－
97,408TAMURA CORPORATION AND CONSOLIDATED SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Significant Accounting Policies(a) Basis of presentation of the consolidated financial statements
The accompanying consolidated financial statements of TAMURACORPORATION (the “Company”) and its consolidated subsidiaries (collectively,
the “Companies”) are prepared on the basis of accounting principles generally
accepted in Japan, which are different in certain respects as to the application anddisclosure requirements of International Financial Reporting Standards, and havebeen compiled from the consolidated financial statements prepared by theCompany as required by the Financial Instruments and Exchange Law of Japan.
Certain items presented in the consolidated financial statements submitted to the
Director of Kanto Local Finance Bureau in Japan as required by the Financial
Instruments and Exchange Law of Japan have been reclassified for theconvenience of readers outside Japan.
Amounts in U.S. dollars are included solely for the convenience of readers outside
Japan. The rate of ¥120=U.S. $1, the approximate rate of exchange on March 31,
2015 has been used in translation. The inclusion of such amounts is not intended to
imply that Japanese yen have been or could be readily converted, realized or
settled in U.S. dollars at the above rate or any other rate.
(b) Principles of consolidation and accounting for investments in non-consolidated
subsidiaries and affiliates
The consolidated financial statements include the accounts of the Company and,with the exception of entities which are not material, those of its 32 majority
owned subsidiaries. All significant inter-company accounts and transactions havebeen eliminated on consolidation.
Effective from the year ended March 31, 2015, Tamura Thermal Device (H.K.) Co.
Ltd. and Tamura Kaken (H.K.) Ltd. have been excluded from consolidation
because of their liquidation.
Investments in non-consolidated subsidiaries and affiliates are carried at cost
since their total assets, net sales and the Company’s interests in their net income(loss), or retained earnings, in aggregate, do not have a material effect on the
consolidated financial statements.
The fiscal year end of the foreign consolidated subsidiaries is December 31. The
necessary adjustments for significant transactions between the fiscal year end of
the Company and the fiscal year end of the foreign consolidated subsidiaries, if any,
are made in the preparation of the consolidated financial statements.
(c) Financial instruments(1) Derivatives
All derivatives are stated at fair value, with changes in fair value included in
net profit or loss for the period in which they arise, except for derivatives
designated as “hedging instruments” (see Note 1(c)(3) Hedge accounting below).
10(2) Securities
Securities held by the Companies are classified as follows:
Held-to-maturity securities are stated at amortized cost.
Available-for-sale securities with market values are stated at fair value. Net
unrealized gains and losses on these securities are reported as a separate
component of shareholders’ equity at a net-of-tax amount.
Available-for-sale securities without market values are stated at cost
determined by the moving average method, except as stated in the paragraphbelow.
In cases where the fair value of equity securities issued by non-consolidated
subsidiaries and affiliates, or available-for-sale securities, has declined
significantly and such impairment of the value is not deemed temporary, thesesecurities are written down to their fair value and the resulting losses areincluded in net profit or loss for the period.
(3) Hedge accounting
Deferral hedge accounting is adopted for derivatives which qualify as hedges,
under which unrealized gain or loss is deferred as a component of net assets.
The derivatives designated as hedging instruments by the Companies are
principally forward exchange contracts and interest rate swaps. The underlying
hedged items are trade accounts receivable and trade accounts payable
denominated in foreign currencies, forecast transactions denominated inforeign currencies and interest on long-term bank loans.
The Companies have a policy to utilize the above hedging instruments in orderto reduce the Companies’ exposure to the risk of exchange rate and interest rate
fluctuations. Thus, the Companies’ purchases of the hedging instruments arelimited to, at maximum, the amount of the hedged items.
The Companies evaluate the effectiveness of their hedging activities byreference to the accumulated gains or losses on the hedging instruments andthe underlying hedged items from the commencement of the hedges.
(d) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at the estimated amount of
uncollectible receivables at the balance sheet date.
(e) Inventories
Inventories are principally stated at cost determined by the following methods:
・Finished goods and work-in-process:Electronic Components business, Electronic Chemicals business andInformation Equipment business: Mainly periodic average method(Inventories with lower profitability are written down)
FA Systems business: Specific identification method (Inventories with lower
11

profitability are written down)
・Merchandise and raw materials: Mainly periodic average method (Inventories
with lower profitability are written down)
・Supplies: Mainly last purchase price method (Inventories with lower
profitability are written down)(f) Property, plant and equipment, and depreciation (excluding lease assets)
Property, plant and equipment, including significant capital expenditures andadditions, are stated at cost and are principally depreciated using thedeclining-balance method at rates based on the estimated useful lives of the assets.
Repairs and maintenance expenses are charged to income as incurred.
(g) Accrued bonuses
The Company and its domestic consolidated subsidiaries have provided theestimated amounts of bonus to employees.
(h) Reserve for directors’ bonus
The Company and its domestic consolidated subsidiaries have provided theestimated amounts of directors’ bonus as a reserve for directors’ bonus.
(i) Reserve for retirement benefits
The reserve for retirement benefits represents the estimated present value of
projected benefit obligations in excess of the fair value of the plan assets.
The unrecognized prior service costs are amortized on a straight-line basis over a
period of 1 to 12 years from the year in which they arise. The unrecognizedactuarial differences are amortized on a straight-line basis over a period of 5 to 12
years from the year following the year in which they arise.
(j) Reserve for loss on guarantee
Reserve for loss on guarantee is provided at the estimated amount of future loss inview of the financial position of the guarantee.
(k) Amortization of goodwill
Goodwill is amortized over 10 years.
(l) Income taxes
The income taxes of the Company and its domestic consolidated subsidiaries
consist of corporate income taxes, local inhabitant taxes and enterprise taxes.
Deferred income taxes were determined using the assets and liabilities approach,whereby deferred tax assets and liabilities were recognized in respect of temporary
differences between the tax basis of assets and liabilities and those as reported in
the financial statements.
Deferred tax assets relating to tax loss carryforwards are recorded because theJapanese accounting standard requires that the benefit of tax loss carryforwards
be estimated and recorded as an asset, with deduction of a valuation allowance if it
12

is expected that some portion or all of the deferred tax assets will not be realized.
(m) Foreign currency translation
All monetary assets and liabilities of the Company and its domestic consolidated
subsidiaries denominated in foreign currencies, whether long-term or short-term,
are translated into Japanese yen at the exchange rates prevailing at the balance
sheets dates. The foreign exchange gains and losses from translation arerecognized in the statements of income to the extent that they are not hedged byforward exchange contracts. Revenue and expenses are translated using the
average exchange rates for the respective periods.
The balance sheet accounts of the foreign consolidated subsidiaries are translated
into yen at the rate of exchange in effect at the balance sheet date. Revenue
accounts and expense accounts of the foreign consolidated subsidiaries aretranslated into yen at the average exchange rate for the year. Differences arisingfrom the translation are presented as translation adjustments and minority
interests in the consolidated financial statements.
(n) Net income per share
Basic net income per share of common stock is computed on the basis of theweighted average number of shares of common stock outstanding during therespective years, and diluted net income per share of common stock is computed on
the basis of the weighted average number of shares of common stock outstanding
during the respective year after giving effect to the dilutive potential of shares ofcommon stock to be issued upon the exercise of stock options. Cash dividends per
share represent the dividends declared as applicable to the respective period.
The basis of the calculation of basic net income per share and diluted net income
per share for the years ended March 31, 2015 and 2014 were as follows:
Thousands of
U.S. dollars
2015

