UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 20-F‘
È

REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGEACT OF 1934OR
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended March 31, 2010OR
‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934
For the transition period fromtoOR
‘ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934
Date of event requiring this shell company report
Commission file number: 1-7952

Kyocera Kabushiki Kaisha
Kyocera Corporation(Exact name of Registrant as specified in its charter)(Translation of Registrant’s name into English)

Japan

6, Takeda, Tobadono-cho, Fushimi-ku,
Kyoto 612-8501, Japan(Jurisdiction of incorporation or organization)(Address of principal executive offices)

Shoichi Aoki, +81-75-604-3556, kyocera-ir@kyocera.jp, +81-75-604-3557,
6, Takeda, Tobadono-cho, Fushimi-ku, Kyoto 612-8501, Japan(Name, Telephone, E-mail and/Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act.
Title of Each Class

Name of Each Exchange On Which Registered

Common Stock (Shares)*
New York Stock Exchange
Securities registered or to be registered pursuant to Section 12(g) of the Act.
None
(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
None
(Title of Class)
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual
report.
As of March 31, 2010, 183,520,939 shares of common stock were outstanding, comprised of 180,621,137 Shares and 2,899,802 American Depositary Shares(equivalent to 2,899,802 Shares).
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes È No ‘
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934. Yes ‘ No È
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes È No ‘
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required tobe submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that theregistrant was required to submit and post such files). Yes ‘ No ‘
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer andlarge accelerated filer” in Rule 12b-2 of the Exchange Act. (Check One):
Large accelerated filer È
Accelerated filer ‘
Non-accelerated filer ‘
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP È International Financial Reporting Standards as issued by the International Accounting Standards Board ‘ Other ‘
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
Item 17 ‘ Item 18 ‘
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ‘ No È
* Not for trading, but only in connection with the registration of the American Depositary Shares, each representing one share of Common Stock.

TABLE OF CONTENTS
Page

Cautionary Statement Regarding Forward-Looking Statements . . . . . . . . . . . . . . . . . . . . . . . . . . .

4PART I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 1. Identity of Directors, Senior Management and Advisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 2. Offer Statistics and Expected Timetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 3. Key Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Selected Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Capitalization and Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Reasons for the Offer and Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D. Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 4. Information on Kyocera Corporation and its Consolidated Subsidiaries . . . . . . . . . . . . . . . . .
A. History and Development of Kyocera Corporation and its Consolidated Subsidiaries . . . . . . .
B. Business Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D. Property, Plants and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 4A. Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 5. Operating and Financial Review and Prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Operating Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Liquidity and Capital Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Research and Development, Patents and Licenses, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D. Trend Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
E. Off-Balance Sheet Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F. Tabular Disclosure of Contractual Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 6. Directors, Senior Management and Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Directors and Senior Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Board Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D. Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
E. Share Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 7. Major Shareholders and Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Major Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Interests of Experts and Counsel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 8. Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Consolidated Statements and Other Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Significant Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 9. The Offer and Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Offer and Listing Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Plan of Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D. Selling Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
E. Dilution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F. Expenses of the Issue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 10. Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Share Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Memorandum and Articles of Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Material Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D. Exchange Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
E. Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6
6
6
6
6
7
7
7
13
13
15
22
25
27
27
27
55
59
61
62
62
62
62
67
69
70
70
71
71
73
73
73
73
74
74
74
75
75
75
75
75
76
76
76
85
85
85

2

Page

F. Dividends and Paying Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
G. Statement by Experts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
H. Documents on Display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I. Subsidiary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 11. Quantitative and Qualitative Disclosures about Market Risk . . . . . . . . . . . . . . . . . . . . . . . . .
Item 12. Description of Securities Other than Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Warrants and Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Other Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D. American Depositary Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

90
90
90
90
90
92
92
92
92
93

PART II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 13. Defaults, Dividend Arrearages and Delinquencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds . . . . . . . . . .
Item 15. Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 16. [Reserved] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 16A. Audit Committee Financial Expert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 16B. Code of Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 16C. Principal Accountant Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 16D. Exemptions from the Listing Standards for Audit Committees . . . . . . . . . . . . . . . . . . . . . . .
Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers . . . . . . . . . . . . . . . . .
Item 16F. Change in Registrant’s Certifying Accountant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 16G. Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

94
94
94
94
94
94
95
95
96
97
98
98

PART III . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 17. Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 18. Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 19. Exhibits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

101
101
101
101

3

Cautionary Statement Regarding Forward-Looking Statements
This annual report on Form 20-F contains “forward-looking statements” within the meaning of Section 21E of
the U.S. Securities and Exchange Act of 1934. To the extent that statements in this annual report on Form 20-F
do not relate strictly to historical or current facts, they may constitute forward-looking statements. These
forward-looking statements are based upon our current assumptions and beliefs in the light of the information
currently available to us, but involve known and unknown risks, uncertainties and other factors. Such risks,
uncertainties and other factors may cause our actual actions or results to differ materially from those discussed in
or implied by the forward-looking statements. We undertake no obligation to publicly update any forwardlooking statements after the date of this annual report on Form 20-F, but investors are advised to consult any
further disclosures by us in our subsequent filings pursuant to the U.S. Securities Exchange Act of 1934.
Important risks, uncertainties and other factors that may cause our actual results to differ materially from our
expectations are generally set forth in Item 3.D. “Risk Factors” of this annual report on Form 20-F and include,
without limitation:•

general conditions in the Japanese or global economy;•

unexpected changes in economic, political and legal conditions in countries where we operate;•various export risks which may affect the significant percentage of our revenues derived from overseas
sales;•

the effect of foreign exchange fluctuations on our results of operations;•

our ability to launch innovative products and otherwise meet the advancing technical requirements ofour customers;•

intense competitive pressures to which our products are subject;•

manufacturing delays or defects resulting from outsourcing or internal manufacturing processes;•

our research and development not producing desired results;•

companies or assets acquired by us not produce the returns or benefits, or bring in business
opportunities;•

industry demand for skilled employees;•

insufficient protection of our intellectual property;•

expenses associated with licenses we require to continue to manufacture and sell products;•

environmental liability and compliance obligations by tightening of environmental laws andregulations;•

our market or supply chains being affected by terrorism, plague, wars or similar events;•

earthquakes and other natural disasters affecting our headquarters and major facilities;•

credit risk on trade receivables;•

impairment losses on investments in equity securities;•

impairment losses on long-lived assets, goodwill and intangible assets;•

unrealized deferred tax assets and additional liabilities for unrecognized tax benefits;•changes in accounting principles;and other risks discussed under Item 3.D. “Risk Factors” and elsewhere in this annual report on
Form 20-F.
4

Presentation of Certain Information
As used in this annual report on Form 20-F, references to”Kyocera,”“we,”“our” and “us” are to Kyocera
Corporation and, except as the context otherwise requires, its consolidated subsidiaries.
Also, as used in this annual report on Form 20-F:•“U.S. dollar” or “$” means the lawful currency of the United States of America, “yen” or “¥” means
the lawful currency of Japan and “Euro” means the lawful currency of the European Union.

•“U.S. GAAP” means accounting principles generally accepted in the United States of America, and“Japanese GAAP” means accounting principles generally accepted in Japan.

•“ADS” means an America Depositary Share, each representing one share of Kyocera’s common stock,and “ADR” means an American Depositary Receipt evidencing ADSs.

•“fiscal 2010” refers to Kyocera’s fiscal year ended March 31, 2010, and other fiscal years are referred
to in a corresponding manner.

5PART I
Item 1. Identity of Directors, Senior Management and Advisers
Not Applicable.
Item 2. Offer Statistics and Expected Timetable
Not Applicable.
Item 3. Key Information
A. Selected Financial Data
The selected consolidated financial data set forth below for each of the five fiscal years ended March 31 havebeen derived from Kyocera’s consolidated financial statements that are prepared in accordance with accounting
principles generally accepted in the United States of America.
You should read the U.S. GAAP selected consolidated financial data set forth below together with Item 5.
“Operating and Financial Review and Prospects” and Kyocera’s consolidated financial statements included inthis annual report on Form 20-F.
2006
2007
2008
2009
2010
(Yen in millions and shares in thousands, except per share amounts)

For the years ended March 31:
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Profit from operations . . . . . . . . . . . . . . . . . . . . . . .
Income from continuing operations attributable toshareholders of Kyocera Corporation . . . . . . . . .
Net income attributable to shareholders of Kyocera
Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Earnings per share:
Income from continuing operations attributable toshareholders of Kyocera Corporation:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to shareholders ofKyocera Corporation:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average number of shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends declared per share:
Per share of common stock . . . . . . . . . . . . . . . . . . .
Per share of common stock* . . . . . . . . . . . . . . . . . .
At March 31:
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kyocera Corporation shareholders’equity . . . . . . . .
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,173,544
99,695¥1,283,897
135,102¥1,290,436
152,420¥1,128,586
43,419¥1,073,805
63,86066,088101,329

107,244

29,50640,09569,696

106,504

107,244

29,50640,095¥352.44352.21¥538.52537.35¥566.58565.80¥157.27157.23¥218.47218.47371.68371.43566.03564.79566.58565.80157.27157.23218.47218.47

187,514
187,640

188,160
188,573

189,283
189,544

187,618
187,661

183,525
183,525

¥
$

100
0.84

¥1,931,522
33,360115,7031,289,077
1,354,019¥ 62,942¥ 88,860

¥
$

110
0.91

¥2,130,464
7,283
115,7031,514,560
1,581,483¥ 70,155¥ 69,896

¥
$

120
1.10

¥1,976,746
8,298
115,703
1,451,165
1,516,167¥ 75,630¥ 85,101

¥
$

120
1.26

¥1,773,802
28,538
115,703
1,323,663
1,383,088¥ 83,753¥ 63,055

¥
$

120
1.32

¥1,848,717
29,067
115,703
1,345,235
1,407,262¥ 60,602¥ 37,869* Translated into the U.S. dollars based on the exchange rates at each payment date.
Note: On April 1, 2009, Kyocera adopted the Financial Accounting Standards Board’s Accounting Standards Codification
810, “Consolidation” (former SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements—anAmendment of Accounting Research Bulletin No. 51”), and certain reclassification of previously reported amounts have been
made to the consolidated financial statements.

6

The following table shows the exchange rates for Japanese yen per $1.00 based upon the noon buying rate in
New York City for cash transfers in foreign currencies as certified for customs purposes by the Federal Reserve
Bank of New York:For the years ended March 31,

High

Low

Average

Period-end

2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

120.93121.81124.09110.48100.71104.41110.07
96.88
87.80
86.12

113.15116.92114.31100.62
92.93

117.48117.56
99.85
99.15
93.40

93.08
93.31
91.94
93.40
94.51
94.68

86.62
89.41
88.84
88.43
92.03
89.89

89.95
91.10
90.14
90.72
93.45
91.97

93.08
90.38
88.84
93.40
94.24
90.81

For most recent six months

December 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
January 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
February 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The noon buying rate for Japanese yen on June 25, 2010 was $1.00 = 89.35
B. Capitalization and Indebtedness
Not Applicable.
C. Reasons for the Offer and Use of Proceeds
Not Applicable.
D. Risk Factors
You should carefully read the risks described below before making an investment decision.
Risk Related to Kyocera’s Business(1) The continuing recession in the Japanese and global economy may significantly reduce demand for
Kyocera’s products
During fiscal 2010, the global economy showed signs of recovery due to the effects of economic policy and fiscal
measures in various countries, which included packages to stimulate personal consumption. Despite signs of
expansion in corporate production activities along with a recovery in exports, particularly to Asia, and moderate
improvement in personal consumption, the Japanese economy did not show full-scale recovery due to continued
stagnation in capital investment and the employment environment. Kyocera assumes that the uncertain economic
condition may be prolonged and has concerns regarding the impact of a further recession in the Japanese andglobal economy. If the further recession in the global economy has further negative impacts on corporate
investment or consumer spending in the markets for semiconductors, mobile phone handsets and personal
computer related equipment in the electronics industry, and on solar energy products, on which Kyocera issubstantially dependent for its growth, there can be no assurance that Kyocera’s business, consolidated results ofoperations and financial position will not continue to be affected.

7

(2) A substantial portion of Kyocera’s business activity is conducted outside Japan, exposing Kyocera to therisks of international operations
A substantial amount of Kyocera’s investment has been targeted towards expanding manufacturing and sales
channels located outside Japan, such as in the United States, Europe and Asia, which includes the developing andemerging markets in China. Kyocera faces a variety of potential risks in international activities. Kyocera may
encounter unexpected legal or regulatory changes due to unfavorable political or economic factors such as
control on trade, restriction on investment, restriction on repatriation and transfer pricing issue. As thedeveloping and emerging markets of Asia, which includes China, becomes considerably important, Kyocera may
become even more susceptible to these risks.
(3) Since a significant percentage of Kyocera’s revenues has been derived from foreign sales in recent years,
various export risks may disproportionately affect its revenues
Kyocera’s sales to customers located outside Japan accounted for approximately 60% of its total revenues infiscal 2010. Kyocera believes that overseas sales will continue to account for a significant percentage of its
revenues. Therefore, the following export risks may disproportionately affect Kyocera’s revenues:•

a strong yen may make Kyocera’s products less attractive to foreign purchasers;•

political and economic instability or significant economic downturns may inhibit export of Kyocera’s
products;•

Kyocera may experience difficulties in the timeliness of collection of accounts receivable due fromforeign customers and be forced to write off those receivables;•

tariffs and other barriers may make Kyocera’s products less cost competitive;•

shipping and handling costs of Kyocera’s products may increase;•

Kyocera may have difficulty in staffing and managing its international operations; and•the laws of certain foreign countries may not adequately protect Kyocera’s trade secrets and intellectual
property.

(4) Currency exchange rate fluctuations could adversely affect Kyocera’s financial results
Kyocera conducts business in countries outside of Japan, which exposes it to fluctuations in foreign currency
exchange rates. Kyocera may enter into short-term forward exchange transaction to hedge this risk according to
its outlook on future exchange rates; nevertheless, fluctuations in foreign currency exchange rates could have an
adverse effect on its business. Fluctuations in foreign currency exchange rates may affect Kyocera’s consolidated
results of operations, financial position and the value of its foreign assets, which in turn may adversely affectreported earnings and the comparability of period-to-period results of operations. Changes in currency exchange
rates may affect the relative prices at which Kyocera and foreign competitors sell products in the same market. In
addition, changes in the value of the relevant currencies may affect the cost of imported items required in its
operations.
(5) Kyocera sells a diverse variety of products, and in each of its businesses Kyocera is subject to intensecompetitive pressures, including in terms of price, technological change, product development, quality andspeed of delivery, and these pressures are likely to increase in the near term
Kyocera sells a wide variety of products and therefore faces a broad range of competitors from large international
companies to relatively small, rapidly growing and highly specialized companies. Kyocera has a variety ofbusinesses in different industries while many of its competitors specialize in one or more of these business areas.
As a result, Kyocera may not fund or invest in certain of its businesses to the same degree as its competitors, orthese competitors may have greater financial, technical, and marketing resources available to them than the8portion of its business against which they compete. While some of the factors that drive competition vary by
product area, price and speed of delivery are factors in all areas of Kyocera’s business. Price pressure has been
intense, and thus Kyocera predicts that its selling prices will continue to be lower over fiscal 2010 depending
partly on the demand and competition situation. In production businesses in which Kyocera develops, produces
and distributes specialized parts for its customers’ products, its competitive position depends significantly on
being involved early in the process of creating a new product that fits its customers’ needs for each business. To
maintain these competitive advantages, it is critical to maintaining close ties with customers so that Kyocera canensure that it is able to meet required specifications and be the first supplier to create and deliver the product.
Kyocera’s gross margins may be reduced if the business environment changes in a way that Kyocera cannot
maintain these important relationships with customers or its market share or if it is forced in the future to further
reduce prices in response to the actions of its competitors.
(6) Small manufacturing delays or defects resulting from outsourcing or internal manufacturing processes
can adversely affect Kyocera’s production yields and operating results
Kyocera ordinarily outsources the fabrication of certain components and sub-assemblies of its products, often tosole source suppliers or a limited number of suppliers. Several suppliers have manufacturing processes which arevery complex and require a long lead-time. Kyocera may be affected by occasional delays in obtaining
components and sub-assemblies. Kyocera’s revenues derived from sales of these products will also be materiallyand adversely affected if Kyocera is unable to obtain high quality, reliable and timely supply of thesecomponents and sub-assemblies. In addition, any reduction in the precision of these components will causedelays and interruptions in Kyocera’s production cycle.
Within Kyocera’s manufacturing facilities, minute impurities, difficulties in the production process or otherfactors can cause a substantial percentage of its products to be rejected or be non-functional. These factors canresult in lower than expected production yields, which delay product shipments and may materially and adversely
affect Kyocera’s operating results. Because the majority of Kyocera’s costs of manufacture are relatively fixed,
production yield and capacity utilization rate are critical to Kyocera’s consolidated results of operations andfinancial position.
(7) Future initiatives and in-process research and development may not produce the desired results
Kyocera intends to expand its product lines to satisfy customer demand in its target markets. Kyocera may result in
lower revenues based on the products or technologies developed. There can be no assurance that the products derived
from Kyocera’s in-process research and development activities will achieve desired results and market acceptance.
(8) Companies or assets acquired by Kyocera may require more cost than expected for integration, and may
not produce returns or benefits, or bring in business opportunities, which Kyocera expects
In the course of developing its business, from time to time Kyocera considers opportunities to acquire, andundertakes the acquisition of companies or assets through mergers and acquisitions. There can be no assurance
that Kyocera will be able to integrate the operations, products and personnel of the acquired companies with its
own in an efficient manner. Nor can there be any assurance that Kyocera will be able to achieve operational andfinancial returns or benefits, or bring in new business opportunities, which it expects from the acquisition. An
acquired company may not be able to manufacture products or offer services in the amounts or at the efficiency
levels that Kyocera plans, and the demand for such products or services may not be at the levels that Kyocera
anticipates. Failure to succeed in acquisitions could have a material adverse effect on Kyocera’s business.
(9) Industry demand for skilled employees, particularly engineering and technical personnel, exceeds thenumber of personnel available and we may not be able to attract and retain key personnel
Kyocera’s future success depends, in part, on its ability to attract and retain certain key personnel, including
engineering, operational and management personnel. Kyocera anticipates that it will need to hire additional
9skilled personnel in all areas of its business. The competition for attracting and retaining these employees isintense. Because of recent intense competition for these skilled employees, Kyocera may be unable to retain its
existing personnel or attract additional qualified employees in the future.
Risk Related to Legal Restrictions and Litigations(10) Insufficient protection of Kyocera’s trade secrets and patents could have a significant adverse impact on
its competitive position
Kyocera’s success and competitive position depend on protecting its trade secrets and other intellectual property.
Kyocera’s strategy is to rely both on trade secrets and patents to protect its manufacturing and sales processes
and products, but reliance on trade secrets is only an effective business practice insofar as trade secrets remain
undisclosed and a proprietary product or process is not reverse engineered or independently developed. Kyocera
takes certain measures to protect its trade secrets, including executing nondisclosure agreements with certain of
its employees, joint venture partners, customers and suppliers. If parties breach these agreements or the measures
Kyocera takes are not properly implemented, Kyocera may not have an adequate remedy. Disclosure of its trade
secrets or reverse engineering of its proprietary products, processes or devices could materially and affectKyocera’s business, consolidated results of operations and financial position.
Kyocera is actively pursuing patents on some of its recent inventions, but these patents may not be issued. Even
if these patents are issued, they may be challenged, invalidated or circumvented. In addition, the laws of certain
other countries may not protect Kyocera’s intellectual property to the same extent as Japanese laws.
(11) Kyocera may require licenses to continue to manufacture and sell certain of its products, the expense ofwhich may adversely affect its results of operations
From time to time Kyocera has received, and may receive in the future, notice of claims of infringement of otherparties’ proprietary rights and licensing offers to commercialize third party patent rights. Although Kyocera is
not currently involved in any litigations relating to its intellectual property except in the ordinary course of its
business, Kyocera cannot assure that:•

infringement claims (or claims for indemnification resulting from infringement claims) will not be
asserted against Kyocera,•

future assertions against Kyocera will not result in an injunction against the sale of infringing or
allegedly infringing products or otherwise significantly impair its business and results of operations; or•Kyocera will not be required to obtain licenses, the expense of which may adversely affect its results ofoperations.

(12) Changes in our environmental liability and compliance obligations may adversely impact our operations
Kyocera is subject to various environmental laws and regulations in Japan and the other countries, which are
related to greenhouse gas mitigation, air emissions, wastewater discharges, the handling, disposal andremediation of hazardous substances, wastes and certain chemicals used or generated in our manufacturing
process, employee health and safety, labeling or other notifications with respect to the content or other aspects ofour processes, products or packaging, restrictions on the use of certain materials in or on design aspects of our
products or product packaging, and responsibility for disposal of products or product packaging. As well as ourcurrent operations, these laws and regulations can be applied to our past operations and may be applicable to thepast operations of businesses acquired from other companies even if such operations occurred before ouracquisitions. In addition, these laws and regulations which are applied to Kyocera can be more stringent or thescope of the laws and regulations can be broadened in the future due to factors including global climate change.
With respect to greenhouse gas mitigation in particular, international emissions trading regime may be createdbased on the result in onwards of the intergovernmental dialogue on global climate change. Kyocera establishes
10reserves for specifically identified potential environmental liabilities when such liabilities are probable and canbe reasonably estimated. In case we fail to comply with such laws and regulations, we could be required by therelevant governmental organizations to pay penalty costs or remediation compensation. Furthermore, we may
make voluntary payments to compensate for environmental problems if we deem such compensation to benecessary. The cost obligations noted above may adversely affect Kyocera’s results of operations and financial
position.
Risk Related to Disasters or Unpredictable Events(13) Kyocera’s markets or supply chains may be adversely affected by terrorism, plague, wars or similar events
Kyocera, as a global company, has been expanding its business worldwide. At the same time, we will be exposed
to risks of our getting involved in terrorism, plague, war and other similar events. In the case that those eventsoccur, Kyocera’s operating activities would be suspended. Furthermore, there would be delay, disorder orsuspension in Kyocera’s R&D, manufacturing, sales and services. If such delay or disruption occurs andcontinues for a long period of time, Kyocera’s business, consolidated results of operations and financial position
may be affected.
(14) Kyocera’s headquarters and major facilities are subject to devastating effects of earthquakes and othernatural disasters
Kyocera’s headquarters and major facilities including plants, sales offices and R&D centre are located not onlyin Japan but also all over the world. It might be inevitable that Kyocera would suffer from natural disasters suchas earthquakes, typhoons, floods and so on. For instance, if a strong earthquake occurs, Kyocera’s R&D or
manufacturing facilities could be devastated. In this case, Kyocera’s operating activities would be suspended andmanufacturing and shipment would be delayed. Due to this, Kyocera would lose its sales and profits.
Furthermore, Kyocera may incur a great amount of expenses, such as medical care expenses for injured
employees and damage expenses for the damaged machines or facilities. As a consequence, Kyocera’s
consolidated results of operations and financial position may be affected.
Risks Related to Financial and Accounting(15) Kyocera may be exposed to credit risk on trade receivables due to its customers’ worsening financial
condition
Kyocera maintains allowances for doubtful accounts related to trade receivables for estimated losses resulting
from customers’ inability to make timely payments. However, trade receivables in the ordinary operating activity
are not covered by collateral or credit insurance. Therefore, if customers with whom Kyocera has substantial
accounts receivable face difficulty in making payments due to economic downturn, Kyocera’s consolidated
results of operations and financial position may be affected.
(16) Kyocera may have to incur impairment losses on its investments in debt and equity securities
Kyocera holds investments in equity securities of companies not affiliated with itself, which Kyocera generally
holds on a long-term basis for business relationship purposes. A substantial portion of these investments consistsof shares of common stock of public companies in Japan, such as financial institutions and other companies
including KDDI Corporation, a Japanese telecommunication service provider. Kyocera Corporation’s equity
interest in KDDI Corporation was 12.76%. If there are certain declines in the fair value, i.e., the market price, ofthe shares of those companies that Kyocera holds over a period of time, and it determines that such declines areother-than-temporary, Kyocera will need to record an impairment loss. For some of the equity securities Kyocera
owns, including the shares of KDDI Corporation, Kyocera intends to keep its ownership at the current level inlight of the importance of its business relationships with the issuers of these equity securities. For other equity
11

securities in its portfolio, although, with periodical check, Kyocera may dispose of some securities which lack
merit for Kyocera, market conditions may not permit it to do so at the time, speed or price it may wish.
(17) Kyocera may have to incur impairment losses on long-lived assets, goodwill and intangible assets.
Kyocera has many long-lived assets, goodwill and intangible assets. Long-lived assets and intangible assets withdefinite useful lives are tested for impairment whenever events or changes in circumstances indicate that its
carrying amount may not be recoverable. Goodwill and intangible assets with indefinite useful lives, rather thanbeing amortized, are tested for impairment at least annually, and also following any events and changes incircumstances that might lead to impairment.
In case the above assets are considered to be impaired, a loss on impairment is recognized based on the amountby which the carrying value exceeds the fair value of them. Such losses on impairment may materially affectKyocera’s consolidated results of operations and financial position.
(18) Deferred tax assets may not be realized or additional liabilities for unrecognized tax benefits may berequired.
Kyocera records valuation allowances against deferred tax assets on the estimation of future taxable income andfeasible tax planning strategies to adjust their carrying amounts when it believes that it is more likely than notthat the assets will not be realized. If future taxable income is lower than expected due to future market
conditions or poor operating results, significant adjustments to deferred tax assets may be required.
Kyocera records liabilities for unrecognized tax benefits based on the premise of being subject to income tax
examination by tax authorities, when it is more likely than not that tax benefits associated with tax positions will
not be sustained. Actual results such as settlements with tax authorities may differ from Kyocera’s recognition.
(19) Changes in accounting standards may adversely impact our results of operations and financial positions.
Adoptions of new accounting standards, or changes in accounting standards may have an affect on Kyocera’s
consolidated results of operations and financial position. In addition, if Kyocera modifies its accounting softwareor information systems to introduce changes in accounting standards, certain investments or expenses may berequired.
Other Risks(20) As a holder of ADSs, you will have fewer rights than a shareholder has and you will have to act throughthe depositary to exercise those rights
The rights of shareholders under Japanese law to take various actions, including voting their shares, receiving
dividends and distributions, bringing derivative actions, examining a company’s accounting books and records
and exercising appraisal rights, are available only to holders of record. Because the depositary, through its
custodian agents, is the record holder of the Shares underlying the ADSs, only the depositary can exercise thoserights in connection with the deposited Shares. The depositary will make efforts to vote the Shares underlying
your ADSs as instructed by you and will pay to you the dividends and distributions collected from us. However,in your capacity as an ADS holder, you will not be able to bring a derivative action, examine our accounting
books and records or exercise appraisal rights through the depositary.
(21) Rights of shareholders under Japanese law may be more limited than under the law of other jurisdictions
Our Articles of Incorporation, Regulations of the Board of Directors, Regulations of the Board of Corporate
Auditors and the Corporation Act of Japan govern our corporate affairs. Legal principles relating to such matters12

as the validity of corporate procedures, directors’ and officers’ fiduciary duties and shareholders’ rights may bedifferent from those that would apply if we were a U.S. company. Shareholders’ rights under Japanese law may
not be as extensive as shareholders’ rights under the laws of the United States. You may have more difficulty inasserting your rights as a shareholder than you would as a shareholder of a U.S. corporation. In addition,
Japanese courts may not be willing to enforce liabilities against us in actions brought in Japan which are based
upon the securities laws of the United States or any U.S. state.
(22) Because of daily price range limitations under Japanese stock exchange rules, you may not be able to sell
your shares of our Common Stock at a particular price on any particular trading day, or at all
Stock prices on Japanese stock exchanges are determined on a real-time basis by the equilibrium between bids
and offers. These exchanges are order-driven markets without specialists or market makers to guide priceformation. To prevent excessive volatility, these exchanges set daily upward and downward price fluctuation
limits for each stock, based on the previous day’s closing price. Although transactions may continue at the
upward or downward limit price if the limit price is reached on a particular trading day, no transactions may takeplace outside these limits. Consequently, an investor wishing to sell at a price above or below the relevant daily
limit may not be able to sell his or her shares at such price on a particular trading day, or at all.
(23) Our shareholders of record on a record date may not receive the dividend they anticipate
The customary dividend payout practice of publicly listed companies in Japan may significantly differ from thepractice widely followed in foreign markets. Our dividend payout practice is no exception. The declaration andpayment of annual dividends requires the approval of shareholders of our common stock at the annual general
meeting of shareholders held in June of each year. Our board of directors decides and submits a proposal for anannual dividend declaration a few weeks before the annual general meeting. If the shareholders’ approval isgiven, the annual dividend payment is made to shareholders of record as of the record date for such payment,
which is March 31, whether or not the shareholders are still holding shares after such record date. The declarationand payment of interim dividends is decided by our board of directors and does not require the approval ofshareholders. The interim dividend payment is made to shareholders of record as of the record date for suchpayment, which is September 30, whether or not the shareholders are still holding shares after such record date.
Shareholders of record as of the applicable record date may sell shares in the market after the record date with theanticipation of receiving a certain dividend payment. However, the date of declaration of interim dividends is
decided by our board, and the declaration of annual dividends is approved by our shareholders only in June,
based upon a proposal submitted by our board. As such, we may have announced a dividend forecast before theapplicable record date; but, in making a decision on the dividend declaration, neither our shareholders nor ourboard of directors are legally bound by such forecast. Therefore, our shareholders of record on the record dates
for interim or annual dividends may not receive the dividend they anticipate.
(24) Foreign exchange fluctuations may affect the dollar value of our ADSs and dividends payable to holdersof our ADSs
Market prices for our ADSs may fall if the value of the yen declines against the U.S. dollar. In addition, the U.S.
dollar amount of cash dividends and other cash payments made to holders of our ADSs would be reduced if thevalue of the yen declines against the U.S. dollar.
Item 4.

Information on Kyocera Corporation and its Consolidated Subsidiaries

A. History and Development of Kyocera Corporation and its Consolidated Subsidiaries
Kyocera Corporation is a joint stock corporation that was incorporated under the laws of Japan in 1959 with thename Kyoto Ceramic Kabushiki Kaisha. Its name was changed to Kyocera Kabushiki Kaisha (or Kyocera
Corporation) in 1982. Our corporate headquarters is at 6 Takeda Tobadono-cho, Fushimi-ku, Kyoto 612-8501,
Japan. Our telephone number is +81-75-604-3500.
13

Our business originally consisted of the manufacture of ceramic parts for electronic equipment. In the 1960s, we
expanded our business and technology horizontally into the design and production of fine ceramic parts, ceramic
integrated circuit (IC) packages and electronic components. In the 1970s, we began to produce applied ceramic
products, including cutting tools, ceramic parts for medical and dental uses, jewelry and solar energy products.
In the 1980s, we diversified into new strategic fields. In 1982, we merged with Cybernet Electronics Corporation,a telecommunications equipment manufacturer in which we had made an equity investment three years earlier.
We also played a leading role in the establishment of DDI Corporation (currently KDDI Corporation), which has
become one of Japan’s leading providers of telecommunications services. In 1989, we gained a presence in theelectronic connector market through our acquisition of Elco International Corporation (currently Kyocera Elco
Corporation).
In the 1990s, we strengthened our position as a globally integrated electronic components manufacturer throughour acquisition of AVX Corporation, a maker of capacitors and other passive electronic components, in January
1990. In the middle of the 1990s, Kyocera developed two main business categories, “the Components Business,”in which Kyocera provides parts and devices such as fine ceramics parts, semiconductor parts, applied ceramic
products and electronic components and devices to mainly electronic equipment manufacturers in information andcommunications fields, and “the Equipment Business,” in which Kyocera manufactures and sells
telecommunications equipment and information equipment, such as mobile phone handsets, PHS-related products,
copier machines, multifunctional peripherals and ECOSYS printers to distributors or directly to customers.
Since 2000, we have further enhanced our position as a market leader in telecommunications and informationequipment. In February 2000, we acquired the code division multiple access (CDMA) mobile phone handset
business from QUALCOMM Inc. and established our U.S. subsidiary, Kyocera Wireless Corp., which wasmerged into Kyocera Communications, Inc. in April 2010. In April 2000, we invested in Kyocera Mita
Corporation, a manufacturer of copier machines and other document solutions equipment, and made it a whollyowned subsidiary. In April 2002, we transferred Kyocera Corporation’s printer business to Kyocera Mita
Corporation to further enhance our information equipment business by pursuing group synergies.
With the aim of becoming a more global enterprise and enhancing our profitability, we have been expanding our
production in China located in Shanghai and Dongguan since the middle of the 1990s. Kyocera also established asales company, Kyocera (Tianjin) Sales & Trading Corporation, in March 2003 to cultivate the Chinese market
through enhancing our marketing ability for both our products manufactured in China as well as our products
imported into China. In addition, we established a subsidiary, Kyocera (Tianjin) Solar Energy Co., Ltd., to assemble
solar modules, production of which commenced in November 2003, and to respond to market needs swiftly.
In August 2003, we made Kinseki, Limited (currently Kyocera Kinseki Corporation), a major producer ofartificial crystal related products, a wholly-owned subsidiary through a share exchange to strengthen ourElectronic Device Group. In April 2004, Kyocera integrated the marketing division of Kyocera Kinseki
Corporation was merged into the marketing division of the electronic components of Kyocera Corporation andthe manufacturing division of crystal related components of Kyocera Corporation was transferred to Kyocera
Kinseki Corporation through corporate splits.
To meet with strong demand for solar energy products in Europe, Kyocera established Kyocera Solar Europe
S.R.O. for the assembling of solar modules in the Czech Republic in April 2005.
In April 2008, Kyocera acquired the mobile phone related business of SANYO Electric Co., Ltd. to strengthen
and improve the profitability of the Telecommunications Equipment Group.
For further enhancement of sales channel of the Information Equipment Group, Kyocera Mita Corporation madeTA Triumph-Adler AG, a leading specialist in the information technology business and a distributor of printersand multifunctional peripherals in Germany, a subsidiary through the voluntary public takeover offer in January
2009.
14

For a discussion of recent and current capital expenditures, please see Item 5. “Operating and Financial Review
and Prospects” of this annual report on Form 20-F. We have had no recent significant divestitures nor any
significant divestitures currently being made.
B. Business Overview
Overview
Kyocera is engaged in numerous high-tech fields, from fine ceramic components to electronics devices,
equipment, services and networks. Our manufacturing and distribution operations are conducted worldwide. Asof March 31, 2010, we have 173 subsidiaries and 4 affiliates outside Japan and 29 subsidiaries and 6 affiliates inJapan. Our customers include individuals, corporations, governments and governmental agencies. For
information on our sales by category of activity and information on our sales by geographic area and productsegment, please see Item 5.A. “Operating Results” of this annual report on Form 20-F.
Operations
Kyocera categorizes its operations into seven reporting segments: (1) Fine Ceramic Parts Group,(2) Semiconductor Parts Group, (3) Applied Ceramic Products Group, (4) Electronic Device Group,(5) Telecommunications Equipment Group, (6) Information Equipment Group, and (7) Others.
Our principal products and services offered in each reporting segment are shown below.
(1) Fine Ceramic Parts Group
Information & Telecommunication Components,
Sapphire Substrates,
Components for Semiconductor Processing Equipment,
Components for LCD Manufacturing Equipment,
Automotive Components,
General Industrial Ceramic Components(2) Semiconductor Parts Group
Ceramic Packages for Crystal and SAW Devices,
CCD/CMOS Sensor Ceramic Packages,
LSI Ceramic Packages,
Wireless Communication Device Packages,
Optical Communication Device Packages and Components,
Organic Multilayer Packages and Substrates(3) Applied Ceramic Products Group
Residential and Industrial Solar Power Generating Systems,
Solar Cells and Modules,
Cutting Tools, Micro Drills,
Medical and Dental Implants,
Jewelry and Fine Ceramic Application Products(4) Electronic Device Group
Ceramic Capacitors, Tantalum Capacitors,
SAW Devices, RF Modules, EMI Filters,
15

Timing Devices such as TCXOs, Crystal Units, Clock Oscillators and Ceramic Resonators,
Connectors,
Thermal Printheads,
Inkjet Printheads,
Amorphous Silicon Photoreceptor Drums,
Liquid Crystal Displays (LCDs)(5) Telecommunications Equipment GroupCDMA Mobile Phone Handsets,
Personal Handy Phone System (PHS) Related Products such as PHS Mobile Phone Handsets and PHS Base Stations,
Wireless Broadband Systems such as WiMAX Associated Products(6) Information Equipment Group
Color and Black & White Office Equipment such as ECOSYS Printers and Multifunctional Peripherals,
Wide Format Multifunctional Systems,
Printer and Multifunction Peripherals Supplies,
Business Solution Services such as Managed Print Service(7) Others
Telecommunications Engineering Business,
Integration Business on Information Systems and Network Infrastructures,
Data Center Business,
Management Consulting Business,
Chemical Materials for Electronic Components, Electrical Insulators, Molded Products,
Real Estate Business(1) Fine Ceramic Parts Group
Products in this reporting segment are widely used in the computing, telecommunications, automotive andvarious other industrial sectors. These products are made from a variety of ceramic materials, such as siliconcarbide, silicon nitrides and zirconia as well as alumina, utilizing their characteristics of heat resistance,
corrosion resistance and wear resistance.
Products Kyocera develops, manufactures and sells in this reporting segment include substrates, which are thinceramic bases used by manufacturers for hybrid IC foundations. Kyocera also develops, manufactures and sells
substrates for thermal printheads, thin film ceramic/alumina tape substrates for chip resistors, substrate for HDD
thin film magnetic heads, sapphire substrates for LCD projectors and LEDs, components for semiconductor
processing equipment, components for LCD manufacturing equipment, engine components for the automobile
industry, mechanical seals for pumps, friction tight discs and thread guides for yarn texturing machines in the
textile industry, rings for fishing rods, nozzles and parts for papermaking machinery.
(2) Semiconductor Parts Group
Kyocera develops, manufactures and sells inorganic (ceramic) and organic packages and substrates in thisreporting segment.
Ceramic packages have the characteristic of being extremely air tight, and can be small and thin, while also
having exceptional heat resistance and heat dissipation. In addition, they have good high frequency properties

16

and facilitate the embedding of passive components. Kyocera supplies various ceramic packages and components
capitalized on material’s characteristics. Major products in this reporting segment are ceramic packages forcrystal and SAW devices, CCD/CMOS sensor ceramic packages, LSI ceramic packages such as ball grid arraypackages and optical communication device packages and ceramic parts for fiber-optic communications
connectors. Ceramic packages for crystal and SAW devices are used for SAW filters and temperaturecompensated crystal oscillators (TCXOs), which are mostly inserted into mobile phone handsets. CCD/CMOS
sensor ceramic packages are mainly used in camera-equipped mobile phone handsets and digital still cameras.
Ball grid array packages are used in MPUs and other logic ICs, which are mainly inserted into high-end servers.
In the organic package business, Kyocera supplies organic flip-chip packages for high-end application specificintegrated circuits (ASICs) and system in a package (SiP) substrates used in mobile phone handsets.
(3) Applied Ceramic Products Group
This reporting segment consists of four product lines: 1) Solar Energy Products, 2) Cutting Tools, 3) Medical and
Dental Implants, 4) Jewelry and Applied Ceramic Related Products.
1) Solar Energy Products
Kyocera develops, manufactures and sells solar cells and modules, applied solar cell products and residential andindustrial solar power generating systems. We concentrate the manufacturing of the solar cells inJapan, and assemble modules in global quadripartite production system. The solar module production isconducted in Japan, China, the Czech Republic and Mexico.
In order to meet vigorous demand for solar energy related products, we established a new solar cell plant in Yasu,
Shiga prefecture in Japan in March 2010 and expect to expand production volume of solar cells by 50% in fiscal
2011 compared with fiscal 2010. We also plan to start production of solar modules in San-Diego, United Statesand expect to expand our solar modules production capacity in China in fiscal 2011.
2) Cutting Tools
Kyocera also develops, manufactures and sells cutting tools made from composite materials based on ceramics
and metal. Cutting tools are used for metal processing in industrial production, particularly in the automotive
industry.
3) Medical and Dental Implants
In our operate Medical and Dental Implants business, we produce a wide range of products such as medical anddental implants, artificial knee joint replacement systems, and various materials helping heal hip fractures bycombinations of material, processing technologies of ceramics and titanium alloys.
4) Jewelry and Applied Ceramic Related Products
In addition, Kyocera develops, manufactures and sells recrystallized jewelry comprises mainly synthetic
emeralds, alexandrines and rubies. These stones are manufactured using a single crystal growth technology
developed by us, and are chemically and physically equivalent to natural stones. Kyocera also develops, produces
and sells applied ceramic related products such as kitchen accessories utilizing ceramic characteristics of wear
resistance and corrosion resistance against acidity and alkalinity.
(4) Electronic Device Group
Kyocera develops, manufactures and sells high quality and cost competitive electronic components and devices
for the information and communication market. This field creates demand for miniaturization, low voltage, high17

frequency and low energy consumption, and we develop, manufacture and sell high-value-added products suchas miniature ceramic capacitors with high capacitance, tantalum capacitors, RF modules, miniature timing
devices like TCXOs and connectors for digital consumer equipment such as mobile phone handsets and PCs. We
also deliver thin-film products utilizing our thin-film device technologies such as thermal printheads, amorphoussilicon photoreceptor drums and LCDs for office automation equipment and industrial equipment.
We are strengthening our manufacturing and sales in China to enhance price competitiveness and to cultivate
new markets. We produce ceramic capacitors in China and aim to expand sales in China through the sales
subsidiaries in China.
We also develop businesses by pursuing synergies with subsidiaries. AVX Corporation, which develops,
manufactures and sells ceramic capacitors, tantalum capacitors and other passive components for information andcommunication equipment, has a global manufacturing and sales network. AVX Corporation sells products ofKyocera’s Electronic Device Group and pursues synergies with the development and manufacturing in ourceramic capacitor business.
(5) Telecommunications Equipment Group
This reporting segment includes CDMA mobile phone handsets business and telecommunication systemequipment business such as PHS mobile phone handsets and base stations. Mobile phone handsets are produced
and distributed mainly for KDDI Corporation in Japan, as well as for SPRINT NEXTEL CORPORATION andother U.S. telecommunication service providers in the overseas market. We also develop, manufacture and sellbase stations, terminals and handsets for WILLCOM, Inc., which provides PHS services and UQCommunications Inc., which provides WiMAX wireless broadband system.
In the mobile phone handsets business, with the objective of further strengthening the CDMA mobile phonehandset business, Kyocera acquired the mobile phone business of SANYO in April 2008 and streamlined
operations, through reorganization of the sales and development systems.
In the telecommunication system equipment business, we focus on development and sales of handsets and basestations capable of higher speed data transmission. In addition to PHS business, we are expanding sales of
products for WiMAX, which commenced services from 2009 in Japan. We also develop equipment compatible
with Long Term Evolution (LTE) service, a next generation communication protocol.
(6) Information Equipment GroupThe major products in this reporting segment comprise page printers, copying machines and multifunctional
peripherals. Our page printers are marketed under the name of “ECOSYS” with a focus on the concepts of longlife cycle, ecology and economy, which use our in-house amorphous silicon photoreceptor drums.
Kyocera Mita Corporation develops, manufactures and sells the products in this reporting segment. Kyocera
Mita manufactures hardwares of page printers, copying machines and multifunctional peripherals in China inorder to strengthen our price competitiveness. Development and production bases of consumables are centralizedin Japan to pursue optimization and efficiency of production and development systems.
For sales, Kyocera Mita continues to increase the coverage of dealers through proactive mergers and acquisitions
overseas.
(7) Others
This reporting segment includes revenues from telecommunication network systems. This segment also develops,
manufactures and sells electronic component materials, electric insulators and synthetic resin molded products.
18

Kyocera Communication Systems Co., Ltd. operates a total telecommunications engineering business, fromsystem development to design, construction and maintenance services. In addition, Kyocera Communication
Systems Co., Ltd. provides data center services for mobile phone content distribution services and IT
solutions business for business users by developing new products featuring network services as well as system
integration business. Kyocera Communication Systems Co., Ltd. also operates management consulting businessbased on operating of “Amoeba Management System,” which is Kyocera’s unique management method.
Kyocera Chemical Corporation develops new products by pursuing synergies with fine chemical technologies
and our components technologies such as those employed by the Electronic Device Group.
Sales and Distribution
Kyocera products are marketed worldwide by our sales personnel, as well as by sales companies within ourgroup, and by independent distributors. We have regional sales and design application personnel in strategic
locations to provide technical and sales support for customers and distributors. We believe that this combinationof distribution channels leads to a high level of market penetration and efficient coverage of services for ourcustomers.
Most of the sales in the Fine Ceramic Parts Group, the Semiconductor Parts Group and the Electronic Device
Group are made directly to component and equipment manufacturers who incorporate them into their own
products.
In the Applied Ceramic Products Group, solar energy products for residential use and public/industrial use aresold primarily to users via sales subsidiaries, distributors and their franchise chain. Cutting tools are sold to users
such as automobile parts manufactures through wholesale dealers and distributors. Jewelry and applied ceramic
related products are sold mainly through direct retail shops, as well as through distributors. Dental implants,
artificial bones and joint prostheses are sold mainly to dental clinics and hospitals through distributors.
In the Telecommunications Equipment Group, we primarily sell products directly to communications carriers inJapanese and overseas markets. Our key sales destinations are KDDI Corporation, SPRINT NEXTEL
Corporation, WILLCOM, Inc. and UQ COMMUNICATIONS Inc.
The Information Equipment Group markets products such as ECOSYS printers, copier machines andmultifunctional peripherals mainly through distributors and wholesalers both in Japan and abroad.
In the Others reporting segment, services from the telecommunications engineering business and the data center
business of Kyocera Communication Systems Co., Ltd., as well as from our management consulting business areprovided directly to customers and users. Electronic materials and components from Kyocera Chemical
Corporation are sold directly to secondary manufacturers who incorporate them into their own products.
Domestic sales are made in the yen, while overseas sales are made in a variety of currencies, but predominantlyin the U.S. dollars and the Euro.
Sources and Availability of Raw Materials and Supplies
We purchase a variety of raw materials and other materials for our businesses.
The principal raw materials include alumina, zirconia, silicon nitride, silicon particles, nickel powder and epoxy
resins. These raw materials are used mainly in the manufacturing of products for the Components Business. They
are also the main materials supplied for use in key components such as chip sets and LCDs in the Equipment
Business.

19

Our basic policy is to procure raw materials and other materials from several companies, though we may use asingle supplier if (1) the final customer selects the material supplier; or (2) the number of suppliers who candeliver high-quality raw materials or other materials to ensure the high quality of final products is limited.
The purchase price of these raw materials and other materials fluctuates depending on the supply-demandsituation, as well as the rising cost of certain raw materials and fuel, among others. We work hard to lessen theeffect of these fluctuations and to absorb rising costs by making steady internal improvements, including cost
reductions. We have also concluded long-term agreements with suppliers for certain raw materials aimed atensuring stable supply to meet plans to increase production, and a fair purchase price.
In fiscal 2010, we procured a sufficient level of raw materials and other materials to carry out our productionplans, and we do not have any concern about shortage of raw materials and supplies during fiscal 2011.
Patents and Licenses
Our success and competitive position depend on a number of significant patents, licenses and trade secrets
relating to our manufacturing and sales processes and products. All of Kyocera’s intellectual properties are
considered to be important. However, Kyocera believes that neither its expiration nor termination of any specificintellectual properties would affect significant impact on Kyocera’s entire operation. The following table sets
forth information, as of March 31, 2010, with respect to our significant patents and license agreements.
(a) License permitted to produce products
Counterparty

Qualcomm Incorporated

Country

United States

Contents

License under patents
regarding mobile phone

PeriodFrom August 31, 1996 topatent expiration(b) License—cross agreements
Counterparty

Canon Incorporated

CountryJapan

Contents

License under patents
regarding electric photo
printer

PeriodFrom April 1, 2002 topatent expiration

Competitive Position(1) Fine Ceramic Parts Group
Since our founding, Kyocera has worked continuously to develop fine ceramic materials and to cultivate newmarkets. At present, we provide fine ceramic products to a wide array of industries, notably the information andcommunication market, the industrial machinery market and the automotive market.
Although competitors in this reporting segment are mainly Japanese manufacturers and differ in each market,
Kyocera has established as a market leader through a competitive advantage in materials technology,
accumulated since our founding, and in outstanding production technology and capability, which enables us tomeet customer requirements, particularly in terms of product dimension, size and amount. We also boast aninternal integrated system from fundamental research to next-generation product development through our R&D
divisions, and this differentiates us from the competitors.
(2) Semiconductor Parts GroupIn this reporting segment, our goal is to further strengthen our competitive position in both the ceramic andorganic package businesses in the global market. To achieve this, we strive to provide high-value-added products
20and to develop new applications such as wireless and optical communications in the telecommunications market,
and in the digital consumer equipment, automotive and medical industries, etc.
In the ceramic package business, Kyocera is already one of the global leaders in packages for crystal and SAW
devices and CCD/CMOS sensor packages. We also aim to be a market leader in other ceramic package areas andto increase customer satisfaction by our developing and manufacturing expertise.
In the organic package field, Kyocera SLC Technologies Corporation (KST) produces flip-chip packages
for servers, routers and game consoles. KST also produces system in package substrates for mobile phonehandsets. In the flip-chip packages market, fine design and high reliability are required, and we aim to become
the leading company in this technology on a global basis. In this market, we have several competitors which
are Japanese and Asian manufactures. Based on engineering technology for fine pitch and small-and-thin, weplan to expand our market share.
(3) Applied Ceramic Products GroupIn the solar energy business, where the market is expanding rapidly supported by enhanced environmental
awareness on a global basis, many companies have entered into the market and the competition is becoming
intense. Kyocera is expanding its production capacity in each site to meet increasing demand of solar energy
products on a global basis. Also, we manufacture products in-house through silicon casting to cell and module
processes, and can afford to reduce costs and enhance efficiency in every process. Kyocera has established acompetitive advantage in higher conversion efficiency of multi-crystalline solar cells and long-term productreliability, which is accumulated by our experience and know how based on over 30 years of solar energy
products sales.
We are also one of the largest suppliers of cutting tools in Japan, with the major application being for the
automotive industry. Although we have many global competitors, we will work to expand sales of new products
in order to further increase our share in the Japanese and Asian markets.
(4) Electronic Device Group
Kyocera develops, manufactures and sells various capacitors, timing devices, connectors and thin-film products.
One of our competitive advantages is that we can supply a wide variety of components compared with ourcompetitors. Though we have many competitors in ceramic capacitor business, not only in Japan but also Asia,and the market is particularly competitive in terms of price, quality and delivery.
Kyocera Kinseki Corporation and AVX Corporation, our subsidiaries, are a one of major suppliers in the global
timing devices market and the tantalum capacitors market, respectively. We are also one of major suppliers inthin-film products, such as thermal printheads and amorphous silicon photoreceptor drums, which are mainly
used in information equipment, notably printers, copying machines and multifunctional peripherals. Amorphoussilicon photoreceptor drums have outstanding resistance to wear compared with organic photoconductor (OPC)
drums. Incorporating our amorphous silicon photoreceptor drums into information equipment helps realize
longer lasting products compared to competition.
(5) Telecommunications Equipment GroupIn the Japanese market, our main competitors for mobile phone handsets are Japanese manufacturers. In themobile phone handset market outside Japan, Kyocera competes with European, U.S. and Asian manufacturers.
Kyocera acquired the mobile phone handset business of SANYO in April 2008. We aim to further strengthen
development, manufacturing and sale of CDMA handsets worldwide. In terms of telecommunication systemequipment business such as PHS related products, our main competitors are Japanese manufacturers, however weare a market leader in PHS handsets and base stations businesses.
21

(6) Information Equipment GroupWe have many competitors in Japan and abroad in the information equipment business, which includes printers,
copying machines and multifunctional peripherals. Although the scale of sales in this reporting segment isrelatively small compared with our competitors, and our global market share is not high, our major strength is ourability to differentiate our products from those of the competitors.
Our products are based on our unique ECOSYS concept that provides long life cycle and thus environmental
friendliness, while also having the benefit of low running costs for users, by utilizing our highly durable
amorphous silicon photoreceptor drum with exceptional abrasion resistance. Our ECOSYS concept is used in the
majority of our printers, copying machines and multifunctional peripherals, in both black & white and color, andfrom low-speed to high-speed models. These products are recognized as green products for the office,particularly in Europe, where environmental awareness is particularly high. We also have been increasing thecoverage of our dealers through proactive mergers and acquisitions overseas.
Government Regulation
There are various governmental regulations specifically applicable to industries in which Kyocera operates,
including regulations relating to business and investment approvals, export regulations, tariffs, intellectual
property, consumer and business taxation, exchange controls, and material procurement in public works. We do
not believe that such governmental regulations currently have significant effects on Kyocera’s business.
Kyocera is also subject to various regulations concerning the environment of the countries where we operate.
These regulations cover air emissions, wastewater discharges, the handling, disposal and remediation of
hazardous substances, wastes and certain chemicals used or generated in our manufacturing process, employee
health and safety, labeling or other notifications with respect to the content or other aspects of our processes,
products or packaging, restrictions on the use of certain materials in or on design aspects of our products or
product packaging, and responsibility for disposal of products or product packaging. They also include several
regulations for chemical substance in products, such as the European Union Directive on the Restriction on the
Use of Certain Hazardous Substances in Electrical and Electronic Equipment (RoHS Directive), the European
Union Directive on Waste Electrical and Electronic Equipment (WEEE Directive), the European Union’s
Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), and similar regulations requiredin other countries and areas including China. Based on our periodic reviews of the operating policies andpractices at all of our facilities, we believe that our operations are currently in substantial compliance, in allmaterial respects, with all applicable environmental laws and regulations and that the cost of continuing
compliance will not have a material effect on our financial condition or results of operations.
In addition, AVX Corporation, a subsidiary in the United States, is subject to federal, state and local laws andregulations concerning the environment in the United States and to the environmental laws and regulations of theother countries in which it operates. Specifically, AVX Corporation is subject to oversight by the United States
Environmental Protection Agency (EPA), and is currently engaged in ongoing negotiations with the EPA, state
governmental agencies and other private parties with respect to various clean-up and remediation activities. AVX
Corporation is not involved in any pending or threatened proceedings that would require curtailment of its
operations, and based on its periodic reviews of the operating policies and practices at its facilities, believes thatits operations are currently in substantial compliance, in all material respects, with all applicable environmental
laws and regulations and that the cost of continuing compliance will not have a material effect on its financial
condition or results of operations.
C. Organizational Structure
We had 212 subsidiaries and affiliates as of March 31, 2010. Our management structure is based on a businesssegment structure. Therefore, the management of each segment is conducted uniformly regardless of whether ouroperations are conducted by the parent company or by one of our subsidiaries.
22

The following table sets forth information, as of March 31, 2010, with respect to our significant subsidiaries.
Country ofIncorporation

Percentage
held by
KyoceraKyocera Industrial Ceramics Corp. . . . . . . . . . . . . United States

100.00%

Manufacture and sale of fineceramic-related products andthin-film devices

Name

Main Business(1) Fine Ceramic Parts Group(2) Semiconductor Parts Group
Kyocera SLC Technologies Corporation . . . . . . . .

Japan

100.00%Development, manufactureand sale of organic multilayer
printed circuit boards

Shanghai Kyocera Electronics Co., Ltd. . . . . . . . . .

China

100.00%

Manufacture and sale of fineceramic-related products andelectronic devices

100.00%

Manufacture and sale of fineceramic-related products

Kyocera America, Inc. . . . . . . . . . . . . . . . . . . . . . . United States(3) Applied Ceramic Products Group
Kyocera Solar Corporation . . . . . . . . . . . . . . . . . . .

Japan

100.00%

Sale of solar energy products

Kyocera (Tianjin) Solar Energy Co., Ltd. . . . . . . .

China

90.00%

Manufacture of solar energy
products

Kyocera Solar, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . United States

100.00%

Manufacture and sale of solar
energy products

Kyocera Solar Europe S.R.O. . . . . . . . . . . . . . . . . .

Czech

100.00%

Manufacture of solar energy
products

Kyocera Precision Tools Korea Co., Ltd. . . . . . . . .

Korea

90.00%

Manufacture and sale ofcutting tools

Kyocera Tycom Corp. . . . . . . . . . . . . . . . . . . . . . . United States

100.00%

Manufacture and sale ofcutting tools

Japan Medical Materials Corporation . . . . . . . . . . .

Japan

77.00%Development, manufactureand sale of medical materials
and equipment

Kyocera Elco Corporation . . . . . . . . . . . . . . . . . . .

Japan

100.00%Development, manufactureand sale of electronic devices

Kyocera Kinseki Corporation . . . . . . . . . . . . . . . . .

Japan

100.00%Development, manufacture ofelectronic devices

Dongguan Shilong Kyocera Optics Co., Ltd. . . . . .

China

90.00%

Manufacture of cutting tools
and thin-film devices

71.62%Development, manufactureand sale of electronic devices(4) Electronic Device Group

AVX Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . United States

23

Name

Country ofIncorporation

Percentage
held by
KyoceraMalaysia

100.00%

Manufacture of
telecommunications
equipment

100.00%

Sale of telecommunications
equipment

Main Business(5) Telecommunications Equipment Group
Kyocera Telecom Equipment (Malaysia) Sdn.
Bhd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Kyocera Communications, Inc. . . . . . . . . . . . . . . . United States(6) Information Equipment Group
Kyocera Mita Corporation . . . . . . . . . . . . . . . . . . .

Japan

100.00%Development and manufactureof information equipment

Kyocera Mita Japan Corporation . . . . . . . . . . . . . .

Japan

100.00%

Sale of information equipment
mainly in Japan

Kyocera Mita Office Equipment (Dongguan) Co.,
Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

China

92.76%

Manufacture of informationequipment

Kyocera Mita America, Inc. . . . . . . . . . . . . . . . . . . United States

100.00%

Sale of information equipment
mainly in North America

Kyocera Mita Europe B.V. . . . . . . . . . . . . . . . . . . .

Netherlands

100.00%

Sale of information equipment
mainly in Europe

Kyocera Mita Deutschland GmbH . . . . . . . . . . . . .

Germany

100.00%

Sale of information equipment
mainly in Europe

TA Triumph-Adler AG . . . . . . . . . . . . . . . . . . . . . .

Germany

95.43%

Sale of information equipment
mainly in Europe

Kyocera Communication Systems Co., Ltd. . . . . .

Japan

76.30%

Provision of IT services andengineering services

Kyocera Chemical Corporation . . . . . . . . . . . . . . .

Japan

100.00%Development, manufactureand sale of chemical materials
for electronic components

Kyocera Realty Development Co., Ltd. . . . . . . . . .

Japan

100.00%Real estate services

Kyocera (Tianjin) Sales & Trading Corporation . .

China

90.00%

Sale of fine ceramic-related
products, cutting tools andinformation equipment mainly
in China

Kyocera Korea Co., Ltd. . . . . . . . . . . . . . . . . . . . . .

Korea

100.00%

Sale of fine ceramic-related
products and solar energy
products mainly in Korea

Kyocera Asia Pacific Pte. Ltd. . . . . . . . . . . . . . . . .

Singapore

100.00%

Sale of fine ceramic-related
products and electronic
devices mainly in Asia

Kyocera International, Inc. . . . . . . . . . . . . . . . . . . . United States

100.00%Holding company andheadquarters in North America(7) Others(8) Regional Holding or Sales Companies

24

Name

Country ofIncorporation

Percentage
held by
KyoceraKyocera Fineceramics GmbH . . . . . . . . . . . . . . . . .

