Consolidated Financial Statements
Asanuma Corporation
Years ended March 31, 2011 and 2010
with Report of Independent Auditors

Asanuma Corporation
Consolidated Financial Statements
Years ended March 31, 2011 and 2010

Contents

Consolidated Financial Statements
Report of Independent Auditors .......................................................................................... 1
Consolidated Balance Sheets............................................................................................... 2
Consolidated Statements of Income .................................................................................... 4
Consolidated Statement of Comprehensive Loss ................................................................ 5
Consolidated Statements of Changes in Net Assets ............................................................ 6
Consolidated Statements of Cash Flows ........................................................................... 7
Notes to Consolidated Financial Statements ....................................................................... 9Report of Independent Auditors
The Board of Directors
Asanuma Corporation

We have audited the accompanying consolidated balance sheets of Asanuma Corporationand consolidated subsidiaries as of March 31, 2011 and 2010, and the related consolidated
statements of income, changes in net assets, and cash flows for the years then ended andthe consolidated statement of comprehensive loss for the year ended March 31, 2011, allexpressed in yen. These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with auditing standards generally accepted inJapan. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the consolidated financial position of Asanuma Corporation and consolidated
subsidiaries at March 31, 2011 and 2010, and the consolidated results of their operations
and their cash flows for the years then ended in conformity with accounting principles
generally accepted in Japan.
The U.S. dollar amounts in the accompanying consolidated financial statements withrespect to the year ended March 31, 2011 are presented solely for convenience. Our
audit also included the translation of yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made on the basis described in Note 2.

Osaka, Japan
June 28, 20111

Asanuma Corporation
Consolidated Balance Sheets
March 31, 2011 and 2010

AssetsCurrent assets:
Cash and cash deposits (Notes 6 and 18)
Receivables:
Notes receivable (Note 18)
Accounts receivable on completed construction
contracts (Note 18)
Other accounts receivable
Allowance for doubtful accounts¥

Millions of yen
2010
2011

Thousands of
U.S. dollars(Note 2)
2011

25,684$¥

24,766308,888

6,198

3,532

74,54055,461
2,559(749)
63,46957,4692,669(232)
63,438

666,999
30,776(9,008)763,307990
12,86344
13,897

1,166
16,12855
17,34911,906
154,696529
167,131

Deferred income taxes (Note 10)
Other current assets
Total current assets

2
2,114
105,166

1
1,252
106,80624
25,424
1,264,774

Property, plant and equipment, at cost:
Land (Note 9)
Buildings and structures (Note 9)
Machinery, equipment and vehicles
Tools, furniture and fixtures
Leased assets
Less accumulated depreciation
Property, plant and equipment, net

6,764
14,438
1,154
1,251
57
(11,078)
12,586

6,394
14,490
2,209
1,645
57
(13,126)
11,66981,347
173,638
13,87815,045686(133,229)
151,365

5,760

6,147

69,273

77
430
458
2,611
(1,209)
8,127

76
404
539
2,095
(231)
9,030

926
5,171
5,508
31,401(14,540)
97,739¥ 125,879¥ 127,505$ 1,513,878

Inventories:
Real estate held for sale
Cost of uncompleted construction contracts
Raw materials and supplies

Investments and other assets:
Investments in securities (Notes 8, 9 and 18)
Investments in an unconsolidated subsidiary andaffiliates
Long-term loans receivable (Note 9)
Intangible assets
Other assets
Allowance for doubtful accounts
Total investments and other assets

Total assets

2Millions of yen
2010
2011
Liabilities
Current liabilities:
Short-term bank loans (Notes 9 and 18)
Current portion of long-term debt (Notes 9 and 18)
Payables (Note 18):
Notes payable
Accounts payable on construction contracts
Other accounts payable

Thousands of
U.S. dollars(Note 2)2011

¥ 24,765
2,547¥ 24,573
5,353$

297,835
30,631

5,396
26,931
15,05447,381

3,352
23,53012,381
39,26364,895323,885
181,046
569,826

Advances received on uncompleted construction
contracts
Deposits received
Accrued expenses
Consumption taxes on advances received
Accrued income taxes (Note 10)
Deferred income taxes (Note 10)
Provision for compensation for completed
construction
Provision for bonuses
Provision for loss on construction contracts
Other current liabilities
Total current liabilities

7,493
2,362
1,044
2,037
220
13

10,416
3,252
968
1,410
292
14

90,11428,406
12,55624,498
2,646
156

599
323
914
161
89,859

679
328
406
64
87,018

7,204
3,885
10,992
1,936
1,080,685

Long-term liabilities:
Long-term debt (Notes 9 and 18)
Accrued retirement benefits for employees (Note 11)
Deferred income taxes (Note 10)
Other long-term liabilities
Total long-term liabilities

7,907
3,620
1,408
3,341
16,276

10,358
7,687
1,634
985
20,66495,09443,536
16,93340,180195,743

8,419
4,641
6,317
(136)
19,241

8,419
4,641
6,007
(135)
18,932

101,251
55,81575,971(1,636)
231,401468
468
35
19,744¥ 125,879

872
872
19
19,823¥ 127,505

5,628
5,628
421
237,450$ 1,513,878

Contingent liabilities (Note 12)
Net assets
Shareholders’ equity (Note 13):
Common stock:
Authorized – 293,565,000 shares
Issued– 77,386,293 shares in 2011 and– 2010Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income :Net unrealized holding gain on securities (Note 8)

Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

See accompanying notes to consolidated financial statements.
3

Asanuma Corporation
Consolidated Statements of Income
Years ended March 31, 2011 and 2010

Millions of yen
2011
2010
Net sales (Note 21):
Completed construction contracts
Other

2011

¥ 126,352
1,850
128,202¥ 152,727
2,161
154,888$ 1,519,567
22,249
1,541,816

118,564
1,465
120,029

144,487
1,688
146,175

1,425,905
17,6191,443,524

7,788
385
8,173

8,240
473
8,713

93,662
4,630
98,292

6,950
1,223

7,162
1,551

83,584
14,708

297
(721)
(25)
1,708

310
(797)
(29)
91

3,572
(8,671)(301)
20,541

757
(104)

–
(133)

9,104
(1,251)(439)(1,490)
(536)
69
(264)

(1)
(157)
–
87
(110)

(5,280)(17,919)(6,446)830(3,174)

