Document and Entity Information
Document and Entity Information | ||
12 Months Ended
Mar. 31, 2010 JPY (¥) | Mar. 31, 2010
JPY (¥) | |
Document Type | 20-F | |
Amendment Flag | false | |
Document Period End Date | 2010-03-31 | |
Document Fiscal Year Focus | 2,010 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | PC | |
Entity Registrant Name | PANASONIC Corp | |
Entity Central Index Key | 0000063271 | |
Current Fiscal Year End Date | --03-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 2,070,605,489 |
Consolidated Balance Sheets
Consolidated Balance Sheets (JPY ¥) | ||
In Millions | 12 Months Ended
Mar. 31, 2010 | 12 Months Ended
Mar. 31, 2009 |
Current assets: | ||
Cash and cash equivalents (Note 9) | 1109912 | 973867 |
Time deposits (Note 9) | 92,032 | 189,288 |
Short-term investments (Notes 5 and 18) | 1,998 | |
Trade receivables (Note 16): | ||
Related companies (Note 4) | 37,940 | 16,178 |
Notes | 74,028 | 42,582 |
Accounts (Note 17) | 1,097,230 | 727,504 |
Allowance for doubtful receivables | (24,158) | (21,131) |
Net trade receivables | 1,185,040 | 765,133 |
Inventories (Note 3) | 913,646 | 771,137 |
Other current assets (Notes 11, 17 and 18) | 505,418 | 493,271 |
Total current assets | 3,806,048 | 3,194,694 |
Investments and advances: | ||
Associated companies (Notes 4 and 18) | 177,128 | 123,959 |
Other investments and advances (Notes 5, 9 and 18) | 459,634 | 427,792 |
Total investments and advances | 636,762 | 551,751 |
Property, plant and equipment (Notes 6, 7, 9 and 18): | ||
Land | 391,394 | 298,346 |
Buildings | 1,767,674 | 1,532,359 |
Machinery and equipment | 2,303,633 | 2,229,123 |
Construction in progress | 128,826 | 213,617 |
Property, Plant and Equipment, Gross, Total | 4,591,527 | 4,273,445 |
Less accumulated depreciation | 2,635,506 | 2,698,615 |
Net property, plant and equipment | 1,956,021 | 1,574,830 |
Other assets: | ||
Goodwill (Notes 8 and 18) | 923,001 | 410,792 |
Intangible assets (Notes 7, 8 and 18) | 604,865 | 120,712 |
Other assets (Notes 10 and 11) | 431,360 | 550,537 |
Total other assets | 1,959,226 | 1,082,041 |
Assets, Total | 8,358,057 | 6,403,316 |
Current liabilities: | ||
Short-term debt, including current portion of long-term debt (Notes 6, 9 and 18) | 299,064 | 94,355 |
Trade payables: | ||
Related companies (Note 4) | 66,596 | 58,315 |
Notes | 59,516 | 38,196 |
Accounts (Note 17) | 945,334 | 582,857 |
Total trade payables | 1,071,446 | 679,368 |
Accrued income taxes (Note 11) | 39,154 | 26,139 |
Accrued payroll | 149,218 | 115,845 |
Other accrued expenses (Note 19) | 826,051 | 672,836 |
Deposits and advances from customers | 64,046 | 60,935 |
Employees' deposits | 10,009 | 269 |
Other current liabilities (Notes 10, 11, 17 and 18) | 356,875 | 350,681 |
Total current liabilities | 2,815,863 | 2,000,428 |
Noncurrent liabilities: | ||
Long-term debt (Notes 6, 9 and 18) | 1,028,928 | 651,310 |
Retirement and severance benefits (Note 10) | 435,799 | 404,367 |
Other liabilities (Note 11) | 397,694 | 134,630 |
Total noncurrent liabilities | 1,862,421 | 1,190,307 |
Panasonic Corporation shareholders' equity: | ||
Common stock (Note 12): Authorized - 4,950,000,000 shares Issued - 2,453,053,497 shares (2,453,053,497 shares in 2009) | 258,740 | 258,740 |
Capital surplus (Note 12) | 1,209,516 | 1,217,764 |
Legal reserve (Note 12) | 93,307 | 92,726 |
Retained earnings (Note 12) | 2,349,487 | 2,479,416 |
Accumulated other comprehensive income (loss) (Notes 5, 10, 13 and 17): | ||
Cumulative translation adjustments | (352,649) | (341,592) |
Unrealized holding gains (losses) of available-for-sale securities | 40,700 | (10,563) |
Unrealized gains (losses) of derivative instruments | 1,272 | (4,889) |
Pension liability adjustments | (137,555) | (237,333) |
Total accumulated other comprehensive loss | (448,232) | (594,377) |
Treasury stock, at cost (Note 12): 382,448,008 shares (382,411,876 shares in 2009) | (670,330) | (670,289) |
Total Panasonic Corporation shareholders' equity | 2,792,488 | 2,783,980 |
Noncontrolling interests | 887,285 | 428,601 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Total | 3,679,773 | 3,212,581 |
Commitments and contingent liabilities (Notes 6 and 19) | ||
Liabilities and Stockholders' Equity, Total | 8358057 | 6403316 |
1_Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical) | ||
Mar. 31, 2010
JPY (¥) | Mar. 31, 2009
JPY (¥) | |
Common stock, Authorized | 4,950,000,000 | 4,950,000,000 |
Common stock, Issued | 2,453,053,497 | 2,453,053,497 |
Treasury stock , Shares | 382,448,008 | 382,411,876 |
Consolidated Statements of Oper
Consolidated Statements of Operations (JPY ¥) | |||
In Millions, except Per Share data | 12 Months Ended
Mar. 31, 2010 | 12 Months Ended
Mar. 31, 2009 | 12 Months Ended
Mar. 31, 2008 |
Net sales: | |||
Related companies (Note 4) | 209938 | 223231 | 371216 |
Other | 7,208,042 | 7,542,276 | 8,697,712 |
Total net sales | 7,417,980 | 7,765,507 | 9,068,928 |
Cost of sales (Notes 4, 16 and 17) | (5,341,059) | (5,667,287) | (6,377,240) |
Selling, general and administrative expenses (Note 16) | (1,886,468) | (2,025,347) | (2,172,207) |
Interest income | 12,348 | 23,477 | 34,371 |
Dividends received | 6,746 | 11,486 | 10,317 |
Other income (Notes 5, 6 and 17) | 47,896 | 52,709 | 70,460 |
Interest expense | (25,718) | (19,386) | (20,357) |
Other deductions (Notes 2, 4, 5, 7, 8, 15, 16, 17 and 18) | (261,040) | (523,793) | (179,279) |
Income (loss) before income taxes | (29,315) | (382,634) | 434,993 |
Provision for income taxes (Note 11): | |||
Current | 58,147 | 61,840 | 128,181 |
Deferred | 83,686 | (24,482) | (13,608) |
Income Tax Expense (Benefit), Total | 141,833 | 37,358 | 114,573 |
Equity in earnings (losses) of associated companies (Note 4) | 481 | 16,149 | (9,906) |
Net income (loss) | (170,667) | (403,843) | 310,514 |
Less net income (loss) attributable to noncontrolling interests | (67,202) | (24,882) | 28,637 |
Net income (loss) attributable to Panasonic Corporation | -103465 | -378961 | 281877 |
Net income (loss) per share attributable to Panasonic Corporation common shareholders (Note 14): | |||
Basic | -49.97 | -1.8 | 1.3 |
Diluted | -1.8 | 1.3 |
Consolidated Statements of Equi
Consolidated Statements of Equity (JPY ¥) | |||||||||
In Millions | Common Stock
| Additional Paid-in Capital
| Legal Reserve
| Retained Earnings
| Accumulated Other Comprehensive Income
| Treasury Stock
| Noncontrolling Interest
| Comprehensive Income
| Total
|
Balance at beginning of year at Mar. 31, 2007 | 258740 | 1220967 | 88588 | 2737024 | 107097 | -495675 | 551154 | ||
Net income (loss) | 310,514 | 310,514 | |||||||
Repurchase of common stock | (103,112) | ||||||||
Balance at beginning of year as adjusted | 2,737,024 | 107,097 | 551,154 | ||||||
Sale of treasury stock | 59 | 214 | |||||||
Cash dividends paid to noncontrolling interests | (19,807) | ||||||||
Net income (loss) attributable to Panasonic Corporation | 281,877 | 281,877 | |||||||
Other comprehensive income (loss), net of tax | (280,994) | ||||||||
Decrease from issuance of new shares by a subsidiary | (3,161) | ||||||||
Acquisition transaction | 29,248 | ||||||||
Cash dividends to Panasonic Corporation stockholders | (69,295) | ||||||||
Issuance of shares by subsidiaries | 40,000 | ||||||||
Transfer from retained earnings | 1,541 | (1,541) | |||||||
Change in consolidated subsidiaries | (90,470) | ||||||||
Equity transactions with noncontrolling interests and others | (3,520) | ||||||||
Net income (loss) attributable to noncontrolling interests | 28,637 | (28,637) | |||||||
Other comprehensive income (loss), net of tax: | |||||||||
Translation adjustments | (8,260) | (137,514) | |||||||
Unrealized holding gains (losses) of available-for-sale securities | (3,806) | (119,195) | |||||||
Unrealized gains (losses) of derivative instruments | 332 | 3,796 | |||||||
Pension liability adjustments | (8,888) | (48,703) | |||||||
Comprehensive income (loss) | 8,898 | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 8,015 | ||||||||
Comprehensive income (loss) attributable to Panasonic Corporation | 883 | ||||||||
Balance at end of year at Mar. 31, 2008 | 258,740 | 1,217,865 | 90,129 | 2,948,065 | (173,897) | (598,573) | 514,620 | ||
Net income (loss) | (403,843) | (403,843) | |||||||
Effects of changing the pension plan measurement date, net of tax (Note 10) | (3,727) | (73,571) | (3) | ||||||
