Nintendo 2011 Annual Report Download

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ANNUAL REPORT 2011

Table of contents

  • Page 1
    ANNUAL REPORT 2011

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    TM and ® are trademarks of Nintendo. Trademarks registered in Japan or other countries. © 2011 Nintendo.

  • Page 11
    ...unique features of Nintendo 3DS and strive for this device to reach a greater number of people. We plan to release Wii U , the successor of Wii , in 2012, which has a new controller with a 6.2 inch touch screen. With this new controller, we propose a new structure for home entertainment, which takes...

  • Page 12
    Life-to-date sales units of Wii system 86.01 million units* *As of March 31, 2011

  • Page 13
    ...©2 0 0 7 N i n te n do. © 2 0 0 7 H U DS O N S O F T. © 2 0 1 0 Ni n t e n d o . ©2006 Nintendo. Life-to-date sales units of Wii software 716.09 The numbers shown above are consolidated sales in units life-to-date. Titles and package images shown above are for the U.S. market. million units

  • Page 14
    Life-to-date sales units of Nintendo DS family of systems 146.42 million units* Nintendo DS Lite Nintendo DS Nintendo DSi Nintendo DSi XL *As of March 31, 2011

  • Page 15
    Worldwide Consolidated Top Selling Titles - Nintendo DS As of March 31, 2011 26.88 million pcs. 23.64 million ...Life-to-date sales units of Nintendo DS software 839.48 The numbers shown above are consolidated sales in units life-to-date. Titles and package images shown above are for the U.S. market...

  • Page 16
    ... cards printed with Walt Disney characters, opening a new market for children's playing cards in Japan. 1 9 62 Listed stock on the second section of the Osaka Securities Exchange and on the Kyoto Stock Exchange. 1 9 63 Changed company name to the current Nintendo Co., Ltd. Started manufacturing...

  • Page 17
    ... provide Nintendo entertainment to airline passengers and hotel guests in the U.S. Built Uji-Okubo plant in Kyoto, Japan. 1994 Released the Super Game Boy, a peripheral for the Super NES, which enables Game Boy software to be played on TV screen. Released Donkey Kong Country for Super NES that uses...

  • Page 18
    ... Boy Advance SP, equipped with front-lit screen, rechargeable Lithium-Ion battery, and compact folding design. Began Nintendo's online membership service, Club Nintendo, in Japan. 20 04 Nintendo DS, the hand-held gaming device that opens up a new style of entertainment with its dual screens, touch...

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  • Page 20
    ... / Stock Price Information Analysis of Operations and Financial Review Report of Independent Auditor Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Comprehensive Income Consolidated Statements of Changes in Net Assets Consolidated Statements of Cash Flows...

  • Page 21
    ... The preceding table sets forth the highest and lowest sale prices during the years ended March 31, 2011 and 2010 for Nintendo Co., Ltd. common stock, as reported on the Osaka Securities Exchange, Section 1. Nintendo Co., Ltd. common stock is also traded on the Tokyo Stock Exchange, Section 1. 17

  • Page 22
    ...age, gender, or gaming experience. During the fiscal year ended March 2011, to commemorate the 25th anniversary of Nintendo's major title Super Mario Bros., special edition red versions of Nintendo DSi XL and Wii hardware were launched worldwide along with Wii software Super Mario All-Stars Limited...

  • Page 23
    ... to excess inventory. Obsolete inventory could have an adverse effect on Nintendo's operations and financial position. •Overseas business expansion and international activities In addition to Japan, Nintendo engages in business in the Americas, Europe, Australia, Asia and other areas in the world...

  • Page 24
    Analysis of Operations and Financial Review (3) Risks around legal regulations and litigation •Product liability Nintendo manufactures its products based on quality control standards required in each location throughout the world. However, large-scale product recalls may occur due mainly to ...

  • Page 25
    ... statements. Kyoto Audit Corporation Kyoto, Japan June 29, 2011 Report of Independent Auditor To the Board of Directors and Shareholders of Nintendo Co., Ltd. We have audited the accompanying consolidated balance sheet of Nintendo Co., Ltd. and its subsidiaries (the "Company") as of March 31, 2010...