Millions of yen
2015
2014
Basic net income per share
Total net income in consolidated statements ofincome

¥

3,106

¥

1,797

$

25,883

Amount not attributable to common stock

¥

－

¥

－

$

－

Total net income attributable to common stock

¥

3,106

¥

1,797

$

25,883

Average number of shares outstanding during theyear [thousands of shares]

82,00682,02482,006

436

383

436

Diluted net income per share
Increase in common stock:
Subscription rights to shares[thousands of shares]132. Additional Information(Changes in Accounting Policies)(Application of Accounting Standard for Retirement Benefits)
Effective from the year ended March 31, 2015, the Company adopted the “AccountingStandard for Retirement Benefits” (Accounting Standards Board of Japan (ASBJ)
Statement No.26 issued on May 17, 2012, hereinafter “Retirement Benefits
Accounting Standard”) and the “Guidance on Accounting Standard for Retirement
Benefits” (ASBJ Guidance No.25 issued on March 26, 2015, hereinafter “Retirement
Benefits Guidance”), specifically the provisions stipulated in the main clause of
Section 35 of the Retirement Benefits Accounting Standard and main clause of
Section 67 of the Retirement Benefits Guidance, and changed the calculation
methods for retirement benefit obligations and service costs.
The straight-line method continues to be used for attributing estimated retirement
benefits to periods, while the method for determining the discount rate was revised
from a method based on an approximation of the employees’ average remaining
service period to a method using a single weighted average discount rate reflecting
the estimated timing and amount of the benefit payment. There was no impact onretained earnings at the beginning of the fiscal year, or on operating income, ordinary
income or income before income taxes and minority interests for the fiscal year ended
March 31, 2015 as a result of this change.
(Unapplied Accounting Standards, etc.)“Revised Accounting Standard for Business Combinations” (ASBJ Statement No.21,
issued September 13, 2013), “Revised Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No.22, issued September 13, 2013), “Revised
Accounting Standard for Business Divestitures” (ASBJ Statement No.7, issued
September 13, 2013), “Revised Accounting Standard for Earnings Per Share” (ASBJ
Statement No.2, issued September 13, 2013), “Revised Guidance on AccountingStandard for Business Combinations and Accounting Standard for Business
Divestitures” (ASBJ Guidance No.10, issued September 13, 2013) and “Revised
Guidance on Accounting Standard for Earnings Per Share” (ASBJ Guidance No.4,
issued September 13, 2013)(a) Overview
Under these revised accounting standards, the accounting treatment for changes
in a parent’s ownership interest in a subsidiary when that parent retains control
over the subsidiary in the additional acquisition of shares in the subsidiary andacquisition related costs were revised. In addition, the presentation method of net
income was amended, the name “minority interests” was changed to“non-controlling interests”, and provisional accounting treatments were revised.
(b) Date of adoption
These revised accounting standards will be adopted from the fiscal year beginningon April 1, 2015.
The Companies will adopt the accounting method related to the finalization ofprovisional accounting treatment for business combinations occurring on or after
April 1, 2015 effective the fiscal year beginning April 1, 2015.
(c) Impact of adoption of accounting standards
The Company is currently evaluating the effects of adopting these revised
accounting standards.

14

3. Supplementary Cash Flow Information
Cash and cash equivalents in the consolidated statements of cash flows are composedof cash in hand, bank deposits able to be withdrawn on demand and short-term
investments with a maturity of 3 months or less and which represent a minor risk offluctuation in value.
At March 31, 2015 and 2014, cash and cash equivalents consisted of the following:

Millions of yen
2015
2014
Cash and bank deposits¥

Time deposits with maturities of over 3 months

Cash and cash equivalents¥

11,816(127)
11,689¥¥12,245(271)
11,974

Thousands of
U.S. dollars
2015
$
$

98,466(1,058)97,408

4. Financial Instruments
Overview(a) Policy for financial instruments
The Companies obtain necessary funding in accordance with their capital
expenditure planning. The Companies obtain medium and long-term operating
funds and funds for the purchase of equipment from banks and utilize highly liquid
financial instruments for fund management purposes.
The Companies also utilize derivative financial instruments to hedge various risks
as described in detail below and do not enter into derivatives for trading or
speculative purposes.
(b) Types of financial instruments and related risk
Operating receivables, such as notes and accounts receivable-trade, are exposed tocredit risk of customers. Operating receivables in foreign currencies are exposed toforeign currency exchange risk. Forward foreign exchange contracts are principallyused to hedge this risk.
Investment securities, the issuers of which have business relationships with theCompanies, are exposed to stock market fluctuation risk.
Maturities of operating debts, such as notes and accounts payable-trade, aremostly within six months. Though operating debts in foreign currencies are
exposed to foreign currency exchange risk, they are limited to the balances ofoperating receivables in the same foreign currency on an ongoing basis.
Loans and lease obligations related to finance leases are used mainly for operating
funds and for equipment purposes, respectively. Maturities of loans and leaseobligations recorded as of the closing date of the fiscal year are within five years.
Almost all long-term loans are variable interest rate loans, and are exposed tointerest rate risk. Interest rate swaps are used for certain loans in order to hedge
this risk.
In order to hedge foreign currency exchange risk associated with operating debts
and receivables in foreign currencies and interest rate risk associated with interest
expense, derivative transactions such as forward foreign exchange contracts andinterest rate swap transactions are used.
Hedging instruments, hedged items, hedging policy and effectiveness of hedge
15transactions are described in “Note 1. Significant Accounting Policies, (c) Financial
instruments, (3) Hedge accounting.”(c) Risk management for financial instruments(1) Monitoring of credit risk (the risk that customers or counterparties may
default)
To screen and reduce unrecoverable risk of operating receivables, the Company
regularly monitors major customers’ credit status and manages the due dates
and balances for each customer in accordance with customer credit
management rules at the sales section in each operating division. Consolidated
subsidiaries also act based on the Company’s customer credit management
rules.
The Companies do not anticipate losses resulting from default of counterparties
to derivative transactions as these are limited to major financial institutions
with sound credit ratings.
(2) Monitoring of market risks (the risks arising from fluctuations in foreignexchange rates, interest rates and others)
The Company and certain consolidated subsidiaries principally use forward
foreign exchange contracts to hedge the foreign currency exchange risk ofoperating debts and receivables in foreign currencies, which are evaluatedmonthly for each currency. The Company uses interest rate swap transactions
to hedge interest rate risk associated with interest expense.
The Company regularly monitors the financial condition of stock issuers andstock market fluctuations and continuously reviews shareholdings considering
the market status and business relationship with the Company.
Derivative transactions entered into by the Company are implemented andcontrolled based on internal rules established by the board of directors. The
rules which stipulate transaction purpose, nature of transaction, name ofcounterparty, transaction item, loss limitation and reporting system of risk
amount. A derivative transaction which exceeds the limitation amount under
the rule requires the approval of the board meeting.
(3) Monitoring of liquidity risk (the risk that the Group may not be able to meet its
obligations on scheduled due dates)
The Company timely formulates and updates the financing plan and controls
liquidity risk by managing ready liquidity on the basis of reports from eachdivision to the accounting department of the head office.
(d) Supplementary explanation of the fair value of financial instruments
Fair value of financial instruments is measured based on the quoted market price,
if available, or a reasonably assessed value if a quoted market price is not available.
Fair value of financial instruments is calculated based on certain valuation
assumptions and the fair value might differ if different factors are used. In
addition, the contract amount of the derivative transactions described below in“Derivative Transactions” does not represent the market risk of the derivativetransactions.
Fair value of financial instruments
The book value on the consolidated balance sheets, fair value and difference as ofMarch 31, 2015 and 2014 were as follows. In addition, financial instruments, for16which it is extremely difficult to measure the fair value, are not included (see “2.
Financial instruments for which the fair value is extremely difficult to measure”).
As of March 31, 2015
Millions of yen
Book value
Cash and bank deposits¥
Notes and accounts receivable-trade
Investment securities
Other securities
Total assets¥