Repurchase of common stock | (72,416) | ||||||||
Balance at beginning of year as adjusted | 2,944,338 | (247,468) | 514,617 | ||||||
Sale of treasury stock | (101) | 700 | |||||||
Cash dividends paid to noncontrolling interests | (20,803) | ||||||||
Net income (loss) attributable to Panasonic Corporation | (378,961) | (378,961) | |||||||
Other comprehensive income (loss), net of tax | (346,909) | ||||||||
Cash dividends to Panasonic Corporation stockholders | (83,364) | ||||||||
Transfer from retained earnings | 2,597 | (2,597) | |||||||
Equity transactions with noncontrolling interests and others | (1,422) | ||||||||
Net income (loss) attributable to noncontrolling interests | (24,882) | 24,882 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||
Translation adjustments | (18,043) | (130,843) | |||||||
Unrealized holding gains (losses) of available-for-sale securities | (1,619) | (57,624) | |||||||
Unrealized gains (losses) of derivative instruments | (12) | (9,227) | |||||||
Pension liability adjustments | (19,235) | (188,124) | |||||||
Comprehensive income (loss) | (789,661) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests | (63,791) | ||||||||
Comprehensive income (loss) attributable to Panasonic Corporation | (725,870) | ||||||||
Balance at end of year at Mar. 31, 2009 | 258,740 | 1,217,764 | 92,726 | 2,479,416 | (594,377) | (670,289) | 428,601 | 3,212,581 | |
Net income (loss) | (170,667) | (170,667) | |||||||
Repurchase of common stock | (72) | ||||||||
Balance at beginning of year as adjusted | 2,479,416 | (594,377) | 428,601 | ||||||
Sale of treasury stock | (8) | 31 | |||||||
Cash dividends paid to noncontrolling interests | (14,619) | ||||||||
Net income (loss) attributable to Panasonic Corporation | (103,465) | (103,465) | |||||||
Other comprehensive income (loss), net of tax | 146,145 | ||||||||
Acquisition transaction | 532,360 | ||||||||
Cash dividends to Panasonic Corporation stockholders | (25,883) | ||||||||
Transfer from retained earnings | 581 | (581) | |||||||
Equity transactions with noncontrolling interests and others | (8,240) | (2,402) | |||||||
Net income (loss) attributable to noncontrolling interests | (67,202) | 67,202 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||
Translation adjustments | 1,238 | (9,819) | |||||||
Unrealized holding gains (losses) of available-for-sale securities | 2,378 | 53,641 | |||||||
Unrealized gains (losses) of derivative instruments | 68 | 6,229 | |||||||
Pension liability adjustments | 6,863 | 106,641 | |||||||
Comprehensive income (loss) | (13,975) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests | (56,655) | ||||||||
Comprehensive income (loss) attributable to Panasonic Corporation | 42,680 | ||||||||
Balance at end of year at Mar. 31, 2010 | 258740 | 1209516 | 93307 | 2349487 | -448232 | -670330 | 887285 | 3679773 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (JPY ¥) | |||
In Millions | 12 Months Ended
Mar. 31, 2010 | 12 Months Ended
Mar. 31, 2009 | 12 Months Ended
Mar. 31, 2008 |
Cash flows from operating activities (Note 16): | |||
Net income (loss) | -170667 | -403843 | 310514 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 298,270 | 364,806 | 320,534 |
Net gain on sale of investments | (5,137) | (13,512) | (14,402) |
Provision for doubtful receivables | 10,862 | 10,538 | 6,008 |
Deferred income taxes | 83,686 | (24,482) | (13,608) |
Write-down of investment securities (Notes 4, 5 and 18) | 6,944 | 92,016 | 31,842 |
Impairment loss on long-lived assets (Notes 7 and 8) | 83,004 | 313,466 | 44,627 |
Cash effects of changes in, excluding acquisition: | |||
Trade receivables | (119,966) | 249,123 | (56,677) |
Inventories | 100,576 | 21,011 | (37,372) |
Other current assets | 24,151 | 30,279 | 39,602 |
Trade payables | 83,719 | (199,176) | (41,568) |
Accrued income taxes | 6,706 | (33,358) | 5,765 |
Accrued expenses and other current liabilities | 102,743 | (157,660) | 9,973 |
Retirement and severance benefits | (8,655) | (107,196) | (128,937) |
Deposits and advances from customers | (7,368) | (21,191) | (15,915) |
Other | 33,465 | (4,174) | 5,672 |
Net cash provided by operating activities | 522,333 | 116,647 | 466,058 |
Cash flows from investing activities (Note 16): | |||
Proceeds from sale of short-term investments | 6,442 | 697 | |
Purchase of short-term investments | (6,369) | ||
Proceeds from disposition of investments and advances | 61,302 | 221,127 | 313,947 |
Increase in investments and advances | (8,855) | (34,749) | (160,423) |
Capital expenditures | (375,648) | (521,580) | (418,730) |
Proceeds from disposals of property, plant and equipment | 117,857 | 40,476 | 151,279 |
(Increase) decrease in time deposits | 99,274 | (136,248) | 166,750 |
Purchase of shares of newly consolidated subsidiaries, net of acquired companies' cash and cash equivalents (Note 2) | (174,808) | (68,309) | |
Other | (42,854) | (38,503) | (46,582) |
Net cash used in investing activities | (323,659) | (469,477) | (61,371) |
Cash flows from financing activities (Note 16): | |||
Increase (decrease) in short-term debt | (3,360) | (34,476) | (5,815) |
Proceeds from long-term debt | 53,172 | 442,515 | 1,344 |
Repayments of long-term debt | (54,780) | (83,257) | (46,750) |
Dividends paid to Panasonic Corporation shareholders (Note 12) | (25,883) | (83,364) | (69,295) |
Dividends paid to noncontrolling interests | (14,619) | (20,803) | (19,807) |
Repurchase of common stock (Note 12) | (72) | (72,416) | (103,112) |
Sale of treasury stock (Note 12) | 23 | 599 | 273 |
Purchase of noncontrolling interests | (11,095) | ||
Proceeds from issuance of shares by subsidiaries | 39,866 | ||
Other | (359) | (86) | (252) |
Net cash provided by (used in) financing activities | (56,973) | 148,712 | (203,548) |
Effect of exchange rate changes on cash and cash equivalents | (5,656) | (36,831) | (129,521) |
Effect of changes in consolidated subsidiaries (Note 16) | (93,441) | ||
Net increase (decrease) in cash and cash equivalents | 136,045 | (240,949) | (21,823) |
Cash and cash equivalents at beginning of year | 973,867 | 1,214,816 | 1,236,639 |
Cash and cash equivalents at end of year | 1109912 | 973867 | 1214816 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies (a) Description of Business Panasonic Corporation (hereinafter, the Company, including consolidated subsidiaries, unless the context otherwise requires) is one of the worlds leading producers of electronic and electric products. The Company currently offers a comprehensive range of products, systems and components for consumer, business and industrial use based on sophisticated electronics and precision technology, expanding to building materials and equipment, and housing business. Sales by product category in fiscal 2010 were as follows: Digital AVC Networks43%, Home Appliances15%, PEW and PanaHome*20%, Components and Devices11%, SANYO*5%, and Other6%. A sales breakdown in fiscal 2010 by geographical market was as follows: Japan54%, North and South America12%, Europe11%, and Asia and Others23%. The Company is not dependent on a single supplier, and has no significant difficulty in obtaining raw materials from suppliers. * PEW stands for Panasonic Electric Works Co., Ltd. and PanaHome stands for PanaHome Corporation. SANYO stands for SANYO Electric Co., Ltd. (b) Basis of Presentation of Consolidated Financial Statements The Company and its domestic subsidiaries maintain their books of account in conformity with financial accounting standards of Japan, and its foreign subsidiaries in conformity with those of the countries of their domicile. The consolidated financial statements presented herein have been prepared in a manner and reflect adjustments which are necessary to conform with U.S. generally accepted accounting principles. (c) Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned, controlled subsidiaries. The Company also consolidates entities in which controlling interest exists through variable interests in accordance with the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810, Consolidation. Investments in companies and joint ventures over which the Company has the ability to exercise significant influence (generally through a voting interest of between 20% to 50%) are included in Investments and advancesAssociated companies in the consolidated balance sheets. All significant intercompany balances and transactions have been eliminated in consolidation. (d) Revenue Recognition The Company generates revenue principally through the sale of consumer and industrial products, equipment, and supplies. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, and title and risk of loss have been transferred to the customer or services have been rendered, the sales price is fixed or determinable, and collectibility is reasonably assured. Revenue from sales of products is generally recognized when the products are received by customers. Revenue from sales of certain products with customer acceptance provisions related to their functionality is recognized when the product is received by the customer and the specific criteria of the product functionality are succe |
