Pioneer 2007 Annual Report Download - page 44

PIONEER CORPORATION43
4. Discontinued operations:
In accordance with SFAS No. 144, the Company presented the
results of discontinued operations (including operations of
subsidiaries that either have been disposed of or are classified
as held for sale) as a separate line item in the consolidated
statements of operations under “Income from discontinued
operations, net of tax.” The cash flows attributable to the
operating, investing and financing activities of the discontinued
operations were not presented separately from the cash flows
attributable to activities of the continuing operations.
Pioneer Digital Technologies, Inc.—
During the year ended March 31, 2006, the Company decided
to sell 100% of its shares in Pioneer Digital Technologies, Inc.
through a management buyout. Pioneer Digital Technologies,
Inc. was a wholly-owned subsidiary which was engaged in the
development of operating software for cable TV set-top boxes
in the United States. The Company sold the shares for a cash
consideration of ¥754 million and recognized a gain on the
sale of ¥282 million, net of taxes, in the year ended March 31,
2006. The Company has no continuing involvement with
Pioneer Digital Technologies, Inc.
Pioneer Precision Machinery Corporation (“PPMC”) and
its subsidiaries—
In order to improve management efficiency by concentrating
resources in strategic businesses, on March 31, 2006, the
Company reached a preliminary agreement with OMRON
Corporation on the transfer to OMRON of the Company’s
entire investment in PPMC, a 99.5%-owned subsidiary of the
Company, which has been engaged in manufacturing and
marketing of high-precision parts for electronic equipment.
The Company sold PPMC and its subsidiaries for a cash
consideration of ¥10,949 million on August 1, 2006 and
recognized a gain on the sale of ¥2,488 million, net of taxes,
during the year ended March 31, 2007.
Assets and liabilities of PPMC and its subsidiaries had been
classified as held for sale at March 31, 2006. In accordance
with SFAS No. 144, assets held for sale of PPMC and its
subsidiaries were recorded at the lower of their carrying
amount or fair value less costs to sell and no impairment
adjustment was necessary.
3. Acquisition:
On September 30, 2004, the Company acquired 100% of the
issued common stock of NEC Plasma Display Corporation
(“NPD”), a subsidiary of NEC Corporation, and the intellectual
property rights of NPD for cash in an aggregate amount of
¥35,097 million. NPD changed its name to Pioneer Plasma
Display Corporation (“PPD”) on September 30, 2004. This
acquisition was to meet a fast-growing global demand for
plasma displays.
The consolidated financial statements for the year ended
March 31, 2005 include the operating results of PPD from the
date of acquisition.
In connection with this acquisition, ¥6,937 million was
assigned to intangible asset of patents subject to amortization
with an amortization period of seven years which is based on
legal provisions that may limit the useful life.
The following unaudited pro forma information shows the
consolidated results of operations of the Company for the
year ended March 31, 2005 as if the acquisition had been
completed at the beginning of such fiscal year.
Unaudited
Millions of Yen
2005
Revenues ¥731,563
Net loss (19,002)
Yen
2005
Net loss per share:
Basic ¥(108.34)
Diluted (108.34)