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62 SHARP CORPORATION
These restructuring charges for the year ended March 31, 2011
are mainly related to the reorganization of LCD plants, including
depreciation and maintenance charges of plants that have been
suspended due to production line changes to meet the increas-
ing demand for high value-added products.
These restructuring charges for the year ended March 31,
2012 are related to the LCD business restructuring, etc. Those
mainly comprise depreciation and maintenance charges of
¥37,717 million concerning plants that were suspended in the
Company and its consolidated subsidiary, Sharp Display Prod-
ucts Corporation to improve production to meet the increasing
demand for high value-added products, and costs of ¥68,125
million incurred to reinforce business foundations (inventory
write-down, etc.) in preparation for promoting establishment of
strategic vertical integration of the large-size LCD business.
These restructuring charges for the year ended March 31,
2013 are as follows:
(a) This concerns LCD business and comprises costs of ¥12,056
million ($129,634 thousand) incurred for maintenance of in-
active fixed assets caused in the Company and its consolidated
subsidiary, Sharp Display Products Corporation (its corporate
name was changed to Sakai Display Products Corporation on
July 17, 2012), along with improving production to meet the
increasing demand for high value-added products.
(b) This mainly concerns reduction of production of the Com-
pany’s Large-size LCD panels and comprises the loss on valu-
ation of inventories of ¥53,468 million ($574,925 thousand).
(c) This mainly concerns a structural switch of Solar Cells busi-
ness and comprises costs of ¥31,526 million ($338,989 thou-
sand) incurred to impairment loss on fixed assets.
The Company and its consolidated subsidiaries categorizes
assets for business use in view of business facility, type of busi-
ness and others in a comprehensive manner. Idle assets are
categorized by each asset.
The Company and its consolidated subsidiaries reduced
the book value of idle and unused-in-the-future production
equipment of thin-film solar cells to an estimated recoverable
amount, and recognized the decreased amount of ¥31,526
million ($338,989 thousand) as a restructuring charge includ-
ed in other expenses.
Details are as follows: ¥17,568 million ($188,903 thou-
sand), for buildings and structures; ¥4,963 million ($53,366
thousand), for machinery, equipment and vehicles; ¥4,007
million ($43,086 thousand), for lease assets; ¥2,247 million
($24,161 thousand), for long-term prepaid expenses; ¥2,741
million ($29,473 thousand), for other.
(d) This comprises the loss on cancellation of lease contracts,
etc. by structural switch of Solar Cells business of ¥14,249
million ($153,215 thousand).
(e) This comprises the costs of restructuring of consolidated
subsidiaries of ¥6,602 million ($70,989 thousand).
(f) This comprises the costs of the voluntary retirement pro-
gram for employees of the Company and its domestic consoli-
dated subsidiaries of ¥25,496 million ($274,151 thousand).
16. Restructuring Charges
Change of reportable segment
The Company Group’s reportable segments were Consumer/In-
formation Products and Electronic Components in the year end-
ed March 31, 2013. Due to a reform of the organization on April
1, 2013, the Consumer/Information Products segment has been
changed to the Product Business segment and the Electronic
Components segment has been changed to the Device Business
segment in the year ending March 31, 2014. The Solar Cells
business which had been included in the Electronic Components
segment has been included in the Product Business segment.
17. Significant Subsequent Events
Financial Section