Consolidated Financial Statements
Asanuma Corporation
Year ended March 31, 2016
with Independent Auditor’s ReportAsanuma Corporation
Consolidated Financial Statements
Year ended March 31, 2016

Contents

Consolidated Financial Statements
Independent Auditor’s Report ............................................................................................. 1
Consolidated Balance Sheet ................................................................................................ 2
Consolidated Statement of Income...................................................................................... 4
Consolidated Statement of Comprehensive Income............................................................ 5
Consolidated Statement of Changes in Net Assets .............................................................. 6
Consolidated Statement of Cash Flows ............................................................................. 8
Notes to Consolidated Financial Statements ..................................................................... 10

Independent Auditor’s Report
The Board of Directors
Asanuma Corporation
We have audited the accompanying consolidated financial statements of Asanuma Corporationand its consolidated subsidiaries, which comprise the consolidated balance sheet as at March 31,
2016, and the consolidated statements of income, comprehensive income, changes in net assets,
and cash flows for the year then ended and a summary of significant accounting policies andother explanatory information, all expressed in Japanese yen.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with accounting principles generally accepted in Japan, andfor designing and operating such internal control as management determines is necessary toenable the preparation and fair presentation of the consolidated financial statements that are freefrom material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on
our audit. We conducted our audit in accordance with auditing standards generally accepted inJapan. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the consolidated financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. The purpose of an audit of theconsolidated financial statements is not to express an opinion on the effectiveness of the entity’s
internal control, but in making these risk assessments the auditor considers internal controls
relevant to the entity’s preparation and fair presentation of the consolidated financial statements
in order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by management, as well as evaluating the overall presentation of theconsolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in allmaterial respects, the consolidated financial position of Asanuma Corporation and its
consolidated subsidiaries as at March 31, 2016, and their consolidated financial performance andcash flows for the year then ended in conformity with accounting principles generally accepted inJapan.
Convenience Translation
We have reviewed the translation of these consolidated financial statements into U.S. dollars,presented for the convenience of readers, and, in our opinion, the accompanying consolidated
financial statements have been properly translated on the basis described in Note 2.

June 29, 2016
Osaka, Japan1

Asanuma Corporation
Consolidated Balance Sheet
March 31, 2016

Millions of yen
2016
2015
AssetsCurrent assets:
Cash and cash deposits (Notes 7, 9 and 18)
Receivables:
Notes receivable (Note 18)
Accounts receivable on completed construction
contracts (Note 18)
Other accounts receivable (Note 18)
Allowance for doubtful accounts

Thousands of
U.S. dollars(Note 2)
2016

¥ 32,158¥ 32,143$ 285,392

10,0262,281

88,97838,4452,563(210)
50,82443,4905,438(198)
51,011

341,187
22,746(1,864)451,047

6,670
152
43
6,865

5,560
166
43
5,769

59,194
1,349
382
60,925

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

957
400
91,2040363
89,2868,493
3,550
809,407

Property and equipment, at cost:
Land (Note 9)
Buildings and structures (Note 9)
Machinery, equipment and vehicles
Tools, furniture and fixtures
Less accumulated depreciation
Construction in progress
Property and equipment, net

2,418
6,235
338
1,031
(4,867)
1
5,156

2,430
6,203
339
983
(4,843)–
5,112

21,45955,3343,000
9,150(43,194)945,758

8,255

8,263

73,261

105
136
397
1,474
(663)
9,704

97
245
382
1,454
(695)
9,746

932
1,207
3,523
13,081(5,884)
86,120¥ 106,064¥ 104,144$ 941,285

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

Investments and other assets:
Investments in securities (Notes 8, 9 and 18)
Investments in an unconsolidated subsidiary andaffiliates (Notes 8 and 18)
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
2016
2015
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 (Note 18)
Advances received on uncompleted construction
contracts
Deposits received
Income taxes payable (Note 10)
Deferred income taxes (Note 10)
Provision for compensation for completed
construction
Provision for loss on construction contracts (Note 14)
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 9 and 18)
Liability for retirement benefits (Note 11)
Deferred income taxes (Note 10)
Other long-term liabilities
Total long-term liabilities
Total liabilities

Net assets
Shareholders’ equity (Note 13):
Common stock:
Authorized –293,565,000 shares
Issued–77,386,293 shares in 2016 and 2015
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income:Net unrealized holding gain on investments insecurities
Retirement benefits liability adjustments (Note 11)
Total accumulated other comprehensive income
Non-controlling interests
Total net assets (Note 20)
Total liabilities and net assets

Thousands of
U.S. dollars(Note 2)2016

¥ 15,668
1,053¥ 15,101
5,046$ 139,049
9,345

5,275
25,734
7,176
38,185

5,683
23,99910,32940,011

46,814228,381
63,685
338,880

8,130
3,339
547
–

8,605
2,513
92
5

72,151
29,633
4,854
–

680
405
5,329
73,336

688
1,282
4,636
77,9796,035
3,594
47,293650,834

7,171
4,269
945
418
12,80386,139

6,212
4,275
1,364
663
12,51490,49363,64037,886
8,387
3,710
113,623
764,457

8,419
970
9,479
(140)
18,728

8,419
970
2,903
(137)
12,15574,716
8,608
84,123(1,242)
166,205

2,517(1,435)
1,082
115
19,925¥ 106,064

2,696(1,296)1,400
96
13,651¥ 104,144

22,337(12,735)
9,602
1,021
176,828$ 941,285

See accompanying notes to consolidated financial statements.
3

Asanuma Corporation
Consolidated Statement of Income
Year ended March 31, 2016

Millions of yen
2016
2015
Net sales (Note 21):
Construction contracts
Other¥ 145,663
1,319
146,982¥ 125,481
1,356
126,837$ 1,292,714
11,7051,304,419

