Pioneer 2008 Annual Report Download - page 45

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Annual Report 2008 43
5. 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 oper-
ating, 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. (“PDT”)—
During the year ended March 31, 2006, the Company decided
to sell 100% of its shares in PDT through a management
buyout. PDT 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 PDT.
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 sale to OMRON of the Company’s entire
investment in PPMC, a 99.5%-owned subsidiary of the Com-
pany, which had been engaged in manufacturing and market-
ing 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 recog-
nized a gain on the sale of ¥2,488 million, net of taxes, during
the year ended March 31, 2007.
Summarized selected financial information for the years ended March 31, 2006, 2007 and 2008 for the discontinued operations
was as follows:
Millions of Yen
Thousands of
U.S. Dollars
2006 2007 2008 2008
Revenues ¥30,282 ¥10,445 – –
Cost and expenses 29,462 10,121 – –
Income before income taxes 820 324 – –
Gain on sales of discontinued operations 434 2,488 – –
Income taxes 482 37 – –
Income from discontinued operations ¥ 772 ¥ 2,775 – –