Konica Minolta 2012 Annual Report Download - page 37

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11. CONTINGENT LIABILITIES
The Companies were contingently liable at March 31, 2012 for loan and
lease guarantees of ¥652 million ($7,933 thousand) and at March 31,
2011 for loan and lease guarantees of ¥770 million.
12. COLLATERAL ASSETS
Assets pledged as collateral at March 31, 2012 for short-term debt of
¥54 million ($657 thousand) are accounts receivable–trade and lease
investment assets of ¥54 million ($657 thousand). Assets pledged as
collateral at March 31, 2011 for short-term debt of ¥82 million, are notes
receivable of ¥47 million.
13. COST OF SALES
The Companies have recognized valuation losses associated with the
writing down of inventories of ¥1,511 million ($18,384 thousand) and
¥1,888 million for the years ended March 31, 2012 and 2011,
respectively, due to decline in profi tability. These losses are included
within the cost of sales.
14. RESEARCH AND DEVELOPMENT COSTS
Research and development costs included in selling, general and
administrative expenses for the years ended March 31, 2012 and 2011
are ¥72,530 million ($882,467 thousand) and ¥72,617 million,
respectively.
15. GAIN ON REVERSAL OF FOREIGN CURRENCY
TRANSLATION ADJUSTMENT
The gain on reversal of foreign currency translation adjustment resulted
from the liquidation of a U.S. subsidiary.
16. OTHER EXTRAORDINARY GAIN OF OVERSEAS
SUBSIDIARIES
Other extraordinary gain of overseas subsidiaries represents the
reduction in refund obligation, etc. in accordance with U.S. state laws
for the U.S. subsidiary.
17. LOSS ON IMPAIRMENT OF FIXED ASSETS
The Companies have recognized loss on impairment of ¥893 million
($10,865 thousand) and ¥1,027 million for the following groups of assets
for the years ended March 31, 2012 and 2011, respectively:
Amount
Millions of yen
Thousands of
U.S. dollars
Description Classifi cation 2012 2011 2012
Manufacturing
equipment of
micro-camera units
for mobile phones
Machinery and
equipment, Tools
and furniture,
Others
¥ — ¥ 514 $ —
Rental assets Rental
business-use
assets
88 24 1,071
Idle assets Buildings and
structures,
Machinery and
equipment,
Others
614 488 7,470
Others Investments and
other assets,
Others
190 —2,312
Total ¥893 ¥1,027 $10,865
(1) Cash-generating units have been identifi ed based on product lines
and geographical areas as a group of assets. For rental assets, cash-
generating units are identifi ed based on rental contracts and each
geographical area. Each idle asset is also identifi ed as a
cash-generating unit.
(2) Fixed assets have been written down to the recoverable amount and
corresponding impairment losses have been recognized due to the
poor performance and profi tability of rental and idle assets. In
addition, the revaluation of the other assets category has contributed
to the write down amount.
(3) Details of impairment of fi xed assets
Amount
Millions of yen
Thousands of
U.S. dollars
2012 2011 2012
Buildings and structures ....... ¥254 ¥ — $3,090
Machinery and equipment .... 346 897 4,210
Rental business-use assets .. 88 —1,071
Others ............................... 203 130 2,470
(4) Measurement of 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.
18. BUSINESS STRUCTURE IMPROVEMENT EXPENSES
Business structure improvement expenses comprise expenses incurred
on retirement allowances, etc. associated with staff allocation/
optimization in the Business Technologies business.
19. OTHER COMPREHENSIVE INCOME
Recycling and Tax Effect Relating to Other Comprehensive Income
Amounts reclassifi ed to net income (loss) in the current period that were
recognized in other comprehensive income in the current or previous
periods and tax effects for each component of other comprehensive
income are as follows:
Millions of yen
Thousands of
U.S. dollars
2012 2012
Unrealized gains (losses) on securities
Increase (decrease) during the year ....... ¥ (247) $ (3,005)
Reclassifi cation adjustments ................ 1,104 13,432
Sub-total, before tax ........................... 856 10,415
Tax (expense) or benefi t ....................... (140) (1,703)
Sub-total, net of tax ............................ 716 8,712
Unrealized losses on hedging derivatives
Increase (decrease) during the year ....... 161 1,959
Reclassifi cation adjustments ................ (369) (4,490)
Sub-total, before tax ........................... (207) (2,519)
Tax (expense) or benefi t ....................... 74 900
Sub-total, net of tax ............................ (133) (1,618)
Foreign currency translation adjustments
Increase (decrease) during the year ....... (2,381) (28,969)
Reclassifi cation adjustments ................ (3,730) (45,383)
Sub-total ........................................... (6,112) (74,364)
Share of other comprehensive income of
associates accounted for using equity method
Increase (decrease) during the year ....... (12) (146)
Total other comprehensive income.......... ¥(5,541) $(67,417)