133,517
1,058
134,575

117,752
1,129
118,881

1,184,922
9,389
1,194,311

12,146261
12,407

7,729
227
7,956

107,792
2,316
110,108

5,953
6,454

5,348
2,608

52,831
57,277

270
(41)
(460)
(51)
(11)
(12)
6,149

277
52
(536)
(32)
200
(36)
2,533

2,396
(364)
(4,082)
(453)
(98)
(106)
54,570622(1,219)
(597)
6,746

174
(447)
(273)
2,806

5,520
(10,819)(5,299)59,869

17
6,729

13
2,793

151
59,718

Cost of sales (Note 14):
Construction contracts
Other
Gross profit:
Construction contracts
Other
Selling, general and administrative
expenses (Note 15)
Operating income (Note 21)
Other income (expenses):
Interest and dividends income
Foreign exchange (loss) gain, net
Interest expenses
Guarantee fees
(Loss) gain on sales of property and equipment, net
Other, net
Profit before income taxes
Income taxes (Note 10):
Current
DeferredProfitProfit attributable to:Non-controlling interests
Owners of parent (Note 20)

Thousands of
U.S. dollars(Note 2)
2016

¥

¥

$

See accompanying notes to consolidated financial statements.
4

Asanuma Corporation
Consolidated Statement of Comprehensive Income
Year ended March 31, 2016

Millions of yen
2015
2016
¥ 6,746¥ 2,806

Thousands of
U.S. dollars(Note 2)
2016
$ 59,869

ProfitOther comprehensive (loss) income (Note 16):
Net unrealized holding (loss) gain on investments
in securities
Retirement benefits liability adjustments
Total other comprehensive (loss) income
Comprehensive income

(179)
(139)
(318)
¥ 6,428

1,238
696
1,934
¥ 4,740(1,589)(1,233)(2,822)$ 57,047

Comprehensive income attributable to:
Owners of parent
Non-controlling interests¥ 6,41117¥ 4,72713$ 56,896
151

See accompanying notes to consolidated financial statements.
5

Asanuma Corporation
Consolidated Statement of Changes in Net Assets
Year ended March 31, 2016

Millions of yen

Balance at April 1, 2014, as
originally reported
Cumulative effect of changein accounting policy
Balance at April 1, 2014, as
adjusted
Profit attributable to ownersof parent
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at April 1, 2015
Profit attributable to ownersof parent
Cash dividends
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at March 31, 2016

Commonstock

CapitalsurplusRetainedearnings

Treasurystock,
at costTotal
shareholders’equity¥ 8,419

¥ 970

¥

(319)

¥ (137)

¥

–

–

429

–

429

8,419

970

110

(137)

9,362

–
–
–

–
0
–

2,793
–
–

–
0
(0)

2,793
0
(0)

–
8,419

–
970

–
2,903

–
(137)

–
12,155

–
–
–

–
–
–

6,729
(153)
–

–
(3)

6,729
(153)
(3)

–
¥ 8,419–¥ 970–¥ 9,479–¥ (140)–¥ 18,728

Noncontrollinginterests

Total net
assets

(534)

¥ 83

¥ 8,482

8,933

Millions of yen

Balance at April 1, 2014, as
originally reported
Cumulative effect of changein accounting policy
Balance at April 1, 2014, as
adjusted
Profit attributable to ownersof parent
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at April 1, 2015
Profit attributable to ownersof parent
Cash dividends
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at March 31, 2016

Net
unrealized
holding
gain oninvestments
in securities

Retirement
benefits
liability
adjustments¥ 1,457¥ (1,991)

–

–

–

–

429

1,457

(1,991)

(534)

83

8,911

–
–
–

–
–
–

–
–
–

–
–
–

2,793
0
(0)

1,239
2,696

695
(1,296)

1,934
1,400

13
96

1,947
13,651

–
–
–

–
–
–

–
–
–

–
–
–

6,729
(153)
(3)

(179)
¥ 2,517(139)¥ (1,435)(318)¥ 1,082

19
¥ 115

(299)
¥ 19,925

Total
accumulated
othercomprehensive
income¥6Asanuma Corporation
Consolidated Statement of Changes in Net Assets (Continued)
Year ended March 31, 2016

Thousands of U.S. dollars (Note 2)

Balance at April 1, 2015
Profit attributable to ownersof parent
Cash dividends
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at March 31, 2016

Commonstock

CapitalsurplusRetainedearnings

Treasurystock,
at costTotal
shareholders’equity$ 74,716$ 8,608$ 25,763$ (1,215)$ 107,872

–
–
–

–
–
–

59,718(1,358)
–

–
–
(27)

59,718(1,358)(27)–$ 74,716–$ 8,608–$ 84,123–$ (1,242)–$ 166,205

Thousands of U.S. dollars (Note 2)

Balance at April 1, 2015
Profit attributable to ownersof parent
Cash dividends
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at March 31, 2016

Net
unrealized
holding
gain oninvestments
in securities$ 23,926

Retirement
benefits
liability
adjustments$ (11,502)

Total
accumulated
othercomprehensive
income$ 12,424

NonControllinginterests$ 852

Total net
assets$ 121,148

–

–

–

–

59,718

–
–

–
–

–
–

–
–

(1,358)(27)(1,589)$ 22,337(1,233)$ (12,735)(2,822)$ 9,602169$ 1,021(2,653)$ 176,828

