Epson 2010 Annual Report Download - page 74

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73
24. Other
The Company and related subsidiaries are subject to allegations concerning a TFT-LCD price-fixing cartel, and
received from competition authorities in the United States and elsewhere instructions and notices to submit
relevant materials. In August 2009, Epson Imaging Devices Corporation, a consolidated subsidiary of the
Company, concluded a plea agreement by which it paid a fine of U.S.$26 million to the United States
Department of Justice, and criminal procedures were completed in October 2009. Related civil lawsuits have
been brought before courts in United States and elsewhere by clients and others.
25. Subsequent events
Significant business transfer
As of April 1, 2010, Epson Imaging Devices Corporation (“Epson Imaging”), a consolidated subsidiary of the
Company, transferred a part of its business and some assets in the field of small- and medium-sized liquid crystal
displays (“LCDs”) to Sony Corporation (“Sony”) and Sony Mobile Display Corporation (“SMD”). In a changing
market environment, Epson had found it difficult to distinguish its small- and medium-sized display business
from the competition, and judged that transferring the aforementioned business to the Sony Group was the most
appropriate way of optimizing its liquid crystal technologies and amorphous silicon TFT production capability.
Details of transfer
Date of transfer: April 1, 2010
Gain on business transfer: ¥598 million ($6,427 thousand)
Carrying amounts of assets and liabilities transferred:
Thousands of
Millions of yen
U.S. dollars
March 31, 2010
Current assets ¥3,605 $38,757
Noncurrent assets 145 1,558
Total ¥3,751 $40,315
Current liabilities ¥231 $2,493
Noncurrent liabilities 54 580
Total ¥286 $3,073
The business transferred was included in the electronic devices segment. Some Epson employees have been
temporarily seconded to SMD.