Brother International 2009 Annual Report Download - page 30

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Inventories
Inventories at March 31, 2009 and 2008 consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Merchandise and Finished products ¥ 56,491 ¥ 59,744 $ 576,439
Work in process 2,603 2,223 26,561
Raw materials and supplies 12,897 12,646 131,602
Total ¥ 71,991 ¥ 74,613 $ 734,602
5. Long-lived Assets
The Company and domestic consolidated subsidiaries reviewed their long-term assets for impairment. For the years ended March 31,
2009 and 2008, the Company and domestic consolidated subsidiaries recorded impairment loss of ¥2,535 million ($25,867 thousand)
and ¥28 million, respectively, as other expense for goodwill due to decline in value, and leased land and idle assets due to decline in
market prices. The carrying amounts of these assets were written down to the recoverable amount. The recoverable amount of
leased land and idle assets was measured at the net selling price at disposition. The recoverable amount of goodwill was measured at
its value in use and the discount rate used for computation of present value of future cash flow was 3.6%.
6. Short-term Borrowings and Long-term Debt
Short-term borrowings at March 31, 2009 and 2008 consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Loans principally from banks with weighted average
interest rates of 1.28%
(3.53% in 2008) ¥ 9,858 ¥ 12,618 $ 100,592
Long-term debt at March 31, 2009 and 2008 consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Fourth 1.52% mortgage bonds due 2008 *2 — ¥ 350 —
Fourth unsecured 1.68% domestic bonds due 2012 *1 ¥ 15,000 15,000 $ 153,061
Fifth unsecured 1.97% domestic bonds due 2011 *2 500 500 5,102
Loans principally from banks, due serially to 2011 with interest rates ranging from
1.26% to 2.24% (from 1.39% to 2.24% in 2008):
Unsecured 5,044 5,132 51,470
Lease obligations 9—91
Total 20,553 20,982 209,724
Less: Current portion (49) (438) (500)
Long-term debt, less current portion ¥ 20,504 ¥ 20,544 $ 209,224
*1 : Issued by the Company
*2 : Issued by Brother Real Estate, Ltd.
Brother Industries, Ltd. and Consolidated Subsidiaries
For the Years ended March 31, 2009 and 2008
28 Brother Annual Report 2009