Acquisition
Acquisition | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Acquisition | (2) Acquisition On December16, 2009, the Company acquired all preferred shares of SANYO Electric Co., Ltd. (SANYO) through a tender offer. On December21, 2009, the Company subsequently converted the preferred shares to common shares, resulting in an acquisition of 50.2% of the voting rights and a controlling interest of SANYO. SANYO is in the business of manufacturing and sales of solar cells, rechargeable batteries, electronic devices, commercial equipment, audio-visual equipment, home appliances, and other electronic and electric products. As a result of this acquisition, a collaborating relationship between the Company and SANYO is established under the large business strategy as an united business group to generate synergy, such as the further expansion in the solar business, reinforcement of competitiveness in the rechargeable battery business, strengthening of the financial and business position of SANYO through the application of the Companys cost reduction know-how, and creation of a comprehensive solution business centered on the environment and energy. The fair value of noncontrolling interests was measured based on the market price per share of SANYO as of the acquisition date. The fair value of the consideration paid for the controlling interests of SANYO and the noncontrolling interests as of the acquisition date is as follows: Yen(millions) Fair value of consideration: Cash 403,780 Fair value of noncontrolling interests 532,360 Total 936,140 Acquisition-related cost of 5,058million yen was included in other deductions in the consolidated statements of operations for the year ended March31, 2010. Assets acquired and liabilities assumed reflected in the Companys consolidated balance sheet as of the acquisition date were as follows: Yen(millions) Cash and cash equivalents 228,972 Other current assets 653,709 Investments and advances 105,643 Property, plant and equipment 404,468 Goodwill 514,419 Intangible assets 494,103 Other assets 48,596 Total assets acquired 2,449,910 Current liabilities 606,639 Noncurrent liabilities 907,131 Total liabilities assumed 1,513,770 Total net assets acquired 936,140 Trade notes receivable, trade accounts receivable and other short-term receivables recorded at the fair value were included in other current assets in the table above, and the fair value was measured by deducting allowance for doubtful receivables of 73million yen, 5,319million yen and 964million yen from their contractual amounts of 26,001million yen, 314,175million yen, 23,941million yen, respectively. Long-term receivables recorded at the fair value were included in investments and advances, and the fair value was measured by deducting allowance for doubtful receivables of 2,730million yen from their contractual amounts of 10,999million yen. Intangible assets of 492,476million yen were subject to amortization, which include right of trademark of 45,451million yen with a 10-year weighted-average useful life, customer relationship of |
Inventories
Inventories | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Inventories | (3) Inventories Inventories at March31, 2010 and 2009 are summarized as follows: Yen (millions) 2010 2009 Finished goods 497,153 439,747 Work in process 159,699 129,949 Raw materials 256,794 201,441 913,646 771,137 |
Investments in and Advances to,
Investments in and Advances to, and Transactions with Associated Companies | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Investments in and Advances to, and Transactions with Associated Companies | (4) Investments in and Advances to, and Transactions with Associated Companies Certain financial information in respect of associated companies in aggregate at March31, 2010 and 2009, and for the three years ended March31, 2010 is shown below. The most significant of these associated companies as of March31, 2010 are JVC KENWOOD Holdings, Inc. (JVC KENWOOD HD) and Sumishin Matsushita Financial Services Co., Ltd. (SMFC). At March31, 2010, the Company has a 27.6% equity ownership in JVC KENWOOD HD and a 22.6% equity ownership in SMFC. The Company formerly consolidated Victor Company of Japan, Ltd. (JVC) and its subsidiaries. On August10, 2007, JVC issued and allocated new shares of its common stock to third parties. As a result, the Companys shareholding of JVC decreased from 52.4% to 36.8%, and JVC and its subsidiaries became associated companies under the equity method. On October1, 2008, JVC and Kenwood Corporation integrated management by establishing JVC KENWOOD HD through a share transfer. The Company has 27.6% shareholding of JVC KENWOOD HD. The Company formerly had a 34.0% equity ownership in SMFC. On November5, 2009, the Company sold certain equity interest to The Sumitomo Trust and Banking Co., Ltd. and as a result, the Company had a 22.6% equity ownership in SMFC. On April1, 2010, SMFC and STB Leasing Co., Ltd. merged its business to form Sumishin Panasonic Financial Services Co., Ltd. (SPFC). As a result, the Company has a 15.1% equity ownership in SPFC. The Company continues to apply the equity method subsequent to April1, 2010 as the Company continues to hold significant influence over operating and financial policies of SPFC. The Company formerly accounted for the investment in Toshiba Matsushita Display Technology Co., Ltd. (TMD) and its subsidiaries under the equity method. On April28, 2009, the Company sold all of its shares in TMD to Toshiba Corporation. Yen (millions) 2010 2009 Current assets 1,065,594 1,012,194 Other assets 488,755 526,722 1,554,349 1,538,916 Current liabilities 775,170 961,503 Other liabilities 370,949 292,788 Net assets 408,230 284,625 Companys equity in net assets 146,825 102,966 Yen (millions) 2010 2009 2008 Net sales 1,176,332 1,568,499 1,968,527 Gross profit 254,507 292,589 377,989 Net loss (10,572 ) (70,779 ) (52,915 ) Purchases and dividends received from associated companies for the three years ended March31, 2010 are as follows: Yen (millions) 2010 2009 2008 Purchases from 287,598 315,829 424,242 Dividends received 4,301 4,528 5,434 Retained earnings include undistributed earnings of associated companies in the amount of 33,489million yen and 36,594million yen, as of March31, 2010 and 2009, respectively. During the years ended March31, 2010, 2009 and 2008, the Company incurred a write-down of 3,605million yen, 18,121million yen and 23,668million yen, respectively, for other-than-temporary impairment of investments a |
Investments in Securities
