Financial Section
Five-year Summary / Stock Price Information

17

Analysis of Operations and Financial Review

18

Report of Independent Auditor

21

Consolidated Balance Sheets

22

Consolidated Statements of Income

24

Consolidated Statements of Comprehensive Income

25

Consolidated Statements of Changes in Net Assets

26

Consolidated Statements of Cash Flows

27

Notes to Consolidated Financial Statements

28

Five-Year Summary$¥

Japanese Yen in Millions

U.S. Dollars in Thousands

Years ended March 31,

2011

2010

2009

2008

2007

2011

For the Period
Net sales
Operating income
Net income¥1,014,345
171,07 6
77,62 1

¥1,434,365
356,567
228,635¥1,838,622
555,263
279,089¥1,672,423
487,220
257,342¥966,534
226,024
174,290$12,221,031
2,061,166
935,200

At the Period-end
Total assets
Property, plant and equipment
Total net assets

1,634,297
80,86 4
¥1,281,861

1,760,986
79,586¥1,336,585

1,810,767
71,064¥1,253,931

1,802,490
55,150¥1,229,973

1,575,597
57,600¥1,102,018

19,690,330
974,275$15,444,115$¥

Japanese Yen

Years ended March 31,

2011

Per Share Information
Net incomeA
Cash dividendsB¥606.9 9¥450[Note]

U.S. Dollars

2010

2009

2008

2007

¥1,787.84¥930¥2,182.32¥1,440¥2,012.13¥1,260¥1,362.61
¥690

2011

$7.31
$5.42

A: The computation of net income per share of common stock is based on the weighted average number of shares outstanding (excluding treasury stock) during each fiscal year.
B: Cash dividends per share represent the amounts applicable to the respective fiscal years including dividends to be paid after the end of each fiscal year.

Stock Price Information$¥

Japanese Yen

U.S. Dollars

2011

2010

2011

Years ended March 31,

HighestLowestHighestLowestHighestLowestFirst Quarter¥32,950¥23,870¥30,850¥24,840$396.98$287.59

Second Quarter

27,16020,71027,00022,300327.22249.51

Third Quarter

24,67020,18024,72020,140297.22243.13

Fourth Quarter

26,78020,00032,65022,130322.65240.96[Note]The preceding table sets forth the highest and lowest sale prices during the years ended March 31, 2011 and 2010 for Nintendo Co., Ltd. common stock, as reported on the Osaka
Securities Exchange, Section 1. Nintendo Co., Ltd. common stock is also traded on the Tokyo Stock Exchange, Section 1.

17

Analysis of Operations and Financial Review

Overview
Nintendo continues to pursue its basic strategy of Gaming Population Expansion by offering compelling products that anyone
can enjoy, regardless of age, gender, or gaming experience.
During the fiscal year ended March 2011, to commemorate the 25th anniversary of Nintendo’s major title Super Mario Bros.,
special edition red versions of Nintendo DSi XL and Wii hardware were launched worldwide along with Wii software Super Mario
All-Stars Limited Edition as the revival of Super NES software Super Mario All-Stars, combining various classic Super Mario titles.
This sales promotion, appealing to those who had long been away from video games or never played video games before, as wellas our existing users, contributed to strong sales.
In addition, within the handheld device segment of the electronic entertainment division, sales of Pokémon Black Version andPokémon White Version became robust in and out of Japan. In the home console business, strong sales were realized on several
titles including Super Mario Galaxy 2, an action game featuring Mario’s adventures throughout the galaxy, Wii Party, which features
party games that anyone can enjoy, Donkey Kong Country Returns in which the popular character runs, jumps and climbs while ona quest, and also titles launched during last fiscal year, such as New Super Mario Bros. Wii and Wii Fit Plus.
Furthermore, Nintendo 3DS, a new handheld device which allows 3D gameplay without the need for any special glasses,
released in February in Japan and in March in the United States, Europe, and Australia, had a smooth start in sales at its launch.
However, compared to last year, when December 2009 had monthly record sales in our largest market, the United States, sales
went down for both hardware and software. Sales went down in Japan and Europe as well.
As a result, the worldwide sales of the Nintendo DS series, Nintendo 3DS, and Wii hardware were 17.52 million units, 3.61
million units, and 15.08 million units respectively. The worldwide sales units of the Nintendo DS series, Nintendo 3DS, and Wii
software were 120.98 million, 9.43 million and 171.26 million respectively. The number of million-seller titles life-to-date (including
third-party publisher titles) for the Nintendo DS series increased from 114 to 139, while Wii increased from 79 to 103 titles,
compared with the end of last fiscal year. Nintendo 3DS had two million-seller titles for this fiscal year.
Due to appreciation of the yen and the price reduction of Nintendo DS series hardware, net sales were 1,014.3 billion yen(US$12,221 million) (of which overseas sales were 846.4 billion yen (US$10,198 million), or 83.4% of the total sales) and operating
income was 171.0 billion yen (US$2,061 million). In addition, due to exchange losses totaling 49.4 billion yen (US$595 million)
primarily caused by the reevaluation of assets in foreign currencies, ordinary income was 128.1 billion yen (US$1,543 million), andnet income was 77.6 billion yen (US$ 935 million).

Risk Factors
Listed below are the various risks that could significantly affect Nintendo’s operating performance, share price, and financial
condition. However, unpredictable risks may exist other than the risks set forth herein.
Note that matters pertaining to the future presented herein are determined by Nintendo as of the end of annual consolidated
fiscal period ended March 31, 2011.
(1) Risks around economic environment•Fluctuation in foreign exchange rates
Nintendo distributes its products globally with overseas sales accounting for approximately 80% of total sales. The majority ofmonetary transactions are made in local currencies. In addition, the Company holds a substantial amount of assets in foreign
currencies including cash and deposits without exchange contracts and so forth. Thus, fluctuation in foreign exchange rates
would have a direct influence on earnings not only when foreign currencies are converted to Japanese yen but also whenrevaluated for financial reporting purposes. Japanese yen appreciation against the U.S. dollar or Euro would have a negative
impact on profitability.

18

(2) Risks around business activities•Fluctuation of market environment and competition against other companies
Nintendo’s business is engaged in one segment of the broad entertainment field. However, its business can be affected bytrends in other entertainment fields. If consumer preferences shift to other forms of entertainment, it is possible that the video
game market may shrink. The emergence of new competitors resulting from technological innovation could have a detrimental
impact as well.
In the video game industry, it may become even more difficult to be profitable due to large investments required in research,development and marketing. In addition, competition may intensify with enormous companies doing business in the same
industry or in other entertainment fields. As a result, Nintendo may find difficulty in maintaining or expanding its market share aswell as sustaining profitability.
•Development of new products
Although Nintendo is continuously making efforts to develop innovative and attractive products in the field of computer
entertainment, the development process is complicated and includes many uncertainties. Various risks involved are as follows:a. Despite the substantial costs and time needed for software development, there is no guarantee that all new products will be
accepted by consumers due to ever shifting consumer preferences. As a result, development of certain products may besuspended or aborted.
b. While development of hardware is time-consuming, with technology continuously advancing, it is possible that the Company
may not be able to equip technologies required for entertainment. Furthermore, delays of hardware launches could adversely
affect market share.
c. Due to the nature of Nintendo products, it may become difficult to develop or sell the products as planned, which could leadto significant variances from income projections.
•Product valuation and adequate inventory procurement
Products in the video game industry have relatively short life cycles, and are significantly impacted by consumers’ preferences
as well as seasonality. Although production is projected based on the forecasted equilibrium point of supply and demand, it isdifficult to forecast demand accurately, which may lead to excess inventory. Obsolete inventory could have an adverse effect on
Nintendo’s operations and financial position.
•Overseas business expansion and international activities
In addition to Japan, Nintendo engages in business in the Americas, Europe, Australia, Asia and other areas in the world.
Expansion of business to these overseas markets involves risks such as a) unpredictable enforcement or changes in laws or
regulations, b) disadvantages from emergence of political or economic factors, c) disadvantages from inconsistency ofmultilateral taxation systems and diversity of tax law interpretation, d) difficulty of recruiting and securing human resources, e)social disruption resulting from terrorist attacks, war, and other catastrophic events.
•Dependency on outside manufacturers
Nintendo commissions a number of outside manufacturers to produce key components or assemble finished products. In theevent one or more of these businesses fail, Nintendo may have difficulty procuring key components or manufacturing its
products. In addition, suppliers may be unable to provide necessary components on a timely basis. A shortage of key
components could cause marginal decline due to higher costs, shortage of products and quality control issues. These issues may
impair the relationship between Nintendo and its customers.
Furthermore, as many suppliers’ production facilities are located overseas, potential production interruptions caused bysocietal violence, natural disasters or any other accidents in the area would negatively affect Nintendo’s business.
•Business operations affected by seasonal fluctuation
A major portion of demand is focused around the holiday season. Should Nintendo fail to release attractive new products or
supply hardware during the period, it would suffer unfavorable operating performance.

