Epson 2013 Annual Report Download - page 71

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70
17. Loss on litigation
Loss on litigation for the year ended March 31, 2012 and 2013, comprised the settlement of the lawsuits
concerning the allegations of a LCD price-fixing cartel.
18. Impairment losses
Epson’s business assets are generally grouped by business segment under the Company’s management
accounting system, and their cash flows are continuously monitored. Assets planned to be sold and idle
assets are separately assessed for impairment on the individual asset level. Impairment tests were
performed for both types of assets. The net book value of a business asset was reduced to its recoverable
amount when there was substantial deterioration in the asset’s future earning potential due to adverse
changes in the marketplace resulting in lower product prices or due to change in utilization plan. The
carrying value of assets planned to be sold 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, 2013, Epson incurred impairment losses on its idle assets. The carrying value
of these assets was reduced to its recoverable amount. A reduction in value of ¥4,605 million ($48,963
thousand) was recognized in impairment losses account. The reduction mainly comprised ¥1,165 million
($12,387 thousand) for buildings and structures, and ¥2,821 million ($29,994 thousand) for land. The
recoverable amounts are determined using their net selling prices, which were assessed on the basis of
reasonable estimates.
19. Leases
As of March 31, 2013, capital leases, mainly comprised of uninterruptible power supply, host computers
and computer terminals.
Future lease payments for non-cancelable operating leases as a lessee at March 31, 2012 and 2013, were as
follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31,
Future lease payments 2012 2013 2013
Due within one year ¥2,135 ¥2,307 $24,529
Due after one year 6,990 7,575 80,553
Total
¥9,126 ¥9,883 $105,082