RNS Number:4141Z
TDK Corporation
1 August 2002
Contacts:
TDK Corporation(Tokyo) Corporation Communications Department
Michinori Katayama +81(3)5201-7102
TDK U.S.A. Corporation Francis J. Sweeney +1(516)535-2600
TDK UK Limited Ron Matier +44(1737)773773
TOKYO - August 1,2002 TDK Corporation today announced its consolidated business
results prepared in conformity with accounting principles generally accepted in
the United States of America for the 1st quarter (Qtr.) of fiscal year (FY) 2003
and 2002, the three months ended June 30, 2002 and 2001 are as follows;
1) Summary
Consolidated results (April 1, 2002 - June 30, 2002)
Term The 1st Qtr. of FY2003 The 1st Qtr. of
FY 2002
(April 1, 2002 - June 30, 2002) (April 1, 2001 -
June 30, 2001)
Change
Items (Yen millions) % (U.S.$ thousands) (Yen millions)
% (Yen millions) %
Net sales 148,708 100.0 1,239,233 140,244
100.0 8,464 6.0
Operating income 5,986 4.0 49,883 2,589
1.8 3,397 131.2
income before
income taxes 3,303 2.2 27,525 2,564
1.8 739 28.8
Net income 2,161 1.5 18,008 1,207
0.9 954 79.0
Net income per
common share Yen 16.27 U.S.$ 0.14 Yen 9.07
(Sales breakdown)
Term The 1st Qtr. of FY2003 The 1st Qtr. of
FY 2002
(April 1, 2002 - June 30, 2002) (April 1, 2001 -
June 30, 2001)
Change
Products (Yen millions) % (U.S.$ thousands) (Yen
millions) % (Yen millions) %
Electronic materials
and components 118,170 79.5 984,750 110,321
78.7 7,849 7.1
Electronic materials 45,860 30.8 382,167 43,900
31.3 1,960 4.5
Electronic devices 29,844 20.1 248,700 28,550
20.4 1,294 4.5
Recording devices 38,341 25.8 319,508 32,834
23.4 5,507 16.8
Semiconductors
& others 4,125 2.8 34,375 5,037
3.6 (912) (18.1)
Recording media
& systems 30,538 20.5 254,483 29,923
21.3 615 2.1
Total sales 148,708 100.0 1,239,233 140,244
100.0 8,464 6.0
Overseas sales 106,191 71.4 884,925 96,745
69.0 9,446 9.8
Notes
1. The figures for net income per common share are calculated based upon the
weighted average number of shares of common stock (the total
outstanding number).
2. TDK adopted the Emerging Issues Task Force Issue 01-9 ("EITF 01-9"),
"Accounting for Consideration Given by a Vendor to a Customer (Including a
Reseller of the Vendor's Products)" from the fiscal year beginning April 1,
2002 and has applied EITF 01-9 retroactively.
3. Consolidated results for the 1st quarter of FY2003 and FY2002 are unaudited
by independent auditors.
4. U.S.$1 = Yen 120
2) Business Results and Financial Position
1. Summary
Consolidated results for the 1st quarter of fiscal 2003, the three months period
from April 1, 2002 through June 30, 2002 are as follows:
Net sales increased 6.0% to Y148,708 million (US$1,239,233 thousand), operating
income soared 131.2% to Y5,986 million (US$49,883 thousand) and income before
income taxes rose 28.8% to Y3,303 million (US$27,525 thousand). Net income
climbed 79.0% to Y2,161 million (US$18,008 thousand) and net income per common
share was Y16.27 (US$0.14).
Average 1st quarter yen exchange rates for the U.S. dollar and the euro were
Y127 and Y117, respectively, as the yen depreciated 4% versus the dollar and 9%
versus the euro, compared with the previous year's 1st quarter. This had the
effect of increasing net sales by approximately Y4.2 billion and operating
income by approximately Y0.8 billion.
(Sales by Segment)
The following is an explanation of results by segment.