11,816
23,685

Notes and accounts payable-trade
Short-term loans
Current portion of long-term debt
Long-term debt
Lease obligations
Total liabilities¥

11,656
5,906
872
14,914918
34,266

Derivatives (*)
Hedge accounting is not applied ¥Hedge accounting is applied
Total derivatives
¥

－
2
2

¥

1,989
37,490Fair value

Difference

¥

¥

¥
¥

¥

¥
¥

11,816
23,685
1,989
37,49011,656
5,906
879
15,129918
34,488

－
2
2

¥
¥

¥

¥
¥

－
－
－
－
－
－
7
215
(0)
222

－
－
－

As of March 31, 2014
Millions of yen
Book value
Cash and bank deposits¥
Notes and accounts receivable-trade
Investment securities
Held-to-maturity securities
Other securities
Total assets¥

12,245
21,644

Notes and accounts payable-trade
Short-term loans
Current portion of long-term debt
Long-term debt
Lease obligations
Total liabilities¥

12,287
5,527
1,976
14,552928
35,270Derivatives (*)
Hedge accounting is not applied ¥Hedge accounting is applied
Total derivatives
¥

－
(8)
(8)

¥

17

100
1,468
35,457

Fair value

Difference

¥

¥

¥
¥

¥

¥
¥

12,245
21,644100
1,468
35,457
12,287
5,527
1,985
14,820933
35,552

－
(8)
(8)

－
－
(0)

－
¥

(0)

¥

－
－
9
268
5
282

¥

¥
¥

－
－
－

As of March 31, 2015
Thousands of U.S. dollars
Book value
Cash and bank deposits$
98,466
Notes and accounts receivable-trade197,375
Investment securities
Other securities
16,575
Total assets$ 312,416
Notes and accounts payable-trade
Short-term loans
Current portion of long-term debt
Long-term debt
Lease obligations
Total liabilities$

97,13349,217
7,267
124,284
7,650$ 285,551

Derivatives (*)
Hedge accounting is not applied $Hedge accounting is applied
Total derivatives
$

－
16
16

Fair value

Difference$$

98,466
197,375

16,575$ 312,416$$$

97,13349,217
7,325
126,075
7,650$ 287,400

$

$

$

$

－
16
16

$

－
－
－
－
－
－
58
1,791
(0)
1,849

－
－
－

(*) The amount is the net balance of total transactions. Amounts reported
as liabilities are shown in parentheses.

Notes:
1. Methods to determine the fair value of financial instruments and other mattersrelated to securities and derivative transactions
AssetsCash and bank deposits and notes and accounts receivable-trade
The book value approximates fair value because of the short maturity ofthese instruments.
Investment securities
The fair value of investment securities equals quoted market price. The fairvalue of debt securities is measured at the price provided by financial
institutions. Investment securities based on holding purpose are described in“Note 5. Securities”.
Liabilities
Notes and accounts payable-trade and short-term loans
The book value approximates fair value because of the short maturity ofthese instruments.
Current portion of long-term debt and long-term debt
The fair value of current portion of long-term debt and long-term debt isbased on the present value of future cash flows discounted using the current
borrowing rate for similar debt contracts of comparable maturity.
Lease obligations
The fair value of lease obligations is based on the present value of future cash
flows discounted using the current interest rate for similar lease contracts ofcomparable maturity and contract conditions.
Derivative transactions
See “Note 15. Derivative Financial Instruments”.
18

2. Financial instruments for which the fair value is extremely difficult to measureat March 31, 2015 and 2014 were as follows:

Millions of yen
2015
2014
Available-for-sale securities without market
quotations:
Unlisted securities
¥
Total
¥

2,029
2,029

¥
¥

735
735

Thousands of
U.S. dollars
2015

$
$

16,90816,908Because no quoted market price is available and it is extremely difficult todetermine the fair value, the above financial instruments are not included in thepreceding table.

193. The aggregate maturities of monetary claims and held-to-maturity securities at
March 31, 2015 and 2014 were as follows:
As of March 31, 2015
Millions of yen
Due within
Due after 1 year
through 5 years
1 yearCash and bank deposits¥
11,816¥－
Notes and accounts receivable-trade
23,685－
Total¥
35,501¥－

As of March 31, 2014
Millions of yen
Due within
Due after 1 year
through 5 years
1 yearCash and bank deposits¥
12,245¥－
Notes and accounts receivable-trade21,644－
Investment securities
Held-to-maturity securities
Bonds
100
－
Total
¥
33,989¥－As of March 31, 2015
Thousands of U.S. dollars
Due within
Due after 1 year
through 5 years
1 yearCash and bank deposits$
98,466$－
Notes and accounts receivable-trade197,375－
Total$
295,841$－

4. The redemption schedules for long-term debt and lease obligations weredisclosed in “Note 7. Short-term Loans and Long-term Debt”.

20

5. Securities(a) At March 31, 2015 and 2014, securities consisted of the following:Thousands of
U.S. dollars
2015

Millions of yen
2014
2015
Held-to-maturity securities
Book value
Fair value
Unrealized gain (loss)

¥
¥

－
－
－

¥

100
100

$

¥

(0)

$

Thousands of
U.S. dollars
2015

Millions of yen
2015
2014
Available-for-sale securities for which market
quotations are available
Acquisition cost
Book value
Unrealized gain (loss)

¥
¥

1,989
1,339
(650)

¥
¥

－
－
－

1,226
1,467
241

$
$

16,575
11,158(5,417)(b) Sales of securities classified as other securities and the aggregate gain and loss forthe years ended March 31, 2015 and 2014 were as follows:
Thousands of
U.S. dollars
2015

Millions of yen
2015
2014
Sales proceeds
Available-for-sale securities
Aggregate gain
Available-for-sale securities
Aggregate loss
Available-for-sale securities

¥

1

¥

629

$

8

¥

0

¥

232

$

－

¥

－

¥

－

$

－

(c) Impairment of investment securities

Millions of yen
2015
2014
Equity securities issued by subsidiaries
Total

¥
¥

21

－
－

¥
¥

149
149

Thousands of
U.S. dollars
2015
$
$

－
－

6. Inventories
At March 31, 2015 and 2014, inventories consisted of the following:Thousands of
U.S. dollars
2015

Millions of yen
2015
2014
Merchandise
Finished goods
Work in process
Raw materials and supplies
Total

¥

¥

4,360
1,399
2,310
6,343
14,412

¥

¥

3,782
1,377
1,853
6,312
13,324$$36,333
11,65819,25052,859120,100

7. Short-term Loans and Long-term Debt
Short-term loans at March 31, 2015 and 2014 were principally bank overdrafts andshort-term notes bearing interest at annual average interest rates of 1.18% and1.36%, respectively.
At March 31, 2015 and 2014, long-term debt consisted of the following:Thousands of
U.S. dollars
2015