See accompanying notes to consolidated financial statements.
7

Asanuma Corporation
Consolidated Statement of Cash Flows
Year ended March 31, 2016

Millions of yen
2016
2015
Cash flows from operating activities:
Profit before income taxes
Adjustments for:
Depreciation and amortization
Decrease in allowance for doubtful accounts
Decrease in provision for bonuses
Decrease in provision for loss on construction contracts
Decrease in liability for retirement benefits
Interest and dividends income
Interest expenses
Foreign exchange loss (gain), net
Loss (gain) on sales of property and equipment, net
Loss on valuation of membership
Loss on valuation of inventories(Increase) decrease in notes and accounts receivable oncompleted construction contracts(Increase) decrease in inventories
Decrease (increase) in other accounts receivable
Increase in notes and accounts payable on construction
contracts(Decrease) increase in other accounts payable
Decrease in advances received on uncompleted
construction contracts
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:(Increase) decrease in time deposits
Purchases of property and equipment
Proceeds from sales of property and equipment
Purchases of intangible assets
Purchases of investments in securities
Proceeds from sales and redemption of investments insecurities
Collection of loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other, net
Net cash (used in) provided by investing activities

Thousands of
U.S. dollars(Note 2)
2016

¥ 6,149¥ 2,533$ 54,570

333
(19)
–
(878)
(146)
(270)
460
41
11
9
11

356
(98)
(159)
(467)
(81)
(277)
536
(52)
(200)
1
85

2,955
(169)
–
(7,792)(1,296)(2,396)
4,082
364
98
80
98

(2,700)(1,107)
2,857

4,729
449
(3,578)(23,962)(9,824)25,355

1,327(3,130)2
189

11,777(27,778)

(475)
1,181
3,654
267
(452)
(142)
3,327

(2,313)
(302)
1,353
274
(567)
(189)
871

(4,215)
10,481
32,4282,369(4,011)(1,260)29,526

(150)
(256)
15
(115)
(332)

837
(203)
1,092
(66)
(7)

(1,331)(2,272)133(1,021)(2,946)

0
117
(275)
183
11
¥ (802)

–
25
(13)
108
78
¥ 1,851

0
1,038(2,441)
1,624
98$ (7,118)

8

Asanuma Corporation
Consolidated Statement of Cash Flows (continued)
Year ended March 31, 2016

Millions of yen
2016
2015
Cash flows from financing activities:
Decrease in short-term bank loans, net
Proceeds from long-term debt
Repayment of long-term debt
Cash dividends paid
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 7)

Thousands of
U.S. dollars(Note 2)2016

¥ (2,769)
2,012(1,710)(152)(1)(2,620)¥ (1,044)–(1,692)(0)(1)(2,737)$ (24,574)
17,856(15,176)(1,349)(9)(23,252)

(40)
(135)
32,143¥ 32,008

52
37
32,106¥ 32,143(354)(1,198)285,259$ 284,061

See accompanying notes to consolidated financial statements.
9Asanuma Corporation
Notes to Consolidated Financial Statements
March 31, 2016
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.
Certain amounts in the prior year’s financial statements have been reclassified to conformto the current year’s presentation.
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 ¥112.68 = U.S.$1.00, theexchange rate prevailing on March 31, 2016. This translation should not be construed asa representation that yen can be converted into U.S. dollars at the above or any other rate.
3.

Principles of Consolidation

At March 31, 2016 and 2015, the Company had 6 and 5 subsidiaries, respectively. The
consolidated financial statements for the years ended March 31, 2016 and 2015 include theaccounts of the Company and its 5 and 4 subsidiaries, respectively.
The Company applied the equity method to its investments in 3 affiliates, at March 31,
2016 and 2015 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 total assets, net sales, profit or loss and retained earnings were notmaterial to the consolidated financial statements.

10Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

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 two categories: held-to-maturity debt
securities or other securities. Held-to-maturity debt securities are stated at amortizedcost. Marketable securities classified as other securities are carried at fair value withany changes in unrealized holding gain or loss, net of the applicable income taxes,
reported as a separate component of accumulated other comprehensive income (loss).
Non-marketable securities classified as other securities are carried at cost determinedby 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.
(d) Inventories
Cost of uncompleted construction contracts are stated at cost determined on an
individual project basis. Real estate held for sale is stated at the lower of cost or net
selling value, cost being determined on an individual project basis. Raw materials
and supplies are stated at the lower of cost or net selling value, cost being determinedby the period average method.
(e) Property and equipment (Other than leased assets)
Property and equipment is stated on the basis of cost. Depreciation is calculated by
the declining-balance method over the estimated useful lives of the respective assets;
however, the straight-line method is applied to buildings (except for structuresattached to the buildings) acquired on or after April 1, 1998.