  • Page 26
    Consolidated Balance Sheets Japanese Yen in Millions ¥ $ U.S. Dollars in Thousands (Note 1) As of March 31, 2011 2010 2011 Assets Current assets Cash and deposits Notes and accounts receivable-trade Short-term investment securities Finished goods Work in process Raw materials and supplies ...

  • Page 27
    ... Dollars in Thousands (Note 1) As of March 31, 2011 2010 2011 Liabilities Current liabilities Notes and accounts payable-trade Income taxes payable Provision for bonuses Other Total current liabilities Noncurrent liabilities Provision for retirement benefits Other Total noncurrent liabilities...

  • Page 28
    ...2010 2011 Net sales Cost of sales (Notes 7 A, C) Gross profit Selling, general and administrative expenses (Notes 7 B,C) Operating income Non-operating income Interest income Other Total non-operating income Non-operating expenses Sales discounts Loss on redemption of securities Foreign exchange...

  • Page 29
    Consolidated Statements of Comprehensive Income Japanese Yen in Millions ¥ $ U.S. Dollars in Thousands (Note 1) Years ended March 31, 2011 2010 2011 Income before minority interests Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation...

  • Page 30
    ..., 2011 and 2010 Capital stock Capital surplus Retained earnings Treasury stock Total Valuation difference Foreign currency Total other shareholders' on available-for-sale translation accumulated equity securities adjustment comprehensive income Minority interests Total net assets Balance as...

  • Page 31
    ...by (used in) operating activities Net cash provided by (used in) investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of short-term investment securities Proceeds from sales and redemption of securities Purchase of property, plant and equipment Proceeds...

  • Page 32
    ... Financial Instruments and Exchange Act of Japan, each amount of the accompanying consolidated financial statements is rounded down to the nearest one million yen (In the case of translation into U.S. dollars, it is rounded down to the nearest one thousand dollars). Consequently, the totals shown...

  • Page 33
    ... balance sheet by the write-down of inventories due to decreased profitability of assets. D. Property, Plant and Equipment The Company and its domestic consolidated subsidiaries compute depreciation by the declining balance method over the estimated useful lives except for certain tools, furniture...

  • Page 34
    ...nancial statements of overseas subsidiaries, the balance sheet accounts are translated into Japanese yen at the exchange rate of the closing date except for shareholders' equity, which are translated at the historical rates. Revenue and expense accounts are translated into Japanese yen at the annual...

  • Page 35
    ... 6. Note to Consolidated Balance Sheets A. Accumulated Depreciation of Property, Plant and Equipment Accumulated depreciation of property, plant and equipment were ¥51,577 million ($621,409 thousand) and ¥51,637 million as of March 31, 2011 and 2010, respectively. B. Investments in Unconsolidated...

  • Page 36
    ...to Consolidated Financial Statements Years ended March 31, 2011 and 2010 Note 7. Note to Consolidated Statements of Income A. Valuation Losses on Goods Losses incurred from the application of the write-down of inventories due to decreased profitability of assets and charged to "Cost of sales" were...

  • Page 37
    ... 1, 2009 Type of share Amount of dividends (U.S. Dollars in Thousands) Dividend per share (U.S. Dollars) Record date Effective date Annual general shareholders' meeting held on June 29, 2010 Board of directors' meeting held on October 28, 2010 Common stock Common stock $1,016,894 $215...

  • Page 38
    ... Statements of Cash Flows "Cash and cash equivalents at end of year" were reconciled to "Cash and deposits" in the accompanying consolidated balance sheets as of March 31, 2011 and 2010 as follows: Japanese Yen in Millions ¥ $ U.S. Dollars in Thousands As of March 31, 2011 2010 2011 Cash...

  • Page 39
    ...-trade are exposed to credit risk of customers. In order to reduce the risk, the Company and its consolidated subsidiaries monitor the credit status and transaction history, assess creditworthiness and set credit limit for each customer. Since short-term investment securities and investment...

  • Page 40
    ...74,563 thousand and Â¥6,128 million in the consolidated balance sheet for the years ended March 31, 2011 and 2010, respectively) which do not have market prices and of which future cash ï¬,ows cannot be estimated are not included in "short-term investment securities and investment securities," since...

