Konica Minolta 2006 Annual Report Download - page 47

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Description Classification Location Amount
Millions Thousands of
of yen U.S. dollars
¥ 4,353 $ 37,056
3,774 32,127
9,611 81,817
7,017 59,734
24,756 210,743
3,296 28,058
Rental assets 4,412 37,559
Idle assets 287 2,443
Total ¥32,752 $278,812
(1) Identifying the cash-generating unit to which asset belongs
Each cash-generating unit is identified by the product line
and the geographical area as group of assets. For rental
assets, cash-generating unit is identified by the rental con-
tact and the geographical area. The assets becoming idle
are also identified as cash-generating unit respectively.
(2) The events and circumstances that led to the recognition
of the impairment loss
Due to market circumstance deterioration and by decision
of exiting the Photo Imaging business operation, oper-
ating profitability of manufacturing and sales base of
photographic paper, film, etc. has worsened substantially.
Due to poor performance, profitability of other man-
ufacturing and sales base has worsened.
Due to the decline in real estate value and poor
performance, profitability of rental and idle assets has
worsened.
Therefore, the companies have decided to mark the
assets down to the recoverable value.
(3) Details of Impairment of fixed asset
Thousands of
Years ended March 31 Millions of yen U.S. dollars
Buildings and structures 13,464 114,616
Machinery and equipment 11,006 93,692
Tools and furniture 1,539 13,101
Lease asset 3,972 33,813
Others 2,769 23,572
(4) Measuring recoverable amount
The recoverable amount of a cash-generating unit is the
higher of its fair value less costs to sell and value in use.
Fair value less costs to sell is supported by the appraisal
report. The discount rate used for estimation of value in
use is 5.26% as weighted average cost of capital.
12. Loss on Discontinued Operations
The loss on discontinued operations was incurred in connec-
tion with the exit from the Photo Imaging business.
It includes the reserve for discontinued operations
(¥58,078 million), impairment loss on fixed assets of Photo
Imaging business (¥28,609 million) and the cost for disposal
of inventories (¥18,536 million), less the proceeds from the
sale of business (–¥8,599 million).
13. Lease Transactions
Information on the Companies’ finance lease transactions
(except for those which are deemed to transfer the owner-
ship of the leased assets to the lessee) and operating lease
transactions is as follows:
Lessee
1) Finance Leases
Thousands of
Millions of yen U.S. dollars
March 31 March 31
2006 2005 2006
Buildings and structures ¥10,598 ¥ 6,098 $ 90,219
Machinery, equipment
and other 15,110 9,725 128,629
Tools and furniture 13,230 19,111 112,624
Rental business-use assets 6,590 6,913 56,099
Intangible fixed assets 694 813 5,908
46,224 42,662 393,496
Less: Accumulated
depreciation (28,572) (27,538) (243,228)
Loss on impairment of
lease assets 3,972 —33,813
Net book value 13,679 15,124 121,563
Depreciation ¥ 9,175 ¥ 9,389 $ 78,105
Depreciation is calculated based on the straight-line
method over the lease terms of the leased assets.
The scheduled maturities of future lease rental payments
on such lease contracts at March 31, 2006 and 2005 are as
follows:
Thousands of
Millions of yen U.S. dollars
March 31 March 31
2006 2005 2006
Due within one year ¥ 5,949 ¥ 6,790 $ 50,643
Due over one year 11,701 8,333 99,608
Total 17,651 15,124 150,260
Lease rental expenses
for the year ¥10,045 ¥ 9,389 $ 85,511
Accrued impairment loss ¥3,102 —$26,407
Manufacturing
and sales of
photographic
paper, Film,
etc.
Hino-shi,
Tokyo-to
Odawara-shi,
Kanagawa-ken
North Carolina,
U.S.A.
Other manu-
facturing and
sales base,
20 locations
Subtotal
New York,
U.S.A. etc,
2 locations
Sakai-shi,
Osaka-fu etc,
10 locations
Kanazawa-shi,
Ishikawa-ken
etc,
13 locations
Buildings and
structures,
Machinery
and equip-
ment,
Tools and
furniture,
Others
Land,
Buildings and
structures
Land,
Buildings and
structures
Manufacturing
and sales
except above
Land,
Buildings and
structures,
Others