YAMAHA CORPORATION ANNUAL REPORT 2000

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CONSOLIDATED STATEMENTS OF CASH FLOWS YAMAHA CORPORATION and Consolidated Subsidiaries Year ended March 31, 2000 20 Millions of Yen Thousands of U.S. Dollars (Note 2) 2000 2000 Cash flows from operating activities: Loss before income taxes ...................................................................................................... Adjustments to reconcile income (loss) before income taxes to net cash provided by operating activities: ¥(47,601) $(448,431) Depreciation and amortization............................................................................................. 28,876 272,030 Allowance for doubtful accounts.......................................................................................... (1,010) (9,515) Provision for accrued employees’ retirement benefits, net..................................................... (19,322) (182,025) Interest and dividend income............................................................................................... (957) (9,016) Interest expense.................................................................................................................... 2,968 27,960 Equity in earnings of unconsolidated subsidiaries and affiliates ............................................ (4,209) (39,651) Gain on sale of investment securities.................................................................................... (9,091) (85,643) Gain on sale or disposal of properties, net ............................................................................ (1,820) (17,146) Loss on foreign exchange, net............................................................................................... Changes in operating assets and liabilities: 280 2,638 Decrease in accounts and notes receivable—trade ............................................................ 11,511 108,441 Decrease in inventories .................................................................................................... 9,811 92,426 Increase in accounts and notes payable—trade................................................................. 3,087 29,081 Increase in long-term accounts payable—other ................................................................ 42,448 399,887 Other, net............................................................................................................................ (2,470) (23,269) ........................................................................................................................................ 12,501 117,767 Interest and dividends received ............................................................................................ 959 9,034 Interest paid......................................................................................................................... (2,968) (27,960) Refundable income taxes, net of payment ............................................................................ 358 3,373 Net cash provided by operating activities ............................................................................. 10,851 102,223 Cash flows from investing activities: Purchases of investment securities ........................................................................................ (34,321) (323,325) Proceeds from sale of marketable securities .......................................................................... 3,733 35,167 Proceeds from sale of investment securities .......................................................................... 45,290 426,660 Purchases of properties......................................................................................................... (20,175) (190,061) Proceeds from sale of properties ........................................................................................... 17,137 161,441 Other, net............................................................................................................................ 811 7,640 Net cash provided by investing activities .............................................................................. 12,474 117,513 Cash flows from financing activities: Decrease in short-term loans, net ......................................................................................... (4,666) (43,957) Proceeds from long-term debt.............................................................................................. 2,382 22,440 Repayments of long-term debt............................................................................................. (5,033) (47,414) Cash dividends paid............................................................................................................. (206) (1,941) Other, net............................................................................................................................ 0 0 Net cash used in financing activities ..................................................................................... (7,522) (70,862) Effect of exchange rate changes on cash and cash equivalents ............................................. (1,467) (13,820) Net increase in cash and cash equivalents............................................................................. 14,335 135,045 Cash and cash equivalents at beginning of year.................................................................... Increase in cash and cash equivalents arising from inclusion of subsidiaries in 17,923 168,846 consolidation........................................................................................................................ 