Electronic materials and components segment
In the electronic materials and components segment, net sales rose 7.1% to
Y118,170 million (US$984,750 thousand) as orders began to rebound early in 2002,
ending a prolonged period of inventory reductions at customers that lasted
throughout 2001.
Electronic materials
Within this segment, sales in the electronic materials sector increased 4.5% to
Y45,860 million (US$382,167 thousand).
(Capacitors) Sales of capacitors rose on the back of continuing strong demand
for use in audio and visual products, such as DVD players and video game
consoles, and in automobiles and PCS and peripherals.
(Ferrite cores and magnets) In ferrite cores and magnets, overall sales of
ferrite cores dropped year on year. Demand failed to recover for cores used in
information and communications applications, and for deflection yoke cores, a
key component of TVs and computer monitors. This negated firm demand for cores
used in LCD backlights and power supplies for audio and visual products. Magnet
sales, meanwhile, were largely the same year on year thanks to a continuation of
solid demand from the previous fiscal year from the automobile and parts fields.
Electronic devices
In the electronic devices sector, sales rose 4.5% to Y29,844 million (US$248,700
thousand).
(Inductive devices) Inductive devices saw sales remain stable as a whole because
sales to the communications market fell short of those in the corresponding
quarter of the previous year. This result came despite a slight increase in
demand for devices used in PCs and peripherals and in automotive applications
due to the increasing use of electronics in automobiles.
(High-Frequency components) Sales of high-frequency components also dropped due
to stronger calls than last year for discounts from customers. The effect of
these discounts outweighed a quarter-on-quarter recovery in demand for use in
communications applications, particularly mobile phones. A high proportion of
TDK's high-frequency components are used in this market.
(Other products) In other products, sales rose, buoyed by strong demand for
DC-DC converters for video game systems.
Recording devices
Recording devices sales rose 16.8% to Y38,341 million (US$319,508 thousand) as
TDK increased sales of HDD heads, regaining market share. Behind this growth
were TDK's well-received 40 gigabyte/disk HDD heads, which have become the
company's mainstay product in this sector. Sales of other heads fell due to
inventory cutbacks by customers and other factors.
Semiconductors & others
Sales in the semiconductors and others sector dropped 18.1% to Y4,125 million
(US$34,375 thousand), reflecting a sharp drop in sales of semiconductors for
WAN/LAN and set-top box modems due to the continuing low levels of investment in
communications infrastructure equipment.
Recording media & systems segment
In the recording media & systems segment, sales edged up 2.1% to Y30,538 million
(US$254,483 thousand). Audiotape sales fell as overall demand softened, but
videotapes sales rose slightly, boosted by demand stemming from the 2002 FIFA
World Cup TM. Optical disc sales increased on rising volumes of mainstay CD-Rs,
which offset falling sales prices, and increasing sales of DVDs. Tape-based data
storage media sales rose, contributing to the overall sales growth.
(Sales by Region)
By region, sales in Japan declined 2.3% to Y42,517 million (US$354,308
thousand), reflecting weakness in many product categories compared with other
regions. One bright note was higher demand for DC-DC converters for video game
systems. In the Americas, sales rose 8.3% to Y29,197 million (US$243,308
thousand), despite lower demand in electronic materials and electronic devices.
This increase reflected two factors: higher sales in recording devices, as TDK
regained market share, and higher sales in the recording media & systems
segment. In Europe, sales dropped 15.8% to Y16,634 million (US$138,617 million)
due to waning demand for electronic materials for mobile phones, particularly
GSM-format phones, and electronic devices. In Asia (excluding Japan) and Others,
sales climbed 20.7% to Y60,360 million (US$503,000 thousand) on higher sales in
recording devices, as TDK regained market share, and an upturn in orders for
electronic materials and electronic devices.
The overall result was a 9.8% rise in overseas sales year on year to Y106,191
million (US$884,925 thousand). Overseas sales accounted for 71.4% of
consolidated net sales, a 2.4 percentage point increase from 69.0% in the
previous year's 1st quarter.
2. Cash Flows
Cash Flows From Operating Activities
Operating activities provided net cash of Y9,755 million, Y1,037 million higher
year on year. This reflected level depreciation and amortization, decreases in
trade receivables and inventories, and increases in trade payables. On the other
hand, accrued salaries and wages, retirement pay decreased substantially due to
the payment of early retirement expenses accompanying structural reforms
implemented in the previous fiscal year.
Cash Flows From Investing Activities
Investing activities used net cash of Y6,168 million, Y17,209 million less than
in the previous year's 1st quarter. This was attributable to a Y16,282 million
fall to Y6,342 million in capital expenditures.
Cash Flows From Financing Activities
Financing activities used net cash of Y2,967 million, Y3,220 million less than
in the previous year's 1st quarter. Repayments of short-term debt were lower and
only Y2,657 million was used for the payment of dividends as TDK reduced its
dividend beginning with the payment applicable to the second half of the
previous fiscal year.
3. Fiscal 2003 Projections
TDK's consolidated projections for fiscal 2003, the year ending March 31, 2003,
which were announced in May this year, have been revised as follows. The
consolidated projections are based principally on the following assumptions:
# The average yen-U.S. dollar exchange rate for the fiscal year was initially
estimated at Y120. TDK is also assuming a rate of Y120 for the second quarter
onward.
# As explained in May, TDK expects any economic recovery, particularly in the
U.S., to be tenuous and any upturn in demand to be mild at best. Consequently,
TDK is predicting a continuation of difficult market conditions for the
electronic components industry.
# Regarding earnings' forecasts for the second quarter onward, TDK does not
expect any significant change from the projections announced in May. TDK thus
projects the following results for the full year.
Consolidated Projections for Fiscal 2003
Revised Change As of May
Projection (Y millions 2002
Y millions or %) from Y millions
FY02
Net sales Y580,000 1.7% Y580,000
Operating income (loss) 20,000 -43,722 20,000
Income (loss) before income 17,000 -43,697 17,000
taxes
Net income (loss) 13,000 -25,771 13,000
Note:
TDK adopted the Emerging Issues Task Force Issue 01-9 ("EITF 01-9"), "Accounting
for Consideration Given by a Vendor to a Customer (including a Reseller of the
Vendor's Products)" from the fiscal year beginning April 1, 2002 and has applied
EITF 01-9 retroactively, restating net sales for fiscal 2002.
Cautionary Statement About Projections
This earnings release contains forward-looking statements, including
projections, plans, policies, management strategies, targets, schedules,
understandings and evaluations, about TDK and its group companies that are not
historical facts. These forward-looking statements are based on current
forecasts, estimates, assumptions, plans, beliefs and evaluations in light of
information available to management on the date of this earnings release.
In preparing forecasts and estimates, TDK and its group companies have used as
their basis, certain assumptions as necessary, in addition to confirmed
historical facts. However, due to their nature, there is no guarantee that these
statements and assumptions will prove to be accurate in the future. TDK
therefore wishes to caution readers that these statements, facts and certain
assumptions contained in this earnings release are subject to a number of risks
and uncertainties and may prove to be inaccurate.
The electronics markets in which TDK and its group companies operate are highly
susceptible to rapid changes. Furthermore, TDK and its group companies operate
not only in Japan, but in many other countries. As such, factors that can have
significant effects on its results include, but are not limited to, shifts in
technology, demand, prices, competition, economic environments and foreign
exchange rates.
The premises and assumptions used in computing the projections in this earnings
release include, but are not limited to, those explained above.
