Olympus 2009 Annual Report Download - page 55

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53
19. LOSS ON PRIOR PERIOD ADJUSTMENT
Due to the settlement of commission fees and other costs regarding the primary investments to the equity participation in Gyrus Group
Ltd. and its subsidiaries in the year ended March 31, 2008, the Company has completed the allocation of these expenditures to acquisition
cost. Therefore, the Company terminated a provisional accounting treatment of these transactions and recorded in loss on prior period
adjustment in the consolidated statements of operations as an adjustment of the goodwill amount recorded in previous year.
20. CASH AND CASH EQUIVALENTS
Reconciliations of cash and time deposits shown in the consolidated balance sheets and cash and cash equivalents shown in the consoli-
dated statements of cash flows as of March 31, 2009, 2008 and 2007 are as follows:
Millions of yen
Thousands of
U.S. dollars
2009 2008 2007 2009
Cash and time deposits .......................................................................... ¥ 136,877 ¥ 158,281 ¥ 216,586 $ 1,440,811
Less: Time deposits with maturities over three months .......................... (4,157) (38,439) (41,794) (43,758)
Cash equivalents included in marketable securities ............................... — — 10 —
Cash and cash equivalents ..................................................................... ¥ 132,720 ¥ 119,842 ¥ 174,802 $ 1,397,053
21. CASH FLOW FROM ACQUISITION OF CONSOLIDATED SUBSIDIARIES
Details of assets and liabilities when Gyrus Group PLC (currently Gyrus Group Ltd.) and other subsidiaries were consolidated,
acquisition costs of shares, and payments for acquisition of Gyrus Group PLC for the year ended March 31, 2008 were as follows:
Millions of yen
Notes and accounts receivable ........................................................................................................................................ ¥ 7,611
Inventories ...................................................................................................................................................................... 10,033
Other current assets ....................................................................................................................................................... 11,535
Property, plant and equipment ........................................................................................................................................ 7,508
Goodwill .......................................................................................................................................................................... 208,450
Other assets .................................................................................................................................................................... 87,591
Investments and other assets ......................................................................................................................................... 2,927
Notes and accounts payable ........................................................................................................................................... (1,635)
Short-term borrowings .................................................................................................................................................... (28,401)
Other current liabilities ................................................................................................................................................... (12,352)
Long-term debt ............................................................................................................................................................... (2,293)
Other non-current liabilities ............................................................................................................................................ (24,737)
Minority interests ............................................................................................................................................................ (124)
Total equity method until consolidation .......................................................................................................................... (6,378)
Sub-total: Acquisition cost of Gyrus Group PLC and other subsidiaries ........................................................................... 259,735
Amount owed of purchase price ...................................................................................................................................... 20,468
Cash and cash equivalents owned by Gyrus Group PLC and other subsidiaries ................................................................ 7,033
Payments for acquisition of Gyrus Group PLC and other subsidiaries .............................................................................. ¥ 232,234
Since the purchase price allocation was based on preliminary estimates of fair value for the year ended March 31, 2008, asset and liability
balances were subject to subsequent revisions.
In addition, since there were possibilities to change the purchase price of the companies based on the purchase agreement, goodwill
was also subject to subsequent revision.
22. INFORMATION FOR CERTAIN LEASE TRANSACTIONS
FINANCE LEASE TRANSACTIONS (LESSEE):
The Company and its consolidated subsidiaries lease certain machinery and equipment under the non-cancelable finance and operating
leases. Finance leases contracted before March 31, 2008 that do not transfer ownership to lessees are not capitalized and are accounted
for in the same manner as operating leases. Certain information for such non-capitalized finance leases for the years ended March 31,
2009 and 2008 were as follows: