Olympus 2011 Annual Report Download - page 55

OLYMPUS 2011 53
The obligations secured by such collateral were as follows:
Millions of yen
Thousands of
U.S. dollars
2011 2010 2011
Long-term debt ............................................................................................................ ¥ 4,796 ¥ 383 $ 59,950
Current maturities of long-term debt............................................................................ 7,701 119 96,263
¥ 12,497 ¥ 502 $ 156,213
17. 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
and 2009 were as follows:
For the year ended March 31, 2010
Use Type of assets Location Millions of yen
Assets used for Other Business Goodwill Tokyo and others ¥95
Buildings and structures 7
Tools, furniture and fixtures 5
Leased assets 105
Software 108
Assets used for Information Buildings and structures Gifu and others 63
and Communication Business Tools, furniture and fixtures 10
Long-term prepaid expenses 2
Assets used for corporate Buildings and structures Tokyo 44
Leased assets 22
Software 74
Idle properties Buildings and structures New York, U.S. 675
Buildings and structures Nagano 143
Total ¥1,353
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
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. 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.
18. AMORTIZATION OF GOODWILL
For the years 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”.
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.