- JeSF o[`ρΔ
- μ¬ϊF 2009/07/24 21:23:25
- y[WF 81
- n Other Income/Expenses
Total other expenses (net of other income) amounted to 48.3 billion, an increase of 27.1 billion year on year. Main reasons are described below. Interest Expense At March 31, 2009, consolidated interest-bearing debt totaled 875.0 billion, up 303.0 billion year on year. As a result, interest expense increased 2.0 billion, to 12.0 billion. Equity in Gain (Loss) of Affiliates Equity in loss of affiliates totaled 2.2 billion, 4.4 billion worse than the gain recorded in the previous fiscal year. This was mainly due to expenses created by the commencement of services by UQ Communications Inc. and Jibun Bank Corporation in FY 2009.3. (Reference) ? UQ Communications Inc. UQ Communications was established with equity investments from KDDI Corporation, Intel Capital Corp., East Japan Railway Company, Kyocera Corporation, Daiwa Securities Group Inc., and The Bank of Tokyo-Mitsubishi UFJ, Ltd. The aim of its establishment was to obtain a license to develop and operate 2.5GHz Broadband Wireless Access System (BWA) base stations using mobile WiMAX technology. In July 2008, UQ Communications was registered as a telecommunications carrier under the Japanese Telecommunications Business Law. In February 2009, it launched the UQ WiMAX service in Tokyofs 23 main wards, as well as Yokohama and parts of Kawasaki. ? Jibun Bank Corporation Jibun Bank was established with equity investments from KDDI Corporation and The Bank of Tokyo-Mitsubishi UFJ, Ltd., and commenced services in July 2008. As of April 2009, the number of customer accounts with Jibun Bank had reached 500,000. Dividend on Conclusion of Silent Partnership Agreement In October 2008, KDDI acquired real estate trust beneficiary rights from Central Tower Estate Co., a special purpose company (SPC). The trust beneficiary rights were set and transferred through the securitization of real estate conducted in September 2001. In connection with this acquisition, in December 2008 KDDI ended its agreement with a silent partner that operated the aforementioned SPC. With the liquidation of the agreement, KDDI received a dividend of 36.3 billion, which was treated as Other Income. Impairment Loss and Loss on Disposal of Property, Plant, and Equipment In FY 2009.3, KDDI posted an impairment loss of 68.0 billion, up 46.8 billion year on year. It also reported a 9.1 billion loss on disposal of property, plant, and equipment, up 1.6 billion year on year.
(FY 2009.3) ? 68.0 billion impairment loss (Impairment loss on facility used for current 800MHz band) The use of the facility for the above service will be discontinued from July 2012 due to reorganization of frequencies. Recognizing the downward trend in subscribers using handsets compatible with such equipment, KDDI set up a cash management system for cash flows generated by such equipment, and pooled those assets into an independent asset grouping. Due to the downtrend in equipment utilization accompanying the decline in compatible mobile handsets, the book value of those assets was written down to the amount deemed recoverable, resulting in a loss on asset impairment of 43.5 billion. (Impairment loss on HIKARI-one Home 100 facility) Recognizing the downward trend in subscribers to services using the aforementioned facility, KDDI set up a cash management system for cash flows generated by such equipment, enabling it to gain an understanding of the cash-flow situation, then pooled those assets into an independent asset grouping. Due to a decline in product appeal since the introduction of the gGiga Value Plan,h as well as the downtrend in subscribers, the book value of those assets were written down to the amount deemed recoverable, resulting in a loss on asset impairment of 18.5 billion. ? 9.1 billion loss on disposal of property, plant, and equipment The Company reported a 9.1 billion loss on disposal of property, plant, and equipment, related to the disposal of gHIKARI-one Home 100h equipment. (FY 2008.3) ? 21.2 billion impairment loss (Impairment loss on domestic network infrastructure and other idle assets) The book value of certain domestic transmission infrastructure and other underutilized assets was written down to the amount deemed recoverable, resulting in a loss on asset impairment of 18.7 billion. ? 7.5 billion loss on disposal of property, plant, and equipment This was a loss on disposal of property, plant, and equipment, as well as equipment removal costs, related to cessation of the Tu-Ka mobile phone service on March 31, 2008.
n Income Taxes and Tax Adjustments
Total income taxes, consisting of corporation, resident, and enterprise taxes, amounted to 200.9 billion, together with an income tax adjustment that resulted in deferred taxes of 30.6 billion, representing a 12.6 billion increase in total income taxes and tax adjustments year on year. This mainly reflected a 57.7 billion increase in corporation, resident, and enterprise taxes stemming from a rise in taxable income. By contrast, there was a 45.1 billion decline in income tax adjustment due to an increase in discrepancy amount temporarily out of scope of FY 2009.3 taxation associated with the impairment loss on property, plant, and equipment.
KDDI CORPORATION Annual Report 2009