11

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(f) Intangible assets (Other than leased assets)
Amortization of intangible assets is calculated by the straight-line method over theestimated useful lives of the respective 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 over an estimated useful life of 5 years.
(g) Leases
Leased assets held under finance leases that transfer ownership are depreciated by thesame methods used for owned fixed assets. For finance leases that do not transfer
ownership, depreciation expense is calculated based on the straight-line method overthe leased period of the lease with a residual value of zero.
(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 based on the historical
data on the compensation cost.
(i) Provision for loss on construction contracts
A provision for loss on construction contracts is provided for uncompleted
construction projects when a future loss is expected and a reasonable estimate of theamount can be made at the fiscal year end.
(j) Retirement benefits
Liability for retirement benefits for employees has been provided at an amountcalculated based on the retirement benefit obligation after the fair value of the pension
plan assets are deducted. Retirement benefits are attributed to each period by thebenefit formula method over the estimated years of service of the 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 in the year following the year inwhich the gain or loss is recognized by the straight-line method over a period of
principally 10 years, which is within the average remaining years of service of theeligible employees.
12Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(k) Income taxes
Deferred tax assets and liabilities have been recognized in the consolidated financial
statements with respect to the differences between the financial reporting and tax
bases of the assets and liabilities, and were measured using the enacted tax rates andlaws which will be in effect when the differences are expected to reverse.
(l) Hedge accounting
Interest-rate swaps which meet certain conditions are accounted for as if the interest
rates applied to the swaps had originally applied to the underlying debt (the “special
treatment”).
(m) 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 the percentage-ofcompletion method totaled ¥143,677 million ($1,275,089 thousand) and ¥123,189
million for the years ended March 31, 2016 and 2015, respectively.
5.

Accounting Change

The Company and its domestic subsidiaries adopted “Accounting Standard for Business
Combinations” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 21 revised
on September 13, 2013), “Accounting Standard for Consolidated Financial Statements”(ASBJ Statement No. 22 revised on September 13, 2013) and “Accounting Standard forBusiness Divestitures” (ASBJ Statement No. 7 revised on September 13, 2013) effectivefrom April 1, 2015. As a result, under these accounting standards, the presentation
method of profit attributable to owners of parent was amended and the reference to“minority interests” was changed to “non-controlling interests.” The consolidated
financial statements for the previous year have been reclassified to reflect these changes inpresentation.

13

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

6.

Accounting Standards Issued but Not Yet Effective

Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No.
26, March 28, 2016)(1) Overview
Regarding the treatment of the recoverability of deferred tax assets, a review was
conducted following the framework of the Japanese Institute of Certified Public
Accountants Audit Committee Report No. 66 “Audit Treatment on Determining the
Recoverability of Deferred Tax Assets,” whereby companies are categorized into fivecategories and deferred tax assets are calculated based on each of these categories.
-

Treatment of companies that do not satisfy any of the category requirements for(Category 1) through (Category 5)
Category requirements for (Category 2) and (Category 3)
Treatment related to future deductible temporary differences which cannot bescheduled in companies that qualify as (Category 2)
Treatment related to the reasonable estimable period of future pre-adjusted
taxable income in companies that qualify as (Category 3)
Treatment in cases that companies that satisfy the category requirements for(Category 4) but qualify as (Category 2) or (Category 3)(2) Scheduled date of adoption
The Company expects to adopt the revised implementation guidance effective from
April 1, 2016.
(3) Impact of adopting revised implementation fuidance
The Company is currently evaluating the effect of adopting this revised
implementation guidance on its consolidated financial statements.

14

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

7.

Cash and Cash Equivalents

A reconciliation of cash and deposits in the accompanying consolidated balance sheets at
March 31, 2016 and 2015 and cash and cash equivalents in the accompanying
consolidated statements of cash flows for the years then ended is as follows:
Millions of yen
At March 31,
2016
2015
¥ 32,158¥ 32,143

Cash and cash deposits
Time deposits with a maturity of morethan three months after the purchasedateCash and cash equivalents
8.

(150)
¥ 32,008–¥ 32,143

Thousands of
U.S. dollars
2016$ 285,392(1,331)$ 284,061

Investments in Securities

At March 31, 2016 and 2015, 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

¥ 15
¥ 15

Millions of yen
2016
Estimated Unrealized Carrying
fair value
gain
value

¥ 16
¥ 16

¥1
¥1

¥ 15
¥ 15

2015
Estimated
fair value

Unrealized
gain

¥ 16
¥ 16

¥1
¥1

Thousands of U.S. dollars
2016
Carrying Estimated Unrealizedvalue
fair value
gain
Held-to-maturity debt
securities whose
estimated fair value
exceeds their carrying
value:
Government andmunicipal bonds

$ 133
$ 133

$ 142
$ 142

$9
$9

15

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

8.

Investments in Securities (continued)

At March 31, 2016 and 2015, marketable securities classified as other securities were as
follows:
Millions of yen

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

Acquisition
costs

2016
Carrying
value

Unrealized
gain (loss)

Acquisition
costs

2015
Carrying
value

Unrealized
gain (loss)¥ 3,595¥ 7,160¥ 3,565¥ 3,581¥ 7,441¥ 3,860346¥ 3,941298¥ 7,458(48)¥ 3,51728¥ 3,60926¥ 7,467(2)¥ 3,858

Thousands of U.S. dollars
2016
Acquisition Carrying
Unrealized
costs
value
gain (loss)
Other securities whosecarrying value exceeds
their acquisition costs:
Equity securities
Other securities whosecarrying value does notexceed their acquisition
costs:
Equity securities$ 31,905$ 63,543$ 31,638

3,071$ 34,976

2,645$ 66,188(426)$ 31,212

Refer to Note 18 “Financial Instruments” for the redemption schedule at March 31, 2016
for held-to-maturity debt securities.

16

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

9.

