KYOTO, Japan, April 24, 2012 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ) (the "Company") today announced that it has recorded extraordinary income in its financial results on a non-consolidated basis for the fourth quarter of the financial year ended on March 31, 2012, as described below.
(1) Details of Extraordinary Income
The Company previously filed a bilateral advance pricing arrangement ("APA") request with the relevant tax authorities of Japan and Thailand with respect to the transfer pricing method applied to transactions between the Company and Nidec Electronics (Thailand) Co., Ltd., a consolidated subsidiary of the Company ("NET").
In March 2012, the Company decided to accept the transfer pricing method provisionally agreed to between these tax authorities and notified them of its decision.
Pursuant to this method, a transfer pricing adjustment of THB9,392 million was made in the fiscal year ended March 31, 2012, based on the amount to be paid by NET to the Company. As a result, the Company recognized JPY25,077 million of extraordinary income for the same fiscal year.
The APA is expected to be finalized in a formal agreement between the tax authorities once their respective domestic approval procedures are completed.
(2) Impact on Consolidated Financial Results
The transfer pricing adjustment had no material impact on the Company's consolidated financial results for the fiscal year ended March 31, 2012, as the adjustment related to transactions within the Company's consolidated group.
The additional provision for income taxes arising in connection with the transfer pricing adjustment on a consolidated basis was accrued as the unrecognized tax benefit pursuant to FASB Accounting Standards Codification™ (ASC) 740 (Income Taxes) under U.S. GAAP.
Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the Company's current expectations, estimates, intent and plans. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors, including, but not limited to, changes in government regulations and policies as well as general economic, business and market conditions. The Company assumes no obligation to, and does not currently intend to, update these forward-looking statements, except as required by law.
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