Investments in Securities | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Investments in Securities | (5) Investments in Securities The Company classifies its existing marketable equity securities other than investments in associated companies and all debt securities as available-for-sale. The cost, fair value, gross unrealized holding gains and gross unrealized holding losses of available-for-sale securities included in short-term investments, and other investments and advances at March31, 2010 and 2009 are as follows: Yen (millions) 2010 Cost Fair value Gross unrealized holding gains Gross unrealized holding losses Noncurrent: Equity securities 275,579 379,358 104,666 887 Corporate and government bonds 3,894 3,961 75 8 Other debt securities 568 585 22 5 280,041 383,904 104,763 900 Yen (millions) 2009 Cost Fair value Gross unrealized holding gains Gross unrealized holding losses Current: Corporate and government bonds 1,972 1,998 26 1,972 1,998 26 Noncurrent: Equity securities 269,735 284,356 32,510 17,889 Corporate and government bonds 4,290 4,395 110 5 Other debt securities 5,492 5,515 23 279,517 294,266 32,643 17,894 The cost, fair value, gross unrealized holding gains and gross unrealized holding losses of held-to-maturity securities included in other investments and advances are 1,954million yen, 1,887million yen, 16million yen and 83million yen at March31, 2010, respectively. Maturities of investments in available-for-sale securities at March31, 2010 and 2009 are as follows: Yen (millions) 2010 2009 Cost Fair value Cost Fair value Due within one year 1,972 1,998 Due after one year through five years 4,462 4,546 9,782 9,910 Equity securities 275,579 379,358 269,735 284,356 280,041 383,904 281,489 296,264 Maturity of investments in held-to-maturity securities at March31, 2010 is due after 10 years. The cost and fair value of the related investments are 1,954million yen and 1,887million yen, respectively. Proceeds from sale of available-for-sale securities for the years ended March31, 2010, 2009 and 2008 were 18,275million yen, 73,782million yen and 106,466million yen, respectively. The gross realized gains on sale of available-for-sale securities for the years ended March31, 2010, 2009 and 2008 were 3,756million yen, 797million yen and 7,415million yen, respectively. The gross realized losses on sale of available-for-sale securities for the years ended March31, 2010, 2009 and 2008 were 88million yen, 11million yen and 148million yen, respectively. The cost of securities sold in computing gross realized gains and losses is determined by the average cost method. During the years ended March31, 2010, 2009 and 2008, the Company incurred a write-down of 2,965million yen, 73,861million yen and 8,002million yen, respectively, for other-than-temporary impairment |
Leases
Leases | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Leases | (6) Leases The Company has capital and operating leases for certain land, buildings, and machinery and equipment with SMFC and other third parties. During the years ended March31, 2010, 2009 and 2008, the Company sold and leased back certain land, buildings, and machinery and equipment for 95,316million yen, 16,582million yen and 109,311million yen, respectively. The base lease term is 1 to 10 years. The resulting leases are being accounted for as operating leases or capital leases. The resulting gains of these transactions, included in other income in the consolidated statements of operations, were not significant. Regarding certain leased assets, the Company has options to purchase the leased assets, or to terminate the leases and guarantee a specified value of the leased assets thereof, subject to certain conditions, during or at the end of the lease term. Regarding leased land and buildings, there are no future commitments, obligations, provisions, or circumstances that require or result in the Companys continuing involvement. At March31, 2010 and 2009, the gross book value of land, buildings, and machinery and equipment under capital leases, including the above-mentioned sale-leaseback transactions was 164,119million yen and 136,445million yen, and the related accumulated depreciation recorded was 59,698million yen and 65,001million yen, respectively. Rental expenses for operating leases, including the above-mentioned sale-leaseback transactions were 64,124million yen, 63,490million yen and 59,886million yen for the years ended March31, 2010, 2009 and 2008, respectively. Future minimum lease payments under non-cancelable capital leases and operating leases at March31, 2010 are as follows: Yen (millions) Year ending March 31 Capital leases Operating leases 2011 42,548 71,686 2012 30,215 42,942 2013 27,116 26,267 2014 12,229 20,074 2015 9,939 4,770 Thereafter 32,999 4,226 Total minimum lease payments 155,046 169,965 Less amount representing interest 10,276 Present value of net minimum lease payments 144,770 Less current portion 40,171 Long-term capital lease obligations 104,599 |
Long-Lived Assets
Long-Lived Assets | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Long-Lived Assets | (7) Long-Lived Assets The Company periodically reviews the recorded value of its long-lived assets to determine if the future cash flows to be derived from these assets or related asset group will be sufficient to recover the remaining recorded asset values. Impairment losses are included in other deductions in the consolidated statements of operations, and are not charged to segment profit. The Company recognized impairment losses in the aggregate of 79,259million yen of long-lived assets during fiscal 2010. The Company recorded impairment losses for certain machinery and finite-lived intangible assets related to domestic liquid crystal display panel manufacturing facilities. As a result of the continuously substantial decline of product prices, the Company estimated that the carrying amounts would not be recoverable through future cash flows. The fair value was based on the discounted estimated cash flows expected to result from the use and eventual disposition of the assets. The Company also recorded impairment losses for certain land, buildings, and machinery and equipment related to domestic battery manufacturing facilities. Due to the revamp of manufacturing capacity of lithium-ion battery business, certain factories experienced a downturn in profitability. In addition, the Company had to transfer a part of its nickel-hydrogen battery business in relation to the acquisition of SANYO. As a result, the carrying amounts of certain domestic battery manufacturing facilities would not be recoverable through future cash flows. The fair value of land was determined through an appraisal based on the comparable sales method. The fair value of buildings, and machinery and equipment was determined through an appraisal based on the repurchase cost. Impairment losses of 37,872million yen, 7,063million yen, 24,329million yen, 8,897million yen and 1,098million yen were related to Digital AVC Networks, Home Appliances, Components and Devices, SANYO and the remaining segments, respectively. The Company recognized impairment losses in the aggregate of 313,466million yen of long-lived assets during fiscal 2009. The Company recorded impairment losses for certain buildings, machinery and finite-lived intangible assets related to domestic liquid crystal display panel manufacturing facilities. As a result of the substantial decline of product prices due to the significant market downturn, the Company estimated that the carrying amounts would not be recoverable through future cash flows. The fair value of buildings and remaining assets, respectively, was determined through an appraisal based on the comparable sales method and the discounted estimated cash flows expected to result from the use and eventual disposition of the assets. The Company also recorded impairment losses for certain buildings, machinery and finite-lived intangible assets related to domestic and overseas plasma display panel manufacturing facilities. As a result of the substantial decline of product prices due to the significant market downturn, the Company estimated that the carrying amounts would not be recoverable through future cash flows. The fair |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Goodwill and Other Intangible Assets | (8) Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by business segment for the years ended March31, 2010 and 2009 are as follows: Yen (millions) Digital AVC Networks Home Appliances PEW and PanaHome Components and Devices SANYO Other Total BalanceatMarch31,2008: Goodwill 319,392 14,756 89,941 70,172 12,990 507,251 Accumulated impairment losses (77,349 ) (77,349 ) 242,043 14,756 89,941 70,172 12,990 429,902 Goodwill acquired during the year 702 262 30 994 Translation adjustments (10,583 ) (10,583 ) Other (3,780 ) (5,741 ) (9,521 ) Balance at March31, 2009: Goodwill 316,314 14,756 73,879 70,172 13,020 488,141 Accumulated impairment losses (77,349 ) (77,349 ) 238,965 14,756 73,879 70,172 13,020 410,792 Goodwill acquired during the year 514,419 514,419 Goodwill impaired during the year (3,745 ) (3,745 ) Translation adjustments 2,070 2,070 Other (535 ) (535 ) Balance at March31, 2010: Goodwill 316,314 14,756 75,949 69,637 514,419 13,020 1,004,095 Accumulated impairment losses (77,349 ) (3,745 ) (81,094 ) 238,965 14,756 75,949 65,892 514,419 13,020 923,001 Acquired intangible assets, excluding goodwill, at March31, 2010 and 2009 are as follows: Yen (millions) 2010 2009 Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Average amortization period Finite-lived intangible assets: Patents and know-how 439,608 54,684 60,317 41,063 10years Software 283,075 210,726 257,859 188,439 4 years Other 172,497 30,337 56,040 28,059 13 years 895,180 295,747 374,216 257,561 Yen (millions) 2010 2009 Indefinite-lived intangible assets 5,432 4,057 Aggregate amortization expense for finite-lived intangible assets for the years ended March31, 2010, 2009 and 2008 was 46,175million yen, 38,903million yen and 38,343million yen, respectively. Estimated amortization expense for the next five years is as follows: Year ending March 31 Yen(millions) 2011 83,551 2012 75,017 2013 66,696 2014 60,558 2015 53,794 The Company recognized impairment |