Short-Term Bank Loans and Long-Term Debt

Short-term bank loans had average interest rates of 1.84% at March 31, 2016 and 1.91% at
March 31, 2015.
Long-term debt at March 31, 2016 and 2015 is summarized as follows:
Millions of yen
2016
2015
Unsecured loans from banks, payable inyen, at rates ranging from 2.59% to 2.70%
Secured loans from insurance companies,
payable in yen at rates ranging from
1.06% to 2.50%
Total
Less current portion included

¥

60

8,164
8,224
(1,053)¥ 7,171¥

68

11,190
11,258(5,046)¥ 6,212

Thousands of
U.S. dollars
2016
$

532

72,45372,985(9,345)$ 63,640

The aggregate annual maturities of long-term debt subsequent to March 31, 2016 aresummarized as follows:
Years ending March 31,
2017
2018
2019
2020
2021 and thereafter

Millions ofyen¥ 1,053
1,047
3,099
271
2,754
¥ 8,224

Thousands of
U.S. dollars$ 9,345
9,292
27,503
2,405
24,440$ 72,985

Assets pledged at March 31, 2016 and 2015 as collateral for long-term debt and lines ofcredit of the Company are summarized as follows:

Cash and cash deposits
Buildings and structures
Land
Investments in securities

Millions of yen
2016
2015
¥
–
¥ 837
1,571
1,636
2,035
2,035
6,381
6,522
¥ 9,987¥11,030

Thousands of
U.S. dollars
2016$–
13,942
18,06056,630$ 88,632

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, 2016 and 2015 amounted to ¥6,720 million ($59,638 thousand) and ¥8,550 million as
collateral for loans of ¥6,152 million ($54,597 thousand) and ¥7,854 million, respectively.
17

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

9.

Short-Term Bank Loans and Long-Term Debt (continued)

Assets of the Company pledged at March 31, 2016 and 2015 as collateral for loans ofaffiliates engaged in the PFI business are summarized as follows:
Millions of yen
2016
2015
¥ 82
¥ 74
128
130
¥ 210
¥ 204

Investments in securities
Long-term loans receivableThousands of
U.S. dollars
2016
$ 728
1,136
$ 1,864

In order to achieve more efficient financing, the Company has concluded line-of-credit
agreements with certain financial institutions. The status of these lines of credit at March
31, 2016 and 2015 is as follows:

Lines of credit
Credit utilized
Available credit

Millions of yen
2016
2015
¥ 5,000¥ 5,000––¥ 5,000¥ 5,000

Thousands of
U.S. dollars
2016$ 44,373–$ 44,373

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 statutory
tax rates of approximately 33.2% and 35.9% for the years ended March 31, 2016 and 2015,
respectively.
A reconciliation of the statutory tax rates and the effective tax rates for the years ended
March 31, 2016 and 2015 as a percentage of profit before income taxes is summarized asfollows:
Statutory tax rates
Permanently non-tax-deductible expenses
Permanently non-taxable income
Per capita portion of inhabitants’ taxes
Tax credit for corporation tax
Valuation allowance
Equity in earnings of affiliates
Effect of changes in statutory tax rates
Other
Effective tax rates

2016
33.2 %
1.1
(0.3)
2.0
(0.9)
(46.1)
(0.1)
1.4
(0.0)
(9.7)%

2015
35.9 %
1.6
(1.0)
5.0
(0.7)
(50.0)
(0.4)
(0.9)
(0.3)
(10.8) %18

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, 2016 and 2015 are summarized as follows:
Millions of yen
2016
2015
Deferred tax assets:
Allowance for doubtful accounts
Provision for compensation forcompleted construction
Inventories
Provision for loss on construction
contracts
Liability for retirement benefits
Assets transferred to defined
contribution pension plans
Loss on impairment of fixed assets
Loss on revaluation of investments insecurities
Tax loss carryforwards
Other
Gross deferred tax assets
Less valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized holding gain on investments
in securities
Deferred capital gains on property
Other
Total deferred tax liabilities
Net deferred tax assets (liabilities)

¥

268

¥

289

Thousands of
U.S. dollars
2016
$

2,378

208
94

229
103

1,846
834

124
1,309

426
1,387

1,100
11,617

135
601

238
651

1,198
5,334

96
2,251
466
5,552
(4,350)
1,202

102
3,389
645
7,459
(7,459)0852
19,977
4,136
49,272(38,605)
10,667(1,005)(185)(1,166)(202)(1)(1,369)¥ (1,369)(8,919)(1,642)–(1,190)¥
12–(10,561)$
106

The “Act to Partially Revise the Income Tax Act and Others” (Act No. 15 of 2016) and“Act to Partially Revise the Local Tax Act and Others” (Act No. 13 of 2016) were enacted
during the Japanese Diet session on March 29, 2016. As a result, the effective statutory
tax rate used to measure the Company’s deferred tax assets and liabilities was changed
from 32.5% used in the previous fiscal year to 30.7% for the temporary differences
expected to be realized or settled in the years beginning April 1, 2016 and 2017 and to
30.4% for the temporary differences expected to be realized or settled in the years from
April 1, 2018. As a result of this change, net deferred tax assets after offsetting deferred
tax liabilities decreased by ¥20 million ($177 thousand), income taxes-deferred increasedby ¥87 million ($772 thousand), and unrealized holding gain on investments in securities
increased by ¥67 million ($595 thousand) as of and for the year ended March 31, 2016.

19

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

11. Retirement Benefits
1. Outline of retirement benefits for employees
The Company has funded or unfunded defined benefit pension plans and defined
contribution plans in order to allocate for employees’ retirement benefits. In addition tothese retirement benefit plans, the Company may pay additional retirement benefits whenemployees retire. All employees of Asanuma Tatemono K.K., a consolidated subsidiaryof the Company, have been loaned from the Company and the retirement benefit plan of
Asanuma Tatemono K.K. is included in those of the Company. The other consolidated
subsidiaries do not have any retirement pension plans.
Under the defined benefit plans, the Company pays lump-sum or pension payments, theamounts of which are determined by reference to employees’ ranks and length of service.
2.