CONSOLIDATED
3) Statements of income
Term The 1st Qtr. of FY2003 The 1st
Qtr. of FY2002 Change
(April 1, 2002 - June 30, 2002) (April 1,
2001 - June 30, 2001)
(Yen % U.S.$
(Yen % (Yen %
Items millions) thousands)
millions) millions)
Net sales 148,708 100.0 1,239,233 140,244
100.0 8,464 6.0
Cost of sales 112,197 75.4 934,975 106,202
75.7 5,995 5.6
Gross profit 36,511 24.6 304,258 34,042
24.3 2,469 7.3
Selling, general and
administrative expenses 29,713 20.0 247,608 31,453
22.5 (1,740) (5.5)
Restructuring cost 812 0.6 6,767 -
- 812 -
Operating income 5,986 4.0 49,883 2,589
1.8 3,397 131.2
Other income (deductions):
Interest and dividend income 325 2,708 713
(388)
Interest expense (118) (983)
(360) 242
Foreign exchange gain (loss) (2,890) (24,083)
(92) (2,798)
Other-net 0 0
(286) 286
Total other income (deductions) (2,683) (1.8) (22,358)
(25) - (2,658) -
Income before income taxes 3,303 2.2 27,525 2,564
1.8 739 28.8
Income taxes 1,103 0.7 9,192 1,257
0.9 (154)(12.3)
Income before minority interests 2,200 1.5 18,333 1,307
0.9 893 68.3
Minority Interests 39 - 325 100
- 61 61.0
Net income 2,161 1.5 18,008 1,207
0.9 954 79.0
Net income per common share Yen 16.27 U.S. $0.14
Yen 9.07
Average common shares outstanding 132,859 thousands
133,019 thousands
Notes:
1. The figures for net income per common share are calculated based upon the
weighted average number of shares of common stock (the total outstanding
number).
2. TDK adopted the Emerging Issues Task Force Issue 01-9 ("EITF 01-9"),
"Accounting for Consideration Given by a Vendor to a Customer (Including a
Reseller of the Vendor's Products)" from the fiscal year beginning April 1, 2002
and has applied EITF 01-9 retroactively.
3. Statements of Income for the 1st quarter of FY2003 and FY2002 are unaudited
by Independent auditors.
4. U.S.$1=Yen 120
CONSOLIDATED
4) Balance sheets
ASSETS
Term As of June 30, 2002 As of Mar. 31,
2002 Change As of June 30, 2001
(Yen % (U.S. $ (Yen millions)
% (Yen (Yen %
Items millions) thousands)
millions) millions)
Current assets 383,470 53.2 3,195,583 399,206
53.2 (15,736) 416,314 52.6
Cash and cash equivalents 120,289 1,002,408 125,761
(5,472) 129,849
Net trade receivables 134,155 1,117,959 142,827
(8,672) 132,123
Inventories 83,734 697,783 91,149
(7,415) 123,531
Other current assets 45,292 377,433 39,469
5,823 30,811
Noncurrent assets 336,906 46.8 2,807,550 350,704
46.8 (13,798) 374,632 47.4
Investments and advances 21,573 179,775 24,265
(2,692) 22,979
Net property, plant and equipment 249,884 2,082,367 265,590
(15,706) 283,377
Prepaid pension cost - - -
- 40,039
Other assets 65,449 545,408 60,849
4,600 28,237
TOTAL 720,376 100.0 6,003,133 749,910
100.0 (29,534) 790,946 100.0
LIABILITIES AND STOCKHOLDERS' EQUITY
Term As of June 30, 2002 As of Mar. 31,
2002 Change As of June 30, 2001
(Yen % (U.S. $ (Yen millions)
% (Yen (Yen %
Items millions) thousands)
millions) millions)
Current liabilities 95,230 13.2 793,583 110,341
14.7 (15,111) 119,232 15.1
Short-term debt 1,854 15,450 2,312
(458) 3,795
Trade payables 53,898 449,150 52,609
1,289 53,161
Accrued expenses 22,848 190,400 23,757
(909) 31,166
Income taxes 2,765 23,042 2,546
219 6,116
Other current liabilities 13,865 115,541 29,117
(15,252) 24,994
Noncurrent liabilities 64,025 8.9 533,542 51,049
6.8 12,976 33,121 4.2