Long-term Debt and Short-term B
Long-term Debt and Short-term Borrowings | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Long-term Debt and Short-term Borrowings | (9) Long-term Debt and Short-term Borrowings Long-term debt at March31, 2010 and 2009 is set forth below: Yen (millions) 2010 2009 Unsecured Straight bond, due 2011, interest 1.64% 100,000 100,000 Unsecured Straight bond, due 2012, interest 1.14% 100,000 100,000 Unsecured Straight bond, due 2014, interest 1.404% 200,000 200,000 Unsecured Straight bond, due 2019, interest 2.05% 100,000 100,000 Unsecured Straight bonds issued by subsidiaries, due 2010-2019, interest 0.53% - 2.02% 182,406 60,143 Unsecured bank loans, due 2009 - 2015, effective interest 1.1% in fiscal 2010 and 1.6% in fiscal 2009 404,318 22,043 Secured bank loans by subsidiaries, due 2009 - 2026, effective interest 2.04% in fiscal 2010 and 2.51% in fiscal 2009 4,558 3,136 Capital lease obligations 144,770 112,331 1,236,052 697,653 Less current portion 207,124 46,343 1,028,928 651,310 The aggregate annual maturities of long-term debt after March31, 2010 are as follows: Year ending March 31 Yen(millions) 2011 207,124 2012 368,594 2013 74,721 2014 283,617 2015 98,872 2016 and thereafter 203,124 As is customary in Japan, short-term and long-term bank loans are made under general agreements which provide that security and guarantees for future and present indebtedness will be given upon request of the bank, and that the bank shall have the right, as the obligations become due, or in the event of their default, to offset cash deposits against such obligations due to the bank. Each of the loan agreements grants the lender the right to request additional security or mortgages on certain assets. At March31, 2010 and 2009, other investments and advances, and property, plant and equipment with a book value of 9,933million yen and 4,967million yen respectively, was pledged as collateral by subsidiaries for secured loans from banks. At March31, 2010 and 2009, loans subject to such general agreements amounted to 6,761million yen and 7,130million yen, respectively. The balance of short-term loans also includes borrowings under acceptances and short-term loans of foreign subsidiaries. The weighted-average interest rate on short-term borrowings outstanding at March31, 2010 and 2009 was 2.5% and 3.5%, respectively. |
Retirement and Severance Benefi
Retirement and Severance Benefits | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Retirement and Severance Benefits | (10) Retirement and Severance Benefits The Company and certain subsidiaries have contributory, funded benefit pension plans covering substantially all employees who meet eligibility requirements. Benefits under the plans are primarily based on the combination of years of service and compensation. In addition to the plans described above, upon retirement or termination of employment for reasons other than dismissal, employees are entitled to lump-sum payments based on the current rate of pay and length of service. If the termination is involuntary or caused by death, the severance payment is greater than in the case of voluntary termination. The lump-sum payment plans are not funded. Effective April1, 2002, the Company and some of the above-mentioned subsidiaries amended their benefit pension plans by introducing a point-based benefits system, and their lump-sum payment plans to cash balance pension plans. Under point-based benefits system, benefits are calculated based on accumulated points allocated to employees each year according to their job classification and years of service. Under the cash balance pension plans, each participant has an account which is credited yearly based on the current rate of pay and market-related interest rate. During the year ended March31, 2009, the Company changed the measurement date to March31 for those postretirement benefit plans with a December31 measurement date in conformity with the measurement date provisions of ASC 715 Compensation-Retirement Benefits. The benefit obligations and plan assets of these plans were remeasured as of April1, 2008. Net periodic benefit cost, net of tax, for the period from January1, 2008 to March31, 2008, in the amount of 3,727million yen has been recorded as a reduction of beginning fiscal 2009 balance of retained earnings. Changes in fair value of plan assets and benefit obligations during the same transition period has been recorded, as a reduction of beginning fiscal 2009 balance of accumulated other comprehensive income (loss), in the amount of 73,571million yen, net of tax of 44,726million yen. Reconciliation of beginning and ending balances of the benefit obligations of the contributory, funded benefit pension plans, the unfunded lump-sum payment plans, and the cash balance pension plans, and the fair value of the plan assets at March31, 2010 and 2009 are as follows: Yen (millions) 2010 2009 Change in benefit obligations: Benefit obligations at beginning of year prior to adjustment 1,821,937 1,828,803 ASC 715 measurement date adjustment 4,378 Benefit obligations at beginning of year as adjusted 1,821,937 1,833,181 Service cost 50,285 49,660 Interest cost 51,239 50,114 Prior service benefit (666 ) Actuarial (gain) loss 12,040 (6,150 ) Benefits paid (102,014 ) (85,073 ) Effect of changes in consolidated subsidiaries 388,648 (5,560 ) Foreign currency exchange impact (1,304 ) (13,569 ) Curtailments, settlements and other (6,724 ) Benefit obligations a |
Income Taxes
Income Taxes | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Income Taxes | (11) Income Taxes Income (loss) before income taxes and income taxes for the three years ended March31, 2010 are summarized as follows: Yen (millions) Domestic Foreign Total For the year ended March31, 2010 Income (loss) before income taxes (80,125 ) 50,810 (29,315 ) Income taxes: Current 22,105 36,042 58,147 Deferred 80,954 2,732 83,686 Total income taxes 103,059 38,774 141,833 For the year ended March31, 2009 Income (loss) before income taxes (345,776 ) (36,858 ) (382,634 ) Income taxes: Current 38,297 23,543 61,840 Deferred (10,232 ) (14,250 ) (24,482 ) Total income taxes 28,065 9,293 37,358 For the year ended March31, 2008 Income before income taxes 266,972 168,021 434,993 Income taxes: Current 85,009 43,172 128,181 Deferred (16,068 ) 2,460 (13,608 ) Total income taxes 68,941 45,632 114,573 The Company and its subsidiaries in Japan are subject to a National tax of 30%, an Inhabitant tax of approximately 20.5%, and a deductible Enterprise tax of approximately 7.4% varying by local jurisdiction, which, in aggregate, resulted in a combined statutory tax rate in Japan of approximately 40.5% for the three years ended March31, 2010. The effective tax rates for the years differ from the combined statutory tax rates for the following reasons: 2010 2009 2008 Combined statutory tax rate (40.5 )% (40.5 )% 40.5 % Lower tax rates of overseas subsidiaries (38.4 ) (1.1 ) (6.9 ) Expenses not deductible for tax purposes 25.7 0.8 0.7 Change in valuation allowance allocated to income tax expenses 473.8 41.8 (5.4 ) Tax effects attributable to investments in subsidiaries 45.7 5.8 (4.8 ) Per capita tax 8.3 0.6 0.6 Goodwill impairment 5.2 Other 4.0 2.4 1.6 Effective tax rate 483.8 % 9.8 % 26.3 % The significant components of deferred income tax expenses for the three years ended March31, 2010 are as follows: Yen (millions) 2010 2009 2008 Deferred tax expense (exclusive of the effects of other components listed below) 111,579 94,250 16,898 Benefits of net operating loss carryforwards (27,893 ) (118,732 ) (30,506 ) 83,686 (24,482 ) (13,608 ) The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March31, 2010 and 2009 are presented below: Yen (millions) 2010 2009 Deferred tax assets: Inventory valuation 94,596 78,930 Expenses accrued for financial statement purposes but no |