Defined benefit plans(1) The changes in retirement benefit obligation for the years ended March 31, 2016
and 2015 are as follows:
Millions of yen
2015
2016
Balance at the beginning of the year, as
originally reported
Cumulative effect of change in accounting
policyBalance at the beginning of the year, as
adjustedService cost
Interest cost
Actuarial gain
Benefit paid
Balance at the end of the year

Thousands of
U.S. dollars
2016¥ 11,090¥ 12,036$ 98,420

–

(430)

–

11,090
388
110
(59)
(822)
¥ 10,707

11,606
396
115
(66)
(961)
¥ 11,090

98,420
3,443
976
(523)
(7,295)$ 95,021(2) The changes in plan assets for the years ended March 31, 2016 and 2015 are as
follows:

Balance at the beginning of the year
Expected return on plan assets
Actuarial (loss) gainContributions by the employer
Benefit paid
Balance at the end of the year

Millions of yen
2015
2016
¥ 6,554¥ 6,815
131
136
437
(245)
270
266
(534)
(577)
¥ 6,438¥ 6,815

Thousands of
U.S. dollars
2016$ 60,481
1,207(2,174)2,360(4,739)$ 57,135
20

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

11. Retirement Benefits (continued)
2.

Defined benefit plans (continued)(3) The following table sets forth the funded status of the plans and the amounts
recognized in the consolidated balance sheets as of March 31, 2016 and 2015 for
the Company’s and the consolidated subsidiary’s defined benefit plans:

Funded retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Liability recognized in the consolidatedbalance sheet

Millions of yen
2015
2016
¥ 6,923¥ 6,556(6,438)(6,815)
108
118
4,151
4,167
¥ 4,269¥ 4,275

Thousands of
U.S. dollars
2016$ 58,182(57,135)
1,047
36,839$ 37,886(4) The components of retirement benefit expense for the years ended March 31,
2016 and 2015 are as follows:

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial gain and loss
Retirement benefit expense

Millions of yen
2015
2016
¥ 388
¥ 396
110
115
(136)
(131)
47
193
¥ 409
¥ 573

Thousands of
U.S. dollars
2016$ 3,443976(1,207)418$ 3,630(5) The components of retirement benefits liability adjustments included in othercomprehensive income (before tax effect) for the year ended March 31, 2016 and2015 are as follows:

Actuarial (loss) gain

Millions of yen
2015
2016
¥ (139)¥ 696

Thousands of
U.S. dollars
2016$ (1,233)

21

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

11. Retirement Benefits (continued)
2.

Defined benefit plans (continued)(6) The components of retirement benefits liability adjustments included inaccumulated other comprehensive income (loss) (before tax effect) as of March
31, 2016 and 2015 are as follows:

Unrecognized actuarial loss

Millions of yen
2015
2016
¥ (1,435)¥ (1,296)

Thousands of
U.S. dollars
2016$ (12,735)(7) The fair value of plan assets, by major category, as a percentage of total plan
assets as of March 31, 2016 and 2015 are as follows:
Debt securities
Equity securities
Cash and cash deposits
Other
Total

2016
71%
22%
7%
0%
100%

2015
71%
28%
1%
0%
100%

The expected long-term rate of return on plan assets is determined as a result of aconsideration of both the portfolio allocation at present and in the future, and the
expected long-term rate of return from multiple plan assets at present and in the
future.
(8) The assumptions used in accounting for the defined benefit plans are as follows:

Discount rate
Expected long-term rate of return onplan assets
Estimated rate of salary increase
3.

2016
1.0%

2015
1.0%

2.0%
9.1%

2.0%
9.1%

Defined contribution pension plan
Information on a defined contribution pension plan for the years ended March 31,
2016 and 2015 is as follows:
Millions of yen
2015
2016
Contributions to the defined
contribution pension plan

¥ 165

¥ 166

Thousands of
U.S. dollars
2016$ 1,46422

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

12. Asset Retirement Obligations
The Company and its domestic consolidated subsidiaries estimated the cost of restoration
obligations based on property lease agreements of the headquarter in Osaka and Tokyo
office. As the cost of the restoration obligations is immaterial, the information on asset
retirement obligations is omitted.
Regarding certain restoration obligations, the Company estimated nonrecoverable amountsof deposits for those premises and recorded the portion attributable to the year ended
March 31, 2016 as expenses, instead of recording asset retirement obligations.
13. Shareholders’ Equity
The Companies Act (the “Act”) provides that an amount equal to 10% of the amount 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 and the 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 by resolution of
the shareholders, or by the Board of Directors if certain conditions are met.
Under the Act, 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.
Movements in shares of common stock in issue and treasury stock during the years ended
March 31, 2016 and 2015 are summarized as follows:

Shares ofcommon stockin issue
Treasury stock

April 1, 2015

Number of shares
2016
Increase
Decrease

77,386,293
1,291,418–
12,044––

March 31, 2016
77,386,293
1,303,462

The increases of treasury stock were due to purchases of shares of less than one voting
unit.

23

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

13. Shareholders’ Equity (continued)

Shares ofcommon stockin issue
Treasury stock

April 1, 2014

Number of shares
2015
Increase
Decrease

77,386,293
1,287,575

–
4,554

–
711

March 31, 2015
77,386,293
1,291,418

The increases of treasury stock were due to purchases of shares of less than one voting
unit. The decreases of treasury stock were due to sales of shares at requests ofshareholders owning less than one voting unit.
14. Provision for Loss on Construction Contracts
Provision for loss on construction contracts included in cost of sales for the years ended
March 31, 2016 and 2015 amounted to ¥405 million ($3,594 thousand) and ¥1,282 million,
respectively.
15. Research and Development Costs
Research and development costs included in selling, general and administrative expenses
for the years ended March 31, 2016 and 2015 amounted to ¥168 million ($1,491 thousand)and ¥154 million, respectively.

