Annual Report 2009 - Daiichi Sankyo

As described in note 2 to the consolidated financial statements, effective from the fiscal year ended March 31, 2008, the
Company and its domestic consolidated subsidiaries have changed the method of depreciation for all tangible fixed assets
acquired on or after April 1, 2007 prescribed in the amendments of the Japanese Corporation Tax Law, the Law to Amend Part
of the Income Tax Law (Cabinet Order No. 83, March 30, 2007). As a result, as compared with the previous accounting
method, operating expenses in the “Japan” segment increased by ¥1,351 million and operating income decreased by the same
amount.
In accordance with the amendment, also, the Company and its domestic subsidiaries have started to depreciate the difference
between 5% of the acquisition costs and memorandum prices for all tangible fixed assets acquired on or before March 31,
2007 by equal amounts over five years, starting in the year after the fiscal year in which accumulated depreciation based on the
pre-revision method reached 95% of the acquisition costs. As a result, as compared with the previous accounting method,
operating expenses in the “Japan” segment increased by ¥1,589 million and operating income decreased by the same amount.
As described in note 2 to the consolidated financial statements, effective from the fiscal year ended March 31, 2008, the
Company and certain domestic consolidated subsidiaries have revised the retirement benefit and pension plans, and prior service
cost has been amortized over 12 months since it was incurred. Also, actuarial gains and losses have been amortized by a
straight-line method over 10 years. As a result, as compared with the previous accounting method, operating expenses in the
“Japan” segment decreased by ¥12,669 million and operating income increased by the same amount.
(3) Overseas Sales
Overseas net sales are the Companies’ sales which were consummated in countries or regions outside of Japan.
The Companies’ overseas business activities consist mainly of those in North America and Europe. “Other” includes mainly
Asia. A summary of overseas net sales by the Companies for the years ended March 31, 2009, 2008, and 2007 was as follows:
Millions of yen
2009
North
America Europe Other Total
Overseas net sales ¥221,325 ¥98,170 ¥53,759 ¥373,254
Consolidated net sales 842,147
Ratio of overseas net sales on a consolidated basis 26.3% 11.6% 6.4% 44.3%
Millions of yen
2008
North
America Europe Other Total
Overseas net sales ¥219,939 ¥98,455 ¥40,245 ¥358,639
Consolidated net sales 880,120
Ratio of overseas net sales on a consolidated basis 25.0% 11.2% 4.6% 40.8%
Millions of yen
2007
North
America Europe Other Total
Overseas net sales ¥241,850 ¥84,328 ¥30,523 ¥356,701
Consolidated net sales 929,507
Ratio of overseas net sales on a consolidated basis 26.0% 9.1% 3.3% 38.4%
Thousands of U.S. dollars
2009
North
America Europe Other Total
Overseas net sales $2,258,418 $1,001,735 $548,561 $3,808,714
Consolidated net sales 8,593,337
68
Daiichi Sankyo Co., Ltd. Annual Report 2009