Germany

100.00%Main Business

Sale of fine ceramic-related
products, solar energy
products and thin-film devices
mainly in Europe

In addition to the above consolidated subsidiaries, Kyocera had 168 other consolidated subsidiaries as ofMarch 31, 2010. Kyocera also had interests in two subsidiaries accounted for by the equity method and 10
affiliates accounted for by the equity method as of March 31, 2010.
AVX Corporation, in our Electronic Device Group, is one of our most significant subsidiaries. Most of theelectronic devices we produce for overseas sales are distributed through AVX Corporation by utilizing AVX
Corporation’s wide range of marketing channels. In addition, we market passive components produced by AVX
Corporation in the Japanese market. We also utilize AVX Corporation’s manufacturing process for ceramic
capacitors to improve productivity and to enhance our competitiveness. In addition, AVX Corporation introduced
our materials technologies into its ceramic capacitor production. We have been seeking better ways to cooperatein expanding our electronic device businesses. Currently, four of our directors are members of AVX
Corporation’s board of directors and AVX Corporation’s chief executive officer is one of our directors. Within
the Electronic Device Group, we have a close relationship with AVX Corporation in marketing, manufacturing,and research and development, and we are seeking and pursuing synergies to be a leading passive component
manufacturer. AVX Corporation posted net income of $142,858 thousand in fiscal 2010 and its performance
contributed significantly to Kyocera’s results of operations and financial condition. See Item 5.A. “Operating
Results” of this annual report on Form 20-F.
D. Property, Plants and Equipment
As of March 31, 2010, we had property, plants and equipment with a net book value of ¥240,099 million. During
the five years ended March 31, 2010, we invested a total of ¥344,781 million for additions to property, plants andequipment. Our property, plants and equipment are subject to some material encumbrances or environmental
issues. See Item 5.A. “Operating Results” of this annual report on Form 20-F.
The following table sets forth information, as of March 31, 2010, with respect to our manufacturing facilities
with floor space of more than 250,000 square feet.
Name of Plant

Location

StatusLease
Principal Products
Floor Space
Expires Manufactured(in thousandsof square feet)Japan
Hokkaido Kitami Plant . . . . . Kitami, Hokkaido

Owned

295

Telecommunications
equipment,
Semiconductor parts,
Fine ceramic parts

Yamagata Higashine Plant . . Higashine, Yamagata

Owned

379

Electronic components

Nagano Okaya Plant . . . . . . . Okaya, Nagano

Owned

387

Fine ceramic parts,
Electronic components,
Cutting tools

Kawaguchi Plant . . . . . . . . . . Kawaguchi, Saitama

Owned

389

Chemical materials forelectronic components

25Name of Plant

Location

StatusLease
Principal Products
Floor Space
Expires Manufactured(in thousandsof square feet)

Tamaki Plant . . . . . . . . . . . . . Watarai, Mie

Owned

288

Information equipment

Shiga Gamo Plant . . . . . . . . . Higashi-Ohmi, Shiga

Owned

690

Fine ceramic parts,
Semiconductor parts

Shiga Yokaichi Plant . . . . . . . Higashi-Ohmi, Shiga

Owned

1,474

Fine ceramic parts,
Electronic components,
Solar cells, Cutting tools

Kyoto Ayabe Plant . . . . . . . . Ayabe, Kyoto

Owned

288

Organic multilayer
printed circuit boards

Hirakata Plant . . . . . . . . . . . . Hirakata, Osaka

Owned

604

Information equipment

Kagoshima Sendai Plant . . . . Satsuma-Sendai,
Kagoshima

Owned

1,930

Fine ceramic parts,
Semiconductor parts,
Electronic components,
Cutting tools

Kagoshima Kokubu Plant . . . Kirishima, Kagoshima Owned

2,466

Fine ceramic parts,
Semiconductor parts,
Electronic components

Kagoshima Hayato Plant . . . . Kirishima, Kagoshima Owned

278

Electronic components

United States
Balboa Plant . . . . . . . . . . . . . San Diego, California

Owned

300

Semiconductor parts

Myrtle Beach Plant . . . . . . . . Myrtle Beach, South
Carolina

Owned

569

Electronic components

Fountain Inn Plant . . . . . . . . . Fountain Inn, South
Carolina

Owned

300

Electronic components

Owned

420

Electronic components

Leased322

Lanskroun Plant . . . . . . . . . . Lanskroun

Owned

490

Electronic components

Uherske Hradiste Plant . . . . . Uherske Hradiste

Owned

276

Electronic components

Owned

520

Electronic components

Shilong Plant . . . . . . . . . . . . . Dongguan, Guangdong Owned

2,331

Information equipment

Shilong Plant . . . . . . . . . . . . . Dongguan, Guangdong Owned

795

Cutting tools, Electronic
components

1,132

Semiconductor parts,
Electronic components

El Salvador
San Salvador Plant . . . . . . . . San Salvador
FranceSaint-Apollinaire Plant . . . . . Saint-Apollinaire

2016Electronic components

Czech Republic

China
Tianjin Plant . . . . . . . . . . . . . Tianjin

Shanghai Pudong Plant . . . . . Shanghai

Owned

26

Name of Plant

Location

StatusLease
Principal Products
Floor Space
Expires Manufactured(in thousandsof square feet)

ThailandThailand Plant . . . . . . . . . . . . Thailand

Owned

264

Electronic components

Owned

332

Electronic components

Malaysia Plant . . . . . . . . . . . . Malaysia

Owned

315

Telecommunications
equipment

Malaysia Plant . . . . . . . . . . . . Malaysia

Leased300

Philippines
Philippines Plant . . . . . . . . . . Philippines
Malaysia

2012 Electronic components

Item 4A. Unresolved Staff Comments
We are a large accelerated filer as defined in Rule 12b-2 under the Securities Exchange Act of 1934. There are no
written comments which have been provided by the staff of the Securities and Exchange Commission regarding
our periodic reports under that Act not less than 180 days before the end of the fiscal year ended March 31, 2010
and which remain unresolved as of the date of the filing of this annual report on Form 20-F with the Commission.
Item 5.

Operating and Financial Review and Prospects

A. Operating Results
You should read the discussion of our financial condition and results of operations together with ourconsolidated financial statements and information included in this annual report on Form 20-F. This discussion
and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual
results may differ materially from those anticipated in these forward-looking statements as a result of certain
factors, including, but not limited to, those set forth under Item 3.D. “Risk Factor” and elsewhere in this annual
report on Form 20-F.
Overview
Kyocera develops, produces and distributes various kinds of products for the information and communications
market and environment and energy market worldwide. Kyocera Corporation was established in 1959 as amanufacturer of ceramic parts for electronic equipment and has been expanding and diversifying its businessmainly through active mergers and acquisitions, as well as applying its fine ceramic technologies to the areas ofsemiconductor parts, electronic devices, telecommunication, metal processing, medical and dental implants andsolar energy fields. Kyocera develops, produces and distributes a variety of parts and devices for electronicequipment such as printers and multifunctional peripherals as well as consumer electronic equipment such as
mobile phone handsets. Kyocera earns revenue and income and generates cash through sales of these products.
Kyocera’s operations are categorized into seven reporting segments: (1) Fine Ceramic Parts Group,(2) Semiconductor Parts Group, (3) Applied Ceramic Products Group, (4) Electronic Device Group,(5) Telecommunications Equipment Group, (6) Information Equipment Group, and (7) Others. Kyocera groups
the Fine Ceramic Parts Group, the Semiconductor Parts Group, the Applied Ceramic Products Group and theElectronic Device Group into one main business referred to as “the Components Business” and groups the
Telecommunications Equipment Group and the Information Equipment Group into another main businessreferred to as “the Equipment Business.”

27

In fiscal 2010, the U.S. and European economy showed signs of recovery due to the effects of economic policy
and fiscal measures in various countries, which included packages to stimulate personal consumption. In
addition, the Chinese economy expanded strongly mainly supported by growth in capital investment and personal
consumption. Despite signs of expansion in corporate production activities along with a recovery in exports,
particularly to Asia, and moderate improvement in personal consumption, the Japanese economy did not show
full-scale recovery due to continued stagnation in capital investment and the employment environment.
In the digital consumer equipment market, which is a principal market for Kyocera, production activities showedsigns of recovery, notably for mobile phone handsets and personal computers, due to the end of inventory
adjustments. The solar energy market expanded firmly, especially demand increased rapidly in Japan due tosupport of governmental subsidy systems.
Despite the deterioration of our business environment until the second quarter of fiscal 2010, profitability of theComponents Business and the Equipment Business improved significantly from the third quarter. Consolidated
net sales for fiscal 2010, however, amounted to ¥1,073,805 million, a decrease of 4.9% compared with fiscal
2009, mainly due to the impact of appreciation of the yen against the Euro and the U.S. dollar.
In fiscal 2010, Kyocera continued working hard to improve profitability and strengthen the foundations of eachbusiness from fiscal 2009 by promoting cost-cutting measures including manufacturing cost reductions, and byimproving productivity throughout the Kyocera Group. As a result, profit from operations for fiscal 2010
increased by 47.1% to ¥63,860 million, and income before income taxes increased by 8.6% to ¥60,798 million,
despite a decline in sales and the recording of an impairment loss on an investment in and a bad debt loss onreceivables from WILLCOM, Inc., which were discussed in more detail below. Net income attributable toshareholders of Kyocera Corporation for fiscal 2010 amounted to ¥40,095 million, an increase of 35.9%
compared with fiscal 2009.
Average exchange rates for fiscal 2010 were ¥93 to the U.S. dollar and ¥131 to the Euro, marking appreciationby ¥8, or 7.9%, and ¥12, or 8.4%, respectively, compared with those for fiscal 2009. Affected by the yen’s
appreciation, net sales and income before income taxes after translation into the yen for fiscal 2010 were down
by approximately ¥49.0 billion and ¥13.5 billion, respectively, compared with fiscal 2009.
The Corporate Reorganization Procedure for WILLCOM, Inc.
Since October 2004, Kyocera Corporation has owned a 30% interest in WILLCOM, Inc., which is engaged in the
personal handy phone system (PHS) business. Kyocera also sells PHS handsets and PHS base stations to
WILLCOM, Inc. Kyocera has accounted for its investment in WILLCOM, Inc. as an equity method investment.
On September 24, 2009, WILLCOM, Inc. applied to undergo Alternative Dispute Resolution (ADR) with theJapanese Association of Turnaround Professionals (JATP), a process for corporate revitalization prescribed in the
Act on Special Measures for Industrial Revitalization. This application was accepted, and the ADR process wascommenced. The ADR process is not a legal procedure like a bankruptcy or a corporate reorganization
procedure, but rather constitutes a flexible private settlement mechanism that allows the subject company tocontinue its daily commercial operations, while securing fairness through the involvement of the JATP. The
JATP has been authorized by the Minister of Economy, Trade and Industry to act as an unbiased intermediary toachieve resolution among relevant parties.
During the third quarter of fiscal 2010, Kyocera recognized an impairment loss of ¥19,987 million on its
investment in WILLCOM, Inc., and recorded as losses in equity of affiliates, reflecting management’s belief thatthe investment might not be recoverable.
On February 18, 2010, WILLCOM, Inc. filed a petition with the Tokyo District Court for commencement ofcorporate reorganization procedures and applied to the Enterprise Turnaround Initiative Corporation of Japan
28

(ETIC) for support, and the ADR process was terminated. On March 12, 2010, the Tokyo District Court agreed tocommence the corporate reorganization procedures. Upon such decision, most of the directors of WILLCOM,
Inc., including all of those simultaneously serving as directors of Kyocera, resigned, and trustees and acting
trustees were appointed by the Tokyo District Court. On the same day, the ETIC agreed to provide support to
WILLCOM, Inc. Due to the commencement of the corporate reorganization procedures, Kyocera lost significant
influence over WILLCOM, Inc. and therefore discontinued its application of equity method accounting thereto.
Taking into consideration the decision to commence corporate reorganization procedures, Kyocera also
recognized a bad debt loss of ¥8,961 million on receivables from WILLCOM, Inc., recorded as selling, generaland administrative expenses, based on publicly disclosed information such as the outline of the business
revitalization plan of WILLCOM, Inc., etc. The final recovery rate and repayment schedule will be determined ina reorganization plan to be approved in the course of corporate reorganization procedures.
Results of Operations
Fiscal 2010 compared with Fiscal 2009
The following table shows a summary of Kyocera’s results of operations for fiscal 2009 and fiscal 2010:
Years ended March 31,
2009
2010
Amount%Amount(Yen in millions)%

Increase(Decrease)%

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,128,586
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
836,638

100.0
74.1

¥1,073,805
787,970

100.0
73.4

(4.9)
(5.8)

Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative expenses . . . . . . . . . . .

291,948248,52925.9
22.1

285,835
221,975

26.6
20.7

(2.1)
(10.7)

Profit from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividend income . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency transaction (losses) gains, net . . . . . . . . .
Equity in earnings (losses) of affiliates andunconsolidated subsidiaries . . . . . . . . . . . . . . . . . . . . . .
Losses on sales of securities, net . . . . . . . . . . . . . . . . . . . .
Losses on impairment of securities . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

43,41915,441(1,206)
(91)

3.8
1.4
(0.1)
(0.0)

63,86013,202(2,926)
2,830

5.9
1.3
(0.3)
0.3

47.1
(14.5)——

6,460(2,840)(7,141)
1,940

0.6
(0.3)
(0.6)
0.2

(18,297)
(93)
(217)
2,439

(1.7)
(0.0)
(0.0)
0.2

—
—
—
25.7

12,563

1.2(3,062)(0.2)—

Income before income taxes . . . . . . . . . . . . . . . . . . . .
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

55,982
22,7795.0
2.1

60,79815,365

5.7
1.5

8.6
(32.5)Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to noncontrolling interests . . . . . .

33,203(3,697)2.9(0.3)

45,433(5,338)

4.2
(0.5)

36.8
—

29,506

2.6

40,0953.7

35.9

Net income attributable to shareholders of Kyocera
Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥¥Net Sales
Consolidated net sales in fiscal 2010 decreased by ¥54,781 million, or 4.9%, to ¥1,073,805 million, comparedwith ¥1,128,586 million in fiscal 2009.
Net sales in fiscal 2010 have had an increasing trend due to the continued recovery of the general businessenvironment after the second quarter during fiscal 2010. Consolidated net sales in fiscal 2010, however,29decreased compared with the fiscal 2009 due to the continued deterioration of the business environment until thesecond quarter and the impact of appreciation of the yen. Affected by the yen’s appreciation against the Euro andthe U.S. dollar, net sales after translation into the yen in fiscal 2010 were down by approximately¥49,000 million, compared with fiscal 2009.
For detail of net sales, please refer to page 33, “Business overview by reporting segment.”
Net Sales by Geographic Segment
The following table shows a breakdown of Kyocera’s total consolidated net sales in fiscal 2009 and fiscal 2010,
distinguishing between domestic and overseas sales and, with respect to overseas sales, showing the geographicalareas in which such sales were made:Years ended March 31,
2009
2010
Amount%Amount(Yen in millions)%

Increase(Decrease)%

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 473,387
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
200,483
United States of America . . . . . . . . . . . . . . . . . . . . . . . . . .
201,502
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
183,347
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69,867

41.9
17.8
17.9
16.2
6.2

¥ 470,643
198,058
180,861
172,510
51,733

43.8
18.5
16.8
16.1
4.8

(0.6)
(1.2)
(10.2)(5.9)(26.0)Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,128,586

100.0¥1,073,805

100.0

(4.9)

Sales in Japan remained roughly unchanged from fiscal 2009, due to a decline in sales in the Telecommunications
Equipment Group, especially for mobile phone handsets, offset by a substantial increase in sales of solar energy
business in the Applied Ceramic Products Group due to an increase of demand.
Overseas sales, which comprised 56.2% of consolidated net sales, decreased by ¥52,037 million, or 7.9%,
to ¥603,162 million, compared with ¥655,199 million in fiscal 2009.
Sales in Europe decreased slightly compared with fiscal 2009 due mainly to the impact of appreciation of theyen, coupled with a decline in sales of the Electronic Device Group, offset by an increase in sales in the
Information Equipment Group due to the contribution of new consolidated subsidiaries which joined from thefourth quarter of fiscal 2009.
Sales in United States of America decreased compared with fiscal 2009, due mainly to an impact of the yen’s
appreciation, as well as a decline in sales in the Telecommunications Equipment Group and the Electronic
Device Group.
Sales in Asia decreased compared with fiscal 2009, due mainly to a decline in sales in the Electronic Device Group.
Sales in Others decreased compared with fiscal 2009, due mainly to a decline in sales in the Telecommunications
Equipment Group.
Cost of Sales and Gross Profit
In fiscal 2010, cost of sales decreased by ¥48,668 million, or 5.8%, to ¥787,970 million from ¥836,638 million in
fiscal 2009. The ratio of cost of sales to net sales was 73.4% in fiscal 2010, a decrease of 0.7 percentage points ascompared with 74.1% in fiscal 2009. This significant decrease was an achievement made by promoting costcutting measures and improving productivity throughout the Kyocera Group.
30

Raw material costs of ¥289,566 million accounted for 36.7% of the total cost of sales in fiscal 2010, which
decreased by ¥30,172 million, or 9.4%, from ¥319,738 million in fiscal 2009. Labor costs of ¥154,940 million
accounted for 19.7% in fiscal 2010, which decreased by ¥10,869 million, or 6.6%, from ¥165,809 million in
fiscal 2009. Depreciation expense of ¥51,221 million accounted for 6.5% in fiscal 2010, which decreased by¥18,941 million, or 27.0%, from ¥70,162 million in fiscal 2009 due to reduced capital expenditures.
As a result, gross profit in fiscal 2010 decreased by ¥6,113 million, or 2.1%, to ¥285,835 million from¥291,948 million in fiscal 2009. The gross profit ratio to net sales increased by 0.7 percentage points from 25.9%
to 26.6%.
SG&A Expenses and Profit from Operations
Selling, general and administrative (SG&A) expenses in fiscal 2010 decreased by ¥26,554 million, or 10.7%, to¥221,975 million compared with ¥248,529 million in fiscal 2009. Although Kyocera recognized a bad debt lossof ¥8,961 million on receivables from WILLCOM, Inc. in fiscal 2010, Kyocera’s cost reduction activities offset
the bad debt loss. In fiscal 2009, gains on sales of certain properties of ¥8,314 million were recorded as
deductions of SG&A expenses. These gains were offset by impairment losses of ¥2,240 million in goodwill
related to the subsidiary in the United States, and of ¥2,309 million of long-lived assets which were used for a
production of Organic Light-Emitting Diode displays.
Labor costs of ¥118,313 million accounted for 53.3% of total SG&A expenses in fiscal 2010, which decreased by¥4,570 million, or 3.7%, from ¥122,883 million in fiscal 2009. Sales promotion and advertising cost of¥30,353 million accounted for 13.7% in fiscal 2010, which decreased by ¥6,315 million, or 17.2%, from¥36,668 million in fiscal 2009. Depreciation expense of ¥15,374 million accounted for 6.9% in fiscal 2010,
which decreased by ¥4,510 million, or 22.7%, from ¥19,884 million in fiscal 2009.
As a result, profit from operations in fiscal 2010 increased by ¥20,441 million, or 47.1%, to ¥63,860 million,
compared with ¥43,419 million in fiscal 2009. The operating margin increased by 2.1 percentage points to 5.9%
in fiscal 2010, compared with 3.8% in fiscal 2009.
Interest and Dividend Income
Interest and dividend income in fiscal 2010 decreased by ¥2,239 million, or 14.5%, to ¥13,202 million, comparedwith ¥15,441 million in fiscal 2009. This was due mainly to a decrease of interest income in AVX Corporation
resulting from lower interest rates in the United States.
Interest Expense
Interest expense in fiscal 2010 increased by ¥1,720 million, or 142.6%, to ¥2,926 million, compared with
¥1,206 million in fiscal 2009. This was due mainly to an increase of long-term debt as a result of
the acquisition of TA Triumph - Adler AG in the 4th quarter of fiscal 2009, which had borrowed the long-term
debt.
Foreign Currency Translation
During fiscal 2010, the average exchange rate for the yen appreciated by ¥8, or 7.9%, against the U.S. dollar, andby ¥12, or 8.4%, against the Euro, as compared with fiscal 2009. At March 31, 2010, the yen appreciated by ¥5,or 5.1%, against the U.S. dollar, and by ¥5, or 3.8%, against the Euro, as compared with March 31, 2009.
Kyocera recorded foreign currency transaction gains of ¥2,830 million in fiscal 2010.
Kyocera typically enters into forward exchange contracts to minimize currency exchange risks on foreign
currency denominated receivables and payables. Kyocera confines its use of derivative financial instruments forhedging its foreign exchange exposures, and does not utilize derivative transactions for trading purposes.
31Gains and Losses from Investments
Kyocera’s earnings (losses) on equity method investments decreased by ¥24,757 million, from earnings of¥6,460 million in fiscal 2009 to losses of ¥18,297 million in fiscal 2010.
The decrease in fiscal 2010 was primarily due to the fact that Kyocera recognized an impairment loss of¥19,987 million on its investment in WILLCOM, Inc., and Kyocera’s equity in earnings of affiliates andunconsolidated subsidiaries except the impairment loss in fiscal 2010 decreased due mainly to a decrease in the
net income of WILLCOM, Inc.
Losses on sales of securities, net in fiscal 2010 decreased by ¥2,747 million, or 96.7%, to ¥93 million, comparedwith ¥2,840 million in fiscal 2009. Losses in fiscal 2009 were the result of sales of certain securities which were
held by Kyocera, as a part of its asset allocation.
Losses on impairment of securities in fiscal 2010 decreased by ¥6,924 million, or 97.0%, to ¥217 million,
compared with ¥7,141 million in fiscal 2009. In fiscal 2009, Kyocera had recognized impairment losses as aresult of significant declines in market value of certain securities and the major part of such losses was derived
from the shares of Mitsubishi UFJ Financial Group, Inc., which amounted to ¥3,935 million.
Income before Income Taxes
Income before income taxes in fiscal 2010 increased by ¥4,816 million, or 8.6%, to ¥60,798 million comparedwith ¥55,982 million in fiscal 2009. Margin of income before income taxes against net sales increased by 0.7%
to 5.7% compared with 5.0% in fiscal 2009.
Despite an effect of the yen’s appreciation against the Euro and the U.S. dollar, income before income taxes in fiscal
2010 increased compared with fiscal 2009 because Kyocera continued to improve profitability from fiscal 2009 bypromoting cost-cutting measures including manufacturing cost reductions, and by improving
productivity. Kyocera reduced depreciation and amortization costs for fiscal 2010 by ¥24,748 million comparedwith fiscal 2009, by curtailing capital expenditure from the third quarter in fiscal 2009, which contributed to a
reduction in fixed costs. In addition, Kyocera reduced R&D expenses by ¥16,021 million to ¥49,911 million
compared with ¥65,932 million in fiscal 2009, by narrowing down R&D themes in order to concentrate ourmanagement resources. Furthermore, losses on impairment of securities decreased by ¥6,924 million to¥217 million compared with ¥7,141 million in fiscal 2009 which were recorded due to the stock market
decline. However, Kyocera recorded a one-time loss of ¥28,948 million relating to WILLCOM, Inc. in fiscal 2010.
Affected by the yen appreciation against the Euro and the U.S. dollar, income before income taxes after
translation into the yen for fiscal 2010 were down by approximately ¥13,500 million compared with fiscal 2009.
For a detail of income before taxes, please refer to page 33, “Business overview by reporting segment.”
Income Taxes
Current and deferred income taxes in fiscal 2010 decreased by ¥7,414 million, or 32.5%, to ¥15,365 million
compared with ¥22,779 million in fiscal 2009.
The effective tax rate of 25.3% in fiscal 2010 was 15.4 points less than the effective rate in fiscal 2009 of
40.7%. This was due mainly to the changes in valuation allowances against deferred tax assets.
For detailed information, see Note 17 to the Consolidated Financial Statements in this annual report on Form 20-F.
Noncontrolling Interests
Net income attributable to noncontrolling interests in fiscal 2010 amounted to ¥5,338 million and noncontrollinginterests related to AVX Corporation, which accounted for approximately 30% of noncontrolling ownership
32

interests, amounted to ¥3,761 million. Net income attributable to noncontrolling interests in fiscal 2010 increasedby ¥1,641 million, or 44.4%, compared with ¥3,697 million in fiscal 2009. This was due mainly to an increase in
net income at AVX Corporation.
Business Overview by Reporting Segment
The following table shows a breakdown of Kyocera’s total consolidated net sales in fiscal 2009 and fiscal 2010by the seven reporting segments:
Years ended March 31,
2009
2010
Amount%Amount(Yen in millions)¥%

Increase(Decrease)%

53,056
140,507
157,033
199,939

5.0
13.1
14.6
18.6

(14.1)
4.0
5.5(13.5)

Fine Ceramic Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 61,730
Semiconductor Parts Group . . . . . . . . . . . . . . . . . . . . . . . .
135,137
Applied Ceramic Products Group . . . . . . . . . . . . . . . . . . . .
148,917
Electronic Device Group . . . . . . . . . . . . . . . . . . . . . . . . . .
231,271

5.4
12.0
13.2
20.5

Total Components Business . . . . . . . . . . . . . . . . . . . .
Telecommunications Equipment Group . . . . . . . . . . . . . . .
Information Equipment Group . . . . . . . . . . . . . . . . . . . . . .

577,055
218,758
229,297

51.1
19.4
20.3

550,535
189,118
232,365

51.3
17.6
21.6

(4.6)
(13.5)
1.3

Total Equipment Business . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments and eliminations . . . . . . . . . . . . . . . . . . . . . . .

448,055
126,043(22,567)

39.7
11.2
(2.0)

421,483
124,577(22,790)

39.2
11.6
(2.1)

(5.9)
(1.2)
—

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,128,586

100.0¥1,073,805

100.0

(4.9)

The following table shows a breakdown of Kyocera’s total consolidated income before income taxes, andoperating profit for fiscal 2009 and fiscal 2010 by the seven reporting segments:
Years ended March 31,
2009
2010
Amount%*Amount(Yen in millions)%*

Increase(Decrease)%

Fine Ceramic Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . .
Semiconductor Parts Group . . . . . . . . . . . . . . . . . . . . . . . .
Applied Ceramic Products Group . . . . . . . . . . . . . . . . . . . .
Electronic Device Group . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

(240)
8,671
27,469(4,070)

—
6.4
18.4
—

¥

(788)
17,23519,85813,230

—
12.3
12.6
6.6

—
98.8
(27.7)—

Total Components Business . . . . . . . . . . . . . . . . . . . .
Telecommunications Equipment Group . . . . . . . . . . . . . . .
Information Equipment Group . . . . . . . . . . . . . . . . . . . . . .

31,830(17,713)
13,497

5.5—
5.9

49,535(14,726)
22,091

9.0
—
9.5

55.6
—
63.7

Total Equipment Business . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4,216)
14,106

—
11.2

7,365
6,769

1.7
5.4

—
(52.0)

Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity in earning of affiliates and unconsolidated
subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments and eliminations . . . . . . . . . . . . . . . . . . . . . . .

41,720
7,632

3.7
—

63,66915,665

5.9
—

52.6
105.3

6,460
170

—
—

(18,297)
(239)

—
—

—
—

Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . .

¥ 55,982

5.0¥ 60,798

5.7

8.6* % to net sales of each corresponding segment
33

(1) Fine Ceramic Parts Group
Sales in this reporting segment for fiscal 2010 decreased by ¥8,674 million, or 14.1%, to ¥53,056 million,
compared with ¥61,730 million in fiscal 2009.
A decline in sales was mainly due to decreased demand and selling price in core products, such as sapphire
substrates for LEDs, parts for semiconductor and LCD fabrication equipment, and for automotive related parts,
as well as the yen appreciation against the Euro and the U.S. dollar. Demand for digital consumer equipment
components, such as sapphire substrates for LEDs, registered tones of recovery from the beginning of fiscal
2010. In addition, demand for fine ceramic parts used in industrial machineries, such as semiconductor and LCD
fabrication equipment, and for automotive related parts, recovered from the third quarter of fiscal 2010.
However, demand fell short of levels posted in fiscal 2009 on the whole. Furthermore, selling price of thesecomponents declined by 10% to 20% compared with fiscal 2009. Mainly due to a decline in demand and selling
price, sales in this reporting segment decreased by approximately ¥7,000 million compared with fiscal 2009. In
addition, sales in this reporting segment decreased by approximately ¥1,500 million affected by the yen
appreciation.
Operating loss in this reporting segment amounted to ¥788 million, an increase in loss of ¥548 million comparedwith a loss of ¥240 million in fiscal 2009.
Kyocera suppressed capital expenditures and promoted cost reduction measures comprehensively in fiscal 2010
to improve profitability amid difficulties in expanding sales due to continued weak demand and price erosion. As
a result, depreciation and amortization costs for fiscal 2010 decreased by ¥2,267 million to ¥5,719 million,
compared with ¥7,986 million in fiscal 2009. Kyocera offset such negative impacts from declined sales volumes
and selling prices with comprehensive cost reductions. However, the yen appreciation also produced an impact ofapproximately ¥500 million on operating profit, resulting in expanded operating loss in this reporting segmentcompared with fiscal 2009.
(2) Semiconductor Parts Group
Sales in this reporting segment in fiscal 2010 increased by ¥5,370 million, or 4.0%, to ¥140,507 million,
compared with ¥135,137 million in fiscal 2009.
Sales in this reporting segment increased due to an expansion in demand, despite the yen appreciation pushed
down its sales by approximately ¥6,000 million compared with fiscal 2009. Demand for ceramic packages forcrystal and SAW devices and for CCD/CMOS image sensors, and for organic packages used in servers declined
from the third quarter of fiscal 2009, due to a decrease in production of digital consumer equipment affected by
the global economic downturn. In line with expanded production of mobile phone handsets, PCs, and digital
cameras from the start of fiscal 2010, however, demand for each package was on course for recovery. Demandfor packages from the third quarter of fiscal 2010 reached higher level of the first half of fiscal 2009 when
demand was brisk. As a result, sales in this reporting segment for fiscal 2010 increased compared with fiscal
2009.
Operating profit in this reporting segment was ¥17,235 million, up ¥8,564 million, or 98.8%, compared with
¥8,671 million in fiscal 2009.
Since the third quarter of fiscal 2009 when demand started to decline rapidly, Kyocera has been promoting
reductions in capital expenditures and various costs throughout the group. As a result, operating profit in thisreporting segment increased compared with fiscal 2009. Notably, depreciation and amortization costs for fiscal
2010 were ¥9,795 million, down ¥3,797 million compared with ¥13,592 million in fiscal 2009 due to curtailmentof capital expenditures. The subcontracting costs and labor costs also decreased by approximately ¥2,000 million
compared with fiscal 2009 due mainly to promoting in-house production in order to enhance production capacity34

utilization rate and improving production processes. Coupled with these cost-cutting measures, operating
profit increased by ¥2,500 million due to effects of increased sales and a reduction in other costs.
(3) Applied Ceramic Products Group
Sales in this reporting segment for fiscal 2010 increased by ¥8,116 million, or 5.5%, to ¥157,033 million,
compared with ¥148,917 million in fiscal 2009.
In the solar energy business, a core business in this reporting segment, overseas sales decreased as fierce
competition in the European and the U.S. markets forced a decline in selling prices by 30% to 40% comparedwith fiscal 2009, as well as the impact of the yen appreciation. Nonetheless, demand in the Japanese market
increased due mainly to the recommencement of government subsidies in the housing sector and the introductionof a purchase system for electricity by electric power companies, while selling prices remained stable, resulting
in a significant sales increase. Production volume of solar cells in fiscal 2010 amounted to 400MW, an increaseof roughly 40% compared with fiscal 2009. In addition, sales of the medical and dental implants business forfiscal 2010 increased compared with fiscal 2009. As a result, total sales of the solar energy business and the
medical and dental implants business for fiscal 2010 increased by approximately ¥16,000 million compared withfiscal 2009. On the other hand, in the cutting tools business, demand for cutting tools remained at a low levelcompared with 2009, despite tones of recovery in demand due to resurgence in production activities in
automotive related markets since the third quarter of fiscal 2010. Furthermore, sales of the jewelry and applied
ceramic related products business for fiscal 2010 decreased compared with fiscal 2009 due to the deterioration in
the economy. As a result, total sales of the cutting tools business and the jewelry and applied ceramic related
products business for fiscal 2010 decreased by approximately ¥8,000 million compared with fiscal 2009.
Operating profit in this reporting segment decreased by ¥7,611 million, or 27.7%, to ¥19,858 million, comparedwith ¥27,469 million in fiscal 2009.
A decline in operating profit in this reporting segment was mainly due to decreased profit in the solar energy andcutting tools businesses. Although sales of solar energy business increased, gross profit margin was lowered bydeclined selling price, the yen appreciation and increased depreciation cost due to an expansion of production
capacity. Despite the efforts to improve profitability through reducing manufacturing costs, operating profit in
the cutting tools business decreased due to a decline in sales and lowered production capacity utilization until theend of second quarter of fiscal 2010. As a result, total operating profit of the solar energy business and the cutting
tools business decreased by approximately ¥8,000 million compared with fiscal 2009.
Affected by the yen appreciation, sales and operating profit in this reporting segment were pushed down by
approximately ¥6,000 million and ¥2,500 million, respectively, compared with fiscal 2009.
(4) Electronic Device Group
Sales in this reporting segment for fiscal 2010 decreased by ¥31,332 million, or 13.5%, to ¥199,939 million,
compared with ¥231,271 million in fiscal 2009.
Despite tones of recovery in component demand for digital consumer equipment such as mobile phone handsets
from April 2009, sales remained at a low level on the whole compared with fiscal 2009. Sales at AVX
Corporation, a U.S.-based subsidiary that mainly produces and sells passive components, decreased byapproximately ¥20,000 million compared with fiscal 2009 due to a decline in demand and the impact of the yen
appreciation. In addition, sales for crystal related components, connectors, and thin film products decreased
affected by the yen appreciation and slow demand. Sales in this reporting segment decreased by approximately¥14,000 million due to the yen appreciation.
Operating profit in this reporting segment amounted to ¥13,230 million, an improvement of ¥17,300 million froman operating loss of ¥4,070 million in fiscal 2009.
35

Although one-time expenses of approximately ¥5,820 million which include an impairment loss of¥2,309 million on long-lived assets for organic light-emitting diodes business, restructuring charges in AVX
Corporation of approximately ¥1,800 million related to employee separations and facility consolidations andaccrual of ¥1,711 million for estimated environmental remediation cost at AVX Corporation in fiscal 2009, there
were no such significant one-time charges in fiscal 2010. Kyocera promoted drastic cost reductions in order toimprove profitability including reductions in capital expenditures and R&D expenses while narrowing down
R&D themes. Notably, depreciation and amortization costs in fiscal 2010 were ¥16,934 million, a decrease of¥7,395 million compared with ¥24,329 million in fiscal 2009, due to curtailment of capital expenditures andfacility consolidations at AVX Corporation proceeded in fiscal 2009. Additionally, R&D expenses for fiscal
2010 were ¥8,444 million, a decrease of ¥4,246 million compared with ¥12,690 million in fiscal 2009.
(5) Telecommunications Equipment Group
Sales in this reporting segment for fiscal 2010 decreased by ¥29,640 million, or 13.5%, to ¥189,118 million,
compared with ¥218,758 million in fiscal 2009.
Despite an increase in sales volume of mobile phone handsets in Japan by approximately 10% in fiscal 2010
compared with fiscal 2009, sales in Japan declined by approximately ¥10,000 million year over year. This wasdue mainly to a decrease of average selling price of around 20% driven by increased sales of low-end models.
Although sales volume of mobile phone handsets overseas were up approximately 20% in fiscal 2010 comparedwith fiscal 2009, overseas sales decreased by approximately ¥7,000 million, due to declined average selling priceof 20% with increased sales of low-end models as well as a negative impact of the yen appreciation amounting toapproximately ¥6,000 million. In addition, sales of telecommunication system equipment business, of which aremainly consisted of PHS-related products such as base stations and handsets, also decreased by approximately¥12,000 million, due to stagnant capital expenditures and a decline in new subscribers affected by difficult
financial situation at WILLCOM, Inc.
Operating loss in this reporting segment improved by ¥2,987 million from ¥17,713 million in fiscal 2009 to¥14,726 million.
During fiscal 2010, an impairment loss of ¥8,961 million on account receivables from WILLCOM, Inc. wasrecorded in this reporting segment by taking into the decision to commence corporate reorganization procedures.
However, the effects of business restructuring implemented in fiscal 2009 started to emerge, contributing
to reduced operating loss. Through structural reforms and refined R&D themes, R&D expenses for fiscal 2010
decreased by ¥7,011 million, to ¥8,853 million, compared with ¥15,864 million in fiscal 2009. In addition,
depreciation and amortization costs for fiscal 2010 decreased by ¥7,494 million, to ¥9,452 million, comparedwith ¥16,946 million in fiscal 2009, by curtailing capital expenditures. Operating profit in this reporting segment
was down around ¥3,000 million compared with fiscal 2009 due to the yen appreciation against the U.S. dollar.
(6) Information Equipment Group
Sales in this reporting segment for fiscal 2010 increased by ¥3,068 million, or 1.3%, to ¥232,365 million,
compared with ¥229,297 million in fiscal 2009.
Business climate in fiscal 2010 was quite severe due to a significant curtailment of information technology
investment by customers as a result of the global economic downturn. Under such circumstances, sales for the
U.S. were down by approximately ¥2,500 million compared with fiscal 2009 affected by stagnant sales and to theimpact of the yen appreciation. Sales for Europe, however, increased by approximately ¥6,500 million despite anegative impact curtailed information technology investment. This was due mainly to a full-year contribution
from TA Triumph-Adler AG in fiscal 2010, a sales subsidiary that was consolidated in January 2009, whichamounted to approximately ¥27,000 million in sales in fiscal 2010. Affected by slow demand, sales for Asia
including Japan and for other areas decreased by approximately ¥1,000 million compared with fiscal 2009.
36

Operating profit increased by ¥8,594 million, or 63.7%, to ¥22,091 million, compared with ¥13,497 million in
fiscal 2009.
Operating profit in this reporting segment increased strongly compared with fiscal 2009, due to the effect of cost
reductions, an increase in the sales ratio of high-value-added and mid-speed models as well as color models, andto a one-time gain of ¥1,521 million related to sale of real estate overseas. Sales volume of printers andmultifunctional peripherals in fiscal 2010 roughly unchanged from fiscal 2009. Compared with fiscal 2009, sales
volume of high-value-added and mid-speed models increased mainly in the European and the U.S. markets infiscal 2010, while replacement to color models continued apace. As a result, the average selling price in fiscal
2010 increased by approximately 3% compared with fiscal 2009. Kyocera also standardized design of software
which controlled printers and Multifunctional Peripherals, and this resulted in a decrease in R&D expenses infiscal 2010 to ¥17,400 million, a decrease of ¥2,727 million, from ¥20,127 million in fiscal 2009. In addition,
depreciation and amortization costs in fiscal 2010 decreased by ¥1,623 million to ¥12,846 million, comparedwith ¥14,469 million in fiscal 2009. Furthermore, a reduction in cost of approximately ¥2,500 million, including
labor costs in manufacturing division and advertising costs, contributed to increased operating profit comparedwith fiscal 2009.
(7) Others
Sales in this reporting segment for fiscal 2010 decreased by ¥1,466 million, or 1.2%, to ¥124,577 million,
compared with ¥126,043 million in fiscal 2009.
Sales decreased due mainly to a decline in sales in the optical components business by approximately¥2,000 million, despite sales in IT related business increased compared with fiscal 2009.
Operating profit decreased by ¥7,337 million, or 52.0%, to ¥6,769 million, compared with ¥14,106 million in
fiscal 2009.
Operating profit decreased significantly compared with fiscal 2009, due mainly to the recognition of a one-time
gain on sales of real estate in the amount of ¥9,352 million in fiscal 2009. However, operating profit in IT related
business and the electronic component materials business increased compared with fiscal 2009 due to increased
sales and cost-cutting measures to improve profitability.
(8) Corporate
Corporate income and losses mainly constitute gains or losses related to financial assets, and income related to
management supporting service provided by Kyocera’s head office to each reporting segment. Corporate income
increased by ¥8,033 million, or 105.3%, to ¥15,665 million compared with ¥7,632 million in fiscal 2009. Thiswas mainly due to significant decreases in losses on sales of securities and losses on impairment of securities.

37

Fiscal 2009 compared with Fiscal 2008
The following table shows a summary of Kyocera’s results of operations for fiscal 2008 and fiscal 2009:
Years ended March 31,
2008
2009
Amount%Amount(Yen in millions)%

Increase(Decrease)%

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,290,436
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
883,763

100.0
68.5

¥1,128,586
836,638

100.0
74.1

(12.5)(5.3)

Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative expenses . . . . . . . . . . .

406,673
254,253

31.5
19.7

291,948248,52925.9
22.1(28.2)(2.3)

Profit from operations . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividend income . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency transaction losses, net . . . . . . . . . . . . . . .
Equity in earnings of affiliates and unconsolidated
subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Losses on sales of securities, net . . . . . . . . . . . . . . . . . . . .
Losses on impairment of securities . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

152,420
18,444(1,480)
(956)

11.8
1.4
(0.1)
(0.1)

43,41915,441(1,206)
(91)

3.8
1.4
(0.1)
(0.0)

(71.5)(16.3)
—
—

6,091
(622)
(248)
1,193

0.5
(0.1)
(0.0)
0.1

6,460
(2,840)(7,141)
1,940

0.6
(0.3)
(0.6)
0.2

6.1
—
—
62.6

22,422

1.7

12,5631.2(44.0)

Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

174,842
60,23513.5
4.6

55,982
22,7795.0
2.1(68.0)(62.2)Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to noncontrolling interests . . . . . .

114,607(7,363)8.9(0.6)

33,203(3,697)2.9(0.3)(71.0)—Net income attributable to shareholders of Kyocera
Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 107,244

8.3

29,506

2.6(72.5)¥Net Sales
Consolidated net sales for fiscal 2009 decreased by ¥161,850 million, or 12.5%, to ¥1,128,586 million, comparedwith ¥1,290,436 million in fiscal 2008.
Net sales in the Components Business, which comprised 51.1% of consolidated net sales, decreased by ¥102,935
million in fiscal 2009, or 15.1%, to ¥577,055 million compared with fiscal 2008. This was principally due tostagnation in production activity in numerous industries, namely digital consumer equipment including mobile
phone handsets and PCs, semiconductors, and automotive related industries, particularly in the second half, while
inventory adjustments continued apace for equipment and components by Kyocera’s customers, causing
component demand to drop. In contrast, sales in the Applied Ceramic Products Group decreased only slightly
compared with fiscal 2008 owing to steady expansion in demand for solar energy business, mainly in Europe andthe United States, until the third quarter.
Net sales in the Equipment Business, which comprised 39.7% of consolidated net sales, decreased by ¥49,508
million in fiscal 2009, or 10.0%, to ¥448,055 million compared with fiscal 2008. Although sales in both Japaneseand overseas market weakened, sales in the Telecommunications Equipment Group decreased slightly comparedwith fiscal 2008, due to the acquisition of the mobile phone business of SANYO Electric Co., Ltd.
(SANYO). Sales in the Information Equipment Group decreased compared with fiscal 2008, due to the impact of
the yen’s appreciation against the Euro and the U.S. dollar, coupled with the sharp decline in investments
in information technology at corporate sectors, especially in Europe and the United States.
38

A detailed analysis and discussion of Kyocera’s net sales by reporting segment and geographic segment are as
follows:
Net Sales by Reporting Segment
The following table shows a breakdown of Kyocera’s total consolidated net sales for fiscal 2008 and fiscal 2009by the seven reporting segments:
Years ended March 31,
2008
2009
Amount%Amount(Yen in millions)¥%

Increase(Decrease)%

61,730135,137
148,917
231,271

5.4
12.0
13.2
20.5

(24.1)(12.6)(0.7)(21.4)

Fine Ceramic Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 81,309
Semiconductor Parts Group . . . . . . . . . . . . . . . . . . . . . . . .
154,538
Applied Ceramic Products Group . . . . . . . . . . . . . . . . . . . .
149,942
Electronic Device Group . . . . . . . . . . . . . . . . . . . . . . . . . .
294,201

6.3
12.0
11.6
22.8

Total Components Business . . . . . . . . . . . . . . . . . . . .
Telecommunications Equipment Group . . . . . . . . . . . . . . .
Information Equipment Group . . . . . . . . . . . . . . . . . . . . . .

679,990
220,817
276,746

52.7
17.1
21.5

577,055
218,758
229,297

51.1
19.4
20.3

(15.1)(0.9)(17.1)

Total Equipment Business . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments and eliminations . . . . . . . . . . . . . . . . . . . . . . .

497,563
138,494(25,611)

38.6
10.7
(2.0)

448,055
126,043(22,567)

39.7
11.2
(2.0)

(10.0)(9.0)—

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,290,436

100.0¥1,128,586

100.0(12.5)(1) Fine Ceramic Parts Group
Sales in this reporting segment in fiscal 2009 decreased by ¥19,579 million, or 24.1%, to ¥61,730 million,
compared with ¥81,309 million in fiscal 2008.
Component demand was decreased in fiscal 2009 as prolonged stagnation in the semiconductor market since
fiscal 2008 resulted in a year-on-year decline in sales of ceramic parts for semiconductor fabrication equipment,
while there was a sharp decline in production activity in numerous industries, namely the digital consumer
equipment and automotive industries. Overall sales in this reporting segment for fiscal 2009 were pushed down
by approximately ¥3,100 million compared with fiscal 2008 due to the impact of the yen’s appreciation.
(2) Semiconductor Parts Group
Sales in this reporting segment in fiscal 2009 decreased by ¥19,401 million, or 12.6%, to ¥135,137 million,
compared with ¥154,538 million in fiscal 2008.
Sales of both ceramic packages and organic packages decreased compared with fiscal 2008. This was due
primarily to rapid deterioration in demand for ceramic packages used mainly in mobile phone handsets anddigital still cameras, and for organic packages used mainly in servers from the latter half of the second quarter offiscal 2009. Overall sales in this reporting segment for fiscal 2009 were pushed down by approximately¥9,400 million compared with fiscal 2008 due to the impact of the yen’s appreciation.
(3) Applied Ceramic Products Group
Sales in this reporting segment in fiscal 2009 decreased by ¥1,025 million, or 0.7%, to ¥148,917 million,
compared with ¥149,942 million in fiscal 2008.
39

Despite an increase in sales in the solar energy business due primarily to growth in demand in Europe and theUnited States until the third quarter, this decrease was due to lower sales in the cutting tools business and theimpact of the yen’s appreciation against the foreign currencies.
In the solar energy business, despite the yen’s appreciation against the Euro from the second half and a rapid
decline in demand in Europe and the United States in the fourth quarter, production volume of solar cells andmodules in fiscal 2009 increased by approximately 45% compared with fiscal 2008, while product selling prices
remained relatively stable. However, sales in the cutting tools business decreased due to stagnation in production
activity in automotive industries from the second half. Overall sales in this reporting segment for fiscal 2009were pushed down by approximately ¥11,100 million compared with fiscal 2008 due to the impact of the yen’s
appreciation.
(4) Electronic Device Group
Sales in this reporting segment in fiscal 2009 decreased by ¥62,930 million, or 21.4%, to ¥231,271 million,
compared with ¥294,201 million in fiscal 2008.
There were main reasons for this decrease: a decline in demand, a reduction in product selling prices, and the
yen’s appreciation. Demand for digital consumer equipment such as mobile phone handsets and PCs decreased
due to the global economic downturn, forcing a rapid decline in production of digital consumer equipment andinventory adjustments for components thereof from the second half. In line with deterioration in the supplydemand situation, component prices also dropped compared with the end of fiscal 2008. In addition, sales at
AVX Corporation, a core overseas subsidiary in this reporting segment, decreased by $229 million, or 14.1%, to$1,390 million, compared with $1,619 million in fiscal 2008. Overall sales in this reporting segment for fiscal
2009 were pushed down by approximately ¥27,800 million compared with fiscal 2008 due to the impact of the
yen’s appreciation.
(5) Telecommunications Equipment Group
Sales in this reporting segment in fiscal 2009 decreased by ¥2,059 million, or 0.9%, to ¥218,758 million,
compared with ¥220,817 million in fiscal 2008.
Although the mobile phone business acquired from SANYO contributed approximately ¥87,000 million tosegment sales in fiscal 2009, replacement demand for mobile phone handsets in the Japanese market weakened
sharply due to the introduction of an installment sales method, while sales in the United States decreased andnew product development was delayed, leading to an overall decline in sales compared with fiscal 2008. In
addition, sales in this reporting segment for fiscal 2009 were pushed down by approximately ¥11,400
million compared with fiscal 2008 due to the impact of the yen’s appreciation. Shipment volume of mobile
phones and PHS handsets in fiscal 2009 decreased by approximately 13% compared with fiscal 2008.
(6) Information Equipment Group
Sales in this reporting segment in fiscal 2009 decreased by ¥47,449 million, or 17.1%, to ¥229,297 million,
compared with ¥276,746 million in fiscal 2008.
A sharp decline in corporate information technology investment due to the economic downturn in the second half
led to lower sales of printers and digital multifunctional peripherals. Kyocera acquired additional equity interest
in TAAG, a German-based distributor of information equipment, to turn it into a consolidated subsidiary inJanuary 2009 with the objective of further expanding business in the Information Equipment Group in Europe.
Sales volume of both printers and digital multifunctional peripherals decreased by approximately 10%. Overallsales in this reporting segment for fiscal 2009 were pushed down by approximately ¥27,500 million comparedwith fiscal 2008 due to the impact of the yen’s appreciation.
40

(7) Others
Sales in this reporting segment in fiscal 2009 decreased by ¥12,451 million, or 9.0%, to ¥126,043 million,
compared with ¥138,494 million in fiscal 2008. Sales at Kyocera Communication Systems Co., Ltd decreased
due mainly to stagnation in telecommunications infrastructure related business, while sales in the electronic
component materials business of Kyocera Chemical Corporation also decreased.
Net Sales by Geographic Segment
The following table shows a breakdown of Kyocera’s total consolidated net sales for fiscal 2008 and fiscal 2009,
distinguishing between domestic and overseas sales and, with respect to overseas sales, showing the geographicalareas in which such sales were made:Years ended March 31,
2008
2009
Amount%Amount(Yen in millions)%

Increase(Decrease)%

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 507,837
United States of America . . . . . . . . . . . . . . . . . . . . . . . . . .
248,760
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
229,830
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
232,425
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
71,584

39.4
19.3
17.8
18.0
5.5

¥ 473,387
201,502200,483
183,347
69,867

41.9
17.9
17.8
16.2
6.2

(6.8)
(19.0)(12.8)(21.1)(2.4)

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,290,436

100.0¥1,128,586

100.0(12.5)

Sales in Japan, which comprised 41.9% of consolidated net sales, decreased by ¥34,450 million, or 6.8%, to¥473,387 million, compared with ¥507,837 in fiscal 2008, due to a decline in demand for components used indigital consumer equipment.
Overseas sales, which comprised 58.1% of consolidated net sales, decreased by ¥127,400 million, or 16.3%, to¥655,199 million, compared with ¥782,599 million in fiscal 2008.
Almost all of Kyocera’s overseas sales were denominated in the U.S. dollar or the Euro. In fiscal 2009, the yen
appreciated ¥13 against the U.S. dollar and appreciated ¥19 against the Euro on average, compared with fiscal 2008.
Net sales in U.S. dollars amounted to approximately $3,900 million and net sales in Euro amounted toapproximately €1,350 million in fiscal 2009. Including the impact of exchange rate changes against othercurrencies, consolidated net sales were pushed down by approximately ¥91,000 million compared with fiscal 2008.
Sales in United States in fiscal 2009 decreased by ¥47,258 million, or 19.0%, to ¥201,502, compared with
¥248,760 million in fiscal 2008, due mainly to the impact of the yen’s appreciation, combined with sluggish
growth in sales in the Telecommunications Equipment Group and the Information Equipment Group, and a
decline in demand for electronic components.
Sales in Europe in fiscal 2009 decreased by ¥29,347 million, or 12.8%, to ¥200,483 million, compared with
¥229,830 million in fiscal 2008, due mainly to the impact of the yen’s appreciation coupled with a decrease insales in the Information Equipment Group caused by a reduction in information technology investment.
Sales in Asia in fiscal 2009 decreased by ¥49,078 million, or 21.1%, to ¥183,347 million, compared with
¥232,425 million in fiscal 2008, due primarily to a decline in demand for components used in digital consumer
equipment and the yen’s appreciation.
Sales in Others in fiscal 2009 decreased by ¥1,717 million, or 2.4%, to ¥69,867 million, compared with ¥71,584
million in fiscal 2008, due to a decrease in sales in the Information Equipment Group, which offset the additionof the sales from mobile phone handset related business acquired from SANYO.
41

Cost of Sales and Gross Profit
In fiscal 2009, cost of sales decreased by ¥47,125 million, or 5.3%, to ¥836,638 million from ¥883,763 million in
fiscal 2008. The ratio of cost of sales to net sales was 74.1% in fiscal 2009, an increase of 5.6 percentage points
as compared with 68.5% in fiscal 2008. This was due mainly to an increase in the Telecommunication Equipment
Group with the acquisition of the mobile phone related business from SANYO of which the ratio of cost of sales
to net sales was relatively high, in addition to deterioration of profit due to a decline in selling prices of various
components, which was partially offset by comprehensive Group-wide cost reduction activity.
Raw material costs of ¥319,738 million accounted for 38.2% of the total cost of sales in fiscal 2009, which
decreased by ¥57,465 million, or 15.2%, from ¥377,203 million in fiscal 2008. Labor costs of ¥165,809 million
accounted for 19.8% in fiscal 2009, which decreased by ¥1,733 million, or 1.0%, from ¥167,542 million in fiscal
2008. Depreciation expense of ¥70,162 million accounted for 8.4% in fiscal 2009, which increased by¥8,497 million, or 13.8%, from ¥61,665 million in fiscal 2008 due to expanded capital expenditures in fiscal
2008.
As a result, gross profit in fiscal 2009 decreased by ¥114,725 million, or 28.2%, to ¥291,948 million from¥406,673 million in fiscal 2008. The gross profit ratio to net sales decreased by 5.6 percentage points from 31.5%
to 25.9%.
SG&A Expenses and Profit from Operations
Selling, general and administrative (SG&A) expenses in fiscal 2009 decreased by ¥5,724 million, or 2.3%, to¥248,529 million compared with ¥254,253 million in fiscal 2008. This was due mainly to gains on sales ofcertain properties of ¥8,314 million which were recorded as deductions of SG&A expenses, however, Kyocera
recorded impairment losses of ¥2,240 million in goodwill related to the subsidiary in the United States, and of¥2,309 million of long-lived assets which were used for a production of Organic Light-Emitting Diode displays
in fiscal 2009.
Labor costs of ¥122,883 million accounted for 49.4% of total SG&A expenses in fiscal 2009, which decreased by¥655 million, or 0.5%, from ¥123,538 million in fiscal 2008. Sales promotion and advertising cost of ¥36,668
million accounted for 14.8% in fiscal 2009, which decreased by ¥3,876 million, or 9.6%, from ¥40,544 million in
fiscal 2008.
Although SG&A expenses decreased as mentioned above, profit from operations decreased by ¥109,001 million,
or 71.5%, to ¥43,419 million, compared with ¥152,420 million in fiscal 2008, due to a further decrease in grossprofit. The operating margin decreased by 8.0 percentage points to 3.8% in fiscal 2009, compared with 11.8% in
fiscal 2008.
Interest and Dividend Income
Interest and dividend income in fiscal 2009 decreased by ¥3,003 million, or 16.3%, to ¥15,441 million, comparedwith ¥18,444 million in fiscal 2008. This was due mainly to a decrease of interest income in AVX Corporation
resulting from lower interest rate in the United States.
Interest Expense
Interest expense in fiscal 2009 decreased by ¥274 million, or 18.5%, to ¥1,206 million, compared with
¥1,480 million in fiscal 2008. This was due mainly to payments of a part of borrowings at overseas subsidiaries.

42

Foreign Currency Translation
During fiscal 2009, the average exchange rate for the yen appreciated by ¥13, or 11.4%, against the U.S. dollar,
and by ¥19, or 11.7%, against the Euro, as compared with fiscal 2008. At March 31, 2009, the yen appreciated by¥2, or 2.0%, against the U.S. dollar, and by ¥28, or 17.7%, against the Euro, as compared with March 31, 2008.
Kyocera recorded foreign currency transaction losses of ¥91 million in fiscal 2009.
Kyocera typically enters into forward exchange contracts to minimize currency exchange risks on foreign
currency denominated receivables and payables. Kyocera confines its use of derivative financial instruments forhedging its foreign exchange exposures, and does not utilize derivative transactions for trading purposes.
Gains and Losses from Investments
In fiscal 2009, Kyocera’s earnings on equity-method investments increased by ¥369 million, or 6.1%, to¥6,460 million, compared with ¥6,091 million in fiscal 2008.
Kyocera’s equity in earnings of affiliates and unconsolidated subsidiaries in fiscal 2009 was derived mainly frominterests in WILLCOM, Inc. Kyocera Corporation owns a 30% interest in WILLCOM, Inc., which operates a
PHS service in Japan. Kyocera Corporation accounted for this investment using equity method. The increase in
Kyocera’s earnings on equity-method investments was mainly derived from an increase in net income at
WILLCOM, Inc.
Losses on sales of securities, net in fiscal 2009 increased by ¥2,218 million, or 356.6%, to ¥2,840 million,
compared with ¥622 million in fiscal 2008. This was resulted from sales of certain securities which were held byKyocera as a part of its asset allocation.
Losses on impairment of securities in fiscal 2009 increased by ¥6,893 million to ¥7,141 million, comparedwith ¥248 million in fiscal 2008. Kyocera recognized impairment losses as a result of significant declines inmarket value of certain securities. The major part of such losses was derived from the shares of Mitsubishi UFJ
Financial Group, Inc. and its amount was ¥3,935 million.
Income before Income Taxes
Income before income taxes in fiscal 2009 decreased by ¥118,860 million, or 68.0%, to ¥55,982
million compared with ¥174,842 million in fiscal 2008.
Operating profit in the Components Business decreased by ¥68,543 million, or 68.3%, to ¥31,830 million in
fiscal 2009, compared with fiscal 2008 due mainly to a decline in capacity utilization rate owing to a sharp
reduction in demand, and to a reduction in product selling prices.
The Equipment Business recorded an operating loss of ¥4,216 million in fiscal 2009, a decrease of ¥50,540
million compared with fiscal 2008, due to significant profit declines in the Telecommunications Equipment
Group and the Information Equipment Group.

43

Operating Profit (Loss) by Reporting Segment
The following table shows a breakdown of Kyocera’s consolidated income before income taxes, and operating
profit for fiscal 2008 and fiscal 2009 by the seven reporting segments:
Years ended March 31,
2008
2009
Amount%*Amount%*(Yen in millions)Fine Ceramic Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Semiconductor Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applied Ceramic Products Group . . . . . . . . . . . . . . . . . . . . . . . . .
Electronic Device Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 11,167
20,02732,65536,524

Total Components Business . . . . . . . . . . . . . . . . . . . . . . . . .
Telecommunications Equipment Group . . . . . . . . . . . . . . . . . . . .
Information Equipment Group . . . . . . . . . . . . . . . . . . . . . . . . . . .

13.7
13.0
21.8
12.4

(240) —
8,671
6.4
27,469 18.4
(4,070) ——(56.7)(15.9)—

100,373 14.8
6,786
3.1
39,538 14.3

31,8305.5(17,713) —13,4975.9(68.3)—(65.9)

Total Equipment Business . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

46,324
9,635

9.3
7.0

(4,216) —14,106 11.2—
46.4

Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity in earnings of affiliates and unconsolidated
subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments and eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . .

156,332
12,49712.1—

41,720
7,632

3.7
—

(73.3)(38.9)

6,091 —
(78) —

6,460
170

—
—

6.1
—

Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥174,842¥ 55,982

5.0(68.0)

13.5¥

Increase(Decrease)%* % to net sales of each corresponding segment(1) Fine Ceramic Parts Group
This reporting segment recorded operating loss of ¥240 million in fiscal 2009.
Production activity in numerous industries, namely the semiconductor, digital consumer equipment andautomotive industries, declined sharply due to the global economic downturn, which led to a substantial slump incomponent demand. Operating profit decreased by ¥11,407 million compared with ¥11,167 million in fiscal 2008
due to the reduction in production volume and decline in capacity utilization rate. Other factors behind the profit
decline included an increase in depreciation costs. Operating profit in this reporting segment in fiscal 2009 was
pushed down by approximately ¥900 million compared with fiscal 2008 due to the impact of the yen’s
appreciation.
(2) Semiconductor Parts GroupOperating profit in this reporting segment in fiscal 2009 decreased by ¥11,356 million, or 56.7%, to¥8,671 million, compared with ¥20,027 million in fiscal 2008.
In particular, the capacity utilization rate declined significantly from the second half due to a decrease incomponent demand for mobile phone handsets, digital still cameras and servers, and to a slump in
telecommunications infrastructure related investment, leading to lower profitability from ceramic packages andorganic packages. Operating profit in this reporting segment in fiscal 2009 was pushed down by approximately¥2,100 million compared with fiscal 2008 due to the impact of the yen’s appreciation.

44

(3) Applied Ceramic Products GroupOperating profit in this reporting segment in fiscal 2009 decreased by ¥5,186 million, or 15.9%, to¥27,469 million, compared with ¥32,655 million in fiscal 2008.
Despite the significant impact of the yen’s appreciation, the solar energy business posted profit for fiscal 2009
due to the positive effects of sales growth coupled with comprehensive cost reductions in each production
process. Overall operating profit in this reporting segment declined, however, due to stagnant production activity
and continued inventory adjustments in automobile industries, a substantial decline in production volume of
cutting tools caused by a decrease in demand, and impairment loss on goodwill of ¥2,240 million at a subsidiary.
Operating profit in this reporting segment in fiscal 2009 was pushed down by approximately ¥6,200 million
compared with fiscal 2008 due to the impact of the yen’s appreciation.
(4) Electronic Device Group
This reporting segment recorded operating loss of ¥4,070 million in fiscal 2009, a decrease of ¥40,594 million
compared with operating profit of ¥36,524 million in fiscal 2008.
The capacity utilization rate was down, particularly for ceramic capacitors, timing devices, and connectors, due
to a sharp decline in component demand from the second half owing to lower production of mobile phonehandsets, PCs and digital consumer electronics. In addition, the decline in demand led to intense component pricecompetition, causing prices to drop significantly, by around 20% in certain components. The yen’s appreciation
also forced profits down by approximately ¥4,600 million compared with fiscal 2008. Furthermore, the decreasein profit reflected an impairment loss of ¥2,309 million on long-lived asset used for production of Organic LightEmitting Diode displays, AVX Corporation’s restructuring charges of approximately ¥1,800 million related to
employee separations and facility consolidations, and AVX Corporation’s accrual of ¥1,711 million for estimatedenvironmental remediation costs.
(5) Telecommunications Equipment Group
This reporting segment recorded operating loss of ¥17,713 million in fiscal 2009, a decrease of ¥24,499 million
compared with operating profit of ¥6,786 million in fiscal 2008.
Profitability in the mobile phone handset business acquired from SANYO was depressed due to deterioration inmarket conditions and to a considerable decline in sales of handsets in Japan and overseas owing to a reduction in
the number of new models released. Profitability was also decreased in Kyocera’s traditional mobile phonehandset business as sales at Kyocera Wireless Corp., a subsidiary in the U.S., declined due to delayeddevelopment of new products and to the economic downturn. Other factors behind the decline in profit wereincreases in depreciation and amortization costs and R&D expenses by ¥8,193 million and ¥3,468 million,
respectively, compared with fiscal 2008, due mainly to the acquisition of the mobile phone related business fromSANYO. Employee separations were implemented at Kyocera Wireless Corp. in the fourth quarter to enhance
profitability from the following fiscal period, and this resulted in the recording of approximately ¥1,300 million.
(6) Information Equipment GroupOperating profit in this reporting segment in fiscal 2009 decreased by ¥26,041 million, or 65.9%, to¥13,497 million, compared with ¥39,538 million in fiscal 2008.
Operating profit for fiscal 2009 was pushed down by approximately ¥7,200 million compared with fiscal 2008
due to the impact of the yen’s appreciation against the Euro and the U.S. dollar. A significant decline ininvestments in information technology at corporate sectors led to reduction in sales volumes of both printers andmultifunctional peripherals compared with fiscal 2008. In addition, product selling prices dropped between 5% to
15% on a full-year basis for both printers and multifunctional peripherals.
45

(7) Others
Operating profit in this reporting segment in fiscal 2009 increased by ¥4,471 million, or 46.4%, to¥14,106 million, compared with ¥9,635 million in fiscal 2008.
Despite profit declines at Kyocera Communication Systems Co., Ltd. and Kyocera Chemical Corporation due todeterioration in the business environment, recorded ¥9,352 million of gains on sales of property, plant andequipment, net which includes gains on sales of certain properties.
(8) Corporate
Corporate income and losses mainly constitute gains or losses related to financial assets, and income related to
management supporting service provided by Kyocera’s head office to each reporting segment. Corporate income
decreased by ¥4,865 million, or 38.9%, to ¥7,632 million compared with ¥12,497 million in fiscal 2008. Thiswas mainly due to losses on sales of securities and losses on impairment of securities recognized in fiscal 2009.
Income Taxes
Current and deferred income taxes in fiscal 2009 decreased by ¥37,456 million, or 62.2%, to ¥22,779 million
compared with ¥60,235 million in fiscal 2008.
The effective tax rate of 40.7% in fiscal 2009 was 6.2 points higher than the effective rate in fiscal 2008 of
34.5%. This was due mainly to an increase in valuation allowances on deferred tax assets recorded at certain
foreign subsidiaries with pre-tax losses.
For detailed information, see Note 17 to the Consolidated Financial Statements in this annual report on Form 20-F.
Noncontrolling Interests
Net income attributable to noncontrolling interests in fiscal 2009 amounted to ¥3,697 million and net income
attributable to noncontrolling interests related to AVX Corporation, which accounted for approximately 30%
of noncontrolling ownership interests, amounted to ¥2,406 million. Noncontrolling interests in fiscal 2009
decreased by ¥3,666 million, or 49.8%, compared with noncontrolling interests of ¥7,363 million in fiscal 2008.
This was due mainly to a decrease in net income at AVX Corporation.
Critical Accounting Policies and Estimates
Kyocera’s consolidated financial statements are prepared in conformity with accounting principles generally
accepted in the United States of America. The preparation of these consolidated financial statements requires theuse of estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the dateof consolidated financial statements and the reported amounts of revenues and expenses during the periods
presented. Actual results may differ from these estimates, judgments and assumptions.
An accounting estimate in Kyocera’s consolidated financial statements is a critical accounting estimate if it
requires Kyocera to make assumptions about matters that are highly uncertain at the time the accounting estimate
is made and if either different estimates that Kyocera reasonably could have used in the current period or changes
in the accounting estimate that are reasonably likely to occur from period to period would have a material impact
on the presentation of Kyocera’s financial condition, changes in financial condition or results of operations.
Kyocera has identified the following critical accounting policies with respect to its financial presentation.
Allowances for Doubtful Accounts
Kyocera maintains allowances for doubtful accounts related to trade notes receivables, trade accounts receivables
and finance receivables for estimated losses resulting from customers’ inability to make timely payments,
including interest on finance receivables. Kyocera’s estimates are based on various factors, including the length46

of past due payments, historical experience and current business environments. In circumstances where it isaware of a specific customer’s inability to meet its financial obligations, a specific allowance against theseamounts is provided considering the fair value of assets pledged by the customer as collateral.
Inventory Valuation
Kyocera estimates the amount of write-downs required to properly value inventory. Write-downs are provided
for excess, slow-moving and obsolete inventory as well as valuation losses required to adjust recorded cost to its
market value. Kyocera generally considers all inventory aged over certain holding periods to be slow-moving or
obsolete. Kyocera also records inventory write-downs based on its projections of future demand, market
conditions and related management-led initiatives even though the age of corresponding inventory is shorter thancertain holding periods.
As a result of continuous strict controls and adjustments on inventories, Kyocera recognized inventory writedowns of ¥8,719 million and ¥9,207 million in fiscal 2009 and 2010, respectively. The amounts of theseinventory write-downs by reporting segments appear in Note 19 to the Consolidated Financial Statements
included in this annual report on Form 20-F. A large portion of these inventory write-downs arose frominventories of telecommunications equipment and applied ceramic products. These products turned out to be
obsolete because of their short product lives, and were subject to a decrease in demand and a decline in price.
The majority of Kyocera’s inventories are produced for the IT industry. Each of these products generally has ashort product life, and is susceptible to market demand and price fluctuations. In light of the impacts by segments,
inventory write-downs significantly affect all the segments. If market conditions and demand in the information
technology industry are less favorable than Kyocera’s projections, additional write-downs may be required.
Impairment of Securities and Investments
Kyocera records impairment charges for debt and equity securities when it believes that the decline of fair value
is other-than-temporary. Kyocera regularly reviews each security and investment for impairment based on theextent to which the fair value is less than cost, the duration of the decline, the anticipated recoverability of fairvalue in the future and the financial conditions of the issuer. Poor operating results of the issuers of thesesecurities or adverse changes in the market may cause impairment losses in future periods. The impairment
losses are recorded as Corporate losses.
Kyocera recognized losses on impairment of debt and equity securities of ¥7,141 million and ¥217 million in
fiscal 2009 and 2010, respectively. Mainly, Kyocera recorded losses on impairment of certain equity securities dueto the decline in fair value below cost for considerable length of time and the extent was severe in fiscal 2009.
Kyocera is currently a major shareholder of KDDI Corporation. The price fluctuation of the shares of KDDI
Corporation may affect Kyocera’s financial conditions. At March 31, 2010, the unrealized gain of¥28,140 million on the shares of KDDI Corporation held by Kyocera had increased compared with that of¥15,540 million as of at March 31, 2009, reflecting a fluctuation of the market price of the shares of KDDI
Corporation during fiscal 2010. As the operating results of KDDI Corporation were stable, the performance ofthe shares of KDDI Corporation is considered to be stable. For detailed information on the gross unrealized gainor loss, see Note 3 to the Consolidated Financial Statements in this annual report on Form 20-F.
Impairment of Long-Lived Assets
Kyocera reviews its long-lived assets and intangible assets with definite useful lives for impairment whenever
events or changes in circumstances indicate that its carrying amount may not be recoverable. Long-lived assets
and intangible assets with definite useful lives are considered to be impaired when the expected undiscounted
cash flow from the asset group is less than its carrying value. A loss on impairment is recognized based on theamount by which the carrying value exceeds the fair value of the long-lived assets and intangible assets withdefinite useful lives.
47

In fiscal 2009, Kyocera recognized ¥2,309 million of a loss on impairment on the long-lived assets which wereused for a production of Organic Light-Emitting Diode (OLED) displays in the Electronic Device Group. Suchloss was included in selling, general and administrative expenses.
Since qualities and characteristics of OLED displays requested by the users heightened recently and Kyocerachanged the target of production in which they were used, Kyocera transferred such business from amanufacturing department to a research and development department. As a result of this transfer, Kyocera
reviewed the future plan of OLED displays business and concluded the expected undiscounted cash flow fromthe long-lived assets of OLED displays business was less than its carrying value. Consequently, Kyocera
recorded a loss on impairment based on the amount by which the carrying value exceeded the fair value of thelong-lived assets of OLED displays business. The fair value of the long-lived assets of OLED displays
business was estimated by using the expected present value of future cash flow.
Goodwill and Other Intangible Assets
Goodwill and intangible assets with indefinite useful lives, rather than being amortized, are tested for impairment
at least annually, and also following any events and changes in circumstances that might lead to impairment.
Intangible assets with definite useful lives are amortized straight line over their respective estimated useful lives
to their estimated residual values, and reviewed for impairment whenever events or changes in circumstancesindicate that their carrying amount may not be recoverable.
The goodwill of ¥1,538 million which Kyocera group acquired during fiscal 2010 was based on acquisitionsof the common stocks of two distributors of information equipment in Korea, Kyocera Mita Korea Co., Ltd. andKyocera Mita Korea Document Solution Co., Ltd., by Kyocera Mita included in the Information Equipment
Group and based on the acquisition of the common stocks of Net it works, Inc. by Kyocera Communication
Systems Co., Ltd. included in Others segment.
The goodwill of ¥26,449 million which Kyocera group acquired during fiscal 2009 was mainly based on theacquisition of the mobile phone related business from SANYO by Kyocera Corporation included in the
Telecommunications Equipment Group and the acquisition of a controlling interest in TAAG to consolidated
subsidiary by Kyocera Mita included in the Information Equipment Group.
For detailed information of these acquisitions, see Note 2 to the Consolidated Financial Statements in thisannual report on Form 20-F.
In fiscal 2009, Kyocera recognized impairment losses on goodwill in the amounts of ¥2,240 million in the
Applied Ceramic Products Group and ¥1,217 million in the Others segment. The sluggish performances at a U.S.
subsidiary in the Applied Ceramic Products Group and at a Japanese subsidiary in the Others segment led tosignificant declines in their fair values. The fair values of those goodwill were determined through the use ofvarious methodologies such as discounted cash flows and comparable valuations of similar companies.
Deferred Tax Assets
Kyocera records deferred tax assets with valuation allowances to adjust their carrying amounts when it believes
that it is more likely than not that the assets will not be realized. The valuation of deferred tax assets principallydepends on the estimation of future taxable income and feasible tax planning strategies. If future taxable income
is lower than expected due to future market conditions or poor operating results, significant adjustments todeferred tax assets may be required. At March 31, 2010, deferred tax assets amounted to ¥99,388 million, which
Kyocera considers will reasonably be realized in the future. This estimate is reasonable when compared with theamounts of income from continuing operations before income taxes and income taxes in fiscal 2010.
Benefit Plans
The over funded or under funded status of defined benefit postretirement plans, which depends on projected
benefit obligations and plan assets, are recognized as an asset or liability in its consolidated balance sheets48

and changes in that funded status are recognized through comprehensive income in the year in which the changes
occur. Projected benefit obligations are determined on an actuarial basis and are significantly affected by theassumptions used in their calculation, such as the discount rates, the rate of increase in compensation levels andother assumptions. The expected long-term rate of return on plan assets is also used as an assumption.
Kyocera determines the discount rate by referencing the yield on high quality fixed income securities such as
Japanese Government Bonds. The rate of increase in compensation levels is determined based mainly on resultsof operations and inflation. The expected return on plan assets is determined based on the rate of historicalearnings and Kyocera’s expectation of future performance of the funds in which plan assets areinvested. Kyocera annually reviews the assumptions underlying its actuarial calculations, making adjustments
based on current market conditions, if necessary.
If Kyocera is required to decrease its assumptions of the discount rate and the expected long-term rate of returnon plan assets because of a stagnation of Japanese and global economies, projected benefit obligations and net
periodic pension costs will increased.
Sensitivity analysis of benefit plans
The following table illustrates the effect of assumed changes in discount rates and the expected rate of return onplan assets, while holding assuming all other assumptions consistent, for the benefit plan at Kyocera Corporationand its major domestic subsidiaries which accounts for a significant portion of Kyocera’s projected benefit
obligations and net periodic pension costs.
Effect on projected benefit obligation
as of March 31, 2010
(Yen in millions)

Discount rates:
0.25% decrease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.25% increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 4,100(3,873)
Effect on income before income taxes
for the year ending March 31, 2011
(Yen in millions)

Discount rates:
0.25% decrease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.25% increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected rate of return on plan assets:
0.25% decrease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.25% increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

(82)
79
(334)
334

Contingencies
Kyocera is subject to various lawsuits and claims which arise in the ordinary course of business. Kyocera
consults with legal counsel and assesses the likelihood of adverse outcomes of these contingencies. Kyocera
records liabilities for these contingencies when the likelihood of an adverse outcome is probable and the amountis reasonably estimable. In making these estimates, Kyocera considers the progress of the lawsuits, the situationsof other companies that are subject to similar lawsuits and other relevant factors. The amounts of liabilities
accrued are based on estimates and may be significantly affected by further developments or the resolution ofthese contingencies in the future.
AVX Corporation, a subsidiary in the U.S., has been named as a potentially responsible party (PRP) in state andfederal administrative proceedings seeking contribution for costs associated with the correction and remediationof environmental conditions at various waste disposals and operating sites. AVX Corporation continues to49monitor these actions and proceedings and to vigorously defend its interests. AVX Corporation currently has
reserves for current remediation, compliance and legal cost related to these matters.
In July 2007, AVX Corporation received oral notification from the Environmental Protection Agency (EPA), andin December 2007, written notification from the U.S. Department of Justice indicating that the United States ispreparing to exercise the reopener provision under a 1991 consent decree relating to the environmental
conditions at, and remediation of, New Bedford Harbor in the Commonwealth of Massachusetts. The EPA has
indicated that remediation costs through December 6, 2007 (which remediation is ongoing) are approximately¥29,621 million. AVX Corporation has not yet completed an investigation of the monies spent or its available
defenses in light of the notification. AVX Corporation has also not yet determined whether or to what extent
other parties may bear responsibility for these costs.
On April 1, 2008, the U.S. Department of Justice indicated that the future work to be performed at the harbor is
expected to exceed hundreds of millions of dollars under current estimates. AVX Corporation anticipates further
discussions with the U.S. Department of Justice, the EPA and the Commonwealth of Massachusetts.
The potential impact of this matter on Kyocera’s consolidated results of operations, financial positions and cash
flows cannot be determined at this time.
Revenue Recognition
Kyocera generates revenue principally through the sale of industrial components and telecommunications andinformation equipment. Kyocera’s operations consist of the following seven reporting segments: (1) Fine
Ceramic Parts Group, (2) Semiconductor Parts Group, (3) Applied Ceramic Products Group, (4) Electronic
Device Group, (5) Telecommunications Equipment Group, (6) Information Equipment Group and (7) Others.
Kyocera recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title
and risk of loss have been transferred to the customer or services have been rendered, the sales price is fixed ordeterminable and collectability is reasonably assured in accordance with Financial Accounting Standards Board(FASB)’s Accounting Standards Codification (ASC) 605, “Revenue Recognition.” Sales to customers in each of
the above segments are based on the specific terms and conditions contained in basic contracts with customers
and firm customer orders which detail the price, quantity and timing of the transfer of ownership (such as risk ofloss and title) of the products.
For most customer orders, the transfer of ownership and revenue recognition occurs at the time of shipment of
the products to the customer. For the remainder of customer orders, the transfer of ownership and revenue
recognition occurs at the time of receipt of the products by the customer, with the exception of sales of solar
power generating systems in the Applied Ceramic Products Group and information equipment in the Information
Equipment Group for which sales are made to end users together with installation services. The transfer ofownership and revenue recognition in these cases occur at the completion of installation and customer
acceptance, as we have no further obligations under the contracts and all revenue recognition criteria under ASC
605 are met. When Kyocera provides a combination of products and services, the arrangement is evaluated under
ASC 605-25, “Multiple-Element Arrangements.”
In addition, in the Information Equipment Group, Kyocera may enter into sales contracts and lease agreements
ranging from one to seven years directly with end users. Sales contracts and lease agreements may include
installation service and have customer acceptance clauses. For sales and sales-type lease agreements, revenue isrecognized at the completion of installation and customer acceptance which usually occurs on the same business
day as delivery. For sales-type leases, unearned income (which represents interest) is amortized over the leaseterm using the effective interest method in accordance with ASC 840, “Leases.”50

For all sales in the above segments, product returns are only accepted if the products are determined to be
defective. There are no price protections, stock rotation or returns provisions, except for certain programs in theElectronic Device Group as noted below.
Sales Incentives
In the Electronic Device Group, sales to independent electronic component distributors may be subject to various
sale programs for which a provision for incentive programs is recorded as a reduction of revenue at the time ofsale, as further described below in accordance with ASC 605-50, “Customer Payments and Incentives” and ASC
605-15, “Products.”(a) Distributor Stock Rotation Program
Stock rotation is a program whereby distributors are allowed to return for credit, qualified inventory, semiannually, equal to a certain percentage of the previous six months net sales. In accordance with ASC 605-15, anestimated sales allowance for stock rotation is recorded at the time of sale based on a percentage of distributor
sales using historical trends, current pricing and volume information, other market specific information and input
from sales, marketing and other key management. We believe that these procedures enable us to make reliable
estimates of future returns under the stock rotation program. Our actual results approximate our estimates. Whenthe products are returned and verified, the distributor is given credit against their accounts receivable.
(b) Distributor Ship-from-Stock and Debit Program
Ship-from-Stock and Debit (ship and debit) is a program designed to assist distributors in meeting competitive
prices in the marketplace on sales to their end customers. Ship and debit programs require a request from the
distributor for a pricing adjustment for a specific part for a sale to the distributor’s end customer from the
distributor’s stock. Ship and debit authorizations may cover current and future distributor activity for a specificpart for a sale to their customer. In accordance with ASC 605, at the time we record the sales to the distributor,
an allowance for the estimated future distributor activity related to such sales is provided since it is probable thatsuch sales to distributors will result in ship and debit activity. In accordance with ASC 605-15, Kyocera records
an estimated sales allowance based on sales during the period, credits issued to distributors, distributor inventory
levels, historical trends, market conditions, pricing trends noted in direct sales activity with original equipment
manufacturers and other customers, and input from sales, marketing and other key management. These
procedures require the exercise of significant judgments. We believe that these procedures enable us to makereliable estimates of future credits under the ship and debit program. Our actual results approximate ourestimates.
Sales Rebates
In the case of sales to distributors in the Applied Ceramic Products Group and Information Equipment Group,
Kyocera provides cash rebates when predetermined sales targets are achieved during a certain period. Provisions
for sales rebates are recorded as a reduction of revenue at the time of revenue recognition based on the best
estimate of forecasted sales to each distributor in accordance with ASC 605-50.
Sales Returns
Kyocera records an estimated sales return allowance at the time of sales based on historical return experience.
Products Warranty
For after-service costs to be paid during warranty periods, Kyocera accrues a product warranty liability for
claims under warranties relating to the products that have been sold. Kyocera records an estimated productwarranty liability based on its historical repair experience.
51

In the Information Equipment Group, Kyocera provides a standard one year manufacturer’s warranty on its
products. For sales directly to end users, Kyocera offers extended warranty plans that may be purchased and thatare renewable in one year incremental periods at the end of the warranty term. Service revenues are recognizedover the term of the related service maintenance contracts in accordance with ASC 605-20, “Services.”
Uncertainty in Income Taxes
Kyocera adopts an interpretation of ASC 740 “Income Taxes”. Kyocera records liabilities for unrecognized tax
benefits based on the premise of being subject to income tax examination by tax authorities, when it is more
likely than not that tax benefits associated with tax positions will not be sustained. Actual results such as
settlements with tax authorities may differ from the recognition accounted for under ASC 740.
At March 31, 2010, gross unrecognized tax benefits amounted to ¥8,352 million. Kyocera does not anticipate thefinal resolution of procedures to have a material impact on the consolidated statements of income in the future.
Recently Adopted Accounting Standards
Kyocera adopted the ASC 105, “Generally Accepted Accounting Principles” (former Statement of Financial
Accounting Standards (SFAS) No. 168, “The FASB Accounting Standards Codification and Hierarchy ofGenerally Accepted Accounting Principles—a replacement of FASB Statement No. 162”) on July 1, 2009. Thisaccounting standard compiles all generally accepted accounting principles in the U.S. and establishes“Accounting Standards Codification” as the single official source of authoritative generally accepted accounting
standards. The adoption of this accounting standard had no impact on Kyocera’s consolidated results ofoperations, financial position and cash flows.
Kyocera adopted the ASC 805, “Business Combinations” (former SFAS No. 141 (revised 2007), “Business
Combinations”) on April 1, 2009, which requires assets, liabilities and noncontrolling interests be measured atfair value. Under this accounting standard, transaction and restructuring costs are required to be generally
expensed, as well as contingent consideration and in-process research and development be recorded at fair valueon acquisition date as a part of fair value of acquired business. Any tax adjustment made after the measurement
period impacts income tax expenses. This accounting standard also requires companies to recognize an asset
acquired or a liability assumed in a business combination that arises from a contingency at fair value, at theacquisition date, if the acquisition-date fair value of that asset or liability can be determined during themeasurement period. The adoption of this accounting standard did not have a material impact on Kyocera’s
consolidated results of operations, financial position and cash flows.
Kyocera adopted the ASC 810, “Consolidation” (former SFAS No. 160, “Noncontrolling Interests inConsolidated Financial Statements—an Amendment of Accounting Research Bulletin No. 51”) on April 1, 2009.
This accounting standard requires that a noncontrolling interest in a subsidiary is an ownership interest in the
consolidated entity that should be reported as equity in the consolidated financial statements, and requires thatchanges in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary
shall be accounted for as equity transactions. Upon the adoption of this accounting standard, noncontrollinginterests, which were previously referred to as minority interests and classified between total liabilities andshareholders’ equity on the consolidated balance sheets, are now included as a separate component of total
equity. The presentation of consolidated statements of income and cash flows has also been changed. In addition,in accordance with a requirement of this accounting standard, certain reclassification of previously reported
amounts have been made to the consolidated balance sheet at March 31, 2009, the consolidated statements ofincome and the consolidated statements of cash flows for the year ended March 31, 2008 and 2009. The adoptionof this accounting standard did not have a material impact on Kyocera’s consolidated results of operations,financial position and cash flows.
Kyocera adopted (a) the ASC 820, “Fair Value Measurements and Disclosures” (former FASB Staff Positions(FSP) No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability
52

Have Significantly Decreased and Identifying Transactions That Are Not Orderly”) (b) the ASC 320,
“Investments-Debt and Equity Securities” (former FSP No. 115-2 and former FSP No. 124-2, “Recognition and
Presentation of Other-Than-Temporary Impairments”) (c) the ASC 825, “Financial Instruments” (former FSP
No. 107-1 and former Accounting Principles Bulletins (APB) No. 28-1, “Interim Disclosures about Fair Value of
Financial Instruments”) on April 1, 2009.
(a) The ASC 820 (former FSP No. 157-4) provides guidance on how to estimate the fair value of assets or
liabilities when the volume and level of activity for asset or liability have significantly decreased andon identifying circumstances that indicate a transaction is not orderly. In addition, this accounting
standard requires disclosure in interim and annual periods of the inputs and valuation techniques used
to estimate fair value and a discussion of changes in valuation techniques.
(b) The ASC 320 (former FSP No. 115-2 and former FSP No. 124-2) amends the other-than-temporary
impairment guidance for debt securities and presentation and disclosure requirement of other-thantemporary impairments of debt and equity securities.
(c) The ASC 825 (former FSP No. 107-1 and former APB No. 28-1) requires interim disclosures regarding
the fair values of financial instruments that are within the scope of the ASC 825. Additionally, thisaccounting standard requires disclosure of the methods and significant assumptions used to estimate
the fair value of financial instruments on an interim basis as well as changes of the methods andsignificant assumptions from previous periods.
The adoption of these three ASCs did not have a material impact on Kyocera’s consolidated results of operations,financial position and cash flows.
Kyocera adopted the ASC 855, “Subsequent Events” (former SFAS No. 165, “Subsequent Events”) on April 1,
2009. The purpose of this accounting standard is to establish general standards of accounting for and disclosuresof events that occur after the balance sheet date but before financial statements are issued or are available to beissued. In addition, in February 2010, the FASB issued Accounting Standards Update (ASU) No. 2010-09,“Subsequent Events”, and Kyocera adopted this accounting standard on the date of issuance. This accounting
standard provides amendment to ASC 855 that removes the requirements for an SEC filer to disclose the datethrough which subsequent events have been evaluated. The adoption of this accounting standard did not havea material impact on Kyocera’ s consolidated results of operations, financial position and cash flows.
Kyocera adopted the ASU No. 2009-05, “Measuring Liabilities at Fair Value” on October 1, 2009. Thisaccounting standard provides amendments to provisions related to the fair value measurement of liabilities asfollows:(a) In circumstances in which a quoted price in an active market for the identical liability is not available, areporting entity is required to measure fair value using one or more of the following techniques:•

The quoted price of the identical liability when traded as an asset.

•

Quoted prices for similar liabilities or similar liabilities when traded as assets.

•

Another valuation technique that is consistent with principles of the Topics, such as the income
approach or a market approach.

(b) When estimating the fair value of a liability, a reporting entity is not required to include a separate
input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer ofthe liability.
(c) Both a quoted price in an active market for the identical liability at the measurement date and thequoted price for the identical liability when traded as an asset in an active market when no adjustments
to the quoted price of the asset are required are Level 1 fair value measurements.

53

The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results ofoperations, financial position and cash flows. With respect to the technical terms related to the fair value
measurement in the above description, please refer to the Note 4 to the Consolidated Financial Statements on thisForm 20-F.
Kyocera adopted ASC 715, “Compensation—Retirement Benefits” (former FSP No. 132(R)-1, “Employers’
Disclosures about Postretirement Benefit Plan Assets”) in the year ended March 31, 2010. This accounting
standard provides guidance on employers’ disclosures of a defined benefit pension or other postretirement plan.
Specifically, employers are required to disclose information about fair value measurements of plan assets. As thisaccounting standard is a provision for disclosure, the adoption of this accounting standard had no impact on
Kyocera’s consolidated results of operations, financial position and cash flows.
In January 2010, the FASB issued ASU No. 2010-06, “Improving Disclosures about Fair Value Measurements.”
This accounting standard provides amendments to ASC 820-10 that require new disclosures as follows:(a) Transfer in and out of Level 1 and 2. A reporting entity should disclose separately the amounts ofsignificant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasonsfor the transfers.
(b) Activity in Level 3 fair value measurements. In the reconciliation for fair value measurements using
significant unobservable inputs (Level 3), a reporting entity should present separately information
about purchases, sales, issuance, and settlements.
Kyocera adopted the new disclosures and clarifications of existing disclosures in the year ended March 31, 2010,
except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in
Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15,
2010, and for interim periods within those fiscal years. As this accounting standard is a provision for disclosure,the adoption of this accounting standard had no impact on Kyocera’s consolidated results of operations, financial
position and cash flows. With respect to the technical terms related to the fair value measurement in the above
description, please refer to the Note 4 to the Consolidated Financial Statement on this Form 20-F.
Recently Issued Accounting Standards
In September 2009, the FASB issued ASU No. 2009-13, “Multiple-Deliverable Revenue Arrangements-a
consensus of the FASB Emerging Issues Task Force” which addressed the accounting for multiple-deliverable
arrangements to enable vender to account for products or services separately rather than as a combined unit. Thisaccounting standard addresses how to separate deliverables and how to measure and allocate arrangement
consideration to one or more units of accounting. This accounting standard will be effective prospectively forrevenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010.
Kyocera is currently evaluating the impact that this accounting standard will have on Kyocera’s consolidated
results of operations, financial position and cash flows.
In December 2009, the FASB issued ASU No. 2009-16, “Accounting for Transfers of Financial Assets.” Thisaccounting standard codified former SFAS No. 166, “Accounting for Transfers of Financial Assets-an
amendment of FASB Statement No. 140” issued in June 2009 in the ASC 860. This accounting standard removes
the concept of a qualifying special purpose entity from former SFAS No. 140 and removes the exception fromapplying former FASB Interpretation No. 46 (revised December 2003), Consolidation of Variable Interest
Entities, to qualifying special-purpose entities and establishes specific conditions for reporting a transfer of a
portion of a financial asset as a sale. This accounting standard must be applied as of the beginning of eachreporting entity’s first annual reporting period that begins after November 15, 2009, for interim periods withinthat first annual reporting period and for interim and annual reporting periods thereafter. The adoption of thisaccounting standard is expected to have no material impact on Kyocera’s consolidated results of operations,financial position and cash flows.
54

In December 2009, the FASB issued ASU No. 2009-17, “Improvements to Financial Reporting by Enterprises
Involved with Variable Interest Entities.” This accounting standard codified former SFAS No. 167,
“Amendments to FASB Interpretation No. 46(R)” issued in June 2009 in the ASC 810. This accounting standard
requires an enterprise to perform an analysis to identify the primary beneficiary of a variable interest entity andalso requires ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest
entity. This accounting standard shall be effective as of the beginning of each reporting entity’s first annual
reporting period that begins after November 15, 2009, for interim periods within that first annual reporting
period, and for interim and annual reporting periods thereafter. The adoption of this accounting standard is
expected to have no material impact on Kyocera’s consolidated results of operations, financial position and cash
flows.
B. Liquidity and Capital Resources
Capital Resources
In fiscal 2010, although the deterioration of business environment was sluggish until the second quarter (July 1,
2009 to September 30, 2009), profitability of the Components Business and the Equipment Business improved
significantly from the third quarter (October 1, 2009 to December 31, 2009). Kyocera’s net cash provided byoperating activities in fiscal 2010 was ¥137,583 million, and cash and cash equivalents at March 31, 2010 were¥313,126 million. Kyocera held liquid financial assets, additionally. Based on those facts, Kyocera does notexpect to face financial difficulties in near future.
In the short term, Kyocera expects cash demands for working capital and funds for capital expenditures required
for the expansion of operations, contribution to pension plans and payments of dividends to shareholders.
Kyocera’s primary source of short-term liquidity is cash generated by operations. Certain subsidiaries also
generate capital in the form of loans from financial institutions. At March 31, 2010, Kyocera’s short-termborrowings and long-term debt including current portion totaled ¥46,596 million. The ratio to total assets of
2.5% continues to reflect a low level of dependence. Most borrowings were denominated in the Euro and the yen,
but certain borrowings were denominated in other foreign currencies. Details of these borrowings are describedin “Tabular Disclosure of Contractual obligations,” which also includes the information regarding obligations forthe acquisition or construction of property, plant and equipment.
Capital expenditures in fiscal 2010 decreased by ¥25,186 million, or 39.9%, to ¥37,869 million compared with
¥63,055 million in fiscal 2009. In fiscal 2010, Kyocera made capital expenditures in the solar energy business to
expand production capacity, but Kyocera reduced capital expenditures in other reporting segments due to theweak business environment continuing from fiscal 2009. R&D expenses also decreased by ¥16,021 million, or
24.3%, to ¥49,911 million compared with ¥65,932 million in fiscal 2009. In fiscal 2010, R&D expenses
decreased in all reporting segments due to limiting the categories of research and development activities. Nearly
all capital and R&D expenditures were funded by using cash at hand.
During fiscal 2011, Kyocera expects total capital expenditures to be approximately ¥60,000 million and total
R&D expenses to be approximately ¥60,000 million. Kyocera expects that total capital expenditures will increase
compared with fiscal 2010 in all reporting segments for expanding production capacity and for increasing
production efficiency. Kyocera expects that R&D expenses will also increase compared with fiscal 2010. R&D
expenses in solar energy business and information equipment business, particularly, will increase to expand
future sales. The proportion of R&D expenditures to net sales will be flat compared with fiscal 2010. Nearly all
capital and R&D expenditures will be funded by using cash at hand. Kyocera believes that Kyocera needs toinvest its resources continuously in the development of new business areas and improved technology in order tocreate new products, commercialize advanced technologies and thereby secure future earnings streams.
In fiscal 2010, Kyocera contributed ¥9,954 million to its benefit pension plans, and in fiscal 2011, Kyocera
forecasts to contribute ¥10,141 million to its benefit pension plans. At March 31, 2010, Kyocera’s funded status55

of benefit pension plans ensured the sources of funds sufficient to cover the pension benefits paid to participants
and beneficiaries, and large amounts of additional contributions are not considered to be necessary. Kyocera
expects contributions to pension plan assets will be made by using cash at hand.
In fiscal 2010, Kyocera Corporation paid cash dividends totaling ¥22,023 million, at ¥120 per share. Kyocera
Corporation received approval at the general meeting of shareholders held on June 25, 2010 for the payment ofyear-end dividends totaling ¥11,011 million, or ¥60 per share, on June 28, 2010 to all shareholders of record on
March 31, 2010.
Treasury stock at March 31, 2010 increased by ¥56 million, or 0.1%, to ¥50,624 million, compared with
¥50,568 million at March 31, 2009. Kyocera Corporation acquires treasury stock to facilitate the implementationof flexible capital policies and to develop its business in a dynamic manner in response to changes in theoperating environment.
As described in Note 2 to the Consolidated Financial Statements, Kyocera acquired several businesses
and pertained shares. In fiscal 2010, these acquisition costs, net of cash acquired were ¥4,715 million, and nearly
all acquisitions were funded by using cash at hand.
At March 31, 2010, Kyocera’s working capital totaled ¥745,143 million, an increase of ¥30,788 million, or 4.3%,
compared with ¥714,355 million at March 31, 2009. Its working capital requirements, capital expenditures, debt
repayments and other obligations were funded by using cash in hand.
Kyocera believes cash at hand will be sufficient to fund all cash requirements outlined above at least throughfiscal 2011. Consequently, Kyocera does not currently intend to use any other external financing sources thatmight affect its credit agency ratings. If cash generated by operations are insufficient for funding purposes,
Kyocera retains other financing options, including external sources, such as short-term or long-term borrowings,
as well as financing directly in the capital markets through issuances of debt or equity securities. As evidenced
by equity to assets ratio of 72.8% at March 31, 2010, Kyocera maintains a strong financial position, which leads
Kyocera to believe that any capital requirements could be secured from external sources at a relatively low cost.
Kyocera also maintains good business relationships with several major financial institutions.
Any future significant deterioration in market demand for Kyocera’s products, or a slump in product prices tolevels substantially below those projected by Kyocera, could adversely affect Kyocera’s operating results andfinancial position, possibly resulting in reduced liquidity.
Cash flows
Fiscal 2010 compared with Fiscal 2009
The following table shows a summary of Kyocera’s cash flows for fiscal 2009 and fiscal 2010:
Years ended March 31,
Increase20092010(Decrease)
AmountAmount%(Yen in millions)

Cash flows from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flows from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flows from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of exchange rate changes on cash and cash equivalents . . . . . . . . . . . . .
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at beginning of year . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56¥ 97,794 ¥137,583(201,444) (49,318)(62,930) (38,047)(11,759)(6,339)(178,339)
43,879447,586
269,247
269,247
313,12640.7(75.5)(39.5)(46.1)—(39.8)
16.3

Net cash provided by operating activities in fiscal 2010 increased by ¥39,789 million, or 40.7%, to¥137,583 million from ¥97,794 million in fiscal 2009. This was due mainly to an increase in net income.
Net cash used in investing activities in fiscal 2010 decreased by ¥152,126 million, or 75.5%, to ¥49,318 million
from ¥201,444 million in fiscal 2009. This was due mainly to an increase in withdrawals of certificate deposits
and time deposits, and a decrease in payments for acquisitions of businesses.
Net cash used in financing activities in fiscal 2010 decreased by ¥24,883 million, or 39.5%, to ¥38,047 million
from ¥62,930 million in fiscal 2009. This was due mainly to a significant decrease in payments for acquisition oftreasury stock.
Due mainly to the yen’s appreciation against the Euro and the U.S. dollar between March 31, 2009 andMarch 31, 2010 resulted in decreases in the effect of exchange rate changes on cash and cash equivalents of¥6,339 million.
At March 31, 2010, cash and cash equivalents totaled ¥313,126 million. This represented an increase of¥43,879 million, or 16.3%, from ¥269,247 million at March 31, 2009. Most of Kyocera’s cash and cash
equivalents were denominated in the yen, but certain cash and cash equivalents, mainly in overseas subsidiaries,
were denominated in foreign currencies, such as the U.S. dollar.
Fiscal 2009 compared with Fiscal 2008
The following table shows a summary of Kyocera’s cash flows for fiscal 2008 and fiscal 2009:
Years ended March 31,
Increase2008
2009(Decrease)
AmountAmount%(Yen in millions)

Cash flows from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flows from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flows from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of exchange rate changes on cash and cash equivalents . . . . . . . . . . . . .
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at beginning of year . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥196,935 ¥ 97,794
16,058(201,444)(29,235)(62,930)(18,380)(11,759)
165,378(178,339)
282,208
447,586
447,586
269,247(50.3)—
115.3(36.0)—
58.6(39.8)Net cash provided by operating activities in fiscal 2009 decreased by ¥99,141 million, or 50.3%, to ¥97,794
million from ¥196,935 million in fiscal 2008. This was due mainly to a decrease in net income.
Cash flow from investing activities turned from ¥16,058 million of cash inflows in fiscal 2008 to ¥201,444
million of cash outflows in fiscal 2009, which represented a decrease in cash inflow by ¥217,502 million
compared with fiscal 2008.
This was due mainly to a decrease in withdrawal of certificate deposits and time deposits, and a decrease inproceeds from sales and maturities of available-for-sale securities.
Net cash used in financing activities in fiscal 2009 increased by ¥33,695 million, or 115.3%, to ¥62,930 million
from ¥29,235 million in fiscal 2008.
This was due mainly to purchases of treasury stock from November 28, 2008 to December 22, 2008.
Due mainly to the yen’s appreciation against the Euro and the U.S. dollar between March 31, 2008 andMarch 31, 2009 resulted in decreases in the effect of exchange rate changes on cash and cash equivalents of¥11,759 million.
57

At March 31, 2009, cash and cash equivalents totaled ¥269,247 million. This represented a decrease of¥178,339 million, or 39.8%, from ¥447,586 million at March 31, 2008. Most of Kyocera’s cash and cash
equivalents were denominated in the yen but certain cash and cash equivalents, mainly in overseas subsidiaries,
were denominated in foreign currencies, such as the U.S. dollar.
Assets, Liabilities and Equity
Kyocera’s total assets at March 31, 2010 increased by ¥74,915 million, or 4.2% to ¥1,848,717 million, comparedwith ¥1,773,802 million at March 31, 2009.
Cash and cash equivalents increased by ¥43,879 million, or 16.3%, to ¥313,126 million. This was due mainly tothe effect of net cash gained by operating activities and withdrawal of time deposits at Kyocera Corporation.
Trade receivables-Accounts increased by ¥32,149 million, or 20.3%, to ¥190,903 million, due mainly toincreases in overall demand driven by recovery of economic conditions.
Inventories decreased by ¥22,280 million, or 11.2%, to ¥177,361 million, due mainly to the effect of inventories
adjustment at Kyocera Mita and shipment acceleration in the solar energy business.
Advance payments increased by ¥22,437 million, or 75.1%, to ¥52,316 million, due to an increase of advancepayments of the long-term purchase agreements for certain materials at Kyocera Corporation.
Other current assets decreased by ¥13,014 million, or 26.9%, to ¥35,370 million, due mainly to refunded income
taxes at Kyocera Corporation.
Investments and advances to affiliates and unconsolidated subsidiaries decreased by ¥18,115 million, or 93.5%,
to ¥1,261 million, due mainly to an impairment loss of an investment in WILLCOM, Inc.
Investments in debt and equity securities, long term increased by ¥44,579 million, or 13.7%, to ¥370,124 million,
due mainly to increases in market values of the shares of KDDI Corporation and other equity securities at
March 31, 2010 compared with March 31, 2009, and purchases of corporate bonds.
Total property, plant and equipment at cost, net of accumulated depreciation, decreased by ¥25,955 million, or
9.8%, to ¥240,099 million. Capital expenditure in fiscal 2010 was ¥37,869 million, and depreciation was ¥60,602
million.
Intangible assets decreased by ¥10,484 million, or 17.5%, to ¥49,593 million, due mainly to amortization and thecompletion of the allocation of fair value to the acquired assets and assumed liabilities of TA Triumph-Adler AG,
a consolidated subsidiary of Kyocera Mita in fiscal 2010.
Other assets increased by ¥14,145 million, or 23.2%, to ¥75,049 million, due mainly to increased prepaid benefit
cost resulted from recovery performance of benefit plan assets and a decrease in projected benefit
obligation resulted from a change in discount rates applied to actuarial calculation.
Kyocera’s total liabilities at March 31, 2010 increased by ¥50,741 million, or 13.0%, to ¥441,455 million,
compared with ¥390,714 million at March 31, 2009.
Notes and accounts payable-Trade increased by ¥27,171 million, or 43.4%, to ¥89,750 million compared with
March 31, 2009, due mainly to an increase in purchases in line with an increase in sales.
Notes and accounts payable-Other increased by ¥20,327 million, or 46.8%, to ¥63,779 million due mainly to anincrease in payables for acquisitions of certificate deposits at Kyocera Corporation.
58

Accrued income taxes increased by ¥8,172 million, or 110.0%, to ¥15,602 million due mainly to increases ofincome before income taxes.
Deferred taxes liabilities increased by ¥4,080 million, or 5.7%, to ¥75,619 million, due mainly to increases inmarket values of the shares of KDDI Corporation and other equity securities at March 31, 2010 compared with
March 31, 2009.
Total equity at March 31, 2010 increased by ¥24,174 million, or 1.7%, to ¥1,407,262 million, compared with
¥1,383,088 million at March 31, 2009.
Retained earnings at March 31, 2010 increased by ¥18,072 million, or 1.6%, due to a net income for fiscal 2010of ¥40,095 million offset by cash dividend payments of ¥22,023 million.
Accumulated other comprehensive income increased by ¥3,663 million, to a loss of ¥(51,010) million. Net
unrealized gains on securities increased by ¥11,847 million, or 101.9%, due mainly to increases in market valuesof the shares of KDDI Corporation and other equity securities at March 31, 2010 compared with March 31, 2009.
Foreign currency translation adjustments decreased by ¥9,247 million to a loss of ¥ (75,449) million, due mainly
to the appreciation of the yen against the U.S. dollar.
The Kyocera Corporation shareholders’ equity ratio at March 31, 2010 was 72.8%, down 1.8 percentage points
from 74.6% at March 31, 2009.
Noncontrolling interests in subsidiaries, principally AVX Corporation, increased by ¥2,602 million, or 4.4%, to¥62,027 million, compared with ¥59,425 million at March 31, 2009, due mainly to strong performance at AVX
Corporation and an acquisition of the common stock of Net it works, Inc. by Kyocera Communication Systems
Co., Ltd.
C. Research and Development, Patents and Licenses, etc.
Kyocera continuously aims at expanding sales and boosting profitability to improve group performance over the
medium and long terms. To achieve these objectives, Kyocera seeks to create new technologies, products andmarkets by integrating group-wide management resources in order to generate business that will become core to
the group in the future. Particular efforts are made to create new businesses in high-growth-potential areas;
namely, the markets for information and communications and for environment and energy.
(1) Fine Ceramic Parts GroupBy making effective use of fine ceramic materials technology, processing technology and design technology,
Kyocera is seeking to strengthen the development of fine ceramic components, especially of large size sapphire
substrates for LEDs, the demand for which is expected to expand dramatically.
In the automotive market, efforts are being undertaken to develop products that meet the need for environmentresponsiveness, energy-saving and safety. Specific endeavors include the development and production of heatercore for glow plugs and piezoelectric-stacks that enable precision control for the fuel injection of green diesel
engine cars and camera modules to enhance driving safety.
(2) Semiconductor Parts Group
Kyocera is advancing the development of new ceramic packages and organic packages for various usages in
information and communication market, where demand is expected to expand. In the ceramic package business,efforts are being made to develop smaller, thinner and more highly sophisticated ceramic packages that meetadvancements in mobile phone handsets. In the organic package business, Kyocera is developing new flip chippackages for next-generation high-performance semiconductors and system in a package (SiP) to realize eventhinner packages with narrower pitches.
59

(3) Applied Ceramic Products Group
While striving to further increase the conversion efficiency and strengthen cost reduction of polycrystalline solar
cells, Kyocera is developing a variety of next-generation solar cells.
(4) Electronic Device Group
Kyocera develops small, thin ceramic capacitors and various filters for mobile phone handsets and other devices
in the wireless communications market. In the industrial machinery and information equipment markets, Kyocera
is developing various sensors and actuators through piezoelectric ceramic technology.
In the thin film components, Kyocera is developing thermal printheads for barcode printers that incorporate“ecogeneration specifications” as part of a new environmental concept, as well as inkjet printheads capable ofhigh speed full-color printing, and high-luminance, slim and lightweight TFT color liquid crystal displays.
(5) Telecommunications Equipment GroupBy making effective use of component, device and software technologies within the group, Kyocera is promoting
research and development towards introduction of high-value-added products for the mobile communications
equipment market, in which functions are becoming increasingly advanced. Kyocera is also strengthening thedevelopment of equipment such as base stations and terminals for next generation telecommunication protocol
such as Long Term Evolution (LTE) that enable stable, high-speed and high-data rate communication.
(6) Information Equipment Group
Kyocera is promoting the development of more color-based and solutions-oriented printers, multifunction
peripherals and other information equipment based on the “ECOSYS” concept, which realizes longer engine life,
reduced running costs and minimal waste. We are pursuing this goal through the incorporation of our amorphoussilicon photoreceptor drum with high abrasion resistance. Apart from bolstering the lineup for both black-andwhite and color ECOSYS printers and multifunction peripherals, Kyocera is advancing the development of
document solutions products that can handle the integrated management of documents and digital information.
Efforts are also being made to strengthen security functions.
(7) Others
Kyocera Communications Systems Co., Ltd. is conducting the development of technologies related to network
infrastructure creation and of applied systems that are key to next-generation mobile telecommunications and theconvergence of telecommunications and broadcasting from both Information and Communication Technologies(ICT) and engineering.
Kyocera Chemical Corporation is currently strengthening the development of materials for semiconductor andelectronic components. Focused efforts include the development of epoxy molding compounds forsemiconductors and the development of conductive paste for electronic components.
Kyocera is also eagerly working toward the practical application of SOFCs, which are expected to be the nextgeneration distributed power generation system for small-scale power sources.

60

R&D expenses by reporting segment are as follows.
Years ended March 31,
2008
2009
2010
AmountAmountAmount(Yen in millions)

Increase(Decrease)%

Fine Ceramic Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 3,655
Semiconductor Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,498
Applied Ceramic Products Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,146
Electronic Device Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,641¥ 3,346
3,227
4,992
12,690¥ 2,594
3,126
4,947
8,444

(22.5)(3.1)(0.9)(33.5)

Total Components Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Telecommunications Equipment Group . . . . . . . . . . . . . . . . . . . . . . . .
Information Equipment Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23,94012,396
19,587

24,255
15,864
20,127

19,111
8,853
17,400(21.2)(44.2)(13.5)

Total Equipment Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31,983
5,682

35,991
5,686

26,253
4,547(27.1)(20.0)

R&D expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥61,605¥65,932¥49,911(24.3)% to net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.8%

5.8%

4.6%

We have a variety of patents in Japan and other countries, and we hold licenses for the use of patents from others.
Details are set forth in “Patents and Licenses” included in Item 4.B “Business Overview” in this annual report on
Form 20-F.
D. Trend Information
We believe that the high-growth potential markets for information and communications, and environment andenergy are important for us, and we endeavor to expand business in those markets.
In the market for information and communications, trend of the digital consumer equipment market has a great
influence on our earnings. In this market in fiscal 2010, production activities showed signs of recovery, notably
for mobile phone handsets and PCs, due to the end of inventory adjustments.
We expect that demand for the digital consumer equipment will continue to be solid in fiscal 2011 due to greater
advance in the technology of information and communications in developed countries and penetration of mobile
phone handsets in emerging countries. Demand for smart phones, high-end mobile phone handsets and LED
TVs will expand, especially in developed countries. In emerging countries, demand for low-end mobile phonehandsets will increase as well as PCs and digital cameras. Shipment volume of mobile phone handsets, PCs anddigital cameras on a global basis will increase approximately 10% compared with fiscal 2010. We will expand
production capacity of major components for these digital consumer equipment to meet growing demand.
On the other hand, the information equipment market such as printers and multifunction peripherals in fiscal
2010 did not show full-scale recovery due to continuing curtailment of information technology investment bygovernment sector and corporate sector which are our main customers. It is expected that this curtailment willcontinue in fiscal 2011. In the information equipment market, equipment makers are required not only to develop
equipment such as color or high-speed machines but to enhance solution services such as Managed Print Service(MPS) which contribute to reduce printing cost while improving operational efficiency. In addition, we will
strengthen development of software in order to provide better solution services with customers. At the same time,
we will cultivate markets in emerging countries where growing demand is expected.
In the market for environment and energy, solar energy business is currently our main business. Demand forsolar energy market is highly driven by governmental subsidy systems in each country. We expect that our solar
energy business will continue to expand, due to an expansion of governmental subsidy in other European
61

countries and commencement of full-scale subsidy for solar energy in the United States, despite a reduction in
Feed in Tariff and subsidy in Germany and Japan in 2010. We will increase production of solar cells andmodules in line with growing demand on a global basis. However, we expect a decline in selling price, and
we endeavor to reduce production cost, enhance conversion efficiency and improve productivity.
It is also expected that fuel cell systems which contribute to a reduction in greenhouse gas will grow in the
future. We endeavor to develop SOFCs for households in order to commercialize as soon as possible.
E. Off-Balance Sheet Arrangements
Refer to Note 14 in The Consolidated Financial Statements included in this annual report on Form 20-F.
As a part of our ongoing business, we have no unconsolidated special purpose financing or partnership entities
that are likely to create material contingent obligations.
F. Tabular Disclosure of Contractual Obligations
The following table provides information about Kyocera’s contractual obligations and other commercial
commitments that will affect Kyocera’s liquidity for the next several years, as of March 31, 2010. Kyocera
anticipates that the funds required to fulfill these debt obligations and commitments will be cash at hand.
Less than
1 yearContractual obligations

2-3 years¥——
20,243
2,025
42,9345,452

4-5 years Thereafter(Yen in millions)

¥

—
—
7,794
422
51,916
2,148

¥

—
—
1,030
33
157,540
1,387

Total

Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest payments for short-term borrowings* . . . . . . . . . .
Long-term debt (including due within one year) . . . . . . . .
Interest payments for long-term debt* . . . . . . . . . . . . . . . .
Supply agreement material used in operation . . . . . . . . . .
Operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Obligations for the acquisition or construction ofproperty, plant and equipment . . . . . . . . . . . . . . . . . . . .

¥ 4,07361
13,456
1,947
19,046
5,055

¥

4,073
61
42,523
4,427
271,436
14,042

9,652

234

—

—

9,886

Total contractual obligations . . . . . . . . . . . . . . . . . . . . . . .

¥53,290¥70,888¥62,280¥159,990¥346,448* For Kyocera’s variable interest rate of borrowings and debt, Kyocera utilized the rates in effect as ofMarch 31, 2010 when estimating schedule of interest payments.
In addition to contractual obligations shown in the above tables, Kyocera forecasts to contributing ¥10,141
million to its defined benefit pension plans in fiscal 2011, and Kyocera recorded liabilities of ¥8,352 million forgross unrecognized tax benefits in accordance with Financial Accounting Standard Board’s AccountingStandards Codification 740, “Income Taxes” at March 31, 2010, which are not included in the above tablebecause it is unable to make reasonable estimates of the period of settlements. For detailed information, see Note
17 to the Consolidated Financial Statements in this annual report on Form 20-F.
Item 6.

Directors, Senior Management and Employees

A. Directors and Senior Management
Kyocera believes that its current management system enables faster decision-making across the board throughthe use of a top management system comprising the chairman, the president and the vice presidents. With thissetup, the chairman takes on the position as the head of the board of directors, providing guidance to thepresident, while the president has total responsibility for daily business execution. It is also believed that moreaccurate management decisions can be made with this management system, as the chairman, the president andthe vice presidents can provide diverse perspectives on critical issues.
62

The following table shows Kyocera’s Directors and Corporate Auditors as of June 25, 2010.
Name

Date of Birth

Makoto Kawamura . . . . . . . . . .
Tetsuo Kuba . . . . . . . . . . . . . . .
Tatsumi Maeda . . . . . . . . . . . . .
Hisao Hisaki . . . . . . . . . . . . . . .
Yasuyuki Yamamoto . . . . . . . .
Goro Yamaguchi . . . . . . . . . . .
Shoichi Aoki . . . . . . . . . . . . . . .
Katsumi Komaguchi . . . . . . . . .
Yoshihiro Kano . . . . . . . . . . . .
Tsutomu Yamori . . . . . . . . . . . .
Yoshihito Ohta . . . . . . . . . . . . .
Rodney N. Lanthorne . . . . . . . .
John S. Gilbertson . . . . . . . . . .
Yoshihiko Nishikawa . . . . . . . .
Kokichi Ishibitsu . . . . . . . . . . .
Osamu Nishieda . . . . . . . . . . . .
Kazuo Yoshida . . . . . . . . . . . . .
Yoshinari Hara . . . . . . . . . . . . .
*1
*2
*3
*4

Position

August 13, 1949

Representative Director andChairmanFebruary 2, 1954
Representative Director andPresident
January 1, 1953
Representative Director andVice President
July 2, 1946
Representative Director andVice President
April 2, 1951
Director
January 21, 1956
Director
September 19, 1959 Director
March 5, 1951
Director
April 5, 1953
Director
September 25, 1949 Director
June 26, 1954
Director
February 5, 1945
Director
December 4, 1943
Director
September 11, 1945 Full-time Corporate Auditor
December 25, 1943 Full-time Corporate Auditor
January 10, 1943
Corporate Auditor
January 10, 1948
Corporate Auditor
April 3, 1943
Corporate Auditor

Since

Term

2005
(Chairman 2009)
2008(President 2009)
2008

*1
*1

1991

*1

2009
2009
2009
2009
2009
2010
2010
1989
1995
2005
2008
1993
2008
2009

*1
*1
*1
*1
*1
*2
*2
*1
*1
*3
*4
*4
*4
*3

*1

The term of office of a Director is two years after his election at the close of the ordinary general meeting ofshareholders held on June, 25 2009.
The term of office of a Director is one year after his election at the close of the ordinary general meeting ofshareholders held on June 25, 2010.
The term of office of a Corporate Auditor is four years after his election at the close of the ordinary general
meeting of shareholders held on June 25, 2009.
The term of office of a Corporate Auditor is four years after his election at the close of the ordinary general
meeting of shareholders held on June 26, 2008.

Makoto Kawamura has served as a Representative Director and Chairman of Kyocera Corporation since 2009.
He became a Director in 2001 and retired in 2003. He rejoined as a Representative Director and President in2005. He joined Kyocera Corporation in 1973 and has served as Representative Trustee of Japan Photovoltaic
Energy Association, Representative Director and Chairman of Kyocera Mita Corporation, Representative
Director and Chairman of Kyocera SLC Technologies Corporation, Representative Director and Chairman of
Kyocera Realty Development, Representative Director and Chairman of Kyocera Kinseki Corporation and
Representative Director and Chairman of Kyocera Optec Co., Ltd.
Tetsuo Kuba has served as a Representative Director and President of Kyocera Corporation since 2009. He
became an Executive Officer in 2003, a Managing Executive Officer in 2005, a Senior Managing Executive
Officer in 2007 and a Director in 2008. He joined Kyocera Corporation in 1982 and has served as the Chairmanof the Board of Directors of Shanghai Kyocera Electronics Co., Ltd. and Chairman of the Board of Directors of
Dongguan Shilong Kyocera Optics Co., Ltd.
Tatsumi Maeda has served as a Representative Director and Vice President of Kyocera Corporation since 2009.
He became a Director in 2001 and retired in 2003. He became a Managing Executive officer in 2003, a Senior
Managing Executive Officer in 2007 and rejoined as a Director in 2008. He joined Kyocera Corporation in 1975
63

and has served as the Chairman of the Board of Kyocera (Tianjin) Solar Energy Co., Ltd., Representative
Director and Chairman of Kyocera Solar Corporation, Representative Director and Chairman and President inKyocera Korea Co., Ltd., and the General Manager of Solar Energy Group and Corporate Electronic Components
Group.
Hisao Hisaki has served as a Representative Director and Vice President of Kyocera Corporation since 2010. He
became a Director in 1991. He became a Managing Executive Officer in 2003, retired in 2005, and rejoined as a
Senior Managing Executive Officer in 2009. He joined Kyocera Corporation in 1969 and has served as Chairmanof the Board of Directors of Kyocera Tianjin Sales and Trading Corporation, Chairman of the Board of Directorsof Kyocera Management Consulting Service (Shanghai) Co., Ltd. and the General Manager of Corporate
Development Group.
Yasuyuki Yamamoto has served as a Director of Kyocera Corporation since 2009. He became an Executive
Officer in 2003 and a Senior Executive Officer in 2008. He joined Kyocera Corporation in 1976 and has served
as a Managing Executive Officer and the General Manager of Corporate Communication Equipment Group.
Goro Yamaguchi has served as a Director of Kyocera Corporation since 2009. He became an Executive Officer
in 2003 and a Senior Executive Officer in 2005. He joined Kyocera Corporation in 1978 and has served as aManaging Executive Officer and the General Manager of Corporate Semiconductor Components Group.
Shoichi Aoki has served as a Director of Kyocera Corporation since 2009. He became an Executive Officer in2005. He joined Kyocera Corporation in 1983 and has served as a Managing Executive Officer and the General
Manager of Corporate Financial and Accounting Group.
Katsumi Komaguchi has served as a Director of Kyocera Corporation since 2009. He became an Executive
Officer in 2008. He joined Kyocera Corporation in 1986 and has served as a Managing Executive Officer and theRepresentative Director and President of Kyocera Mita Corporation.
Yoshihiro Kano has served as a Director of Kyocera Corporation since 2009. He became an Executive Officer in2005. He joined Kyocera International, Inc. in 1980, transferred to Kyocera Corporation in 1991 and has served
as a Managing Executive Officer and the Deputy General Manager of Corporate Development Group.
Tsutomu Yamori has served as a Director of Kyocera Corporation since 2010. He became a Director in 1997 andretired in 2003. He joined Kyocera Corporation in 1972 and has served as a Managing Executive Officer and theGeneral Manager of Corporate General Affairs Human Resources Group.
Yoshihito Ohta has served as a Director of Kyocera Corporation since 2010. He became an Executive Officer in2003 and a Senior Executive Officer in 2007. He joined Kyocera Corporation in 1978 and has served as aManaging Executive Officer, the General Manager of Corporate Office of the Chief Executives and the Deputy
Trustee of Japan Airlines Corporation.
Rodney N. Lanthorne has served as a Director of Kyocera Corporation since 1989. He became a Director in 1989,
a Managing Director in 1990 and a Senior Managing and Representative Director in 1999. He joined Kyocera
International, Inc. in 1979 and has served as Director and Vice Chairman of Kyocera International, Inc.
John S. Gilbertson has served as a Director of Kyocera Corporation since 1995. He became a Director in 1995
and a Managing Director in 1999. He joined AVX Corporation in 1981 and has served as Director, President andChief Executive Officer of AVX Corporation.
Yoshihiko Nishikawa has served as a Full-time Corporate Auditor of Kyocera Corporation since 2005. He
became a Director in 1995 and retired in 2003. He joined Kyocera Corporation in 1970.

64

Kokichi Ishibitsu has served as a Full-time Corporate Auditor of Kyocera Corporation since 2008. He became a
Director in 1991 and retired in 2000. He joined Kyocera Corporation in 1975.
Osamu Nishieda has served as a Corporate Auditor of Kyocera Corporation since 1993. He has served as an
In-House Council of Kyocera Corporation.
Kazuo Yoshida has served as a Corporate Auditor of Kyocera Corporation since 2008. He has served as Professor
at Kyoto University.
Yoshinari Hara has served as a Corporate Auditor of Kyocera Corporation since 2009. He has served as Chief
Corporate Adviser of Daiwa Securities Group Inc.
Kyocera adopts an “executive officer system,” which aims to establish corporate governance appropriate for a
global corporation together with a decision making system responsive to the business environment and to train
the next generation of senior executives.
The following table shows Kyocera’s Executive Officers as of June 25, 2010.
Name

Position

Tetsuo Kuba . . . . . . . . .
Tatsumi Maeda . . . . . . .

Executive Officer and President
Executive Officer and Vice President(General Manager of Corporate Solar Energy Group and Corporate Electronic
Components Group)Hisao Hisaki . . . . . . . . . Executive Officer and Vice President(General Manager of Corporate Development Group)
Yasuyuki Yamamoto . . Managing Executive Officer(General Manager of Corporate Communication Equipment Group)
Goro Yamaguchi . . . . . . Managing Executive Officer(General Manager of Corporate Semiconductor Components Group)
Shoichi Aoki . . . . . . . . . Managing Executive Officer(General Manager of Corporate Financial & Accounting Group)
Katsumi Komaguchi . . . Managing Executive Officer(Representative Director and President of Kyocera Mita Corporation)
Yoshihiro Kano . . . . . . . Managing Executive Officer(Deputy General Manager of Corporate Development Group)
Tsutomu Yamori . . . . . . Managing Executive Officer(General Manager of Corporate General Affairs Human Resources Group)
Yoshihito Ohta . . . . . . . Managing Executive Officer(General Manager of Corporate Office of the Chief Executives)
Akiyoshi Okamoto . . . . Managing Executive Officer(General Manager of Shanghai Kyocera Electronics Co., Ltd.)
Eiichi Toriyama . . . . . . Managing Executive Officer(Director and President of Kyocera Communications, Inc.)
Osamu Nomoto . . . . . . . Senior Executive Officer(General Manager of Corporate Legal and Intellectual Property Group)
Keijiro Minami . . . . . . . Senior Executive Officer(General Manager of Corporate R&D Group for Components and Devices)
Takenori Ugari . . . . . . . Senior Executive Officer(Deputy General Manager of Corporate Communication Equipment Group)
65

Name

Position

Gen Takayasu . . . . . . . .

Senior Executive Officer(Deputy General Manager of Corporate Electronic Components Group)
Junzo Katsuki . . . . . . . . Senior Executive Officer(Deputy General Manager of Corporate Communication Equipment Group)
Junichi Jinno . . . . . . . . . Executive Officer(General Manager of Corporate R&D Group for Equipment and Systems)
Masakazu Mitsuda . . . . Executive Officer(General Manager of Corporate Business Systems Administration Group)
Toshimi Gejima . . . . . . Executive Officer(General Manager of R&D Center Kagoshima, Corporate R&D Group for
Components and Devices)
Michiaki Furuhashi . . . . Executive Officer(Deputy General Manager of Corporate Office of the Chief Executives)
Mitsuru Imanaka . . . . . . Executive Officer(Representative Director and President of Kyocera Fineceramics GmbH)
Yoichi Yamashita . . . . . Executive Officer(General Manager of Corporate Production Technology & Development Group)
John S. Rigby . . . . . . . . Executive Officer(Director and President of Kyocera International, Inc.)
Robert E. Whisler . . . . . Executive Officer(Director and President of Kyocera America Inc.)
Masaki Kozu . . . . . . . . . Executive Officer(General Manager of Corporate Education Group)
Hitoshi Takao . . . . . . . . Executive Officer(General Manager of Corporate Thin Film Components Group)
Yoshiharu Nakamura . . Executive Officer(General Manager of Dongguan Shilong Kyocera Optec Co., Ltd.)
Kazumasa Umemura . . . Executive Officer(General Manager of International Division, Corporate Office of the Chief
Executives)
Takafumi Matsuda . . . . Executive Officer(General Manager of Jewelry & Application Products Division)
Masaaki Itoh . . . . . . . . . Executive Officer(Deputy General Manager of Corporate General Affairs Human Resources Group)
Tsuyoshi Egami . . . . . . Executive Officer(Deputy General Manager of Corporate Mobile Communication Equipment Technical
Division, Corporate Communication Equipment Group)
Kouji Mae . . . . . . . . . . . Executive Officer(Representative Director and President of Kyocera SLC Technologies Corporation)
Motoo Kobayashi . . . . .

Nobuo Kitamura . . . . . .
Ken Ishii . . . . . . . . . . . .

Executive Officer(Representative Director and President of Kyocera Communication Systems Co.,
Ltd.)
Executive Officer(Deputy General Manager of Corporate Solar Energy Group)
Executive Officer(General Manager of Corporate Cutting Tool Group)
66

Name

PositionTakeshi Oda . . . . . . . . .

Executive Officer(General Manager of Corporate Mobile Communication Equipment Technical
Division, Corporate Communication Equipment Group)
Executive Officer(Deputy General Manager of Corporate Semiconductor Components Group)
Executive Officer(General Manager of Kyocera (Tianjin) Sales & Trading Corporation)
Executive Officer(General Manager of Corporate Fine Ceramics Group)
Executive Officer(General Manager of Corporate Purchasing Group)

Kazuyuki Nada . . . . . . .
Yuji Goto . . . . . . . . . . .
Shigeaki Kinori . . . . . . .
Masaki Iida . . . . . . . . . .

B. Compensation
The aggregate amount of compensation, including bonuses, provided by Kyocera Corporation and its certain
subsidiaries in fiscal 2010 to all Directors, Corporate Auditors and Executive Officers of Kyocera Corporation
was ¥1,532 million.
Under our prior remuneration system for Directors and Corporate Auditors, which was revised as explained
below, when a Director or Corporate Auditor retired, a proposal to pay a lump sum retirement allowance wassubmitted to the ordinary general meeting of shareholders for approval. After such approval, the amount to be
paid to each Director was considered and determined by the Board of Directors, and the amount to be paid toeach Corporate Auditor was also consulted with and determined by the Board of Corporate Auditors. When an
Executive Officer retired, a lump sum payment of retirement allowance and the amount to be paid to each
Executive Officer were considered and determined by the Board of Directors.
Annual provisions were made in the accounts of Kyocera Corporation for the cost of the retirement allowance for
Directors, Corporate Auditors and Executive Officers in accordance with our internal provision. Our
remuneration system for Directors and Corporate Auditors was revised following the approval of such revisionby our shareholders at the general meeting of shareholders held on June 25, 2009. As revised, the abovementioned retirement allowances were abolished.
The annual provisions and costs charged to income for such retirement allowance during April 1, 2009 toJune 25, 2009 was ¥64 million.
Certain subsidiaries maintain retirement benefit plans for their executives who serve as Directors and Executive
Officers of Kyocera Corporation and annual provisions and costs charged to income for such retirement
allowance during fiscal 2010 was ¥28 million.
In Japan, the regulation regarding disclosure of compensation has been revised, and from fiscal 2010, disclosureof compensation is required on an individual basis if the compensation paid to each Director or Corporate
Auditor by the company and its subsidiaries exceeds ¥100 million. In accordance to this, the person whose
compensation is required to be disclosed individually at Kyocera and the detail of the compensation are as
follows.
Name : John S. Gilbertson
Position : Director of Kyocera Corporation
Director, President and Chief Executive Officer of AVX Corporation

67Compensation provided at

Amounts of compensation by types
Basic
Stock
remuneration Bonus option Others(Yen in millions)

Kyocera Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥10

¥2

—

—

AVX Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥66

¥5

¥ 20

¥ 11

Total

¥114

Notes:
1. AVX Corporation is Kyocera’s consolidated subsidiary in the U.S. and the determination of compensation ismade by AVX’s Compensation Committee pursuant to the U.S. regulations and based on its consideration forgeneral level and customary of compensation in the U.S.
2. The compensation provided originally in the U.S. dollar at AVX Corporation was translated into the yen by¥93 per $1.00 which was the average rate during fiscal 2010.
In addition to the above, the revision of the new regulation requires public companies to disclose details ofcompensation paid to Directors and Corporate Auditors by the parent company and the policy to determine suchamount of compensation. With respect to these revised regulations which are effective from fiscal 2010 annual
reports, Kyocera’s disclosure on compensation for Directors and Corporate Auditors is as follows.
The total amount of compensation paid to Director and Corporate Auditor, the amounts of compensation bytypes, and the number of Directors and Corporate Auditors

Total
amount ofcompensation

Amounts of compensation by types
Basic
Retirement
remuneration Bonus
allowance(Yen in millions)

Number of
Directors andCorporate
Auditors

Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥286

¥207

¥ 41

¥ 38

17

Full-time Corporate Auditor . . . . . . . . . . . . . . . . . .

42

41

—

1

2

Outside Corporate Auditor . . . . . . . . . . . . . . . . . . .

18

18

—

—

4

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥346

¥266

¥ 41

¥ 39

23

Notes:
1. Amount of remuneration to Directors does not include salaries for services as employees or Executive Officers
for Directors who serve as such.
2. The numbers set forth in “Number of Directors and Corporate Auditors” in the table above include six
Directors and one Outside Corporate Auditor, who retired in fiscal 2010.
Policy to determine the amount of compensation
Kyocera Corporation’s compensation paid to Directors consists of “Basic remuneration” and “Bonuses to
Directors.”

681) Basic remuneration
Basic remuneration constitutes of remuneration to be paid in compensation for the exercise of responsibility byeach Director, and the amount of basic remuneration is determined in accordance with each Director’s materialityof their role.
The individual amount paid to each Director is determined taking into consideration the level of payment atsimilar public manufacturing companies and the aggregate amount to be paid to all Directors shall be no morethan ¥400 million annually.
2) Bonuses to Directors
The aggregate amount payable to all Directors shall not exceed 0.2% of net income attributable to shareholders ofKyocera Corporation for the relevant fiscal year, provided that such amount shall in no case exceed ¥300 million
annually, and such aggregate amount shall be distributed among the Directors in accordance with their respective
levels of contribution to the performance of the Company.
Kyocera Corporation’s compensation paid to Corporate Auditors consists of “Basic remuneration” only, which is
not linked to the performance of Kyocera, in order to maintain the impartiality of audit. The aggregate amountpayable to all Corporate Auditors shall be no more than ¥100 million annually.
C. Board Practices
For information regarding the terms of office of Directors and Corporate Auditors, see Item 6.A. “Directors andSenior Management” of this annual report on Form 20-F.
In accordance with the requirements of the Corporation Act of Japan (the Corporation Act), our Articles ofIncorporation provide for not more than five Corporate Auditors. Corporate Auditors are elected at a general
meeting of shareholders, and their normal term of office is four years. However, Corporate Auditors may serve
any number of consecutive terms. At least half of the Corporate Auditors must be persons who have not been
Directors or employees of Kyocera Corporation or its subsidiaries (Outside Corporate Auditors). Corporate
Auditors form the Board of Corporate Auditors. Corporate Auditors are under a statutory duty to oversee theadministration of our affairs by the Directors, to examine our financial statements and business reports to besubmitted by the Board of Directors to the general meetings of shareholders and to report their opinions thereon
to the shareholders. They are obliged to attend meetings of the Board of Directors and to express their opinions,but they are not entitled to vote. Corporate Auditors also have a statutory duty to provide their report on the audit
report prepared by our independent certified public accountants to the Board of Corporate Auditors, which must
submit its audit report to the Board of Directors. The Board of Corporate Auditors will also determine mattersrelating to the duties of the Corporate Auditors, such as audit policy and methods of investigation of our affairs.
Under the Corporation Act, the Directors and Corporate Auditors are liable for any damages suffered by us as aresult of their violation of laws or regulations or any failure to perform their duties. Under our Articles ofIncorporation, any such liabilities incurred by the Outside Corporate Auditors may, except in the case of willful
misconduct or gross negligence or in certain other cases, be limited by a liability limitation agreement enteredinto between the Outside Corporate Auditors and us, up to an amount to be calculated in accordance with therelevant provisions of the Corporation Act with reference to annual remuneration, retirement allowance andprofits received upon exercise or transfer of stock options, if any.
Kyocera Corporation has no remuneration committee. Matters of remuneration are decided by top management
as a group. None of our Directors have contracts with us providing for benefits upon termination.

69

For information regarding the lump sum retirement allowance for Directors and Corporate Auditors, see
Item 6.B. “Compensation” of this annual report on Form 20-F.
There is no arrangement or understanding between any Director or Corporate Auditor and any other person
pursuant to which he was elected as a Director or a Corporate Auditor.
There is no family relationship between any Director or Corporate Auditor and any other Director or Corporate
Auditor.
D. Employees
At March 31, 2010, Kyocera had 63,876 employees, of whom 2,821 worked in the Fine Ceramic Parts Group,
9,818 worked in the Semiconductor Parts Group, 6,783 worked in the Applied Ceramic Products Group, 19,381
worked in the Electronic Device Group, 5,058 worked in the Telecommunications Equipment Group, 13,166
worked in the Information Equipment Group, 5,220 worked for Others and 1,629 worked in Corporate.
Kyocera Corporation had 14,179 employees, and their average age and average service years were 39.2 and 15.4
respectively.
Most regular employees of Kyocera Corporation, other than management, are members of the Kyocera Union.
Over 90% of Kyocera Corporation’s regular employees are members of this union. The Kyocera Union is only
open to Kyocera Corporation employees, not to our Japanese or overseas subsidiaries. The employees at three ofour subsidiaries in Japan are unionized. Employees at our Japanese subsidiaries are not otherwise unionized. Our
employees in the United States are generally unionized, and employees at some of our subsidiaries in othercountries are unionized as well. Employees of our overseas subsidiaries belong to industry-wide labor unions, as
opposed to a company-specific union like the Kyocera Union. Our relationship with our employee union groups
is generally good. However, no assurance can be given that, in response to changing economic conditions
and our actions, labor unrest or strikes will not occur.
E. Share Ownership
Kyocera’s Directors, Corporate Auditors and Executive Officers as of June 25, 2010 owned 513,668 shares ofKyocera Corporation in total (492,044 shares of common stock of Kyocera Corporation and 21,624 ADRs of
Kyocera Corporation), or 0.3% of the outstanding shares of Kyocera Corporation at March 31, 2010. The
numbers of shares owned by each Directors, Corporate Auditors and Executive Officers are shown in thefollowing table.
Name

Makoto Kawamura . . . . . . . . . . . . . . . . . . . . . .
Tetsuo Kuba . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tatsumi Maeda . . . . . . . . . . . . . . . . . . . . . . . . .
Hisao Hisaki . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yasuyuki Yamamoto . . . . . . . . . . . . . . . . . . . . .
Goro Yamaguchi . . . . . . . . . . . . . . . . . . . . . . . .
Shoichi Aoki . . . . . . . . . . . . . . . . . . . . . . . . . . .
Katsumi Komaguchi . . . . . . . . . . . . . . . . . . . . .
Yoshihiro Kano . . . . . . . . . . . . . . . . . . . . . . . . .
Tsutomu Yamori . . . . . . . . . . . . . . . . . . . . . . . .
Yoshihito Ohta . . . . . . . . . . . . . . . . . . . . . . . . . .
Rodney N. Lanthorne . . . . . . . . . . . . . . . . . . . .
John S. Gilbertson . . . . . . . . . . . . . . . . . . . . . . .
Yoshihiko Nishikawa . . . . . . . . . . . . . . . . . . . .

Title

Number of Shares

Representative Director and Chairman
Representative Director and President
Representative Director and Vice President
Representative Director and Vice President
Director
Director
Director
Director
Director
Director
Director
Director
Director
Full-time Corporate Auditor

3,261
2,861
1,756
5,171
1,019
7,368
1,296
2,080
757
3,230
3,678
3,668 (ADR)
12,699 (ADR)
2,270

70

Name

Title

Kokichi Ishibitsu . . . . . . . . . . . . . . . . . . . . . . . .
Osamu Nishieda . . . . . . . . . . . . . . . . . . . . . . . . .
Kazuo Yoshida . . . . . . . . . . . . . . . . . . . . . . . . .
Yoshinari Hara . . . . . . . . . . . . . . . . . . . . . . . . . .
Akiyoshi Okamoto . . . . . . . . . . . . . . . . . . . . . . .
Eiichi Toriyama . . . . . . . . . . . . . . . . . . . . . . . . .
Osamu Nomoto . . . . . . . . . . . . . . . . . . . . . . . . .
Keijiro Minami . . . . . . . . . . . . . . . . . . . . . . . . .
Takenori Ugari . . . . . . . . . . . . . . . . . . . . . . . . . .
Gen Takayasu . . . . . . . . . . . . . . . . . . . . . . . . . .
Junzo Katsuki . . . . . . . . . . . . . . . . . . . . . . . . . .
Junichi Jinno . . . . . . . . . . . . . . . . . . . . . . . . . . .
Masakazu Mitsuda . . . . . . . . . . . . . . . . . . . . . . .
Toshimi Gejima . . . . . . . . . . . . . . . . . . . . . . . . .
Michiaki Furuhashi . . . . . . . . . . . . . . . . . . . . . .
Mitsuru Imanaka . . . . . . . . . . . . . . . . . . . . . . . .
Yoichi Yamashita . . . . . . . . . . . . . . . . . . . . . . .
John S. Rigby . . . . . . . . . . . . . . . . . . . . . . . . . . .
Robert E. Whisler . . . . . . . . . . . . . . . . . . . . . . .
Masaki Kozu . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hitoshi Takao . . . . . . . . . . . . . . . . . . . . . . . . . .
Yoshiharu Nakamura . . . . . . . . . . . . . . . . . . . . .
Kazumasa Umemura . . . . . . . . . . . . . . . . . . . . .
Takafumi Matsuda . . . . . . . . . . . . . . . . . . . . . . .
Masaaki Itoh . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tsuyoshi Egami . . . . . . . . . . . . . . . . . . . . . . . . .
Kouji Mae . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Motoo Kobayashi . . . . . . . . . . . . . . . . . . . . . . .
Nobuo Kitamura . . . . . . . . . . . . . . . . . . . . . . . .
Ken Ishii . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Takeshi Oda . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kazuyuki Nada . . . . . . . . . . . . . . . . . . . . . . . . .
Yuji Goto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shigeaki Kinori . . . . . . . . . . . . . . . . . . . . . . . . .
Masaki Iida . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 7.

Full-time Corporate Auditor
Corporate Auditor
Corporate Auditor
Corporate Auditor
Managing Executive Officer
Managing Executive Officer
Senior Executive Officer
Senior Executive Officer
Senior Executive Officer
Senior Executive Officer
Senior Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

Number of Shares

2,254
406,081
84
99
5,420
3,429
2,637
1,178
336
1,286
1,356
—
1,822
1,538
9,502
1,100
278
692 (ADR)
4,565 (ADR)
2,029
483
1,376
190
1,097
397
50
5,200
1,996
227
1,957
437
570
1,960
715
213

Major Shareholders and Related Party Transactions

A. Major Shareholders
As far as is known to us, Kyocera is not, directly or indirectly, owned or controlled by any other corporation orby the Japanese or any foreign government, and there is no arrangement which may at a subsequent date result ina change in control of Kyocera.

71

The following table shows the ten largest shareholders of record of Kyocera Corporation at March 31, 2010.
Name

Japan Trustee Services Bank, Ltd.
(Trust Account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Master Trust Bank of Japan, Ltd.
(Trust Account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kyocera Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Bank of Kyoto, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kazuo Inamori . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State Street Bank and Trust Company(Standing proxy: The Hong Kong and Shanghai Banking Corporation Limited) . . . .
The Bank of Tokyo-Mitsubishi UFJ, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Inamori Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
KI Enterprise Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JPMorgan Securities Japan Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares owned(in thousands)

Ownership(%)

13,563

7.09

11,633
7,788
7,218
6,806

6.08
4.07
3.77
3.56

6,783
5,076
4,680
3,550
3,310

3.55
2.65
2.45
1.86
1.73

70,40836.80

None of the above shareholders has voting rights that are different from those of other shareholders.
Under the Financial Instruments and Exchange Law of Japan, any person that becomes a holder (together with its
related persons) of 5% of the total issued voting shares of a company listed on any Japanese stock exchange(including ADSs representing such shares) must file a report with the Director of the relevant Local Finance
Bureau and send a copy of such report to the company. A similar report must also be filed if the percentage
holding of a holder of more than 5% of the total issued voting shares of a company increases or decreases by 1%
or more.
In accordance with the Financial Instruments and Exchange Law of Japan mentioned above, on August 6, 2009,
Dodge & Cox and its related partners sent a copy of such report to us, and informed us of the number of shares
owned and the percentage of ownership as of July 31, 2009 as shown in the following table. However, they are
not included in the above major shareholders because we do not identify them as a single holder on ourshareholders record as of March 31, 2010. None of them have voting rights that are different from those of othershareholders.
Name

Dodge & Cox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares owned(in thousands)

Ownership
(%)

7,271

3.80

On June 21, 2010, Mitsubishi UFJ Financial Group, Inc. and its related partners sent a copy of such report to us,
and informed us of the number of shares owned and the percentage of ownership as of June 14, 2010 as shown in
the following table. However, they are not included in the above major shareholders because we do not
identify them as a single holder on our shareholders record as of March 31, 2010. None of them have voting
rights that are different from those of other shareholders.
Name

Shares owner(in thousands)

Ownership(%)

The Bank of Tokyo-Mitsubishi UFJ, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mitsubishi UFJ Trust and Banking Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mitsubishi UFJ Asset Management Co., Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,076
3,604
1,624
2,281

2.65
1.88
0.85
1.19

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12,585

6.58

72

According to Citibank N.A., depositary for Kyocera’s ADSs, as of March 31, 2010, 2,897,071 shares ofKyocera’s common stock were held in the form of ADSs and there were 757 ADS holders of record in the UnitedStates. According to Kyocera’s register of shareholders, as of March 31, 2010, there were 63,791 holders ofKyocera’s common stock of record worldwide. As of March 31, 2010, there were 156 record holders ofKyocera’s common stock with addresses in the United States, holding 25,198,406 shares of the outstanding
common stock on that date. Because some of these shares were held by brokers or other nominees, the number ofrecord holders with addresses in the United States might not fully show the number of beneficial owners in the
United States.
B. Related Party Transactions
Significant Customer
In fiscal 2010, Kyocera’s sales to KDDI Corporation amounted to ¥115,538 million, or 10.8% of consolidated
net sales.
KDDI Corporation provides telecommunication services, and Kyocera sells mainly telecommunicationequipment to KDDI Corporation. Kyocera Corporation made an equity investment in KDDI Corporation when it
was founded, and currently a director of Kyocera Corporation is a director of KDDI Corporation. At March 31,
2010, Kyocera Corporation’s equity interest in KDDI Corporation was 12.76%. Kyocera serves KDDI
Corporation as an independent vendor in terms of price determination, remittance condition and productdistribution. All of the agreements and ongoing contractual commitments between Kyocera and KDDI
Corporation have been made on an arm’s-length basis. Kyocera expects that KDDI Corporation will remain asignificant customer in the future.
Related Party Transaction
For information regarding related party transactions with WILLCOM, Inc., see note 7 to the Consolidated
financial Statements in this annual report on Form 20-F.
C. Interests of Experts and Counsel
Not Applicable.
Item 8.

Financial Information

A. Consolidated Statements and Other Financial Information
Financial Statements
The information required by this item is set forth beginning on page F-3 of this annual report on Form 20-F.
Dividend Policy
Kyocera believes that the best way to increase corporate value and meet shareholders’ expectations is to improve
future consolidated performance on an ongoing basis. Kyocera therefore has adopted a principal guideline that
dividend amounts within a range based on net income attributable to shareholders of Kyocera Corporation on aconsolidated basis, and has set its consolidated dividend policy to maintain a consolidated dividend ratio at alevel of approximately 20% to 25% of consolidated net income. In addition, Kyocera determines dividend
amounts based on an overall assessment, taking into account various factors including the amount of capital
expenditures necessary for medium to long-term corporate growth.

73

Kyocera normally pays cash dividends twice per year as an interim and a year-end dividend. Year-end dividends
must be approved by shareholders at the ordinary general shareholders’ meeting. In addition to year-end
dividend, Kyocera may pay an interim dividend by resolution of its board of directors and without shareholder
approval.
Kyocera also has adopted policies to ensure a sound financial basis, and, for such purpose, it sets aside othergeneral reserves in preparation for the creation of new businesses, cultivation of new markets, development of
new technologies and acquisition of outside management resources necessary to achieve sustainable corporate
growth.
Based on performance during fiscal 2010 and pursuant to the aforementioned policies, Kyocera distributed a
year-end dividend in the amount of 60 yen per share for the year ended March 31, 2010. When aggregated with
the interim dividend in the amount of 60 yen per share, the total annual dividend was 120 yen per share, the sameamount as fiscal 2009.
We held a board of directors meeting for the interim dividend on October 30, 2009.
B. Significant Changes
Except as disclosed in this annual report on Form 20-F, there have been no significant changes since March 31,
2010.
Item 9.

The Offer and Listing

A. Offer and Listing Details
Price Range of Shares
The principal non-United States market on which the shares of Common Stock of Kyocera Corporation are
traded is the Tokyo Stock Exchange, the largest stock exchange in Japan. The American Depositary Shares ofKyocera Corporation, each representing one share of Common Stock of Kyocera Corporation, are traded on the
New York Stock Exchange. Citibank, N.A. acts as the Depositary in respect of the American Depositary Shares.
Common Stock of Kyocera Corporation is also listed on the Osaka Securities Exchange in Japan.

Years ended March 31,

Tokyo Stock Exchange
Price per Share ofCommon Stock
High
Low

New York Stock Exchange
Price per American
Depositary Share*
High
Low

2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥10,830
11,59013,39010,9409,210¥7,090
8,180
7,760
4,330
6,320

$ 91.5998.01
110.01100.7899.99$62.58
71.73
73.09
45.41
64.91

High

Low

High

Low

¥ 8,350
8,610
8,350
9,210
9,740
9,200

¥6,700
7,810
7,790
7,860
9,130
7,650

$ 90.65
93.83
93.18
99.99
105.85100.98$80.18
86.91
85.94
88.31
97.01
85.00

Most Recent 6 months

December 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
January 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
February 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

* The prices of American Depositary Shares are based upon reports by the New York Stock Exchange, with all
fractional figures rounded up to the nearest two decimal points.
74

The following table shows the information about high and low sales prices for each quarterly period in fiscal
2009 and 2010 in respect of the shares of Common Stock of Kyocera Corporation on the Tokyo Stock Exchange,
and the American Depositary Shares on the New York Stock Exchange.
For Voting Securities by Fiscal Quarter
2009
1st

2nd

3rd

4th

Common Stock:Market price per share (A) . . . . . . . . . . . . . . . . . . . . . . . . . —High—Low
Cash dividends paid per share . . . . . . . . . . . . . . . . . . . . . . .

¥10,940 ¥10,080 ¥8,090 ¥7,360
8,180
7,650
4,330
5,310
60
—
60
—

American Depositary Share:
Market price per share (B) . . . . . . . . . . . . . . . . . . . . . . . . . —High—Low
Cash dividends paid per share (C) . . . . . . . . . . . . . . . . . . . .

$100.78 $ 94.09 $76.16 $76.61
82.23
72.86
45.41
52.98
0.56
—
0.64
—
2010
1st

Common Stock:Market price per share (A) . . . . . . . . . . . . . . . . . . . . . . . . . —High—Low
Cash dividends paid per share . . . . . . . . . . . . . . . . . . . . . . .
American Depositary Share:
Market price per share (B) . . . . . . . . . . . . . . . . . . . . . . . . . —High—Low
Cash dividends paid per share (C) . . . . . . . . . . . . . . . . . . . .

2nd

3rd

4th

¥ 8,170 ¥ 8,500 ¥8,350 ¥9,210
6,320
6,560
6,700
7,790
60
—
60
—
$ 82.03 $ 93.20 $91.08 $99.99
64.91
71.39
77.70
85.94
0.62
—
0.66
—

(A) Price on the Tokyo Stock Exchange(B) Price on the New York Stock Exchange(C) Translated into the U.S. dollars based on the exchange rates at each payment date
B. Plan of Distribution
Not Applicable.
C. Markets
See Item 9.A. of this annual report on Form 20-F for information on the markets on which our common stock islisted or quoted.
D. Selling Shareholders
Not Applicable.
E. Dilution
Not Applicable.
F. Expenses of the Issue
Not Applicable.
75

Item 10.

Additional Information

A. Share Capital
Not Applicable.
B. Memorandum and Articles of Association
GeneralSet out below is certain information regarding the organization and shares of Kyocera Corporation, including
brief summaries of certain provisions of the Articles of Incorporation, the Share Handling Regulations and theRegulations of the Board of Directors of Kyocera Corporation and of the Corporation Act relating to joint stock
corporations (kabushiki kaisha) and certain related legislation, all as currently in effect.
Organization
Kyocera Corporation is a joint stock corporation (kabushiki kaisha) incorporated in Japan under the Corporation
Act. It is registered in the Commercial Register maintained by the Kyoto Local Registry Office of the Ministry ofJustice.
Objects and Purposes
The objects of Kyocera Corporation are set forth in Article 2 of its Articles of Incorporation, as follows:(1) Manufacture and sale of and research on fine ceramics and various kinds of products utilizing fine ceramics;(2) Manufacture and sale of and research on single crystal materials and various kinds of products utilizing
single crystal materials;(3) Manufacture and sale of and research on composite materials;(4) Manufacture and sale of and research on specialty plastics;(5) Manufacture and sale of and research on measurement instruments for electronics;(6) Manufacture and sale of and research on electronic and electric instruments and parts thereof;(7) Manufacture and sale of and research on component parts of automobiles;(8) Manufacture and sale of and research on precious metals, precious stones and semiprecious stones andvarious kinds of products utilizing precious metals, precious stones and semiprecious stones;(9) Manufacture and sale of and research on accessories and interior and exterior decorations and ornaments;(10) Wholesales and retail sale of health foods;(11) Manufacture and sale of and research on material and equipment for medical use;(12) Manufacture and sale of and research on equipment utilizing solar energy;(13) Manufacture and sale of and research on optical machinery and instruments and precision machinery andinstruments and parts hereof;(14) Manufacture and sale of and research on machinery and equipment for business use and machinery andequipment for industrial use and parts thereof;(15) Manufacture and sale of and research on photosensitive materials for photographic use;(16) Design, control and contract of construction relating to public works, building, electric equipment andpiping construction;(17) Sale, purchase, lease, maintenance and brokerage of real estate;76

(18) Lease, maintenance and management of facilities relating to sports, recreation, medical care, hotels andrestaurants, and the travel agency business;(19) Road freight handling and warehousing;(20) Business relating to non-life insurance agency and life insurance canvassing, and general leasing, factoring
and finance business;(21) Sale and purchase of various kinds of plants and technology related thereto;(22) Design and sale of software relating to computers;(23) Disposition through sale and the like and acquisition through purchase and the like of patents and otherindustrial property rights and know-how appertaining to the preceding items and acting as intermediary insuch transactions;(24) Businesses relating to import and export of any of the foregoing items; and(25) All commercial activities relating or incidental to any of the foregoing.
Directors
Under the Corporation Act, the Board of Directors has the ultimate responsibility for the management of Kyocera
Corporation and each Representative Director, who is elected from among the members of the Board of
Directors, has the statutory authority to represent Kyocera Corporation in all respects. Under both the
Corporation Act and the Regulations of the Board of Directors of Kyocera Corporation, the Directors mustrefrain from engaging in any business competing with Kyocera Corporation unless approved by the Board of
Directors and any Director who has a material interest in the subject matter of a resolution to be taken by the
Board of Directors cannot vote in such resolution. The Corporation Act and the Articles of Incorporation of
Kyocera Corporation provide that remuneration of Directors and Corporate Auditors shall be determined at a
general meeting of shareholders.
Except as stated below, neither the Corporation Act nor Kyocera Corporation’s Articles of Incorporation makeany special provision as to a Director’s or Corporate Auditor’s power to vote in connection with theircompensation; or the borrowing powers exercisable by a Representative Director (or a Director who is given
power by a Representative Director to exercise such powers), their retirement age or requirement to hold any
shares of capital stock of Kyocera Corporation.
The Corporation Act specifically requires a resolution of the Board of Directors for a joint stock corporation,
among other things, to acquire or dispose of material assets; to borrow substantial amounts of money; to employ
or discharge from employment important employees, such as executive officers; to establish, change or abolish amaterial corporate organization such as a branch office; or to issue bonds. A resolution of the Board of Directors is
also specifically required for the establishment of a control system to ensure adequacy of Kyocera Corporation’s
affairs, such as a control system to ensure the exercise of Directors’ duty to comply with laws and regulations andthe Articles of Incorporation of Kyocera Corporation. The Regulations of the Board of Directors of Kyocera
Corporation require a resolution of the Board of Directors for Kyocera Corporation, among other things, to issue
bonds or bonds with stock acquisition rights; to borrow, lend or contribute a significant amount of money; to givea guarantee of a significant amount of debt; or to waive the right to receive a significant amount of money. The
Regulations of the Board of Directors of Kyocera Corporation defines a “significant amount” as five billion yen or
more with respect to borrowing and one hundred million yen or more with respect to other matters. The
Regulations of the Board of Directors of Kyocera Corporation also require a resolution of the Board of Directors
to approve any transaction between a Director and Kyocera Corporation; allocate remuneration and bonuses of
Directors as previously determined or approved by the general meeting of shareholders; or determine the amountand manner of payment of retirement allowances or condolence money payable to Directors, determination ofwhich has been previously entrusted to the Board of Directors by the general meeting of shareholders.
77Capital Stock
GeneralOn January 5, 2009, a new central clearing system for shares of Japanese listed companies was establishedpursuant to the Law Concerning Book-Entry Transfer of Corporate Bonds, Shares, etc. (including regulations
promulgated thereunder, the Book-Entry Law), and the shares of all Japanese companies listed on any Japanesestock exchange, including Kyocera Corporation’s shares, became subject to this new system.
On the same day, all existing share certificates for such shares became null and void. At present, Japan Securities
Depository Center, Inc. (JASDEC) is the only institution that is designated by the relevant authorities as aclearing house which is permitted to engage in the clearing operations of shares of Japanese listed companies
under the Book-Entry Law. Under the new clearing system, in order for any person to hold, sell or otherwise
dispose of shares of Japanese listed companies, it must have an account at an account management institution
unless such person has an account at JASDEC. “Account management institutions” are financial instruments
traders (i.e., securities companies), banks, trust companies and certain other financial institutions which meet therequirements prescribed by the Book-Entry Law, and only those financial institutions that meet further stringent
requirements of the Book-Entry Law can open accounts directly at JASDEC.
Under the Book-Entry Law, any transfer of shares is effected through book entry, and title to the shares passes tothe transferee at the time when the transferred number of the shares is recorded at the transferee’s account at an
account management institution. The holder of an account at an account management institution is presumed tobe the legal owner of the shares held in such account.
Under the Corporation Act of Japan and the Book-Entry Law, in order to assert shareholders’ rights against
Kyocera Corporation, a shareholder must have its name and address registered in the register of shareholders ofKyocera Corporation, except in limited circumstances.
Non-resident shareholders are required to appoint a standing proxy in Japan or provide a mailing address inJapan. Each such shareholder must give notice of such standing proxy or mailing address to the relevant accountmanaging institution. Such notice will be forwarded to us through JASDEC. Japanese securities companies andcommercial banks customarily act as standing proxies and provide related services for standard fees. Notices
from us to non-resident shareholders are delivered to such standing proxies or mailing addresses.
The registered holder of deposited shares underlying the ADSs is the depositary for the ADSs. Accordingly,
holders of ADSs will not be able to directly assert shareholders’ rights.
Authorized capital
Article 6 of the Articles of Incorporation of Kyocera Corporation provides that the total number of sharesauthorized for issuance by Kyocera Corporation is 600,000,000 shares.
Distributions of Surplus
GeneralUnder the Corporation Act, distributions of cash or other assets by joint stock corporations to their shareholders,so-called “dividends,” are referred to as “distributions of Surplus” (“Surplus” is defined in “—Restriction on
distributions of Surplus”). Kyocera Corporation may make distributions of Surplus to its shareholders any
number of times per fiscal year, subject to certain limitations described in “—Restriction on distributions ofSurplus”. Distributions of Surplus are required in principle to be authorized by a resolution of a general meetingof shareholders, but may also be made pursuant to a resolution of the Board of Directors if all the requirements
described in (a) through (c) are met:(a) Kyocera Corporation’s Articles of Incorporation provide that the Board of Directors has the authority
to decide to make distributions of Surplus;
78

(b) the normal term of office of Kyocera Corporation’s Directors is not longer than one year; and(c) Kyocera Corporation’s non-consolidated annual financial statements and certain documents for the latest
fiscal year present fairly its assets and profit or loss, as required by ordinances of the Ministry of Justice.
In the case of Kyocera Corporation, at present, the requirements in (a) and (b) above are not met. Nevertheless,
Kyocera Corporation may make distributions of Surplus in cash as an interim dividend (an “interim dividend”) to
its shareholders by resolutions of the Board of Directors once per fiscal year under Kyocera Corporation’s
Articles of Incorporation and the Corporation Act.
Under Kyocera Corporation’s Articles of Incorporation, a year-end dividend may be distributed to shareholders ofrecord as of March 31 of each year pursuant to a resolution of a general meeting of shareholders, and an interim
dividend may be distributed to shareholders of record as of September 30 of each year pursuant to a resolution of
the Board of Directors. In addition, under the Corporation Act, Kyocera Corporation may make further
distributions of Surplus by resolution of general meetings of shareholders. Kyocera Corporation is not obliged to
pay any dividends unclaimed for a period of three years after the date on which they first became payable.
Distributions of Surplus, other than interim dividends, may be made in cash or in kind in proportion to thenumber of shares held by each shareholder. A resolution of a general meeting of shareholders or the Board of
Directors authorizing a distribution of Surplus must specify the kind and aggregate book value of the assets to be
distributed, the manner of allocation of such assets to shareholders, and the effective date of the distribution. If a
distribution of Surplus is to be made in kind, Kyocera Corporation may, pursuant to a resolution of a general
meeting of shareholders or (as the case may be) the Board of Directors, grant a right to its shareholders to require
Kyocera Corporation to make such distribution in cash instead of in kind. If no such right is granted toshareholders, the relevant distribution of Surplus must be approved by a special resolution of a general meetingof shareholders (see “Voting rights” with respect to a “special resolution”).
In Japan the “ex-dividend” date and the record date for dividends precede the date of determination of theamount of the dividend to be paid. The market price of shares generally goes ex-dividend on the second business
day prior to the record date.
Restriction on distributions of Surplus
When Kyocera Corporation makes a distribution of Surplus, it must, until the sum of its additional paid-in capitaland legal reserve reaches one-quarter of its stated capital, set aside in its additional paid-in capital and/or legal
reserve an amount equal to one-tenth of the amount of Surplus so distributed
The amount of Surplus at any given time must be calculated in accordance with the following formula:
A + B + C + D - (E + F + G)
In the above formula:“A” = the total amount of other capital surplus and other retained earnings, each such amount being thatappearing on Kyocera Corporation’s non-consolidated balance sheet as of the end of the last fiscal
year“B” = (if Kyocera Corporation has disposed of its treasury stock after the end of the last fiscal year) theamount of the consideration for such treasury stock received by Kyocera Corporation less the bookvalue thereof“C” = (if Kyocera Corporation has reduced its stated capital after the end of the last fiscal year) the amountof such reduction less the portion thereof that has been transferred to additional paid-in capital or
legal reserve (if any)79

“D” = (if Kyocera Corporation has reduced its additional paid-in capital or legal reserve after the end of thelast fiscal year) the amount of such reduction less the portion thereof that has been transferred tostated capital (if any)“E” = (if Kyocera Corporation has cancelled its treasury stock after the end of the last fiscal year) the bookvalue of such treasury stock“F” = (if Kyocera Corporation has distributed Surplus to its shareholders after the end of the last fiscal
year) the total book value of the Surplus so distributed“G” = certain other amounts set forth in ordinances of the Ministry of Justice , including (if Kyocera
Corporation has reduced Surplus and increased its stated capital, additional paid-in capital or legal
reserve after the end of the last fiscal year) the amount of such reduction and (if Kyocera
Corporation has distributed Surplus to its shareholders after the end of the last fiscal year) theamount set aside in its additional paid-in capital or legal reserve (if any) as required by ordinances ofthe Ministry of Justice
The aggregate book value of Surplus distributed by Kyocera Corporation may not exceed a prescribed
distributable amount (the “Distributable Amount”), as calculated on the effective date of such distribution. The
Distributable Amount at any given time shall be equal to the amount of Surplus less the aggregate of (a) the bookvalue of its treasury stock, (b) the amount of consideration for any of its treasury stock disposed of by it after theend of the last fiscal year and (c) certain other amounts set forth in ordinances of the Ministry of Justice,including (if the sum of one-half of goodwill and the deferred assets exceeds the total of stated capital, additional
paid-in capital and legal reserve, each such amount being that appearing on Kyocera Corporation’s
non-consolidated balance sheet as of the end of the last fiscal year) all or certain part of such exceeding amountas calculated in accordance with the ordinances of the Ministry of Justice.
If Kyocera Corporation has become at its option a company with respect to which consolidated balance sheets
should also be taken into consideration in the calculation of the Distributable Amount (renketsu haito kisei tekiyo
kaisha), it will be required to further deduct from the amount of Surplus the excess amount, if any, of (x) the total
amount of shareholders’ equity appearing on its non-consolidated balance sheet as of the end of the last fiscal
year and certain other amounts set forth by an ordinance of the Ministry of Justice over (y) the total amount ofshareholders’ equity and certain other amounts set forth by an ordinance of the Ministry of Justice appearing on
its consolidated balance sheet as of the end of the last fiscal year.
If Kyocera Corporation has prepared interim financial statements as described below, and if such interim
financial statements have been approved by the Board of Directors or (if so required by the Corporation Act) by ageneral meeting of shareholders, then the Distributable Amount must be adjusted to take into account the amountof profit or loss, and the amount of consideration for any of its treasury stock disposed of by it, during the period
in respect of which such interim financial statements have been prepared. Kyocera Corporation may prepare
non-consolidated interim financial statements consisting of a balance sheet as of any date subsequent to the endof the last fiscal year and an income statement for the period from the first day of the current fiscal year to thedate of such balance sheet. Interim financial statements so prepared by Kyocera Corporation must be audited by
its Corporate Auditors and independent certified public accountants, as required by ordinances of the Ministry ofJustice.
General Meeting of Shareholders
Pursuant to the Articles of Incorporation of Kyocera Corporation, an ordinary general meeting of shareholders ofKyocera Corporation shall be convened within three months after the last day of each fiscal year. In addition,
Kyocera Corporation may hold an extraordinary general meeting of shareholders whenever necessary.
Notice of a shareholders’ meeting, setting forth the place, time and purpose thereof, must be mailed to eachshareholder having voting rights (or, in the case of a non-resident shareholder, to the resident proxy or mailing80

address thereof in Japan) at least two weeks prior to the date set for the meeting. Under the Corporation Act, such
notice may be given to shareholders by electronic means, subject to the consent of the relevant shareholders.
Any shareholder or group of shareholders holding at least 300 voting rights or one percent of the total number ofvoting rights for six months or more may propose a matter to be considered at a general meeting of shareholders
by submitting a request to a Representative Director at least eight weeks prior to the date set for such meeting. If
Kyocera Corporation’s Articles of Incorporation so provide, any of the minimum percentages, time periods andnumber of voting rights necessary for exercising the minority shareholder rights described above may bedecreased or shortened.
Voting rights
A holder of shares constituting one or more whole units (see “Unit share system” below) is entitled to one votefor each whole unit of shares. However, in general, neither Kyocera Corporation nor any corporate shareholder or
certain other entity one-quarter or more of the total voting rights of which are directly or indirectly held byKyocera Corporation, has voting rights in respect of the shares held by Kyocera Corporation or such entity.
Except as otherwise provided by law or by the Articles of Incorporation of Kyocera Corporation, a resolution canbe adopted at a general meeting of shareholders by a majority of the total number of voting rights represented at
the meeting. Under the Corporation Act and Kyocera Corporation’s Articles of Incorporation, however, thequorum for the election of Directors and Corporate Auditors is one-third of the total number of voting rights.
Kyocera Corporation’s shareholders are not entitled to cumulative voting in the election of Directors.
Shareholders may exercise their voting rights through proxies, provided that the proxies are also shareholders
holding voting rights. Kyocera Corporation’s shareholders also may cast their votes in writing. Holders of shares
who do not attend a general meeting of shareholders may also exercise their voting rights by electronic means if
the Board of Directors approves such method of exercising voting rights.
The Corporation Act provides that certain important matters shall be approved by a “special resolution” of ageneral meeting of shareholders. Under Kyocera Corporation’s Articles of Incorporation, the quorum for a
special resolution is one-third of the total number of voting rights and the approval of at least two-thirds of thevoting rights represented at the meeting is required for adopting a special resolution. Such important matters
include:(i)purchase of shares by Kyocera Corporation from a specific shareholder other than a Kyocera
Corporation subsidiary;(ii)

consolidation of shares;(iii)

issuance or transfer of new shares or existing shares held by Kyocera Corporation as treasury stock
to persons other than the shareholders at a “specially favorable” price;(iv)

issuance of stock acquisition rights (including those incorporated in bonds with stock acquisitionrights) to persons other than the shareholders under “specially favorable” conditions;(v)removal of Kyocera Corporation’s Corporate Auditor;(vi)

exemption from a portion of liability of Kyocera Corporation’s Directors, Corporate Auditors or
independent auditors;(vii)

reduction of stated capital (subject to certain exceptions);(viii)

distribution of Surplus in kind with respect to which shareholders are not granted the right to require
Kyocera Corporation to make distribution in cash instead of in kind;(ix)

any amendment to Kyocera Corporation’s Articles of Incorporation (except for such amendmentsthat may be made without approval by shareholders under the Corporation Act);
81

(x)

transfer of the whole or a substantial part of Kyocera Corporation’s business;(xi)

taking over of the whole of the business of another company requiring shareholders’ approval;(xii)

dissolution, merger or consolidation requiring shareholders’ approval;(xiii)

corporate split requiring shareholders’ approval; and(xiv)

establishment of a parent and wholly-owned subsidiary relationship by way of a share transfer(kabushiki-iten) or share exchange (kabushiki-kokan) requiring shareholders’ approval.

Under the Corporation Act, Kyocera Corporation’s shareholders will possess various rights, such as the right toreview and make copies of its Articles of Incorporation and the register of shareholders, to convene a general
meeting of shareholders, to propose a matter to be considered at a general meeting of shareholders, and to bringderivative actions, depending upon the number of shares held by them and the duration of their shareholding.
Subscription rights
Holders of Kyocera Corporation’s shares of capital stock have no pre-emptive rights under its Articles ofIncorporation. Authorized but unissued shares may be issued at such times and upon such terms as the Board of
Directors determines, subject to the limitations as to the offering of new shares at a “specially favorable” pricementioned under “Voting rights” above. The Board of Directors may, however, determine that shareholders of aparticular class of stock shall be given subscription rights regarding a particular issue of new shares of that class,in which case such rights must be given on uniform terms to all shareholders of that class of stock as at a record
date of which not less than two weeks’ prior public notice must be given. Each of the shareholders to whom suchrights are given must also be given notice of the expiry thereof at least two weeks’ prior to the date on whichsuch rights expire.
Liquidation rights
In the event of a liquidation of Kyocera Corporation, the assets remaining after payment of all debts, liquidation
expenses and taxes will be distributed among the holders of our shares of common stock in proportion to therespective numbers of shares held by each holder.
Transfer agent
Kyocera Corporation’s transfer agent is Daiko Clearing Services Corporation. Daiko Clearing Services
Corporation maintains Kyocera Corporation’s register of shareholders and registers the names and addresses ofKyocera Corporation’s shareholders and other relevant information in Kyocera Corporation’s register ofshareholders upon notice thereof from JASDEC, as described in (“—Record date”)
Record date
March 31 is the record date for the determination of shareholders entitled to receive Kyocera Corporation’s
year-end dividends and to vote at the ordinary general meeting of shareholders with respect to the fiscal year
ending on such March 31. September 30 is the record date for interim dividends. In addition, Kyocera
Corporation may set a record date for determining the shareholders and/or beneficial shareholders entitled toother rights and for other purposes by giving at least two weeks’ prior public notice.
Under the Book-Entry Law, Kyocera Corporation is required to give notice of each record date to JASDEC atleast two weeks prior to such record date. JASDEC is required to promptly give Kyocera Corporation notice ofthe names and addresses of Kyocera Corporation’s shareholders, the numbers of shares held by them and otherrelevant information as of such record date. Kyocera Corporation, upon receipt of each such notice, will update
through the transfer agent its register of shareholders to reflect the information such notice contains.
82

Acquisition by Kyocera Corporation of its capital stock
Kyocera Corporation may acquire shares (i) by soliciting all its shareholders to offer to sell shares held by them (inthis case, certain terms of such acquisition, such as the total number of shares to be purchased and the total amountof consideration, shall be set by an ordinary resolution of a general meeting of shareholders in advance, andacquisition shall be effected pursuant to a resolution of the Board of Directors), (ii) from a specific shareholder
other than any of Kyocera Corporation’s subsidiaries (pursuant to a special resolution of a general meeting ofshareholders), (iii) from any of Kyocera Corporation’s subsidiaries (pursuant to a resolution of the Board of
Directors), or (iv) by way of purchase on any Japanese stock exchange on which the shares are listed or by way oftender offer (in either case pursuant to an ordinary resolution of a general meeting of shareholders or a resolution of
the Board of Directors). In the case of (ii) above, any other shareholder may make a request to Kyocera
Corporation’s Representative Director that such other shareholder be included as a seller in the proposed purchase,provided that no such right will be available if the purchase price or any other consideration to be received by therelevant specific shareholder will not exceed the higher of (x) the last trading price of the shares on the relevant
stock exchange on the day immediately preceding the date on which the resolution mentioned in (ii) above wasadopted (or, if there is no trading in the shares on the stock exchange or if the stock exchange is not open on suchday, the price at which the shares are first traded on such stock exchange thereafter) and (y) if the shares are subject
to a tender offer on the day immediately preceding the date on which the resolution mentioned in (ii) above wasadopted, the price of the shares under the agreement with respect to such tender offer on such day.
The total amount of the purchase price of shares may not exceed the Distributable Amount, as described in“Distributions of Surplus—Restriction on distributions of Surplus.”
The Corporation Act permits Kyocera Corporation to hold shares acquired by it as treasury stock. Treasury stock
may be held by Kyocera Corporation for any time period and may be cancelled by resolution of its Board of
Directors. Kyocera Corporation may also transfer to any person shares held by it as treasury stock, subject to a
resolution of its Board of Directors, and subject also to other requirements similar to those applicable to theissuance of new shares. Kyocera Corporation may also utilize its treasury stock for the purpose of transfer to any
person upon exercise of stock acquisition rights or for the purpose of acquiring another company by way ofmerger, share exchange or corporate split through exchange of treasury stock for shares or assets of the acquiredcompany. No specific approval by the Board of Directors or shareholders at a shareholders meeting is required
for this utilization of treasury stock, although the grant of the relevant stock acquisition rights or the relevant
merger, share exchange or corporate split must be approved, as the case may be, by the Board of Directors or
shareholders at Kyocera Corporation’s shareholders’ meeting.
“Unit” share system
Under Kyocera Corporation’s Articles of Incorporation, 100 shares constitute one “unit.” The Board of Directors
is permitted to reduce the number of shares constituting a unit or to abolish the unit share system in its entirety byamending Kyocera Corporation’s Articles of Incorporation without approval by shareholders. The number ofshares constituting one unit may not exceed the lesser of 1,000 and one-two hundredth of the total number ofissued shares.
Under the new clearing system, shares constituting less than one unit are transferable. However, because sharesconstituting less than one unit do not comprise a trading unit, except in limited circumstances, such shares may
not be sold on the Japanese stock exchanges under the rules of the Japanese stock exchanges.
Under the unit share system, a shareholder has one vote for each unit of shares held by it. Shares constituting lessthan one unit will carry no voting rights and be excluded for the purposes of calculating the quorum for voting
purposes. Moreover, holders of shares constituting less than one unit will have no other shareholder rights if
Kyocera Corporation’s Articles of Incorporation so provide, except that such holders may not be deprived ofcertain rights specified in the Corporation Act or an ordinance of the Ministry of Justice, including the right toreceive distribution of Surplus.
83A holder of shares constituting less than one unit may require Kyocera Corporation to purchase such shares attheir market value through the relevant account management institutions and JASDEC. The Articles ofIncorporation and the Share Handling Regulations of Kyocera Corporation provide that a holder of sharesconstituting less than one unit has the right to require Kyocera Corporation to sell to such holder sharesconstituting less than one unit which, when added to shares constituting less than one unit currently owned bysuch holder, shall constitute a full one unit. Under the new clearing system, such request must be made throughthe relevant account management institutions and JASDEC. The request of such purchase or sale may not be
withdrawn without Kyocera Corporation’s consent.
A holder who owns ADRs evidencing less than 100 ADSs will indirectly own less than a whole unit. Although,as discussed above, under the unit share system holders of less than one unit have the right to require Kyocera
Corporation to purchase their shares, holders of ADRs evidencing ADSs that represent other than integral
multiples of whole units are unable to withdraw the underlying shares of capital stock representing less than one
unit and, therefore, are unable, as a practical matter, to exercise the right to require Kyocera Corporation topurchase such underlying shares. As a result, access to the Japanese markets by holders of ADRs through thewithdrawal mechanism will not be available for dispositions of shares in lots of less than one unit. The unit sharesystem does not affect the transferability of ADSs, which may be transferred in lots of any size.
Miscellaneous
The Financial Instruments and Exchange Law of Japan and related regulations require any person who has
become, beneficially and solely or jointly, a holder of more than five percent of the total issued voting shares ofKyocera Corporation to file a report concerning such shareholdings with the Director of the relevant Local
Finance Bureau of the Ministry of Finance within five business days.
For this purpose, shares to be issued or transferred to these persons upon the exercise of stock acquisition rights
are included in determining both the size of the holding and Kyocera Corporation’s total issued voting sharecapital.
A similar report must also be filed in respect of any subsequent change of one percent or more in any suchholding, with certain exceptions. (For this purpose, any shares of Kyocera Corporation issuable to such person
upon conversion of convertible securities or exercise of stock acquisition rights, of which none are currently
outstanding, would be taken into account in determining both the number of shares held by such holder andKyocera Corporation’s total issued share capital.) Copies of such report must also be furnished to Kyocera
Corporation and to all Japanese stock exchanges on which the shares of Kyocera Corporation are listed.
Except for the general limitation under Japanese anti-trust and anti-monopoly regulations against holding ofshares of capital stock of a Japanese corporation which leads or may lead to a restraint of trade or monopoly, andexcept for general limitations under the Corporation Act or Kyocera Corporation’s Articles of Incorporation on
the rights of shareholders applicable regardless of residence or nationality, there is no limitation under Japaneselaws and regulations applicable to Kyocera Corporation or under its Articles of Incorporation on the rights of
non-resident or foreign shareholders to hold or exercise voting rights on the shares of capital stock of Kyocera
Corporation.
There is no provision in Kyocera Corporation’s Articles of Incorporation that would have an effect of delaying,deferring or preventing a change in control of Kyocera Corporation and that would operate only with respect tomerger, acquisition or corporate restructuring involving Kyocera Corporation.
Daily Price Fluctuation Limits under Japanese Stock Exchange Rules
Share prices on Japanese stock exchanges are determined on a real-time basis by the equilibrium between bids
and offers. These exchanges set daily price limits, which limit the maximum range of fluctuation within a single
84

trading day. Daily price limits are set according to the previous day’s closing price or special quote. Althoughtransactions may continue at the upward or downward limit price if the limit price is reached on a particular
trading day, no transactions may take place outside these limits. Consequently, an investor wishing to sell at a
price above or below the relevant daily limit may not be able to sell his or her shares at such price on a particular
trading day, or at all.
On June 25, 2010, the closing price of our shares of Common Stock on the Tokyo Stock Exchange was¥7,540 per share. The following table shows the daily price limit for a stock on the Tokyo Stock Exchange with aclosing price of between ¥5,000 and ¥10,000 per share, as well as the daily price limit if our per share price wereto rise to between ¥10,000 and ¥20,000, or fall to between ¥3,000 and ¥5,000. Other daily price limits would
apply if our per share price moved to other ranges.

