Omron 2009 Annual Report Download - page 82

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Notes to Consolidated Financial Statements
Omron Corporation and Subsidiaries
Net sales and total assets of foreign subsidiaries for the years ended March 31, 2009, 2008 and 2007 were as follows:
14. Foreign Operations
Net sales
Total assets
2008
2009 2007 2009
Millions of yen
Thousands of
U.S. dollars
¥ 324,509
¥ 263,900
$ 3,052,316
$ 2,093,867
¥ 374,399
¥ 257,151
¥ 299,127
¥ 205,199
15. Discontinued Operations
On April 1, 2007, the Company sold the entire business of
Omron Entertainment Co., Ltd, which had been a con-
solidated subsidiary, to a third party. In accordance with
SFAS No.144, the Companies presented the gains (net
of tax) of its disposal business and the results of discon-
tinued operations (including operations of subsidiaries that
either have been disposed of or classified as held for sale)
as separate line item in the consolidated statements of
operations under “Income from discontinued operations,
net of tax.” Prior years’ consolidated statements of oper-
ations including segment information and other related
matters were restated to compare with the consolidated
statements of operations for the year ended March 31,
2009. On the other hand, the cash flows attributable to the
operating, investing and financing activities of the dis-
continued operations were not presented separately from
the cash flows attributable to activities of the continuing
operations.
The Companies have no continuing involvement with
the business of Omron Entertainment Co., Ltd.
The following table summarizes selected financial infor-
mation for the years ended March 31, 2008 and 2007 for
the discontinued operations.
Net sales
Cost of sales and expenses
Income from discontinued operations before income taxes
Net gain on sales of business entities
Income taxes
Income from discontinued operations, net of tax
20072008
Millions of yen
¥ 12,785
10,776
2,009
—
823
¥ 1,186
¥ —
—
—
5,177
2,123
¥ 3,054
The total valuation allowance increased by ¥1,752 million
($17,878 thousand) in 2009 and decreased by ¥235 million
in 2008.
As of March 31, 2009, certain subsidiaries had oper-
ating loss carryforwards approximating ¥45,780 million
($467,143 thousand) available for reduction of future tax-
able income, the majority of which expire by 2015.
The Company has not provided for Japanese income
taxes on unremitted earnings of certain foreign sub-
sidiaries to the extent that they are believed to be indefi-
nitely reinvested. Under Japanese Tax Reform on March,
2009, up to 95% of a dividend received by a company
from the foreign subsidiaries is free of tax. As a result,
the accumulated unremitted earnings of the foreign sub-
sidiaries which the Company has not recognized deferred
tax liabilities were ¥71,174 million ($726,265 thousand)
and ¥63,180 million at March 31, 2009 and 2008, respec-
tively. Dividends received from domestic subsidiaries are
expected to be substantially free of tax.
The Companies adopted FIN No.48 for the year begin-
ning April 1, 2007. As a result of this adoption, the
Companies decreased ¥266 million of the beginning
retained earnings. The Companies believe that the total
amount of unrecognized tax benefits as of March 31, 2009
is not material to its result of operations, financial condition
or cash flows.
The Companies recognize interest and penalties
accrued related to unrecognized tax benefits in income
taxes in the consolidated statements of operations.
The companies file income tax returns in Japanese
and foreign jurisdictions. With few exceptions, tax exam-
inations in Japan for the year on and before ended March
31, 2007 have been finished. With few exceptions, tax
examinations in foreign countries for the year on and
before ended March 31, 2003 have been finished.