475

812

5,713

162
(13)
149
326
16
310

316
(20)
296
516
31
485

1,948
(156)
1,792
3,921
193
3,728

Cost of sales (Note 14):Completed construction contracts
Other
Gross profit:
Completed construction contracts
Other
Selling, general and administrative
expenses (Note 15)
Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Guarantee fees
Gain on sales of property, plant and equipment
Gain on partial conversion to defined
contribution pension plans
Loss on repairs of completed construction
Loss on impairment of tangible fixed assets(Note 7)
Provision of allowance for doubtful accounts
Provision for loss on construction contracts
Prior period adjustments, net
Other, net
Income before income taxes and minority
interests
Income taxes (Note 10):
Current
DeferredIncome before minority interests
Minority interests
Net income

Thousands of
U.S. dollars(Note 2)¥¥$

See accompanying notes to consolidated financial statements.
4

Asanuma Corporation
Consolidated Statement of Comprehensive LossYear ended March 31, 2011

Income before minority interests
Other comprehensive loss:
Net unrealized holding loss on securities
Total other comprehensive loss
Comprehensive loss
Comprehensive (loss) income attributable to:Shareholders of the Company
Minority interests

Millions of yen
2011
¥ 326

Thousands of
U.S. dollars(Note 2)2011
$ 3,921

(404)
(404)
¥ (78)(4,859)(4,859)$ (938)¥$ (1,130)
193

(94)
16

See accompanying notes to consolidated financial statements.
5

Asanuma Corporation
Consolidated Statements of Changes in Net Assets
Years ended March 31, 2011 and 2010

Balance at March 31, 2009
Net income for the year
Sales of treasury stock
Increase in treasury stock
Net effect in minority interests
resulting from inclusion ofsubsidiaries in consolidation
Net change in items other thanshareholders’ equity
Balance at March 31, 2010
Net income for the year
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at March 31, 2011

Shareholders’ equity

Millions of yen
Accumulated
othercomprehensive
incomeCommonstock

CapitalsurplusRetainedearnings

Treasurystock, atcost

Net unrealized
holding gain
on securities

Minority
interests

Total net
assets¥ 8,419–––¥ 4,641 ¥ 5,522
–
485
(0)
–
–
–

¥ (134)
–
0
(1)

¥ 609
–
–
–

¥ –
–
–
–

¥ 19,057
485
0
(1)

–

–

–

–

–

(12)

(12)

–

–

–

–

263

31

294

¥ 8,419–––¥ 4,641 ¥ 6,007
–
310
(0)
–
–
–

¥ (135)
–
0
(1)

¥ 872
–
–
–

¥ 19
–
–
–

¥ 19,823
310
0
(1)

–
¥ 8,419–¥ 4,641–¥ (136)

(404)
¥ 468

16
¥ 35

(388)
¥ 19,744

Minority
interests

Total net
assets–¥ 6,317

Thousands of U.S. dollars (Note 2)
Accumulated
othercomprehensive
incomeShareholders’ equity

Balance at March 31, 2010
Net income for the year
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at March 31, 2011

Commonstock

CapitalsurplusRetainedearnings

Treasurystock, atcost

Net unrealized
holding gain on
securities$ 101,251–––$ 55,815 $ 72,243
–
3,728
(0)
–
–
–

$ (1,624)–0(12)$ 10,487
–
–
–

$ 228
–
–
–

$238,400
3,728
0
(12)

–
$ 101,251–$ 55,815–$ (1,636)(4,859)$ 5,628193$ 421(4,666)$237,450–$ 75,971

See accompanying notes to consolidated financial statements.
6

Asanuma Corporation
Consolidated Statements of Cash Flows
Years ended March 31, 2011 and 2010

Millions of yen
2011
2010
Cash flows from operating activities:
Income before income taxes and minority interests
Adjustments for:
Depreciation and amortization
Loss on impairment of tangible fixed assets
Increase (decrease) in allowance for doubtful
accounts(Decrease) increase in provision for bonuses(Decrease) increase in accrued retirement benefits
for employees
Interest and dividend income
Interest expense
Foreign exchange losses
Gain on sales of property, plant and equipment, net
Increase in notes and accounts receivable oncompleted construction contracts
Decrease in inventories
Increase (decrease) in notes and accounts payable
on construction contracts
Decrease in advances received on
uncompleted construction contracts
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Net decrease in time deposits
Purchases of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchases of intangible assets
Purchases of investments in securities
Proceeds from sales of investments in securities
Loans receivable madeCollection of loans receivable
Other, net
Net cash (used in) provided by investing activities

¥

¥

475

¥

812

Thousands
ofU.S. dollars(Note 2)
2011
$

5,713

595
439

542
1

7,156
5,280

1,495
(5)

(71)
53

17,979(60)(4,067)
(297)
721
34
(1,708)

522
(310)
797
16
(91)

(48,912)(3,572)
8,671
409(20,541)

(657)
3,354

(4,676)
16,857(7,901)40,336

5,443(10,294)

65,460(2,924)
4,523
7,421
293
(776)
(274)
6,664

(10,187)(8,960)(14,989)
316
(754)
(348)
(15,775)(35,165)
54,39589,2483,524(9,332)(3,295)80,145–(2,367)49(50)–(28,466)

2,201
(73)
(414)
156
(176)
36
21
(616)

225
(120)
(6)
8
(58)
134
15
197

26,470(878)(4,979)1,876(2,117)433
253$ (7,408)¥

7

Asanuma Corporation
Consolidated Statements of Cash Flows (continued)
Years ended March 31, 2011 and 2010

Millions of yen
2010
2011
Cash flows from financing activities:
Decrease in short-term bank loans, net
Proceeds from long-term debt
Repayment of long-term debt
Repayments of lease obligations
Repayments for deposits received frommembership
Proceeds from stock issuance to minority
shareholders of a consolidated subsidiary
Other, net
Net cash used in 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
Increase in cash and cash equivalents resulting
from inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of year (Note 6)

Thousands
ofU.S. dollars(Note 2)2011

¥ (2,614)
97(2,548)(12)¥ (1,216)
1,678(2,534)(10)$ (31,437)
1,166(30,643)
(144)

(19)

(336)

(229)

–
0
(5,096)2
0(2,416)–0(61,287)

(34)

(16)

(409)

918
24,766(18,011)
41,958

11,041
297,847–¥ 25,684

819¥ 24,766–$ 308,888

See accompanying notes to consolidated financial statements.
8

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

1.

Basis of Preparation of Consolidated Financial Statements

The accompanying consolidated financial statements of Asanuma Corporation (the“Company”) and consolidated subsidiaries are prepared on the basis of accounting
principles generally accepted in Japan, which are different in certain respects as to theapplication and disclosure requirements of International Financial Reporting Standards,
and have been compiled from the consolidated financial statements prepared by theCompany as required by the Financial Instruments and Exchange Act of Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications
and rearrangements have been made to the consolidated financial statements issued
domestically in order to present them in a format which is more familiar to readers outside
Japan.
Effective the year ended March 31, 2011, the Companies have adopted the “AccountingStandard for Presentation of Comprehensive Income” (Accounting Standards Board ofJapan (“ASBJ”) Statement No. 25, issued on June 30, 2010). The account items“accumulated other comprehensive income” and “total accumulated other comprehensive
income” in the accompanying consolidated balance sheet as of March 31, 2010 are used inplace of the previously reported items of “valuation” and “total valuation” in the
consolidated balance sheet as of March 31, 2010.
Certain reclassifications of previously reported amounts have been made to conform theconsolidated financial statements for the year ended March 31, 2010 to the 2011
presentation. Such reclassifications had no effect on consolidated net income or net
assets.

2.

U.S. Dollar Amounts

The accompanying consolidated financial statements are stated in yen, the currency of thecountry in which the Company and its consolidated subsidiaries are incorporated andoperate. The translation of yen amounts into U.S. dollar amounts is included solely forthe convenience of readers outside Japan and has been made at ¥83.15 = U.S.$1.00, theexchange rate prevailing on March 31, 2011. This translation should not be construed asa representation that yen can be converted into U.S. dollars at the above or any other rate.

9

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

3.

Principles of Consolidation

At March 31, 2011 and 2010, the Company had 6 subsidiaries. The consolidated
financial statements for the years ended March 31, 2011 and 2010 include the accounts of
the Company and its 5 subsidiaries.
The Company applied the equity method to its investments in 3 affiliates, at March 31,
2011 and 2010 for the purpose of consolidated financial statements for the years thenended.
The accounts of the remaining subsidiary were not consolidated nor the equity method
applied because its assets, retained earnings, net sales and net income in the aggregate
were not material to the consolidated financial statements.

4.

Summary of Significant Accounting Policies(a) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits with banks withdrawable
on demand, and short-term investments which are readily convertible to cash subject
to an insignificant risk of any changes in their value and which were purchased withan original maturity of three months or less.
(b) Investments in securities
Investments in securities are classified into three categories: trading securities,
held-to-maturity debt securities or other securities. Trading securities are stated atfair value. Gain and loss, both realized and unrealized, are credited and charged toincome. Held-to-maturity debt securities are stated at amortized cost. Marketablesecurities classified as other securities are carried at fair value with any changes in
unrealized holding gain or loss, net of the applicable income taxes, reported as aseparate component of accumulated other comprehensive income. Non-marketablesecurities classified as other securities are carried at cost determined by the moving
average method.
(c) Allowance for doubtful accounts
The Company and its consolidated subsidiaries provide an allowance for doubtful
accounts at an amount calculated based on their historical experience of bad debts on
ordinary receivables plus an additional estimate of probable specific bad debts from
customers experiencing financial difficulties.

10

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(d) Inventories
Real estate held for sale is stated at the lower of cost or net selling value, cost being
determined on an individual project basis. Uncompleted construction contracts arestated at cost determined on an individual project basis. Raw materials and supplies
are stated at the lower of cost or market value, cost being determined by the period
average method.
(e) Property, plant and equipment (Other than leased assets)
Property, plant and equipment is stated on the basis of cost. Depreciation is
calculated by the declining-balance method over the estimated useful lives of therespective assets; however, the straight-line method is applied to buildings (except forstructures attached to the buildings) acquired on or after April 1, 1998.
(f) Computer software (Other than leased assets)
Expenditures related to computer software developed for internal use are charged toincome when incurred, except if they are deemed to contribute to the generation ofincome or to future cost savings. Such expenditures are capitalized as intangible
assets and amortized by the straight-line method over an estimated useful life of 5
years.
(g) Leases
Leased assets held under finance leases that transfer ownership are depreciated byusing the economic useful lives of leased assets. For finance leases that do nottransfer ownership, depreciation expense is calculated based on the straight-line
method over the leased period of the lease with a residual value of zero. In addition,
finance lease transactions commencing on or before March 31, 2008 other than thosein which the ownership of the leased assets is transferred to the Company or its
consolidated subsidiaries are accounted for in the same manner as operating leases.
(h) Provision for compensation for completed construction
A provision for compensation for completed construction is provided for anticipatedfuture costs arising from warranties on completed construction.
(i) Provision for bonuses
A provision for bonuses is provided at the estimated amount of bonuses to be paid asallocated to the current fiscal year.

11Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(j) Provision for loss on construction contracts
A provision for loss on construction contracts is provided for anticipated future losses
on uncompleted construction projects.
(k) Accrued retirement benefits
Accrued retirement benefits for employees are provided at the retirement benefit
obligation less the fair value of the pension plan assets as adjusted for unrecognizedactuarial gain or loss. The retirement benefit obligation is attributed to each periodby the straight-line method over the estimated average remaining years of service ofthe eligible employees.
Prior service cost is credited or charged to income in the year in which the gain or loss
is recognized.
Actuarial gain or loss is amortized commencing the year following the year in which
the gain or loss is recognized by the straight-line method principally over a ten-year
period, which is shorter than the average remaining years of service of the eligible
employees.
(l) Income taxes
Deferred income taxes are calculated based on taxable income and charged to incomeon an accrual basis. Deferred tax assets and liabilities are computed based on thetemporary differences between financial reporting and the tax bases of the assets andliabilities which will result in taxable or deductible amounts in the future. The
calculation of deferred tax assets and liabilities is based on the enacted tax laws.
Valuation allowances are utilized to reduce deferred tax assets to the amount thatmanagement believes is more likely than not to be realized. In assessing the
likelihood of realization, the Company considers all currently available evidence for
future years, both positive and negative, supplemented by information regarding
historical results for each tax jurisdiction.
(m) Hedge accounting
Gain or loss on derivatives positions designated as hedges is deferred until the loss orgain on the respective underlying hedged items is recognized. Interest-rate swaps
which meet certain conditions are accounted for as if the interest rates applied to theswaps had originally applied to the underlying debt.