Selected Daily Price Limits
Maximum Daily
Price Movement

Previous Day’s Closing Price or Special Quote

Over
Over
Over

¥3,000¥5,000¥10,000

Less thanLess thanLess than¥5,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥10,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥20,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 500¥1,000¥2,000For a history of the trading price of our shares of Common Stock on the Tokyo Stock Exchange, see Item 9.A.
“Offering and Listing Details” of this annual report on Form 20-F.
C. Material Contracts
During the preceding two years we have not entered into any material contracts, other than in the ordinary courseof business.
D. Exchange Controls
There is no foreign exchange control in Japan that may materially affect the import or export of capital, including
the availability of cash and cash equivalents for use by Kyocera Corporation, or the remittance of dividends orother payments to nonresident holders of Kyocera Corporation’s shares or of ADRs evidencing ADSs.
E. Taxation
Japanese Taxation
The following is a discussion summarizing material Japanese tax consequences to an owner of shares or ADSs
who is a non-resident of Japan or a non-Japanese corporation without a permanent establishment in Japan towhich the relevant income is attributable. The statements regarding Japanese tax laws set forth below are basedon the laws in force and as interpreted by the Japanese taxation authorities as at the date hereof. These statements
are subject to changes in the applicable Japanese laws or double taxation conventions occurring after that date.
This summary is not exhaustive of all possible tax considerations which may apply to a particular investor.
Potential investors should satisfy themselves as to:•the overall tax consequences of the ownership and disposition of shares or ADSs, including specificallythe tax consequences under Japanese law,•

the laws of the jurisdiction of which they are a resident, and•any tax treaty between Japan and their country of residence, by consulting their own tax advisers.

85

Generally, a non-resident of Japan or a non-Japanese corporation is subject to Japanese withholding tax on dividends
paid by Japanese corporations. Stock splits, subject to the following, are not subject to Japanese income tax.
•

The Convention Between the United States of America and Japan for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (the “Treaty”),
establishes the maximum rate of Japanese withholding tax which may be imposed on dividends paid toa United States resident or corporation (within the meaning of the Treaty) not having a “permanentestablishment” in Japan. A “permanent establishment” in Japan is generally a fixed place of businessfor industrial or commercial activity in Japan. Under the Treaty, the maximum withholding rate formost qualified portfolio shareholders is limited to 10% of the gross amount of the dividends and 5% of
the gross amount of the dividends if the beneficial owner is a qualified company that owns, directly or
indirectly, on the date on which entitlement to the dividend is determined, at least 10% (but not morethan 50%) of the voting stock of the issuing company. The Treaty provides that no Japanese tax will be
imposed on dividends paid to a qualified pension fund that is a United States resident, if such dividends
are not derived from the carrying on of a business, directly or indirectly, by such pension fund.

For purposes of the Treaty and Japanese tax law, U.S. holders of ADRs will be treated as the owners of theshares underlying the ADSs evidenced by the ADRs.
Japan has income tax treaties, conventions or agreements, which generally provide that the rate of withholding
tax may not exceed 15% for portfolio investors, with, among others, Belgium, Canada, Denmark, Finland,
Germany, Ireland, Italy, Luxembourg, the Netherlands, New Zealand, Norway, Singapore, Spain, Sweden and
Switzerland. Japan’s income tax treaties with Australia, France and the United Kingdom have been amended
to generally reduce the maximum withholding tax rate to 10%. In the absence of any applicable tax treaty,
convention or agreement reducing the maximum rate of withholding tax or allowing exemption from Japanese
withholding tax, the rate of Japanese withholding tax applicable to dividends paid by Kyocera Corporation to
non-residents or non-Japanese corporations is 20%. However, with respect to dividends paid by Kyocera
Corporation to any corporate or individual shareholders who are non-residents of Japan or non-Japanese
corporations, except for any individual shareholder who holds 5% or more of the outstanding total of the sharesissued by Kyocera Corporation, the said 20% withholding tax rate is reduced to (i) 7% for dividends due andpayable on or before December 31, 2011 and (ii) 15% for dividends due and payable on or after January 1, 2012.
Under Japanese tax law, whichever is the lower of the maximum rate provided in the relevant tax treaty,
convention or agreement and the Japanese statutory rate will be applicable.
Gains derived from the sale outside Japan of the shares or ADSs by a non-resident of Japan or a non-Japanese
corporation are in general not subject to Japanese income or corporation taxes. In addition, gains derived fromthe sale of shares or ADSs within Japan by a non-resident of Japan or non-Japanese corporation not having apermanent establishment in Japan are in general not subject to Japanese income or corporation taxes.
Kyocera Corporation has paid or will pay any stamp, registration or similar tax imposed by Japan in connection
with the issue of the shares, except that Kyocera Corporation will not pay any tax payable in connection with thetransfer or sale of the shares by a holder thereof.
Japanese inheritance and gift taxes at progressive rates may be payable by an investor who has acquired shares or
ADRs as legatee, heir or donee.
United States Taxation
The following discusses the material United States federal income tax consequences of the ownership of sharesor ADSs. It only applies to U.S. holders (as defined below) of shares or ADSs who hold their shares or ADSs as
capital assets for tax purposes. This section does not address special classes of holders, some of whom may besubject to special rules including:•a dealer in securities,86•a trader in securities that elects to use a mark-to-market method of accounting for securities holdings,•

a tax-exempt organization,•certain insurance companies,•

a person liable for alternative minimum tax,•

a person that actually or constructively owns 10% or more of our voting stock,•a person that holds shares or ADSs as part of a straddle or a hedging or conversion transaction, or•a person whose functional currency is not the U.S dollar.

This discussion is based on the tax laws of the United States, including the Internal Revenue Code of 1986, as
amended, its legislative history, existing and proposed regulations and administrative and judicial interpretations,as currently in effect, as well as on the Treaty. These laws are subject to change, possibly on a retroactive basis.
In addition, this discussion is based in part upon the representations of the depositary and the assumption thateach obligation in the deposit agreement relating to the ADRs and any related agreement will be performed inaccordance with its terms.
If a partnership holds the shares or ADSs, the United States federal income tax treatment of a partner will
generally depend on the status of the partner and the tax treatment of the partnership. A partner in a partnership
holding the shares or ADSs should consult its tax advisor with regard to the United States federal income tax
treatment of an investment in the shares or ADSs.
For purposes of this discussion, a “U.S. holder” is a beneficial owner of shares or ADSs that is:•a citizen or resident of the United States,•

a domestic corporation,•an estate whose income is subject to United States federal income tax regardless of its source, or•a trust if a United States court can exercise primary supervision over the trust’s administration and one
or more United States persons are authorized to control all substantial decisions of the trust.

This discussion addresses only United States federal income taxation. An investor should consult its own tax
advisor regarding the United States federal, state and local and other tax consequences of owning and disposingof shares or ADSs in its particular circumstances.
In general, and taking into account the earlier assumptions, for United States federal income tax purposes, if theinvestor holds ADRs evidencing ADSs, the investor will be treated as the owner of the shares represented bythose ADSs. Exchanges of shares for ADRs, and ADRs for shares, generally will not be subject to United Statesfederal income tax.
Taxation of Dividends
Subject to the PFIC rules discussed below, under the United States federal income tax laws, if the investor is a
U.S. holder, the gross amount of any dividend paid by Kyocera Corporation out of its current or accumulated
earnings and profits, as determined for United States federal income tax purposes, is subject to United Statesfederal income taxation. If the investor is a non-corporate U.S. holder, dividends paid in taxable years beginningbefore January 1, 2011 that constitute qualified dividend income will be taxable at a maximum rate of 15%
provided that the shares or ADSs are held for more than 60 days during the 121-day period beginning 60 days
before the ex-dividend date and meet other holding period requirements. Dividends paid with respect to shares or
ADSs generally will be qualified dividend income. The investor must include any Japanese tax withheld from thedividend payment in this gross amount even though it does not in fact receive it.
87

The dividend must be included in income when the investor, in the case of shares, or the depositary, in the caseof ADSs, receives the dividend, actually or constructively. The dividend will not be eligible for the dividendsreceived deduction generally allowed to United States corporations in respect of dividends received from other
United States corporations.
The amount of the dividend distribution that the investor must include in its income as a U.S. holder will be theU.S. dollar value of the Japanese yen payments made, determined at the spot Japanese yen/U.S. dollar rate on thedate the dividend distribution is includible in the investor’s income, regardless of whether the payment is in fact
converted into the U.S. dollars. Generally, any gain or loss resulting from currency exchange fluctuations during
the period from the date the investor includes the dividend payment in income to the date it converts the payment
into the U.S. dollars will be treated as ordinary income or loss and will not be eligible for the special tax rateapplicable to qualified dividend income. The gain or loss generally will be income or loss from sources within
the United States for foreign tax credit limitation purposes.
Distributions in excess of current and accumulated earnings and profits, as determined for United States federal
income tax purposes, will be treated as a non-taxable return of capital to the extent of the investor’s basis in theshares or ADSs and thereafter as capital gain.
Subject to certain limitations, the Japanese tax withheld in accordance with the Treaty and paid over to Japan willbe creditable against the investor’s United States federal income tax liability. Special rules apply in determining
the foreign tax credit limitation with respect to dividends that are subject to the maximum 15% tax rate. To theextent a refund of the tax withheld is available to the investor under Japanese law or under the Treaty, the amountof tax withheld that is refundable will not be eligible for credit against the investor’s United States federal
income tax liability.
Dividends will, depending on the investor’s circumstances, generally be either “passive” or “general” income forpurposes of computing the foreign tax credit allowable to the investor.
Distributions of additional shares to the investor with respect to shares or ADSs that are made as part of a pro
rata distribution to all shareholders of Kyocera Corporation generally will not be subject to United States federal
income tax.
Taxation of Capital Gains
Subject to the PFIC rules discussed below, if the investor is a U.S. holder and the investor sells or otherwise
disposes of its shares or ADSs, the investor will recognize capital gain or loss for United States federal income
tax purposes equal to the difference between the U.S. dollar value of the amount that the investor realizes and its
tax basis, determined in the U.S. dollars, in its shares or ADSs. Capital gain of a non-corporate U.S. holder isgenerally taxed at preferential rates where the holder has a holding period greater than one year. Additionally,
gain or loss will generally be income or loss from sources within the United States for foreign tax credit
limitation purposes.
PFIC Rules
Kyocera Corporation believes that its shares and ADSs should not be treated as stock of a PFIC for United Statesfederal income tax purposes, but this conclusion is a factual determination that is made annually and thus may besubject to change.
In general, if the investor is a U.S. holder, Kyocera Corporation will be a PFIC with respect to the investor if for
any taxable year in which the investor held our ADSs or shares:•

at least 75% of our gross income for the taxable year is passive income or•at least 50% of the value, determined on the basis of a quarterly average, of our assets is attributable toassets that produce or are held for the production of passive income.
88Passive income generally includes dividends, interest, royalties, rents (other than certain rents and royalties
derived in the active conduct of a trade or business), annuities and gains from assets that produce passive income.
If a foreign corporation owns at least 25% by value of the stock of another corporation, the foreign corporation istreated for purposes of the PFIC tests as owning its proportionate share of the assets of the other corporation, andas receiving directly its proportionate share of the other corporation’s income.
If Kyocera Corporation is treated as a PFIC, and the investor is a U.S. holder that did not make a mark-to-market
election, as described below, the investor will be subject to special rules with respect to:•

any gain the investor realizes on the sale or other disposition of your shares or ADSs and•any excess distribution that we make to the investor (generally, any distributions to the investor during
a single taxable year that are greater than 125% of the average annual distributions received by theinvestor in respect of the shares or ADSs during the three preceding taxable years or, if shorter, theinvestor’s holding period for the shares or ADSs).

Under these rules:•

the gain or excess distribution will be allocated ratably over the investor’s holding period for the sharesor ADSs,•

the amount allocated to the taxable year in which the investor realized the gain or excess distribution
will be taxed as ordinary income,•the amount allocated to each prior year, with certain exceptions, will be taxed at the highest tax rate ineffect for that year, and•the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax
attributable to each such year.

Special rules apply for calculating the amount of the foreign tax credit with respect to excess distributions by a
PFIC.
If the investor owns shares or ADSs in a PFIC that are treated as marketable stock, the investor may make amark-to-market election. Kyocera Corporation’s shares and ADSs will be treated as marketable stock for acalendar year if they are regularly traded (within the meaning of applicable Treasury regulations) on a qualified
exchange (which includes the New York Stock Exchange) during such calendar year. If the investor makes thiselection, the investor will not be subject to the PFIC rules described above. Instead, in general, the investor will
include as ordinary income each year the excess, if any, of the fair market value of its shares or ADSs at the endof the taxable year over its adjusted basis in its shares or ADSs. These amounts of ordinary income will not be
eligible for the favorable tax rates applicable to qualified dividend income or long-term capital gains. The
investor will also be allowed to take an ordinary loss in respect of the excess, if any, of the adjusted basis of its
shares or ADSs over their fair market value at the end of the taxable year (but only to the extent of the net
amount of previously included income as a result of the mark-to-market election). The investor’s basis in theshares or ADSs will be adjusted to reflect any such income or loss amounts.
In addition, notwithstanding any election the investor makes with regard to the shares or ADSs, dividends that it
receives from Kyocera Corporation will not constitute qualified dividend income to the investor if Kyocera
Corporation is a PFIC either in the taxable year of the distribution or the preceding taxable year. Moreover, theinvestor’s shares or ADSs will be treated as stock in a PFIC if Kyocera Corporation was a PFIC which was not aqualified electing fund with respect to the investor at any time during its holding period in its shares or ADSs,
even if Kyocera Corporation is not currently a PFIC. For purposes of this rule, if the investor makes amark-to-market election with respect to its shares or ADSs, the investor will be treated as having a new holding
period in its shares or ADSs beginning on the first day of the first taxable year beginning after the last taxable
year for which the mark-to-market election applies. Dividends that the investor receives that do not constitute89

qualified dividend income are not eligible for taxation at the 15% maximum rate applicable to qualified dividend
income. Instead, the investor must include the gross amount of any such dividend paid by Kyocera
Corporation out of our accumulated earnings and profits (as determined for United States federal income tax
purposes) in its gross income, and it will be subject to tax at rates applicable to ordinary income.
If the investor owns shares or ADSs during any year that Kyocera Corporation is a PFIC with respect to theinvestor, it must file Internal Revenue Service Form 8621.
F. Dividends and Paying Agents
Not Applicable.
G. Statement by Experts
Not Applicable.
H. Documents on Display
We are subject to the informational requirements of the Securities Exchange Act of 1934 and, in accordance
therewith, we will file annual reports on Form 20-F within six months of our fiscal year-end and other reports
and information on Form 6-K with the Securities and Exchange Commission. These reports and otherinformation can be inspected at the public reference room at the Securities and Exchange Commission at 100 F
Street, N.E., Washington, D.C. 20549. You can also obtain copies of such material by mail from the public
reference room of the Securities and Exchange Commission at prescribed fees. You may obtain information on
the operation of the Securities and Exchange public reference room by calling the Securities and Exchange
Commission in the United States at 1-800-SEC-0330. The Securities and Exchange Commission also maintains a
web site at www.sec.gov that contains reports, proxy statements and other information regarding registrants thatfile electronically with the Securities and Exchange Commission. As a foreign private issuer, we are exempt fromthe rules under the Securities Exchange Act of 1934 prescribing the furnishing and content of proxy statements toshareholders.
I. Subsidiary Information
Not Applicable.
Item 11.

Quantitative and Qualitative Disclosures about Market Risk

Kyocera is exposed to market risk, including changes in foreign currency exchange rates, interest rates and equity
prices. In order to hedge against these risks, Kyocera uses derivative financial instruments. Kyocera does nothold or issue derivative financial instruments for trading purposes. Kyocera regularly assesses these market risks
based on policies and procedures established to protect against the adverse effects of these risks and otherpotential exposures, primarily by reference to the market value of financial instruments. Although Kyocera may
be exposed to losses in the event of non-performance by counterparties, Kyocera believes that its counterpartiesare creditworthy and does not expect such losses, if any, to be significant.
In the normal course of business, Kyocera also faces other risks such as country risk, credit risk, or legal risk, butthey are not represented in the following tables.
Foreign Currency Exchange Risk
Kyocera enters into foreign currency forward contracts and currency swap contracts to hedge certain existing
assets and liabilities denominated in foreign currencies, principally the U.S. dollar and the Euro. All such90contracts currently in effect will generally mature within four months. The following tables provide information
about Kyocera’s major foreign currency forward contracts and currency swap contracts existing at March 31,
2010, which include hedge accounting setting forth the contract amounts, fair value, weighted average exchange
rates and currency swap contracts. The contract amounts are generally used to calculate the contractual payments
to be exchanged under the contracts.
Forward exchange contracts to sell foreign currencies(Pay/Receive) (Except average contractual rates)
Euro/Yen
US$/Yen
Euro/US$(Yen in millions)Contract amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average contractual rates . . . . . . . . . . . . . . . . . . . . . . . .

¥46,055771
0.008

Forward exchange contracts to purchase foreign currencies(Receive/Pay) (Except average contractual rates)
Yen/ US$CZK/US$
US$/Yen(Yen in millions)Contract amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average contractual rates . . . . . . . . . . . . . . . . . . . . . . . .

¥ 7,313(124)
90.908¥27,897
(734)
0.011

¥4,221
34
0.735¥ 6,436(12)
18.801¥4,16626
0.011

Note: “CZK” means the lawful currency of the Czech Republic.

Currency swaps

2011

Contract amounts . . . . . . . . . . . . . . . . . . .
Swap rates . . . . . . . . . . . . . . . . . . . . . . . .

¥

50
0.039

(S$ Receive/THB Pay)
Expected maturity date
2012
2013
2014
2015
Thereafter(Yen in millions)

49
0.040

47
0.041

46
0.041

44
0.042

43
0.043

Total

Fair value

¥279
—

¥ (9)
—

Note: “S$” means the lawful currency of the Republic of Singapore and “THB” means the lawful currency of theKingdom of Thailand.
Interest Rate Risk
Kyocera may enter into interest rate swaps and other contracts to reduce market risk exposure to changes ininterest rates. The tables below provide information about Kyocera’s financial instruments that are sensitive tochanges in interest rates.
Expected maturity date
2012
2013
2014
2015
(Yen in millions)Long-term debt(including due within one year)

Averagepay rate

Loans from banks andothers . . . . . . . . . . . . . . . . .

5.45% ¥13,456 10,263 9,980 5,240 2,554

2011

Thereafter

1,030

Total

Fair value¥42,523 ¥42,710

Interest rate swaps
Notional
Averageprincipal
receiveamounts
rate(Variable to Fixed)

Averagepay rate

2011

2012

¥625

4.42%

¥—

—

0.85%

Contract
amounts

Premium
paid

Averagepay rate

2011¥3,125¥15

0.85%¥3,125

Expected maturity date
2013
2014
2015
Thereafter(Yen in millions)

625

—

—

—

Interest rate caps
Expected maturity date
2012
2013
2014
2015
Thereafter(Yen in millions)

—

—
91

—

—

—

Total

Fair value

¥625

¥(44)

Total

Fair value¥3,125¥—

Equity Price Risk
Kyocera has marketable equity and debt securities that are classified as available-for-sale and are carried in the
consolidated balance sheets at fair value. Changes in fair value are recognized as other comprehensive income,net of taxes, as a separate component of shareholders’ equity. Gross unrealized gains on marketable equity
securities, which were ¥40,792 million, included ¥28,140 million derived from unrealized gain of KDDI
Corporation held by Kyocera. Detailed information appears in Note 3 to the Consolidated Financial Statements
included in this annual report on Form 20-F. Kyocera evaluates whether declines in fair value of debt and equity
securities are other-than-temporary. Other-than-temporary declines in fair value are recorded as a realized loss
with a new cost basis. This evaluation is based mainly on the duration and the extent to which the fair value isless than cost and the anticipated recoverability of fair value in the future. Other-than-temporary loss on debt andequity securities with readily determinable fair values for the years ended March 31, 2009 and 2010 amounted
to ¥6,875 million and ¥191 million, respectively. At March 31, 2010, Kyocera held the following
available-for-sale marketable equity and debt securities.
March 31, 2010
Cost
Fair Value(Yen in millions)Due within 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due after 1 year to 5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due after 5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Item 12.

Description of Securities Other than Equity Securities

A. Debt Securities
Not Applicable.
B. Warrants and Rights
Not Applicable.
C. Other Securities
Not Applicable.

92

¥

1,925
15,531
2,466
273,840¥

1,824
15,092
2,302
314,463¥293,762¥333,681

D. American Depositary Shares
Fee Schedule
Kyocera’s American Depositary Receipts (ADR) program is administered by Citibank, N.A., as depositary. The
holder of an ADR has to pay the following fees and charges related to services in connection with the ownershipof the ADR to the depositary bank.
Service

Rate

By Whom Paid

(1) Issuance of ADSs upon depositof Stock (excluding issuances
contemplated by paragraphs(3)(b) and (5) below).

Up to $5.00 per 100 ADSs (orfraction thereof) issued.

Party for whom deposits are
made or party receiving ADSs.

(2) Delivery of Deposited
Securities, property and cash
against surrender of ADSs.

Up to $5.00 per 100 ADSs (orfraction thereof) surrendered.

Party surrendering ADSs or
making withdrawal.

(3) Distribution of (a) cash dividendor (b) ADSs pursuant to Stock
Splits (as defined in the Deposit
Agreement).

No fee.

Not applicable.

(4) Distribution of cash proceeds(i.e. upon sale of rights andother entitlements).

Up to $2.00 per 100 ADSs held.

Party to whom distribution ismade.

(5) Distribution of ADSs pursuant
to exercise of rights.

Up to $5.00 per 100 ADSs issued.

Party to whom distribution is
made.

Charges
Holders and Beneficial Owners shall be responsible for the following charges:(i)taxes (including applicable interest and penalties) and other governmental charges;(ii) such registration fees as may from time to time be in effect for the registration of shares of Stock or other
Deposited Securities on the share register and applicable to transfers of shares of Stock or other Deposited
Securities to or from the name of the Custodian, the Depositary or any nominees upon the making ofdeposits and withdrawals, respectively;(iii) such cable, telex and facsimile transmission and delivery expenses as are expressly provided in the Deposit
Agreement to be at the expense of the person depositing shares of Stock or Holders and Beneficial Ownersof ADSs;(iv) the expenses and charges incurred by the Depositary in the conversion of foreign currency;(v) such fees and expenses as are incurred by the Depositary in connection with compliance with exchange
control regulations and other regulatory requirements applicable to shares of Stock, Deposited Securities,
ADSs and ADRs; and(vi) the fees and expenses incurred by the Depositary in connection with the delivery of Deposited Securities
Reimbursement fees and payments
There are no fees or other direct and indirect payments received from the Depositary to Kyocera Corporation.

93

PART II
Item 13.

Defaults, Dividend Arrearages and Delinquencies

None.
Item 14.

Material Modification to the Rights of Security Holders and Use of Proceeds

None.
Item 15.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures
Kyocera’s management, with the participation of its principal executive and principal financial officers,
evaluated the effectiveness of Kyocera’s disclosure controls and procedures (as defined in Rules 13a-15(e) under
the U.S. Securities Exchange Act of 1934) as of March 31, 2010. Based on that evaluation, Kyocera’s principal
executive and principal financial officers concluded that the disclosure controls and procedures were effective asof that date.
Management’s Report on Internal Control over Financial Reporting
Kyocera’s management is responsible for establishing and maintaining adequate internal control over financial
reporting (as defined in Rules 13a-15(f) under the U.S. Securities Exchange Act of 1934). Because of its inherent
limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections ofany evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
Kyocera’s management, with the participation of its principal executive and principal financial officers,
evaluated the effectiveness of Kyocera’s internal control over financial reporting using the criteria set forth inInternal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Based on this evaluation, Kyocera’s management concluded that Kyocera’s internal
control over financial reporting was effective as of March 31, 2010. Kyocera’s independent registered public
accounting firm, Kyoto Audit Corporation , has audited the effectiveness of Kyocera’s internal control overfinancial reporting as of March 31, 2010, as stated in their report which appears on page F-1 of this annual reporton Form 20-F.
Evaluation of Changes in Internal Control over Financial Reporting
Kyocera’s management, with the participation of its principal executive and principal financial officers, also
carried out an evaluation of changes in our internal control over financial reporting during the year ended
March 31, 2010. Based on that evaluation, there was no change in Kyocera’s internal control over financial
reporting that occurred during the year ended March 31, 2010 that materially affected, or is reasonably likely tomaterially affect, Kyocera’s internal control over financial reporting.
Item 16.

[Reserved]

Item 16A. Audit Committee Financial Expert
The Board of Corporate Auditors of Kyocera has determined that Kyocera does not have an “audit committee
financial expert” as defined in Item 16A of Form 20-F serving on the Board of Corporate Auditors. Kyocera
believes that the combined knowledge, skills and experience of the Board of Corporate Auditors enables them, asa group, to act effectively in the fulfillment of their tasks and responsibilities, including those under the94Sarbanes-Oxley Act of 2002. In addition, the Corporate Auditors have the power and authority to engage outside
experts, including those who have the attributes described in Item 16A(b) of Form 20-F, as they deem
appropriate to provide them with advice on matters related to their tasks and responsibilities.
Item 16B. Code of Ethics
Kyocera has adopted a code of ethics that applies to Chief Executive Officer, Chief Financial Officer and themembers of Kyocera Disclosure Committee. Kyocera’s code of ethics, which is Exhibit 11.1 to this annual reporton Form 20-F, is incorporated herein by reference.
Item 16C. Principal Accountant Fees and Services
Principal Independent Registered Public Accounting Firm Fees
Kyoto Audit Corporation served as our independent registered public accounting firm for fiscal 2009 and fiscal
2010 and audited our Consolidated Financial Statements included in this annual report on Form 20-F.
The following table presents the aggregate fees for professional services and other services rendered by Kyoto
Audit Corporation, a cooperating firm of PricewaterhouseCoopers, and member firmsof PricewaterhouseCoopers to Kyocera in fiscal 2009 and fiscal 2010.
Years ended March 31,
2009
2010
(Yen in millions)Audit Fees(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Audit-related Fees(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Fees(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All Other Fees(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,46093306
9¥1,371
4
248
152

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,868¥1,775(1) Amounts represent fees for the annual audit of Kyocera for fiscal 2009 and fiscal 2010, reviews ofKyocera’s financial statements for interim periods, other regulatory filings in fiscal 2009 and fiscal 2010
and the statutory audit of internal control over financial reporting for fiscal 2009 and fiscal 2010.
(2) Amounts primarily represent fees for other procedures related to documents filed with the SEC andconsultations concerning financial accounting and reporting standards in fiscal 2009. Amounts for fiscal
2009 also included due diligence services concerning business combinations.
(3) Amounts represent fees for tax services which are mainly international tax compliance performed by the tax
department of the independent registered public accounting firm other than financial audit in fiscal 2009 andfiscal 2010.
(4) All other fees for fiscal 2010 primarily included fees for advisory services of sales force and repair parts
service project.
Policies and Procedures of the Board of Corporate Auditors
In accordance with the regulations of the Securities and Exchange Commission issued pursuant to Sections 202
and 208 of the Sarbanes-Oxley Act of 2002, our Board of Corporate Auditors has adopted a pre-approval policy
regarding non-audit work performed by Kyoto Audit Corporation and by member firms of thePricewaterhouseCoopers network for Kyocera and its subsidiaries, other than such work performed for AVX
Corporation, which is itself an SEC-reporting entity and follows the pre-approval policy that its audit committee
has adopted. Under Kyocera’s pre-approval policy, there are two types of pre-approval procedures, “General
Pre-Approval” and “Specific Pre-Approval.”

95

Under the pre-approval procedure for “General Pre-Approval,” each of Kyocera group companies (other than
AVX Corporation) must make a proposal to Kyocera’s Board of Corporate Auditors for the types of services andestimated fee levels of each category of services to be generally pre-approved. Such proposal must be madeannually. If such proposal is accepted, Kyocera’s Board of Corporate Auditors includes these services in a
“General Pre-Approved List.” In addition, our Board of Corporate Auditors is notified of each such service
actually rendered.
Under the pre-approval procedure for “Specific Pre-Approval,” if any proposed services are not on the General
Pre-Approved List, each of Kyocera group companies (other than AVX Corporation) must submit an application
to Kyocera’s Board of Corporate Auditors for such services. After reviewing the details and estimated fee levels
for each engagement, Kyocera’s Board of Corporate Auditors may make a specific pre-approval decision onthese services. Also, if any approved services in the General Pre-Approved List exceed the fee levels prescribedon the List, each of Kyocera group companies (other than AVX Corporation) must submit an application to
Kyocera’s Board of Corporate Auditors for new fee levels for such services. Kyocera’s Board of Corporate
Auditors may make a pre-approval decision after reviewing the details of the services and the estimated fee
levels for each engagement.
All of the services provided by Kyoto Audit Corporation, a cooperating firms of PricewaterhouseCoopers, or bymember firm of PricewaterhouseCoopers network since Rule 2-01(c)(7) of Regulation S-X became effective
were approved by Kyocera’s Board of Corporate Auditors pursuant to the pre-approval policy described above,and none of such services were approved pursuant to the procedures described in Rule 2-01(c)(7)(i)(C) of
Regulation S-X, which waives the general requirement for pre-approval in certain circumstances.
Item 16D. Exemptions from the Listing Standards for Audit Committees
With respect to the requirements of Rule 10A-3 under the Securities Exchange Act of 1934 relating to listedcompany audit committees, which apply to us through Section 303A.06 of the New York Stock Exchange’s
Listed Company Manual, we rely on an exemption provided by paragraph (c)(3) of that Rule available to foreign
private issuers with boards of corporate auditors meeting certain requirements. For a New York Stock Exchangelisted Japanese company with a board of corporate auditors, the requirements for relying on paragraph (c)(3) ofRule 10A-3 are as follows:(a) The board of corporate auditors must be established, and its members must be selected, pursuant toJapanese law expressly requiring such a board for Japanese companies that elect to have a corporate
governance system with corporate auditors.
(b) Japanese law must and does require the board of corporate auditors to be separate from the board of
directors.
(c) None of the members of the board of corporate auditors is elected by management, and none of thelisted company’s executive officers is a member of the board of corporate auditors.
(d) Japanese law must and does set forth standards for the independence of all members of the board ofcorporate auditors from the listed company or its management. Also, under Japanese law, at least halfof a company’s corporate auditors must be “outside” corporate auditors, to whom additional
independence requirements apply.
(e) The board of corporate auditors, in accordance with Japanese law or the listed company’s governing
documents, must be responsible, to the extent permitted by Japanese law, for the appointment, retention
and oversight of the work of any registered public accounting firm engaged (including, to the extent
permitted by Japanese law, the resolution of disagreements between management and the auditor
regarding financial reporting) for the purpose of preparing or issuing an audit report or performing
other audit, review or attest services for the listed company, including its principal accountant which
audits its Consolidated Financial Statements included in its annual reports on Form 20-F.
96

(f)

To the extent permitted by Japanese law:•

the board of corporate auditors must establish procedures for (i) the receipt, retention andtreatment of complaints received by us regarding accounting, internal accounting controls, orauditing matters, and (ii) the confidential, anonymous submission by our employees of concerns
regarding questionable accounting or auditing matters;•

the board of corporate auditors must have the authority to engage independent counsel and otheradvisers, as it determines necessary to carry out its duties; and•the listed company must provide for appropriate funding, as determined by its board of corporate
auditors, for payment of (i) compensation to any registered public accounting firm engaged for the
purpose of preparing or issuing an audit report or performing other audit, review or attest services
for us, (ii) compensation to any advisers employed by the board of corporate auditors, and(iii) ordinary administrative expenses of the board of corporate auditors that are necessary or
appropriate in carrying out its duties.

In our assessment, our Board of Corporate Auditors, which meets the requirements for reliance on the exemption
in paragraph (c)(3) of Rule 10A-3 described above, is not materially less effective than an audit committee
meeting all the requirements of paragraph (b) of Rule 10A-3 (without relying on any exemption provided by thatRule) at acting independently of management and performing the functions of an audit committee ascontemplated therein.
Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
The following table sets forth certain information with respect to purchases of our own shares by us and ouraffiliated purchasers.

(b) Average
Price Paid
per Share(or Unit)(c) Total Number of
Shares (or Units)
Purchased as Part of
Publicly Announced
Plans or Programs(d) Maximum Number(or Approximate Dollar Value)of Shares (or Units)that May Yet Be
Purchased Under thePlans or Programs

494
774
591
438
679
484
473
281
740
925
782
882

6,886.35
7,504.32
7,381.74
7,014.74
7,620.05
7,740.20
7,921.52
7,569.03
7,932.51
8,313.03
8,020.30
8,381.70

—
—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—
—

7,543

7,777.21——(a) Total
Number of
Shares(or Units)
Purchased

April 1 to April 30, 2009 . . . . . . . . . . . .
May 1 to May 31, 2009 . . . . . . . . . . . . .
June 1 to June 30, 2009 . . . . . . . . . . . . .
July 1 to July 31, 2009 . . . . . . . . . . . . . .
August 1 to August 31, 2009 . . . . . . . . .
September 1 to September 30, 2009 . . .
October 1 to October 31, 2009 . . . . . . .
November 1 to November 30, 2009 . . .
December 1 to December 31, 2009 . . . .
January 1 to January 31, 2010 . . . . . . . .
February 1 to February 28, 2010 . . . . . .
March 1 to March 31, 2010 . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PeriodNote: Under the Corporation Act, a holder of shares constituting less than one full unit may request Kyocera
to purchase such shares at their market value. (See Memorandum and Articles of Association—Capitalstock —”Unit share system,” in “Item 10. Additional Information.”) All purchases described in the abovetable were made pursuant to such requests by shareholders.

97

Item 16F. Change in Registrant’s Certifying Accountant
Not Applicable.
Item 16G.

Corporate Governance

Companies listed on the New York Stock Exchange (NYSE) must comply with certain standards regarding
corporate governance under Section 303A of the NYSE Listed Company Manual. However, listed companies
that are foreign private issuers, such as Kyocera Corporation, are permitted to follow home country practice inlieu of certain provisions of Section 303A.
The following table shows the significant differences between the corporate governance practices followed by
U.S. listed companies under Section 303A of the NYSE Listed Company Manual and those followed by Kyocera
Corporation.
Corporate Governance Practices
Followed by NYSE-listed U.S. Companies

Corporate Governance Practices
Followed by Kyocera Corporation

1. An NYSE-listed U.S. company must have a majorityof directors meeting the independence requirements
under Section 303A of the NYSE Listed Company
Manual.

For large Japanese companies, including Kyocera
Corporation, which employ a corporate governancesystem based on a board of corporate auditors (the“board of corporate auditors system”), theCorporation Act of Japan (the Corporation Act) has
no independence requirement with respect todirectors. The task of overseeing management andindependent auditors is assigned to the corporate
auditors, who are separate from Kyocera
Corporation’s management. All corporate auditors
must meet certain independence requirements
under the Corporation Act.
For large Japanese companies with a board ofcorporate auditors, including Kyocera Corporation, atleast half of the members of such board must be“outside” corporate auditors. Such “outside”
corporate auditors must meet additional
independence requirements under the Corporation
Act. An “outside” corporate auditor means acorporate auditor who has not served as a director,
manager or other employee of Kyocera Corporationor any of its subsidiaries previously.
As of March 31, 2010, Kyocera Corporation had fivecorporate auditors, of whom three were “outside”
corporate auditors.
In addition to the independence requirements under
the Corporation Act described above, the rules of theJapanese stock exchanges require that, with effectfrom the day following the date of the annual
shareholders meeting for the fiscal year ended on
March 31, 2010, at least one of Kyocera Corporation’s
outside directors or outside corporate auditors mustmeet certain additional independence criteria.
98Corporate Governance Practices
Followed by NYSE-listed U.S. Companies

Corporate Governance Practices
Followed by Kyocera Corporation

2. An NYSE-listed U.S. company must have an audit
committee composed entirely of independent directors,
and the audit committee must have at least threemembers.

Kyocera Corporation employs the board of corporate
auditors system as described above. Under thissystem, the board of corporate auditors is a legally
separate and independent body from the board of
directors. The main function of the board ofcorporate auditors is similar to that of independent
directors, including those who are members of theaudit committee of a U.S. company: to monitor the
performance of the directors, and review and express
opinions on the method of auditing by Kyocera
Corporation’s independent auditors and on such
independent auditors’ audit reports, for the protectionof Kyocera Corporation’s shareholders.
Kyocera Corporation and other large Japanesecompanies which employ the board of corporate
auditors system are required to have at least three
corporate auditors. As of March 31, 2010, Kyocera
Corporation had five corporate auditors. Eachcorporate auditor serves a four-year term of office. In
contrast, the term of office of each director of
Kyocera Corporation is two years.
With respect to the requirements of Rule 10A-3
under the U.S. Securities Exchange Act of 1934
relating to listed company audit committees, Kyocera
Corporation relies on an exemption under that rule
which is available to foreign private issuers withboards of corporate auditors meeting certain
requirements.

3. An NYSE-listed U.S. company must have anominating/corporate governance committee composed
entirely of independent directors.

Kyocera Corporation’s directors are elected at a
general meeting of shareholders. Its board of
directors does not have the power to fill vacancies
thereon. Kyocera Corporation’s corporate auditors
are also elected at a general meeting of shareholders.
A proposal by Kyocera Corporation’s board of
directors to elect a corporate auditor must be
approved by a resolution of its board of corporate
auditors. The board of corporate auditors is
empowered to adopt a resolution requesting that
Kyocera Corporation’s directors submit a proposal
for election of a corporate auditor to a general
meeting of shareholders. The corporate auditors havethe right to state their opinions concerning election ofa corporate auditor at the general meeting ofshareholders.

99Corporate Governance Practices
Followed by NYSE-listed U.S. Companies

Corporate Governance Practices
Followed by Kyocera Corporation

4. An NYSE-listed U.S. company must have acompensation committee composed entirely of
independent directors.

The total amount of compensation for Kyocera
Corporation directors and the total amount ofcompensation for Kyocera Corporation corporate
auditors are proposed to, and voted upon by, ageneral meeting of shareholders. Once the proposal
for each of such total amount of compensation isapproved at the general meeting of shareholders, eachof the board of directors and board of corporate
auditors allocates the respective total amount amongits respective members.

5. An NYSE-listed U.S. company must generally obtainshareholder approval with respect to any equity
compensation plan.

Japanese companies, including Kyocera Corporation,
often issue “stock acquisition rights” (granting theholder thereof the right to acquire from the issuer
shares of its common stock at a prescribed price) forthe purpose of granting stock options to their officers,etc. Typically, when stock acquisition rights are used
for such purpose, they are issued under terms andconditions which are especially favorable to therecipients thereof, and because of that, such issuanceis subject to approval at a general meeting ofshareholders under the Corporation Act. Kyocera
Corporation obtains approval at a general meeting ofshareholders with respect to its issuance of stockacquisition rights for stock option purposes.

100PART III
Item 17.

Financial Statements

In lieu of responding to this item, we have responded to Item 18. of this annual report on Form 20-F.
Item 18.

Financial Statements

The information required by this item is set forth beginning on page F-1 of this annual report on Form 20-F.
Description

Page

(1)

Report of Independent Registered Public Accounting Firm related to the Consolidated
Financial Statements listed below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-1

(2)

Consolidated Balance Sheets at March 31, 2009 and 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-2 & F-3

(3)

Consolidated Statements of Income for the years ended March 31, 2008, 2009 and 2010 . . . . .

F-4

(4)

Consolidated Statements of Equity for the years ended March 31, 2008, 2009 and 2010 . . . . .

F-5 & F-6

(5)Consolidated Statements of Cash Flows for the years ended March 31, 2008, 2009 and2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-7

Notes to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-8 to F-64

(6)

Item 19.

Exhibits

Exhibit Number

Description

1.1

Articles of Incorporation (English translation)

1.2

Share Handling Regulations of the Registrant (English translation)

1.3

Regulations of the Board of Directors of the Registrant (English translation)

1.4

Regulations of the Board of Corporate Auditors of the Registrant (English translation)

2.1

Amended and Restated Deposit Agreement, dated as of June 29, 1998 among Kyocera
Corporation, Citibank N.A. as Depositary and all owners and holders from time to time ofAmerican Depositary Receipts, as amended by Amendment No.1 thereto, dated as of January 5,
1999 (incorporated by reference to the Registrant’s annual report on Form 20-F filed on
September 24, 2001), as further amended by Amendment No.2 thereto, dated as of December 21,
2007, including the form of American Depositary Receipt (incorporated by reference to Posteffective Amendment No.2 to the Registrant’s Registration Statement on Form F-6 field on
December 4, 2007 (file no. 333 - 07222))

8.1

List of Significant Subsidiaries (See “Organizational Structure” in Item 4.C. of the Registrant’s
annual report on Form 20-F)

11.1

Code of Ethics (incorporated by reference to the Registrant’s annual report on Form 20-F filedon July 5, 2007)

12.1

Certification of the principal executive officer of the Registrant required by Rule 13a-14(a)12.2

Certification of the principal financial officer of the Registrant required by Rule 13a-14(a)13.1

Certification of the principal executive officer of the Registrant required by Rule 13a-14(b) andSection 1350 of Chapter 63 of Title 18 of the United States Code

13.2

Certification of the principal financial officer of the Registrant required by Rule 13a-14(b) andSection 1350 of Chapter 63 of Title 18 of the United States Code

15.1

Consent of Kyoto Audit Corporation with respect to its report on the audit of the financial
statements included in the Registrant’s annual report on Form 20-F

Kyocera has not included as exhibits certain instruments with respect to its long-term debt, the amount of debt
authorized under each of which does not exceed 10% of its total assets, and it agrees to furnish a copy of any
such instrument to the Securities and Exchange Commission upon request.
101

Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders ofKyocera Corporation
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income,equity and cash flows present fairly, in all material respects, the financial position of Kyocera Corporation and its
subsidiaries (the “Company”) at March 31, 2009 and 2010, and the results of their operations and their cash
flows for each of the three years in the period ended March 31, 2010 in conformity with accounting principles
generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material
respects, effective internal control over financial reporting as of March 31, 2010, based on criteria established inInternal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). The Company’s management is responsible for these financial statements, for maintaining
effective internal control over financial reporting and for its assessment of the effectiveness of internal control
over financial reporting, included in Management’s Report on Internal Control over Financial Reporting
appearing under Item 15. Our responsibility is to express opinions on these financial statements and on the
Company’s internal control over financial reporting based on our integrated audits. We conducted our audits inaccordance with the standards of the Public Company Accounting Oversight Board (United States). Thosestandards require that we plan and perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement and whether effective internal control over financial reporting wasmaintained in all material respects. Our audits of the financial statements included examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall financial statement presentation.
Our audit of internal control over financial reporting included obtaining an understanding of internal control overfinancial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. Our audits also included performing suchother procedures as we considered necessary in the circumstances. We believe that our audits provide a
reasonable basis for our opinions.
As described in Note 1 to the consolidated financial statements, Kyocera Corporation retrospectively adopted the
FASB ASC 810, “Consolidation” on April 1,2009 and prepared the consolidated financial statements based uponthis accounting standard.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financial statements in accordancewith generally accepted accounting principles, and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (iii) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of thecompany’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with thepolicies or procedures may deteriorate.
/s/

Kyoto Audit Corporation

Kyoto, Japan
June 28, 2010
F-1

Consolidated Balance Sheets
Kyocera Corporation and Consolidated Subsidiaries
March 31, 2009 and 2010ASSETS

2009
2010(Yen in millions andshares in thousands)

Current assets:
Cash and cash equivalents (Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 269,247 ¥ 313,126
Investments in debt securities, current (Notes 3 and 4) . . . . . . . . . . . . . . . . . . . . . . .
10,093
11,644
Other short-term investments (Notes 3 and 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
192,050
200,413
Trade receivables (Notes 4 and 7):
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,75016,421
Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
158,754
190,903
Less allowances for doubtful accounts and sales returns (Note 6) . . . . . . .

172,504(4,669)207,324(3,971)Inventories (Note 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advance payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes (Note 17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets (Notes 4, 8 and 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

167,835
199,641
29,87935,187
48,384203,353
177,361
52,31640,87235,370Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

952,316

1,034,455

Investments and advances:
Investments in and advances to affiliates and unconsolidated subsidiaries(Note 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in debt and equity securities, long term (Notes 3 and 4) . . . . . . . . . . . .
Other long-term investments (Notes 3 and 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19,376
325,545
26,304

1,261
370,124
10,534

371,225

381,919

57,077
288,460
707,399
6,397

56,870290,516
689,608
8,842

Property, plant and equipment, at cost (Notes 10 and 16):
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill (Notes 2 and 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets (Notes 2, 9 and 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets (Notes 8 and 17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,059,333 1,045,836(793,279) (805,737)
266,054
63,22660,07760,904240,099
67,602
49,59375,049¥1,773,802 ¥1,848,717
The accompanying notes are an integral part of these statements.

F-2

Consolidated Balance Sheets—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
March 31, 2009 and 2010
LIABILITIES AND EQUITY

2009
2010
(Yen in millions andshares in thousands)

Current liabilities:
Short-term borrowings (Notes 4 and 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥Current portion of long-term debt (Notes 4 and 10) . . . . . . . . . . . . . . . . . . . . . . . .
Notes and accounts payable: (Note 4)
Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued liabilities:
Payroll and bonus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities (Notes 4, 13 and 17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11,000 ¥13,865

4,073
13,456

62,57943,45289,75063,77941,756
7,430
26,96730,912

47,131
15,60226,80028,721

Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

237,961

289,312Long-term debt (Notes 4 and 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued pension and severance liabilities (Note 11) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes (Note 17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-current liabilities (Note 17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28,53834,567
71,53918,10929,067
31,82875,61915,629Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

390,714441,455

Kyocera Corporation shareholders’ equity (Note 15):
Common stock:
Authorized 600,000 shares
Issued 191,309 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock in treasury, at cost:
7,781 shares at March 31, 2009 and
7,788 shares at March 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

115,703
163,151
1,150,050(54,673)

115,703
163,044
1,168,122(51,010)(50,568)(50,624)

Total Kyocera Corporation shareholders’ equity . . . . . . . . . . . . . . . . . .

1,323,663

1,345,235

Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

59,42562,027

Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,383,088

1,407,262¥1,773,802¥1,848,717

Commitments and contingencies (Note 14)

The accompanying notes are an integral part of these statements.

F-3

Consolidated Statements of Income
Kyocera Corporation and Consolidated Subsidiaries
For the three years ended March 31, 2010
2008
2009
2010
(Yen in millions and shares in thousands,
except per share amounts)

Net sales (Notes 7 and 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of sales (Note 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,290,436
883,763¥1,128,586
836,638¥1,073,805
787,970

Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

406,673

291,948285,835

Selling, general and administrative expenses (Notes 4, 7, 16 and 18) . . .

254,253

248,529

221,975

Profit from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (expenses):
Interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense (Note 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency transaction (losses) gains, net (Note 13) . . . . . . . .
Equity in earnings (losses) of affiliates and unconsolidated
subsidiaries (Notes 4, 7 and 13) . . . . . . . . . . . . . . . . . . . . . . . . . .
Losses on sales of securities, net (Note 3) . . . . . . . . . . . . . . . . . . . .
Losses on impairment of securities (Notes 3 and 4) . . . . . . . . . . . . .
Other, net (Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

152,420

43,41963,86018,444(1,480)(956)

15,441(1,206)(91)

13,202(2,926)
2,830

6,091
(622)
(248)
1,193

6,460
(2,840)(7,141)
1,940(18,297)
(93)
(217)
2,439

22,422

12,563(3,062)

Income before income taxes . . . . . . . . . . . . . . . . . . . . . . .

174,842

55,98260,798

Income taxes (Note 17):
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

61,662(1,427)18,927
3,852

24,445(9,080)60,235

22,77915,365

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to noncontrolling interests . . . . . . . . . . . . . . . . .

114,607(7,363)33,203(3,697)45,433(5,338)Net income attributable to shareholders of Kyocera
Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 107,244¥

29,506¥40,095¥¥157.27157.23¥218.47218.47

Earnings per share (Note 20):
Net income attributable to shareholders of Kyocera Corporation:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends declared per share:
Per share of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average number of shares of common stock outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The accompanying notes are an integral part of these statements.

F-4

566.58565.80120.00120.00120.00189,283
189,544

187,618
187,661

183,525
183,525

Consolidated Statements of Equity
Kyocera Corporation and Consolidated Subsidiaries
For the three years ended March 31, 2010
Additional
Common Paid-in
Stock
CapitalRetained
Earnings

Accumulated
Kyocera
Other
Corporation
Comprehensive Treasury Shareholders’ Noncontrolling
IncomeStock
EquityInterests

Equity(Note 15)
(Note 15)
(Yen in millions and shares in thousands)

Balance, March 31, 2007 (188,649) . . . . . ¥115,703 ¥162,363 ¥1,055,293
Cumulative effect of applying ASC
740 to opening balance(Note 17) . . . . . . . . . . . . . . . . . . . .
3,968
Comprehensive income:Net income for the year . . . . . . . . . .
107,244
Change in foreign currencytranslation adjustments—net oftaxes . . . . . . . . . . . . . . . . . . . . . . .
Change in pension adjustments—net
of taxes (Note 11) . . . . . . . . . . . . .
Change in unrealized losses on
securities—net of taxes(Note 3) . . . . . . . . . . . . . . . . . . . . .
Change in unrealized gains onderivative financial instruments—
net of taxes (Note 13) . . . . . . . . . .

¥ 203,056¥(21,855) ¥ 1,514,560¥66,923¥1,581,483

3,968

38

4,006

107,244

7,363

114,607(36,698)(36,698)(7,391)(44,089)(2,554)(2,554)373(2,181)(119,871)(119,871)(50)(119,921)

133

133

54

187

(51,746)349(51,397)

Total comprehensive income (loss)
for the year . . . . . . . . . . . . . . . . . .
Cash dividends paid to Kyocera
Corporation’s shareholders . . . . . .
Cash dividends paid tononcontrolling interests . . . . . . . . .
Purchase of treasury stock (18) . . . . .
Reissuance of treasury stock(823) . . . . . . . . . . . . . . . . . . . . . . .
Stock option plan of subsidiaries . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . .
Balance, March 31, 2008 (189,454) . . . . . 115,703
Application of ASC 715 to opening
balance (Note 11) . . . . . . . . . . . . .
Comprehensive income:Net income for the year . . . . . . . . . .
Change in foreign currencytranslation adjustments—net oftaxes . . . . . . . . . . . . . . . . . . . . . . .
Change in pension adjustments—net
of taxes (Note 11) . . . . . . . . . . . . .
Change in unrealized losses on
securities—net of taxes(Note 3) . . . . . . . . . . . . . . . . . . . . .
Change in unrealized losses onderivative financial instruments—
net of taxes (Note 13) . . . . . . . . . .

(22,684)(22,684)(1,915)

254
247

(211)

(211)

6,777

7,031
247

7,031
338
(484)

1,451,165

65,002

1,516,167

(940)

(26)

(966)

29,506

3,697

33,203(32,408)(32,408)(6,865)(39,273)(12,394)(12,394)(53)(12,447)(53,178)(53,178)(80)(53,258)

(341)

(341)

(113)

(454)

(68,815)(3,414)(72,229)

162,864 1,143,821

44,066

(522)

(418)

(15,289)

29,506(22,755)(22,755)(22,755)(1,517)

106
181

F-5

(1,915)
(211)

91
(484)

Total comprehensive loss for theyear . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends paid to Kyocera
Corporation’s stockholders . . . . . .
Cash dividends paid tononcontrolling interests . . . . . . . . .
Purchase of treasury stock (6,283) . .
Reissuance of treasury stock(357) . . . . . . . . . . . . . . . . . . . . . . .
Stock option plan of subsidiaries . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . .

(22,684)(38,219)(38,219)

2,940

3,046
181

72
(692)

(1,517)(38,219)
3,046
253
(692)

Consolidated Statements of Equity—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
For the three years ended March 31, 2010
Additional
Common Paid-in
Stock
CapitalRetained
Earnings

Accumulated
Kyocera
Other
Corporation
Comprehensive Treasury Shareholders’ Noncontrolling
IncomeStock
EquityInterests

Equity(Note 15)
(Note 15)
(Yen in millions and shares in thousands)

Balance, March 31, 2009 (183,528) . . . . . 115,703
Comprehensive income:Net income for the year . . . . . . . . . .
Change in foreign currencytranslation adjustments—net oftaxes . . . . . . . . . . . . . . . . . . . . . . .
Change in pension adjustments—net
of taxes (Note 11) . . . . . . . . . . . . .
Change in net unrealized gains on
securities—net of taxes(Note 3) . . . . . . . . . . . . . . . . . . . . .
Change in net unrealized gains onderivative financial instruments—
net of taxes (Note 13) . . . . . . . . . .

163,151 1,150,050(54,673)(50,568) 1,323,663

59,425

1,383,088

40,095

5,338

45,433(9,287)(9,287)(1,954)(11,241)

1,003

1,003

(97)

906

11,847

11,847112

11,959

63

63

11

74

43,721

3,410

47,13140,095

Total comprehensive income for theyear . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends paid to Kyocera
Corporation’s shareholders . . . . . .
Cash dividends paid tononcontrolling interests . . . . . . . . .
Purchase of treasury stock (8) . . . . . .
Reissuance of treasury stock (1) . . . .
Stock option plan of subsidiaries . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . .

(22,023)(22,023)(22,023)

37

(59)
4
132
(203)

(1,639)54
777(1,639)
(59)
4
186
574

¥(51,010)¥(50,624) ¥1,345,235¥62,027¥1,407,262

(59)
3

1
132
(240)

Balance, March 31, 2010 (183,521) . . . . . ¥115,703 ¥163,044 ¥1,168,122

The accompanying notes are an integral part of these statements.

F-6

Consolidated Statements of Cash Flows
Kyocera Corporation and Consolidated Subsidiaries
For the three years ended March 31, 2010
2008
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for doubtful accounts and loss on bad debts (Note 7) . . . . . . . . . . . . . . . . . . . . . . .
Write-down of inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes (Note 17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity in (earnings) losses of affiliates and unconsolidated subsidiaries (Notes 4 and 7) . . . .
Losses on sales of securities, net (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Losses on impairment of securities (Notes 3 and 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Gains) losses on sales of property, plant and equipment, and intangible assets, net(Note 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Losses on impairment of property, plant and equipment, and intangible assets(Notes 4 and 16) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Losses on impairment of goodwill (Notes 4 and 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in assets and liabilities:(Increase) decrease in receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Increase) decrease in inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in advance payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Increase) decrease in other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase (decrease) in notes and accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase (decrease) in accrued income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase (decrease) in other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase (decrease) in other non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2009
2010
(Yen in millions)¥ 114,607¥ 33,203¥ 45,433

87,045(181)
5,141(1,427)(6,091)622
248

97,577
671
8,719
3,852
(6,460)
2,840
7,141

72,8299,389
9,207(9,080)18,297
93
217

1,474

(8,314)(1,319)407—(1,588)

2,730
3,457
(2,074)

597
22
1,100

13,732(9,766)(9,684)(4,324)
5,177(8,817)
6,010
4,230
120

75,866643(8,811)
4,275(77,648)(21,024)(12,404)(737)(5,708)(38,823)
10,416(22,734)(174)
40,4006,152
4,420(5,724)(3,135)

Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

196,935

97,794

137,583

Cash flows from investing activities:
Payments for purchases of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for purchases of held-to-maturity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for purchases of other securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales and maturities of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from maturities of held-to-maturity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisitions of businesses, net of cash acquired (Notes 2 and 21) . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for purchases of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for purchases of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of property, plant and equipment, and intangible assets . . . . . . . . . . . . . . . . .
Acquisition of certificate of deposits and time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Withdrawal of certificate of deposits and time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pro rata distribution of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(20,785)(17,959)(3,080)92,02932,784(26,483)(71,827)(6,442)877(372,798)
423,845(12,818)(1,285)(28,606)(46,187)(1,192)
22,02633,756(47,512)(77,267)(7,924)
12,893(290,536)
230,645—(1,540)(27,613)(59,841)(4,207)21,48338,649(4,715)(36,491)(3,876)
3,065(356,472)
377,958—
2,742

Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . .

16,058(201,444)(49,318)

Cash flows from financing activities:
Increase (decrease) in short-term debt, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reissuance of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7,202)
5,000(6,647)(24,566)
(211)
7,031
(2,640)

2,536
1,869
(5,588)(24,248)(38,219)
3,045(2,325)(6,510)14,707(20,236)(23,537)(59)
4(2,416)(38,047)

Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(29,235)(62,930)

Effect of exchange rate changes on cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(18,380)(11,759)(6,339)Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

165,378
282,208(178,339)
447,586

43,879269,247

Cash and cash equivalents at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 447,586¥ 269,247¥ 313,126

The accompanying notes are an integral part of these statements.

F-7

Notes to The Consolidated Financial Statements
Kyocera Corporation and Consolidated Subsidiaries
1. ACCOUNTING POLICIESFinancial Statements Presentation:
The accompanying consolidated financial statements of Kyocera Corporation and its subsidiaries have been
prepared in conformity with accounting principles generally accepted in the United States of America.
Basis of Consolidation and Accounting for Investments in Affiliated Companies:
The consolidated financial statements include the accounts of Kyocera Corporation, its majority-owned
subsidiaries and a variable interest entity for which Kyocera Corporation is the primary beneficiary under the
Financial Accounting Standard Board (FASB)’s Accounting Standards Codification (ASC) 810, “Consolidation.”
All significant inter-company transactions and accounts are eliminated. Investments in 20% to 50% owned
companies are accounted for under the equity method, whereby Kyocera includes in net income its equity in theearnings or losses from these companies.
The consolidated variable interest entity for which Kyocera Corporation is the primary beneficiary does not havea material effect on Kyocera’s financial position and results of operations.
Revenue Recognition:
Kyocera generates revenue principally through the sale of industrial components and telecommunications andinformation equipment. Kyocera’s operations consist of the following seven reporting segments: (1)Fine Ceramic
Parts Group, (2)Semiconductor Parts Group, (3)Applied Ceramic Products Group, (4)Electronic Device Group,(5)Telecommunications Equipment Group, (6)Information Equipment Group and (7)Others.
Kyocera recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title
and risk of loss have been transferred to the customer or services have been rendered, the sales price is fixed ordeterminable and collectability is reasonably assured in accordance with ASC 605, “Revenue Recognition.” Sales
to customers in each of the above segments are based on the specific terms and conditions contained in basic
contracts with customers and firm customer orders which detail the price, quantity and timing of the transfer ofownership (such as risk of loss and title) of the products.
For most customer orders, the transfer of ownership and revenue recognition occurs at the time of shipment of
the products to the customer. For the remainder of customer orders, the transfer of ownership and revenue
recognition occurs at the time of receipt of the products by the customer, with the exception of sales of solar
power generating systems in the Applied Ceramic Products Group and information equipment in the Information
Equipment Group for which sales are made to end users together with installation services. The transfer ofownership and revenue recognition in these cases occur at the completion of installation and customer
acceptance, as we have no further obligations under the contracts and all revenue recognition criteria under
ASC 605 are met. When Kyocera provides a combination of products and services, the arrangement is evaluatedunder ASC 605-25, “Multiple-Element Arrangements.”
In addition, in the Information Equipment Group, Kyocera may enter into sales contracts and lease agreements
ranging from one to seven years directly with end users. Sales contracts and lease agreements may include
installation service and have customer acceptance clauses. For sales and sales-type lease agreements, revenue isrecognized at the completion of installation and customer acceptance which usually occurs on the same business
day as delivery. For sales-type leases, unearned income (which represents interest) is amortized over the leaseterm using the effective interest method in accordance with ASC 840, “Leases.”