19Analysis of Operations and Financial Review(3) Risks around legal regulations and litigation•Product liability
Nintendo manufactures its products based on quality control standards required in each location throughout the world.
However, large-scale product recalls may occur due mainly to defective products, which may cause Nintendo to incur additional
expenses and Nintendo’s reputation may suffer as well as Nintendo’s performance and financial position.
•Limitations of enforcing intellectual property rights
Although Nintendo continues to accumulate various intellectual properties to produce different products, counterfeit products
already have gone into circulation and violated Nintendo’s intellectual property rights. In the future, it may not be possible tofully enforce against every infringement of Nintendo’s intellectual property rights.
•Leakage of personal and conﬁdential information
Nintendo possesses personally identifiable information about its consumers, such as “Club Nintendo” membership
information. If such personally identifiable information or any confidential information concerning development or business
operations were ever breached or otherwise leaked outside of Nintendo, there would be an adverse affect on Nintendo’s future
operating performance, reputation, share price and financial condition.
•Changes in accounting standards and taxation systems
Unpredicted adoptions or changes in accounting standards or taxation systems could have an effect on Nintendo’s
performance and financial position. Conflict of views between Nintendo and the tax authorities may cause additional tax costs.
•Litigation
Nintendo’s operations in Japan and overseas may be subject to litigation, disputes and other legal procedures. These issues
may adversely affect Nintendo’s performance.
•Other risks
Other than risks set forth above, factors such as uncollectibility of trade accounts receivable and notes receivable, collapse offinancial institutions and environmental regulations may adversely affect Nintendo’s performance and financial position.

20

Report of Independent Auditor
To the Board of Directors and Shareholders of Nintendo Co., Ltd.
We have audited the accompanying consolidated balance sheet of Nintendo Co., Ltd. and its subsidiaries (the “Company”) as ofMarch 31, 2011, and the related consolidated statements of income, consolidated statements of comprehensive income, changes
in net assets and cash flows for the year then ended, all expressed in Japanese yen. These consolidated financial statements are
the responsibility of the Company’s management. 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 in Japan. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates madeby management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Nintendo Co., Ltd. and its subsidiaries as of March 31, 2011, and the consolidated results of their operations
and their cash flows for the year then ended in conformity with accounting principles generally accepted in Japan.
The amounts expressed in U.S. dollars, which are provided solely for the convenience of the readers, have been translated on
the basis set forth in Note 1 to the accompanying consolidated financial statements.

Kyoto Audit Corporation
Kyoto, Japan
June 29, 2011

Report of Independent Auditor
To the Board of Directors and Shareholders of Nintendo Co., Ltd.
We have audited the accompanying consolidated balance sheet of Nintendo Co., Ltd. and its subsidiaries (the “Company”) as ofMarch 31, 2010, and the related consolidated statements of income, changes in net assets, and cash flows for the year then ended,
all expressed in Japanese yen. These consolidated financial statements are the responsibility of the Company’s management. 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 in Japan. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates madeby management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Nintendo Co., Ltd. and its subsidiaries as of March 31, 2010, and the consolidated results of their operations
and their cash flows for the year then ended in conformity with accounting principles generally accepted in Japan.
The amounts expressed in U.S. dollars, which are provided solely for the convenience of the readers, have been translated on
the basis set forth in Note 1 to the accompanying consolidated financial statements.

Kyoto Audit Corporation
Kyoto, Japan
June 28, 201021

Consolidated Balance Sheets$¥

Japanese Yen in Millions

U.S. Dollars in Thousands (Note 1)

2011

2010

2011

Current assets
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts¥812,870
135,689358,206
85,205438
7,069
27,62042,362(756)¥886,995
131,876
365,326
116,055
90
8,528
35,19348,389
(1,067)$9,793,618
1,634,810
4,315,744
1,026,577
5,278
85,173332,778
510,388(9,115)

Total current assets

1,468,706

1,591,388

17,695,254

27,124
4,851
5,787
41,606
1,494

16,037
1,797
5,259
42,48814,003326,80258,44769,726501,288
18,009Total property, plant and equipment

80,864

79,586974,275

Intangible assets
Software
Other

3,553
1,986

949
3,162

42,80823,928

Total intangible assets

5,539

4,111

66,737

Investments and other assets
Investment securities (Note 6 B)
Deferred tax assets
Other
Allowance for doubtful accounts

38,22835,0175,940(0)44,05735,9295,926(13)460,586
421,897
71,578(0)Total investments and other assets

79,18785,899954,062

Total noncurrent assets

165,591

169,598

1,995,075¥1,634,297¥1,760,986$19,690,330

As of March 31,

AssetsNoncurrent assets
Property, plant and equipment (Note 6 A)
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
LandConstruction in progress

Total assets

See accompanying notes to consolidated financial statements.

22

$

¥

Japanese Yen in Millions

As of March 31,

U.S. Dollars in Thousands (Note 1)

2011

2010

2011

Liabilities
Current liabilities¥214,646¥264,613$2,586,107

Income taxes payable

32,301

55,666389,173

Provision for bonuses

2,431

2,174

29,292

Other

83,92285,082

1,011,110

Total current liabilities

333,301

407,537

4,015,683

Provision for retirement benefits

11,647

9,924

140,327

Other

7,486

6,939

90,203

Total noncurrent liabilities

19,134

16,863

230,530

352,435

424,401

4,246,214

Capital stock

10,065

10,065

121,269

Capital surplus

11,734

11,733

141,379

Retained earnings

1,502,631

1,527,315

18,103,990

Treasury stock(156,663)(156,585)(1,887,517)

Total shareholders’ equity

1,367,767

1,392,528

16,479,122

Notes and accounts payable-trade

Noncurrent liabilities

Total liabilities

Net assets
Shareholders’ equity

Other accumulated comprehensive income

(917)

1,661

(11,055)

Foreign currency translation adjustment(85,212)(57,778)(1,026,654)

Total other accumulated comprehensive income(86,129)(56,117)(1,037,709)

224

174

2,703

Total net assets

1,281,861

1,336,585

15,444,115

Total liabilities and net assets¥1,634,297¥1,760,986$19,690,330

Valuation difference on available-for-sale securities

Minority interests

See accompanying notes to consolidated financial statements.

23

Consolidated Statements of Income$¥

Japanese Yen in Millions

U.S. Dollars in Thousands (Note 1)

2011

2010

2011

¥1,014,345
626,379
387,965
216,889
171,076¥1,434,365
859,131575,234
218,666
356,567$12,221,031
7,546,742
4,674,289
2,613,122
2,061,166

6,870
1,731

8,512
2,570

82,776
20,862

8,602

11,082

103,638479
49,429
1,667

587
2,131
204
401

5,782
595,538
20,094

51,577
128,101

3,325
364,324

621,415
1,543,389

56
105
24
-

1,207
126
4,065

680
1,275
293
-

186

5,399

2,249

30
0
322
-

67
2,215

372
3,884
-

Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred353
127,934
41,6278,634

2,282
367,442
136,319
2,576

4,256
1,541,382
501,540
104,035

Total income taxes
Income before minority interests
Minority interests in income (loss)
Net income

50,262
77,671
50¥77,621

138,896(89)¥228,635

605,575
935,806
606$935,200

Years ended March 31,

Net sales
Cost of sales (Notes 7 A, C)
Gross profit
Selling, general and administrative expenses (Notes 7 B,C)
Operating income
Non-operating income
Interest income
Other
Total non-operating income
Non-operating expenses
Sales discounts
Loss on redemption of securities
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of allowance for doubtful accounts
Gain on sales of noncurrent assets (Note 7 D)
Gain on sales of investment securities
Gain on prior periods adjustment (Note 7 F)
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets (Note 7 E)
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on prior periods adjustment (Note 7 G)

See accompanying notes to consolidated financial statements.

24Consolidated Statements of Comprehensive Income$¥

Japanese Yen in Millions

U.S. Dollars in Thousands (Note 1)

Years ended March 31,

2011

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method¥77,671-$935,806(2,582)(27,433)-(31,112)(330,527)

3

-

41

(30,012)-(361,598)

Comprehensive income (Note 8 A)

47,659-574,208(Comprehensive income attributable to)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

47,608¥50-

573,602$606

Total other comprehensive income (Note 8 B)

See accompanying notes to consolidated financial statements.