24

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

16. Other Comprehensive (Loss) Income
The following table presents reclassification adjustments and tax effects allocated tocomponents of other comprehensive (loss) income for the years ended March 31, 2016 and2015:
Millions of yen
2015
2016
Net unrealized holding (loss) gain on
investments in securities:
Amount arising during the year
Before tax effectTax effectNet unrealized holding (loss) gain on
investments in securities, net
Retirement benefits liability adjustments:
Amount arising during the year
Reclassification adjustments for loss
realized in the statement of income
Retirement benefits liability adjustments,
net
Total other comprehensive (loss) income

Thousands of
U.S. dollars

2016¥ (340)(340)
161¥ 1,728
1,728
(490)

$ (3,017)(3,017)
1,428

(179)

1,238

(1,589)

(192)

497

(1,703)

53

199

470

(139)
¥ (318)696¥ 1,934(1,233)$ (2,822)

17. Leases
Future minimum lease payments subsequent to March 31, 2016 under non-cancellable
operating leases are summarized as follows:

Years ending March 31,
20172018 and thereafter

Millions of yen

Thousands of
U.S. dollars

¥ 231
692
¥ 923

$ 2,050
6,141$ 8,19125

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 borrowings from banks, and derivative transactions are
not carried 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 investments in securities, the Company and consolidated subsidiaries review thefair values of such financial instruments every quarter.
Notes and accounts payable on construction contracts are operating obligations andmostly are payable within one year.
Short-term bank loans and long-term debt are mainly utilized for business operations.
Long-term debt with variable interest rates is exposed to interest rate fluctuation risk.
However, to reduce such risk and fix interest expense for a certain long-term debt
bearing interest at variable rates, the Company utilizes interest rate swaps as ahedging instrument.
In addition, the Company follows internal policies which include procedures andauthorization processes governing derivatives within the actual demand.

26

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments (continued)(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, therefore the resulting amount may change if different
underlying assumptions are applied.
The carrying value, estimated fair value and resulting differences as of March 31, 2016
and 2015 are as follows. Financial instruments for which fair value is deemed extremely
difficult to determine are not included.
Millions of yen
2016

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

Carrying value¥ 32,158

Estimated fairvalue
¥ 32,158

Difference¥ –48,471
7,473¥ 88,102

48,9787,474¥ 88,610

507
1
¥ 508

¥ 16,721¥ 16,721¥

31,0097,176
7,171¥ 62,077

31,0097,176
7,565¥ 62,471

–
–
394
¥ 394

–

27

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments (continued)
Millions of yen
2015

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

Carrying value¥ 32,143

Estimated fairvalue
¥ 32,143

Difference¥ –45,771
5,438
7,482¥ 90,834

46,262
5,438
7,483¥ 91,326

491
–
1
¥ 492

¥ 20,147¥ 20,147¥

29,682
10,3296,212¥ 66,370

29,682
10,3296,558¥ 66,716

–
–
346
¥ 346

–

Thousands of U.S. dollars
2016

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

Carrying value

Estimated fairvalue

$ 285,392$ 285,392$

430,165
66,321$ 781,878

434,665
66,329$ 786,386

4,500
8$ 4,508$ 148,394$ 148,394$

275,195
63,68563,640$ 550,914

275,195
63,685
67,137$ 554,411

–
–
3,497
$ 3,497

Difference––

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.
28

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments (continued)
Notes and accounts receivable on completed construction contracts
The estimated fair value of notes and accounts receivable on completed construction
contracts are based on the present value discounted by the interest rates in considering thecollection term of each receivable and 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 prices provided by the financial
institutions.
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.
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 “Derivatives” for fair value information at March 31, 2016 and 2015of derivative transactions.
Financial instruments for which it is extremely difficult to determine the fair value:
Unlisted equity securities of ¥887 million ($7,872 thousand) and ¥878 million included in“Investments in securities” and “Investments in an unconsolidated subsidiary and affiliates”
in the consolidated balance sheets at March 31, 2016 and 2015, respectively, are basedneither on market value nor estimated future cash flow, and it is difficult to determine theestimated fair value. Therefore, they are not included in the above table.

29

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments (continued)
The redemption schedule for cash deposits, receivables and marketable securities withmaturity dates at March 31, 2016 is summarized as follows:

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

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

Within 1 year
¥ 32,154

Millions of yen
Over 1 year
Over 5 years
within 5 years
within 10 years¥–¥–

Over 10 years¥ –43,311

2,705

2,455

–

–
¥ 75,465–¥ 2,70515¥ 2,470–¥ –Within 1 year
$ 285,356

Thousands of U.S. dollars
Over 1 year
Over 5 years
within 5 years
within 10 years$–$–

Over 10 years$–

384,372

24,006

21,787––$ 669,728–$ 24,006

133$ 21,920

–
$ –

30

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19. Derivatives
Derivative transactions to which hedge accounting is applied
Interest-rate related transactions

Method of hedge
accounting
Transaction
Interest-rate
Interest rate swap:
swaps
Receive /(special
floating and pay
treatment)/ fixed

Method of hedge
accounting
Transaction
Interest-rate
Interest rate swap:
swaps
Receive /(special
floating and pay
treatment)/ fixedHedged item

Long-term debt
Total

Hedged item

Long-term debt
Total

Millions of yen
2016(Including portion in
Notional amount excess of one year)¥ 2,718¥ 2,718¥ 1,979¥ 1,979(*)(*)

Millions of yen
2015(Including portion in
Notional amount excess of one year)¥ 2,957¥ 2,957

Estimated
fair value¥ 2,218¥ 2,218

Estimated
fair value

(*)
(*)

Thousands of U.S. dollars
Method of hedge
accounting
Transaction
Interest-rate
Interest rate swap:
swaps
Receive /(special
floating and pay
treatment)/ fixedHedged item

Long-term debt
Total

2016
(Including portion in
Notional amount excess of one year)$ 24,121$ 24,121$ 17,563$ 17,563

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.