12

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(n) Revenue recognition
The Company recognizes revenue by applying the percentage-of-completion method
for the construction projects for which the outcome of the construction activity isdeemed certain at the end of the reporting period. To estimate the progress of such
construction projects, the Company measures the percentage of completion bycomparing costs incurred to date with the most recent estimate of total costs required
to complete the project (cost to cost basis). For other construction projects where theoutcome cannot be reliably measured, the completed-contract method is applied.
Net sales related to construction contracts accounted for by thepercentage-of-completion method totaled ¥115,152 million ($1,384,871 thousand)and ¥88,241 million for the years ended March 31, 2011 and 2010, respectively.

5.

Changes in Method of Accounting(1) Asset Retirement Obligations
Effective the year ended March 31, 2011, the Company applied “Accounting Standard
for Asset Retirement Obligations” (ASBJ Statement No.18, issued on March 31,2008) and “Guidance on Accounting Standard for Asset Retirement Obligations”(ASBJ Guidance No.21, issued on March 31, 2008). The impact of applying theseaccounting standards to operating income and income before income taxes andminority interests was nil for the year ended March 31, 2011.
(2) Application of the revised Accounting Standard for Equity Method of Accounting forInvestments
Effective the year ended March 31, 2011, the Company applied “Accounting Standard
for Equity Method of Accounting for Investments” (ASBJ Statement No.16, issued on
March 10, 2008) and “Practical Solution on Unification of Accounting Policies
Applied to Associates Accounted for Using the Equity Method” (ASBJ PITF No.24,
issued on March 10, 2008). The impact of applying these accounting standards tooperating income and income before income taxes and minority interests was nil forthe year ended March 31, 2011.

13

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

5.

Changes in Method of Accounting (continued)(3) Recognizing revenues and cost of construction contracts
Up to the year ended March 31, 2009, revenue and cost of construction contracts weremainly recognized by the completed-contract method, though the specificconstruction projects which took longer than one year and exceeded ¥1,000 million,
applied the percentage-of-completion method for recognition of revenue and cost.
Effective the year ended March 31, 2010, the Company and its consolidated
subsidiaries have adopted “Accounting Standard for Construction Contracts” (ASBJ
Statement No.15, issued on December 27, 2007) and “Guidance on AccountingStandard for Construction Contracts” (ASBJ Guidance No.18, issued on December 27,2007).
Under these accounting standard and guidance, revenue from, and related cost of,
construction contracts that commenced on or after April 1, 2009, are mainly
recognized by the percentage-of-completion method.
As a result of the adoption of these standards, net sales of completed construction
contracts increased by ¥9,501 million and operating income and income before
income taxes and minority interests increased by ¥375 million for the year ended
March 31, 2010 from the corresponding amounts which would have been recorded
under the method applied in the previous year.
(4) Partial amendments to accounting standard for retirement benefits
Effective the year ended March 31, 2010, the Company adopted “Partial Amendments
to Accounting Standard for Retirement Benefits” (Part 3) (ASBJ Statement No.19
issued on July 31, 2008). The effect of the adoption of this amendment on operating
income and income before income taxes and minority interests was nil for the year
ended March 31, 2010.

14

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

6.

Cash and Cash Equivalents

A reconciliation between the balances of cash and cash deposits in the accompanying
consolidated balance sheets at March 31, 2011 and 2010 and the balances of cash and cash
equivalents as presented in the accompanying consolidated statements of cash flows forthe years then ended have been omitted since there were no reconciliation items.

7.

Loss on Impairment of Tangible Fixed Assets

An aggregate loss on impairment of tangible fixed assets of ¥439 million ($5,280
thousand) was recorded for the year ended March 31, 2011. The loss on impairment
related to land in the amount of ¥61 million ($734 thousand) and buildings in the amountof ¥378 million ($4,546 thousand) is outlined as follows:
Thousands ofMillions of yen U.S. dollars
Location
Main use
Class
2011
2011
KagawaBuildings
Prefecture
Leasingand land¥ 435$ 5,232
and other
Hiroshima
Idle property
Land
4
48
Prefecture¥ 439$ 5,280
The Company and its consolidated subsidiaries, in principle, group their fixed assets for
operating purposes at each office but group leased assets and idle assets individually.
The affiliates group their fixed assets at each company. Due to a decline in market priceof real estate during the year ended March 31, 2011, the Company and its consolidated
subsidiaries have reduced the carrying value of assets outlined above to their respective
estimated recoverable amounts and recorded a related loss on impairment of tangible fixed
assets of ¥439 million ($5,280 thousand) in the accompanying consolidated statement ofincome for the year ended March 31, 2011.
The estimated recoverable amounts of idle property have been measured at their estimatednet selling prices based on the figures presented by government authorities.

15

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

8.

Investments in Securities

At March 31, 2011 and 2010, marketable securities classified as held-to-maturity debt
securities were as follows:
Carryingvalue
Held-to-maturity debt
securities whose
estimated fair value
exceeds their carrying
value:
Government andmunicipal bonds

Millions of yen
2011
Estimated Unrealized Carrying
fair value
gain
value

¥ 30
¥ 30

¥ 31
¥ 31

¥ 1
¥ 1

¥ 30
¥ 30

2010
Estimated
fair value

Unrealized
gain

¥ 31
¥ 31

¥ 1
¥ 1

Thousands of U.S. dollars
2011
Carrying Estimated Unrealizedvalue
fair value
gain
Held-to-maturity debt
securities whose
estimated fair value
exceeds their carrying
value:
Government andmunicipal bonds

$ 361
$ 361

$ 373
$ 373

$ 12
$12

At March 31, 2011 and 2010, marketable securities classified as other securities were as
follows:
Millions of yen
2011

Other securities whosecarrying value exceeds
their acquisition costs:
Equity securities
Other securities whosecarrying value does notexceed their acquisition
costs:
Equity securities

2010
Unrealized
holding gain Acquisition
costs(loss)

Acquisition
costs

Carryingvalue¥ 2,478¥ 3,416

¥ 938

1,677
¥ 4,155

1,498¥ 4,914

(179)
¥ 759

Carrying
value

Unrealized
holding
gain (loss)¥ 2,907¥ 4,379¥ 1,472

1,012¥ 3,919919¥ 5,298(93)¥ 1,37916

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

8.