25

2010

2011

Consolidated Statements of Changes in Net Assets¥

Japanese Yen in Millions

Years ended March 31, 2011 and 2010

Balance as of March 31, 2009
Changes of items during
the fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity

Capitalstock

Capitalsurplus¥10,065¥11,726 ¥1,432,958

Treasury
stock

Total
Valuation difference Foreign currency
Total othershareholders’ on available-for-saletranslation
accumulated
equitysecurities
adjustment
comprehensive income¥(156,516) ¥1,298,234¥3,100¥(47,428)¥(44,328)

Minority
interests

Total
net assets¥25 ¥1,253,931-

6(134,278)
228,635-(74)
5(134,278)
228,635
(74)
11

-

-

-

-

(134,278)
228,635
(74)
11

-

-

-

-

-

(1,439)(10,349)(11,788)148(11,640)-

6

94,356(68)

94,294(1,439)(10,349)(11,788)148

82,653

10,065

11,733

1,527,315(156,585) 1,392,528

1,661(57,778)(56,117)174

1,336,585-

1(102,305)
77,621-(79)
1(102,305)
77,621
(79)
2

-

-

-

-

(102,305)
77,621
(79)
2

-

-

-

-

-

(2,578)(27,433)(30,012)50(29,962)1(24,683)(78)(24,761)(2,578)(27,433)(30,012)50(54,723)¥(156,663) ¥1,367,767¥(917)¥(85,212)¥(86,129)

Total changes of items during
the fiscal year
Balance as of March 31, 2010
Changes of items during
the fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity

Retainedearnings

Total changes of items during
the fiscal year-

Balance as of March 31, 2011

¥10,065¥11,734 ¥1,502,631¥224 ¥1,281,861$
U.S. Dollars in Thousands (Note 1)

Years ended March 31, 2011

Balance as of March 31, 2010
Changes of items during
the fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity

Retainedearnings

Total other
Total
Valuation difference Foreign currency
accumulatedshareholders’ on available-for-saletranslation
comprehensive income
equitysecurities
adjustment

Capitalstock

CapitalsurplusTreasurystock$121,269$141,364 $18,401,386 $(1,886,568) $16,777,452$20,015$(696,126)$(676,111)

Minority
interests

Total
net assets$2,097 $16,103,438-

15(1,232,597)
935,200
-

(962)
14

(1,232,597)
935,200
(962)
29

-

-

-

-

(1,232,597)
935,200
(962)
29

-

-

-

-

-

(31,071)(330,527)(361,598)

606(360,992)

Total changes of items during
the fiscal year-

15(297,396)(948)(298,329)(31,071)(330,527)(361,598)

606(659,322)

Balance as of March 31, 2011

$121,269$141,379 $18,103,990 $(1,887,517) $16,479,122

See accompanying notes to consolidated financial statements.

26$(11,055) $(1,026,654) $(1,037,709)$2,703 $15,444,115

Consolidated Statements of Cash Flows$¥

Japanese Yen in Millions

U.S. Dollars in Thousands (Note 1)

Years ended March 31,

2011

2010

2011

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Interest and dividends income
Foreign exchange losses (gains)
Equity in (earnings) losses of affiliates
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other, net¥127,934
6,794
(221)
2,586
(7,113)39,46440(12,377)
20,109(42,172)(2,908)3,515¥367,442
7,098(2,867)41(8,767)(16,888)58
3,833
13,380(50,731)
1,061(1,825)$1,541,382
81,863(2,673)31,160(85,710)475,480491(149,124)
242,281(508,101)(35,044)
42,355Sub-totalInterest and dividends income received
Interest expenses paid
Income taxes paid

135,652
7,676(2)(65,222)

311,837
9,595(2)(161,091)

1,634,362
92,485(30)(785,810)

Net cash provided by (used in) operating activities

78,103

160,337

941,006

Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short-term investment securities
Proceeds from sales and redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Other, net(391,444)
398,561(613,423)
476,912(10,940)536(13,468)(771)(288,968)
247,925(566,926)
619,400(17,127)
135(1,075)(6,092)(4,716,203)
4,801,941(7,390,640)
5,745,927(131,818)
6,465(162,265)(9,295)

Net cash provided by (used in) investing activities(154,038)(12,728)(1,855,889)(79)(102,314)
(61)

(74)
(134,137)
364

(962)
(1,232,702)(744)(102,456)(133,847)(1,234,410)

Effect of exchange rate change on cash and cash equivalents(28,576)

23,442(344,292)

Net increase (decrease) in cash and cash equivalents(206,967)

37,203(2,493,585)

Cash and cash equivalents at beginning of year

931,333

894,129

11,220,890

Cash and cash equivalents at end of year (Note 10)¥724,366¥931,333$8,727,304

Net cash provided by (used in) financing activities
Purchase of treasury stock
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities

See accompanying notes to consolidated financial statements.

27

Notes to Consolidated Financial Statements
Years ended March 31, 2011 and 2010

Note 1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of Nintendo Co., Ltd. (the “Company”) and its consolidated subsidiaries
are compiled from the consolidated financial statements prepared by the Company as requested by the Financial Instruments andExchange Act of Japan and are prepared on the basis of accounting principles and practices generally accepted in Japan, which
are different in certain respects as to application and disclosure requirements of the International Financial Reporting Standards.
The financial statements of the Company and its domestic subsidiaries are prepared on the basis of the accounting and relevant
legal requirements in Japan. The financial statements of the overseas consolidated subsidiaries are prepared on the basis of theaccounting and relevant legal requirements of their countries of domicile and no adjustment has been made to their financial
statements in consolidation to the extent that significant differences do not occur, as allowed under the generally accepted
accounting principles and practices in Japan.
As permitted by the Financial Instruments and Exchange Act of Japan, each amount of the accompanying consolidated financial
statements is rounded down to the nearest one million yen (In the case of translation into U.S. dollars, it is rounded down to thenearest one thousand dollars). Consequently, the totals shown in the accompanying consolidated financial statements do notnecessarily agree with the sums of the individual amounts.
The consolidated financial statements presented herein are stated in Japanese yen, the currency of the country in which theCompany is incorporated and operates. The rate of ¥83 to U.S.$1, the approximate current rate of exchange on March 31, 2011,
has been applied for the purpose of presentation of the accompanying consolidated financial statements in U.S. dollars. Theseamounts in U.S. dollars are included solely for convenience and should not be construed as representations that the Japanese yenamounts actually represent, have been or could be converted into U.S. dollars at this or any other rate of exchange.
The accompanying consolidated financial statements are not intended to present the consolidated financial position, results ofoperations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions
other than Japan.

Note 2. Significant Accounting Policies
A. Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and all of its 26 subsidiaries except
for one as of March 31, 2011 and 2010. One of the subsidiaries, Fukuei Co., Ltd, is not only unconsolidated, but also not being
accounted for under the equity method, as it is a small scale company and its impact is not significant on the total assets, net sales,
net income or loss, retained earnings and others in the consolidated financial statements. The equity method of accounting isapplied to four affiliates out of five as of March 31, 2011 and 2010. One of the affiliates, Ape inc., is not accounted for under theequity method, as it is immaterial and its impact is not significant on net income or loss, retained earnings and others in the
consolidated financial statements. The names of the major subsidiaries and affiliates are shown in “Corporate information” at page 49.
All the consolidated subsidiaries have adopted March 31, the closing date of the accompanying consolidated financial
statements, as their fiscal year end except for Nintendo Phuten Co., Ltd., iQue Ltd. and iQue (China) Ltd. of December 31 as ofMarch 31, 2011 and except for Nintendo Phuten Co., Ltd., Retro Studios, Inc., iQue Ltd. and iQue (China) Ltd. of December 31 and
MONOLITH SOFTWARE INC. of the end of February as of March 31, 2010. The amounts of these subsidiaries have been included
on the basis of their fiscal periods as the differences in the closing dates are within three months prior to March 31. Besides, theamounts of certain affiliates have been included on the basis of their fiscal periods within three months prior to March 31. Anynecessary adjustments were made to financial statements to reflect any significant transactions from their closing dates to March
31, 2011 and 2010.
From the year ended March 31, 2011, the closing dates of Retro Studios, Inc. and MONOLITH SOFTWARE INC. have changed
from December 31 and the end of February to March 31. In accordance with the change, the number of months included in thefiscal year ended March 31, 2011 is 15 and 13, respectively.

