Casio 2011 Annual Report Download - page 44

42 CASIO COMPUTER CO., LTD.
17. Business Structure Improvement Expenses and Impairment Loss
(1) Business structure improvement expenses
For 2010:
The expected amount of the said losses was posted in the provision for business structure improvement to provide against the
accrual of losses following the subsidiary merger resulting from the business integration of its mobile terminal business.
(2) Impairment loss
For 2011:
The Company and its consolidated subsidiaries have posted impairment loss. Details are as follows:
Use Type of assets Location
Business assets used in the other
businesses of some Group companies
Land, buildings and structures, machinery and
equipment, tools, furniture and fixtures, lease assets
Chuo City and Fuefuki City,
Yamanashi Pref.
Idle assets Land, buildings and structures Fujinomiya City and Fuji City,
Shizuoka Pref.
With respect to business assets, the Company and its consolidated subsidiaries carry out asset grouping principally according to its
management accounting categories, which are employed to enable continuous monitoring of the Group’s earnings situation. Idle
assets are managed on an individual basis. The Company and its subsidiaries have applied impairment accounting to business assets
whose values are deemed to have significantly declined due to deteriorating business environment and idle assets to make optimal
use of these assets in the future.
Book value of these assets was reduced to recoverable amounts and the reduced amounts (¥646 million [$7,783 thousand])
were recognized as “impairment loss.”
The breakdown of the losses is: ¥314 million ($3,783 thousand) for land, ¥155 million ($1,867 thousand) for buildings and
structures, ¥90 million ($1,084 thousand) for machinery and equipment, and ¥87 million ($1,048 thousand) for others.
Recoverable amounts are estimated using net selling prices which are reasonably estimated. Recoverable amounts for land are
calculated based on real estate appraisal values or roadside land prices and using estimated disposal values for other assets.
18. Business Combination
For 2011:
Business divestiture
On April 1, 2010, through company split, Ortus Technology Co., Ltd., a wholly-owned subsidiary of the Company, took over the
Company’s small and medium-size display business, and Toppan Printing Co., Ltd. acquired 80% of the shares in Ortus Technology
Co., Ltd. from the Company on the same aforementioned date.
Summary of business divestiture
1) Name of the company to which the business in being divested
Toppan Printing Co., Ltd.
2) Details of the business divested
Small and medium-size display business
3) Reason for business divestiture
Seeking early commercialization of organic light-emitting diode (OLED) displays jointly developed by the Company and Toppan
Printing, the two companies decided that the collaboration would be the best for the small and medium-size display business.
4) Date of business divestiture
April 1, 2010
Summary of accounting procedures
1) Transfer of gain (loss)
Not applicable
2) Proper book-value of assets and liabilities employed in the business transferred:
Millions of Yen
Thousands of
U.S. Dollars
Current assets ............................................................................................................................. ¥6,145 $74,036
Noncurrent assets ....................................................................................................................... 1,154 13,904
Total assets ................................................................................................................................. ¥7,299 $87,940
Current liabilities ......................................................................................................................... ¥5,049 $60,832
Noncurrent liabilities ................................................................................................................... 1,001 12,060
Total liabilities ............................................................................................................................. ¥6,050 $72,892
Notes to Consolidated Financial Statements Years ended March 31, 2011 and 2010 Casio Computer Co., Ltd. and Subsidiaries