Stockholders' Equity
Stockholders' Equity | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Stockholders' Equity | (12) Stockholders Equity The Company may repurchase its common stock from the market pursuant to the Company Law of Japan. For the years ended March31, 2010, 2009 and 2008, respectively, 53,863, 30,875,208 and 45,294,912 shares were repurchased for the aggregate cost of approximately 72million yen, 72,416million yen and 103,112million yen, respectively, primarily with the intention to hold as treasury stock to improve capital efficiency. The Company sold 17,731, 399,673 and 127,610 shares of its treasury stock for the years ended March31, 2010, 2009 and 2008, respectively. The difference between sales price and book value was charged to capital surplus in the consolidated balance sheets. The Company Law of Japan provides that an amount equal to 10% of appropriations be appropriated as a capital reserve or legal reserve until the aggregated amount of capital reserve and legal reserve equals 25% of stated capital. The capital reserve and legal reserve are not available for dividends but may be transferred to capital surplus or retained earnings or stated capital upon approval of the shareholders meeting. Cash dividends and transfers to the legal reserve charged to retained earnings during the three years ended March31, 2010 represent dividends paid out during the periods and related appropriation to the legal reserve. Cash dividends per share paid during the three years ended March31, 2010 amounted to 12.50 yen, 40.00 yen and 32.50 yen, respectively. The accompanying consolidated financial statements do not include any provisions for the year-end dividend of 5.0 yen per share, totaling approximately 10,353million yen in respect of the year ended March31, 2010 approved by the board of directors in May 2010. In accordance with the Company Law of Japan, there are certain restrictions on payment of dividends in connection with the treasury stock repurchased. As a result of restrictions on the treasury stock repurchased, retained earnings of 671,223million yen at March31, 2010 were restricted as to the payment of cash dividends. The Companys directors and certain senior executives were granted options to purchase the Companys common stock. All stock options become fully exercisable two years from the date of grant and have a four-year term. Information with respect to stock options is as follows: Numberof shares Weighted-average exerciseprice(Yen) Balance at March31, 2007 47,000 2,008 Exercised (8,000 ) 1,895 Forfeited (27,000 ) 2,163 Balance at March31, 2008 12,000 1,734 Forfeited (12,000 ) 1,734 Balance at March31, 2009 Balance at March31, 2010 Treasury stock reserved for options at March31, 2007 was 30,000 shares. There was no treasury stock reserved for options from March31, 2008 through 2010. |
Other Comprehensive Income
Other Comprehensive Income (Loss) | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Other Comprehensive Income (Loss) | (13) Other Comprehensive Income (Loss) Components of other comprehensive income (loss) for the three years ended March31, 2010 are as follows: Yen (millions) Pre-tax amount Tax expense Net-of-tax amount For the year ended March31, 2010 Translation adjustments: Translation adjustments arising during the period (21,186 ) (21,186 ) Less: Reclassification adjustment for (gains) losses included in net income (loss) 10,129 10,129 Net translation adjustments (11,057 ) (11,057 ) Unrealized holding gains (losses) of available-for-sale securities: Unrealized holding gains (losses) arising during the period 88,042 (36,356 ) 51,686 Less: Reclassification adjustment for (gains) losses included in net income (loss) (703 ) 280 (423 ) Net unrealized gains (losses) 87,339 (36,076 ) 51,263 Unrealized holding gains (losses) of derivative instruments: Unrealized holding gains (losses) arising during the period 4,607 (1,543 ) 3,064 Less: Reclassification adjustment for (gains) losses included in net income (loss) 4,657 (1,560 ) 3,097 Net unrealized gains (losses) 9,264 (3,103 ) 6,161 Pension liability adjustments: Prior service benefit arising during the period Less: Amortization of prior service benefit included in net periodic benefit cost (23,947 ) 8,962 (14,985 ) Net prior service benefit (23,947 ) 8,962 (14,985 ) Actuarial gain (loss) arising during the period 139,867 (49,300 ) 90,567 Less: Amortization of actuarial gain (loss) included in net periodic benefit cost 39,159 (14,963 ) 24,196 Net actuarial gain (loss) 179,026 (64,263 ) 114,763 Net pension liability adjustments 155,079 (55,301 ) 99,778 Other comprehensive income (loss) 240,625 (94,480 ) 146,145 Yen (millions) Pre-tax amount Tax expense Net-of-tax amount For the year ended March31, 2009 Translation adjustments: Translation adjustments arising during the period (116,738 ) (116,738 ) Less: Reclassification adjustment for (gains) losses included in net income (loss) 3,938 3,938 Net translation adjustments (112,800 ) (112,800 ) Unrealized holding gains (losses) of available-for-sale securities: Unrealized holding gains (losses) arising during the period (167,397 ) 67,907 (99,490 ) Less: Reclassification adjustment for (gains) losses included in net income (loss) 73,075 (29,590 ) 43,485 Net unrealized gains (losses) (94,322 ) 38,317 (56,005 ) Unrealized holding gains (losses) o |
Net Income
Net Income (Loss) per Share Attributable to Panasonic Corporation Common Shareholders | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Net Income (Loss) per Share Attributable to Panasonic Corporation Common Shareholders | (14) Net Income (Loss) per Share Attributable to Panasonic Corporation Common Shareholders A reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share attributable to Panasonic Corporation common shareholders computation for the three years ended March31, 2010 is as follows: Yen (millions) 2010 2009 2008 Net income (loss) attributable to Panasonic Corporation common shareholders (103,465 ) (378,961 ) 281,877 Number of shares 2010 2009 2008 Average common shares outstanding 2,070,623,618 2,079,296,525 2,120,986,052 Dilutive effect: Stock options 3,818 Diluted common shares outstanding 2,079,296,525 2,120,989,870 Yen 2010 2009 2008 Net income (loss) per share attributable to Panasonic Corporation common shareholders: Basic (49.97 ) (182.25 ) 132.90 Diluted (182.25 ) 132.90 Diluted net income (loss) per share attributable to Panasonic Corporation common shareholders for the year ended March31, 2010 has been omitted because the Company did not have potentially dilutive common shares that were outstanding for the period. The effect of stock options was not included in the calculation of diluted net loss per share for the year ended March31,2009 as the effect would be antidilutive due to the net loss incurred for the year. |
Restructuring Charges