28

B. Securities and Derivatives
Securities
Held-to-maturity debt securities are stated using amortized cost method on a straight-line basis. Other investment securities forwhich market quotations are available are stated at fair value at the balance sheet date. Unrealized gains and losses on otherinvestment securities are recorded as “Valuation difference on available-for-sale securities” in “Net assets” at the net-of-tax
amount. The cost of investment securities sold is determined based on the moving average cost.
Other investment securities for which market quotations are unavailable are stated at cost, determined by the moving averagemethod.
Derivatives
Derivatives are stated at fair value.

C. Inventories
Finished goods, work in process and raw materials and supplies are mainly measured by means of the cost method based on themoving average method, which evaluates the amount of the inventories shown on the balance sheet by the write-down of
inventories due to decreased profitability of assets.

D. Property, Plant and Equipment
The Company and its domestic consolidated subsidiaries compute depreciation by the declining balance method over theestimated useful lives except for certain tools, furniture and fixtures depreciated over the economic useful lives. The straight-line
basis of depreciation is used for buildings, except for structures, acquired on or after April 1, 1998. Overseas consolidated
subsidiaries compute depreciation by applying the straight-line basis over the period of estimated useful lives. Estimated useful
lives of “Buildings and structures,” one of the principal assets, are 3 to 60 years.
Leased assets are excluded from property, plant and equipment.

E. Intangible Assets
Amortization of intangible assets, except for computer software for internal use, is computed by the straight-line basis over theestimated useful lives. Amortization of computer software for internal use is computed by the straight-line basis over the estimatedinternal useful lives of mainly five years.
Leased assets are excluded from intangible assets.

F. Leased Assets
Leased assets related to finance lease transactions that do not transfer ownership are depreciated on a straight-line basis, withthe lease periods used as their useful lives and no residual value.

G. Allowance for Doubtful Accounts
The Company and its domestic consolidated subsidiaries provide the allowance for doubtful accounts based on the historicalanalysis of loss experience and the evaluation of uncollectible amount on individual doubtful accounts. Overseas consolidated
subsidiaries provide the allowance for doubtful accounts based on the evaluation of uncollectible amount on individual accounts.

H. Provision for Bonuses
The Company and certain consolidated subsidiaries provide the reserve for the estimated amount of bonuses to be paid to theemployees.

I. Provision for Retirement Benefits
The Company and certain consolidated subsidiaries provide the reserve for employees’ retirement and severance benefits basedon the projected benefit obligation and plan assets at the end of fiscal year.
Actuarial calculation differences are processed collectively in the accrued year.

29Notes to Consolidated Financial Statements
Years ended March 31, 2011 and 2010

J. Translation of Foreign Currency Items
All the monetary receivables and payables 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. The foreignexchange gains and losses from translation are recognized in the accompanying consolidated statements of income.
With respect to ﬁnancial statements of overseas subsidiaries, the balance sheet accounts are translated into Japanese yen at theexchange rate of the closing date except for shareholders’ equity, which are translated at the historical rates. Revenue and expense
accounts are translated into Japanese yen at the annual average exchange rate for the ﬁscal period. The differences resulting fromsuch translations are included in “Foreign currency translation adjustment” or “Minority interests” in “Net assets.”

K. Amortization of Goodwill
Goodwill is fully amortized by the straight-line basis over mainly ﬁve years or, in case of immaterial amount, in the same ﬁscal
year as incurred.

L. Cash and Cash Equivalents in Consolidated Statements of Cash Flows“Cash and cash equivalents” include cash on hand, time deposit which can be withdrawn on demand and certain investments,
with little risk of ﬂuctuation in value and maturity date of three months or less, which are promptly convertible to cash.

M. Accounting for Consumption Taxes
Consumption taxes are recorded as assets or liabilities when they are paid or received.

Note 3. Changes in Accounting Policies
A. Equity
Effective as of the ﬁscal year ended March 31, 2011, the “Accounting Standard for Equity Method of Accounting forInvestments” (Accounting Standards Board of Japan Statement No.16 released on March 10, 2008) and “Practical Solution on
Uniﬁcation of Accounting Policies Applied to Associates Accounted for Using the Equity Method” (Practical Issues Task Force
No.24 dated March 10, 2008) have been adopted.
There is no impact on ordinary income or income before income taxes and minority interests.

B. Asset Retirement Obligations
Effective as of the ﬁscal year ended March 31, 2011, the “Accounting Standard for Asset Retirement Obligations” (AccountingStandards Board of Japan Statement No.18 dated March 31, 2008) and the “Guidance on Accounting Standard for Asset
Retirement Obligations” (Accounting Standards Board of Japan Guidance No.21 dated March 31, 2008) have been adopted.
There is no impact on ordinary income or income before income taxes and minority interests.

C. Accounting Standard for Financial Instruments
Effective as of the ﬁscal year ended March 31, 2010, the “Accounting Standard for Financial Instruments” (Accounting Standards
Board of Japan Statement No.10 dated January 22, 1999 and its last amendment was March 10, 2008) and “Guidance on
Disclosures about Fair Value of Financial Instruments” (Accounting Standards Board of Japan Guidance No.19 dated March 10,2008) have been adopted.
There is no impact on ordinary income or income before income taxes and minority interests.

D. Investment Securities
Unrealized gains or losses on other investment securities for which market quotations are available had been accounted for using
the partial net asset recording method. Effective as of the ﬁscal year ended March 31, 2010, in order to improve comparability withother companies, the accounting method has been changed to the whole net asset recording method. The impact of this change
to the ﬁscal year ended March 31, 2010 increases ordinary income and income before income taxes and minority interests inincome by ¥4,966 million and ¥2,669 million, respectively, compared to the previous method.

E. Provision for Retirement Benefits
Effective as of the ﬁscal year ended March 31, 2010, the “Partial Amendments to Accounting Standard for Retirement Beneﬁts(Part 3)” (Accounting Standards Board of Japan Statement No.19 dated July 31, 2008) has been adopted.
The impact on operating income, ordinary income and income before income taxes and minority interests is minor.

30

Note 4. Changes in Description
A. Consolidated Balance Sheets
Effective as of the consolidated accounting period ended March 31, 2010, “Long-term accounts payable-other,” has been
included in “Other” due to their immateriality.

B. Consolidated Statements of Income
Effective as of the consolidated accounting period ended March 31, 2011, “Loss on redemption of securities,” individuallydescribed in the 2010 accompanying consolidated statements of income, has been included in “Other” due to their immateriality.
“Other” in the 2011 accompanying consolidated statements of income included ¥809 million ($9,749 thousand) of “Loss onredemption of securities.”
Effective as of the consolidated accounting period ended March 31, 2011, under the “Accounting Standard for Consolidated
Financial Statements” (Accounting Standards Board of Japan Statement No.22 dated December 26, 2008), the “Cabinet Ofﬁce
Ordinance Partially Revising Regulation for Financial Statement, etc.” (Cabinet Ofﬁce Ordinance No.5 dated March 24, 2009) has
been adopted and the account “Income before minority interests” has been presented.
Effective as of the consolidated accounting period ended March 31, 2010, “Selling, general and administrative expenses,” hasbeen described in a lump and material accounts and amounts are noted.
Material accounts and amounts of “Selling, general and administrative expenses” in the consolidated accounting period ended
March 31, 2011 and 2010 were presented in the following “Note 7. Note to Consolidated Statements of Income.”
Effective as of the consolidated accounting period ended March 31, 2010, “Interest expenses,” has been included in “Other”
due to its immateriality.
Effective as of the consolidated accounting period ended March 31, 2010, “Loss on redemption of securities” has been
individually described from the perspective of materiality.

C. Consolidated Statements of Cash Flows
Effective as of the consolidated accounting period ended March 31, 2010, “Interest expenses,” has been included in “Other” inthe net cash provided by (used in) operating activities due to their immateriality.

Note 5. Additional Information
Comprehensive Income
Effective as of the ﬁscal year ended March 31, 2011, the “Accounting Standard for Presentation of Comprehensive Income”(Accounting Standards Board of Japan Statement No.25 dated June 30, 2010) has been adopted.
However, regarding “Other accumulated comprehensive income” and “Total other accumulated comprehensive income” for theﬁscal year ended March 31, 2010, amounts for “Valuation and translation adjustments” and “Total valuation and translation
adjustments” have been stated.

Note 6. Note to Consolidated Balance Sheets
A. Accumulated Depreciation of Property, Plant and Equipment
Accumulated depreciation of property, plant and equipment were ¥51,577 million ($621,409 thousand) and ¥51,637 million as ofMarch 31, 2011 and 2010, respectively.