Millions of yen
2015
2014
Long-term loans, principally from banks (*)
Lease obligations
Less: current portion - Long-term loans
Less: current portion - Lease obligations
Total

¥

¥

15,787918
16,705(873)(371)
15,461¥¥

16,528927
17,455(1,976)(364)
15,115$$131,558
7,650
139,208(7,275)(3,092)
128,841(*) At March 31, 2015 and 2014, long-term loans and lease obligations consisted of thefollowing:Thousands of
U.S. dollars
2015

Millions of yen
2015
2014
Long-term loans, at an annual average rate of 1.44%(2014 - 1.53%)¥

14,914¥

14,552$

124,283

Lease obligations, at an annual average rate of
2.24% (2014 - 2.52%)

547

563

4,558

Current portion- Long-term loans, at an annual
average rate of 1.25% (2014 - 1.87%)

872

1,976

7,267

Current portion- Lease obligations, at an annual
average rate of 2.47% (2014 - 2.53%)
¥

22

371
16,704¥364
17,455$

3,092
139,200

The aggregate annual maturities of long-term debt and lease obligations (excluding
the current portion) at March 31, 2015 were as follows:
Millions of yen
Long-term
Lease
loans
obligations
Year ending March 31,
2017
2018
2019
2020

¥

5,492
3,457
5,881
82

¥

297
143
96
9

Thousands of U.S. dollars
Long-term
Lease
loans
obligations$

45,76628,80849,008
683

$

2,475
1,191
800
75

8. Retirement Benefit Plan(a) Outline of employee retirement benefits
The Company and certain consolidated subsidiaries have defined benefit
retirement plans covering substantially all employees. Benefits under the plans
are covered by two plans. One is governed by the regulations of the Defined Benefit
Corporate Pension Law and the other is a severance indemnity plan of theCompanies.
KOHA CO., LTD. (KOHA) also has defined benefit retirement plans covering
substantially all employees. Benefits under the plans are covered by three plans.
One is an employees’ pension fund, the second is governed by the regulations of theDefined Benefit Corporate Pension Law, and the third is a severance indemnity
plan of KOHA.
Certain foreign consolidated subsidiaries have defined benefit pension plans anddefined benefit lump-sum payment plans. The Company also has employee
retirement benefit trusts.
During the year ended March 31, 2011, the Company and some of its domestic
consolidated subsidiaries have changed a part of their retirement benefit plansfrom defined benefit plans to defined contribution plans.
Certain foreign consolidated subsidiaries have introduced their own defined
contribution plans.
(b) Contributory defined benefit retirement plan
(1) The changes in the defined benefit obligation and fair value of plan assets
except plans for which the simplified method is applied for calculating
retirement benefit obligations adopted by certain consolidated subsidiaries,
during the fiscal years ended March 31, 2015 and 2014 were as follows:23

Millions of yen
2015
2014

Change in benefit obligations:Benefit obligation, beginning of year
Service cost
Interest cost
Actuarial loss (gain)
Benefit payments
Effects of changes in foreignexchange rates
Other
Benefit obligation, end of year¥¥

Change in fair value of plan assets:
Plan assets, beginning of year
Expected return on plan assets
Actuarial gain
Employer contributions
Benefit payments
Effects of changes in foreignexchange rates
Plan assets, end of year¥¥

10,695
383
217
666
(429)
126
(0)
11,658
8,224
163
1,031
777
(366)
87
9,916

¥

¥
¥

¥

10,510
397
206
(29)
(721)
381
(49)
10,695
7,198
179
507
729
(629)
240
8,224

Thousands of
U.S. dollars

2015
$

$
$

$

89,125
3,191
1,808
5,550
(3,575)1,050(0)97,14968,533
1,358
8,592
6,475
(3,050)725
82,633(2) Changes in the defined benefit obligation and fair value of plan assets
estimated by the simplified method for calculating retirement benefit
obligations

Millions of yen
2015
2014

Change in net defined benefit liability
Net defined benefit liability,
beginning of year
Service cost
Benefit payments
Benefit obligation, end of year

Thousands of
U.S. dollars

2015

¥

107
16
(5)

¥

105
16
(14)

$

¥

118

¥

107

$

(3) Reconciliation of the projected benefit obligation and plan assets with net
defined benefit liability and asset reflected on the consolidated balance sheets

24

891
133
(41)
983

Thousands of
U.S. dollars
2015

Millions of yen
2015
2014

Funded projected benefit obligation
Plan assets¥¥

Unfunded projected benefit obligation
Net of liability and asset reported on
the consolidated balance sheets

Net defined benefit liability
Net defined benefit asset
Net of liability and asset reported on
the consolidated balance sheets

11,273(9,916)
1,357
504

¥

10,362(8,224)
2,138
441

¥

$

93,941(82,633)
11,308
4,200

$

¥

1,861

¥

2,579

$

15,508

¥

2,765
(904)

¥

2,579

$

23,042(7,533)

1,861

¥

$

15,509¥－2,579(4) Components of pension expense
Thousands ofMillions of yen
2015
2014
Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Amortization of actuarial differences
Other

Net pension expense

¥

¥

400
217
(162)
(73)
233

5
620

U.S. dollars
2015

¥

413
206
(179)
(153)
424
7

$

3,333
1,808
(1,350)
(608)
1,942
41

¥

718

$

5,166

(5) Remeasurements of defined benefit plans
The components of remeasurements of defined benefit plans (before tax effect)in accumulated other comprehensive income and other comprehensive income
were as follows.

25

Thousands ofMillions of yen
2015
2014
Prior service cost
Net actuarial difference
Total

¥

73

¥

¥

(597)
(524)

¥

U.S. dollars
2015
－
－
－

Millions of yen
2015
2014

Unrecognized prior service cost
Unrecognized actuarial difference
Total

¥

(224)

¥

826
602

$
$

608
(4,975)(4,367)

Thousands of
U.S. dollars

2015

¥

(296)

$

¥

1,423
1,127

$

(1,867)
6,883
5,016

(6) Major components of plan assets
i. Major components of plan assets
The fair values of plan assets, by major category, as a percentage of total plan
assets as of March 31, 2015 and 2014 were as follows.
2015
Bonds
Equity securities
Life insurance company
general accounts
Cash and cash equivalents
Other

2014

35 %
47

33 %
43

11
2
5
100 %

15
3
6
100 %

*Of total plan assets, 23% and 21% were included in a retirement benefit
trust (stocks, cash and bank deposits) established for the corporate pension
plan as of March 31, 2015 and 2014, respectively.
ii. Method for expected long-term rate of return on pension plan
The Companies determine the expected long-term rate of return on pension
plan assets based on the current and expected asset allocation, as well as thecurrent and expected long-term rate of return from various assets whichconstitute the plan assets.
(7) Assumptions used in actuarial calculations
The assumptions used in accounting for the above plans for the years ended
March 31, 2015 and 2014 were as follows.

26

2015

2014

Discount rates

1.0 ~ 5.3 %1.0 ~ 5.3 %Expected rate of long-term
return on plan assets

1.1 ~ 2.9

1.8 ~ 3.4

Expected rates of salary

3.9 ~ 4.4

3.9 ~ 4.4(c) Defined contribution plans
The required contributions by the Companies were ¥182 million ($1,516 thousand)and ¥184 million as of March 31, 2015 and 2014, respectively.