31

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

20. Amounts per Share
Amounts per share at March 31, 2016 and 2015 and for the years then ended were as
follows:
Yen
Net assets
Profit attributable toowners of parent
Cash dividends

2016

2015

U.S. dollars
2016¥ 260.38¥ 178.13$ 2.31

88.44
5.00

36.71
2.00

0.78
0.04

Information used in the computation of profit attributable to owners of parent per share forthe years ended March 31, 2016 and 2015 is presented as follows:

2016

2015

Thousands of
U.S. dollars
2016¥ 6,729¥ 2,793$ 59,718–––¥ 6,729¥ 2,793$ 59,718

Millions of yen
Profit attributable to owners of parent
Profit attributable to owners of parent notapplicable to common shareholders
Profit attributable to owners of parent
used in the calculation

Thousands of shares
2016
2015
Weighted-average number of shares of common stock used in
the calculation

76,08976,097

Net assets per share are based on the number of shares of common stock outstanding at theyear end.
Profit attributable to owners of parent per share is computed based on the profit
attributable to shareholders of common stock and the weighted-average number of sharesof common stock outstanding during the year. Diluted amounts per share have not beenpresented for the years ended March 31, 2016 and 2015 since neither the Company nor
any of the consolidated subsidiaries had any potentially dilutive shares at March 31, 2016
and 2015.
Cash dividends per share represent the cash dividends proposed by the Board of Directors
as applicable to the respective years.

32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 is calculated on the basis of operating income. Intersegment sales arerecorded based on current market prices.
Millions of yen
2016
Reporting Segments
Building
Civil
Construction Engineering
Net sales and income:Sales to third parties
Intersegment sales
Net sales
Segment income¥ 126,072–
126,072¥ 9,738¥ 19,591–
19,591¥ 2,408

Total

Others

Sub total

Adjustments

Total¥ 145,663–
145,663¥ 12,146¥ 1,319
7
1,326
¥ 127

¥ 146,982
7
146,989¥ 12,273

¥

–
(7)
(7)
¥ (5,819)¥146,982–
146,982¥ 6,454

Total

Millions of yen
2015
Reporting Segments
Building
Civil
Construction Engineering
Net sales and income:Sales to third parties
Intersegment sales
Net sales
Segment income¥ 103,638–
103,638¥ 5,567¥ 21,843–
21,843¥ 2,161

Total

Others

Sub total

Adjustments¥ 125,481–
125,481¥ 7,728¥ 1,356
7
1,363
¥ 96

¥ 126,837
7
126,844¥ 7,824

¥

–
(7)
(7)
¥ (5,216)

33¥ 126,837–
126,837¥ 2,608

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

21. Segment Information (continued)a.

Segment Information (continued)(2) Method of calculating sales and income in reporting segments (continued)
Thousands of U.S. dollars
2016
Reporting Segments

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

Building
Construction

Civil
Engineering

Total

Others

Sub total

Adjustments$ 1,118,850–$ 173,864–$1,292,714–$ 11,705
63$ 1,304,419
63

$

–
(63)

$1,304,419–$ 1,118,850$ 173,864$1,292,714$ 11,768$ 1,304,482

$

(63)

$1,304,419$$ 21,370$ 107,792$ 1,127$$ (51,642)

86,422

108,919“Others” is a business segment which is not included in the reporting segments, andincluded in this segment are real estate and other businesses are included in “Others.”
Adjustments for segment income in the amounts of ¥5,819 million ($51,642 thousand) and¥5,216 million for the years ended March 31, 2016 and 2015 include eliminations ofintersegment transactions of ¥1 million ($9 thousand) and ¥2 million and corporate
expenses of ¥5,818 million ($51,633 thousand) and ¥5,214 million recorded as selling,
general and administrative expenses not attributable to any reportable segments,
respectively.
The total amount of segment income is adjusted to operating income on the consolidated
statement of income.
Assets, liabilities and others are not allocated to business segments.
b.

Related information(1) Information by products and services
Disclosure of information by products and services for the years ended March 31,
2016 and 2015 has been omitted as the Company classifies such information in thesame way as it does its reporting segments.
(2) Information by geographical segment
Disclosure of sales and property and equipment by geographical area for the years
ended and as of March 31, 2016 and 2015 has been omitted as sales to domestic
customers were in excess of 90% of consolidated net sales, and the balance ofproperty and equipment in Japan was in excess of 90% of consolidated property andequipment.
34

Total

$

57,277

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

21. Segment Information (continued)b.

Related information (continued)(3) Information by major customers
Disclosure of information by major customers for years ended March 31, 2016 and2015 has been omitted as sales to each customer were less than 10% of consolidated
net sales.
22. Subsequent EventAppropriation of retained earnings
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, 2016, was approved at the annual general meeting of the shareholders of the Company
held on June 28, 2016.

Cash dividends of ¥5.00 ($0.04) per share

Millions of yen¥ 380

Thousands of
U.S. dollars$ 3,37235