F-8

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
For all sales in the above segments, product returns are only accepted if the products are determined to be
defective. There are no price protections, stock rotation or returns provisions, except for certain programs in theElectronic Device Group as noted below.
Sales Incentives
In the Electronic Device Group, sales to independent electronic component distributors may be subject to various
sale programs for which a provision for incentive programs is recorded as a reduction of revenue at the time ofsale, as further described below in accordance with ASC 605-50, “Customer Payments and Incentives” andASC 605-15, “Products.”(a) Distributor Stock Rotation Program
Stock rotation is a program whereby distributors are allowed to return for credit, qualified inventory, semiannually, equal to a certain percentage of the previous six months net sales. In accordance with ASC 605-15, anestimated sales allowance for stock rotation is recorded at the time of sale based on a percentage of distributor
sales using historical trends, current pricing and volume information, other market specific information and input
from sales, marketing and other key management. We believe that these procedures enable us to make reliable
estimates of future returns under the stock rotation program. Our actual results approximate our estimates. Whenthe products are returned and verified, the distributor is given credit against their accounts receivable.
(b) Distributor Ship-from-Stock and Debit Program
Ship-from-Stock and Debit (ship and debit) is a program designed to assist distributors in meeting competitive
prices in the marketplace on sales to their end customers. Ship and debit programs require a request from the
distributor for a pricing adjustment for a specific part for a sale to the distributor’s end customer from the
distributor’s stock. Ship and debit authorizations may cover current and future distributor activity for a specificpart for a sale to their customer. In accordance with ASC 605, at the time we record the sales to the distributor,
an allowance for the estimated future distributor activity related to such sales is provided since it is probable thatsuch sales to distributors will result in ship and debit activity. In accordance with ASC 605-15, Kyocera records
an estimated sales allowance based on sales during the period, credits issued to distributors, distributor inventory
levels, historical trends, market conditions, pricing trends noted in direct sales activity with original equipment
manufacturers and other customers, and input from sales, marketing and other key management. These
procedures require the exercise of significant judgments. We believe that these procedures enable us to makereliable estimates of future credits under the ship and debit program. Our actual results approximate ourestimates.
Sales Rebates
In the case of sales to distributors in the Applied Ceramic Products Group and Information Equipment Group,
Kyocera provides cash rebates when predetermined sales targets are achieved during a certain period. Provisions
for sales rebates are recorded as a reduction of revenue at the time of revenue recognition based on the best
estimate of forecasted sales to each distributor in accordance with ASC 605-50.
Sales Returns
Kyocera records an estimated sales return allowance at the time of sales based on historical return experience.

F-9

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Products Warranty
For after-service costs to be paid during warranty periods, Kyocera accrues a product warranty liability for
claims under warranties relating to the products that have been sold. Kyocera records an estimated productwarranty liability based on its historical repair experience.
In the Information Equipment Group, Kyocera provides a standard one year manufacturer’s warranty on its
products. For sales directly to end users, Kyocera offers extended warranty plans that may be purchased and thatare renewable in one year incremental periods at the end of the warranty term. Service revenues are recognizedover the term of the related service maintenance contracts in accordance with ASC 605-20, “Services.”
Cash and Cash Equivalents:
Kyocera considers cash, bank deposits and all highly liquid investments purchased with an original maturity of
three months or less to be cash and cash equivalents.
During the preparation of the consolidated financial statements for the year ended March 31, 2010, AVX
Corporation, a United States subsidiary, determined that certain time deposits with original maturities of greaterthan three months when purchased had been misclassified as cash and cash equivalents in prior years’
consolidated financial statements. AVX Corporation has determined the impact of this misclassification to beimmaterial to prior Consolidated Balance Sheets and Statements of Cash Flows. There was no impact on theConsolidated Statements of Income. AVX Corporation corrected the classification of these time deposits byincreasing short term investments and decreasing cash and cash equivalents by ¥11,241 million in theConsolidated Balance Sheets at March 31, 2010. The Consolidated Statement of Cash Flows for the year ended
March 31, 2010 includes an additional ¥10,999 million of acquisition of time deposits, which represents the
cumulative net amount of prior year acquisition and withdrawal of time deposits not previously reflected in thestatement (¥2,442 million, ¥7,219 million and ¥1,338 million for the years ended March 31, 2009 and 2008 andprior to April 1, 2007, respectively).
Kyocera has also determined the impact of the above AVX’s misclassification to be immaterial to Kyocera’s
prior years’ Consolidated Balance Sheets and Statements of Cash Flows. There was no impact on Kyocera’s
Consolidated Statements of Income.
Kyocera’s Consolidated Balance Sheets at March 31, 2010 and Consolidated Statement of Cash Flows for theyear ended March 31, 2010 also include the above corrections made at AVX Corporation.
Translation of Foreign Currencies:
Assets and liabilities of consolidated foreign subsidiaries and affiliates accounted for by the equity method aretranslated into Japanese yen at the exchange rates in effect on the respective balance sheet dates. Operating
accounts are translated at the average rates of exchange for the respective years. Translation adjustments result
from the process of translating foreign currency denominated financial statements into Japanese yen. Thesetranslation adjustments, which are not included in the determination of net income, are included in othercomprehensive income.
Assets and liabilities denominated in foreign currencies are translated at the exchange rates in effect at therespective balance sheet dates, and resulting transaction gains or losses are included in the determination of net
income.

F-10

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Allowances for Doubtful Accounts:
Kyocera maintains allowances for doubtful accounts related to trade notes receivables, trade accounts receivables
and finance receivables for estimated losses resulting from customers’ inability to make timely payments,
including interest on finance receivables. Kyocera’s estimates are based on various factors, including the lengthof past due payments, historical experience and current business environments. In circumstances where it isaware of a specific customer’s inability to meet its financial obligations, a specific allowance against theseamounts is provided considering the fair value of assets pledged by the customer as collateral. The amounts ofallowances for doubtful accounts included in investments in and advances to affiliates and unconsolidated
subsidiaries at March 31, 2010 was ¥1 million. The amounts of allowances for doubtful accounts included
in other long-term investments at March 31, 2010 was ¥253 million. The amounts of allowances for doubtful
accounts included in other assets at March 31, 2009 and 2010 were ¥2,478 million and ¥2,001 million,
respectively.
Inventories:
Inventories are stated at the lower of cost or market. For finished goods and work in process, cost is determinedby the average method for approximately 72% and 70% at March 31, 2009 and 2010, respectively, and by othermethods including the first-in, first-out method for the others. For raw materials and supplies, cost is determinedby the first-in, first-out method for approximately 49% and 57% at March 31, 2009 and at 2010, respectively, andby other methods including the average method for the others. Kyocera recognizes estimated write-down of
inventories for excess, slow-moving and obsolete inventories.
Securities:
Debt and equity securities are accounted for under ASC 320, “Investments—Debt and Equity Securities.”
Securities classified as available-for-sale securities are recorded at fair value, with unrealized gains and losses
excluded from income and reported in other comprehensive income, net of taxes. Securities classified as
held-to-maturity securities are recorded at amortized cost. Non-marketable equity securities are accounted by thecost method.
Kyocera evaluates whether the declines in fair value of debt and equity securities are other-than-temporary.
Other-than-temporary declines in fair value are recorded as a realized loss with a new cost basis. This evaluation
is based mainly on the duration and the extent to which the fair value is less than cost, and the anticipated
recoverability in fair value.
Kyocera also reviews its investments accounted by the equity method for impairment quarterly. Factors
considered in assessing whether an indication of other-than-temporary impairment exists include the achievementof business plan objectives and milestones including cash flow projections and the results of planned financing
activities, the financial condition and prospects of each investee company, the fair value of the ownership interest
relative to the carrying amount of the investment, the period of time during which the fair value of the ownershipinterest has been below the carrying amount of the investment and other relevant factors. Impairment to berecognized is measured based on the amount by which the carrying amount of the investment exceeds the fairvalue of the investment. Fair value is determined through the use of various methodologies such as discounted
cash flows, valuation of recent financings and comparable valuations of similar companies.

F-11

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Property, Plant and Equipment and Depreciation:
Kyocera provides for depreciation of buildings, machinery and equipment over their estimated useful lives
primarily on the declining balance method. The principal estimated useful lives used for computing depreciation
are as follows:
Buildings
Machinery and equipment

2 to 50 years
2 to 20 years

Major renewals and betterments are capitalized as tangible assets and they are depreciated based on estimateduseful lives. The costs of minor renewals, maintenance and repairs are charged to expense in the year incurred.
When assets are sold or otherwise disposed of, the profits or losses thereon, computed on the basis of thedifference between depreciated costs and proceeds, are credited or charged to income in the year of disposal, andcosts and accumulated depreciation are removed from accounts.
Effective April 1, 2007, Kyocera Corporation and its domestic subsidiaries, as a result of taking the businesssituation into consideration, has adopted “the 250 percent declining-balance depreciation method” for buildings,
machinery and equipment. Estimated useful lives and estimated salvage values were also changed in conjunction
with this change. Under the new provisions of ASC 250, “Accounting Changes and Error Corrections,” a change
in depreciation method is treated as a change in estimate. The effect of the change in depreciation method has
been reflected on a prospective basis beginning April 1, 2007, and prior period results were not restated.
Kyocera Corporation and its domestic subsidiaries believe that the change from the declining-balance
depreciation method to the 250 percent declining-balance depreciation method better reflects future businesssituation and provides a better matching of costs and revenues over the assets’ estimated useful lives. The change
in depreciation methods caused a decrease in net income by ¥7,736 million, basic earnings per share of net
income and diluted earnings per share of net income by ¥40.87 and ¥40.81 for the year ended March 31, 2008,
respectively.
Goodwill and Other Intangible Assets:
Goodwill and other intangible assets are accounted for under ASC 350, “Intangibles—Goodwill and Other.”
Goodwill and intangible assets with indefinite useful live, rather than being amortized, are tested for impairment
at least annually, and also following any events and changes in circumstances that might lead to impairment.
Intangible assets with definite useful lives are amortized straight line over their respective estimated useful lives
to their estimated residual values, and reviewed for impairment whenever events or changes in circumstancesindicate that their carrying amount may not be recoverable.
The principal estimated useful lives for intangible assets are as follows:
SoftwarePatent rights
Customer relationships

2 to 10 years
2 to 10 years
3 to 18 years

Impairment of Long-Lived Assets:
Impairment of long-lived assets and intangible assets are accounted for under ASC 360, “Property, Plant, andEquipment.” Kyocera reviews its long-lived assets and intangible assets with definite useful lives for impairment
whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.
F-12

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Long-lived assets and intangible assets with definite useful lives are considered to be impaired when the expectedundiscounted cash flow from the asset group is less than its carrying value. A loss on impairment is recognizedbased on the amount by which the carrying value exceeds the fair value of the long-lived assets and intangible
assets with definite useful lives.
Derivative Financial Instruments:
Kyocera utilizes derivative financial instruments to manage its exposure resulting from fluctuations of foreign
currencies and interest rates. These derivative financial instruments include foreign currency forward contracts,
interest rate swaps, interest rate caps and currency swaps. Kyocera does not hold or issue such derivative
financial instruments for trading purposes.
Derivatives are accounted for under ASC 815, “Derivatives and Hedging.” All derivatives are recorded as either
assets or liabilities on the balance sheet and measured at fair value. Changes in the fair value of derivatives arecharged in current earnings. However cash flow hedges may qualify for hedge accounting, if the hedging
relationship is expected to be highly effective in achieving offsetting cash flows of hedging instruments andhedged items. Under hedge accounting, changes in the fair value of the effective portion of these hedge
derivatives are deferred in accumulated other comprehensive income and charged to earnings when theunderlying transaction being hedged occurs.
Kyocera designates certain foreign currency forward contracts, interest rate swaps and interest rate caps as cash
flow hedges. Most of Kyocera’s foreign currency forward contracts are entered into as hedges of existing foreign
currency denominated assets and liabilities. Accordingly, Kyocera records changes in fair value of these foreign
currency forward contracts currently in earnings. It is expected that such changes will be offset by corresponding
gains or losses on the underlying assets and liabilities.
Kyocera formally documents all relationships between hedging instruments and hedged items, as well as its risk
management objective and strategy for undertaking various hedge transactions. This process includes allderivatives designated as cash flow hedge are linked to specific assets and liabilities on the balance sheet or
forecasted transactions. Kyocera also formally assesses, both at the hedge’s inception and on an ongoing basis,
whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows ofhedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to bea highly effective hedge, Kyocera discontinues hedge accounting prospectively. When hedge accounting is
discontinued, and the hedged transaction is no longer expected to occur, the derivatives will continue to be
carried on the balance sheet at its fair value, with deferred unrealized gains or losses charged immediately incurrent earnings.
Stock-Based Compensation:
Costs resulting from share-based payment transactions are accounted for under ASC 718, “Compensation—Stock
Compensation,” Kyocera recognizes such costs in the financial statements by fair value based measurement
method. Under the modified prospective method, Kyocera recognized compensation cost which includes:(a) compensation cost for all stock options granted prior to, but not yet vested as of April 1, 2006, and(b) compensation cost for all stock options granted or modified subsequent to April 1, 2006.
Net Income Attributable to Shareholders of Kyocera Corporation and Cash Dividends per Share:
Earnings per share is accounted for under ASC 260, “Earnings Per Share.” Basic earnings per share attributable toshareholders of Kyocera Corporation was computed based on the average number of shares of common stock
F-13

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
outstanding during each period, and diluted earnings per share attributable to shareholders of Kyocera Corporation
was computed based on the diluted average number of shares of stock outstanding during each period.
Cash dividends per share are those declared with respect to the earnings for the respective periods for which
dividends are proposed by the Board of Directors. Dividends are charged to retained earnings in the year inwhich they are paid.
Research and Development Expenses and Advertising Expenses:
Research and development expenses and advertising expenses are charged to operations as incurred.
Use of Estimates:
The preparation of the consolidated financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions that affect theamounts reported in the consolidated financial statements and accompanying notes. However, actual results
could differ from those estimates and assumptions.
Recently Adopted Accounting Standards:
Kyocera adopted the ASC 105, “Generally Accepted Accounting Principles” (former Statement of Financial
Accounting Standards (SFAS) No. 168, “The FASB Accounting Standards Codification and Hierarchy ofGenerally Accepted Accounting Principles—a replacement of FASB Statement No. 162”) on July 1, 2009. Thisaccounting standard compiles all generally accepted accounting principles in the U.S. and establishes“Accounting Standards Codification” as the single official source of authoritative generally accepted accounting
standards. The adoption of this accounting standard had no impact on Kyocera’s consolidated results ofoperations, financial position and cash flows.
Kyocera adopted the ASC 805, “Business Combinations” (former SFAS No. 141 (revised 2007), “Business
Combinations”) on April 1, 2009, which requires assets, liabilities and noncontrolling interests be measured atfair value. Under this accounting standard, transaction and restructuring costs are required to be generally
expensed, as well as contingent consideration and in-process research and development be recorded at fair valueon acquisition date as a part of fair value of acquired business. Any tax adjustment made after the measurement
period impacts income tax expenses. This accounting standard also requires companies to recognize an asset
acquired or a liability assumed in a business combination that arises from a contingency at fair value, at theacquisition date, if the acquisition-date fair value of that asset or liability can be determined during themeasurement period. The adoption of this accounting standard did not have a material impact on Kyocera’s
consolidated results of operations, financial position and cash flows.
Kyocera adopted the ASC 810, “Consolidation” (former SFAS No. 160, “Noncontrolling Interests inConsolidated Financial Statements—an Amendment of Accounting Research Bulletin No. 51”) on April 1, 2009.
This accounting standard requires that a noncontrolling interest in a subsidiary is an ownership interest in the
consolidated entity that should be reported as equity in the consolidated financial statements, and requires thatchanges in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary
shall be accounted for as equity transactions. Upon the adoption of this accounting standard, noncontrollinginterests, which were previously referred to as minority interests and classified between total liabilities andshareholders’equity on the consolidated balance sheets, are now included as a separate component of total equity.
The presentation of consolidated statements of income and cash flows has also been changed. In addition, in
accordance with a requirement of this accounting standard, certain reclassification of previously reported
F-14

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
amounts have been made to the consolidated balance sheet at March 31, 2009, the consolidated statements ofincome and the consolidated statements of cash flows for the year ended March 31, 2008 and 2009. The adoptionof this accounting standard did not have a material impact on Kyocera’s consolidated results of operations,financial position and cash flows.
Kyocera adopted (a) the ASC 820, “Fair Value Measurements and Disclosures” (former FASB Staff Positions(FSP) No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability
Have Significantly Decreased and Identifying Transactions That Are Not Orderly”) (b) the ASC 320,
“Investments-Debt and Equity Securities” (former FSP No. 115-2 and former FSP No. 124-2, “Recognition and
Presentation of Other-Than-Temporary Impairments”) (c) the ASC 825, “Financial Instruments” (former FSP
No. 107-1 and former Accounting Principles Bulletins (APB) No. 28-1, “Interim Disclosures about Fair Value of
Financial Instruments”) on April 1, 2009.
(a) The ASC 820 (former FSP No. 157-4) provides guidance on how to estimate the fair value of assets or
liabilities when the volume and level of activity for asset or liability have significantly decreased andon identifying circumstances that indicate a transaction is not orderly. In addition, this accounting
standard requires disclosure in interim and annual periods of the inputs and valuation techniques used
to estimate fair value and a discussion of changes in valuation techniques.
(b) The ASC 320 (former FSP No. 115-2 and former FSP No. 124-2) amends the other-than-temporary
impairment guidance for debt securities and presentation and disclosure requirement of other-thantemporary impairments of debt and equity securities.
(c) The ASC 825 (former FSP No. 107-1 and former APB No. 28-1) requires interim disclosures regarding
the fair values of financial instruments that are within the scope of the ASC 825. Additionally, thisaccounting standard requires disclosure of the methods and significant assumptions used to estimate
the fair value of financial instruments on an interim basis as well as changes of the methods andsignificant assumptions from previous periods.
The adoption of these three ASCs did not have a material impact on Kyocera’s consolidated results of operations,financial position and cash flows.
Kyocera adopted the ASC 855, “Subsequent Events” (former SFAS No. 165, “Subsequent Events”) on April 1,
2009. The purpose of this accounting standard is to establish general standards of accounting for and disclosuresof events that occur after the balance sheet date but before financial statements are issued or are available to beissued. In addition, in February 2010, the FASB issued Accounting Standards Update (ASU) No. 2010-09,“Subsequent Events”, and Kyocera adopted this accounting standard on the date of issuance. This accounting
standard provides amendment to ASC 855 that removes the requirements for an SEC filer to disclose the datethrough which subsequent events have been evaluated. The adoption of this accounting standard did not havea material impact on Kyocera’s consolidated results of operations, financial position and cash flows.
Kyocera adopted the ASU No. 2009-05, “Measuring Liabilities at Fair Value”on October 1, 2009. Thisaccounting standard provides amendments to provisions related to the fair value measurement of liabilities asfollows:(a) In circumstances in which a quoted price in an active market for the identical liability is not available, areporting entity is required to measure fair value using one or more of the following techniques:‰ The quoted price of the identical liability when traded as an asset.
‰ Quoted prices for similar liabilities or similar liabilities when traded as assets.
‰ Another valuation technique that is consistent with principles of the Topics, such as the income
approach or a market approach.
F-15

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries(b) When estimating the fair value of a liability, a reporting entity is not required to include a separate
input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer ofthe liability.
(c) Both a quoted price in an active market for the identical liability at the measurement date and thequoted price for the identical liability when traded as an asset in an active market when no adjustments
to the quoted price of the asset are required are Level 1 fair value measurements.
The adoption of this accounting standard did not have a material impact on Kyocera’s consolidated results ofoperations, financial position and cash flows. With respect to the technical terms related to the fair value
measurement in the above description, please refer to the Note 4 to the Consolidated Financial Statement.
Kyocera adopted ASC 715, “Compensation—Retirement Benefits” (former FSP No. 132(R)-1, “Employers’
Disclosures about Postretirement Benefit Plan Assets”) in the year ended March 31, 2010. This accounting
standard provides guidance on employers’ disclosures of a defined benefit pension or other postretirement plan.
Specifically, employers are required to disclose information about fair value measurements of plan assets. As thisaccounting standard is a provision for disclosure, the adoption of this accounting standard had no impact on
Kyocera’s consolidated results of operations, financial position and cash flows.
In January 2010, the FASB issued ASU No. 2010-06, “Improving Disclosures about Fair Value Measurements.”
This accounting standard provides amendments to ASC 820-10 that require new disclosures as follows:(a) Transfer in and out of Level 1 and 2. A reporting entity should disclose separately the amounts ofsignificant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasonsfor the transfers.
(b) Activity in Level 3 fair value measurements. In the reconciliation for fair value measurements using
significant unobservable inputs (Level 3), a reporting entity should present separately information
about purchases, sales, issuance, and settlements.
Kyocera adopted the new disclosures and clarifications of existing disclosures in the year ended March 31, 2010,
except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in
Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15,
2010, and for interim periods within those fiscal years. As this accounting standard is a provision for disclosure,the adoption of this accounting standard had no impact on Kyocera’s consolidated results of operations, financial
position and cash flows. With respect to the technical terms related to the fair value measurement in the above
description, please refer to the Note 4 to the Consolidated Financial Statement.
Recently Issued Accounting Standards:
In September 2009, the FASB issued ASU No. 2009-13, “Multiple-Deliverable Revenue Arrangements-a
consensus of the FASB Emerging Issues Task Force” which addressed the accounting for multiple-deliverable
arrangements to enable vender to account for products or services separately rather than as a combined unit. Thisaccounting standard addresses how to separate deliverables and how to measure and allocate arrangement
consideration to one or more units of accounting. This accounting standard will be effective prospectively forrevenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010.
Kyocera is currently evaluating the impact that this accounting standard will have on Kyocera’s consolidated
results of operations, financial position and cash flows.

F-16

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
In December 2009, the FASB issued ASU No. 2009-16, “Accounting for Transfers of Financial Assets.” Thisaccounting standard codified former SFAS No. 166, “Accounting for Transfers of Financial Assets-an
amendment of FASB Statement No. 140” issued in June 2009 in the ASC 860. This accounting standard removes
the concept of a qualifying special purpose entity from former SFAS No. 140 and removes the exception fromapplying former FASB Interpretation No. 46 (revised December 2003), Consolidation of Variable Interest
Entities, to qualifying special-purpose entities and establishes specific conditions for reporting a transfer of a
portion of a financial asset as a sale. This accounting standard must be applied as of the beginning of eachreporting entity’s first annual reporting period that begins after November 15, 2009, for interim periods withinthat first annual reporting period and for interim and annual reporting periods thereafter. The adoption of thisaccounting standard is expected to have no material impact on Kyocera’s consolidated results of operations,financial position and cash flows.
In December 2009, the FASB issued ASU No. 2009-17, “Improvements to Financial Reporting by Enterprises
Involved with Variable Interest Entities.” This accounting standard codified former SFAS No. 167, “Amendments
to FASB Interpretation No. 46(R)” issued in June 2009 in the ASC 810. This accounting standard requires anenterprise to perform an analysis to identify the primary beneficiary of a variable interest entity and also requires
ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest entity. Thisaccounting standard shall be effective as of the beginning of each reporting entity’s first annual reporting period thatbegins after November 15, 2009, for interim periods within that first annual reporting period, and for interim andannual reporting periods thereafter. The adoption of this accounting standard is expected to have no material impact
on Kyocera’s consolidated results of operations, financial position and cash flows.
Reclassifications:
Captions presented in the Consolidated Balance Sheets at March 31, 2009, the Consolidated Statements ofIncome for the year ended March 31, 2008 and 2009, the Consolidated Statement of Cash Flows for the year
ended March 31, 2008 and 2009 and their corresponding footnotes have been reclassified to conform to thecurrent presentation.
2. BUSINESS COMBINATIONSBusiness combinations in the year ended March 31, 2010
On July 31, 2009, Kyocera Mita Corporation (Kyocera Mita), a subsidiary of Kyocera, acquired 100% of thecommon stock of two distributors of information equipment in Korea and made them consolidated subsidiaries in
the name of Kyocera Mita Korea Co., Ltd and Kyocera Mita Korea Document Solution Co., Ltd.
On October 1, 2009, Kyocera Mita Canada, Ltd., a subsidiary of Kyocera Mita, acquired operations and related
assets of Gold Business Machines Ltd. and Gold Business Machines Brandon Ltd. to expand its sales channels in
Canada.
On December 1, 2009, Kyocera Mita America, Inc., a subsidiary of Kyocera Mita, acquired 100% of
the common stock of Allister Business Systems, Inc. and made it a consolidated subsidiary to expand its sales
channels in the United States of America.
The results of operations of these acquired businesses were included into Kyocera’s consolidated financial
statements since the acquisition dates and for segment reporting are reported in the Information Equipment Group.
On August 3, 2009, Kyocera Communication System Co., Ltd. acquired 67% of the common stock of Net it
works, Inc., a Japanese telecommunication engineering company and made it a consolidated subsidiary.
F-17Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
The result of operation of this acquired business was included into Kyocera’s consolidated financial statements
since the acquisition date and for segment reporting is reported in the Others.
The above acquisitions did not have material impacts on Kyocera’s consolidated results of operations, financial
position and cash flows.
Business combinations of which the allocation of fair value was completed in the year ended March 31,
2010
On November 18, 2008, Kyocera Mita announced that it submitted a takeover offer to the shareholders of TA
Triumph-Adler AG (TAAG), a German based sales company of information equipment, which was accounted forby the equity method, with the aim of expanding mutual businesses. On December 15, 2008, this takeover offer
was approved by German Federal Supervisory Authority. During December 16, 2008 to February 2, 2009, a totalof 14,184,810 shares of TAAG were tendered, and Kyocera Mita acquired them by February 10, 2009. In
addition, from December 8, 2008 to March 31, 2009, Kyocera Mita acquired 21,372,713 shares of TAAG
directly from its shareholders or through the stock market. The total amount of the acquisition cost was¥8,234 million, which was funded mainly by cash in hand.
As a result of these acquisitions of shares, together with shares which Kyocera Mita had already secured before
the announcement of the takeover offer on November 18, 2008, Kyocera Mita secured a total shareholding of
94.19% in TAAG as of March 31, 2009. As the European Commission approved the purchase of shares in TAAG
by Kyocera Mita on January 21, 2009, TAAG was consolidated by Kyocera from that date.
Kyocera Mita holds 95.43% of TAAG’s issued shares as of March 31, 2010.
Kyocera has used the purchase method of accounting to record assets acquired and liabilities assumed inaccordance with SFAS No. 141, “Business Combinations.”
The allocation of fair value to the acquired assets and assumed liabilities in this business combination wascompleted during the year ended March 31, 2010. The related assets and liabilities were recorded based upon
their estimated fair values at the date of acquisition with the excess being allocated to goodwill as shown in thefollowing table.
January 21, 2009
(Yen in millions)

Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥27,543
17,33523,337

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

68,215Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25,501
41,004

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

66,505

Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

Total identified assets, liabilities and noncontrolling interests . . . . . . . . . . . . . . . . . . . .

1,707

Purchase price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in TA Triumph-Adler AG before the consolidation as a subsidiary . . . . . . . . . .

8,234
4,198

Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥10,725

F-18

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Intangible assets that Kyocera recorded due to this acquisition are summarized as follows:
March 31,20092010
Gross Carrying Accumulated Gross Carrying
Accumulated
AmountAmortization
AmountAmortization(Yen in millions)Intangible assets subject to amortization:
Customer relationships . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥15,221
411

¥372
46

¥ 9,653402¥1,253249

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥15,632¥418¥10,055¥1,502

March 31,20092010
Gross Carrying Gross Carrying
AmountAmount(Yen in millions)Intangible assets not subject to amortization:
Trademark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 5,264¥6,880Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 5,264¥6,880Decreases in gross carrying amounts of intangible assets subject to amortization and an increase in gross carrying
amount of intangible asset not subject to amortization were due to the completion of the allocation of fair value
to the acquired assets and assumed liabilities in the year ended March 31, 2010 and translation adjustments.
The estimated aggregate amortization expenses for intangible assets that Kyocera recorded due to this acquisition
for the next five years are as follows:
Years ending March 31,(Yen in millions)2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,155
1,002
1,002
1,002
1,002

The pro forma results for the years ended March 31, 2008 and 2009 are not presented as the amounts wereimmaterial.
Business combinations in the year ended March 31, 2009
On April 1, 2008, Kyocera acquired the mobile phone handsets related business and its related assets andliabilities from SANYO Electric Co., Ltd. (SANYO) through corporate split. The results of operations of theacquired business was included into Kyocera’s consolidated financial statement since the acquisition date and forthe segment reporting, it is reported in the Telecommunications Equipment Group. The acquired businessconsists of the development, manufacturing and sales of mobile phones, PHS Mobile Phone Handsets andwireless communication systems in Japan and overseas. The acquired business has sales offices and research anddevelopment facilities in Japan, sales locations in North America and manufacturing facilities in Malaysia.
Kyocera pursues synergies between distribution channels in North America, development activities and design
technologies of the acquired business and its existing management resources.
F-19

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Kyocera has used the purchase method of accounting to record assets acquired and liabilities assumed inaccordance with SFAS No. 141, “Business Combinations.”
The related assets and liabilities were recorded based upon their estimated fair values at the date of acquisition
with the excess being allocated to goodwill as shown in the following table.
Current liabilities in the following table include an amount of payables as of the purchase date that were notindividually stated within the purchase agreement which were collectively assumed from SANYO. As such thesepayables have been included in the allocation of purchase price.
April 1, 2008
(Yen in millions)

Cash and deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥11,037
17,617
12,731
7,564

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48,949Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16,601
13,783
1,493

Total non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31,877

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

80,826

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

41,877
6,176

Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48,053

Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,538

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

51,591

Total identified assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29,235Purchase price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

47,691

Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥18,456

In addition, in the total amount of goodwill ¥18,456 million, ¥15,490 million is expected to be deductible for tax
purposes.
Intangible assets that Kyocera recorded due to this acquisition are summarized as follows:
March 31,20092010
Gross Carrying Accumulated Gross Carrying Accumulated
AmountAmortization
AmountAmortization(Yen in millions)Intangible assets subject to amortization:
Customer relationships . . . . . . . . . . . . . . . . . . . .
Trademark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Patent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 8,796
2,224
1,620

¥1,759445
203¥ 8,796
2,224
1,620

¥3,518890
405

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥12,640¥2,407¥12,640¥4,813F-20

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
The estimated aggregate amortization expenses for intangible assets that Kyocera recorded due to this acquisition
for the next five years are as follows:
Years ending March 31,(Yen in millions)2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,407
2,407
2,407
203
203

Pro forma information:
The followings are the pro forma combined results of operations of Kyocera for the year ended March 31, 2008,
as if above business combination had taken place at the beginning of the period.
The pro forma net income includes ¥1,839 million (net of tax effect) for the amortization of acquired intangibles.
The pro forma combined results of operations are presented for comparative purposes only and are notnecessarily indicative of the results of operations that may occur in the future or that would have occurred had
the acquisitions been in effect on the date indicated.
Year ended March 31, 2008
(Yen in millions except
per share amounts)(Unaudited)

Pro forma net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pro forma net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pro forma net income per share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,486,123
97,452514.85514.14On June 30, 2008, Kyocera Industrial Ceramics Corporation acquired all of the outstanding capital stock of On
Time Machining Company, a manufacturing and sales company of cutting tools. The results of operations of theacquired business were included into Kyocera’s consolidated financial statements since the acquisition date andfor segment reporting, it is reported in the Applied Ceramic Products Group. This acquisition had no material
impact on Kyocera’s consolidated results of operations and financial position.
On April 30, 2008, Kyocera Mita acquired the development operations related to digital multi-function devices
for printers and copy machines from Peerless Systems Corporation.
Kyocera Mita America, Inc., a subsidiary of Kyocera Mita, acquired all operations and related assets, or all of thecapital stock of the following five sales companies of information equipment for the purpose of expanding its
sales channels in the United States of America.
Name

Date of acquisition

Internetworking Innovations, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 30, 2008
Velocity Imaging Products, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 1, 2008
Duplitron Massachusetts, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October 1, 2008
Duplitron New Jersey, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October 1, 2008
One Stop Business Centers, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . December 30, 2008
F-21

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
On October 1, 2008, Kyocera Mita Australia Pty. Ltd., a subsidiary of Kyocera Mita, acquired all operations andrelated assets of Action Copies Pty. Ltd., a sales company of information equipment in Australia.
The results of operations of the acquired businesses were included into Kyocera’s consolidated financial
statements since the acquisition dates and for segment reporting are reported in the Information Equipment
Group. These acquisitions of businesses and shares by Kyocera Mita and its subsidiaries did not have material
impact on Kyocera’s consolidated results of operations, financial position cash flows.
Business combinations in the year ended March 31, 2008
Kyocera Mita acquired all operations and related assets of Docusource L.L.C. on May 31, 2007. Kyocera Mitaalso acquired by merger all of the outstanding capital stock of Garing Business Machines, Inc. on November 27,
2007.These business acquisitions had no material impact on Kyocera’s consolidated results of operations andfinancial positions.
On September 25, 2007, AVX Corporation acquired by merger all of the outstanding capital stock of American
Technical Ceramics Corp. (ATC) in exchange for approximately ¥26,920 million in cash, plus related acquisition
costs. ATC designs, develops, manufactures and markets electronic components, including ceramic multilayer
capacitors and custom thin film circuits. ATC’s products are used in a broad range of commercial applications,
including wireless infrastructure, fiber optics, medical electronics, semiconductor manufacturing equipment andsatellite equipment. ATC has manufacturing facilities and sales offices in New York, manufacturing and researchand development facilities in Florida, and sales offices in Sweden and China.
AVX Corporation has used the purchase method of accounting to record the acquisition in accordance with
SFAS No.141, “Business Combinations.” In accordance with the purchase method, the purchase price isallocated to the assets acquired and liabilities assumed based on their estimated fair values. As of September 30,
2007, the allocation of the purchase price was prepared based on preliminary estimates of fair values. The initial
estimated purchase price allocation was revised as of March 31, 2008 resulting in an increase to goodwill of¥652 million as reflected in the table below. The results of operations for ATC were included in theaccompanying Consolidated Statement of Operations since the acquisition date. For Kyocera’s segment
reporting, ATC is reported in the Electronic Device Group which includes AVX Corporation and goodwill
associated with the acquisition is allocated to the reporting unit within AVX Corporation.
September 25, 2007
(Yen in millions)

Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 7,550
14,866

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22,416

Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,376
3,912

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,288

Total identified assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17,128Purchase price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26,920Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 9,792

F-22

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Intangible assets that AVX Corporation recorded due to the acquisition of ATC are summarized as follows:
March 31,20092010
Gross Carrying
Accumulated
Gross Carrying Accumulated
AmountAmortization
AmountAmortization(Yen in millions)Intangible assets subject to amortization:
Customer relationships . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥4,998
1,181

¥ 416
217

¥4,743
1,121

¥ 659
343

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥6,179¥ 633¥5,864¥1,002

20092010
Gross Carrying Gross Carrying
AmountAmount(Yen in millions)Intangible assets not subject to amortization:
Trademark . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,332¥3,162

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,332¥3,162

Changes in gross carrying amounts of intangible assets subject to amortization and intangible assets not subject
to amortization were due to translation adjustments.
The estimated aggregate amortization expenses for intangible assets that AVX Corporation recorded due to theacquisition of ATC for the next five years are as follows:
Years ending March 31,(Yen in millions)2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥400
399
399
399
399

The pro forma results for the year ended March 31, 2008 are not presented as the amounts were immaterial.
3. INVESTMENTS IN DEBT, EQUITY SECURITIES AND OTHER INVESTMENTS
Available-for-sale securities are recorded at fair value, with unrealized gains and losses excluded from income
and reported in other comprehensive income, net of tax. Held-to-maturity securities are recorded at amortizedcost. Non-marketable equity securities are accounted by the cost method. In gross unrealized gains and losses on
equity securities, ¥15,540 million of gross unrealized gain at March 31, 2009 and ¥28,140 million of grossunrealized gain at March 31, 2010 were derived from a fluctuation in the market value of the shares of KDDI
Corporation (KDDI).
Other-than-temporary loss on debt and equity securities for the years ended March 31, 2008, 2009 and 2010
amounted to ¥248 million, ¥7,141 million and ¥217 million, respectively. For the year ended March 31, 2009,
Kyocera recorded losses on impairment of securities due to the decline in fair value below cost for a considerable
length of time and the extent was severe, most of which was an impairment loss of ¥3,935 million of shares ofMitsubishi UFJ Financial Group, Inc.
F-23

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries(1) Debt and equity securities with readily determinable fair values
Investments in debt and equity securities at March 31, 2009 and 2010, included in investments in debt securities,
current (current assets) and in investments in debt and equity securities, long term (non-current assets) aresummarized as follows:

Cost*

March 31,2009
Aggregate
Gross
Gross
Fair
Unrealized Unrealized
Value
Gains
LossesCost*(Yen in millions)2010
Aggregate
Gross
Gross
Fair
Unrealized Unrealized
Value
Gains
LossesAvailable-for-sale securities:
Marketable equity
securities . . . . . . . . . . . ¥267,605 ¥288,734 ¥22,094
Investment trusts . . . . . . .
2,551
2,403
5

¥ 965 ¥270,494 ¥310,654 ¥40,329
153
3,346
3,809
463

Total equity securities . . . . .

270,156

291,137

22,0991,118

273,840

314,463

40,792

169

Corporate bonds . . . . . . . .
Convertible bonds . . . . . .
Government bonds andpublic bonds . . . . . . . . .
Other debt securities . . . .

7,173
4,711

6,648
4,711

16
—

541
—

6,659
9,867

6,221
9,867

66
—

504
—

3,327
2,389

3,150
2,070

22
—

199
319

2,230
1,166

1,999
1,131

8
35

239
70

Total debt securities . . . . . . .

17,60016,57938

1,059

19,922

19,218109

813

Total available-for-salesecurities . . . . . . . . . . . . .

287,756

307,716

22,137

2,177

293,762

333,681

40,901

982

¥ 169
—

Held-to-maturity securities:
Corporate bonds . . . . . . . .
Government bonds andpublic bonds . . . . . . . . .

8,398

8,375

2

25

23,90424,018194

80

19,524

19,46717

74

24,18324,17335

45

Total held-to-maturity
securities . . . . . . . . . . . . .

27,922

27,842

19

99

48,08748,191229

125¥2,276 ¥341,849 ¥381,872 ¥41,130¥1,107

Total . . . . . . . . . . . . . . . . . . . ¥315,678 ¥335,558 ¥22,156

At March 31, 2010, the contractual maturities of available-for-sale and held-to-maturity securities are
summarized as follows:
March 31, 2010
Available-for-Sale
Held-to-Maturity
Aggregate
Aggregate
Cost*
Fair Value
Cost*
Fair Value(Yen in millions)Due within 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due after 1 year to 5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due after 5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-24

¥

1,925
15,531
2,466
273,840¥

1,824
15,092
2,302
314,463¥ 9,820
38,267——¥ 9,838
38,353——¥293,762¥333,681¥48,087¥48,191

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries*

Cost represents amortized cost for held-to-maturity securities and acquisition cost for available-for-salesecurities. The cost basis of the individual securities is written down to fair value as a new cost basis whenother-than-temporary impairment is recognized.

Proceeds from sales of available-for-sale securities and the related gross realized gains and losses for the years
ended March 31, 2008, 2009 and 2010 are as follows:
Years ended March 31,
2008
2009
2010
(Yen in millions)

Proceeds from sales of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . ¥88,617 ¥17,028 ¥11,375
Gross realized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,224
951
746
Gross realized losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,078
3,875
875
For the purpose of computing gains and losses, the cost of those securities is determined by the moving averagemethod.
Kyocera’s available-for-sale securities classified by length of unrealized loss position at March 31, 2009 and2010 are as follows:
within 1 year
Aggregate
Gross
Fair
Unrealized
Value
LossesMarch 31, 2009
over 1 year
Aggregate
Gross
Fair
Unrealized
Value
Losses(Yen in millions)

Total
Aggregate
Gross
Fair
Unrealized
Value
LossesMarketable equity securities . . . . . . . . . . . . .
Investment trusts . . . . . . . . . . . . . . . . . . . . . .
Corporate bonds . . . . . . . . . . . . . . . . . . . . . .
Convertible bonds . . . . . . . . . . . . . . . . . . . . .
Government bonds and public bonds . . . . . .
Other debt securities . . . . . . . . . . . . . . . . . . .

¥ 4,273
1,919
4,519
—
1,288
276

¥ 965
153
460
—
199
69

¥ —
—
1,742
—
—
1,795

¥—
—
81
—
—
250

¥ 4,273
1,919
6,261
—
1,288
2,071

¥ 965
153
541
—
199
319

Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥12,275¥1,846¥3,537¥331¥15,812¥2,177

within 1 year
Aggregate
Gross
Fair
Unrealized
Value
LossesMarch 31, 2010
over 1 year
Aggregate
Gross
Fair
Unrealized
Value
Losses(Yen in millions)

Total
Aggregate
Gross
Fair
Unrealized
Value
LossesMarketable equity securities . . . . . . . . . . . . .
Investment trusts . . . . . . . . . . . . . . . . . . . . . .
Corporate bonds . . . . . . . . . . . . . . . . . . . . . .
Convertible bonds . . . . . . . . . . . . . . . . . . . . .
Government bonds and public bonds . . . . . .
Other debt securities . . . . . . . . . . . . . . . . . . .

¥ 1,125
—
15
—
198
92

¥ 169
—
3
—
2
28

¥ —
—
3,456
—
1,251
716

¥—
—
501
—
237
42

¥ 1,125
—
3,471
—
1,449
808

¥ 169
—
504
—
239
70

Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,430¥ 202¥5,423¥780¥ 6,853

¥ 982

F-25

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
At March 31, 2010, Kyocera held available-for-sale securities in unrealized loss positions of ¥982 million.
Kyocera considered the impairments of marketable equity securities were not other-than-temporary as the extent
to which fair value was below the cost was minor and the duration of the impairments was within a year. Kyocera
considered the impairments of corporate bonds, government bonds and public bonds and other debt securities
were not other-than-temporary because the impairment was not caused by credit loss and Kyocera would receive
the full cost amount.
(2) Other investments
Kyocera held time deposits and certificates of deposits which were due over three months to original maturity,
non-marketable equity securities and long-term loans. Carrying amounts of these investments at March 31, 2009
and 2010, included in other short-term investments (current assets) and in other long-term investments (noncurrent assets), are summarized as follows:
March 31,
2009
2010
(Yen in millions)Time deposits and certificates of deposits (due over 3 months) . . . . . . . . . . . . . . . . . . . . . .
Non-marketable equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥211,206
6,058
1,090

¥200,482
10,263202

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥218,354¥210,947

4. FAIR VALUE
Fair value is the price that would be received from selling asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date. The three levels of inputs that may be used tomeasure fair value are as follows:
Level 1:
Level 2:

Level 3:

Unadjusted quoted prices in active markets for identical assets and liabilities.
Observable inputs other than those included in Level 1. For example, quoted prices for
similar assets or liabilities in active markets or quoted prices for identical assets or liabilities
in inactive markets.
Unobservable inputs reflecting management’s own assumptions about the inputs used inpricing the asset or liability.

F-26

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries(1) Assets and Liabilities Measured at Fair Value on a Recurring BasisMarch 31,
Level 1

Current Assets:
Corporate bonds . . . . . . . . . . . . . ¥Government bonds and publicbonds . . . . . . . . . . . . . . . . . . .
Other debt securities . . . . . . . . .

2009
Level 2 Level 3

Total
Level 1
(Yen in millions)

882 ¥ 904 ¥225 ¥2010
Level 2 Level 3

Total

2,011 ¥

721 ¥158 ¥ 19 ¥

898

1,861
—

—
1,038

—
187

1,861
1,225

195
—

—
729

—
2

195
731

Total debt securities . . . . . .

2,743

1,942

412

5,097

916

887

21

1,824

Foreign currency forward
contracts . . . . . . . . . . . . . . . . .

—

228

—

228

—

760

—

760

Total derivatives . . . . . . . . .

—

228

—

228

—

760

—

760

Total current assets . . . . . . . . . .

2,743

2,170

412

5,325

916

1,647

21

2,584

288,734—
1,113 1,290——

288,734
2,403

310,654
1,100

—
2,709

—
—

310,654
3,809

Total equity securities . . . .

289,847

1,290—

291,137

311,7542,709—

314,463

Corporate bonds . . . . . . . . . . . . .
Convertible bonds . . . . . . . . . . .
Government bonds and publicbonds . . . . . . . . . . . . . . . . . . .
Other debt securities . . . . . . . . .

3,860
—

622
4,711

155
—

4,637
4,711

5,225
—

87
9,867

11
—

5,323
9,867

1,289
—

—
716

—
129

1,289
845

1,804
—

—
399

—
1

1,804
400

Total debt securities . . . . . .

5,149

6,049

284

11,482

7,029

10,353

12

17,394

Total non-current assets . . .

294,996

7,339

284

302,619

318,783

13,06212

331,857

Non-Current Assets:
Marketable equity securities . . .
Investment trusts . . . . . . . . . . . .

Total assets . . . . . . . . . . . . . . . . . ¥297,739 ¥9,509 ¥696 ¥307,944 ¥319,699 ¥14,709 ¥ 33 ¥334,441
Current Liabilities:
Foreign currency forward
contracts . . . . . . . . . . . . . . . . . ¥Interest rate swaps . . . . . . . . . . .
Currency swaps . . . . . . . . . . . . .

———¥3,715 ¥—
49 —
10 —

Total derivatives . . . . . . . . .

—

3,774

Total current liabilities . . . . . . . . ¥—¥3,774 ¥—¥—¥3,715 ¥
49
10

—
—
—

¥

984 ¥—
44 —
9 —

3,774

—

1,037

3,774 ¥—

¥ 1,037 ¥—

¥

—

984
44
9
1,037

¥

1,037

The fair value of Level 1 investments is quoted price in active market with sufficient volume and frequency oftransactions.
The fair value of Level 2 investments is other than quoted price included within Level 1 that is observable for theasset or liability, either directly or indirectly through corroboration with observable market data. Kyocera did notrecognize any transfers in and out of Levels 1 and 2 for the year ended March 31, 2009 and 2010. In accordancewith the provisions of ASC 815-15 “Hybrid Financial Instruments”, Kyocera elects the fair value option for all
convertible bonds from the year ended March 31, 2009. Gains on convertible bonds amounted to ¥3 million and¥254 million were recorded in other, net on the consolidated statement of income for the year ended March 31,
2009 and 2010, respectively.
F-27

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
The fair value of Level 3 investments is determined using input that is both unobservable and significant to thevalues of instruments being measured.
The fair value of Level 2 derivatives is estimated based on quotes from financial institutions. With respect to thedetail information of derivatives, please refer to the Note 13 to the Consolidated Financial Statement.
The following table presents additional information about Level 3 corporate bond and other debt securities
measured at fair value on recurring basis for the year ended March 31, 2009 and 2010.
Years ended March 31,
2009
2010
(Yen in millions)

Balance at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total gains or losses (realized /unrealized)
Included in earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Included in other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase, issuance, and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer in and/or out of Level 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,436

¥ 696

(262)
(132)
(859)
513

(30)
71
(457)
(247)

Balance at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 696

¥ 33

(2) Assets and Liabilities Measured at Fair Value on a Non-recurring Basis
The following table presents the financial assets that were measured and recorded at fair value on a non-recurring
basis for the year ended March 31, 2009.
Balance at
March 31, 2009

Non-marketable equity securities . . . . . . . . . . . . . . . .

¥57

Level 1 Level 2 Level 3(Yen in millions)¥57

Total gains (losses)
for the year ended
March 31, 2009¥(266)

The following table presents the financial assets and non-financial assets that were measured and recorded at fairvalue on a non-recurring basis for the year ended March 31, 2010.
Balance at
March 31, 2010

Investment in WILLCOM, Inc. . . . . . . . . . . . . . . . . .
Land and Machinery and equipment . . . . . . . . . . . . .
Non-marketable equity securities . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥—
400
11
—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Level 1 Level 2 Level 3(Yen in millions)

¥—
400
11
—

Total gains (losses)
for the year ended
March 31, 2010¥(19,987)
(597)
(26)
(22)
¥(20,632)

In fiscal 2010 (During the three months ended December 31, 2009), Kyocera measured the fair value andrecognized an other-than-temporary impairment loss of ¥19,987 million on its investment in WILLCOM, Inc., anaffiliate company of Kyocera accounted for by the equity method. The impairment loss was included in equity inearnings (losses) of affiliates and unconsolidated subsidiaries in the consolidated statement of income. The fairvalue of this investment is based on valuation techniques using the best information available, and may include
market comparables, analysis of financial position and estimated future cash flow. The investment was classified
as a Level 3 asset because unobservable inputs were used to determine the fair value, which included
assumptions market participants would use to value this investment due to the absence of quoted market prices.
F-28

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Certain land and machinery and equipment with a carrying amount were written down to their fair value due toevents or circumstances that carrying value of the assets was not recoverable, resulting in impairment charge of¥597 million, which were included in selling, general and administrative expenses in the Consolidated Statementof Income for the year ended March 31, 2010.
Certain non-marketable equity securities with a carrying amount were written down to their fair value due toother-than-temporary impairment, resulting in impairment charge of ¥266 million and ¥26 million, which were
included in losses on impairment of securities in the Consolidated Statement of Income for the year ended
March 31, 2009 and 2010, respectively.
Certain goodwill with a carrying amount was written down to its fair value due to that carrying value exceeded
its fair value, resulting in impairment charge of ¥22 million, which were included in selling, general andadministrative expenses in the Consolidated Statement of Income for the year ended March 31, 2010.
(3) Fair Value of Financial Instruments
The fair values of financial instruments and the methods and assumptions used to estimate the fair value are as
follows:
March 31,
2009
Carrying Amount2010
Fair Value Carrying Amount(Yen in millions)

Fair Value¥ 10,093¥ 10,096¥ 11,644¥ 11,662

325,545
26,304

325,462
26,316370,124
10,534370,210
10,534

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥361,942¥361,874¥392,302¥392,406

Liabilities (b):Long-term debt (including due within oneyear) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 42,403¥ 42,611¥ 42,523¥ 42,710

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 42,403¥ 42,611¥ 42,523¥ 42,710

Assets (a):Investments in debt securities, current . . . . . . . . .
Investments in debt and equity securities, longterm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term investments . . . . . . . . . . . . . . . .

(a) The fair value is based on quoted market prices. It was not practicable to estimate the fair value of
non-marketable equity securities because of the lack of the market price and difficulty in estimating fairvalue without incurring excessive cost, and Kyocera did not identify any events or changes in circumstancesthat may have had a significant adverse effect on these investments. The aggregated carrying amounts ofthese investments included in the above table at March 31, 2009 and 2010 were ¥6,001 million and¥10,252 million, respectively.
(b) The fair value is estimated by discounting cash flows, using current interest rates for instruments withsimilar terms and remaining maturities.
Cash and cash equivalents, other short-term investments, trade notes receivable, trade accounts receivable, shortterm borrowings, trade notes and accounts payable, and other notes and accounts payable approximate fair value
because of the short maturity of these instruments.

F-29

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
5. INVENTORIESInventories at March 31, 2009 and 2010 are as follows:
March 31,
2009
2010
(Yen in millions)Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Raw materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥104,379
39,83655,426¥ 83,444
41,40952,508¥199,641¥177,361

Deductions(B)Balanceat End ofPeriod6. VALUATION AND QUALIFYING ACCOUNTS
Changes in valuation and qualifying accounts are as follows:

Description

Balanceat Beginning of
PeriodAdditions
ChargedCharged to (Credited) to
Costs and
Other
Expenses
Accounts(A)(Yen in millions)

For the year ended March 31, 2008:
Allowance for doubtful accounts . . . . . . . . . . . .
Allowance for sales returns . . . . . . . . . . . . . . . .

¥4,982
3,089

¥ 628
8,510

¥(406)(549)¥(1,324)(8,615)¥3,8802,435

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥8,071¥9,138¥(955)¥(9,939)¥6,315For the year ended March 31, 2009:
Allowance for doubtful accounts . . . . . . . . . . . .
Allowance for sales returns . . . . . . . . . . . . . . . .

¥3,8802,435¥1,512
6,178

¥ 430
0

¥ (831)(6,458)¥4,991
2,155

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥6,315¥7,690¥ 430¥(7,289)¥7,146

For the year ended March 31, 2010:
Allowance for doubtful accounts . . . . . . . . . . . .
Allowance for sales returns . . . . . . . . . . . . . . . .

¥4,991
2,155

¥ 773
4,911

¥ 54
(100)

¥(1,848)(4,711)¥3,9702,255

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥7,146¥5,684¥ (46)¥(6,559)¥6,225(A) Foreign currency translation adjustments and the increase by business combination.
(B) Charge-offs
7. INVESTMENTS IN AND ADVANCES TO AFFILIATES
On January 21, 2009, the European Commission approved the purchase by Kyocera Mita of shares in TAAG,
raising Kyocera Mita’s ownership percentage to 94.19%, at which point TAAG became a consolidated subsidiaryof Kyocera. Previously, Kyocera’s ownership percentage in TAAG was 30% and it was accounted for as anequity method investment. Kyocera Mita holds 95.43% of TAAG’s issued shares as of March 31, 2010.
Since October 2004, Kyocera Corporation has owned a 30% interest in WILLCOM, Inc., which is engaged in the
personal handy phone system (PHS) business. Kyocera also sells PHS handsets and PHS base stations to
WILLCOM, Inc. Kyocera has accounted for its investment in WILLCOM, Inc. as an equity method investment.
F-30

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
On September 24, 2009, WILLCOM, Inc. applied to undergo Alternative Dispute Resolution (ADR) with theJapanese Association of Turnaround Professionals (JATP), a process for corporate revitalization prescribed in the
Act on Special Measures for Industrial Revitalization. This application was accepted, and the ADR process wascommenced. The ADR process is not a legal procedure like a bankruptcy or a corporate reorganization
procedure, but rather constitutes a flexible private settlement mechanism that allows the subject company tocontinue its daily commercial operations, while securing fairness through the involvement of the JATP. The
JATP has been authorized by the Minister of Economy, Trade and Industry to act as an unbiased intermediary toachieve resolution among relevant parties.
During the three months ended December 31, 2009, Kyocera recognized an impairment loss of ¥19,987 million
on its investment in WILLCOM, Inc., recorded as equity in losses of affiliates, reflecting management’s belief
that the investment might not be recoverable.
On February 18, 2010, WILLCOM, Inc. filed a petition with the Tokyo District Court for commencement ofcorporate reorganization procedures and applied to the Enterprise Turnaround Initiative Corporation of Japan(ETIC) for support, and the ADR process was terminated. On March 12, 2010, the Tokyo District Court agreed tocommence the corporate reorganization procedures. Upon such decision, most of the directors of WILLCOM,
Inc., including all of those simultaneously serving as directors of Kyocera, resigned, and trustees and acting
trustees were appointed by the Tokyo District Court. On the same day, the ETIC agreed to provide support to
WILLCOM, Inc. Due to the commencement of the corporate reorganization procedures, Kyocera lost significant
influence over WILLCOM, Inc. and therefore discontinued its application of equity method accounting.
Taking into consideration the decision to commence corporate reorganization procedures, Kyocera also
recognized a bad debt loss of ¥8,961 million on receivables from WILLCOM, Inc., recorded as selling, generaland administrative expenses in the Telecommunications Equipment Group, based on publicly disclosed
information such as the outline of the business revitalization plan of WILLCOM, Inc., etc. The total amount of
the bad debt loss in the Telecommunications Equipment Group for the year ended March 31, 2010 was ¥8,963
million. The final recovery rate and repayment schedule will be determined in a reorganization plan to beapproved in the course of corporate reorganization procedures.
Summarized financial information concerning affiliates accounted for by the equity method is as follows. Suchsummarized financial information includes the results of operations of WILLCOM, Inc. and TAAG up to
March 11, 2010 and January 21, 2009, respectively. It does not include the financial positions of WILLCOM,
Inc. and TAAG as of March 31, 2010 and March 31, 2009, respectively.
March 31,
2009
2010
(Yen in millions)

Financial position:
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 73,599
120,598¥3,426
1,103

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥194,197¥4,529Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 70,121
118,638¥1,701
769

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥188,759¥2,470Kyocera’s investments in and advances to affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kyocera’s trade receivables from affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 19,043
16,888

¥ 670
116

F-31

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Years ended March 31,
2008
2009
2010
(Yen in millions)

Results of operations:

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥323,147 ¥260,200 ¥166,500
Profit from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29,28827,914
8,857
Net income attributable to shareholders of affiliates . . . . . . . . . . . . . . . . . . . . .
28,297
20,633
5,422
Kyocera’s equity in earnings of affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,080
6,467
(18,150)
Kyocera’s sales to affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42,291
36,791
18,617
8. LEASE RECEIVABLES
Lease receivables represent capital leases which consist of sales-type leases. These receivables typically haveterms ranging from one year to seven years. The lease receivables, which are included in other current assets andother assets in the accompanying consolidated balance sheets, are as follows:
March 31,
2009
2010
(Yen in millions)

Total minimum lease payments receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unguaranteed residual values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unearned income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Executory costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 35,899 ¥ 39,308
2,237
2,297
(4,128)(3,977)(151)(24)

Less, allowance for doubtful receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33,857(541)

37,604(571)

Less, portion due within one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33,316(10,024)

37,033(11,307)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 23,292¥ 25,726

Future minimum lease payments to be received under financing leases for future years are as follows:
Years ending March 31,(Yen in millions)2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥12,933
10,230
8,122
5,170
2,333
520

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥39,308

TAAG transfers the capital lease receivables to a third party in exchange for cash, however, the transfer ofthe capital lease receivables did not qualify as a sale for financial reporting purpose because TAAG has the rightto repurchase the receivables. Accordingly, Kyocera has accounted for the cash received as a secured borrowing
and it is included in long term debt. As a result of the transaction, capital lease receivables in the amountof ¥29,691 million and ¥34,807 million as of March 31, 2009 and 2010 have been recorded on the balance sheet,respectively.

F-32

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
9. GOODWILL AND OTHER INTANGIBLE ASSETS
Intangible assets are summarized as follows:
March 31,20092010
Gross Carrying Accumulated Gross Carrying
Accumulated
AmountAmortization
AmountAmortization(Yen in millions)Intangible assets subject to amortization:
Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Patent rights . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer relationships . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 36,811
29,11730,69812,298¥23,856
24,5882,840
6,160¥33,702
18,227
26,95911,866¥23,425
15,015
6,078
6,687

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥108,924¥57,444¥90,754¥51,205

March 31,20092010
Gross Carrying Gross Carrying
AmountAmount(Yen in millions)Intangible assets not subject to amortization:
Trademark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 8,5961¥10,0422

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 8,597¥10,044

Intangible assets acquired during the year ended March 31, 2010 are as follows:Year ended March 31, 2010
(Yen in millions)Intangible assets subject to amortization:
Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Patent rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,125
557
1,851
615

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥6,148The weighted average amortization periods for software, patent rights and customer relationships are four
years, five years and 11 years, respectively.
Total amortization of intangible assets during the years ended March 31, 2008, 2009 and 2010 amounted to¥11,132 million, ¥13,532 million and ¥11,888 million, respectively.

F-33

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
The estimated aggregate amortization expenses for intangible assets for the next five years are as follows:
Years ending March 31,(Yen in millions)2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥9,208
7,417
6,061
2,935
2,485

The changes in the amounts of goodwill by reporting segment in the years ended March 31, 2009 and 2010 are as
follows:
Fine
Applied
Ceramic Semiconductor Ceramic Electronic Telecommunications Information
Parts
Parts
Products
DeviceEquipment
Equipment
Group
Group
Group
Group
Group
Group
(Yen in millions)

Balance at March 31,
2008
Goodwill . . . . . . . . . . . .
Accumulated impairment
losses . . . . . . . . . . . . .
Goodwill acquired
during the year . . . . . .
Impairment of
goodwill . . . . . . . . . . .
Translation adjustments
and reclassification toother accounts . . . . . .
Balance at March 31,
2009
Goodwill . . . . . . . . . . . .
Accumulated impairment
losses . . . . . . . . . . . . .
Goodwill acquired
during the year . . . . . .
Impairment of
goodwill . . . . . . . . . . .
Translation adjustments
and reclassification toother accounts . . . . . .
Balance at March 31,
2010
Goodwill . . . . . . . . . . . .
Accumulated impairment
losses . . . . . . . . . . . . .