B. Investments in Unconsolidated Subsidiaries and Affiliates
Investments in unconsolidated subsidiaries and afﬁliates were ¥6,000 million ($72,297 thousand) and ¥5,940 million as of March
31, 2011 and 2010, respectively.

31

Notes to Consolidated Financial Statements
Years ended March 31, 2011 and 2010

Note 7. Note to Consolidated Statements of Income
A. Valuation Losses on Goods
Losses incurred from the application of the write-down of inventories due to decreased proﬁtability of assets and charged to “Costof sales” were ¥4,236 million ($51,044 thousand) and ¥4,571 million for the years ended March 31, 2011 and 2010, respectively.

B. Selling, General and Administrative Expenses
Advertising expenses were ¥96,359 million ($1,160,963 thousand) and ¥100,217 million, research and development expenses
were ¥52,625 million ($634,043 thousand) and ¥45,461 million, salaries, allowances and bonuses were ¥19,016 million ($229,116
thousand) and ¥19,469 million, depreciation were ¥4,435 million ($53,443 thousand) and ¥3,469 million, provision for bonuses
were ¥915 million ($11,026 thousand) and ¥752 million, and provision of allowance for doubtful accounts were ¥92 million ($1,111
thousand) and ¥399 million for the years ended March 31, 2011 and 2010, respectively.

C. Research and Development Expenses
Research and development expenses incurred and charged to “Selling, general and administrative expenses” and “Cost of sales”
were ¥52,756 million ($635,619 thousand) and ¥45,471 million in total for the years ended March 31, 2011 and 2010, respectively.

D. Gain on Sales of Noncurrent Assets
Gross realized gains were ¥104 million ($1,262 thousand) on sales of land and ¥1 million ($13 thousand) on sales of machinery,equipment and vehicles for the year ended March 31, 2011, and were ¥74 million on sales of land and ¥52 million on sales ofbuildings and structures for the year ended March 31, 2010.

E. Loss on Disposal of Noncurrent Assets
Gross realized losses were ¥16 million ($193 thousand) on disposal of tools, furniture and ﬁxtures, ¥13 million ($160 thousand) on
disposal of buildings and structures and ¥1 million ($18 thousand) on disposal of machinery, equipment and vehicles for the year
ended March 31, 2011, and were ¥55 million on disposal of buildings and structures, ¥6 million on disposal of machinery,equipment and vehicles and ¥5 million on disposal of tools, furniture and ﬁxtures for the year ended March 31, 2010.

F. Gain on Prior Periods Adjustment“Gain on prior periods adjustment” is the amount of refund for the penalties of a law suit paid in prior years for the consolidated
accounting period ended March 31, 2010.

G. Loss on Prior Periods Adjustment“Loss on prior periods adjustments” is the amount of adjustments related to prior years in connection with redeemable points(by Club Nintendo points etc.). Effective as of the consolidated accounting period ended March 31, 2010, the granted points havebeen treated as deferred sales. Prior to the period, they were expensed.

Note 8. Note to Consolidated Statements of Comprehensive Income
A. Comprehensive Income¥

Japanese Yen in Millions

Year ended March 31, 2010

Comprehensive Income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests¥216,846(89)¥216,757

Total

B. Other Comprehensive Income¥

Japanese Yen in Millions

Year ended March 31, 2010

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method¥(1,434)(10,349)(4)¥(11,788)

Total

32

Note 9. Note to Consolidated Statements of Changes in Net Assets
Number of outstanding shares

Common stock

Common stock

As of March 31,
2010

Increase in thenumber of shares

Decrease in thenumber of shares

As of March 31,
2011

141,669,000--

141,669,000

As of March 31,
2009

Increase in thenumber of shares

Decrease in thenumber of shares

As of March 31,
2010

141,669,000--

141,669,000

As of March 31,
2010

Increase in thenumber of shares

Decrease in thenumber of shares

As of March 31,
2011

13,786,778

3,258

105

13,789,931

As of March 31,
2009

Increase in thenumber of shares

Decrease in thenumber of shares

As of March 31,
2010

13,784,279

2,964

465

13,786,778

Number of treasury stocks

Common stock

Common stock

The reasons for the increase or decrease in the number of shares are as follows:
Increase due to purchase of odd lot shares and decrease due to disposal of odd lot shares by shareholders.

Amount of dividends paid
Type of share

Annual general shareholders’ meeting
held on June 29, 2010

CommonBoard of directors’ meeting
held on October 28, 2010

CommonAmount of dividends(Japanese Yen in
Millions)

Dividend per share(Japanese Yen)

Record date

Effective date

¥84,402¥660

March 31, 2010

June 30, 2010

¥17,903¥140

September 30, 2010

December 1, 2010

Amount of dividends(Japanese Yen in
Millions)

Dividend per share(Japanese Yen)

Record date

Effective date¥99,750¥780

March 31, 2009

June 29, 2009

¥34,528¥270

September 30, 2009

December 1, 2009

Amount of dividends(U.S. Dollars inThousands)

Dividend per share(U.S. Dollars)

Record date

Effective date

$1,016,894$7March 31, 2010

June 30, 2010

$215,702$1

September 30, 2010

December 1, 2010

stock

stock

Type of share

Annual general shareholders’ meeting
held on June 26, 2009

CommonBoard of directors’ meeting
held on October 29, 2009

Common

stock

stock

Type of share

Annual general shareholders’ meeting
held on June 29, 2010

CommonBoard of directors’ meeting
held on October 28, 2010

Common

stock

stock

33

Notes to Consolidated Financial Statements
Years ended March 31, 2011 and 2010

Dividends whose effective date is after the end of current fiscal year and record date is included in the current fiscal year.

Type of share

Annual general shareholders’ meeting
held on June 29, 2011

C ommons t oc k

Type of share

Annual general shareholders’ meeting
held on June 29, 2010

C ommons t oc k

Type of share

Annual general shareholders’ meeting
held on June 29, 2011

C ommons t oc k

Amount of dividends(Japanese Yen in
Millions)¥39,642

Amount of dividends(Japanese Yen in
Millions)¥84,402

Amount of dividends(U.S.Dollars inThousands)$477,620

Source of dividends

Dividend per share(Japanese Yen)

Record date

Effective date

¥310

M a rc h 3 1 , 2 0 1 1June 30, 2011

Dividend per share(Japanese Yen)

Record date

Effective date¥660

M a rc h 3 1 , 2 0 1 0June 30, 2010

Dividend per share(U.S. Dollars)

Record date

Effective date$3

M a rc h 3 1 , 2 0 1 1June 30, 2011

Re ta i n e d
e a rn i n g s

Source of dividends
Re ta i n e d
e a rn i n g s

Source of dividends
Re ta i n e d
e a rn i n g s

Note 10. Note to Consolidated Statements of Cash Flows“Cash and cash equivalents at end of year” were reconciled to “Cash and deposits” in the accompanying consolidated balance
sheets as of March 31, 2011 and 2010 as follows:$¥

Japanese Yen in Millions

U.S. Dollars in Thousands

As of March 31,

2011

2010

2011

Cash and deposits¥812,870¥886,995$9,793,618(153,591)(176,035)(1,850,497)

65,087220,373784,183¥724,366¥931,333$8,727,304

Time deposits with maturities ofmore than three months
Short-term investments with an original
maturity of three months or less
Cash and cash equivalents

34

Note 11. Leases
The Company and certain consolidated subsidiaries lease tools, furniture and fixtures and other noncurrent assets.
Information of finance leases as of March 31, 2011 and 2010 were omitted as they are immaterial.
The rental commitments under noncancelable operating leases as of March 31, 2011 and 2010 were as follows:$¥