9. Other Comprehensive Income
Reclassification adjustments and the related tax effects for components of othercomprehensive income for the years ended March 31, 2015 and 2014 were as follows:
Thousands of
U.S. dollars
2015

Millions of yen
2015
2014

Unrealized gain on securities
Amount arising during the period
Reclassification adjustments for gains andlosses included in net income
Before tax effectTax effectUnrealized gain on securities
Deferred loss on hedges
Amount arising during the period
Translation adjustments
Amount arising during the period
Reclassification adjustments for gains andlosses included in net income
Before tax effectTax effectTranslation adjustments
Remeasurements of defined benefit plans
Amount arising during the period
Reclassification adjustments for gains andlosses included in net income
Before tax effectTax effectPension liability adjustments

¥

408

¥

374

$

3,400

0
408
(100)
308

(232)
142
(4)
138

0
3,400
(833)
2,567

10

(7)

83

1,956

3,077

16,300

260
2,216

－
3,077

2,167
18,467

－
2,216

－
3,077

－
18,467

362

－

3,016

162
524
(3)
521

－
－
－
－

1,350
4,366
(25)
4,341

Share of other comprehensive income ofaffiliates accounted for using equity method
Amount arising during the period

144

Total amount of other comprehensive income

27

¥

3,199

9
¥

3,217

1,200
$

26,658

10. Treasury Stock
The Company had 775 thousand shares and 758 thousand shares of treasury stock asof March 31, 2015 and 2014, respectively, in order to prepare for the exercise of stock
options granted to certain directors and executive officers, subject to the approval of
the General Meeting of Shareholders.
The amount of treasury stock is stated at cost and is presented as a separate
component of shareholders’ equity.

11. Selling, General and Administrative Expenses
For the years ended March 31, 2015 and 2014, the significant components of selling,
general and administrative expenses were as follows:

Millions of yen
2015
2014
Salaries
Pension expense
Research and development expense
Freight
Reserve for directors’ bonuses
Accrued bonuses

¥

6,032
563
1,179
1,980
67
671

¥

5,974
679
1,043
1,934
69
649

Thousands of
U.S. dollars
2015$

50,266
4,691
9,825
16,500558
5,591

12. Research and Development Expenses
Total research and development expenses included in manufacturing costs andselling, general and administrative expenses amounted to ¥1,233 million ($10,275
thousand) and ¥1,096 million for the years ended March 31, 2015 and 2014,
respectively.

13. Income Taxes
At March 31, 2015 and 2014, the significant components of deferred tax assets andliabilities were as follows:28

Thousands of
U.S. dollars
2015

Millions of yen
2015
2014
Deferred tax assets:
Accrued bonuses¥

340

Accrued enterprise taxes

¥

361

30

$

2,833

54

250

Net defined benefit liability

1,124

1,304

9,367

Tax loss carryforwards

3,031

3,199

25,258Loss on valuation of investment securities

364

333

3,033

Loss on impairment of fixed assets

94

99

783

Other

593

441

4,942

Total
Valuation allowance
Total deferred tax assets

5,576

5,791

46,466(4,523)(4,720)(37,691)

¥

1,053

¥

1,071

$

8,775

¥

172

¥

72

$

1,433

Deferred tax liabilities:
Unrealized gain on securities
Total deferred tax liabilities

172

Net deferred tax assets

¥

881

72
¥

999

1,433
$

7,342

The reconciliation between the statutory tax rate and the effective tax rate for theyears ended March 31, 2015 and 2014 was as follows:

Statutory tax rate
Effect of:

2015

2014

35.0 %

38.0 %

Non-deductible expenses
Non-taxable items
Inhabitant tax on per capita basis
Amortization of goodwill

1.8
(1.7)
0.8
2.9

10.6
(10.9)
1.2
3.6

Equity in earnings (losses) ofaffiliated companies

(3.9)

0.5

Tax rate difference applied forforeign subsidiaries
Change in valuation allowance
Foreign income taxes(13.9)(1.1)
3.8(16.7)
2.1
5.5

1.6
(1.1)
24.2 %

2.5(2.4)
34.0 %

Adjustment on deferred tax assets
due to change in income tax rate
Others
Effective tax rate

(Revisions in the Amounts of Deferred Tax Assets and liabilities as a result of a
Change in the Corporate Tax Rate)
The “Act for Partial Amendment of the Income Tax Act, etc.” (Act No.9 of 2015) and“Act of Partial Amendment of the Income Tax Act, etc.” (Act No.2 of 2015) were
promulgated on March 31, 2015 and, as a result, the rates of income tax and others
will be reduced effective fiscal years beginning on or after April 1, 2015.
As a result, the effective statutory tax rate used to measure the Company’s deferred29

tax assets and liabilities was changed from 35.0% to 33.0% and 32.0% for the
temporary differences expected to be realized or settled during the fiscal year
beginning April 1, 2015 and from the fiscal year beginning April 1, 2016, respectively.
The effect of the announced reduction of the statutory effective tax rate was todecrease deferred tax assets after offsetting deferred tax liabilities andremeasurements of defined benefit plans by ¥47 million ($391 thousand) and ¥0
million ($0 thousand), respectively, and increase deferred income taxes, unrealized
gain on securities and deferred gain on hedges by ¥47 million ($391 thousand), ¥16
million ($133 thousand) and ¥0 million ($0 thousand), respectively, as of and for theyear ended March 31, 2015.

14. Leases
Finance lease transactions (lessee)(a) Finance lease transactions with ownership transfer
Lease assets;
・Property, plant and equipment: Machinery and equipment in connection with
Electronic Components business・Intangible fixed assets: Software
Lease assets are depreciated using the same method as fixed assets.
(b) Finance lease transactions without ownership transfer
Lease assets;
・Property, plant and equipment: Machinery and equipment in connection with
Electronic Components business, research and development facilities, andtools and fixtures in connection with IT
・Intangible fixed assets: Software
Lease assets are depreciated by the straight-line method over the respective
lease terms, assuming no residual value.
The accounting treatment for lease transactions which do not transfer ownership of
the assets to the lessee at the end of the lease term which took place on or before
March 31, 2008 remains the same treatment as operating lease transactions.
Pro forma information regarding leased assets, such as acquisition cost andaccumulated depreciation under finance leases which do not transfer ownership ofthe leased assets to the lessee which took place on or before March 31, 2008 for theyears ended March 31, 2015 and 2014 were as follows:

Millions of yen
2014
2015
Structures, machinery and equipment,
and software
Cost¥
Accumulated depreciation /amortization
Net amount¥30

Thousands of
U.S. dollars
2015

－

¥

43

$

－

－
－

¥

42
1

$

－
－

The future minimum lease payments under such lease contracts as of March 31,
2015 and 2014 were as follows:

Thousands of
U.S. dollars
2015

Millions of yen
2015
2014
Due within one year
Due after one year

¥
¥

－
－
－

¥

1

$

－
－
－

－

¥

1

$

The total lease expense under finance leases for the years ended March 31, 2015 and2014 were as follows:

Millions of yen
2015
2014
Lease rental expense
Depreciation cost
Interest expense

¥

1
1
0

¥

34
30
1

Thousands of
U.S. dollars
2015
$

8
8
0

Operating lease transactions (lessee)
The future payments under non-cancelable operating leases as of March 31, 2015
and 2014 were as follows:

Millions of yen
2015
2014
Due within one year
Due after one year

¥

228

¥

645

¥

873

¥

184
495
679

Thousands of
U.S. dollars
2015
$

1,900
5,375

$

7,275

15. Derivative Financial Instruments
The Companies do not hold or issue derivatives for trading purposes and it is theCompanies’ policy to use derivatives only for the purpose of reducing exposure tomarket risks and financing costs in accordance with internal policies.
The Companies do not anticipate any losses resulting from default of thecounterparties as these are limited to major financial institutions with sound credit
ratings.
As of March 31, 2015 and 2014, there were no derivative transactions outstanding forwhich hedge accounting has not been applied.
The notional amounts and the fair value of the derivative instruments outstanding asof March 31, 2015 and 2014, for which hedge accounting has been applied aresummarized as follows:31

(a) Foreign currency-related transactions
As of March 31, 2015
Millions of yen
Derivativetransactions

Contract
amountMain hedged
items

Portion maturing
over one year

Fair value¥¥

Foreign exchange allocation method:
Forward foreignexchange contracts:
Sell
USD
EUR

Accounts
receivabletrade

¥

2,964

－

[*1]

92

－

[*1]

559

－

[*1]

Contracts
outstanding

19

－

(0)

Contracts
outstanding

143

－

3

Buy
USD

Accounts
payable-trade

Deferral hedge accounting:
Forward foreignexchange contracts:
Sell
USD
Buy
USD
Total

¥

32

3,777

¥

－

¥

3

As of March 31, 2014
Millions of yen
Derivativetransactions

Contract
amountMain hedged
items

Portion maturing
over one year

Fair value¥¥

Foreign exchange allocation method:
Forward foreignexchange contracts:
Sell
USD
EUR

Accounts
receivabletrade

¥

2,679

－

[*1]

91

－

[*1]

484

－

[*1]

Contracts
outstanding

24

－

(0)

Contracts
outstanding

1,549

－

(8)

Buy
USD

Accounts
payable-trade

Deferral hedge accounting:
Forward foreignexchange contracts:
Sell
USD
Buy
USD
Total

¥

33

4,827

¥

－

¥

(8)

Derivativetransactions

As of March 31, 2015
Thousands of U.S. dollars
Contract
Portion maturing
Fair value
over one year
amountMain hedged
items

Foreign exchange allocation method:
Forward foreignexchange contracts:
Sell
USD
EUR

Accounts
receivabletrade$

24,701

$

－

$

[*1]

766

－

[*1]

4,658

－

[*1]

158

－

(0)

1,192

－

25

Buy
USD

Accounts
payable-trade

Deferral hedge accounting:
Forward foreignexchange contracts:
Sell
Contracts
USD
outstanding
Buy
USD

Contracts
outstanding

Total

$

31,475

$

－

$

25

[*1] The fair value is included in the fair value of the accounts receivable-trade and theaccounts payable-trade since the forward foreign exchange contracts are accounted
for as part of accounts receivable and payable under the allocation method forhedge accounting.
[*2] Price provided by financial institutions.

(b) Interest rate-related transactions
As of March 31, 2015
Millions of yen
Derivativetransactions
Interest-rate swaps:
Pay fixed andreceive variable

Contract
amountMain hedged
itemsLong-term
debt

¥

34

12,483

Portion maturing
over one year

Fair value¥¥

11,862[*]

As of March 31, 2014
Millions of yen
Derivativetransactions
Interest-rate swaps:
Pay fixed andreceive variable

Derivativetransactions
Interest-rate swaps:
Pay fixed andreceive variable

Contract
amountMain hedged
itemsLong-term
debt¥

13,193

Portion maturing
over one year

Fair value¥¥

11,429[*]As of March 31, 2015
Thousands of U.S. dollars
Contract
Portion maturing
Fair value
over one year
amountMain hedged
itemsLong-term
debt$

104,025$

98,850$[*][*] The fair value is included in the fair value of long-term debt since the short-cut
method is applied.

16. Contingent Liabilities
The Company is contingently liable as guarantors of borrowings for a
non-consolidated subsidiary (TE Energy Co., Ltd.) in amount of ¥300 million ($2,500
thousand) at March 31, 2015.

17. Loan Commitment
In order to achieve more efficient and flexible financing, the Company has concluded
loan commitment contracts with five financial institutions.
The status of these contracts as of March 31, 2015 and 2014 is summarized asfollows:

Millions of yen
2015
2014
Maximum overdraft amount and total
amount of loan commitment
Executed loan amounts
Net amount

¥
¥

2,500
－
2,500

¥

2,500

Thousands of
U.S. dollars
2015
$

－

¥

2,500

$

20,833－
20,83318. Loss on Impairment of Fixed Assets
The Companies have not recognized impairment losses for the years ended March 31,
2015 and 2014, respectively.
35

19. Stock Options(a) Stock options expenses recognized in selling, general and administrative
expenses for the years ended March 31, 2015 and 2014

Millions of yen
2015
2014
Selling, general and administrative
expenses¥(b) Outline of stock options and changes
a. Outline of stock options

36

16

¥

12

Thousands of
U.S. dollars
2015
$

133

TAMURA CORPORATION TAMURA CORPORATION TAMURA CORPORATIONThe 2nd Stock Option Plan The 3rd Stock Option Plan The 4th Stock Option Plan
June 29, 2005
June 29, 2006
June 28, 2007
Directors 6
Directors 6
Directors 6
Title and number of grantees (Exclude outside director) (Exclude outside director) (Exclude outside director)
Executive officers 9
Executive officers 6
Executive officers 7
Number of stock options
Common shares 35,000
Common shares 28,000
Common shares 30,000
Grant dateJuly 1, 2005
July 1, 2006
July 1, 2007
Retirement of director
Retirement of director
Retirement of director
Condition for vestingand executive officer
and executive officer
and executive officer
Requisite service period
N.A.
N.A.
N.A.
For the period of five
July 1, 2006 to
July 1, 2007 to
years from the next day of
Exercise period
retirement of director andJune 30, 2036
June 30, 2037
executive officer
Date of resolution

TAMURA CORPORATION TAMURA CORPORATION TAMURA CORPORATION
The 5th Stock Option Plan The 6th Stock Option Plan The 7th Stock Option Plan
June 27, 2008
June 26, 2009
June 29, 2010
Directors 6
Directors 6
Directors 6
Title and number of grantees (Exclude outside director) (Exclude outside director) (Exclude outside director)
Executive officers 6
Executive officers 4
Executive officers 6
Number of stock options
Common shares 42,000
Common shares 77,000
Common shares 52,000
Grant dateJuly 1, 2008
July 1, 2009
July 1, 2010Retirement of director
Retirement of director
Retirement of director
Condition for vestingand executive officer
and executive officer
and executive officer
Requisite service period
N.A.
N.A.
N.A.
July 1, 2008 to
July 1, 2009 to
July 1, 2010 to
Exercise period
June 30, 2038
June 30, 2039
June 30, 2040
Date of resolution

TAMURA CORPORATION TAMURA CORPORATION TAMURA CORPORATION
The 8th Stock Option Plan The 9th Stock Option Plan The 10th Stock Option Plan
June 29, 2011
June 28, 2012
June 27, 2013
Directors 6
Directors 6
Directors 6
Title and number of grantees (Exclude outside director) (Exclude outside director) (Exclude outside director)
Executive officers 6
Executive officers 6
Executive officers 6
Number of stock options
Common shares 65,000
Common shares 72,000
Common shares 78,000
Grant dateJuly 1, 2011
July 1, 2012
July 1, 2013
Retirement of director
Retirement of director
Retirement of director
Condition for vestingand executive officer
and executive officer
and executive officer
Requisite service period
N.A.
N.A.
N.A.
July 1, 2011 toJuly 1, 2012 toJuly 1, 2013 to
Exercise period
June 30, 2041
June 30, 2042
June 30, 2043
Date of resolution

TAMURA CORPORATION
Date of resolution

The 11th Stock Option Plan

June 26, 2014
Directors 6
Title and number of grantees (Exclude outside director)
Executive officers 6
Number of stock options
Common shares 52,000
Grant dateJuly 1, 2014
Retirement of director
Condition for vestingand executive officer
Requisite service period
N.A.
July 1, 2014 to
Exercise period
June 30, 2044

The Company's stock option plans were designed as stock compensation to directors andexecutive officers after the directors’ retirement benefit plan was abolished in June 2005.