Investments in Securities (continued)
Thousands of U.S. dollars
2011

Other securities whosecarrying value exceeds
their acquisition costs:
Equity securities
Other securities whosecarrying value does notexceed their acquisition
costs:
Equity securities

Acquisition
costs

Carrying
value

Unrealized
holding
gain (loss)$ 29,802$ 41,082$ 11,281

20,168$ 49,970

18,016$ 59,098(2,153)$ 9,128

Refer to Note 18 for the redemption schedule at March 31, 2011 for held-to-maturity debt
securities.
For the year ended March 31, 2011, the Company has recognized loss on impairment ofequity securities classified as other securities of ¥16 million ($192 thousand).
The Company recognizes loss on impairment of marketable securities classified as othersecurities if the market value of a security at year end declines by more than 30%
compared with its carrying value.
Proceeds from and realized (loss) gain on sales of other securities for the years ended
March 31, 2011 and 2010 are summarized as follows:
Thousands ofMillions of yen
U.S. dollars
2010
2011
2011
Proceeds
Realized (loss) gain

¥ 156
(10)

¥ 3,120
1,329$ 1,876(120)

17

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

9.

Short-Term Bank Loans and Long-Term Debt

Short-term bank loans from banks had average interest rates of 1.7% at March 31, 2011
and 1.8% at March 31, 2010.
Long-term debt at March 31, 2011 and 2010 is summarized as follows:
Millions of yen
2011
2010
Unsecured loans from banks, payable inyen, at rates ranging from 2.44% to 3.56%
Secured loans from insurance companies,
payable in yen at rates ranging from
1.31% to 2.6%
Total
Less current portion included in current
liabilities

Thousands of
U.S. dollars
2011¥ 1,711¥ 4,007$ 20,577

8,743
10,454

11,704
15,711

105,148
125,725(2,547)¥ 7,907(5,353)¥ 10,358(30,631)$ 95,094

The aggregate annual maturities of long-term debt subsequent to March 31, 2011 aresummarized as follows:
Thousands ofYear ending March 31,
Millions of yen
U.S. dollars
2012¥ 2,547$ 30,631
2013
952
11,4492014
1,038
12,483
5,917
71,1622015 and thereafter¥ 10,454$ 125,725
Assets pledged at March 31, 2011 as collateral for loans of the Company are summarized
as follows:
Thousands ofMillions of yen
U.S. dollars
Land¥ 1,845$ 22,189
911
10,956
Buildings and structures¥ 2,756$ 33,145
All assets of the consolidated subsidiaries engaged in the PFI business were pledged ascollateral for their loans under the project finance agreements. Assets pledged at March
31, 2011 amounted to ¥9,472 million ($113,915 thousand) as collateral for loans of ¥8,743
million ($105,147 thousand).
Assets pledged at March 31, 2011 as collateral for loans of affiliates which are engaged in
a PFI business are summarized as follows:
Thousands of
U.S. dollars
Millions of yen
Investments in securities
¥ 54
$ 649
200
2,405
Long-term loans receivable¥ 254$ 3,054
18

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

10. Income Taxes
Income taxes applicable to the Company and its consolidated subsidiaries comprise
corporation, inhabitants’ and enterprise taxes which, in the aggregate, resulted in astatutory tax rate of approximately 40.8% for the years ended March 31, 2011 and 2010.
A reconciliation of the statutory tax rate and the effective tax rates for the years ended
March 31, 2011 and 2010 as a percentage of income before income taxes is summarized asfollows:
2010
2011
Statutory tax rate
40.8 %
40.8 %
Permanently non-tax-deductible expenses
12.1
20.0
Permanently non-taxable income
(1.7)
(3.0)
Per capita portion of inhabitants’ taxes
16.7
26.6
Tax credit for corporate tax(1.4)–
Valuation allowance(27.3)(54.9)
Unrecognized deferred income tax relating toexcess of cost over equity in net assets ofsubsidiaries and other
(2.6)
1.6
Other
(0.1)
0.3
Effective tax rates
36.5 %
31.4 %

19

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

10. Income Taxes (continued)
The significant components of deferred tax assets and liabilities of the Company and its
consolidated subsidiaries at March 31, 2011 and 2010 are summarized as follows:
Thousands of
U.S. dollars
2011

Millions of yen
2011
2010
Deferred tax assets:
Allowance for doubtful accounts
Provision for bonuses
Provision for compensation forcompleted construction
Inventories
Provision for loss on construction
contracts
Accrued retirement benefits for
employees
Assets transferred to defined
contribution pension plans
Loss on impairment of tangible
fixed assets
Loss on revaluation of fixed assets
and other
Loss on revaluation of investments
Tax loss carryforwards
Unrealized profit on intercompany
transactions
Other
Gross deferred tax assets
Less valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized holding gain on
securities
Deferred capital gains on property
Other
Total deferred tax liabilities
Net deferred tax liabilities

303
140

$ 10,235
1,684

245
34

277
170

2,946
409

374

166

4,498

1,431

3,071

17,2101,240–

14,913

415

449

4,991

1,399
174
13

1,353
225
29

16,825
2,093
156

50
524
6,890
(6,837)
53

51
499
6,733
(6,682)
51

601
6,302
82,863(82,225)638(290)(1,174)(6)(1,470)¥ (1,417)(508)(1,185)(6)(1,699)¥ (1,648)(3,488)(14,119)(72)(17,679)$ (17,041)

¥

851
140

¥

20

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

11. Retirement Benefits
The Company and its certain consolidated subsidiaries have defined benefit pension planscovering substantially all employees who are entitled to lump-sum or annuity payments,
the amounts of which are determined by reference to their basic rates of pay, length ofservice, and the conditions under which termination occurs. In addition to the retirement
benefit plans described above, the Company and its certain consolidated subsidiaries pay
additional retirement benefits under certain conditions.
Supplementary information
The Company transferred a certain portion of a lump-sum payment plan to a defined
contribution pension plan on October 1, 2010.
The Company adopted ASBJ
Implementation Guidance No.1 “Guidance on Accounting for Transfers between
Retirement Benefit Plans”, issued January 31, 2002. As a result, operating income
increased by ¥101 million ($1,215 thousand) and income before income taxes andminority interests increased by ¥858 million ($10,319 thousand) for the year ended March
31, 2011.
The following table sets forth the funded and accrued status of the plans and the amounts
recognized in the accompanying consolidated balance sheets at March 31, 2011 and 2010
for the Company’s and its consolidated subsidiaries’ defined benefit pension plans:

Retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Unrecognized actuarial loss
Accrued retirement benefits for employees

Millions of yen
2010
2011
¥ (13,321)¥ (26,919)
16,5297,149(6,172)(10,390)
2,703
2,552
¥ (7,687)¥ (3,620)

Thousands of
U.S. dollars
2011$ (160,204)
85,977(74,227)
30,691$ (43,536)

As permitted under the accounting standard for retirement benefits, one consolidated
subsidiary calculates its retirement benefit obligation for employees by a simplified
method.
The components of retirement benefit expenses for the years ended March 31, 2011 and2010 are outlined as follows:

Service cost
Interest cost
Expected return on plan assets
Amortization of unrecognized actuarial loss
Retirement benefit expenses
Gain on partial conversion to defined contribution
pension plan
Contributions to defined contribution pension plan
Total

Millions of yen
2010
2011
¥ 491
¥ 650
469
588
(331)
(333)
1,023
735
¥ 1,928¥ 1,364

Thousands of
U.S. dollars
2011$ 5,905
5,640(3,981)
8,840$ 16,404

(757)
103
¥ 710

(9,104)
1,239$ 8,539

¥

–
–
–

21

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

11. Retirement Benefits (continued)
The assumptions used in accounting for the defined benefit pension plans for the years
ended March 31, 2011 and 2010 were as follows:

Discount rate
Expected rate of return on plan assets

2011

2010

2.0%
2.0%

2.0%
2.0%

12. Contingent Liabilities
At March 31, 2011, the Company was contingently liable for guarantees of deposits forcondominium purchase agreements held by condominium sales companies in the amountof ¥276 million ($3,319 thousand).

13. Shareholders’ Equity
The Corporation Law of Japan (the “Law”) provides that an amount equal to 10% of theamount to be disbursed as distributions of capital surplus (other than the capital reserve)
and retained earnings (other than the legal reserve) be transferred to the capital reserve andthe legal reserve, respectively, until the sum of the capital reserve and the legal reserve
equals 25% of the capital stock account. Such distributions can be made at any time byresolution of the shareholders, or by the Board of Directors if certain conditions are met.
The Company’s legal reserve included in retained earnings at March 31, 2011 and 2010
amounted to ¥2,104 million ($25,304 thousand).
Under the Law, upon the issuance and sale of new shares of common stock, the entire
amount of the proceeds is required to be accounted for as common stock, although a
company may, by resolution of the Board of Directors, account for an amount notexceeding one-half of the proceeds of the sale of new shares as additional paid-in capital
included in capital surplus.

22

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

13. Shareholders’ Equity (continued)
Movements in shares of common stock in issue and treasury stock during the years ended
March 31, 2011 and 2010 are summarized as follows:

March 31, 2010
Shares ofcommon stockin issue
Treasury stock

77,386,293
1,262,018

March 31, 2009
Shares ofcommon stockin issue
Treasury stock

77,386,293
1,254,924

Number of shares
2011
Increase
Decrease

–
9,479

–
1,300

Number of shares
2010
Increase
Decrease

–
8,024

–
930

March 31, 2011

77,386,293
1,270,197

March 31, 2010

77,386,293
1,262,018

14. Provision for Loss on Construction Contracts
Provision for loss on construction contracts included in cost of sales for the years ended
March 31, 2011 and 2010 amounted to ¥378 million ($4,546 thousand) and ¥405 million,
respectively.

15. Research and Development Costs
Research and development costs included in selling, general and administrative expenses
for the years ended March 31, 2011 and 2010 amounted to ¥141 million ($1,696 thousand)and ¥138 million, respectively.

23

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

16. Information on Other Comprehensive Income
Information on other comprehensive income for the year ended March 31, 2010 forcomparative purposes is summarized as follows:
Millions of yen
2010
Other comprehensive income:Net unrealized holding income on securities
Total other comprehensive income

¥ 262
¥ 262

Comprehensive income (loss) attributable to:Shareholders of the Company
Minority interests

¥ 747
(31)

24

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

17. Leases
Finance lease transactions commencing on or before March 31, 2008 other than those inwhich the ownership of the leased assets is transferred to the Company and its
consolidated subsidiaries are accounted for in the same manner as operating leases.
The following pro forma amounts represent the acquisition costs, accumulated
depreciation and net book value of the leased property as of March 31, 2011 and 2010,
which would have been reflected in the accompanying consolidated balance sheets if
finance lease accounting had been applied to the finance leases under which the Company
and its consolidated subsidiaries are lessees and which are currently accounted for as
operating leases:
Millions of yen
2011
2010
Acquisition Accumulated Net book Acquisition Accumulated Net bookcosts
depreciation
value
costs
depreciation
value
Tools, furniture andfixtures

¥ 21

¥ 16

¥5

¥ 27

¥ 17

¥ 10

Thousands of U.S. dollars
2011
Acquisition Accumulated Net bookcosts
depreciation
value
Tools, furniture andfixtures

$ 253

$ 193

$ 60

Lease payments related to finance leases accounted for as operating leases, depreciationand interest expense, which have not been reflected in the accompanying consolidated
statements of income for the years ended March 31, 2011 and 2010, were as follows:
Millions of yen
2010
2011
Lease payments
Depreciation
Interest expense

¥5
5
0

¥6
5
1

Thousands of
U.S. dollars
2011
$ 60
60
0

Future minimum lease payments (including the interest portion thereon) subsequent toMarch 31, 2011 under finance leases other than those which transfer ownership of theleased property to the Company and its consolidated subsidiaries are summarized asfollows:
Thousands ofYear ending March 31,
Millions of yen
U.S. dollars
2012
¥ 4
$ 48
1
12
2013 and thereafter
¥ 5
$ 60
25

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments(1) Policy for financial instruments
The Company and its consolidated subsidiaries manage their funds by investing onlyin short-term deposits, and primarily raise funds by borrowings from banks. The
purpose of entering into derivative transactions is to mitigate fluctuation risk related
to interest rates with respect to loans payable, and derivative transactions are notcarried out for speculative purposes.
(2) Types of financial instruments, related risk and risk management for financial
instruments
Notes and accounts receivable on completed construction contracts are subject to thecredit risk of customers. Regarding this risk, the Company and its consolidated
subsidiaries monitor due dates and outstanding balances by individual customer, andthe credit worthiness of their main customers regularly.
For investment securities, the Company and consolidated subsidiaries review the fairvalues of such financial instruments every quarter.
Notes and accounts payable on construction contracts are operating obligations andmostly are payable within one year.
Long-term debt with variable interest rates is exposed to interest rate fluctuation risk.
However, to reduce such risk and fix interest expense for long-term debt bearing
interest at variable rates, the Company utilizes interest rate swaps as a hedging
instrument. In addition, the Company has established internal policies which include
procedures and authorization processes governing derivatives and complies fully withthese guidelines.
(3) Supplementary explanation of the market value of financial instruments
The market value of financial instruments is based on the market price, and when no
market price exists, a rationally calculated amount is used. These calculations
include variable factors, so the resulting amount may change if different underlying
assumptions are applied.