¥100

¥ 912

¥ 9,198¥29,323——(3,175)

—

100

912

6,023

—

—

—

—

¥

Total

759

¥ 4,155 ¥44,447——(1,478)(4,653)29,323

—

759

2,677

39,794276—

18,456

7,717—

26,449—(2,240)———(1,217)(3,457)

—

—

(233)

35

—

653

(15)

440

100

912

9,241

29,35818,456

9,129

4,140

71,336——(5,415)———(2,695)(8,110)

100

912

3,826

29,35818,456

9,129

1,445

63,226

—

—

—

—

—

1,082

456

1,538

—

—

—

—

—

(22)

—

(22)

—

397

(549)

(841)

—

3,853

—

2,860

100

1,309

8,692

28,51718,456

14,064

4,596

75,734——(5,415)

—

—

(22)

(2,695)(8,132)¥100¥1,309¥ 3,277¥28,517¥18,456¥14,042

F-34¥

Others¥ 1,901 ¥67,602

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
The goodwill of ¥1,538 million which Kyocera acquired during the year ended March 31, 2010 was based on
acquisitions of the common stocks of two distributors of information equipment in Korea, Kyocera Mita Korea
Co., Ltd. and Kyocera Mita Korea Document Solution Co., Ltd., by Kyocera Mita included in the Information
Equipment Group and based on the acquisition of the common stocks of Net it works, Inc. by Kyocera
Communication System Co., Ltd. included in Others segment.
The goodwill of ¥26,449 million which Kyocera group acquired during the year ended March 31, 2009 was
mainly based on the acquisition of the mobile phone related business from SANYO by Kyocera Corporation
included in the Telecommunications Equipment Group and the acquisition of a controlling interest in TAAG toconsolidated subsidiary by Kyocera Mita included in the Information Equipment Group.
For detailed information of their acquisitions, see Note 2 to the Consolidated Financial Statements.
In the year ended March 31, 2009, Kyocera recognized impairment losses on goodwill in the amounts of¥2,240 million in the Applied Ceramic Products Group and ¥1,217 million in the Others segment. The sluggish
performances at a U.S. subsidiary in the Applied Ceramic Products Group and at a Japanese subsidiary in Others
segment led to significant decline in their fair values. The fair values of those goodwill were determined throughthe use of various methodologies such as discounted cash flows and comparable valuations of similar companies.
10. SHORT-TERM BORROWINGS AND LONG-TERM DEBT
Short-term borrowings at March 31, 2009 and 2010 are comprised of the following:
Average interest rates on loans from banks are 1.95% and 1.49% at March 31, 2009 and 2010, respectively.
March 31,
2009
2010
(Yen in millions)

Secured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unsecured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥281
10,719

¥ 243
3,830

¥11,000¥4,073Long-term debt at March 31, 2009 and 2010 are comprised of the following:
Range of interest rates on loans from banks and others are from 0.15% to 7.43% and from 0.20% to 11.60% at
March 31, 2009 and 2010, respectively.
March 31,
2009
2010
(Yen in millions)

Secured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unsecured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 33,192
9,211¥ 37,713
4,810

Less, portion due within one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

42,403(13,865)

42,523(13,456)¥ 28,538¥ 29,067

F-35

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Aggregate maturities of long-term debt at March 31, 2010 are as follows:
Years ending March 31,(Yen in millions)2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥10,263
9,980
5,240
2,554
1,030
¥29,067

Kyocera’s assets pledged as collateral of property, plant and equipment, net of accumulated depreciation for
long-term debt at March 31, 2009 and 2010 were ¥5,090 million and ¥5,005 million, respectively. Kyocera’s
assets pledged as collateral of intangible assets for long-term debt at March 31, 2009 and 2010 were
¥1,950 million and ¥1,875 million, respectively.
As described in Note 8 to the Consolidated Financial Statement, since transferring of the financelease receivables did not qualify as a sale for financial reporting purpose, Kyocera has accounted for the cash
received as a secured borrowing. As a result of the transaction, finance lease receivables in the amountof ¥29,691 million and ¥34,807 million as of March 31, 2009 and 2010 have been recorded on the balance sheet,respectively.
11. BENEFIT PLANS
Kyocera adopted measurement date provision of ASC 715, “Compensation—Retirement Benefits” in the year
ended March 31, 2009, and measured the funded status of its benefit plans at the date of its fiscal year-end
statement of financial position. As a result of applying the transition method of this provision, retained earnings
and other comprehensive income at the beginning of the year decreased by ¥522 million and ¥418 million,
respectively.
Domestic:
Defined benefit plans
At March 31, 2010, Kyocera Corporation and its major domestic subsidiaries sponsor funded defined benefit
pension plans or unfunded retirement and severance plans for their employees.
Kyocera Corporation adopted a variable expected interest rate for benefits paid for pensioners, which is linked
with the long-term interest rate prevailing in Japan instead of a fixed expected interest rate, effective April 2004.
Benefits under the plan of Kyocera Corporation were previously calculated based on base salary, employee’s
position, length of service period and conditions at the time of retirement. However, after April 2005, Kyocera
adopted “point system” whereby benefits under the plan are calculated according to (i) accumulated “points” thatare earned based on employee’s position, extent of contribution and length of service period during employment,and (ii) conditions at the time of retirement. In addition, employees were provided an option to receive lifetime
pension payments for the full amount of their retirement payment, while after April 2005, employees areprovided an option to receive lifetime pension payments for 50% of their retirement payment and 50% of pension
payments for 20 years in maximum. These amendments reduced the projected benefit obligation of the pension
plan for Kyocera Corporation. This effect of the reduction in the projected benefit obligation was reflected as aprior service cost.
F-36

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Major domestic subsidiaries also amended their benefit plans and adopted the “point system” effective
April 2006 and April 2007. As a result of this amendment, their projected benefit obligations decreased and suchdecreases were reflected as prior service costs.
The funded statuses of the benefit plans at Kyocera Corporation and its major domestic subsidiaries as ofMarch 31, 2009 and 2010 are as follows:
March 31,
2009
2010
(Yen in millions)

Change in projected benefit obligations:
Projected benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business combination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥116,639 ¥134,374
9,842
8,805
2,887
2,301
3,304
(5,126)(4,845)(5,762)
6,678
—
19
—
(150)
—

Projected benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in plan assets:
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business combination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

134,374

134,592

132,431(5,889)10,698(4,806)
3,140
(102)

135,472
5,430
8,767(5,685)——

Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

135,472

143,984¥¥

Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,098

9,392

Amounts recognized in the consolidated balance sheets consist of:March 31,
2009
2010
(Yen in millions)Prepaid benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued benefit liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 10,447 ¥ 17,337(9,349)(7,945)
¥

1,098

¥

9,392

Amounts recognized in accumulated other comprehensive income (loss) consist of:March 31,
2009
2010
(Yen in millions)

Prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-37¥ 45,920 ¥ 41,593(40,564) (31,888)
¥

5,356

¥

9,705

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
March 31,
2009
2010
(Yen in millions)

Accumulated benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension plans with an accumulated benefit obligation in excess of plan assets at the endof year are as follows:
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥133,937¥134,146¥ 19,334
18,933
9,985¥ 19,578
19,132
11,633

Net periodic pension costs at Kyocera Corporation and its major domestic subsidiaries in the years ended
March 31, 2008, 2009 and 2010, include the following components:
2008

Years ended March 31,
2009(Yen in millions)2010

Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognized actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 7,668
2,166(3,193)226(4,328)1,030¥ 9,842
2,887(3,549)111(5,265)
1,106¥ 8,805
2,301(3,054)—(4,327)
1,174

Net periodic pension costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 3,569¥ 5,132¥ 4,899

Net periodic pension costs in the year ended March 31, 2009 included the effect of the adoption of ASC 715,
“Compensation—Retirement Benefits”.
Changes in other comprehensive income (loss) at Kyocera Corporation and its major domestic subsidiaries in theyear ended March 31, 2008, 2009 and 2010 mainly consist of the following components:
2008

Years ended March 31,
2009(Yen in millions)2010

Prior service cost due to plan amendments . . . . . . . . . . . . . . . . . . . . . .
Net actuarial (loss) gain incurred during the year . . . . . . . . . . . . . . . . .
Amortization of transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognized actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (110)(3,738)226(4,328)
1,030

¥
(19)
(12,742)
111(5,265)
1,106

¥

—
7,502
—
(4,327)
1,174

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(6,920)¥(16,809)¥ 4,349

Amortization of transition obligation, amortization of prior service cost and recognized actuarial loss in the year
ended March 31, 2009 included the effect of the adoption of ASC 715, “Compensation—Retirement Benefits”.
Prior service cost and actuarial loss expected to be amortized at Kyocera Corporation and its major domestic
subsidiaries in the year ending March 31, 2011 are as follows:Year ending March 31, 2011
(Yen in millions)

Amortization of prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognized actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-38¥(4,329)773

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Assumptions used to determine projected benefit obligations at Kyocera Corporation and its major domestic
subsidiaries at March 31, 2009 and 2010 are as follows:
March 31,
2009
2010

Discount rate (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.25-2.00

1.00-2.00

Assumptions used to determine net periodic pension costs at Kyocera Corporation and its major domestic
subsidiaries for the years ended March 31, 2008, 2009 and 2010 are as follows:
2008

Years ended March 31,
2009
2010

Discount rate (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.75-2.00
Expected long-term rate of return on plan assets (%) . . . . . . . . . . . . . . . . . . . . 2.50-3.00

1.75-2.00
1.25-2.20

1.25-2.00
2.00-2.20

Rate of increase in compensation levels was not used in the calculation of projected benefit obligation and net
periodic pension costs for the years ended March 31, 2008, 2009 and 2010 under the “point system.”
Kyocera Corporation and its major domestic subsidiaries determine their expected long-term rate of return onplan assets based on the defined yields of life insurance company general account, which occupies major part ofplan assets categories, and their consideration of the current expectations for future returns and the historicalreturns of other plan assets categories in which they invest.
Plan assets
Kyocera Corporation and its major domestic subsidiaries manage and operate their plan assets with a target ofobtaining better performance more than earnings from the expected rate of return on plan assets to ensure thesources of funds sufficient to cover the pension benefits paid to participants and beneficiaries into the future.
Plan assets are classified into four major types. Approximately 60% is invested in life insurance company generalaccounts, approximately 20% is mainly invested in equity securities that are listed on securities exchanges and indebt securities such as governments bonds, approximately 15% is invested in trust funds that invest both long andshort in stocks and bonds, and approximately 5% is held in cash and cash equivalents.
In terms of the plan assets management, Kyocera Corporation and its major domestic subsidiaries makeappropriate investment choices and optimal portfolios with a consideration of its performances, expected returns
and risks, and entrusts their plan assets to the fund trustees which can be expected to be the most appropriate toaccomplish Kyocera’s objective. Kyocera Corporation and its major domestic subsidiaries also make an effort tomaintain their portfolios within reasonable allocations of plan assets. Kyocera Corporation and its majordomestic subsidiaries evaluate their categories of plan assets allocations and can change their portfolios when it
is needed.
At March 31, 2010, Kyocera Corporation and its major domestic subsidiaries do not have plans to change theirlong-term strategy about allocations of plan assets from described above.
Plan assets categories at Kyocera Corporation and its major domestic subsidiaries at March 31, 2010 are as
follows:
Level 1 assets are equity securities and corporate bonds which are valued using unadjusted quoted market prices
in active markets with sufficient volume and frequency of transactions. Level 2 assets are life insurance company
general account, pooled funds and trust funds that invest both long and short in stocks and bonds. Investments in
F-39

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
life insurance company general accounts are valued at conversion value. Pooled funds and trust funds are valued
at their net asset values that are provided by the fund manager or general partner of the funds. For detailed
information of the three levels of input used to measure fair value , see Note 4 to the Consolidated Financial
Statements.
Quoted prices in
active markets(Level 1)

Plan assets
Life insurance company general account . . . . . .
Equity securities:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . .
International . . . . . . . . . . . . . . . . . . . . . . . .
Pooled funds(1) . . . . . . . . . . . . . . . . . . . . . . .
Debt securities:
Corporate bonds . . . . . . . . . . . . . . . . . . . . .
Pooled funds(2) . . . . . . . . . . . . . . . . . . . . . . .
Other types of investments:
Equity long/short
Domestic(3) . . . . . . . . . . . . . . . . . . . . .
International(4) . . . . . . . . . . . . . . . . . . .
Debt long/short(5) . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . .

¥March 31, 2010
Other observable Unobservable
inputsinputs(Level 2)(Level 3)(Yen in millions)

Total

—

¥ 81,738¥ —¥ 81,738

2,561
5,731
—

—
—
10,583

—
—
—

2,561
5,731
10,583

5,374
—

—
2,596

—
—

5,374
2,596

—
—
—
—
10,967¥24,633

4,483
5,078
11,1302,175—¥117,783

—
—
—
1,568
—
¥1,568

4,483
5,078
11,130
3,743
10,967¥143,984(1) This category includes pooled funds that mainly invest in domestic and international equity securities thatare listed on securities exchanges.
(2) This category includes pooled funds that mainly invest in domestic government bonds and municipal bonds.
(3) This category includes trust funds that mainly invest both long and short in equity securities thatare listed on domestic securities exchanges.
(4) This category includes trust funds that mainly invest both long and short in equity securities that are listed
on international securities exchanges.
(5) This category includes trust funds that mainly invest both long and short in government bonds.
The following table presents additional information about Level 3 assets measured at fair value on recurring basis
for the year ended March 31, 2010. Plan assets of Level 3 are invested in multi-strategy hedge funds, which arevalued at their net asset values that are provided by the fund manager or general partner of the funds. The net
asset values are based on the fair value of the underlying assets owned by the funds, minus its liabilities thendivided by the number of units outstanding.
Year ended March 31, 2010
(Yen in millions)

Balance at March, 31 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets:
Relating to assets still held at the reporting date . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Relating to assets sold during the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases, sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at March, 31 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-40¥ 1,46587
50(34)¥ 1,568

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Kyocera Corporation and its major domestic subsidiaries forecast to contribute ¥8,800 million to the defined
benefit pension plans in the year ending March 31, 2011.
Estimated future benefit payments at Kyocera Corporation and its major domestic subsidiaries are as follows:
Years ending March 31,(Yen in millions)2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 to 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 5,249
5,744
5,793
6,294
6,653
41,483Foreign:(1) Pension plans
Kyocera International, Inc. and its consolidated subsidiaries (KII), consolidated U.S. subsidiaries of Kyocera
Corporation, maintain a non-contributory defined benefit pension plans in the U.S. The KII plan covers
substantially certain full-time employees in the U.S., of which benefits are based on years of service and theemployees’ average compensation.
AVX Corporation and its consolidated subsidiaries (AVX), consolidated U.S. subsidiaries of Kyocera
Corporation, maintain non-contributory defined benefit pension plans in the U.S. and contributory defined
benefit pension plans inside the U.S. Pension benefits provided to certain U.S. employees covered undercollective bargaining agreements are based on a flat benefit formula. Effective December 31, 1995, AVX froze
benefit accruals under its domestic non-contributory defined benefit pension plan for a significant portion of theemployees covered under collective bargaining agreements. AVX’s pension plans for certain European
employees provide for benefits based on a percentage of final pay. AVX’s funding policy is to contributeamounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws.
TAAG, a German subsidiary of Kyocera Mita, maintains a defined benefit pension plan, which covers certain
employees in Germany. TAAG does not maintain an external fund for this benefit pension plan.

F-41

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
The following table sets forth the funded statuses of the plans at KII, AVX and TAAG as of March 31, 2009 and2010:
March 31,
2009
2010
(Yen in millions)

Change in benefit obligations:Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in plan assets:
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 24,417 ¥ 35,122
453
297
1,768
2,123
41
25
(2,420)5,043(1,466)(2,329)16,204—(3,845)(1,296)(30)(82)
35,12238,903

21,276
13,263(4,885)
3,996
1,404
1,187
41
25
(1,174)(1,063)(3,369)
(412)
(30)
(31)
13,263
16,965¥(21,859) ¥(21,938)

Amounts recognized in the consolidated balance sheets consist of:March 31,
2009
2010
(Yen in millions)

Accrued benefit liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(21,859) ¥(21,938)¥(21,859) ¥(21,938)

Amounts recognized in accumulated other comprehensive income (loss) consist of:March 31,
2009
2010
(Yen in millions)

Prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (114) ¥ (99)(5,731) (7,168)¥(5,845) ¥(7,267)
March 31,
2009
2010
(Yen in millions)

Accumulated benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-42¥33,995¥37,924

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Pension plans with an accumulated benefit obligation in excess of plan assets at the end of year:
March 31,
2009
2010
(Yen in millions)

Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥35,12233,995
13,263¥38,90337,924
16,965

Net periodic pension costs at KII, AVX and TAAG in the years ended March 31, 2008, 2009 and 2010 include
the following components:
Years ended March 31,
2008
2009
2010
(Yen in millions)

Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognized actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net periodic pension costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥556 ¥ 453 ¥ 297
1,514
1,768
2,123
(1,639) (1,684)
(988)
15
13
9
205
102
283
¥ 651 ¥ 652 ¥1,724

Net periodic pension costs in the year ended March 31, 2009 included the effect of adoption of ASC 715,
“Compensation—Retirement Benefits”.
Changes in other comprehensive income (loss) at KII, AVX and TAAG in the year ended March 31, 2008, 2009
and 2010 mainly consist of the following components:
Years ended March 31,
2008
2009
2010
(Yen in millions)

Net actuarial gain (loss) incurred during the year . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognized actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,12615
205¥2,346¥(4,149) ¥(2,035)
13
9
102
283
¥(4,034) ¥(1,743)

Amortization of prior service cost and recognized actuarial loss in the year ended March 31, 2009 included theeffect of the adoption of ASC 715, “Compensation—Retirement Benefits”.
Prior service cost and actuarial loss expected to be amortized at KII, AVX and TAAG in the year ending
March 31, 2011 are as follows:Year ending March 31, 2011
(Yen in millions)

Amortization of prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognized actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 10
276

Assumptions used to determine projected benefit obligations of the plans at KII, AVX and TAAG as of March
31, 2009 and 2010 are as follows:
March 31,
2009
2010

Discount rate (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rate of increase in compensation levels (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-43

5.60-7.30
2.50-4.00

4.80-6.00
2.00-4.25

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Assumptions used to determine net periodic pension costs at KII, AVX and TAAG in the years ended March 31,
2008, 2009 and 2010 are as follows:
2008

Years ended March 31,
2009
2010

Discount rate (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.40-6.00
Rate of increase in compensation levels (%) . . . . . . . . . . . . . . . . . . . . . . . . . . 3.40-4.50
Expected long-term rate of return on plan assets (%) . . . . . . . . . . . . . . . . . . . . 6.60-8.50

5.50-6.50
3.90-4.50
6.60-8.50

5.60-7.30
2.50-4.00
6.50-8.50

KII and AVX determine their expected long-term rate of return on plan assets based on the consideration of thecurrent expectations for future returns and the historical returns of other plan assets categories in which they
invest.
KII’s and AVX’s plan assets categories at March 31, 2010 are as follows:
Level 1 assets are equity securities and government bonds which are valued using unadjusted quoted market
prices in active markets with sufficient volume and frequency of transactions. Level 2 assets are government
agency bonds, corporate bonds and pooled separate accounts at AVX, which are valued at their net asset values
that are provided by the fund manager or general partner of the funds. For detailed information of the three levels
of input used to measure fair value , see Note 4 to the Consolidated Financial Statements.
Quoted prices in
active markets(Level 1)

Plan assets
Equity securities:
International . . . . . . . . . . . . . . . . . . . . . . . . .
Debt securities:
Government bonds . . . . . . . . . . . . . . . . . . . .
Government agency bonds . . . . . . . . . . . . . .
Corporate bonds . . . . . . . . . . . . . . . . . . . . . .
Pooled separate accounts(1) . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . .

¥4,661March 31, 2010
Other observable Unobservable
inputsinputs(Level 2)(Level 3)(Yen in millions)

¥

Total

25

¥—

¥ 4,686

186
—
—
—
—
75

—
588
612
10,303
515
—

—
—
—
—
—
—

186
588
612
10,303515
75¥4,922¥12,043¥—¥16,965(1) This category includes pooled separate accounts held by AVX that mainly invest in equity securities anddebt securities.
KII’s long-term strategy is for target allocation of 70%-80% equity securities and 20%-30% debt securities for its
defined benefit plans. AVX’s long-term strategy is for target allocation of 40% equity and 60% fixed income for
its U.S. defined benefit plans and 60% equity and 40% fixed income for its Europe defined benefit plans.
KII and AVX forecast to contribute ¥1,341 million to the defined benefit pension plans in the year ending
March 31, 2011.

F-44

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Estimated future benefit payments of the plans at KII, AVX and TAAG are as follows:
Years ending March 31,(Yen in millions)2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 to 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 2,113
2,122
2,182
2,230
2,303
12,381(2) Savings plans
KII and AVX maintain retirement savings plans which allow eligible U.S. employees to defer part of their annualcompensation.
AVX also maintains non-qualified deferred compensation programs which permit key employees to annuallyelect to defer a portion of their compensation until retirement. Contributions to the plans for the years ended
March 31, 2008, 2009 and 2010 were ¥979 million, ¥930 million, and ¥698 million, respectively.
12. STOCK OPTION PLANS
Kyocera Corporation:
Kyocera Corporation granted directors, corporate auditors, corporate executive officers and certain key
employees of Kyocera with stock option plans until the year ended March 31, 2006. Kyocera granted no stock
option after the year ended March 31, 2007. All options had been exercised or expired or cancelled for the year
ended March 31, 2009.
At March 31, 2010, there was no outstanding option and no share of its common stock for the plans.
The total aggregate intrinsic value of options exercised was ¥3,006 million and ¥300 million for the years ended
March 31, 2008 and 2009, respectively.
Cash received from the exercise of stock options was ¥7,006 million and ¥2,955 million for the years ended
March 31, 2008 and 2009, respectively.
AVX Corporation:
AVX has four fixed stock option plans. Under the 1995 stock option plan, as amended, AVX could grant options
to employees for the purchase of up to an aggregate of 9,300 thousand shares of common stock. Under the
non-employee directors’ stock option plan, as amended, AVX could grant options for the purchase of up to an
aggregate of 650 thousand shares of common stock. No awards were made under these two plans after August 1,
2005. Under the 2004 stock option plan, as amended, AVX may grant options to employees for the purchase of
up to an aggregate of 10,000 thousand shares of common stock. Under the 2004 non-employee directors’ stock
option plan, as amended, AVX may grant options for the purchase of up to an aggregate of 1,000 thousand sharesof common stock. Under all plans, the exercise price of each option shall not be less than the market price of
AVX’s stock on the date of grant and an option’s maximum term is 10 years. Options granted under the 1995
stock option plan and the 2004 stock option plan vest as to 25% annually and options granted under the
non-employee directors’ stock option plan and the 2004 non-employee directors’ stock option plan vest as to one
F-45

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
third annually. Requisite service periods related to all of the plans begin on the grant date. The number of sharesof common stock available for future issuance under all of the plans, consisting of options available to be granted
and options currently outstanding, was 13,846 thousand at March 31, 2010.
Activity under AVX’s stock option plans is summarized as follows:
Weighted
Average
Contractual
Life Remaining(years)Number of
Options(in thousands)

Weighted
Average
Exercise
Price

Outstanding at March 31, 2009 . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expired and cancelled . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,450
530
(12)
(90)

$ 16.31
9.71
11.33
16.13

Outstanding at March 31, 2010 . . . . . . . . . . . . . . . . . . .

4,878$ 15.61

4.67¥—

Exercisable at March 31, 2010 . . . . . . . . . . . . . . . . . . . .

3,623$ 16.60

3.45

¥—

*

*AggregatedIntrinsic Value(Yen in millions)¥

2

Options outstanding and exercisable at March 31, 2010 have a negative aggregated intrinsic value.

The total aggregate intrinsic value of options exercised is ¥375 million, ¥88 million and ¥2 million for the years
ended March 31, 2008, 2009 and 2010, respectively.
Unvested share activity under AVX’s stock options plans at March 31, 2010 is summarized as follows:
Number of
Options(in thousands)

Weighted Average
Grant-Dated
Fair Value

Unvested balance at March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Option forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,245
530
(22)
(498)

$4.69
2.18
4.35
5.53

Unvested balance at March 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,255

$2.65

At March 31, 2010, ¥211 million of total unrecognized compensation costs related to unvested awards is
expected to be recognized over the vesting period, approximately four years. The total aggregate fair value of
options vested is ¥352 million, ¥473 million and ¥256 million for the years ended March 31, 2008, 2009 and2010, respectively.
The weighted average estimated fair value of AVX’s stock options granted at grant date market prices was $5.63,$3.48 and $2.18 per option for the years ended March 31, 2008, 2009 and 2010, respectively. The consolidated
statement of income includes ¥159 million, net of ¥31 million of tax benefit, in stock based compensation
expense for the year ended March 31, 2010.
Cash received from the exercise of stock options was ¥669 million, ¥356 million and ¥12 million for the years
ended March 31, 2008, 2009 and 2010, respectively. Excess tax benefit from stock-based payment arrangementswas ¥113 million, ¥24 million and ¥1 million for the year ended March 31, 2008, 2009 and 2010, respectively.
AVX’s weighted average fair value is estimated at the date of grant using Black Scholes model. AVX estimatedvolatility by considering AVX’s historical stock volatility. AVX calculated the dividend yield based on historical
F-46

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
dividend paid. AVX has estimated forfeitures in determining the weighted average fair value calculation. The
forfeiture rate used for the year ended March 31, 2010 was 6.8%. The following are significant weighted averageassumptions used for estimating the fair value of options issued under AVX’s stock option plans:
Years ended March 31,
2008
2009
2010

Interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.53%
3.22%
2.41%
5 years 5 years 5 years
32.51% 28.46% 26.60%
0.88%
1.24%
1.65%

Kyocera Wireless Corp. :Kyocera Wireless Corp. (KWC) provides key employees with stock options. The options become vested
gradually over a four-year period provided participants remain a KWC employee. The exercise price shall not beless than 85% of the fair value of the common stock at the time the option is granted, and the grant has amaximum term of 10 years. Since KWC’s securities are not traded on any stock exchange, KWC’s Board of
Directors is responsible for determining the fair value using reasonable means. KWC may grant options to all key
employees for the purchase for up to an aggregate of 3,800 thousand shares of common stock. The issuance of
new options under this plan has been suspended as of April 1, 2006.
Activity under KWC’s stock option plan is summarized as follows:
Weighted
Average
Contractual
Life Remaining(years)Number of
Options(in thousands)

Weighted
Average
Exercise
Price

Outstanding at March 31, 2009 . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expired and cancelled . . . . . . . . . . . . . . . . . . . . . . . . . . .

886
—
—
(554)

$2.30
—
—
2.31

Outstanding at March 31, 2010 . . . . . . . . . . . . . . . . . . .

332

$2.27

3.79

¥—

Exercisable at March 31, 2010 . . . . . . . . . . . . . . . . . . . .

332

$2.27

3.79

¥—

*

*AggregatedIntrinsic Value(Yen in millions)¥—

Options outstanding and exercisable at March 31, 2010 have a negative aggregated intrinsic value.

Unvested share activity under KWC’s stock options plan at March 31, 2010 is summarized as follows:
Number of Options(in thousands)

Weighted Average
Grant-Date
Fair Value

Unvested balance at March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Option forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23
—
(5)
(18)

$0.63
—
0.63
0.63

Unvested balance at March 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—

$—

F-47

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
At March 31, 2010, there was no unrecognized compensation cost related to unvested awards. The total
aggregate fair value of options vested is ¥13 million, ¥4 million and ¥1 million for the years ended March 31,
2008, 2009 and 2010, respectively.
The consolidated statement of income includes ¥1 million in stock based compensation expense for the year
ended March 31, 2010.
13. DERIVATIVES AND HEDGING
Kyocera’s activities are exposed to a variety of market risks, including the effects of changes in foreign currency
exchange rates, interest rates and stock prices. Approximately 60% of Kyocera’s revenues are generated fromoverseas customers, which exposes Kyocera to foreign currency exchange rates fluctuations. These financial
exposures are monitored and managed by Kyocera as an integral part of its overall risk management program.
Kyocera’s risk management program focuses on the unpredictability of financial markets and seeks to reduce thepotentially adverse effects that the volatility of these markets may have on its operating results.
Kyocera maintains a foreign currency risk management strategy that uses derivative financial instruments, suchas foreign currency forward contracts, to minimize the volatility in its cash flows caused by changes in foreign
currency exchange rates. Movements in foreign currency exchange rates pose a risk to Kyocera’s operations andcompetitive position, since exchange rates changes may affect the profitability, cash flows, and business and/or
pricing strategies of non Japan-based competitors. These movements affect cross-border transactions thatinvolve, but not limited to, direct export sales made in foreign currencies and raw material purchases incurred inforeign currencies.
Kyocera maintains an interest rate risk management strategy that uses derivative financial instruments, such as
interest rate swaps, to minimize significant, unanticipated cash flow fluctuations caused by interest rate volatility.
By using derivative financial instruments to hedge exposures to changes in exchange rates and interest rates,
Kyocera became exposed itself to credit risk. Credit risk is the failure of the counterparty to perform under theterms of the derivative contracts. When the fair value of a derivative contract is positive, the counterparty owes
Kyocera, which creates repayment risk for Kyocera. When the fair value of a derivative contract is negative,
Kyocera owes the counterparty and, therefore, it does not possess repayment risk. Kyocera minimizes the credit(or repayment) risk in derivative financial instruments by (a) entering into transactions with creditworthy
counterparties, (b) limiting the amount of exposure to each counterparty, and (c) monitoring the financial
condition of its counterparties.
Cash Flow Hedges:
Kyocera uses certain foreign currency forward contracts designated as cash flow hedges to protect against foreign
currency exchange rate risks inherent in its forecasted transactions related to purchase commitments and sales.
Kyocera also uses interest rate swaps and interest rate caps mainly to convert a portion of its variable rate debt tofixed rates.
Other Derivatives:
Kyocera’s main direct foreign export sales and some import purchases are denominated in the customers’ andsuppliers’ local currency, principally the U.S. dollar and the Euro. Kyocera purchases foreign currency forward
contracts with terms normally lasting less than four months and currency swaps to protect against the adverse
F-48

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
effects that exchange-rate fluctuations may have on foreign-currency-denominated trade receivables, payables
and borrowings. The gains and losses on both the derivatives and the foreign currency-denominated tradereceivable, payable and borrowings are recorded as foreign currency transaction gains (losses), net in the
consolidated statement of income. Kyocera does not adopt hedge accounting for such derivatives.
The aggregate contract amounts of derivative financial instruments at March 31, 2009 and 2010 are as follows:
March 31,20092010
Aggregate Contract Aggregate Contract
Amounts
Amounts(Yen in millions)

Derivatives designated as hedging instruments:
Foreign currency forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate caps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

9,750
650
2,275

¥ 11,961
625
3,125

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivatives not designated as hedging instruments:
Foreign currency forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Currency swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 12,675¥ 15,711¥101,346
331¥ 95,758
279

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥101,677¥ 96,037

Total derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥114,352¥111,748

The location and fair value of derivative financial instruments in the consolidated balance sheets at March 31,
2009 and 2010 are as follows:

Location

Derivative Assets:
Derivatives designated as hedging instruments:
Foreign currency forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate caps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,
2009
2010
(Yen in millions)

Other current assets
Other current assets

¥ 133
0

¥

79
—

¥ 133

¥

79

¥

95

¥ 681

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

95

¥ 681

Total derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 228

¥ 760

Other current liabilities
Other current liabilities

¥ 265
49

¥ 167
44

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 314

¥ 211

Other current liabilities
Other current liabilities¥3,45010¥ 817
9Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,460¥ 826

Total derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,774¥1,037

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivatives not designated as hedging instruments:
Foreign currency forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Derivative Liabilities:
Derivatives designated as hedging instruments:
Foreign currency forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivatives not designated as hedging instruments:
Foreign currency forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Currency swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-49

Other current assets

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
The location and amount of derivative financial instruments in the comprehensive income for the years ended
March 31, 2009 and 2010 are as follows:
Derivatives designated as cash flow hedge:
Gains (losses) recognized in accumulated other comprehensive income
Years ended March 31,
2009
2010
(Yen in millions)

Foreign currency forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate caps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(280)
(61)
0

¥ 25
38
—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(341)¥ 63

Gains (losses) reclassified from accumulated other comprehensive income into income (effective portion)
Years ended March 31,
2009
2010
(Yen in millions)

Location

Foreign currency forward contracts . . . . . . . . .
Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . .
Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . .
Interest rate caps . . . . . . . . . . . . . . . . . . . . . . . .

Net sales and Cost of sales
Interest expense
Equity in earnings (losses) of affiliates andunconsolidated subsidiaries
Interest expense

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(417)
0¥(141)
20

9
0

(36)
—

¥(408)¥(157)

Gains (losses) recognized in income (ineffective portion and amount excluded from effectiveness testing)Location

Years ended March 31,
2009
2010
(Yen in millions)

Foreign currency forward contracts . . . . . . . . .

Foreign currency transaction (losses) gains,net
Interest rate caps . . . . . . . . . . . . . . . . . . . . . . . Interest expense¥184—¥ (15)—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥184¥ (15)

Derivatives not designated as hedging instruments:
Gains (losses) recognized in income
Location

Foreign currency transaction(losses) gains, net
Currency swaps . . . . . . . . . . . . . . . . . . . . . . . Foreign currency transaction(losses) gains, net

Years ended March 31,
2009
2010
(Yen in millions)

Foreign currency forward contracts . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-50¥(6,350)¥3,219(10)

1¥(6,360)¥3,220Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
14. COMMITMENTS AND CONTINGENCIESAs of March 31, 2010, Kyocera had contractual obligations for the acquisition or construction of property, plantand equipment aggregating ¥9,886 million principally due within one year.
Kyocera is lessee under long-term operating leases primarily for office space and equipment. Rental expenses for
operating leases were ¥10,577 million, ¥9,298 million and ¥9,210 million for the years ended March 31, 2008,2009 and 2010, respectively.
Future minimum lease commitments under non-cancelable operating leases at March 31, 2010 are as follows:
Years ending March 31,(Yen in millions)2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 5,055
3,335
2,117
1,354
794
1,387
¥14,042

Kyocera has entered into material supply agreements for a significant portion of anticipated material used in its
operations. Under those agreements, during the year ended March 31, 2010, Kyocera purchased ¥12,493 million
and is obligated to purchase ¥271,436 million in total by the end of December 2020.
Kyocera guarantees the debt of employees, an investee and an unconsolidated subsidiary. At March 31, 2010, thetotal amount of these guarantees was ¥725 million. The financial guarantees are made in the form ofcommitments and letters of awareness issued to financial institutions and generally obligate Kyocera to makepayments in the event of default by the borrowers.
AVX has been named as a potentially responsible party (PRP) in state and federal administrative proceedings
seeking contribution for costs associated with the correction and remediation of environmental conditions at
various waste disposals and operating sites. AVX continues to monitor these actions and proceedings and tovigorously defend its interests. AVX currently has reserves for current remediation, compliance and legal cost
related to these matters.
In July 2007, AVX received oral notification from the Environmental Protection Agency (EPA), and in
December 2007, written notification from the U.S. Department of Justice indicating that the United States ispreparing to exercise the reopener provision under a 1991 consent decree relating to the environmental
conditions at, and remediation of, New Bedford Harbor in the Commonwealth of Massachusetts. The EPA has
indicated that remediation costs through December 6, 2007 (which remediation is ongoing) are approximately¥29,621 million. AVX has not yet completed an investigation of the monies spent or its available defenses inlight of the notification. AVX has also not yet determined whether or to what extent other parties may bear
responsibility for these costs.
On April 1, 2008, the U.S. Department of Justice indicated that the future work to be performed at the harbor is
expected to exceed hundreds of millions of dollars under current estimates. AVX anticipates further discussions
with the U.S. Department of Justice, the EPA and the Commonwealth of Massachusetts.
The potential impact of this matter on Kyocera’s consolidated results of operations, financial positions and cash
flows cannot be determined at this time.
F-51

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Kyocera is subject to various lawsuits and claims, which arise, in the ordinary course of business. Kyocera
consults with legal counsel and assesses the likelihood of adverse outcome of these contingencies. Kyocera
records liabilities for these contingencies when the likelihood of an adverse outcome is probable and the amountis reasonably estimated. However, based on the information available, management believes that damages, ifany, resulting from these actions will not have a significant effect on Kyocera’s consolidated results of operations
and financial position.
15. EQUITY
Under the Corporation Act of Japan (the Corporation Act), the entire amount paid in for the shares is principally
required to be capitalized as stated capital, although Kyocera Corporation may, by resolution of its Board of
Directors, capitalize an amount not exceeding one-half of the amount paid in for the shares as additional paid-in
capital.
The Corporation Act requires a domestic company to appropriate as legal reserve or additional paid-in capital, anamount equal to 10% of the amount paid out for dividends until the sum of the legal reserve and additional
paid-in capital equals 25% of its stated capital. The legal reserve and additional paid-in capital, which could bedecreased due to shareholder actions, may be transferred to stated capital or used to reduce a deficit principally.
The appropriated legal reserve at March 31, 2010 included in retained earnings was ¥22,096 million.
The Corporation Act does not permit any payment of dividends in connection with repurchased treasury stock.
Kyocera repurchased treasury stock mainly for the expeditious execution of capital strategies in the future, which
are restricted as to the payment of cash dividends. The amount of statutory retained earnings of Kyocera
Corporation available for the payment of dividends to shareholders at March 31, 2010 was ¥642,839 million.
The accompanying consolidated financial statements do not include any provision for the dividend of ¥60 per
share aggregating ¥11,011 million payable on June 28, 2010 which was approved by the shareholders at themeeting held on June 25, 2010.
Kyocera’s equity in retained earnings or deficits of affiliates and unconsolidated subsidiaries accounted for by theequity method of accounting aggregating ¥(1,611) million at March 31, 2010 was included in retained earnings.
Changes in accumulated other comprehensive income (loss) are as follows:
Net
Unrealized
Net
Gains (Losses) on
Unrealized
Derivative
Gains onFinancial
Securities
Instruments(Yen in millions)

Foreign
Currency
Translation
Adjustments

PensionAdjustments

Balance at March 31, 2007 . . . . . . . . . . .
Net change for the year . . . . . . . . . .

¥ 2,904(36,698)¥ 15,419(2,554)¥ 184,670(119,871)

¥ 63
133

¥ 203,056(158,990)

Balance at March 31, 2008 . . . . . . . . . . .
Cumulative effect of applying ASC
715 to opening balance . . . . . . . .
Net change for the year . . . . . . . . . .

(33,794)

12,86564,799196

44,066—(32,408)(418)(12,394)—(53,178)

—
(341)

(418)
(98,321)

Balance at March 31, 2009 . . . . . . . . . . .
Net change for the year . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . .

(66,202)(9,287)
40

53
1,003
(3)

11,621
11,847
—

(145)
63
—

(54,673)3,626
37

Balance at March 31, 2010 . . . . . . . . . . .

¥(75,449)¥ 1,053¥ 23,468¥ (82)¥ (51,010)

F-52

Total
Accumulated
Comprehensive
IncomeNotes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Tax effects allocated to each component of other comprehensive income (loss) and adjustments, excluding
amounts attributable to noncontrolling interests, are as follows:
Before-tax
amount

For the year ended March 31, 2008:
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . .
Pension adjustments:
Amount arising during the year . . . . . . . . . . . . . . . . . . . . . . . . . .
Reclassification adjustments for gains and losses realized in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (36,679)

Tax (expense)or benefit(Yen in millions)(19)¥ (36,698)(1,676)

914

(762)

(2,983)

1,191(1,792)(4,659)2,105(2,554)(203,870)

83,491(120,379)

896

(388)

508

Net change for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net unrealized gains on derivative financial instruments:
Amount arising during the year . . . . . . . . . . . . . . . . . . . . . . . . . .
Reclassification adjustments for gains and losses realized in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(202,974)

83,103(119,871)

261

(51)

210

(103)

26

(77)

Net change for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

158

(25)

133

Other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(244,154)¥85,164¥(158,990)

¥

(709)

¥

291

¥

Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . ¥ (32,320)
Pension adjustments:
Amount arising during the year . . . . . . . . . . . . . . . . . . . . . . . . . .
(15,439)
Reclassification adjustments for gains and losses realized in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3,293)
Net change for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(18,732)
Net unrealized losses on securities:
Amount arising during the year . . . . . . . . . . . . . . . . . . . . . . . . . .
(99,457)
Reclassification adjustments for gains and losses realized in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9,560
Net change for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(89,897)
Net unrealized losses on derivative financial instruments:
Amount arising during the year . . . . . . . . . . . . . . . . . . . . . . . . . .
(707)
Reclassification adjustments for gains and losses realized in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
278
Net change for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(429)
Other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(141,378)

¥

(88)

¥ (32,408)

4,945(10,494)

1,393
6,338

(1,900)(12,394)

40,606(58,851)(3,887)36,7195,673(53,178)

142

(565)

(54)
88
¥43,057

224(341)¥ (98,321)

Net change for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net unrealized losses on securities:
Amount arising during the year . . . . . . . . . . . . . . . . . . . . . . . . . .
Reclassification adjustments for gains and losses realized in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For the year ended March 31, 2009:
Cumulative effect of applying ASC 715 to opening balance . . . . . . .

F-53

¥

Net-of-tax
amount(418)

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Before-tax
amount

For the year ended March 31, 2010:
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . .
Pension adjustments:
Amount arising during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reclassification adjustments for gains and losses realized in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net unrealized gains on securities:
Amount arising during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reclassification adjustments for gains and losses realized in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net unrealized gains on derivative financial instruments:
Amount arising during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reclassification adjustments for gains and losses realized in net
income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (9,700)

Tax (expense) Net-of-tax
or benefit
amount(Yen in millions)¥413¥ (9,287)

5,784(2,830)2,954(3,433)
2,351

1,482
(1,348)(1,951)
1,003

19,533(7,842)

11,691

266
19,799(110)(7,952)

156
11,847

(119)

10

(109)

204
85
¥12,535(32)(22)¥(8,909)172
63¥ 3,626

16. IMPAIRMENT OF LONG-LIVED ASSETSIn the year ended March 31, 2009, pursuant to ASC 360 “Property, Plant and Equipment,” Kyocera recognized¥2,309 million of an impairment loss on long-lived assets which were used for a production of Organic LightEmitting Diode (OLED) displays in the Electronic Device Group. Such loss was included in selling, general andadministrative expenses. Since qualities and characteristics of OLED displays requested by the users heightened
recently and Kyocera changed the target of production in which they were used, Kyocera transferred suchbusiness from a manufacturing department to a research and development department. As a result of this transfer,
Kyocera reviewed the future plan of OLED displays business and concluded the expected undiscounted cash
flow from the long-lived assets of OLED displays business less than its carrying value. Consequently, Kyocera
recorded a loss on impairment based on the amount by which the carrying value exceeded the fair value of thelong-lived assets of OLED displays business. The fair value of the long-lived assets of OLED displays
business was estimated using the expected present value of future cash flow.

F-54

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
17. INCOME TAXES
Income before income taxes and income taxes for the years ended March 31, 2008, 2009 and 2010 are made upof the following components:
Years ended March 31,
2008
2009
2010
(Yen in millions)

Income before income taxes:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥121,498
53,344¥31,735
24,247¥ 28,477
32,321

Total income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥174,842¥55,982¥ 60,798

Income taxes:
Current income taxes:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 48,941
12,721¥11,603
7,324¥ 17,213
7,232

Total current income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

61,662

18,92724,445

Deferred income taxes:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26(1,453)

4,901(1,049)(10,089)
1,009

Total deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1,427)

3,852(9,080)Total income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 60,235¥22,779¥ 15,365

In Japan, a company is subject to a number of taxes, based on income, which in the aggregate indicate normal
statutory income tax rates for the years ended 2008, 2009 and 2010 of approximately 41.0%.
Reconciliations between the Japanese statutory income tax rate and Kyocera’s effective income tax rate for theyears ended March 31, 2008, 2009 and 2010 are as follows:
Years ended March 31,
2008
2009
2010

Japanese statutory income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Difference in statutory tax rates of foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . .
Change in valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax credit for research and development expenses . . . . . . . . . . . . . . . . . . . . . . . . .
Tax refunds related to transfer pricing adjustments . . . . . . . . . . . . . . . . . . . . . . . . .
Uncertainty in income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax rate change* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

41.0%
(4.7)
0.6
(2.5)
(0.2)
1.9
(0.9)
(0.7)

41.0%
(7.9)
10.5
(1.9)
(0.6)
(0.2)
0.0
(0.2)

41.0%
(7.7)
(1.7)
(4.4)
(0.1)
(1.6)
—
(0.2)

Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34.5%

40.7%

25.3%

*

On January 1, 2008, income tax rates for companies was changed to 25.0% in China, which decreased
the effective income tax rate in fiscal 2008 by 0.9 points. On April 1, 2009, income tax rates for companies
was changed to 17.0% in Singapore, which had no material impact on the effective income tax rate in fiscal
2009.

F-55

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
The components of the deferred tax assets and deferred tax liabilities at March 31, 2009 and 2010 are as follows:
March 31,
2009
2010
(Yen in millions)Deferred tax assets:
Enterprise tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥473 ¥ 1,409
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20,266
19,742
Provision for doubtful accounts and loss on bad debts . . . . . . . . . . . . . . . . . . . . . . . . .
1,753
3,376
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8,788
7,955
Employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24,01024,060Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39,876
37,837
Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,609
9,403
Net operating losses and tax credit carry forwards . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32,06428,333Liquidation of a foreign subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,506
3,694
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,770
3,849
Total gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

139,115(43,236)

139,658(40,270)

Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 95,879¥ 99,388

Deferred tax liabilities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deduction of foreign branch losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sale of certain real estate in overseas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 10,568
2,997
94,594
4,308
3,161
2,621

¥

Total deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥118,249¥121,672

Net deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,005
1,376
102,786
6,823
—
1,682

¥ (22,370) ¥ (22,284)

Net deferred tax assets and liabilities at March 31, 2009 and 2010 are reflected in the consolidated balance sheets
under the following captions.
March 31,
2009
2010
(Yen in millions)Deferred income taxes—current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes—non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 35,187 ¥ 40,872
13,992
12,488(10)(25)(71,539) (75,619)

Net deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(22,370) ¥(22,284)

At March 31, 2010, Kyocera had net operating losses carried forward of approximately ¥75,762 million, which
are available to offset future taxable income. Of these net operating losses carried forward, the amount of¥18,484 million recorded at domestic subsidiaries will expire within next seven years, and the amount ofapproximately ¥18,828 million recorded at U.S. subsidiaries will expire within next 20 years. Certain otherforeign subsidiaries have net operating losses carried forward totaling approximately ¥38,450 million of whichmost have no expiration date.
F-56

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
At March 31, 2010, Kyocera had tax credit carried forward of ¥4,985 million, which are available to offset future
income taxes. Of these tax credit carried forward, the amount of ¥89 million recorded at domestic subsidiaries
will expire within next three years and the amount of ¥3,002 million and ¥1,894 million recorded at U.S.
subsidiaries will expire within 20 years and will be available without expiration, respectively.
Kyocera intends to reinvest certain undistributed earnings of foreign subsidiaries for an indefinite period of time.
Therefore, no deferred tax liabilities have been provided on undistributed earnings of these subsidiaries, which
are not expected to be remitted in the foreseeable future. Kyocera estimates this unrecognized deferred tax
liabilities are ¥8,882 million at March 31, 2010. The undistributed earnings of these subsidiaries are¥231,759 million at March 31, 2010.
Total gross deferred tax assets at March 31, 2009 and 2010 were reduced by valuation allowances of¥43,236 million and ¥40,270 million, respectively.
A reconciliation of the beginning and ending amount of gross valuation allowance for deferred tax asset is asfollows:
2008

March 31,
2009
2010
(Yen in millions)

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 42,124 ¥39,780 ¥ 43,236
12,207
12,874
7,034(11,047) (9,022)(8,905)(3,504)(396)(1,095)

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 39,780*¥43,236¥ 40,270

Other consists mainly of foreign currency translation adjustments.

In June 2006, the FASB issued an interpretation, “Accounting for Uncertainty in Income Taxes—aninterpretation of ASC 740” which clarifies the accounting for uncertainty in income taxes recognized in thefinancial statements in accordance with ASC 740, “Income Taxes”. This interpretation was effective for fiscal
years beginning after December 15, 2006. Cumulative effect of applying ASC 740, which was effective April 1,
2007, increased the opening balance of retained earnings by ¥3,968 million.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
2008

March 31,
2009
2010
(Yen in millions)

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase—tax position in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase—tax position in current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease—tax position in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlements with taxing authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,650 ¥ 8,642 ¥10,518
3,356
442
20
1,839
2,269
1,800
(203)
(835) (1,634)——(2,336)——(16)

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥8,642

F-57¥10,518¥ 8,352

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Gross unrecognized tax benefits on the consolidated balance sheets that if recognized would affect the effective
tax rate are ¥10,518 million and ¥8,352 million, at March 31, 2009 and 2010, respectively. Kyocera expects
that significant change in unrecognized tax benefits might occur within the next 12 months and that such change
will not have significant impact on Kyocera’s consolidated results of operations and financial position.
Kyocera recorded interest and penalties related to unrecognized tax benefits as current income taxes in the
consolidated statement of income in the amount of ¥676 million, ¥71 million and ¥(226) million for the year
ended March 31, 2008, 2009 and 2010, respectively, and as other non-current liabilities in the consolidatedbalance sheet in the amounts of ¥827 million and ¥316 million at March 31, 2009 and 2010, respectively. The
above table excludes this accrual for estimated interest and penalties.
At March 31, 2010, Kyocera is subject to income tax examinations by tax authorities for the tax years 2003 andforward in Japan, and for the tax year 2003 and for the tax years 2007 and forward in the United States for its
major jurisdictions.
On March 31, 2010, Kyocera Corporation received a notice of tax assessment based on transfer pricing
adjustments from the Osaka Regional Tax Bureau stating that, in the Bureau’s judgment, allocation of profit
earned from transfers of products between Kyocera Corporation and its overseas subsidiaries was not appropriate
for the five years from the year ended March 31, 2004 through the year ended March 31, 2008. The noticeindicated that resultant additional taxes, including local taxes, etc., amounted to ¥2,570 million.
Kyocera continues to cope with transfer pricing adjustments appropriately, which have been accounted for inaccordance with ASC 740, “Income Taxes”. Kyocera does not anticipate the final resolution of these proceduresto have a material impact on the consolidated statements of income in the future.
18. SUPPLEMENTAL EXPENSE INFORMATION
Supplemental expense information is as follows:
Years ended March 31,
2008
2009
2010
(Yen in millions)

Research and development expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥61,605 ¥65,932 ¥49,911
Advertising expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,036
9,655
7,346
Shipping and handling cost included in selling, general and administrative
expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17,802
16,41114,140During the year ended March 31, 2009, Kyocera recorded ¥8,314 million of gains on sales of property, plant andequipment, net which includes gains on sales of certain properties in Japan and overseas. Such gains were
included as deductions of selling, general and administrative expenses.
19. SEGMENT REPORTING
Kyocera manufactures and sells a highly diversified range of products, including components involving fineceramic technologies and applied ceramic products, telecommunications and information equipment etc.
Kyocera categorizes its operations into seven reporting segments:(1) Fine Ceramic Parts Group, (2) Semiconductor Parts Group, (3) Applied Ceramic Products Group,(4) Electronic Device Group, (5) Telecommunications Equipment Group, (6) Information Equipment Group, and(7) Others.
F-58

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Main products or businesses of each reporting segment are as follows:(Fine Ceramic Parts Group)
Information & Telecommunication Components
Sapphire Substrates
Components for Semiconductor Processing Equipment
Components for LCD Manufacturing Equipment
Automotive Components
General Industrial Ceramic Components(Semiconductor Parts Group)
Ceramic Packages for Crystal and SAW Devices
CCD / CMOS Sensor Ceramic Packages
LSI Ceramic Packages
Wireless Communication Device Packages
Optical Communication Device Packages and Components
Organic Multilayer Packages and Substrates(Applied Ceramic Products Group)
Residential and Industrial Solar Power Generating Systems
Solar Cells and Modules
Cutting Tools, Micro Drills
Medical and Dental Implants
Jewelry and Fine Ceramic Application Products(Electronic Device Group)
Ceramic Capacitors, Tantalum Capacitors
SAW Devices, RF Modules, EMI Filters
Timing Devices such as TCXOs, Crystal Units, Clock Oscillators and Ceramic Resonators
Connectors
Thermal Printheads, Inkjet Printheads
Amorphous Silicon Photoreceptor Drums
Liquid Crystal Displays(Telecommunications Equipment Group)
CDMA Mobile Phone Handsets
Personal Handy Phone System (PHS) related Products such as PHS Mobile Phone Handsets
and PHS Base Stations
Wireless Broadband Systems such as WiMAX associated products(Information Equipment Group)
Color and Black & White Office Equipment such as ECOSYS Printers, Multifunction Peripherals
Wide Format Multifunctional Systems
Printer and Multifunction Peripherals Supplies
Business Solution Services such as Managed Print Service(Others)
Telecommunication Engineering Business
Integrated Business of Information Systems and Network Infrastructure
Data Center Business
Management Consulting Business
Chemical Materials for Electronic Components
Electrical Insulators, Molded Products
Real Estate Business
F-59

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Inter-segment sales, operating revenue and transfers are made with reference to prevailing market prices.
Transactions between reportable segments are immaterial and not shown separately.
Operating profit for each reporting segment represents net sales, less related costs and operating expenses,
excluding corporate revenue and expenses, equity in earnings, income taxes and net income attributable tononcontrolling interests.
Assets for each reporting segment represent those assets associated with a specific reporting segment. Corporate
assets consist primarily of cash and cash equivalents, the facilities of corporate headquarters and various otherinvestments and assets that are not specific to each reporting segment.
Kyocera’s sales to KDDI Corporation and its consolidated subsidiaries (KDDI) which are mainly recorded in the
Telecommunications Equipment Group are as follows:
2008

Amount of sales to KDDI (Yen in millions) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio of amount of sale to KDDI to consolidated net sales (%) . . . . . . . . . . . .

Years ended March 31,
2009
2010

¥128,330
9.9¥ 127,225
11.3¥115,538
10.8

Information by reporting segment at and for the years ended March 31, 2008, 2009 and 2010 is summarized on
the following page:
Reporting segments
2008

Net sales:
Fine Ceramic Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Semiconductor Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applied Ceramic Products Group . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electronic Device Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Telecommunications Equipment Group . . . . . . . . . . . . . . . . . . . . . .
Information Equipment Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments and eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-60

¥

Years ended March 31,
2009
2010
(Yen in millions)

81,309 ¥154,538
149,942294,201
220,817
276,746
138,494(25,611)¥1,290,436

61,730 ¥135,137
148,917
231,271
218,758
229,297
126,043(22,567)¥1,128,586

53,056
140,507
157,033
199,939
189,118
232,365
124,577(22,790)¥1,073,805

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
Years ended March 31,
2008
2009
2010
(Yen in millions)

Income before income taxes:
Fine Ceramic Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Semiconductor Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applied Ceramic Products Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electronic Device Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Telecommunications Equipment Group . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information Equipment Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 11,167
20,02732,65536,524
6,786
39,5389,635¥(240) ¥ (788)
8,671
17,23527,46919,858(4,070)13,230(17,713) (14,726)
13,49722,091
14,106
6,769

Total operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity in earnings (losses) of affiliates and unconsolidated
subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments and eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

156,332
12,497

41,720
7,632

63,66915,665

6,091
(78)

6,460
170

(18,297)(239)

Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 174,842¥ 55,982¥ 60,798

Years ended March 31,
2008
2009
2010
(Yen in millions)

Depreciation and amortization:
Fine Ceramic Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Semiconductor Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applied Ceramic Products Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electronic Device Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Telecommunications Equipment Group . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information Equipment Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

7,511
14,647
9,685
24,627
8,753
12,024
6,922
2,876¥ 7,986
13,592
11,10024,32916,946
14,4696,407
2,748¥ 5,719
9,795
10,88916,934
9,452
12,846
4,925
2,269¥ 87,045¥ 97,577¥ 72,829

Years ended March 31,
2008
2009
2010
(Yen in millions)Write-down of inventories:
Fine Ceramic Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Semiconductor Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applied Ceramic Products Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electronic Device Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Telecommunications Equipment Group . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information Equipment Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-61

¥

153
160
899
512
1,798
1,372
247
—

¥

444
544
702
1,419
4,645
805
160
—

¥

5,141

¥ 8,719

¥

777
508
1,916
817
4,340
580
269
—

¥ 9,207

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries

2008

Capital expenditures:
Fine Ceramic Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Semiconductor Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applied Ceramic Products Group . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electronic Device Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Telecommunications Equipment Group . . . . . . . . . . . . . . . . . . . . . .
Information Equipment Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years ended March 31,
2009
2010
(Yen in millions)

¥

9,253
8,752
10,71425,8552,317
15,475
6,056
6,679

¥

5,405
7,199
14,396
15,056
3,898
11,865
2,461
2,775

¥

1,814
5,998
14,756
5,730
2,876
3,471
1,923
1,301

¥

85,101¥

63,055¥37,869March 31,
2009
(Yen in millions)

2008

Assets by reporting segment:
Fine Ceramic Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Semiconductor Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applied Ceramic Products Group . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electronic Device Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Telecommunications Equipment Group . . . . . . . . . . . . . . . . . . . . . .
Information Equipment Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in and advances to affiliates and unconsolidated
subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments and eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥53,713100,041
149,870
400,851
66,191
203,248
131,946¥

45,861
79,148
164,799
339,616
115,926
251,477
122,474

2010¥

49,430100,094
209,170
346,844112,750
250,222
128,898

1,105,860
906,159

1,119,301
693,505

1,197,408
711,508

16,753(52,026)

19,376(58,380)

1,461(61,660)¥1,976,746¥1,773,802¥1,848,717

Information for revenue from external customers by destination and long-lived assets based on physical location
as of and for the years ended March 31, 2008, 2009 and 2010 are summarized as follows:
Geographic segments
2008

Years ended March 31,
2009
2010
(Yen in millions)

Net sales:
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
United States of America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 507,837
229,830
248,760
232,425
71,584¥ 473,387
200,483
201,502
183,347
69,867¥ 470,643
198,058
180,861
172,510
51,733

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,290,436¥1,128,586¥1,073,805

F-62

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries

2008

March 31,
2009
(Yen in millions)2010

Long-lived assets:
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
United States of America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥204,170
20,94917,77635,235
7,769¥190,488
15,59016,56735,627
7,782¥176,884
14,373
12,99328,007
7,842

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥285,899¥266,054¥240,099

There are no individually material countries with respect to revenue from external customers and long-lived
assets in Europe, Asia and Others.
20. EARNINGS PER SHARE
A reconciliation of the numerators and the denominators of basic and diluted earnings per share computations are
as follows:
Years ended March 31,
2008
2009
2010
(Yen in millions except per share amounts)

Net income attributable to shareholders of Kyocera Corporation . . . . .

¥107,244¥ 29,506¥ 40,095

Basic earnings per share:
Net income attributable to shareholders of Kyocera
Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

566.58157.27218.47

Diluted earnings per share:
Net income attributable to shareholders of Kyocera
Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

565.80157.23218.47

Years ended March 31,
2009(shares in thousands)

2010

2008

Basic average number of shares outstanding . . . . . . . . . . . . . . . . . . . . .
Dilutive effect of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted average number of shares outstanding . . . . . . . . . . . . . . . . . . .