37

b. Stock options granted and changes
The movement in stock options for the year ended Mach 31, 2015 is presented
after conversion to number of shares.

38

Number of stock options
Date of resolution
Before vested
Previous fiscal year-end
GrantedForfeited
VestedOutstanding
After vested
Previous fiscal year-end
VestedExercised
Forfeited
Exercisable
Date of resolution
Before vested
Previous fiscal year-end
GrantedForfeited
VestedOutstanding
After vested
Previous fiscal year-end
VestedExercised
Forfeited
Exercisable
Date of resolution
Before vested
Previous fiscal year-end
GrantedForfeited
VestedOutstanding
After vested
Previous fiscal year-end
VestedExercised
Forfeited
Exercisable(Shares)
TAMURA CORPORATION TAMURA CORPORATION TAMURA CORPORATIONThe 2nd Stock Option Plan The 3rd Stock Option Plan The 4th Stock Option Plan
June 29, 2005
June 29, 2006
June 28, 2007

13,000－－－13,00013,000－－－13,00016,000－－－16,000

2,000
－
－
－
2,000

2,000
－
－
－
2,000

2,000
－
－
－
2,000

TAMURA CORPORATION TAMURA CORPORATION TAMURA CORPORATION
The 5th Stock Option Plan
The 6th Stock Option Plan The 7th Stock Option Plan
June 27, 2008
June 26, 2009
June 29, 2010

23,000－－－23,00059,000－－－59,00042,000－－－42,000

3,000
－
－
－
3,000

8,000
－
－
－
8,000

7,000
－
3,000
－
4,000

TAMURA CORPORATION TAMURA CORPORATION TAMURA CORPORATION
The 8th Stock Option Plan The 9th Stock Option Plan The 10th Stock Option Plan
June 29, 2011
June 28, 2012
June 27, 2013

51,000－－－51,00065,000－－－65,00078,000－－－78,00012,000－2,000－
10,000

7,000
－
－
－
7,000

－
－
－
－
－

TAMURA CORPORATION
Date of resolution

The 11th Stock Option Plan

June 26, 2014
Before vested
Previous fiscal year-end
GrantedForfeited
VestedOutstanding
After vested
Previous fiscal year-end
VestedExercised
Forfeited
Exercisable－
52,000－－52,000
－
－
－
－
－

39

Price information(Yen)

Date of resolution

TAMURA CORPORATION TAMURA CORPORATION TAMURA CORPORATIONThe 2nd Stock Option Plan The 3rd Stock Option Plan The 4th Stock Option Plan
June 29, 2005
June 29, 2006
June 28, 2007

1－－

Exercise price
Average stock price at exercise

Fair value at the grant date
Date of resolution

1
－
653

TAMURA CORPORATION TAMURA CORPORATION TAMURA CORPORATION
The 5th Stock Option Plan
The 6th Stock Option Plan The 7th Stock Option Plan
June 27, 2008
June 26, 2009
June 29, 2010

1
－
426

Exercise price
Average stock price at exercise

Fair value at the grant date
Date of resolution

1
－
464

1
－
348

1
355
203

TAMURA CORPORATION TAMURA CORPORATION TAMURA CORPORATION
The 8th Stock Option Plan The 9th Stock Option Plan The 10th Stock Option Plan
June 29, 2011
June 28, 2012
June 27, 2013

Average stock price at exercise

1355

Fair value at the grant date

203

Exercise price

1
－
151

1
－
163

TAMURA CORPORATION
Date of resolution

The 11th Stock Option Plan

June 26, 2014
Exercise price
Average stock price at exercise

Fair value at the grant date

1
－
321

(c) Valuation technique used to determine the fair value of stock options
TAMURA CORPORATION The 11th plan stock options granted in the fiscal year
were valued using the following valuation technique.
Valuation technique: Black-Scholes option-pricing model
Principal assumptions used in the option-pricing model:
TAMURA CORPORATION
Date of resolution

The 11th Stock Option Plan

June 26, 2014
Expected volatility(*1)
Average expected life(*2)
Expected dividends(*3)
Risk-free interest rate(*4)

42.93%
10 years
6 yen per share
0.56%(*1) Calculated based on the actual stock prices from April 2003 to June 2014.
(*2) The average expected life could not be estimated rationally as data wasinsufficient. Therefore, it was estimated assuming that the options were
exercised at the 1/3 point of the exercise period.
(*3) Calculated based on actual dividends on common stock for the fiscal year
ended March 31, 2014, the dividend policy of the Company and prior years’
actual dividends.
(*4) Japanese government bond yield corresponding to the average expected life.
(d) Method of estimating number of stock options forfeited40

Only the actual number of forfeited stock options is reflected because it is difficult
to rationally estimate the actual number of stock options that will be forfeited in
the future.

20. Segment Information(a) Overview of reportable segments
The reportable segments of the Companies are components for which separate
financial information is available and which are reviewed regularly by the boardof directors in deciding resource allocation and in assessing performance.
Each business division develops comprehensive business strategies for products
in Japan and overseas and conducts business activities.
Accordingly, the Company consists of three reportable segments, identified by the
products and based on the business divisions, which are classified as the“Electronic Components” business, the “Electronic Chemicals / FA Systems”
business and the “Information Equipment” business.
The “Electronic Components” business manufactures transformers, AC adaptors,
switching supply units, piezoceramic products and LED products. The “Electronic
Chemicals / FA Systems” business manufactures flux, solder paste, solder resist
and automatic soldering equipment. The “Information Equipment” business
manufactures network equipment, broadband equipment, wireless microphone
and information equipment.
(b) Calculation method for net sales, segment income or loss, and other items of thereportable segments
The accounting policies of the segments are substantially the same as thosedescribed in “Basis of Presentation of Consolidated Financial Statements”.
Segment income is based on operating income.
Inter-segment sales are recorded at the same prices used in transactions withthird parties.