26

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments (continued)
The carrying value, estimated fair value and resulting differences as of March 31, 2011
and 2010 are as follows. Financial instruments for which fair value is deemed extremely
difficult to determine are not included.
Millions of yen
2011

Cash and cash deposits
Notes and accounts receivable oncompleted construction contracts
Investments in securities
Total assets
Notes and accounts payable on
construction contracts
Short-term bank loans
Other accounts payable
Long-term debt
Total liabilities

Carrying value¥ 25,684

Estimated fairvalue
¥ 25,684

Difference¥–

61,6594,944¥ 92,287

61,983
4,945¥ 92,612

324
1
¥ 325

¥ 32,327
27,312
15,054
7,907¥ 82,600¥ 32,327
27,312
15,054
7,953¥ 82,646

¥

¥

–
–
–
46
46

Millions of yen
2010

Cash and cash deposits
Notes and accounts receivable oncompleted construction contracts
Investments in securities
Total assets
Notes and accounts payable on
construction contracts
Short-term bank loans
Other accounts payable
Long-term debt
Total liabilities

Carrying value¥ 24,766

Estimated fairvalue
¥ 24,766

Difference¥–

61,001
5,328¥ 91,095

61,312
5,329¥ 91,407

311
1
¥ 312

¥ 26,883
29,926
12,381
10,358¥ 79,548¥ 26,883
29,926
12,381
10,354¥ 79,544

¥

¥

–
–
–
(4)
(4)

27

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments (continued)
Thousands of U.S. dollars
2011

Cash and cash deposits
Notes and accounts receivable oncompleted construction contracts
Investments in securities
Total assets
Notes and accounts payable on
construction contracts
Short-term bank loans
Other accounts payable
Long-term debt
Total liabilities

Carrying value$ 308,888

Estimated fairvalue
$ 308,888

Difference$–

741,539
59,459$1,109,886

745,436
59,471$1,113,795

3,897
12
$ 3,909$ 388,780
328,466
181,046
95,094$ 993,386$ 388,780
328,466
181,046
95,646$ 993,938

$

–
–
–
552
$ 552

Methods to determine the estimated fair value of financial instruments and other mattersrelated to securities and derivative transactions:
Cash and cash deposits
Since these items are settled in a short period of time, their carrying values approximate
the fair value.
Notes and accounts receivable on completed construction contracts
For the valuation of notes and accounts receivable on completed construction contracts,
the Company and its consolidated subsidiaries use the present value based on assumptions
such as the collection term of each receivable and discount rates reflected in each credit
risk.
Investments in securities
The estimated fair values of equity securities are based on quoted market prices. The
estimated fair value of debt securities are based on the price provided by the financial
institutions making markets in these securities.
Notes and accounts payable on construction contracts, other accounts payable andshort-term bank loans
Since these items are settled in a short period of time, their carrying values approximate
the fair value.

28

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments (continued)
Long-term debt
The estimated fair values of long-term debt are based on present value of the total amountincluding principal and interest, discounted by the expected interest rate in the case of new
borrowings of the same loan as in the amount of the balance as of the end of the period.
Floating interest rates for long-term loans were hedged by interest-rate swap agreements
and accounted for as loans with fixed interest rates. The estimated fair value of thoselong-term loans is reasonably based on the present value of the total of principals, interests
and net cash flows of swap agreements discounted by the interest rates, estimatedreasonably, applicable to loans made under similar circumstances.
Derivatives transactions
Refer to the Note 19 for fair value information at March 31, 2011 of derivativetransactions.
Financial instruments for which it is extremely difficult to determine the fair value:
Unlisted equity securities of ¥893 million ($10,740 thousand) reflected in the consolidatedbalance sheet at March 31, 2011 are based neither on market value nor estimated future
cash flow, and it is difficult to determine the estimated fair value. Therefore, they are notincluded in the above table.
The redemption schedule for receivables and marketable securities with maturity dates at
March 31, 2011 is summarized as follows:

Cash deposits
Notes and accounts receivable oncompleted construction contracts
Investments in securities
Held-to-maturity debt securities
Total assets

Cash deposits
Notes and accounts receivable oncompleted construction contracts
Investments in securities
Held-to-maturity debt securities
Total assets

Within 1 year
¥ 25,677

Millions of yen
Over 1 year
within 5 years¥–

Over 5 years¥–

53,832

3,852

3,975

–
¥ 79,50930¥ 3,882–¥ 3,975

Thousands of U.S. dollars
Over 1 year
Over 5 years
Within 1 year
within 5 years$ 308,804$–$–
647,408

46,32647,805–$ 956,212

361$ 46,687–$ 47,805

Refer to Note 9 for the redemption schedule at March 31, 2011 of long-term debt.

29

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19.