Long-term debt, excluding
current installments 352 2,933 459
(107) 832
Retirement and severance benefits 61,995 516,625 49,992
12,003 31,872
Deferred income taxes 1,678 13,984 598
1,080 417
Total liabilities 159,255 22.1 1,327,125 161,390
21.5 (2,135) 152,353 19.3
Minority interests 4,541 0.6 37,842 4,593
0.6 (52) 3,455 0.4
Common stock 32,641 272,008 32,641
- 32,641
Additional paid-in capital 63,051 525,425 63,051
- 63,051
Legal reserve 15,844 132,033 15,683
161 15,374
Retained earnings 519,486 4,329,050 520,143
(657) 551,416
Accumulated
other comprehensive income (loss) (70,847) (590,392) (43,999)
(26,848) (24,677)
Treasury stock (3,595) (29,958) (3,592)
(3) (2,667)
Total stockholders' equity 556,580 77.3 4,638,166 583,927
77.9 (27,347) 635,138 80.3
TOTAL 720,376 100.0 6,003,133 749,910
100.0 (29,534) 790,946 100.0
Total common shares outstanding 132,859 thousands 132,860
thousands 133,019 thousands
Notes:
1. Balance sheets as of June 30,2002 and 2001 are unaudited by independent
auditors.
2. U.S.$1=Yen 120
CONSOLIDATED
5) Statements of cash flows
The 1st Qtr
Term
of FY2002
The 1st Qtr.of FY2003
(April 1,
2001-June
(April 1,2002 - June 30. 2002)
30, 2001
(Yen (U.S.$
(Yen
Items millions) thousands)
millions)
Cash flows from operating activities:
Net income 2,161 18,008
1,207
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 14,469 120,575
14,766
Loss on disposal of property and equipment 1,083 9,025
39
Deferred income taxes (169) (1,408)
(3,073)
Changes in assets and liabilities:
Decrease in trade receivables 1,579 13,158
22,856
Decrease (increase) in inventories 3,639 30,325
(7,582)
Increase (decrease) in trade payables 4,370 36,417
(10,660)
Increase (decrease) in accrued salaries
and wages, retirement pay (17,707) (147,558)
345
Increase (decrease) in income taxes 352 2,933
(13,494)
Other-net (22) (183)
4,314
Net cash provided by operating activities 9,755 81,292
8,718
Cash flows from investing activities:
Capital expenditures (6,342) (52,850)
(22,624)
Payment for purchase of investments (30) (250)
(1,023)
Other-net 204 1,700
270
Net cash used in investing activities (6,168) (51,400)
(23,377)
Cash flows from financing activities:
Repayment of long-term debt (251) (2,092)
(189)
Decrease in short-term debt (56) (466)
(2,006)
Payment to acquire treasury stock (3) (25)
(1)
Dividends paid (2,657) (22,142)
(3,991)
Net cash used in financing activities (2,967) (24,725)
(6,187)
Effect of exchange rate changes
on cash and cash equivalents (6,092) (50,767)
(222)
Net decrease in cash and cash equivalents (5,472) (45,600)
(21,068)
Cash and cash equivalents at beginning of period 125,761 1,048,008
150,917
Cash and cash equivalents at end of period 120,289 1,002,408
129,849
Notes:
1. Statements of cash flows for the 1st quarter of FY2003 and FY2002 are
unaudited by independent auditors.
2. U.S.$1=Yen 120
6) Segment information
The following industry and geographic segment information are required by the
Japanese Securities Exchange Law. Segment information is unaudited.
TDK adopted the Emerging Issues Task Force Issue 01-9 ("EITF 01-9"). "Accounting
for Consideration Given by a Vendor to a Customer (Including a Reseller of the
Vendor's Products)" from the fiscal year beginning April 1, 2002 and has applied
EITF 01-9 retroactively.
1. Industry segment information
Term
The 1st
Qtr. of
The 1st Qtr. of FY2003
FY2002
(April 1,
2001 - Change
(April 1, 2002 - June 30, 2002) June 30,
2001)
(Yen U.S.$ (Yen
(Yen
Items millions) % thousands) millions
% millions %
Electronic materials and components
Net sales 118,170 100.0 984,750 110,321
100.0 7,849 7.1
Unaffiliated customers 118,170 984,750 110,321
7,849 7.1
Intersegment - - -
- -
Operating expenses 112,654 95.3 938,783 106,096
96.2 6,558 6.2
Operating income 5,516 4.7 45,967 4,225
3.8 1,291 30.6
Recording media & systems
Net sales 30,538 100.0 254,483 29,923
100.0 615 2.1
Unaffiliated customers 30,538 254,483 29,923
615 2.1
Intersegment - - -
- -
Operating expenses 30,068 98.5 250,567 31,559
105.5 (1,491) (4.7)
Operating Income (loss) 470 1.5 3,916 (1,636)
(5.5) 2,106 -
TOTAL
Net sales 148,708 100.0 1,239,233 140,244
100.00 8,464 6.0
Unaffiliated customers 148,708 1,239,233 140,244
8,464 6.0
Intersegment - - -
- -
Operating expenses 142,722 96.0 1,189,350 137,655
98.2 5,067 3.7
Operating Income (loss) 5,986 4.0 49,883 2,589
1.8 3,397 131.2
Note: U.S.$1=Yen 120
2. Geographic segment information
Term
The 1st
Qtr. of
The 1st Qtr. of FY2003
FY2002
(April 1,
2001 - Change
(April 1, 2002 - June 30, 2002) June 30,
2001)
(Yen U.S.$ (Yen
(Yen
Region millions) % thousands) millions)
% millions) %
Japan Net sales 86,610 100.0 721,750 87,342
100.0 (732) (0.8)
Operating income 1,157 1.3 9,642 3,884
4.4 (2,727) (70.2)
Americas Net sales 25,239 100.0 210,325 25,612
100.0 (373) (1.5)
Operating income (loss) (65) (0.3) (542) (2,637)
(10.3) 2,572 97.5
Europe Net sales 16,627 100.0 138,558 19,276
100.0 (2,649) (13.7)
Operating income (loss) (611) (3.7) (5,092) 203
1.1 (814) -
Asia and Net sales 74,469 100.0 620,575 63,137
100.0 11,332 17.9
others Operating income 5,258 7.1 43,817 740
1.2 4,518 610.5
Intersegment Net sales 54,237 451,975 55,123
(886)
eliminations Operating income (loss) (247) (2,058) (399)
152
Total Net sales 148,708 100.0 1,239,233 140,244
100.0 8,464 6.0
Operating income 5,986 4.0 49,883 2,589
1.8 3,397 131.2
Notes:
1. The sales are classified by geographic areas of the seller and include
transfers between geographic areas.
2. U.S.$1=Yen 120
3. Sales by region
Term
The 1st
Qtr. of
The 1st Qtr. of FY2003
FY2002
(April 1,
2001 - Change
(April 1, 2002 - June 30, 2002) June 30,
2001)
(Yen U.S.$ (Yen
(Yen
Region millions) % thousands) millions)
% millions) %
Americas 29,197 19.6 243,308 26,970
19.2 2,227 8.3
Europe 16,634 11.2 138,617 19,765
14.1 (3,131) (15.8)
Asia and others 60,360 40.6 503,000 50,010
35.7 10,350 20.7
Overseas sales total 106,191 71.4 884,925 96,745
69.0 9,446 9.8
Japan 42,517 28.6 354,308 43,499
31.0 (982) (2.3)
Net sales 148,708 100.0 1,239,233 140,244
100.0 8,464 6.0
Notes:
1. Sales by region are classified by geographic areas of the buyer.
2. U.S.$1=Yen 120
(Notes)
1. The financial statements are prepared in conformity with accounting
principles generally accepted in the United States of America.
2. During this consolidated accounting period, TDK had 72 subsidiaries (21 in
Japan and 51 in overseas). TDK also had 7 affiliates (4 in Japan and 3 in
overseas) whose financial statements are accounted for by the equity method.
3. Comprehensive income comprises net income and other comprehensive income.
Other comprehensive income includes changes in foreign currency translation
adjustments, minimum pension liability adjustments and net unrealized gains
(losses) on securities. The net income, other comprehensive income (loss) and
total comprehensive income (loss) for the three months ended June 30, 2002
and 2001 were as follows;
Term The
1st Qtr. of
The 1st Qtr. of FY2003
FY2002
(April 1, 2001 -
(April 1, 2002 - June 30, 2002)
June 30, 2001)
(Yen U.S.$
(Yen
Items millions) thousands)
millions)
Net income 2,161 18,008
1,207
Other comprehensive income (loss): (19,665) (163,875)
(379)
Minimum pension liability adjustments (5,862) (48,850)
-
Net unrealized gains (losses) on securities (1,321) (11,008)
553
Total comprehensive income (loss) (24,687) (205,725)
1,381
Note: U.S.$1=Yen 120
4. Adoption of new accounting standards
1) Accounting for Consideration Given by a Vendor to a Customer (Including a
Reseller of the Vendor's Products)
In May 2000, the Emerging Issues Task Force reached a final consensus on Issue
00-14 ("EITF 00-14"), "Accounting for Certain Sales Incentives". EITF 00-14
addresses accounting and reporting standards for sales incentives such as
coupons or rebates that are provided by vendors or manufacturers and are
exercisable by customers at the point of sale.
In April 2001, the Emerging Issues Task Force also reached a final consensus on
a portion of Issue 00-25 ("EITF 00-25"), "Vendor Income Statement
Characterization of Consideration to a Purchaser of the Vendor's Products or
Services". EITF 00-25 addresses the income statement characterization of
consideration, other than that directly addressed in EITF 00-14, from a vendor
(typically a manufacturer or distributor) to a customer (typically a retailer or
wholesaler) in connection with the sale to the customer of the vendor's products
or promotion of sales of the vendor's products by the customer.
In November 2001, EITF 00-14 and EITF 00-25 were subsequently codified in and
superseded by Issue 01-9 ("EITF 01-9"), "Accounting for Consideration Given by a
Vendor to a Customer (Including a Reseller of the Vendor's Products)" on which
the Emerging Issues Task Force reached a final consensus. TDK adopted EITF 01-9
on April 1, 2002. The adoption of EITF 01-9 did not have a material effect on
TDK's consolidated financial position or results of operations.
2) Accounting for the Impairment or Disposal of Long-Lived Assets
In August 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 144 ("SFAS 144"), "Accounting for the
Impairment or Disposal of Long-Lived Assets" which supersedes both Statement of
Financial Accounting Standards No. 121 ("SFAS 121"), "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of" and
the accounting and reporting provisions of APB Opinion No. 30 ("Opinion 30"),
"Reporting the Results of Operations - Reporting the Effects of Disposal of a
Segment of a Business, and Extraordinary, unusual and Infrequently Occurring
Events and Transactions", for the disposal of a segment of a business (as
previously defined in that Opinion).
SFAS 144 retains the fundamental provisions in SFAS 121 for recognizing and
measuring impairment losses on long-lived assets held for use and long-lived
assets to be disposed of by sale, while also resolving significant
implementation issues associated with SFAS 121. TDK adopted SFAS 144 on April 1,
2002. The adoption of SFAS 144 did not have a material effect on TDK's
consolidated financial position or results of operations.
5. U.S. dollar amounts are translated from Yen, for convenience only, at the
rate of Yen 120 = U.S.$1, the approximate rate on the Tokyo Foreign Exchange
Market on June 28, 2002.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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