41

(c) Information on net sales, income or loss, assets and liabilities, and other items by
the reportable segment
Year ended March 31, 2015
Millions of yen
Reportable segments
Electronic
Electronic Chemicals / Information
Components FA Systems Equipment
Net Sales
SalesCustomers
Inter-segment

Other
(*1)

Subtotal

Total

Adjustments(*2)

Consoli－
dated
(*3)

¥

57,739057,739¥24,36574
24,439

¥

4,123
60
4,183

¥

86,227
134
86,361

¥

21
668
689

¥

86,248802
87,050

¥

－
(802)
(802)

¥

86,248－86,248

¥

1,487

¥

2,940

¥

379

¥

4,806

¥

(43)

¥

4,763

¥

(734)

¥

4,029

¥
Amortization of
goodwill¥
Increase in tangible
and intangible
fixed assets
¥

1,299

¥

910

¥

88

¥

2,297

¥

39

¥

2,336

¥

16

¥

2,352

117

¥

0

¥

－

¥

117

¥

－

¥

117

¥

－

¥

117

1,764

¥

1,154

¥

70

¥

2,988

¥

16

¥

3,004

¥

0

¥

3,004

Segment
income (loss)
Other items
Depreciation andamortization

Year ended March 31, 2014
Millions of yen

Components

Reportable segments
Electronic
Chemicals / Information
FA Systems Equipment¥

55,61359
55,672¥

22,61489
22,703

¥

2,941
－
2,941

¥

81,168148
81,316

¥

8
663
671

¥

81,176811
81,987

¥

－
(811)
(811)

¥

81,176－
81,176

¥

516

¥

2,672

¥

(33)

¥

3,155

¥

(12)

¥

3,143

¥

(734)

¥

2,409

¥
Amortization of
goodwill¥
Increase in tangible
and intangible
fixed assets
¥

1,283

¥

750

¥

106

¥

2,139

¥

34

¥

2,173

¥

10

¥

2,183

99

¥

0

¥

－

¥

99

¥

－

¥

99

¥

－

¥

99

1,175

¥

2,382

¥

47

¥

3,604

¥

97

¥

3,701

¥

7

¥

3,708

Electronic
Net Sales
SalesCustomers
Inter-segment
Segment
income (loss)
Other items
Depreciation andamortization

Other
(*1)

Subtotal

42

Total

Adjustments(*2)

Consoli－
dated
(*3)

Year ended March 31, 2015
Thousands of U.S. dollars
Reportable segments
Electronic
Electronic Chemicals / Information
Components FA Systems Equipment
Net Sales
SalesCustomers
Inter-segment

Other
(*1)

Subtotal

Total

Adjustments(*2)

Consoli－
dated
(*3)

$ 481,158
0481,158$ 203,042
617
203,659$

34,358500
34,858$718,558
1,117
719,675

$

175
5,566
5,741

$

718,733
6,683
725,416$－(6,683)(6,683)$

718,733－
718,733$

12,392$

24,500

$

3,158

$

40,050

$

(358)

$

39,692$(6,117)$33,575$
Amortization of
goodwill$
Increase in tangible
and intangible
fixed assets$

10,825

$

7,583

$

733

$

19,141$

325$

19,466$134$

19,600

975

$

0

$

－

$

975

$

－

$

975

$

－

$

975

14,700

$

9,617

$

583

$

24,900$133$

25,033$－$25,033

Segment
income (loss)
Other items
Depreciation andamortization(*1) “Other” includes businesses not included in the reportable segments, which
includes the transportation, warehouse businesses in the fiscal year ended
March 31, 2015.
(*2) Adjustments for segment income (loss) were as follows:

Millions of yen
2015
2014
Inter-segement eliminations
Corporate costs (*)
Total

¥
¥

54
(788)
(734)

¥
¥

40
(774)
(734)

Thousands of
U.S. dollars
2015
$
$

450
(6,567)(6,117)* Corporate costs are mainly future R&D expenses at the head office, which are notallocated to the reportable segments.

(*3) Segment income is adjusted with operating income in the consolidated
statements of income.
(*4) Adjustments for “Depreciation and amortization” and “Increase in tangible andintangible fixed assets” are mainly capital investment and depreciation
relating to future R&D assets at the head office, which are not allocated to thereportable segments.
(*5) Assets of the Company are not allocated to the business segments.

43

(d) Related information(1) Information by product and service
Year ended March 31, 2015
Millions of yen
Electronic
Electronic Chemicals / Information
Components FA Systems Equipment
Other
SalesCustomers¥

57,739¥24,365¥4,123

Consolidated

21¥

Year ended March 31, 2014
Millions of yen
Electronic
Electronic Chemicals / Information
Components FA Systems Equipment
Other
SalesCustomers¥

55,613¥

22,614¥

2,941

Year ended March 31, 2015
Thousands of U.S. dollars
Electronic
Electronic Chemicals / Information
Components FA Systems Equipment
Other
SalesCustomers$ 481,158$ 203,042$

34,358¥81,176

Consolidated

175$

86,248

Consolidated
8

¥

¥

$

718,733(2) Information by geographical areaJapan
Net Sales¥

39,002

Asia
¥

Japan
Net Sales¥

34,900Year ended March 31, 2015
Millions of yen
North andSouth
EuropeAmerica

36,561

Asia¥

34,814

¥

7,723

¥

2,958

¥

Year ended March 31, 2014
Millions of yen
North andSouth
EuropeAmerica
¥

44

8,785

¥

2,515

Consoli－
dated

Other

4

Other
¥

162

¥

86,248

Consoli－
dated¥

81,176

Net SalesYear ended March 31, 2015
Thousands of U.S. dollars
North andSouth
EuropeAmerica

Japan

Asia

$ 325,017$ 304,675

Japan
Property, plantand equipment¥

11,742¥

12,621¥¥$97,850$24,650Other$$ 718,733

33

As of March 31, 2015
Millions of yen
North andSouth
EuropeAmerica

7,342

Asia

¥

459

¥

219

Consoli－
dated¥

As of March 31, 2015
Millions of yen
North andSouth
EuropeAmerica

6,462

¥

474

¥

226

$

61,183

$

3,825

$

1,825

19,762

Consoli－
dated¥

As of March 31, 2015
Thousands of U.S. dollars
North and
South
Asia
EuropeAmericaJapan
Property, plantand equipment

64,358Asia

Japan
Property, plantand equipment$

Consoli－
dated

19,783

Consoli－
dated$

164,683(3) Information by major customer
This information has been omitted because there is no specific customer
representing 10% or more of net sales recorded in the consolidated statements
of income for the years ended March 31, 2015 and 2014.
(e) Information about impairment loss on fixed assets for each reportable segment
Fiscal years ended March 31, 2015 and 2014: Not applicable45

(f) Information about amortization and balance of goodwill for each reportablesegment:

Amortization
Balance at
March 31

Amortization
Balance at
March 31

Amortization
Balance at
March 31

Year ended March 31, 2015
Millions of yen
Electronic
Electronic Chemicals / Information
Components FA Systems Equipment
Other

Consolidated

¥

¥

117

¥

719

0

¥

2

－

¥

－

－

117
721

－

Year ended March 31, 2014
Millions of yen
Electronic
Electronic Chemicals / Information
Components FA Systems Equipment
Other

Consolidated

¥

¥

99

¥

637

0

¥

3

－

¥

－

－

99
640

－

Year ended March 31, 2015
Thousands of U.S. dollars
Electronic
Electronic Chemicals / Information
Components FA Systems Equipment
Other

Consolidated

$

$

975
5,991

$

0
17

$

－

$

－

－
－

975
6,008

(g) Information about gains on negative goodwill for each reportable segment
Fiscal years ended March 31, 2015 and 2014: Not applicable

21. Subsequent Events
There were no significant subsequent events for the years ended March 31, 2015
and 2014.

46