Derivatives

The Company utilizes interest-rate swaps to hedge the risk of fluctuation in interest rates
on its borrowings. The Company does not enter into derivatives transactions for
speculative or short-term trading purposes.
The Company is exposed to certain market risk arising from interest-rate swap agreements.
It is also exposed to the risk of credit loss in the event of nonperformance by thecounterparties with respect to interest-rate swap agreements; however, the Company does
not anticipate nonperformance by any of the counterparties, all of whom are financial
institutions with high credit ratings.
Derivative transaction to which hedge accounting is applied
Interest-rate related transactions

Method of hedge
accounting
Swap rate applied
to underlying
debt

Method of hedge
accounting
Swap rate applied
to underlying
debt

Transaction
Interest rate swap:
Receive / floating
and pay / fixed
Total

Transaction
Interest rate swap:
Receive / floating
and pay / fixed
Total

Millions of yen
2011(Including portion in
Notional amount excess of one year)

¥
¥

850
850

¥
¥

–
–

Millions of yen
2010(Including portion in
Notional amount excess of one year)¥ 2,915¥ 2,915¥ (850)¥ (850)Estimated
fair value

(*)
(*)

Estimated
fair value

(*)
(*)

Thousands of U.S. dollars
Method of hedge
accounting
Swap rate applied
to underlying
debt

Transaction
Interest rate swap:
Receive / floating
and pay / fixed
Total

2011
(Including portion in
Notional amount excess of one year)$ 10,222$ 10,222$$––

Estimated
fair value

(*)
(*)

*Because interest rate swap agreements are accounted for as if the interest rates applied tothe swaps had originally applied to the underlying long-term loans payable, their fairvalues were included in long-term debt.
30

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

20. Amounts per Share
Amounts per share at March 31, 2011 and 2010 and for the years then ended were as
follows:
2011

2010

U.S. dollars
2011¥ 258.94
4.06¥ 260.16
6.37$ 3.11
0.05

Yen
Net assets
Net income

Information used in the computation of net income per share for the years ended March 31,
2011 and 2010 is presented as follows:
Millions of yen
2010
2011
Net income
Net income not applicable tocommon shareholders
Net income used in the calculationof net income per share

Thousands of
U.S. dollars
2011

¥ 310

¥ 485

$ 3,728

–

–

–

¥ 310

¥ 485

$ 3,728

Thousands of shares
2010
2011
Weighted-average number of shares used in
the calculation of net income per share

76,121

76,127

Net assets per share are based on the number of shares of common stock outstanding at theyear end.
Net income per share is computed based on the net income attributable to shareholders ofcommon stock and the weighted-average number of shares of common stock outstanding
during the year. Diluted amounts per share have not been presented for the years ended
March 31, 2011 and 2010 since neither the Company nor any of the consolidated
subsidiaries had any potentially dilutive shares at March 31, 2011 and 2010.

31

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

21. Segment Informationa.

Segment Information(1) Overview of reporting segments
The reporting segments of the Company and its consolidated subsidiaries arecomponents for which discrete financial information is available and whose operating
results are regularly reviewed by the Company’s Board of Directors to make decisions
about resource allocation and assess their performance.
The Company and its consolidated subsidiaries mainly operate in the construction
business and have two reporting segments, which are the Building Construction
Segment and the Civil Engineering Segment.
(2) Method of calculating sales and income in reporting segments
The method of accounting for reporting segments is, in principle, the same as stated in
Note 4 “Summary of Significant Accounting Policies.” The income of reporting
segments are calculated on the basis of operating income. Intersegment sales arerecorded based on current market prices.
Millions of yen
2011

Net sales and income:Sales to third parties
Intersegment sales
Net sales
Segment income

Reporting Segments
Civil
Building
Total
Construction Engineering

Others

Sub total

Adjustments¥ 104,762
8
104,770¥ 6,630¥ 1,850
136
1,986
¥ 194

¥ 128,202
144
128,346¥ 7,980

¥

–
(144)
(144)
¥ (6,757)¥ 128,202–
128,202¥ 1,223

Total¥ 21,590–
21,590¥ 1,156¥ 126,352
8
126,360¥ 7,786

Total

Millions of yen
2010

Net sales and income:Sales to third parties
Intersegment sales
Net sales
Segment income

Reporting Segments
Building
Civil
Total
Construction Engineering

Others

Sub total

Adjustments¥ 124,413
8
124,421¥ 7,084¥ 2,162
135
2,297
¥ 297

¥ 154,888
143
155,031¥ 8,536¥¥ 28,313–
28,313¥ 1,155¥ 152,726
8
152,734¥ 8,239

–
(143)
(143)
¥ (6,986)¥ 154,888–
154,888¥ 1,551

32

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

21. Segment Information (continued)a.

Segment Information (continued)
Thousands of U.S. dollars
2011
Reporting Segments

Net sales and income:Sales to third parties
Intersegment sales
Net sales
Segment incomeb.

Building
Construction

Civil
Engineering

Total

Others

Sub total

Adjustments$1,259,916
96$ 259,651–$1,519,567
96$ 22,249
1,624$ 1,541,816
1,732

$

1,260,012

259,651

1,519,663

23,885

13,903$$79,735$93,638$ 2,333

$

Total

–
(1,732)$ 1,541,816–

1,543,548(1,732)

1,541,816

95,971$ (81,263)$

Related information(1) Information by products and services
Disclosure of information by products and services for years ended March 31, 2011 and2010 have been omitted as the Company classifies such information in the same way as it
does its reporting segments.
(2) Information by geographical segment
Disclosure of sales and property, plant and equipment by geographical area for the years
ended and as of March 31, 2011 and 2010 have been omitted as sales to domestic
customers were in excess of 90% of consolidated net sales, and the balance of property,
plant and equipment in Japan was in excess of 90% of consolidated property, plant andequipment.
(3) Information by major customers
Disclosure of information by major customers for years ended March 31, 2011 and 2010
have been omitted as sales to each customer were less than 10% of consolidated net sales.

33

14,708

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

21. Segment Information (continued)c.

Impairment losses on tangible fixed assets by reporting segment
Millions of yen
2011
Reporting Segments
Civil
Building
Construction Engineering

Impairment losses ontangible fixed assets

¥–

¥–

Total

Other

Elimination

Total

¥–

¥ 435

¥4

¥ 439

Thousands of U.S. dollars
2011
Reporting Segments
Civil
Building
Total
Other
Elimination
Construction Engineering
Impairment losses ontangible fixed assets

$–

$–

$–

$ 5,232

$ 48

Total
$ 5,280

Supplementary information
Effective the year ended March 31, 2011, the Company and its consolidated subsidiaries
have adopted “Revised Accounting Standard for Disclosures about Segments of anEnterprise and Related Information” ASBJ Statement No.17, revised on March 27, 2009)
and “Guidance on Accounting Standard for Disclosures about Segments of an Enterpriseand Related Information” (ASBJ Guidance No.18, issued on December 27, 2007).
22. Subsequent Event
The following distribution of retained earnings of the Company, which has not beenreflected in the accompanying consolidated financial statements for the year ended March
31, 2011, was approved at the annual general meeting of the shareholders held on June 28,
2011:Year-end cash dividends (¥2.0 (U.S.$0.02) per share)

Millions of yen¥ 152

Thousands of
U.S. dollars$ 1,82834