F-63

189,283261
189,544

187,618
43
187,661

183,525—
183,525

Notes to The Consolidated Financial Statements—(Continued)
Kyocera Corporation and Consolidated Subsidiaries
21. SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental information related to the Consolidated Statements of Cash Flows is as follows:
Years ended March 31,
2008
2009
2010
(Yen in millions)

Cash paid during the year:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-cash investing and financing activities:
Obtaining assets by entering into capital lease . . . . . . . . . . . . . . . . . . . . . . .
Acquisitions of businesses:
Fair value of assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of liabilities assumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,217
66,989¥648
51,927¥ 2,675
20,988¥ 1,043¥

1,676¥ 1,557¥32,959 ¥ 180,951 ¥ 8,036(5,537) (118,694) (1,780)
—
(32)
(985)
(939)
(14,784)(942)

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26,48347,441

4,329

Additional payment for acquisitions of businesses in the previous year . . .

—

71

386

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥26,483¥ 47,512¥ 4,715

22. SUBSEQUENT EVENT
Kyocera has evaluated subsequent events requiring recognition or disclosure in the financial statements during
the period from April 1, 2010 through the date that the financial statements are issued. During the period, nomaterial subsequent events were identified.

F-64

SIGNATURES
Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, Kyocera certifies that itmeets all of the requirements for filing on Form 20-F and has duly caused this annual report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Kyocera Corporation(Company)
By

June 30, 2010

/S/ SHOICHI AOKI
Shoichi Aoki
Director, Managing Executive Officer
and General Manager ofCorporate Financial & Accounting GroupINDEX OF EXHIBITS
Exhibit
NumberDescription

1.1

Articles of Incorporation (English translation)

1.2

Share Handling Regulations of the Registrant (English translation)

1.3

Regulations of the Board of Directors of the Registrant (English translation)

1.4

Regulations of the Board of Corporate Auditors of the Registrant (English translation)

2.1

Amended and Restated Deposit Agreement, dated as of June 29, 1998 among Kyocera Corporation,
Citibank N.A. as Depositary and all owners and holders from time to time of American Depositary
Receipts, as amended by Amendment No.1 thereto, dated as of January 5, 1999 (incorporated byreference to the Registrant’s annual report on Form 20-F filed on September 24, 2001), as further
amended by Amendment No.2 thereto, dated as of December 21, 2007, including the form ofAmerican Depositary Receipt (incorporated by reference to Post-effective Amendment No.2 to theRegistrant’s Registration Statement on Form F-6 field on December 4, 2007 (file no. 333 - 07222))

8.1

List of Significant Subsidiaries (See “Organizational Structure” in Item 4.C. of the Registrant’s
annual report on Form 20-F)

11.1

Code of Ethics (incorporated by reference to the Registrant’s annual report on Form 20-F filed on
July 5, 2007)

12.1

Certification of the principal executive officer of the Registrant required by Rule 13a-14(a)12.2

Certification of the principal financial officer of the Registrant required by Rule 13a-14(a)13.1

Certification of the principal executive officer of the Registrant required by Rule 13a-14(b) andSection 1350 of Chapter 63 of Title 18 of the United States Code

13.2

Certification of the principal financial officer of the Registrant required by Rule 13a-14(b) andSection 1350 of Chapter 63 of Title 18 of the United States Code

15.1

Consent of Kyoto Audit Corporation with respect to its report on the audit of the financial statements
included in the Registrant’s annual report on Form 20-F

Exhibit 1.1(TRANSLATION)

ARTICLES OF INCORPORATION

June 25, 2009

KYOCERA CORPORATION

(TRANSLATION)
ARTICLES OF INCORPORATIONOFKYOCERA CORPORATIONCHAPTER I
GENERAL PROVISIONS
Article 1.

Trade Name

The name of the Company shall be “KYOCERA KABUSHIKI KAISHA” (in English “KYOCERACORPORATION”).
Article 2.

Objects

The objects of the Company shall be to engage in the following businesses:(1) Manufacture and sale of and research on fine ceramics and various kinds of products utilizing fineceramics;(2) Manufacture and sale of and research on single crystal materials and various kinds of products utilizing
single crystal materials;(3) Manufacture and sale of and research on composite materials;(4) Manufacture and sale of and research on specialty plastics;(5) Manufacture and sale of and research on measurement instruments for electronics;(6) Manufacture and sale of and research on electronic and electric instruments and parts thereof;(7) Manufacture and sale of and research on component parts of automobiles;(8) Manufacture and sale of and research on precious metals, precious stones and semiprecious stones andvarious kinds of products utilizing precious metals, precious stones and semiprecious stones;(9) Manufacture and sale of and research on accessories and interior and exterior decorations andornaments;(10) Wholesales and retail sale of health foods;(11) Manufacture and sale of and research on material and equipment for medical use;(12) Manufacture and sale of and research on equipment utilizing solar energy;(13) Manufacture and sale of and research on optical machinery and instruments and precision machineryand instruments and parts hereof;(14) Manufacture and sale of and research on machinery and equipment for business use and machinery andequipment for industrial use and parts thereof;(15) Manufacture and sale of and research on photosensitive materials for photographic use;(16) Design, control and contract of construction relating to public works, building, electric equipment andpiping construction;(17) Sale, purchase, lease, maintenance and brokerage of real estate;(18) Lease, maintenance and management of facilities relating to sports, recreation, medical care, hotels andrestaurants, and the travel agency business;(19) Road freight handling and warehousing;-1-(20) Business relating to non-life insurance agency and life insurance canvassing, and general leasing,factoring and finance business;(21) Sale and purchase of various kinds of plants and technology related thereto;(22) Design and sale of software relating to computers;(23) Disposition through sale and the like and acquisition through purchase and the like of patents and otherindustrial property rights and know-how appertaining to the preceding items and acting as intermediaryin such transactions;(24) Businesses relating to import and export of any of the foregoing items; and(25) All commercial activities relating or incidental to any of the foregoing.
Article 3.

Location of Principal Office

The principal office of the Company shall be located in Kyoto City.
Article 4.

Organizations

The Company shall have the following organizations other than the General Meeting of Shareholders andDirectors.
(1) Board of Directors(2) Corporate Auditors(3) Board of Corporate Auditors(4) Accounting Auditors
Article 5.

Public Notices

Method to give public notices by the Company shall be electronic public notice, provided, however, that if,
due to accident or other unavoidable reason, the use of the electronic public notice becomes impossible, public
notices by the Company shall appear in The Nihon Keizai Shimbun.
CHAPTER IISHARES
Article 6.

Total Number of Shares Possible to be Issued

The total number of shares possible to be issued by the Company shall be 600,000,000.
Article 7.

Acquisition of its Own Shares by the Company

The Company may, under the provisions of Article 165, Paragraph 2 of the Corporation Act, acquire its own
shares through market, etc., pursuant to a resolution of the Board of Directors.
Article 8.

Number of Shares Constituting a Share Unit

The number of shares constituting a single share unit of the Company shall be 100.
Article 9.

Rights Relating to Shares not Constituting a Full Share Unit

Shareholders of the Company cannot exercise their rights relating to shares not constituting a full share unitthat they own except for the following:(1) The right provided for in the provisions of Article 189, Paragraph 2, of the Corporation Act;-2-

(2) The right to make a request provided for in the provisions of Article 166, Paragraph 1 of the Corporation
Act;(3) The right to receive allocation of offered shares and offered stock acquisition rights pursuant to thenumber of shares that the shareholders own; and(4) The right to make a request provided for in the immediately following Article.
Article 10.

Request to Sell Shares by Shareholders Holding Shares not Constituting a Full Share Unit

Shareholders of the Company may, in accordance with the provisions of the Share Handling Regulations of
the Company, require the Company to sell such number of shares as will, when aggregated with the shares notconstituting a full share unit owned by them, constitute a full share unit.
Article 11.

Manager of Shareholders Register

1. The Company shall have a Manager of the Shareholders Register.
2. The Manager of the Shareholders Register and its management office shall be determined by a resolutionof the Board of Directors and public notice thereof shall be given.
3. The preparation and keeping of the Shareholders Register and the Register of Stock Acquisition Rights
and other matters relating to the share handling of the Shareholders Register and the Register of Stock
Acquisition Rights shall be entrusted to the Manager of the Shareholders Register, and the Company shall nothandle them.
Article 12.

Share Handling Regulations

The matters relating to the share handling and fees relating to the shares of the Company shall be provided
for in the Share Handling Regulations of the Company established by the Board of Directors in addition to thelaws and regulations and these Articles of Incorporation.
CHAPTER III
GENERAL MEETING OF SHAREHOLDERS
Article 13.

Convocation of General Meeting of Shareholders

An Ordinary General Meeting of Shareholders of the Company shall be convened within three months after
the last day of each business year and Extraordinary General Meeting of Shareholders shall be convened
whenever necessary.
Article 14.

Record Date of Ordinary General Meeting of Shareholders

The record date of the voting rights at the Ordinary General Meeting of Shareholders of the Company shallbe March 31 in each year.
Article 15.

Person to Convene General Meeting of Shareholders and the Chairman

1. A General Meeting of Shareholders shall be convened by the President, and the President shall take thechair.
2. Should the President be unable to so act, one of the other Directors in the order determined in advance by
the Board of Directors shall convene the General Meeting of Shareholders and take the chair.
-3-Article 16.

Internet Disclosure and Deemed Provision of Reference Documents for General Meeting of
Shareholders, etc.

The Company may, by disclosing the information relating to the matters that shall be described or indicatedin reference documents for the General Meeting of Shareholders, business report, financial statements andconsolidated financial statements through Internet in accordance with the Ministerial Ordinance of the Ministryof Justice, in connection with the convocation of the General Meeting of Shareholders, deem that it has provided
the same to the shareholders.
Article 17.

Method of Resolutions

1. Unless otherwise provided for by the laws and regulations or these Articles of Incorporation, resolutionsof a General Meeting of Shareholders shall be adopted by a majority of the voting rights of the shareholders whoare entitled to exercise the voting rights, present at the meeting.
2. Resolutions pursuant to Article 309, Paragraph 2 of the Corporation Act shall be adopted by two-thirds ormore of the voting rights of the shareholders, who are entitled to exercise the voting rights, present at themeeting, at which the shareholders holding one-third or more of the voting rights of all shareholders who areentitled to exercise the voting rights must present.
Article 18.

Exercise of Voting Rights by Proxy

1. A shareholder of the Company may exercise his voting rights at a General Meeting of Shareholders by
proxy who shall be another shareholder of the Company possessing voting rights.
2. In case of the preceding paragraph, a shareholder or proxy shall submit to the Company a document
evidencing his proxy right at each General Meeting of Shareholders.

CHAPTER IV
DIRECTORS AND BOARD OF DIRECTORS
Article 19.

Number of Directors

The Company shall have not more than twenty Directors.
Article 20.

Method of Election of Directors

1. Directors shall be elected at a General Meeting of Shareholders.
2. The election of Directors shall be made by a majority of voting rights of shareholders, who are entitled toexercise the voting rights present at the meeting, at which the shareholders holding one-third or more of thevoting rights of all shareholders who are entitled to exercise the voting rights must present.
3. For the election of Directors, no cumulative voting shall be used.
Article 21.

Term of Office of Directors

1. The term of office of a Director shall end at the adjournment of the Ordinary General Meeting of
Shareholders for the last business year ending within two years after assumption of office.
2. The term of office of the Director elected to increase the number of the Directors or to fill a vacancy shallterminate when the term of office of the other Directors in office shall expire.
-4-Article 22.

Representative Director, Executive Directors, Chairman Emeritus, Advisors and Counsellors

1. The Board of Directors shall appoint, by resolution, Representative Directors.
2. The Board of Directors may appoint, by resolution, a Chairman of the Board of Directors and a President
and Director, one or more Vice-Chairmen and Directors, Executive Vice-Presidents and Directors, Senior
Managing Directors, Managing Directors and Advisors and Directors.
3. The Board of Directors may appoint, by resolution, a Chairman Emeritus.
4. The Board of Directors may appoint, by resolution, Advisors and Counsellors.
Article 23.

Remuneration, etc. of Directors

Remunerations, bonuses and any other financial benefits received by Directors from the Company ascompensation for undertaking their functions (hereinafter referred to as the “Remuneration, etc.”) shall be
determined by resolution at a General Meeting of Shareholders.
Article 24.

Person to Convene the Board of Directors and the Chairman

1. Unless otherwise provided for by the laws and regulations, the Chairman of Board of Directors shallconvene the meeting of the Board of Directors and take the chair.
2. Should there be a vacancy for the Chairman of Board of Directors or should the Chairman of the Board of
Directors be unable to so act, the President shall, and should the President be unable to so act, one of the other
Directors in the order determined in advance by the Board of Directors shall convene the Board of Directors andtake the chair.
Article 25.

Convocation Notice of Meetings of Board of Directors

1. Convocation notice of meetings of the Board of Directors shall be dispatched to each Director andCorporate Auditor at least three days prior to the date set for such meetings; provided, however, that such period
may be shortened in case of emergency.
2. Board of Directors may be held without taking convocation procedures if unanimous consent is obtained
from all Directors and the Corporate Auditors.
Article 26.

Omission of Resolution in Board of Directors

The Company may deem that the resolution at the meeting of Board of Directors to approve the matter that
requires the resolution at the meeting of Board of Directors has been adopted, when all Directors who are able toparticipate in a resolution of such matter have given their consents thereto in writing or through electronic record,
except for the case where any of the Corporate Auditors raise objection against it.
Article 27.

Board of Directors Regulations

Unless otherwise provided for by the laws and regulations or these Articles of Incorporation, mattersconcerning the Board of Directors shall be provided for in the Board of Directors Regulations established by the
Board of Directors.

-5-

CHAPTER VCORPORATE AUDITORS AND BOARD OF CORPORATE AUDITORS
Article 28.

Number of Corporate Auditors

The Company shall have not more than five Corporate Auditors.
Article 29.

Method of Election of Corporate Auditors

1. Corporate Auditors shall be elected at a General Meeting of Shareholders.
2. The election of Corporate Auditors shall be made by a majority of voting rights of shareholders, who areentitled to exercise the voting rights present at the meeting, at which the shareholders holding one-third or moreof the voting rights of all shareholders who are entitled to exercise the voting rights must present.
Article 30.

Term of Office of Corporate Auditors

1. The term of office of a Corporate Auditor shall end at the adjournment of the Ordinary General Meetingof Shareholders for the last business year ending within four years after assumption of office.
2. The term of office of the Corporate Auditor elected to fill a vacancy shall terminate when the term ofoffice of the other Corporate Auditors in office shall expire.
Article 31.

Full-time Corporate Auditor(s)The Board of Corporate Auditors shall elect, by resolution, full-time Corporate Auditor(s).
Article 32.

Remuneration etc. of Corporate Auditors

Remuneration etc. of Corporate Auditors shall be determined by resolution at a General Meeting of
Shareholders.
Article 33.

Convocation Notice of Meetings of Board of Corporate Auditors

1. Convocation notice of meetings of the Board of Corporate Auditors shall be dispatched to each Corporate
Auditor at least three days prior to the date set for such meetings; provided, however, that such period may be
shortened in case of emergency.
2. Board of Corporate Auditors may be held without taking the convocation procedures if unanimous
consent is obtained from all Corporate Auditors.
Article 34.

Regulations of Board of Corporate Auditors

Unless otherwise provided for by the laws and regulations or these Articles of Incorporation, mattersconcerning the Board of Corporate Auditors shall be provided for in the Regulations of the Board of Corporate
Auditors established by the Board of Corporate Auditors.
Article 35.

Exemption from Liability of Outside Corporate Auditor

The Company may, under the provisions of Article 427, Paragraph 1 of the Corporation Act, enter into acontract with the Outside Corporate Auditor, to limit the liability for damages caused by his dereliction of duty,
provided, that the maximum amount of liability pursuant to such contract shall not exceed the minimum amountof liability provided for in the Article 425, Paragraph 1 of the Corporation Act.
-6-

CHAPTER VI
ACCOUNTS
Article 36.

Business YearThe business year of the Company shall be a one-year period commencing on April 1 in each year andending on March 31 of the following year.
Article 37.

Record Date of Dividends of Distributable Amount

1. Record date of the year-end dividends of the Company shall be March 31 in each year.
2. In addition to the preceding paragraph, the Company may distribute the dividends of distributable amountby setting record dates.
Article 38.

Interim Dividends

The Company may distribute interim dividends, by a resolution of the Board of Directors by setting a record
date as of September 30 in each year.
Article 39.

Period of Limitation for Dividends

If assets distributed as dividends are not collected within three years from the date when the distribution
thereof becomes due, the Company shall be exempt from its obligation to distribute such dividends.

-7-

Exhibit 1.2(TRANSLATION)SHARE HANDLING REGULATIONS

Amended: November 27, 2008
Enforced: January 5, 2009

KYOCERA CORPORATIONSHARE HANDLING REGULATIONSOFKYOCERA CORPORATIONCHAPTER I
GENERAL PROVISIONS
Article 1.

PurposeMatters concerning the handling of shares in the Company (including, without limitation, procedures forexercising shareholders’ rights) shall be governed by these Regulations in accordance with the Articles ofIncorporation, as well as the rules established by the Japan Securities Depositary Center, Inc. (hereinafterreferred to as “JASDEC”) and securities firms and other account management institutions at which shareholders
open their transfer accounts (hereinafter referred to as the “Securities Firm”).
Article 2.

Manager of the Shareholders’ Register

The manager of the shareholders’ register of the Company and its handling office shall be as follows:
Manager of the shareholders’ register:

Daiko Clearing Services Corporation
4-6, Kitahama 2-chome, Chuo-ku, Osaka

Handling office:

Daiko Clearing Services Corporation
Head Office, Stock Transfer Department
4-6, Kitahama 2-chome, Chuo-ku, Osaka

CHAPTER IIRECORDING IN THE SHAREHOLDERS’ REGISTER, ETC.
Article 3.

Recording in the Shareholders’ Register

1. Any changes to the matters entered in the shareholders’ register shall be made by a general shareholders
notice (sou kabunushi tsuchi) or any other notice given by JASDEC (excluding a notice provided for in Article
154, Paragraph 3 of the Law Concerning Book-Entry Transfer of Corporate Bonds and Shares, Etc. (the “BookEntry Transfer Law”) (hereinafter referred to as the “Individual Shareholder Notice (kobetsu kabunushi
tsuchi)”)).
2. In addition to the preceding paragraph, in the issue of new shares and any other cases provided for in laws
and regulations, the relevant matters entered in the shareholders’ register shall be changed without JASDEC’s
notice.
3. The shareholders’ register shall be recorded using letters and signs designated by JASDEC.
Article 4.

Notification as to Matters Entered in the Shareholders’ RegisterA shareholder shall notify his/her name and address through the Securities Firm and JASDEC, as prescribedby JASDEC. If changed, the same shall apply.
Article 5.

Representative of a Corporate Shareholder

A corporate shareholder shall notify its representative through the Securities Firm and JASDEC, asprescribed by JASDEC. If changed, the same shall apply.
-1-Article 6.

Representative of Joint Shareholders

Shareholders who jointly hold shares shall determine their representative, and notify the name and addressof the representative through the Securities Firm and JASDEC, as prescribed by JASDEC. If changed, the same
shall apply.
Article 7.

Statutory Agent

A shareholder’s statutory agent, such as parent (shinken sha) and guardian (kouken nin), shall notify his/hername and address through the Securities Firm and JASDEC, as prescribed by JASDEC. If changed or removed,
the same shall apply.
Article 8.

Notification of the Place where Shareholders Residing Abroad, Etc. Should Receive Notices

A shareholder residing abroad and a registered pledgee of shares or their statutory agent shall appoint astanding agent in Japan or determine a place to receive notices in Japan, and notify the name and address of thestanding agent or the place to receive notices through the Securities Firm and JASDEC, as prescribed by
JASDEC. If changed or removed, the same shall apply.
Article 9.

Method of Confirmation through JASDEC

If a shareholder’s notification to the Company is submitted through the Securities Firm and JASDEC, it
shall be deemed as a notification given by the shareholder himself/herself.
CHAPTER III
IDENTIFICATION OF SHAREHOLDERS
Article 10.

Identification of Shareholders

1. If a shareholder (including a shareholder who applied for an Individual Shareholder Notice) makes any
claim or exercises any other shareholders’ right (hereinafter referred to as the “Claim”), he/she shall attach orprovide the item which evidences that the Claim has been made by himself/herself (the “Material for Evidence”).
Provided, however, that this shall not apply if the Company may confirm that it is a Claim made by theshareholder himself/herself.
2. If a shareholder’s Claim against the Company has been made through the Securities Firm and JASDEC, it
shall be deemed as a Claim made by the shareholder himself/herself, and no Material for Evidence shall be
required.
3. In addition to the procedures in the preceding paragraphs, if a Claim is made by an agent, a power ofattorney signed or sealed by the shareholder shall be attached. The name and address of the agent shall need to beentered in the power of attorney.
4. Paragraphs 1 and 2 shall apply mutatis mutandis to an agent.
CHAPTER IV
PROCEDURES FOR EXERCISING SHAREHOLDERS’ RIGHTS
Article 11.

Minority Shareholders’ Rights

If a shareholder directly exercises any of his/her Minority Shareholders’ Rights provided for in Article 147,
Paragraph 4 of the Book-Entry Transfer Law against the Company, he/she shall exercise the same by a signed orsealed document, together with the receipt for the Individual Shareholder Notice.
-2-

Article 12.

Method of Requesting the Purchase of Shares Less Than One (1) Unit (tangen miman
kabushiki)

Any shareholder requesting a purchase of shares less than one (1) unit shall request the same through the
Securities Firm and JASDEC, as prescribed by JASDEC.
Article 13.

Determination of the Purchase Price

1. The purchase price per share applicable to a purchase request in the preceding article shall be the closing
price on the market managed by the Tokyo Stock Exchange on the day when the purchase request arrives at thehandling office of the manager of the shareholders’ register. Provided, however, that if the shares in the
Company are not traded on the market on such day, the purchase price per share shall be the closing price onsuch day on the market managed by the Osaka Securities Exchange.
2. If the shares in the Company are not traded on any of the stock/securities exchanges in the preceding
paragraph, or if the relevant day falls on a non-business day, the purchase price per share shall be the priceagreed upon in the first trade of the shares in the Company on the next day on the market managed by the Tokyo
Stock Exchange. If the shares in the Company are not traded on the market on such day, the purchase price pershare shall be the price agreed upon in the first trade of the shares in the Company on such day on the market
managed by the Osaka Securities Exchange.
3. The same shall apply on and after the next day, if the shares in the Company are not traded on any of thestock/securities exchanges in the preceding paragraph.
4. The purchase price shall be the amount calculated by multiplying the purchase price per share according
to the preceding paragraphs by the number of shares for which a purchase request is made.
Article 14.

Payment of the Purchase Price

1. Except as otherwise determined by the Company, the Company shall pay the purchase price on the fourth(4th) business day from the day immediately following the day when the purchase price per share is determined,
as prescribed by JASDEC. Provided, however, that if the purchase price is a price with rights such as distributionof a surplus and stock split, the Company shall pay the purchase price by the record date.
2. A person who requests a purchase may request the payment of a purchase price by remittance to the bankdeposit account designated by him/her, or by cash payment at the Japan Post Bank.
Article 15.

Transfer of Shares Purchased

The shares less than one (1) unit for which a purchase request has been made shall be transferred to theCompany’s transfer account on the day when the payment or payment procedures of the purchase price inaccordance with the preceding article is completed.
Article 16.

Method of Requesting the Purchase of Additional Shares Less Than One (1) Unit

If a shareholder holding shares less than one (1) unit requests a sale of the number of shares which, whenaggregated with the number of his/her shares less than one (1) unit, constitutes a unit share (tangen kabushiki)(hereinafter referred to as the “Request for Purchasing Additional Shares”), he/she shall make such request
through the Securities Firm and JASDEC, as prescribed by JASDEC.
Article 17.

Request for Purchasing Additional Shares in Excess of the Balance of Treasury Stock

If the total number of shares for which a Request for Purchasing Additional Shares is made on the same day
exceeds the number of the Company’s treasury stock to be transferred, all the Requests for Purchasing Additional
Shares on such day shall not become effective.
-3-

Article 18.

Effective Date of the Request for Purchasing Additional Shares

A Request for Purchasing Additional Shares shall become effective when it arrives at the handling office ofthe manager of the shareholders’ register.
Article 19.

Determination of the Price for Purchasing Additional Shares

1. The purchase price per additional share shall be the closing price on the market managed by the Tokyo
Stock Exchange on the effective date of the Request for Purchasing Additional Shares. Provided, however, that if
the shares in the Company are not traded on the market on such day, the purchase price per additional share shallbe the closing price on such day on the market managed by the Osaka Securities Exchange.
2. If the shares in the Company are not traded on any of the stock/securities exchanges in the preceding
paragraph, or if the relevant day falls on a non-business day, the purchase price per additional share shall be theprice agreed upon in the first trade of the shares in the Company on the next day on the market managed by the
Tokyo Stock Exchange. If the shares in the Company are not traded on the market on such day, the purchaseprice per additional share shall be the price agreed upon in the first trade of the shares in the Company on suchday on the market managed by the Osaka Securities Exchange.
3. The same shall apply on and after the next day, if the shares in the Company are not traded on any of thestock/securities exchanges in the preceding paragraph.
4. The price for additional shares shall be the amount calculated by multiplying the purchase price per
additional share according to the preceding paragraphs by the number of shares for which a Request for
Purchasing Additional Shares is made.
Article 20.

Transfer of Additional Shares Purchased

As prescribed by JASDEC, the Company shall apply for the transfer of the treasury stock equal to thenumber of shares for which a Request for Purchasing Additional Shares has been made to the transfer account of
the shareholder who has made the Request for Purchasing Additional Shares, on the day when the shareholder
who has made the Request for Purchasing Additional Shares remits the price for additional shares through the
Securities Firm, and the Company confirms the remittance of the price for additional shares to the bank deposit
account designated by the Company.
Article 21.

Period when the Acceptance of the Requests for Purchasing Additional Shares is Suspended

1. The Company shall suspend the acceptance of the Requests for Purchasing Additional Shares each year
for a period from the ten (10) business days prior to the days set forth below to such days:(1) March 31;(2) September 30; and(3) Any other days designated by JASDEC, such as a day to determine shareholders.
2. Notwithstanding the preceding paragraph, the Company may, if it deems necessary, set another period
when the acceptance of the Requests for Purchasing Additional Shares will be suspended.
CHAPTER V
SPECIAL TREATMENT FOR SPECIAL ACCOUNTS
Article 22.

Special Treatment for Special Accounts

Matters concerning the handling of special accounts, including the personal identification of shareholders
with respect to whom special accounts has been opened, shall be governed by the rules established by JASDEC
and the account management institutions for special accounts.
-4-

SUPPLEMENTARY PROVISIONS
Article 1.

Amendment to the Share Handling Regulations

Any amendments to these Regulations shall be subject to the resolution of the board of directors.

-5-

Exhibit 1.3(TRANSLATION)REGULATIONS OF THE BOARD OF DIRECTORS

Amended March 26, 2010

KYOCERA CORPORATIONREGULATIONS OF THE BOARD OF DIRECTORSOFKYOCERA CORPORATIONCHAPTER 1.
GENERAL PROVISIONS
Article 1.

PurposeAll matters relating to the Board of Directors of the Company shall be governed by these Regulations inaddition to laws and regulations and the Articles of Incorporation.
Article 2.

Organization

1. The Board of Directors shall consist of all Directors.
2. The Corporate Auditors shall attend meetings of the Board of Directors and, when necessary, express
their opinions thereat.
Article 3.

Meetings

Meetings of the Board of Directors shall, in principle, be held once a month; provided, however, thatextraordinary meetings may be held whenever necessary.
CHAPTER 2.
CONVOCATION
Article 4.

Persons Authorized to Convene Meetings

1. Unless otherwise provided for by the laws and regulations, the Chairman of Board of Directors shallconvene the meeting of the Board of Directors and take the chair.
2. Should there be a vacancy for the Chairman of Board of Directors or should the Chairman of the Board of
Directors be unable to so act, the President shall, and should the President be unable to so act, one of the other
Directors in the order determined in advance by the Board of Directors shall convene the Board of Directors andtake the chair.
Article 5.

Convocation Procedure

1. Convocation notice of meetings of the Board of Directors shall be dispatched to each Director andCorporate Auditor at least three days prior to the date set for such meetings; provided, however, that such period
may be shortened in case of emergency.
2. Meetings of the Board of Directors may be held without taking convocation procedures if unanimous
consent is obtained from all Directors and the Corporate Auditors.
CHAPTER 3.
PROCEEDINGS
Article 6.

Chairman

The Chairman of the Board of Directors shall preside over meetings of the Board of Directors. Should theoffice of the Chairman of the Board of Directors be vacant or should the Chairman of the Board of Directors be
unable to act in this capacity, the President shall act in his capacity, and further, should the President be unable toact in this capacity, one of the other Directors, in an order fixed in advance by the Board of Directors, shall act inhis capacity.
-1-Article 7.

Matters to be Submitted

Matters which must be submitted to meetings of the Board of Directors shall be set forth in Appendix 1
attached hereto.
Article 8.

Method of Resolutions

1. Resolutions of the Board of Directors shall be adopted by a majority of the Directors present, the quorum
being a majority of the Directors.
2. A Director who has a special interest in any matter to be acted upon by the Board of Directors shall not be
entitled to vote on such matter, in which case such Director shall not be counted for the purpose of establishing aquorum.
3. The Company may deem that the resolution at the meeting of Board of Directors to approve the matterthat requires the resolution at the meeting of Board of Directors has been adopted, when all Directors who areable to participate in a resolution of such matter have given their consents thereto in writing or through electronic
record, except for the case where any of the Corporate Auditors raise objection against it.
Article 9.

Ratification

1. Should it prove impossible to submit any particular matter to a meeting of the Board of Directors due toan emergency or other unavoidable reason, a Representative Director may, notwithstanding the provisions of thepreceding Article to the contrary, deal with the matter in such manner as he deems proper.
2. In the case set forth in the preceding paragraph, the Representative Director shall report the disposition ofsuch matter to the Board of Directors without delay and obtain its approval.
Article 10.

Attendance by Third Parties

The Board of Directors may, when it deems necessary, cause any person other than the Directors andCorporate Auditors attend a meeting of the Board of Directors and seek his opinion or explanation thereat.
Article 11.

Matters to be Reported

1. The President shall report on the conditions of the execution of the affairs of the Company to the Board of
Directors at least once every three (3) months.
2. Matters other than those provided in the preceding subparagraph which must be reported to meetings ofthe Board of Directors shall be set forth in Appendix 2 attached hereto.
Article 12.

Minutes

1. The substance of the proceedings of a meeting of the Board of Directors and the results thereof and othermatters as required by the laws and regulations shall be recorded in the minutes, and the Directors and Corporate
Auditors present at the meeting shall affix their names and seals to the minutes.
2. Such minutes shall be kept for ten (10) years at the head office of the Company.

-2-

CHAPTER 4.
MISCELLANEOUS PROVISIONS
Article 13.

Other Matters

Matters relating to the management of the Board of Directors which are not prescribed by laws andregulations, the Articles of Incorporation or these Regulations, shall, in the case of matters relating to the
convocation of a meeting of the Board of Directors, be determined by the person authorized to convene themeeting and, in all other cases, be determined by the Chairman of the meeting.
Article 14.

Procedure of Amendment

Amendment of these Regulations shall be approved by a resolution of the Board of Directors.

SUPPLEMENTARY PROVISIONS
These Regulations shall take effect on June 23, 2006
(Established)

March 30, 1959

(Amended)

July 1, 1971

(Amended)

May 15, 1987

(Amended)June 26, 1992

(Amended)August 23, 1993

(Amended)June 27, 1997

(Amended)

March 19, 2001

(Amended)

July 29, 2002

(Amended)June 23, 2006

(Amended)

March 26, 2010-3-

Appendix 1
Matters to Be Submitted to Meetingsof the Board of Directors
Items 1 through 11 hereinbelow constitute those matters which must be submitted to meetings of the Boardof Directors in accordance with Article 7 of the Regulations of the Board of Directors. With respect to items 7, 8
and 9, standard are determined but additional matters must be submitted as well.
Type of Matter

1.

Standards, Comments

Business plans(1) Annual business plans

Master plans and revised master plans are to besubmitted as part of annual business plans(2) Approval of numerical figures to be published forforecasted business results and revised forecasted
business results2.

Matters concerning General Meetings of Shareholders(1) Convocation of a General Meeting of Shareholders
and determining the agenda and proposals to besubmitted thereto(2) Fixing record date in order to confirm the list ofshareholders (if such record date is not provided forby the Articles of Incorporation)(3) Deciding whether a proposal submitted by ashareholder should be presented to a General Meetingof Shareholders(4) Deciding the order of those authorized to convene a
General Meeting of Shareholders(5) Deciding the order of those authorized to act as
Chairman of a General Meeting of Shareholders
3.

Matters concerning Closing of Accounts(1) Approval of accounting statements(1) Accounting statements for full-year, half-yearand each quarter which are to be approved by the
Board of Directors and/or prepared for public
disclosure in accordance with the law must be
submitted.
(Note:) “accounting statements” shall consist of
unconsolidated and consolidated balance sheets,
profit and loss statements, statements for changes
in equity and notes thereto, explanatory comments
to unconsolidated statements, consolidated cash
flows statements and business reports, etc.

(2) Deciding to pay an interim dividend and the amountthereof.
(3) Approval of forecasted dividends and revised
forecasted dividends.

Type of Matter

4.

Standards, Comments

Matters concerning Directors(1) Election and retirement of Representative Directors(2) Election and retirement of Executive Directors(3) Determination of duties of each Director(4) Determination of the order of the Directors who shallconvene a Meeting of the Board of Directors(5) Determination of the order of the Directors who shallact as Chairman at a Meeting of the Board of
Directors(6) Approval of engagement by a Director in any
competitive business(Note:) “competitive business” shall consist of a
Director, acting on his own behalf or as therepresentative or agent of another company,
engaging in a transaction which pertains to theordinary business of the Company.

(7) Approval of a transaction between a Director and theCompany(Note:) “transaction between a Director and theCompany” shall consist of Director, acting on his
own behalf or as the representative or agent ofanother company, engaging in a transaction with
the Company.

(8) Allocation of the remuneration of Directors aspreviously determined by the General Meeting of
Shareholders(9) Allocation of the bonuses of Directors as previously
determined by the General Meeting of Shareholders(10) Determination of the amount and manner of paymentof retirement allowances or condolence money
payable to Directors as previously determined by theGeneral Meeting of Shareholders(11) Basic policy for corporate governance and internal
control of Kyocera Group5.

Matters concerning Shares(1) Offering of shares to be newly issued or of treasury
shares to be disposed of (Issuance of new shares foroffering, etc.)(2) Stock splits(3) Allocation of shares without consideration(4) Appointment of a manager of the shareholders
register and designation of its management office(5) Issuance of stock acquisition rights(6) Method for acquisition of its own stock by theCompany as per the approval at its General Meetingof Shareholders(7) Acquisition and cancellation of its own stock by theCompany

Type of Matter

6.

Standards, Comments

Matters concerning Personnel and Organization(1) Management of key personnel, i.e., General Managers
of divisions and officers in similar positions(2) Selection of support personnel to be seconded toimportant subsidiaries and affiliated companies(3) Appointment and dismissal of counselors andconsultants who are not employees(4) Establishment, relocation and closure of the head
office and branch offices(Note:) “head office” and “branch offices” shallconsist of those places of business which have beenregistered as a head office or a branch office in thecommercial registry.

(5) Establishment, relocation and closure of a principal
place of business7.

Matters concerning Businesses(1) Planning of new business in conjunction with a
newly-established business department(2) Business collaborations which are important to thebusiness of the Company(Note:) whether or not a matter is “important to thebusiness of the Company” shall be determinedbased on reference to the applicable standards
which require disclosure of important matters to
Stock Exchanges.

(3) Sale or acquisition of a business(4) A significant amount of investment or the disposition
thereof(5) Acquisition or disposal of shares in conjunction withchanges of subsidiaries and affiliated companies(including the establishment and liquidation ofsubsidiaries and affiliated companies)

8.

(Note:) a minimum of ¥100,000,000 per transaction(Note:) “in conjunction with changes ofsubsidiaries and affiliated companies” shall consistof cases where a company becomes a subsidiary oraffiliated company pursuant to such acquisition ofshares and cases where such company is no longer
a subsidiary or affiliated company in consequenceof such disposal of shares.

Matters concerning Assets(1) Acquisition of important assets(2) Transfer or destruction of important assets(3) Loaning important assets to a third party(4) Borrowing important assets from a third party(5) Leasing important assets

Regarding items (1) through (7):- Real property, contracted construction:a minimum of ¥3,000,000,000 per transaction- Personal property, software: a minimum of¥1,000,000,000 per transaction- Intellectual property rights, (including know-how
but excluding software):a minimum of ¥500,000,000 per transaction

Type of Matter

Standards, Comments(6) Establishment of security interests in important assets(7) Selection of a contractor for important construction
and determination of the terms and conditions of thecontract therefor
9.

Matters concerning Funds(1) Issuance of bonds and bonds with stock acquisitionrights(Note:)(2) A significant amount of loan(2) a minimum of ¥100,000,000 per transaction(3) Guarantee of a significant amount of debt

(3) a minimum of ¥100,000,000 per transaction(4) Discharge of a significant amount of debt

(4) a minimum of ¥100,000,000 per transaction(5) A significant amount of donation(5) a minimum of ¥100,000,000 per transaction(6) A significant amount of borrowing(6) a minimum of ¥5,000,000,000 per transaction,
provided, however, that in case Kyocera
Corporation makes cash borrowings fromconsolidated subsidiaries in which its ownershipexceeds 50%, in order to efficiently manage suchfunds within Kyocera group, such cash borrowings
shall be equivalent to deposits received from such
subsidiaries, and accordingly shall be exempt fromthis standard.

10. Establishment and Revocation of Important
Regulations(1) Regulations of the Board of Directors(2) Regulations for Employee Retirement Allowances(3) Share Handling Regulations(4) Regulations to Prevent Insider Transactions(5) Regulations concerning Management of Funds(6) Regulations concerning Transfers, Business Trips andDuties of Employees
11.

Others(1) Institution of or response to a lawsuit which is ofimportance in the management of the Company(2) Settlement or withdrawal of a lawsuit which is ofimportance in the management of the Company(3) Decision on the policy or compromise of a dispute
which is of importance in the management of theCompany(4) Other important or extraordinary matters concerning
the execution of business of the Company

With respect to items (1), (2) and (3), whether or
not a matter is “of important in the management of
the Company” shall be determined based onreference to the applicable standards which require
disclosure of important matters to Stock
Exchanges.

Appendix 2
Matters to Be Reported to Meetingsof the Board of Directors
Those matters which must be reported to meetings of the Board of Directors in accordance with Article 11.2of the Regulations of the Board of Directors are as follows:

Matters to Be Reported(1)Monthly business plans and the status of their implementation(2)

Important facts concerning competing transactions by Directors(3)

Important facts concerning transactions between Directors and the Company(4)

Important funding plans, investment plans business acquisition plans and other important businessplans concerning subsidiaries,(5)

Other matters deemed necessary by the Board of Directors

Exhibit 1.4(TRANSLATION)REGULATIONS OF THE BOARD OF CORPORATE AUDITORSKYOCERA CORPORATION
THE BOARD OF CORPORATE AUDITORS

Amended on June 1, 2010

REGULATIONS OF THE BOARD OF CORPORATE AUDITORSOFKYOCERA CORPORATION
Article 1.

PurposeAll matters relating to the Board of Corporate Auditors of the Company shall be governed by laws andregulations and the Articles of Incorporation and by these Regulations.
Article 2.

Organization

1.

The Board of Corporate Auditors shall consist of all Corporate Auditors.

2.

The Board of Corporate Auditors shall appoint Standing Corporate Auditors and a Chairman of theBoard of Corporate Auditors.

Article 3.

Purpose of the Board of Corporate Auditors

The Board of Corporate Auditors shall receive reports on, discuss and resolve important matters relating to
the auditing; provided, however, that each Corporate Auditor shall not be prevented from exercising its powers.
Article 4.

Duties of the Board of Corporate Auditors

The Board of Corporate Auditors shall undertake the following duties; provided, however, that no decision
as set forth in item (3) may prevent each Corporate Auditor from exercising its powers:(1) Preparation of Audit Reports;(2) Appointment and dismissal of Standing Corporate Auditors; and(3) Determination of auditing guidelines, methods of research on status of business and assets and othermatters related to conduct of duties of Corporate Auditors.
Article 5.

Appointment and Dismissal of Standing Corporate Auditors

The Board of Corporate Auditors shall appoint or dismiss Standing Corporate Auditors from among the
Corporate Auditors by resolution of the Board of Corporate Auditors.
Article 6.

Chairman

1. The Board of Corporate Auditors shall elect a Chairman from among the Corporate Auditors by
resolution of the Board of Corporate Auditors.
2. The Chairman of the Board of Corporate Auditors shall conduct these duties delegated to him/her by the
Board of Corporate Auditors, as well as the duties set forth in paragraph 1 of Article 9; provided, however, that,
the Chairman shall not prevent each Corporate Auditor from exercising its powers.
Article 7.

Specified Corporate Auditor

The Board of Corporate Auditors shall appoint the Chairman as a Specified Corporate Auditor, and suchSpecified Corporate Auditor shall undertake the following duties:(1) Receiving from the Directors the business report and its annexed detailed specifications and financialrelated statements and delivering the same to the other Corporate Auditors;(2) Notifying the Representative Directors of the contents of the Audit Report prepared by the Board of
Corporate Auditors concerning the business report and its annexed detailed specifications;-1-(3) Establishing an agreement with the Representative Directors as to the date on which the notice referred
to in the preceding item shall be provided;(4) Receiving notice of the contents of the Accounting Audit Report prepared by the Accounting Auditorsand notifying the other Corporate Auditors of the contents of the same;(5) Establishing an agreement with the Representative Directors and the Accounting Auditors as to thedate on which the notice referred to in the preceding item shall be received;(6) Notifying the Representative Directors and the Accounting Auditors of the contents of the Audit
Report prepared by the Board of Corporate Auditors concerning the financial-related statements; and(7) Establishing an agreement with the Representative Directors as to the date on which the notice referred
to in the preceding item shall be provided.
Article 7.

Specified Corporate Auditor

The Board of Corporate Auditors shall appoint the Chairman as a Specified Corporate Auditor, and suchSpecified Corporate Auditor shall undertake the following duties:(1) Receiving from the Directors the business report and its annexed detailed specifications and financialrelated statements and delivering the same to the other Corporate Auditors;(2) Notifying the Representative Directors of the contents of the Audit Report prepared by the Board of
Corporate Auditors concerning the business report and its annexed detailed specifications;(3) Establishing an agreement with the Representative Directors as to the date on which the notice referred
to in the preceding item shall be provided;(4) Receiving notice of the contents of the Accounting Audit Report prepared by the Accounting Auditorsand notifying the other Corporate Auditors of the contents of the same;(5) Establishing an agreement with the Representative Directors and the Accounting Auditors as to thedate on which the notice referred to in the preceding item shall be received;(6) Notifying the Representative Directors and the Accounting Auditors of the contents of the Audit
Report prepared by the Board of Corporate Auditors concerning the financial-related statements; and(7) Establishing an agreement with the Representative Directors as to the date on which the notice referred
to in the preceding item shall be provided.
Article 8.

Meetings

Meetings of the Board of Corporate Auditors shall, in principle, be held at least four (4) times each fiscal
year; provided, however, that extraordinary meetings may be held whenever necessary.
Article 9.

Person Entitled to Convene Meetings

1. The Chairman shall convene and manage the meetings of the Board of Corporate Auditors.
2. Any Corporate Auditor may request the Chairman, to convene a meeting of the Board of Corporate
Auditors.
3. If, notwithstanding any request as set forth in the immediately preceding paragraph, the Chairman does
not convene a meeting of the Board of Corporate Auditors, the requesting Corporate Auditor may convene andmanage such meeting of the Board of Corporate Auditors.
Article 10. Convocation Procedure
1. In order to convene a meeting of the Board of Corporate Auditors, a notice of the meeting of the Board of
Corporate Auditors shall be dispatched to each Corporate Auditor at least three (3) days prior to the date of suchmeeting.
-2-

2. The convocation procedure for a meeting of the Board of Corporate Auditors may be omitted with theconsent of all Corporate Auditors.
Article 11. Manner of Adopting Resolutions
1. Resolutions of the Board of Corporate Auditors shall be adopted by the majority vote of the Corporate
Auditors.
2. Resolutions shall be adopted following deliberation based on sufficient materials.
Article 12.

Resolutions on Auditing Policy

1. Matters such as auditing policy, auditing plan, auditing methods and allocation of duties shall be
determined by resolution of the Board of Corporate Auditors.
2. All matters other than those referred to in the immediately preceding paragraph, which any Corporate
Auditor deems necessary in conducting its duties, including budget for auditing expenses, shall be determined byresolution of the Board of Corporate Auditors.
3. Substance of the following systems and other matters shall be determined by resolution of the Board of
Corporate Auditors, and the Board of Corporate Auditors shall request the Directors to improve such systems andother matters:(1) Matters concerning employee supporting the Corporate Auditors’ conduct of their duties;(2) Matters concerning independence from the Directors of the employees referred to in the immediately
preceding paragraph;(3) A system concerning reports to the Corporate Auditors, including those from the Directors andemployees; and(4) Other systems to ensure the audits by the Corporate Auditors are conducted effectively.
Article 13.

Regular Meetings with Representative Directors, etc.

1. The Board of Corporate Auditors shall seek to promote mutual understanding between the Representative
Directors and the Board of Corporate Auditors by, among other things, holding meetings with the Representative
Directors on a regular basis and exchanging opinions on issues to be addressed by the Company, improvement of
the environment for audit by the Corporate Auditors and important auditing issues, etc., as well as by making
requests judged to be necessary.
2. The Board of Corporate Auditors shall explain auditing policy, auditing plan and status of implementationof auditing and the effect thereof, as appropriate, to the Representative Directors and the Board of Directors.
3. The Board of Corporate Auditors shall, based on the system provided in paragraph 3, item 3 of theimmediately preceding Article, receive reports from Directors and employees on matters determined, in
consultation with the Directors, to be reported to the Board of Corporate Auditors by the Directors and theemployees, as well as such matters as may be provided by law.
Article 14.

Reports to the Board of Corporate Auditors

1. Each Corporate Auditor shall report to the Board of Corporate Auditors on the status of conducting its
duties on a regular basis and from time to time as well as whenever requested by the Board of Corporate
Auditors.
-3-

2. A Corporate Auditor who receives a report from the Accounting Auditors, the Directors, the employees of
any internal auditing department, etc. or other staff shall report the same to the Board of Corporate Auditors.
3. The Board of Corporate Auditors shall request the Accounting Auditors, the Directors, the employees of
any internal auditing department, etc. and other staff, to make reports whenever necessary.
4. In connection with paragraphs 1 through 3 of this Article, if any of the Corporate Auditors, the
Accounting Auditors, the Directors, the employees of any internal auditing department, etc. or other staff reports
to all of the Corporate Auditors any matter that should be reported to the Board of Corporate Auditors, no further
report to the Board of Corporate Auditors on such matter will be necessary.
Article 15.

Measures for Reports

If the Board of Corporate Auditors receives any of the following reports, the Board of Corporate Auditors
shall conduct necessary research and take appropriate measures depending on the situation:(1) A report from a Director stating that such Director has discovered a fact which may be materially
prejudicial to the Company;(2) A report from an Accounting Auditor that such Accounting Auditor has discovered misconduct or amaterial fact violating laws or regulations or the Articles of Incorporation, in connection with a
Director’s conduct of duties; or(3) A report from a Director or an employee on such matters as have been determined in advance upon
consultation with the Directors.
Article 16.

Preparation of Audit Report

1. The Board of Corporate Auditors shall prepare an Audit Report based on the Audit Report(s) prepared byeach of the Corporate Auditors after deliberation.
2. If the content of the Audit Report prepared by the Board of Corporate Auditors differs from that of the
Audit Report prepared by any of the Corporate Auditors, and if such Corporate Auditor so requests, the Board of
Corporate Auditors shall append the matters set forth in such Corporate Auditor’s Audit Report to the Audit
Report prepared by the Board of Corporate Auditors.
3. Either the signature or the name and seal (including electronic signature) of each Corporate Auditor shallbe affixed to the Audit Report prepared by the Board of Corporate Auditors. The Standing Corporate Auditorsand outside Corporate Auditors shall be identified or recorded as such in the Audit Report.
4. Paragraphs 1 through 3 of this Article shall apply mutatis mutandis to interim financial statements or
consolidated statements, if prepared by the Company.
Article 17.

Consent to the Appointment of the Corporate Auditors

1. The following matters relating to the appointment of the Corporate Auditors shall be handled byresolution of the Board of Corporate Auditors:(1) Consent to submission to the General Meeting of Shareholders of any proposal relating to theappointment of Corporate Auditor(s);(2) Request to include in the agenda of the General Meeting of Shareholders any appointment of Corporate
Auditor(s); and-4-

(3) Request to submit to the General Meeting of Shareholders any proposal relating to the appointment ofCorporate Auditor(s).
2. The immediately preceding paragraph shall apply mutatis mutandis to appointment of Corporate
Auditor(s) to fill a vacancy.
Article 18.

Consent, etc. to Appointment of Accounting Auditors

1. The Board of Corporate Auditors shall evaluate the appropriateness of re-appointment of Accounting
Auditors.
2. The following matters relating to the appointment, non-reappointment and dismissal of the Accounting
Auditors shall be handled by resolution of the Board of Corporate Auditors:(1) Consent to submission to the General Meeting of Shareholders of any proposal relating to theappointment of Accounting Auditor(s);(2) Consent to inclusion in the agenda of the General Meeting of Shareholders of the dismissal or
non-reappointment of Accounting Auditors;(3) Request to submit to the General Meeting of Shareholders any proposal relating to the appointment of
Accounting Auditor(s);(4) Request to include in the agenda of the General Meeting of Shareholders the appointment, dismissal or
non-reappointment of Accounting Auditor(s); and(5) Appointment of a provisional Accounting Auditor in the case of absence of an Accounting Auditor.
3. Consent, to be given by all Corporate Auditors, to dismiss any Accounting Auditor for any of the reasons
as provided by law shall be obtained upon consultation at a meeting of the Board of Corporate Auditors. In suchcase, a Corporate Auditor nominated by the Board of Corporate Auditors shall report such dismissal and thereason therefor at the General Meeting of Shareholders to be held immediately following such dismissal.
4. The consent referred to in the immediately preceding paragraph may be given in written form or byelectronic record in case of urgent necessity.
Article 19.

Consent to Remuneration, etc. of Accounting Auditors

Consent to remuneration of the Accounting Auditors or those who provisionally conduct the duties of an
Accounting Auditor shall be resolved at the Board of Corporate Auditors.
Article 20.

Consent to Partial Exemption of Directors from their Liability

1. The following consents, to be given by all Corporate Auditors, shall be obtained upon consultation at a
meeting of the Board of Corporate Auditors:(1) Consent to submission to the General Meeting of Shareholders of any proposal relating to partial
exemption of Directors from their liability;(2) Consent to submission to the General Meeting of Shareholders of any proposal relating to amendmentof the Articles of Incorporation to make it possible to partly exempt Directors from their liability; and(3) Consent to submission to the General Meeting of Shareholders of any proposal relating to amendmentof the Articles of Incorporation to make it possible to enter into agreements with outside Corporate
Auditors providing partial exemption of outside Corporate Auditors from their liability.
-5-2. The consents referred to in the immediately preceding paragraph may be given in written form or byelectronic record in case of urgent necessity.
Article 21.

Consent to Participate for Assistance

1. Consent, to be given by all Corporate Auditors, to participation by the Company in any shareholder
litigation in order to assist a defendant Director shall be obtained upon consultation at a meeting of the Board of
Corporate Auditors.
2. The consent referred to in the immediately preceding paragraph may be given in written form or byelectronic record in case of urgent necessity.
Article 22.

Consultation concerning Exercising Powers of the Corporate Auditors

The Corporate Auditors may consult at a meeting of the Board of Corporate Auditors about the following
matters prior to exercise of their powers or performance of their duties:(1) Explanation responding to inquiries posed in a notification by a shareholder prior to the General
Meeting of Shareholders;(2) Reporting to the Board of Directors and requesting convocation of a meeting of the Board of Directors;(3) Results of research on proposals and documents to be submitted to the General Meeting of
Shareholders;(4) Request for suspension of action by a Director that is beyond the purposes of the Company orotherwise in violation of laws or regulations or the Articles of Incorporation;(5) Providing an opinion at the General Meeting of Shareholders as to, among others, the appointment,
dismissal, resignation and remuneration of the Corporate Auditors;(6) Matters relating to litigation between the Company and any of the Directors; and(7) Other matters relating to litigation.
Article 23.

Consultation concerning Remuneration, etc.

Consultation concerning remuneration, etc. of the Corporate Auditors may be conducted by the Board of
Corporate Auditors, subject to the unanimous consent from all Corporate Auditors.
Article 24.

Minutes

1. The Board of Corporate Auditors shall prepare minutes stating the following matters, and either thesignature or the name and seal (including electronic signature) of each Corporate Auditor present at the meetingshall be affixed to the minutes:(1) The time and place at which the meeting was held (including methods of attendance of Corporate
Auditors, Directors or Accounting Auditors attending such meeting from other places, if any);(2) Substance of the proceedings of the meeting and the results thereof;(3) If any opinion or statement regarding the following matters is expressed at such meeting, a summary ofsuch opinion or statement:(a) a report from a Director stating that such Director has discovered a fact which may be materially
prejudicial to the Company; and(b) a report from an Accounting Auditor that such Accounting Auditor has discovered misconduct ora material fact violating laws or regulations or the Articles of Incorporation in connection with a
Director’s conduct of duties;-6-(4) Names of the Directors and/or Accounting Auditors who attended the meeting of the Board of
Corporate Auditors; and(5) The name of the Chairman of the Board of Corporate Auditors.
2. If a report to the Board of Corporate Auditors is deemed unnecessary pursuant to paragraph 4 of Article
14, minutes setting forth the following matters shall be prepared:(1) The substance of the matter on which a report was deemed unnecessary;(2) The date on which a report to the Board of Corporate Auditors was deemed unnecessary; and(3) The name(s) of the Corporate Auditor(s) who engaged in preparation of the minutes.
3. The minutes referred to in paragraphs 1 and 2 of this Article, shall be kept for ten (10) years at the head
office of the Company.
Article 25.

Secretariat of the Board of Corporate Auditors

Employees supporting the Corporate Auditors’ conduct of their duties, such as staff for the Board of
Corporate Auditors, shall handle secretarial business concerning convocation of meetings of the Board of
Corporate Auditors, preparation of the minutes thereof and other affairs concerning the management of the Boardof Corporate Auditors.
Article 26.

Auditing Standards of the Corporate Auditors

Matters concerning the Board of Corporate Auditors and audits by the Corporate Auditors shall be governedby laws and regulations, the Articles of Incorporation, these Regulations and the auditing standards of the
Corporate Auditors determined by the Board of Corporate Auditors.
Article 27.

Amendment to and Abolishment of these Regulations

Amendment to and abolishment of these Regulations shall be made by the Board of Corporate Auditors.

SUPPLEMENTARY PROVISIONS
These Regulations came into force on June 1, 2010.
These Regulations:- Established on June 30, 1994.
- Amended in part on July 29, 1997.
- Amended in part on May 1, 2002.
- Amended on July 30, 2004.
- Amended on July 19, 2006.
- Amended on June 1, 2010.

-7-

Exhibit 12.1
CERTIFICATION
I, Tetsuo Kuba, certify that:1.

I have reviewed this annual report on Form 20-F of Kyocera Corporation;2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to statea material fact necessary to make the statements made, in light of the circumstances under which suchstatements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations and cash flows of thecompany as of, and for, the periods presented in this report;

4.

The company’s other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company andhave:(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures tobe designed under our supervision, to ensure that material information relating to the company,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;(b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles;(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in thisreport our conclusions about the effectiveness of the disclosure controls and procedures, as of the endof the period covered by this report based on such evaluation; and(d) Disclosed in this report any change in the company’s internal control over financial reporting that
occurred during the period covered by the annual report that has materially affected, or is reasonably
likely to materially affect, the company’s internal control over financial reporting; and5.

The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the company’s auditors and the audit committee of the company’s boardof directors (or persons performing the equivalent functions):(a) All significant deficiencies and material weaknesses in the design or operation of internal control overfinancial reporting which are reasonably likely to adversely affect the company’s ability to record,
process, summarize and report financial information; and(b) Any fraud, whether or not material, that involves management or other employees who have asignificant role in the company’s internal control over financial reporting.

Date: June 30, 2010

/S/ TETSUO KUBA
Name: Tetsuo Kuba
Title: President and Representative Director(Principal Executive Officer)

Exhibit 12.2
CERTIFICATION
I, Shoichi Aoki, certify that:1.

I have reviewed this annual report on Form 20-F of Kyocera Corporation;2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to statea material fact necessary to make the statements made, in light of the circumstances under which suchstatements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations and cash flows of thecompany as of, and for, the periods presented in this report;

4.

The company’s other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company andhave:(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures tobe designed under our supervision, to ensure that material information relating to the company,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;(b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles;(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in thisreport our conclusions about the effectiveness of the disclosure controls and procedures, as of the endof the period covered by this report based on such evaluation; and(d) Disclosed in this report any change in the company’s internal control over financial reporting that
occurred during the period covered by the annual report that has materially affected, or is reasonably
likely to materially affect, the company’s internal control over financial reporting; and5.

The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the company’s auditors and the audit committee of the company’s boardof directors (or persons performing the equivalent functions):(a) All significant deficiencies and material weaknesses in the design or operation of internal control overfinancial reporting which are reasonably likely to adversely affect the company’s ability to record,
process, summarize and report financial information; and(b) Any fraud, whether or not material, that involves management or other employees who have asignificant role in the company’s internal control over financial reporting.

Date: June 30, 2010

/S/ SHOICHI AOKIName: Shoichi Aoki
Title: Director, Managing Executive Officer
and General Manager ofCorporate Financial & Accounting Group(Principal Financial Officer)

Exhibit 13.1
CERTIFICATION
Pursuant to 18 U.S.C. § 1350, the undersigned officer of Kyocera Corporation (the “Company”) hereby
certifies, to such officer’s knowledge, that the Company’s annual report on Form 20-F for the year ended
March 31, 2010 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of
the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in allmaterial respects, the financial condition and results of operations of the Company.
Dated: June 30, 2010

/S/ TETSUO KUBA
Name: Tetsuo Kuba
Title: President and Representative Director(Principal Executive Officer)

Exhibit 13.2
CERTIFICATION
Pursuant to 18 U.S.C. § 1350, the undersigned officer of Kyocera Corporation (the “Company”) hereby
certifies, to such officer’s knowledge, that the Company’s annual report on Form 20-F for the year ended
March 31, 2010 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of
the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in allmaterial respects, the financial condition and results of operations of the Company.
Dated: June 30, 2010

/S/ SHOICHI AOKIName: Shoichi Aoki
Title: Director, Managing Executive Officer
and General Manager ofCorporate Financial & Accounting Group(Principal Financial Officer)

Exhibit 15.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statements on Form S-8(File Nos. 33-84904, 33-98132, 33-99134, 33-99140, 33-99150, 33-99154 and 333-138316) of Kyocera
Corporation of our report dated June 28, 2010 relating to the financial statements and the effectiveness of internal
control over financial reporting, which appears in this Form 20-F.
/S/ Kyoto Audit Corporation
Kyoto, Japan
June 28, 2010