Hitachi 2009 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2009 Hitachi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

20. OTHER INCOME AND OTHER DEDUCTIONS
The following items are included in other income or other deductions for the years ended March 31, 2009, 2008 and 2007.
Millions of yen
Thousands of
U.S. dollars
2009 2008 2007 2009
Net gain (loss) on securities . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(44,077) ¥ 80,129 ¥ 47,687 $(449,765)
Net loss on sale and disposal of rental assets
and other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,292) (8,246) (24,611) (217,265)
Exchange loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (37,259) (28,414) (3,029) (380,194)
Other income for the year ended March 31, 2009 represents a gain of ¥5,203 million ($53,092 thousand) on the sale of a
subsidiary’s mobile communication business.
The major components of net gain on securities for the year ended March 31, 2008 were related to sales of a part of shares
of Hitachi Displays, Ltd. and Hitachi-GE Nuclear Energy, Ltd. and of all shares of Hitachi Semiconductor Singapore Pte. Ltd.
Other income for the year ended March 31, 2008 also includes a realized gain of ¥21,040 million on a contribution of available-
for-sale securities to a pension fund trust.
21. SALES OF STOCK BY SUBSIDIARIES OR AFFILIATED COMPANIES
In April 2007, Hitachi Metals, Ltd., a subsidiary which manufactures and sells high-grade metal products, and NEOMAX Co.,
Ltd., a subsidiary which manufactures and sells magnets and ceramics, conducted a merger in which Hitachi Metals, Ltd.
was the surviving entity and NEOMAX Co., Ltd. was the acquired entity. Prior to the merger, Hitachi Metals, Ltd. opened its
tender offer to acquire common shares of NEOMAX Co., Ltd. for the period from November 7, 2006 to December 11, 2006
for ¥2,500 per share. In April 2007, Hitachi Metals, Ltd. allocated 2 of its shares to 1 share of NEOMAX Co., Ltd. to acquire
the shares of NEOMAX Co., Ltd. held by third parties in accordance with the terms and conditions of the tender offer. As a
result, Hitachi Metals, Ltd. issued 9,389,202 shares of common stock to the shareholders of NEOMAX Co., Ltd. Since all the
shares of Hitachi Metals, Ltd. were issued to third parties, the Company’s ownership interest of common stock decreased
from 56.6% to 55.1%. The Company did not recognize a deferred tax liability on this transaction.
In February 2007, Opnext, Inc., a subsidiary which designs and manufactures optical modules and components, issued
12,536,406 shares of common stock at $15 per share to third parties in an initial public offering and the Company sold a
portion of its investment in Opnext, Inc. As a result of the issuance of new shares and sale of the investment, the Company’s
ownership interest of common stock decreased from 67.3% to 43.9% at March 31, 2007 and the remaining investment is
accounted for using the equity method. The Company provided a deferred tax liability on this gain.
79
Hitachi, Ltd.
Annual Report 2009