Restructuring Charges | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Restructuring Charges | (15) Restructuring Charges In connection with the reorganization of the Companys operations, the Company has incurred certain restructuring charges. Components and related amounts of the restructuring charges, before the related tax effects, for the years ended March31, 2010, 2009 and 2008 are as follows: Yen (millions) 2010 2009 2008 Expenses associated with the implementation of early retirement programs: Domestic 33,070 26,452 27,050 Overseas 5,884 11,899 5,594 Total 38,954 38,351 32,644 Expenses associated with the closure and integration of locations 15,918 15,049 6,922 Total restructuring charges 54,872 53,400 39,566 These restructuring charges are included in other deductions in the consolidated statements of operations. The Company has provided early retirement programs to those employees voluntarily leaving the Company. The accrued early retirement programs are recognized when the employees accept the offer and the amount can be reasonably estimated. Expenses associated with the closure and integration of locations include amounts such as moving expenses of facilities and costs to terminate leasing contracts incurred at domestic and overseas manufacturing plants and sales offices. An analysis of the accrued restructuring charges for the years ended March31, 2010, 2009 and 2008 is as follows: Yen (millions) 2010 2009 2008 Balance at beginning of year 32,523 4,761 10,020 New charges 54,872 53,400 39,566 Cash payments (78,006 ) (25,638 ) (44,825 ) Balance at end of year 9,389 32,523 4,761 The following represents significant restructuring activities for the year ended March31, 2010 by business segment: Digital AVC Networks Digital AVC Networks segment continued selection and concentration of its businesses for improving its cost competitiveness. The restructuring activities mainly consisted of the early retirement programs in Japan. Total restructuring charges amounted to 15,409million yen, including expenses associated with the implementation of early retirement programs of 11,757million yen. Home Appliances Home Appliances segment restructured its operations to accelerate concentration of its business for strengthening its management structure. The restructuring activities were mainly integrations of overseas manufacturing bases and the early retirement programs in Japan. Total restructuring charges amounted to 8,561million yen, including expenses associated with the implementation of early retirement programs of 5,145million yen. PEW and PanaHome PEW and PanaHome segment restructured to improve cost efficiency in Japan and overseas bases. Total restructuring charges amounted to 6,975million yen. Components and Devices Components and Devices segment restructured to mainly improve efficiency and cost effectiveness in Japan. Total restructuring charges amounted to 8,173million yen, including expenses associated |
Supplementary Information to th
Supplementary Information to the Statements of Operations and Cash Flows | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Supplementary Information to the Statements of Operations and Cash Flows | (16) Supplementary Information to the Statements of Operations and Cash Flows Research and development costs, advertising costs, shipping and handling costs and depreciation charged to income for the three years ended March31, 2010 are as follows: Yen (millions) 2010 2009 2008 Research and development costs 476,903 517,913 554,538 Advertising costs 150,866 174,939 200,890 Shipping and handling costs 129,114 146,920 159,418 Depreciation 251,839 325,835 282,102 Foreign exchange losses included in other deductions for the years ended March31, 2010, 2009 and 2008 are 3,486million yen, 7,501million yen and 11,492million yen, respectively. Shipping and handling costs are included in selling, general and administrative expenses in the consolidated statements of operations. In fiscal 2010, 2009 and 2008, the Company sold, without recourse, trade receivables of 443,673million yen, 458,321million yen and 443,464million yen to independent third parties for proceeds of 442,779 million yen, 456,870million yen and 441,778million yen, and recorded losses on the sale of trade receivables of 894million yen, 1,451million yen and 1,686million yen, respectively. In fiscal 2010, 2009 and 2008, the Company sold, with recourse, trade receivables of 355,512million yen, 411,778million yen and 397,796million yen to independent third parties for proceeds of 355,113million yen, 411,022million yen and 397,421million yen, and recorded losses on the sale of trade receivables of 399million yen, 756million yen and 375million yen, respectively. Those losses are mainly included in selling, general and administrative expenses. The Company is responsible for servicing the receivables. Included in trade notes receivable and trade accounts receivable at March31, 2010 are amounts of 37,619million yen without recourse and 26,576million yen with recourse scheduled to be sold to independent third parties. The sale of trade receivables was accounted for under the provision of ASC 860, Transfers and Servicing, which provides accounting and reporting standards for transfer and servicing of financial assets and extinguishments of liabilities. Interest expenses and income taxes paid, and noncash investing and financing activities for the three years ended March31, 2010 are as follows: Yen (millions) 2010 2009 2008 Cash paid: Interest 26,301 19,627 20,911 Income taxes 51,441 95,198 122,416 Noncash investing and financing activities: Capital leases 37,505 12,235 36,330 JVC and its subsidiaries became associated companies under equity method from consolidated companies in August, 2007. Certain financial information of JVC and its subsidiaries at the date of deconsolidation is as follows: Yen(millions) Assets: Current assets 311,080 Other assets 115,546 Total 426,626 Liabilities: Current liabilities 242,336 Other liabilities 36,149 Total 278,485 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Derivatives and Hedging Activities | (17) Derivatives and Hedging Activities The Company operates internationally, giving rise to significant exposure to market risks arising from changes in foreign exchange rates, interest rates and commodity prices. The Company assesses these risks by continually monitoring changes in these exposures and by evaluating hedging opportunities. Derivative financial instruments utilized by the Company to hedge these risks are comprised principally of foreign exchange contracts, interest rate swaps, cross currency swaps and commodity derivatives. The Company does not hold or issue derivative financial instruments for trading purpose. Amounts included in accumulated other comprehensive income (loss) at March31, 2010 are expected to be recognized in earnings principally over the next twelve months. The maximum term over which the Company is hedging exposures to the variability of cash flows for foreign currency exchange risk is approximately five months. The Company is exposed to credit risk in the event of non-performance by counterparties to the derivative contracts, but such risk is considered mitigated by the high credit rating of the counterparties. The contract amounts of foreign exchange contracts, interest rate swaps, cross currency swaps and commodity futures at March31, 2010 and 2009 are as follows: Yen (millions) 2010 2009 Forward: To sell foreign currencies 375,430 334,586 To buy foreign currencies 196,439 190,495 Cross currency swaps 31,797 33,953 Interest rate swaps 33,702 Commodity futures: To sell commodity 40,194 48,858 To buy commodity 113,682 168,527 The fair values of derivative instruments at March31, 2010 are as follows: Yen (millions) Asset derivatives Liability derivatives Consolidatedbalance sheet location Fair value Consolidatedbalance sheet location Fair value Derivatives designated as hedging instruments under ASC 815: Foreign exchange contracts Othercurrentassets 415 Othercurrentliabilities (1,971 ) Commodity futures Other current assets 11,330 Other current liabilities (3,345 ) Total derivatives designated as hedging instruments under ASC815 11,745 (5,316 ) Derivatives not designated as hedging instruments under ASC815: Foreign exchange contracts Other current assets 8,590 Other current liabilities (2,307 ) Cross currency swaps Other current liabilities (283 ) Interest rate swaps Other current assets 23 Commodity futures Other current assets 1,231 Other current liabilities (1,231 ) Total derivatives not designated as hedging instrumentsunderASC815 9,844 (3,821 ) Total derivatives 21,589 (9,137 ) The fair values of derivative instruments at March31, 2009 are as follows: Yen (millions) Asset derivatives Liability derivatives Consolidatedbalance sheet location Fai |
Fair Value
