Epson 2010 Annual Report Download - page 62

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61
assets that Epson plans to sell and idle assets is reduced to its recoverable amount when their net selling prices
are substantially lower than their carrying values.
For the year ended March 31, 2009, Epson incurred an impairment loss on its liquid crystal display production
equipment, semiconductor production equipment, production equipment planned for consolidation and idle
assets. The carrying value of these assets was reduced to its recoverable amount. A reduction in value of ¥73,839
million was recognized in the impairment loss account and the other account. The reduction mainly comprised
¥31,744 million for buildings and structures, ¥24,809 million for machinery, equipment and vehicles, ¥4,645
million for tools, furniture and fixtures, ¥6,235 million for land, ¥3,930 million for intangible assets. The
recoverable amounts are determined using their net selling prices and value in use, which were assessed on the
basis of reasonable estimates. The values in use were calculated by applying a 6.1% discount rate to the assets’
expected future cash flows.
For the year ended March 31, 2010, Epson incurred an impairment loss on its liquid crystal display production
equipment, production equipment planned for consolidation and idle assets. The carrying value of these assets
was reduced to its recoverable amount. A reduction in value of ¥7,269 million ($78,127 thousand) was
recognized in the impairment loss account. The reduction mainly comprised ¥1,074 million ($11,543 thousand)
for buildings and structures, ¥3,203 million ($34,426 thousand) for machinery, equipment and vehicles, ¥2,669
million ($28,686 thousand) for tools, furniture and fixtures. The recoverable amounts are determined using their
net selling price, which were assessed on the basis of reasonable estimates.
17. Leases
As of March 31, 2009 and 2010, capital leases, mainly comprised of plants, production equipment in the
electronic devices segment, host computers and computer terminals.
Future lease payments for non-cancelable operating leases as a lessee at March 31, 2009 and 2010, were as
follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31,
Future lease payments 2009 2010 2010
Due within one year ¥4,216 ¥2,810 $30,202
Due after one year 9,068 8,872 95,356
Total
¥13,285 ¥11,682 $125,558