Olympus 2010 Annual Report Download - page 55

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OLYMPUS 2010 53
18. IMPAIRMENT LOSS ON FIXED ASSETS
The loss on impairment of fixed assets that the Company and its consolidated subsidiaries recorded for the years ended March 31, 2010,
2009 and 2008 were as follows:
For the year ended March 31, 2010
Use Type of assets Location Millions of yen
Thousands of
U.S. dollars
Assets used for Other Business Goodwill Tokyo and others ¥95 $1,056
Buildings and structures 778
Tools, furniture and fixtures 556
Leased assets 105 1,167
Software 108 1,200
Assets used for Information Buildings and structures Gifu and others 63 700
and Communication Business Tools, furniture and fixtures 10 111
Long-term prepaid expenses 222
Assets used for corporate Buildings and structures Tokyo 44 489
Leased assets 22 244
Software 74 822
Idle properties Buildings and structures New York, U.S. 675 7,499
Buildings and structures Nagano 143 1,589
Total ¥1,353 $15,033
For the year ended March 31, 2009
Use Type of assets Location Millions of yen
Assets used for Other Business Goodwill Tokyo and others ¥ 721
Land 252
Assets used for Information Goodwill Tokyo and others 365
and Communication Business Software 477
Total ¥ 1,815
For the year ended March 31, 2008
Use Type of assets Location Millions of yen
Assets used for Life Science Business Goodwill Munich, Germany ¥ 1,058
Idle properties Buildings Tokyo and others 35
Total ¥ 1,093
The Company and its consolidated subsidiaries classified fixed assets into the groups of the business segments. The idle properties are
considered to constitute a group.
Some assets for business use were not expected to make a profit constantly because of the degradation of the business environment.
As a result, carrying amounts of assets for business use were devaluated to their recoverable amounts. The recoverable amounts were
calculated on the basis of utility value, with future cash flows discounted by 11% in fiscal 2009, 15% in fiscal 2008. In fiscal 2010, the assets
are assumed to have no recoverable value, because the utility value based on future cash flow is estimated to be negative.
Carrying amounts of idle properties were devaluated to their recoverable amounts, owing to substantial decline in the fair market value.
The recoverable amounts were estimated by net realizable value of fixed assets which were calculated based on net selling price in fiscal
2010 and 2008.
19. AMORTIZATION OF GOODWILL
For the year ended March 31, 2010 and 2009, the Company fully amortized goodwill related to affiliates as an expense as incurred, in
accordance with paragraph 32 (1) of JICPA Accounting Committee report No.7 “Practical Guidance for Consolidated Procedures Related to
Equity Account in Consolidated Financial Statements”.
20. 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