1,373 12,935 Cash and cash equivalents at end of year (Note 14).............................................................. ¥ 33,632 $ 316,835 See notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES YAMAHA CORPORATION and Consolidated Subsidiaries March 31, 2000 and 1999 (a) Basis of presentation YAMAHA CORPORATION (the “Company”) and its domestic subsidiaries maintain their accounting records and prepare their financial statements in accordance with accounting principles and practices generally accepted in Japan, and its foreign subsidiaries maintain their books of account in conformity with those of the countries of their domicile. The accompanying consolidated financial statements have been prepared from the financial statements filed with the Ministry of Finance as required by the Securities and Exchange Law of Japan. Accordingly, the accompanying consolidated financial statements may differ in certain significant aspects to present the consolidated financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan. For the purposes of this document, certain reclassifications have been made to present the accompanying consolidated financial statements in a format which is familiar to readers outside Japan. In March 1998, the Business Accounting Deliberation Council of Japan (the “BADC”) issued a new accounting standard for statements of cash flows, which became effective the year ended March 31, 2000. The Company and its consolidated subsidiaries adopted the new accounting standard for consolidation effective the year ended March 31, 2000, and the accompanying consolidated statements of cash flows for the year ended March 31, 2000 only has been prepared in accordance with this standard. As permitted, amounts of less than one million yen have been omitted. As a result, the totals shown in the accompanying consolidated financial statements (both in yen and U.S. dollars) do not necessarily agree with the sum of the individual amounts. (b) Basis of consolidation and accounting for investments in unconsolidated subsidiaries and affiliates In accordance with the revised accounting standards for consolidation issued by the BADC, effective April 1, 1999, consolidated financial statements are required to include the accounts of the parent company and all its subsidiaries over which substantial control is exerted through either majority ownership of voting stock and/or by other means. As a result, the accompanying consolidated financial statements include the accounts of the Company and 72 consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In addition, effective April 1, 1999, the scope of affiliates who should be accounted for by the equity method has been expanded to include companies (other than subsidiaries as defined above) whose decision-making control over their operations is significantly affected by the consolidated group in various ways even if they are owned by less than 20%. As a result, the investments in three affiliates have been accounted for by the equity method. Investments in unconsolidated subsidiaries and affiliates not accounted for by the equity method are carried at cost. Certain foreign subsidiaries are consolidated on the basis of fiscal periods ending December 31, which differ from that of the Company; however, the necessary adjustments are made when the effect of the difference is material. All assets and liabilities of the subsidiaries are revaluated at fair values on acquisition, if applicable, and the excess of cost over underlying net assets at the date of acquisition is amortized over a period of five years on a straight-line basis. (c) Foreign currency translations The revenue and expense accounts of its foreign consolidated subsidiaries are translated into yen at the rate of exchange in effect at the balance sheet date. The balance sheet accounts, except for the components of shareholders’ equity, are also translated into yen at the rate of exchange in effect at the balance sheet date. The components of shareholders’ equity are translated at historical exchange rates. Current monetary assets and liabilities of the Company and its domestic subsidiaries denominated in foreign currencies are translated at the current exchange rates in effect at each balance sheet date if not hedged by forward exchange contracts, or at the contracted rates of exchange when hedged by forward exchange contracts. Other assets and liabilities of the Company and its domestic subsidiaries denominated in foreign currencies are translated into yen at the historical rates of exchange in effect at the dates of the respective transactions. (d) Cash and cash equivalents All highly liquid investments, generally with a maturity of three months or less when purchased, which are readily convertible into known amounts of cash and so near maturity that they represent only an insignificant risk of any change in value attributable to changes in interest rates, are considered cash equivalents. The BADC issued a new accounting standard for statements of cash flows in March 1998. This standard became effective for fiscal years beginning on or after April 1, 1999. Accordingly, certain short-term investments in money trusts and other, which had previously been classified under “marketable securities,” are now considered cash equivalents. The reclassifications were not made to the consolidated balance sheets as of March 31, 1999 in order to conform the prior year’s presentation to the current year’s presentation. (e) Marketable securities, including those classified as investment securities Marketable securities are stated at cost or at the lower of cost or market, cost being determined by the average method. 21
Page 1 and 2: YAMAHA CORPORATION Annual Report Ye
Page 3 and 4: FINANCIAL HIGHLIGHTS Millions of Ye
Page 5 and 6: A MESSAGE FROM THE PRESIDENT consol
Page 7 and 8: AN INTERVIEW WITH THE PRESIDENT MUS
Page 9 and 10: The CVP-109 Clavinova ® features h
Page 11 and 12: REVIEW OF OPERATIONS Net Sales (Bil
Page 13 and 14: REVIEW OF OPERATIONS Net Sales (Bil
Page 15 and 16: FIVE-YEAR SUMMARY YAMAHA CORPORATIO
Page 17 and 18: MANAGEMENT’S DISCUSSION AND ANALY
Page 19 and 20: CONSOLIDATED BALANCE SHEETS 17 Thou
Page 21: CONSOLIDATED STATEMENTS OF SHAREHOL
Page 25 and 26: NOTES TO CONSOLIDATED FINANCIAL STA
Page 33 and 34: REPORT OF INDEPENDENT AUDITORS The
Page 35: CORPORATE DATA Board of Directors a

YAMAHA CORPORATION ANNUAL REPORT 2000

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