Konica Minolta 2010 Annual Report Download - page 45

(2) Fixed assets have been written down to the recoverable amount
and the correlating impairment losses have been recognized due to
worsening market conditions for plates in the Medical and Graphic
business, restructuring of microlens manufacturing facilities in the
Optics business, etc. In addition, the decline in real estate value and
the poor performance and profitability of rental and idle assets have
contributed to the write down.
(3) Details of impairment of fixed assets
Amount
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Buildings and structures ¥1,040 ¥ – $11,178
Machinery and equipment 817 648 8,781
Land 407 –4,374
Others 296 520 3,181
(4) Measuring recoverable amount
The recoverable amount of a cash-generating unit is the fair value
less costs to sell. The fair value is supported by an appraisal report
for land and buildings and structures, or a management estimate for
rental business-use assets.
15. DISCONTINUED OPERATIONS
The amounts included in the statements of income for discontinued
operations for the years ended March 31, 2010 and 2009 represent:
Amount
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Reversal of excess reserve made
for discontinued operations
in the previous fiscal year ¥1,327 ¥1,412 $ 14,263
Loss on discontinued operations
in the fiscal year under review (301) (480) (3,235)
Gain on discontinued operations ¥1,025 ¥ 932 $ 11,017
16. PATENT-RELATED INCOME
Patent-related income consists of patent royalties related to the Photo
Imaging business.
17. COST OF SALES
The Companies have recognized valuation losses associated with
the write down of inventory of ¥2,081 million ($22,357 thousand) and
¥6,302 million for the years ended March 31, 2010 and 2009, respec-
tively, due to decline of profitability. Those losses are included within the
cost of sales.
18. BUSINESS STRUCTURE IMPROVEMENT
EXPENSES
The business structure improvement expenses consist mainly of retire-
ment allowances, etc., associated with staff allocation/optimization in the
Business Technologies business, with expenses on business reorganiza-
tion in the Medical and Graphic Imaging business, and with expenses on
the reorganization of manufacturing facilities in the Optics business.
19. EXTRAORDINARY GAINS OF OVERSEAS
SUBSIDIARIES
Extraordinary gains of overseas subsidiaries represent the reduction
in refund obligation, etc., in accordance with U.S. state laws for the
U.S. subsidiary.
20. PENSION LIABILITIES ADJUSTMENT OF
OVERSEAS SUBSIDIARIES
The pension liabilities adjustment of overseas subsidiaries results from
the accounting treatment of retirement benefits that affect certain
consolidated subsidiaries in the United States.
21. LEASE TRANSACTIONS
Proforma information on the Company and its domestic consolidated
subsidiaries’ finance lease transactions (except for those which are
deemed to transfer the ownership of the leased assets to the lessee)
and operating lease transactions is as follows:
As Lessee
1) Finance Leases (not involving transfer of ownership commencing
on or before March 31, 2008)
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Purchase cost:
Buildings and structures ¥ 7,418 ¥ 7,459 $ 79,729
Machinery and equipment 2,180 2,268 23,431
Tools and furniture 2,755 4,622 29,611
Rental business-use assets 408 1,227 4,385
Intangible fixed assets 53 63 570
12,816 15,641 137,747
Less: Accumulated depreciation (10,691) (11,853) (114,908)
Loss on impairment of
leased assets (11) (200) (118)
Net book value ¥ 2,113 ¥ 3,587 $ 22,711
The scheduled maturities of future lease rental payments on such
lease contracts at March 31, 2010 and 2009 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Due within one year ¥ 801 ¥1,650 $ 8,609
Due over one year 1,323 2,136 14,220
Total ¥2,125 ¥3,787 $22,840
Lease rental expenses and depreciation equivalents under the
finance leases which are accounted for in the same manner as operat-
ing leases for the years ended March 31, 2010 and 2009 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Lease rental expenses for the period ¥1,467 ¥2,393 $15,767
Depreciation equivalents 1,277 2,373 13,725
Depreciation equivalents are calculated based on the straight-line
method over the lease terms of the leased assets.
Accumulated loss on impairment of leased assets as of March 31,
2010 and 2009 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Reserve for loss ¥11 ¥200 $118
KONICA MINOLTA HOLDINGS, INC. ANNUAL REPORT 2010 43