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64 Seiko Epson Corporation
3. U.S. dollar amounts
U.S. dollar amounts presented in the accompanying consolidated financial statements and in these notes are
included solely for the convenience of readers and are not audited. These translations should not be construed as
representations that the yen amounts actually represent, or have been or could be converted into U.S. dollars at
that or any other rate. As the amounts shown in U.S. dollars are for convenience only, a rate of ¥118.05 = U.S.$1,
the rate of exchange prevailing at March 31, 2007, has been used.
4. Acquisitions
(1) Business combination with Sanyo Electric Co., Ltd.
On October 1, 2004, the Company and Sanyo Electric Co., Ltd. (“Sanyo”), including its subsidiaries Tottori Sanyo
Electric Co., Ltd. and Sanyo LCD Engineering Co., Ltd. transferred their liquid crystal businesses to a joint venture
company, Sanyo Epson Imaging Devices Corporation (“Sanyo Epson”), which has been renamed Epson Imaging
Devices Corporation. The paid-in capital of Sanyo Epson was ¥15,000 million and it was owned 55% and 45% by
the Company and by Sanyo, respectively, after the transfer. Sanyo Epson has been a consolidated subsidiary of the
Company.
Epson transferred its D-TFD LCD and STN LCD businesses and Sanyo and its subsidiaries (“Sanyo Group”)
transferred its LTPS-TFT LCD and Amorphous-silicon TFT LCD businesses. The HTPS-TFT LCD business and
Organic Light-Emitting displays operations of Epson and Organic Light-Emitting displays business of the Sanyo
Group were not transferred to Sanyo Epson.
Upon acquisition, net cash proceeds of ¥140 million represented cash and cash equivalents of ¥340 million
held by the Sanyo Group at the date of the integration, which were offset by the cash consideration of ¥200 million
for the integration. Net cash proceeds from acquisition of ¥140 million was included in cash flows from investing
activities in the consolidated statements of cash flows for the year ended March 31, 2005.
The composition of the assets acquired and liabilities assumed from the Sanyo Group in the year ended March
31, 2005 was as follows:
Millions of yen
Year ended
March 31,
2005
Current assets ¥17,004
Fixed assets 40,930
Short-term borrowings (10,365)
Current portion of long-term debt (5,022)
Current liabilities (1,618)
Long-term debt (16,040)
Long-term liabilities (2,759)
Consolidation adjustment 5,115
Minority interest in subsidiaries (27,045)
Consideration for acquisition ¥200
(2) Business combination with Toyo Communication Equipment Co., Ltd.
On October 1, 2005, the Company and Toyo Communication Equipment Co., Ltd. (“Toyo”) combined their respec-
tive quartz device businesses and commenced operations as the succeeding company, Epson Toyocom Corpora-
tion (“Epson Toyocom”). Under the business merger agreement and corporate split agreement, the Company
split-off its quartz device business (excluding optical devices) and transferred it to Epson Toyocom.