  • Page 41
    ... Redemption schedule for monetary assets and securities with maturity subsequent to the consolidated balance sheets date as of March 31, 2011 and 2010 were as follows: Japanese Yen in Millions Due within one year Due after one year through five years ¥ $ U.S. Dollars in Thousands Due after one...

  • Page 42
    ... 31, 2011 and 2010 were as follows: Japanese Yen in Millions ¥ $ U.S. Dollars in Thousands Difference Book value Fair value Difference As of March, 2011 Book value Fair value Securities whose fair value exceed their book value on the accompanying consolidated balance sheets Securities whose...

  • Page 43
    ...Â¥ $ U.S. Dollars in Thousands Difference Book value Acquisition cost Difference As of March, 2011 Book value Acquisition cost Securities whose book value on the accompanying consolidated balance sheets exceed their acquisition cost Equity securities Sub-total Securities whose book value on the...

  • Page 44
    Notes to Consolidated Financial Statements Years ended March 31, 2011 and 2010 Note 14. Derivatives Derivative contracts not subject to hedge accounting as of March 31, 2011 were as follows: Japanese Yen in Millions ¥ $ U.S. Dollars in Thousands Unrealized gain (loss) Contract amount Fair value...

  • Page 45
    ... in Millions ¥ $ U.S. Dollars in Thousands As of March 31, 2011 2010 2011 a . Retirement benefit obligation b . Plan assets c . Unfunded retirement benefit obligation d . Net pension liability recognized in the accompaying consolidated balance sheets e . Provision for retirement benefits...

  • Page 46
    ... 31, 2011 2010 2011 Deferred tax assets: Research and development expenses Inventory - write-downs and elimination of unrealized profit Revenue recognition for tax purposes Other accounts payable and accrued expenses Provision for retirement benefits Loss on valuation of investment securities...

  • Page 47
    ...A. Segment Information The main business of Nintendo (Nintendo Co., Ltd. (the "Company") and its consolidated subsidiaries) is developing, manufacturing, and distributing handheld and home console hardware machines and related software. Development and manufacturing of products for worldwide use are...

  • Page 48
    Notes to Consolidated Financial Statements Years ended March 31, 2011 and 2010 C. Information about geographic areas Japanese Yen in Millions ¥ Year ended March 31, 2011 Japan The United States Other Total Sales Property, plant and equipment ¥167,893 ¥54,483 ¥398,352 ¥22,689 ¥448,...

  • Page 49
    ...Companies Japanese Yen in Millions ¥ Year ended March 31, 2010 Japan The Americas Europe Other Total Eliminations or corporate Consolidated Net sales and operating income Net sales Sales to third parties Inter-segment sales Total net sales Operating expenses Operating income Total assets...

  • Page 50
    Notes to Consolidated Financial Statements Years ended March 31, 2011 and 2010 Note 20. Related Party Transactions Not applicable. Note 21. Per Share Information Japanese Yen ¥ $ U.S. Dollars Years ended March 31, 2011 2010 2011 Net assets per share Net income per share ¥10,022.26 ¥606...

  • Page 51
    ...years As of March 31, 2011 Lease obligations ¥53 ¥40 $649 $483 Note 25. Supplemental Schedule of Asset Retirement Obligations The amounts of asset retirement obligations for March 31, 2011 and 2010 were less than or equal to a hundredth of the sum of liabilities and net assets for each year...

  • Page 52
    ... Financial Statements Years ended March 31, 2011 and 2010 Note 26. Others Quarterly information of the consolidated fiscal year ended March 31, 2011 was as follows: Japanese Yen in Millions ¥ Year ended March 31, 2011 First quarter Second quarter Third quarter Fourth quarter Net sales...

  • Page 53
    ..., 2011 at Nintendo Co., Ltd., Kyoto, Japan. Affiliated company with equity method non-applied Domestic: Ape inc. Independent Auditor Kyoto Audit Corporation Kyoto, Japan Contact Information Investors Relations Nintendo Co., Ltd. General Accounting and Control Department Investors Relations Group...

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    Coming in 2012

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