Investments in Affiliated Companies

12 Months Ended

Mar. 31, 2011

Investments in Affiliated Companies [Abstract]

INVESTMENTS IN AFFILIATED COMPANIES

6. INVESTMENTS IN AFFILIATED COMPANIES

Investments are accounted for using the equity method of accounting if the investment provides the Companies the ability to exercise significant influence, but not control, over an investee. Significant influence is generally deemed to exist if the Companies have an ownership interest in the voting stock of the investee of between 20% to 50%, although other factors are considered in determining whether the equity method of accounting is appropriate. The Companies record investments in equity method investees meeting these characteristics as “Investments in affiliated companies.” Under the equity method, the Companies record their proportionate share of an affiliated companies’ income or loss based on the most recently available financial statements.

The Companies’ investments in affiliated companies and percentage of ownership as of March 31, 2011 and 2010 include, among others, the following companies:

	Percentage of Ownership (%)
Name of Investee	2011		2010
Thai Wacoal Public Company Limited		34		34
Shinyoung Wacoal Inc.		25		25
Indonesia Wacoal Co., Ltd.		42		42
Taiwan Wacoal Co., Ltd.		50		50
House of Rose Co., Ltd.		20		20

Aggregate values of carrying amounts and fair values of investments in affiliated companies which have quoted market price as of March 31, 2011 and 2010 were as follows:

					Thousands of
	Millions of Yen				U.S. Dollars
	2011		2010		2011
Carrying amount	¥	8,766	¥	8,814	$	105,921
Aggregate value of quoted market price		7,735		7,768		93,463

The following tables represent the affiliated companies’ summarized information from the balance sheets as of March 31, 2011 and 2010, and statements of operations for the years ended March 31, 2011, 2010 and 2009.

					Thousands of
	Millions of Yen				U.S. Dollars
	2011		2010		2011
Current assets	¥	31,148	¥	30,303	$	376,366
Noncurrent assets		28,646		29,221		346,133
Total	¥	59,794	¥	59,524	$	722,499
Current liabilities	¥	7,569	¥	7,165	$	91,457
Long-term liabilities		6,373		6,143		77,006
Equity		45,852		46,216		554,036
Total	¥	59,794	¥	59,524	$	722,499

							Thousands of
	Millions of Yen						U.S. Dollars
	2011		2010		2009		2011
Net sales	¥	50,833	¥	49,130	¥	57,488	$	614,222
Gross profit		27,196		25,948		30,388		328,613
Income before income taxes		3,947		3,730		3,630		47,692
Net income		3,039		2,777		2,832		36,721

Dividends received from the affiliated companies were ¥424 million ($5,123 thousand), ¥415 million and ¥597 million during the years ended March 31, 2011, 2010 and 2009, respectively.

Retained earnings include net undistributed earnings of affiliated companies in the amount of ¥14,910 million ($180,159 thousand) and ¥14,369 million as of March 31, 2011 and 2010, respectively.