Japanese Yen in Millions

U.S. Dollars in Thousands

2011

2010

2011

Due within one year

¥1,272¥1,315$15,332

Due after one year

4,174

4,876

50,291

Total¥5,446¥6,191$65,624

As of March 31,

Note 12. Financial Instruments
A. Condition of Financial Instruments for the Year Ended March 31, 2011 and 2010
(1) Policy for measures relating to financial instruments
The Company and its consolidated subsidiaries use only financial assets with high degrees of safety such as deposits for the
management of funds. The Company and certain consolidated subsidiaries use derivatives to reduce risk as described below,
and for the purpose of yield improvement of short-term financial assets, and not for speculative purposes.
(2) Details of financial instruments, risks, and risk management system
Notes and accounts receivable-trade are exposed to credit risk of customers. In order to reduce the risk, the Company andits consolidated subsidiaries monitor the credit status and transaction history, assess creditworthiness and set credit limit foreach customer. Since short-term investment securities and investment securities mainly comprise bonds held to maturity issued
by financial institutions that have high creditworthiness, the credit risk is minimal. Such bonds are also subject to foreign
currency exchange risk and market risk. The Company and its consolidated subsidiaries closely monitor the market value ofsuch bonds and the financial position of the issuer and review the status of these investments on a regular basis. Investment
securities include stocks of companies with which the Company has business relationships. These stocks are exposed to market
risk, however, the investment balance is immaterial.
Notes and accounts payable-trade and income taxes payable are all due within one year.
The Company and certain consolidated subsidiaries enter into foreign exchange forward contracts, non-deliverable forward
contracts and currency option contracts to reduce risk of exchange rate fluctuations arising from deposits and trade receivables
denominated in foreign currencies. Derivative transactions are exposed to foreign currency exchange risk. Derivativetransactions entered into by the Company and certain consolidated subsidiaries are made within the limits of foreign currency
deposits by the Finance Department or the department in charge of financial matters, after getting approval by the president
or the directors in charge. Status of derivative transactions is reported to Board of Directors on a regular basis. Since
counterparties of such transactions are limited to financial institutions that have high creditworthiness, the Company anticipatesrisk due to default is minimal.
(3) Supplementary explanation regarding fair value of financial instruments
Fair value of financial instruments is measured based on the quoted market price, if available, or rationally calculated values
if a quoted market price is not available. Because estimation of fair value incorporates variable factors, adopting different
assumptions might change the value. In addition, the contract amounts of the derivative transactions below in “Note 14.
Derivatives” do not represent the market risk of derivative transactions.

35

Notes to Consolidated Financial Statements
Years ended March 31, 2011 and 2010

B. Fair value of financial instruments(1) Amounts recognized for selective items in the consolidated balance sheet
The book value on the consolidated balance sheet, fair value, and differences as of March 31, 2011 and 2010 were as
follows:$¥

Japanese Yen in Millions
Book value

Fair value(1)Cash and deposits(2)Notes and accounts receivable-trade(3)Short-term investment securities
and investment securities
a. Held-to-maturity debt securities
b. Other securities¥812,87 0
135,68 9¥812,870
135,689

343,96 8
46,27 8

Total assets

U.S. Dollars in Thousands
Book value

Fair value-$9,793,618
1,634,810$9,793,618
1,634,810-

343,90946,278¥(58)-

4,144,200
557,566

4,143,493
557,566$(706)-

1,338,80 6

1,338,747¥(58)

16,130,196

16,129,489$(706)(1)Notes and accounts payable-trade(2)Income taxes payable

214,64 6
32,30 1

214,646
32,301-2,586,107
389,173

2,586,107
389,173-

Total liabilities

246,94 8

246,948-

2,975,280

2,975,280-

Derivatives¥(2,77 7 )¥(2,777)-$(33,464)$(33,464)-

As of March, 2011

Difference

Difference¥

Japanese Yen in Millions
Book value

Fair value(1)Cash and deposits(2)Notes and accounts receivable-trade(3)Short-term investment securities
and investment securities
a. Held-to-maturity debt securities
b. Other securities¥886,99 5
131,87 6¥886,995
131,876-

356,88 746,36 8356,845
46,368¥(41)-

Total assets

1,422,12 7

1,422,086¥(41)(1)Notes and accounts payable-trade(2)Income taxes payable

264,61 3
55,66 6

264,61355,666-

Total liabilities

320,28 0

320,280-

Derivatives¥(1,00 1 )¥(1,001)-

As of March, 2010

[Note1]

Difference

Fair value measurement of financial instruments, items relating to securities and derivative transactions
Cash and deposits, notes and accounts receivable-trade
The book value approximates fair value because of the short maturity of these items.
Short-term investment securities and investment securities
The fair value of stocks equal quoted market price. Bonds are valued at the price provided by financial institutions. Securities classified by purpose of holding are describedin “Note 13. Short-term Investment Securities and Long-term Investment Securities.”
Notes and accounts payable-trade and income taxes payable
The book value approximates fair value because of the short maturity of these items.
Derivative transactions
Net amounts of receivables / payables arising from derivative transactions are shown. Items that are net payables are shown in parenthesis.
Measurement of fair value and natures of transactions relating to derivatives are described in “Note 14. Derivatives.”[Note2]Unlisted stocks (¥6,188 million or $74,563 thousand and ¥6,128 million in the consolidated balance sheet for the years ended March 31, 2011 and 2010, respectively) which do nothave market prices and of which future cash flows cannot be estimated are not included in “short-term investment securities and investment securities,” since the estimation of fairvalue is deemed to be extremely difficult.

36

(2) Redemption schedule for monetary assets and securities with maturity subsequent to the consolidated balance sheets dateas of March 31, 2011 and 2010 were as follows:$¥

Japanese Yen in Millions¥812,870
135,689-$9,793,618
1,634,810-

305,824
15,00023,122-

3,684,633
180,722
278,579-

14,135¥9,978170,307$120,216¥1,306,641¥9,978$15,742,671$120,216

Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
and long-term investment securities
Held-to-maturity debt securities
Certificate of deposits
Money held in trust
Corporate and government bonds
Other investment securities with maturity
Corporate and government bonds
Total

Due after one
year throughfive years

Due within
one year

As of March, 2011¥

Japanese Yen in Millions
Due within
one year

As of March, 2010

Due after one
year throughfive years¥886,995
131,876-

315,816
10,00031,066-

8,373¥26,981¥1,384,129¥26,981

Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
and long-term investment securities
Held-to-maturity debt securities
Certificate of deposits
Money held in trust
Corporate and government bonds
Other investment securities with maturity
Corporate and government bonds
Total

U.S. Dollars in Thousands
Due after one
Due withinyear throughone yearfive years

37Notes to Consolidated Financial Statements
Years ended March 31, 2011 and 2010

Note 13. Short-term Investment Securities and Long-term Investment Securities
Held-to-maturity debt securities as of March 31, 2011 and 2010 were as follows:$¥

Japanese Yen in Millions

As of March, 2011

Book value

Fair value

U.S. Dollars in Thousands
DifferenceBook value

Fair value

Difference

Securities whose fair value exceed
their book value on the accompanying
consolidated balance sheets¥1,68 5

¥1,704¥19$20,301$20,541$240

Securities whose fair value do not exceed
their book value on the accompanying
consolidated balance sheets

342,28 3

342,205(78)

4,123,899

4,122,952

(946)

Total

¥343,96 8¥343,909¥(58)$4,144,200$4,143,493$(706)¥

Japanese Yen in Millions

As of March, 2010

Book value

Fair value

Difference

Securities whose fair value exceed
their book value on the accompanying
consolidated balance sheets¥3,72 5

¥3,728¥2

Securities whose fair value do not exceed
their book value on the accompanying
consolidated balance sheets

353,16 1

353,117

(43)

Total

¥356,88 7¥356,845

¥(41)

38

Other securities as of March 31, 2011 and 2010 were as follows:$¥

U.S. Dollars in Thousands

Japanese Yen in Millions

As of March, 2011

Book value

Acquisition cost

DifferenceBook value

Acquisition cost

Difference

Securities whose book value on
the accompanying consolidatedbalance sheets exceed
their acquisition cost
Equity securities¥5,59 7

¥1,770¥3,827$67,443$21,327$46,116

Sub-total

5,59 7

1,770

3,827

67,443

21,327

46,116Equity securities
Debt securities

3,84 1
36,83 84,165
41,886(324)(5,047)46,281
443,841

50,190504,661(3,908)(60,819)

Sub-total

40,68 046,052(5,372)490,123554,851(64,727)

Total¥46,27 8¥47,822¥(1,544)$557,566$576,178$(18,611)

Securities whose book value on
the accompanying consolidatedbalance sheets do not exceed
their acquisition cost¥

Japanese Yen in Millions

As of March, 2010

Book value

Acquisition cost

Difference

Securities whose book value on
the accompanying consolidatedbalance sheets exceed
their acquisition cost
Equity securities
Debt securities¥7,78 4
4,81 4¥2,4494,620¥5,335193

Sub-total

12,59 9

7,069

5,529

Equity securities
Debt securities

3,52 1
30,24 6

3,813
32,682(291)(2,435)Sub-total

33,76 836,495(2,726)

Total¥46,36 8¥43,565¥2,802

Securities whose book value on
the accompanying consolidatedbalance sheets do not exceed
their acquisition cost

[Note1]

Unlisted stocks (¥188 million or $2,266 thousand and ¥188 million in the consolidated balance sheet for the years ended March 31, 2011 and 2010, respectively) which do not havemarket prices and of which future cash flows cannot be estimated are not included since the estimation of fair value is deemed to be extremely difficult.