Fair Value | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Fair Value | (18) Fair Value The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and cash equivalents, Time deposits, Trade receivables, Short-term debt, Trade payables and Accrued expenses The carrying amount approximates fair value because of the short maturity of these instruments. Short-term investments The fair value of short-term investments is estimated based on quoted market prices. Investments and advances The fair value of investments and advances is estimated based on quoted market prices or the present value of future cash flows using appropriate current discount rates. Long-term debt The fair value of long-term debt is estimated based on quoted market prices or the present value of future cash flows using appropriate current discount rates. Derivative financial instruments The fair value of derivative financial instruments, all of which are used for hedging purposes, is estimated based on unadjusted market prices or quotes obtained from brokers, which are periodically validated by pricing models using observable inactive market inputs. The estimated fair values of financial instruments, all of which are held or issued for purposes other than trading, at March31, 2010 and 2009 are as follows: Yen (millions) 2010 2009 Carrying amount Fair value Carrying amount Fair value Non-derivatives: Assets: Short-term investments 1,998 1,998 Other investments and advances 454,313 454,516 424,237 423,223 Liabilities: Long-termdebt,includingcurrentportion (1,236,052 ) (1,250,048 ) (697,653 ) (698,502 ) Derivatives: Other current assets: Forward: To sell foreign currencies 3,511 3,511 To buy foreign currencies 5,494 5,494 2,503 2,503 Cross currency swaps 1,535 1,535 Interest rate swaps 23 23 Commodity futures: To sell commodity 13,955 13,955 To buy commodity 12,561 12,561 Other current liabilities: Forward: To sell foreign currencies (2,390 ) (2,390 ) (9,902 ) (9,902 ) To buy foreign currencies (1,888 ) (1,888 ) Cross currency swaps (283 ) (283 ) Commodity futures: To sell commodity (4,576 ) (4,576 ) To buy commodity (57,720 ) (57,720 ) Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The provisions of ASC 820 defines fair value and |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Commitments and Contingent Liabilities | (19) Commitments and Contingent Liabilities The Company provides guarantees to third parties mainly on bank loans provided to associated companies and customers. The guarantees are made to enhance their credit. For each guarantee provided, the Company is required to perform under the guarantee if the guaranteed party defaults on a payment. Also, as discussed in Note 16, the Company sold certain trade receivables to independent third parties, some of which are with recourse. If the collectibility of those receivables with recourse becomes doubtful, the Company is obligated to assume the liabilities. At March31, 2010, the maximum amount of undiscounted payments the Company would have to make in the event of default was 38,480million yen. The carrying amount of the liabilities recognized for the Companys obligations as a guarantor under those guarantees at March31, 2010 and 2009 were immaterial. As discussed in Note 6, in connection with the sale and leaseback of certain machinery and equipment, the Company guarantees a specific value of the leased assets. For each guarantee provided, the Company is required to perform under the guarantee if certain conditions are met during or at the end of the lease term. At March31, 2010, the maximum amount of undiscounted payments the Company would have to make in the event that these conditions were met was 40,528million yen. The carrying amount of the liabilities recognized for the Companys obligations as a guarantor under those guarantees at March31, 2010 and 2009 were immaterial. The Company issues contractual product warranties under which it generally guarantees the performance of products delivered and services rendered for a certain period or term. The change in accrued warranty costs for the years ended March31, 2010 and 2009 are summarized as follows: Yen (millions) 2010 2009 Balance at beginning of year 41,478 36,178 Change in consolidated subsidiaries 4,253 Liabilities accrued for warranties issued during the period 51,704 51,526 Warranty claims paid during the period (45,489 ) (45,797 ) Changes in liabilities for pre-existing warranties during the period, including expirations (640 ) (429 ) Balance at end of year 51,306 41,478 At March31, 2010, commitments outstanding for the purchase of property, plant and equipment approximated 105,260million yen. Certain subsidiaries are under the contracts to purchase specific raw materials until 2020. At March31, 2010, commitments outstanding for this contract approximated 113,210million yen. Liabilities for environmental remediation costs are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated. In January 2003, the Company announced that disposed electric equipment that contained polychlorinated biphenyls (PCB equipment) might be buried in the ground of its four manufacturing facilities and one former manufacturing facility. The applicable laws require that PCB equipment be appropriately maintained and disposed of by July 2016. The Company has accrue |
Segment Information
Segment Information | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Segment Information | (20) Segment Information In accordance with the provisions of ASC 280, the segments reported below are the components of the Company for which separate financial information is available that is evaluated regularly by the chief operating decision maker of the Company in deciding how to allocate resources and in assessing performance. Business segments correspond to categories of activity classified primarily by markets, products and brand names. Digital AVC Networks includes video and audio equipment, and information and communications equipment. Home Appliances includes household equipment. PEW and PanaHome includes electrical supplies, electric products, building materials and equipment, and housing business. Components and Devices includes semiconductors, electronic components, batteries and electric motors. SANYO includes solar cells, lithium-ion batteries, optical pickups, and others. Other includes electronic-parts-mounting machines, industrial robots and industrial equipment. The Company has changed the internal business transactions between Global Procurement Service Company and other segments since April1, 2008. Accordingly, segment information for Other and Corporate and eliminations of fiscal 2008 have been reclassified to conform to the presentation for fiscal 2010 and 2009. Information by segment for the three years ended March31, 2010 is shown in the tables below: By Business Segment: Yen (millions) 2010 2009 2008 Sales: Digital AVC Networks: Customers 3,360,278 3,701,996 4,267,217 Intersegment 49,223 46,961 52,377 Total 3,409,501 3,748,957 4,319,594 Home Appliances: Customers 951,503 1,009,958 1,126,037 Intersegment 190,739 212,992 190,365 Total 1,142,242 1,222,950 1,316,402 PEW and PanaHome: Customers 1,573,393 1,717,168 1,854,023 Intersegment 58,720 49,094 56,269 Total 1,632,113 1,766,262 1,910,292 Components and Devices: Customers 697,346 779,761 989,414 Intersegment 307,988 347,509 409,270 Total 1,005,334 1,127,270 1,398,684 SANYO: Customers 399,888 Intersegment 4,953 Total 404,841 Other: Customers 435,572 556,624 650,941 Intersegment 576,582 515,114 433,313 Total 1,012,154 1,071,738 1,084,254 JVC: Customers 181,296 Intersegment 1,846 Total 183,142 Eliminations (1,188,205 ) (1,171,670 ) (1,143,440 ) Consolidated total 7,417,980 7,765,507 9,068,928 Segment profit (loss): Digital AVC Networks 87,289 3,176 252,239 Home Appliances 66,525 48,980 86,412 PEW and PanaHome 34,742 40,08 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | |
12 Months Ended
Mar. 31, 2010 JPY (¥) | |
Valuation and Qualifying Accounts and Reserves | Schedule II PANASONIC CORPORATION AND SUBSIDIARIES Valuation and Qualifying Accounts and Reserves (In millions of yen) Years ended March31, 2010, 2009 and 2008 Balance at beginning of period Add Deduct Add (deduct) Charged to income Change in consolidated subsidiaries Bad debts written off Reversal Cumulative translation adjustments Balance atend of period Allowancefordoubtful receivables: 2010 21,131 10,862 4,234 3,623 22 24,158 2009 20,868 10,538 3,246 5,436 (1,593 ) 21,131 2008 29,061 6,008 4,378 5,109 3,542 (1,172 ) 20,868 |