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98 Hitachi, Ltd. Annual Report 2010
The Company and certain subsidiaries provided special termination benefits to those employees voluntarily leaving the
companies, and certain subsidiaries provided one-time termination benefits due to the subsidiaries’ liquidations. The accrued
special termination benefits were recognized at the time voluntary termination was offered and benefits were accepted by the
employees. The accrued one-time termination benefits were recognized at the time the subsidiaries communicated the plan
to their employees. An analysis of the accrued special and one-time termination benefits for the years ended March 31, 2010,
2009 and 2008 is as follows:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2008 2010
Balance at beginning of the year . . . . . . . . . . . . . . . . . . . . . . . . ¥ 7,543 ¥ 8,952 ¥ 44 $ 81,107
New charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,191 21,517 15,676 260,118
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,548) (22,449 ) (6,348) (253,204)
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . (16) (477) (420) (172)
Balance at end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 8,170 ¥ 7,543 ¥ 8,952 $ 87,849
The following represents the significant restructuring activities for the year ended March 31, 2010 by reportable segment:
1. The Automotive Systems segment restructured in order to reorganize the automotive products business, which has
encountered severe deterioration in the market. The accrued special termination benefits expensed and paid during the
year ended March 31, 2010 amounted to ¥7,731 million ($83,129 thousand). Total restructuring charges during the year
ended March 31, 2010 consisted only of special termination benefits.
2. The High Functional Materials & Components segment restructured in order to reorganize its high-grade metal products
and materials business to reduce costs and improve profitability. The accrued special termination benefits expensed during
the year ended March 31, 2010 amounted to ¥4,010 million ($43,118 thousand). The liabilities for special termination
benefits amounting to ¥787 million ($8,462 thousand) as of March 31, 2010 will be paid by March 31, 2011. Total
restructuring charges during the year ended March 31, 2010 amounted to ¥4,426 million ($47,591 thousand).
3. The Components & Devices segment restructured in order to reorganize the liquid crystal display business, which includes
several subsidiaries’ liquidations. The accrued special and one-time termination benefits expensed during the year ended
March 31, 2010 amounted to ¥4,144 million ($44,559 thousand). The liabilities for special and one-time termination benefits
amounting to ¥3,054 million ($32,839 thousand) as of March 31, 2010 will be paid by March 31, 2011. Total restructuring
charges during the year ended March 31, 2010 amounted to ¥4,182 million ($44,968 thousand).
The following represents the significant restructuring activities for the year ended March 31, 2009 by reportable segment:
1. The Automotive Systems segment restructured in order to reorganize the automotive products business, which encountered
severe deterioration in the market. The accrued special termination benefits expensed during the year ended March 31,
2009 amounted to ¥5,717 million. The liabilities for special termination benefits amounting to ¥3,164 million as of March
31, 2009 were paid by March 31, 2010. Total restructuring charges during the year ended March 31, 2009 consisted only
of special termination benefits.
2. The High Functional Materials & Components segment restructured in order to reorganize its high-grade metal products
and materials business to reduce costs and improve profitability. The accrued special termination benefits expensed during
the year ended March 31, 2009 amounted to ¥4,069 million. The liabilities for special termination benefits amounting to
¥1,050 million as of March 31, 2009 were paid by March 31, 2010. Total restructuring charges during the year ended
March 31, 2009 amounted to ¥4,252 million.
3. The Components & Devices segment restructured mainly in order to strengthen its storage business on a global basis.
The accrued special termination benefits expensed during the year ended March 31, 2009 amounted to ¥2,230 million.
The liabilities for special termination benefits amounting to ¥937 million as of March 31, 2009 were paid by March 31,
2010. Total restructuring charges during the year ended March 31, 2009 amounted to ¥3,286 million.