[Note2]

Information of proceeds from sales of other securities and impairment of securities for the year ended March 31, 2011 were omitted as their amounts are immaterial.

39

Notes to Consolidated Financial Statements
Years ended March 31, 2011 and 2010

Note 14. Derivatives
Derivative contracts not subject to hedge accounting as of March 31, 2011 were as follows:$¥

Japanese Yen in Millions

As of March 31, 2011

Contract amount

Fair value

Unrealized
gain (loss)

U.S. Dollars in Thousands
Contract amount

Fair value

Unrealized
gain (loss)

Exchange forward contracts
Selling Canadian Dollar
Selling British Pound¥1,30 52,70 9

¥(9)
49

¥(9)
47

$15,727
32,649$(109)
591$(109)
568

Non-deliverable forward contracts
Selling South Korean Won

1,16 0(47)(47)

13,981

(571)

(571)

449

(11)

5,414

(140)

3,606

(1,957)43,451(23,582)

497

(89)

5,995

(1,082)

788

(711)

9,495

(8,568)Currency options
Written call options:
U.S. Dollar(Premium)Euro(Premium)
Purchased put options
U.S. Dollar(Premium)Euro(Premium)

75,12 6
43 7
186,67 8
1,64 925,04 258 762,22 6
1,49 9Total[Note]¥(2,779)
No derivative contracts were due after one year.
The fair value as of March 31, 2011 is estimated based on price quoted by financial institutions where we have agreements.

Derivative contracts as of March 31, 2010 were as follows:¥

Japanese Yen in Millions

As of March 31, 2010

Contract amount

Fair value

Unrealized
gain (loss)

Exchange forward contracts
Selling Canadian Dollar
Selling British Pound¥1,83 1
4,84 2

¥(49)
(70)

¥(49)
(70)

Non-deliverable forward contracts
Selling South Korean Won

2,38 8

(155)

(155)

2,315

(920)

2,113

222

145

(76)

898

(404)

2,949

452

Currency options
Written call options:
U.S. Dollar(Premium)Euro(Premium)
Australian Dollar(Premium)
Purchased put options
U.S. Dollar(Premium)Euro(Premium)

160,37 7
1,39 4351,42 9
2,33 62,86 1
69
53,45 91,30 2
117,14 3
2,49 7

Total[Note]¥(1,001)
No derivative contracts were due after one year.
The fair value as of March 31, 2010 is estimated based on price quoted by financial institutions where we have agreements.

40

905,136
5,273
2,249,139
19,868
301,712
7,077
749,713
18,064$(33,486)

Note 15. Retirement Benefits
The Company has a tax approved pension scheme and lump-sum severance payments plan which is a defined benefit plan.
Certain consolidated subsidiaries have defined contribution plans as well as defined benefit plans. The Company and certain
consolidated subsidiaries may also pay extra retirement allowance to employees.
Retirement benefit obligations as of March 31, 2011 and 2010 were as follows:$¥

Japanese Yen in Millions

U.S. Dollars in Thousands

As of March 31,

2011

2010

2011

a . Retirement benefit obligationb . Plan assets¥(29,713)
18,066¥(27,607)
17,682$ ( 3 57 , 9 9 3 )217,665

c . Unfunded retirement benefit obligation(11,647)(9,924)(140,327)

d . Net pension liability recognized in the accompaying
consolidated balance sheets(11,647)(9,924)(140,327)

e . Provision for retirement benefits¥(11,647)¥(9,924)$ ( 1 40 , 3 2 7 )[Note]

Certain consolidated subsidiaries adopt a concise procedure to estimate retirement benefit obligation.

Retirement benefit costs for the years ended March 31, 2011 and 2010 were as follows:$¥

Japanese Yen in Millions

U.S. Dollars in Thousands

2011

2010

2011

a . Service costb . Interest costc . Expected return on plan assets
d . Amortization of actuarial difference¥1,829
776
(437)
1,822

¥1,575
775
(357)
(78)

$ 22 , 0 4 2
9,351(5,276)
21,960e . Retirement benefit costYears ended March 31,

3,990

1,915

48,077

f . Other

858

939

10,340g . Total¥4,848¥2,854$58,418[Note]“a. Service cost” includes retirement benefit costs of the subsidiaries which adopt a concise procedure to estimate retirement benefit obligation.
“f. Other” is mainly contribution amount with related to defined contribution plans.

Assumptions used in calculation of retirement benefits for employees:
Year ended March 31, 2011

a . Method of attributing benefits to years of service:b . Discount rate:c . Expected return rate on plan assets:d . Amortization years of actuarial difference:

Straight-line basis
1.2% to 5.3%
1.3% to 7.5%
Fully amortized in the same fiscal year as incurredYear ended March 31, 2010

a . Method of attributing benefits to years of service:b . Discount rate:c . Expected return rate on plan assets:d . Amortization years of actuarial difference:

Straight-line basis
1.3% to 5.75%
1.5% to 7.5%
Fully amortized in the same fiscal year as incurred

41

Notes to Consolidated Financial Statements
Years ended March 31, 2011 and 2010

Note 16. Income Taxes
Significant components of deferred tax assets and liabilities as of March 31, 2011 and 2010 were summarized as follows:$¥

Japanese Yen in Millions

U.S. Dollars in Thousands

2011

2010

2011

¥30,095¥24,024$362,592

Inventory - write-downs andelimination of unrealized profit

9,862

19,760118,825

Revenue recognition for tax purposes

7,690

-

92,659Other accounts payable and accrued expenses

5,575

7,976

67,176

Provision for retirement benefits

4,351

3,948

52,433

Loss on valuation of investment securities

3,815

4,575

45,967

Accrued enterprise tax

2,600

3,885

31,330

Valuation difference on available-for-sale securities

2,181

-

26,279

Accumulated depreciation expenses

-

3,190

Land

-

2,297

Other

10,323

14,627

124,379

Gross deferred tax assets

76,496

84,286921,644

Valuation allowance(2,763)(286)(33,294)

Total deferred tax assets

73,73383,999888,349

Undistributed retained earningsof subsidiaries and affiliates(7,286)(6,957)(87,788)

Valuation difference on
available-for-sale securities(1,554)(2,244)(18,723)

Other(2,270)(3,675)(27,361)

Total deferred tax liabilities(11,111)(12,877)(133,872)

Net deferred tax assets¥62,621¥71,122$754,477

As of March 31,

Deferred tax assets:
Research and development expenses-

Deferred tax liabilities:[Note]

Amounts for items with a bar were omitted as it is immaterial.

Reconciliation of the statutory tax rate and the effective tax rate for the year ended March 31, 2011 was omitted as the difference
between the statutory tax rate and the effective tax rate after tax effect accounting was equal to or less than a five hundredth of thestatutory tax rate.
Reconciliation for the year ended March 31, 2010 was as follows:
2010

Statutory tax rate
(Reconciliations)
Foreign tax credit on retained earnings of the overseas consolidated subsidiaries
Special deduction applied to the gross research and development expenses
Different tax rates applied to the consolidated subsidiaries
Other

40.6 %
0.3 %(0.3)%(1.1)%(1.7)%
37.8 %

Effective tax rate after tax effect accounting

42

Note 17. Asset Retirement Obligations
Information of asset retirement obligations for the year ended March 31, 2011 was omitted as its amount is immaterial.

Note 18. Real Estate for Rent
Effective as of the fiscal year ended March 31, 2010, the “Accounting Standard for Disclosures about Fair Value of Investment
and Rental Property (ASBJ Statement No.20)” and the “Guidance on Accounting Standard for Disclosures about Fair Value ofInvestment and Rental Property (ASBJ Guidance No.23)” have been adopted. Information of real estate for rent for the years
ended March 31, 2011 and 2010 were omitted as their amounts are immaterial.

Note 19. Segment Information
Year ended March 31, 2011

A. Segment Information
The main business of Nintendo (Nintendo Co., Ltd. (the “Company”) and its consolidated subsidiaries) is developing,
manufacturing, and distributing handheld and home console hardware machines and related software. Development andmanufacturing of products for worldwide use are primarily done by the Company. The Company distributes products in Japan
while distribution in overseas markets is done by each local subsidiary.
Nintendo operates as a single operating segment with each major geographic subsidiary solely responsible for distributing
handheld and home console hardware machines and related software to its local market and there is no difference by product interms of distribution channels or markets. While analysis of product sales results is made by product category or by region,
decision for allocation of the management resources and evaluation of business results are made on a company-wide basis, notbased on a product category or region basis. Therefore, this information is omitted.
Effective as of the fiscal year ended March 31, 2011, the “Accounting Standard for Disclosures about Segments of an Enterpriseand Related information (ASBJ Statement No.17 dated March 27, 2009)” and the "Guidance on the Accounting Standard forDisclosures about Segments of an Enterprise and Related information (ASBJ Guidance No.20 dated March 21, 2008)" have been
adopted.

B. Information about products and services¥

Japanese Yen in Millions

Year ended March 31, 2011

Sales to third parties

Handheld
Hardware¥298,653

Home Console
HardwareHandheld
Software¥242,851

Home Console
Software¥167,068¥221,493

Other¥84,279

Total¥1,014,345$
U.S. Dollars in Thousands

Year ended March 31, 2011

Handheld
HardwareSales to third parties$3,598,233

Home Console
HardwareHandheld
SoftwareHome Console
Software

Other

Total

$2,925,919$2,012,876$2,668,591$1,015,410$12,221,031

43Notes to Consolidated Financial Statements
Years ended March 31, 2011 and 2010

C. Information about geographic areas¥

Japanese Yen in Millions

Year ended March 31, 2011

Japan

Sales
Property, plant and equipment¥167,893¥54,483

The United States

Other¥398,352¥22,689¥448,099¥3,692

Total¥1,014,345¥80,864$
U.S. Dollars in Thousands

Year ended March 31, 2011

Sales
Property, plant and equipment[Note]

Japan$2,022,817$656,423

The United States$4,799,423$273,365

Other$5,398,789$44,486

Total$12,221,031$974,275

Sales are categorized by countries based on the location of the customer.
Property, plant and equipment are categorized by countries based on its location.

D. Information about Major Customers
There were no major customers accounting for over 10% of sales in the consolidated financial statements of income within sales
to third parties.

E. Information about impairment loss of fixed assets in reportable segments
The information was omitted as the Company operates as a single operating segment.

F. Information about goodwill in reportable segments
The information was omitted as the Company operates as a single operating segment.

G. Information about gain from negative goodwill in reportable segments
The information was omitted as the Company operates as a single operating segment.

44

Year ended March 31, 2010

A. Segment Information by Business Categories
The Company and its consolidated subsidiaries operate predominantly in one business category, “the electronic entertainment
products,” which accounted for over 90% of total net sales, operating income or loss and total assets for the year ended March 31,
2010. This information is not required.

B. Segment Information by Geographic Division of the Companies¥

Japanese Yen in Millions
Eliminations
or
corporateJapan

The Americas

Europe

Other

Total

¥231,424
985,649¥640,879
2,225¥481,270
39¥80,791
273¥1,434,365
988,189- ¥1,434,365¥(988,189)-

Total net sales

1,217,074

643,104

481,31081,0652,422,554(988,189)

1,434,365

Operating expenses

922,928

603,303463,298

77,292

2,066,822(989,023)

1,077,798

Operating income¥294,145¥39,801¥18,011¥3,773¥355,732¥834¥356,567¥1,413,259¥324,238¥185,136¥32,106¥1,954,740

Year ended March 31, 2010

Net sales and operating income
Net sales
Sales to third parties
Inter-segment sales

Total assets[Note1]

The following footnotes are applicable for the year ended March 31, 2010.

[Note2]The segmentation of country or region is based on the geographical proximity.
The major countries or regions in “The Americas” are the United States and Canada.
The major countries or regions in “Europe” are Germany, France, the United Kingdom, the Netherlands, Spain and Italy.
The major countries or regions in “Other” are Australia, South Korea, China and Taiwan.

Consolidated¥(193,753) ¥1,760,986

C. Sales to Overseas Customers¥

Japanese Yen in Millions

Year ended March 31, 2010

Sales to overseas customers
Consolidated net sales
Ratio of overseas sales to consolidated net sales

The Americas

EuropeOther¥642,523¥477,931¥86,208

44.8%

33.3%

6.0%

[Note1]

The following footnotes are applicable for the years ended March 31, 2010.

[Note2]“Sales to overseas customers” are the total amount of sales of the Company and consolidated subsidiaries to the customers outside Japan.
The segmentation of country or region is based on the geographical proximity.
The major countries or regions in “The Americas” are the United States and Canada.
The major countries or regions in “Europe” are Germany, France, the United Kingdom, the Netherlands, Spain and Italy.
The major countries or regions in “Other” are Australia, South Korea, China and Taiwan.

45

Total

¥1,206,663¥1,434,365
84.1%

Notes to Consolidated Financial Statements
Years ended March 31, 2011 and 2010

Note 20. Related Party Transactions
Not applicable.

Note 21. Per Share Information$¥

Japanese Yen

2011

2010

¥10,022.26¥606.99¥10,450.33¥1,787.84

Years ended March 31,

Net assets per share
Net income per share

U.S. Dollars

2011$120.75$7.31

Diluted earnings per share are omitted as no residual securities were outstanding as of March 31, 2011 and 2010.
The basis of calculation of net assets per share is as follows:¥

Japanese Yen in Millions$
U.S. Dollars in Thousands

Years ended March 31,

2011

2010

2011

Net income
Amount unrelated to common shareholders
Net income related to common stock¥77,621¥77,621¥228,635¥228,635$935,200$935,200

Number of shares in Thousands

Years ended March 31,

Average number of shares (common stock)

Note 22. Significant Subsequent Events
Not applicable.

Note 23. Supplemental Schedule of Bonds
Not applicable.

46

2011

2010

127,880

127,883

Note 24. Supplemental Schedule of Borrowings
The information of borrowings as of March 31, 2011 and 2010 were as follows:$¥

Japanese Yen in Millions

2011

As of March 31,

U.S. Dollars in Thousands

2010

2011

Short-term loans payable
Long-term loans payable due within one year
Lease obligations due within one year
Long-term loans payable due after one year
Lease obligations due after one year
Other liabilities with interest

¥125
62
94
-

¥125
65
157
-

$1,506
751
1,133
-

Total

¥281

¥347

$3,391[Note]

The average interest rate of “Short-term loans payable” is 1.1%.
The balance and interest rate used for the calculation of the average interest rate of “Short-term loans payable” are those at the end of the period.
The average inter est rates of lease obligations are omitted as the interests equivalent included in total lease payments are allocated to each consolidated fiscal year by straight-line basis.
The due, excluding within one year, of lease obligations falls between April 2012 and September 2013.

As for lease obligations, long-term borrowings and other liabilities with interest, excluding due within one year, repayment
schedule for the next five years after the current consolidated closing date are as follows:$¥

Japanese Yen in Millions

As of March 31, 2011

Lease obligations

U.S. Dollars in Thousands

Due after one year
through two years

Due after two years
through three years

Due after one year
through two years

Due after two years
through three years

¥53

¥40

$649

$483

Note 25. Supplemental Schedule of Asset Retirement Obligations
The amounts of asset retirement obligations for March 31, 2011 and 2010 were less than or equal to a hundredth of the sum ofliabilities and net assets for each year, therefore the information is omitted.

47Notes to Consolidated Financial Statements
Years ended March 31, 2011 and 2010

Note 26. Others
Quarterly information of the consolidated fiscal year ended March 31, 2011 was as follows:¥

Japanese Yen in Millions

Year ended March 31, 2011

Net sales
Income before income taxes and minority interests
Net income

First quarter¥188,646(45,938)¥(25,216)

Second quarter

Third quarter¥174,513
41,956¥23,205¥444,830
84,551¥51,569

Fourth quarter¥206,354
47,364¥28,064¥

Japanese Yen

Year ended March 31, 2011

Net income per shareFirst quarter¥(197.19)

Second quarter

Third quarter¥181.46¥403.26

Fourth quarter¥219.46$
U.S. Dollars in Thousands

Year ended March 31, 2011

First quarter

Net sales
Income before income taxes and minority interests
Net income$2,272,851(553,470)$(303,819)

Second quarter$2,102,572
505,504$279,581

Third quarter

Fourth quarter$5,359,404
1,018,687$621,317$2,486,203
570,661$338,120

Third quarter

Fourth quarter$
U.S. Dollars

Year ended March 31, 2011

First quarter$(2.38)Net income per share

48

Second quarter

$2.19

$4.86

$2.64