Pioneer 2008 Annual Report Download - page 68

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PIONEER CORPORATION
66
25. Commitments and contingent liabilities:
Commitments outstanding at March 31, 2008 for the purchase of property, plant and equipment and raw materials, and other
payments approximated ¥33,584 million ($335,840 thousand).
26. Remuneration of directors, executive officers and corporate auditors:
24. Supplemental schedule for allowance for doubtful receivables and warranty reserve:
The changes in the allowance for doubtful receivables for the years ended March 31, 2006, 2007 and 2008 are as follows:
Millions of Yen
Thousands of
U.S. Dollars
Allowance for Doubtful Receivables 2006 2007 2008 2008
Balance at beginning of year ¥2,610 ¥3,165 ¥2,887 $28,870
Charged (credited) to costs and expenses 850 183 10 100
Deductions for accounts written off (517) (547) (149) (1,490)
Translation adjustments 222 86 (258) (2,580)
Balance at end of year ¥3,165 ¥2,887 ¥2,490 $24,900
The changes in the warranty reserve for the years ended March 31, 2006, 2007 and 2008 are as follows:
Millions of Yen
Thousands of
U.S. Dollars
Warranty Reserve 2006 2007 2008 2008
Balance at beginning of year ¥ 5,722 ¥ 6,603 ¥ 6,843 $ 68,430
Provision 9,506 7,908 7,453 74,530
Payments (8,972) (7,942) (8,624) (86,240)
Translation adjustments 347 274 (407) (4,070)
Balance at end of year ¥ 6,603 ¥ 6,843 ¥ 5,265 $ 52,650
The aggregate remuneration (including bonuses and stock-
based compensation [See Note 16]) charged to income by the
parent company for directors, executive officers and corporate
auditors for the years ended March 31, 2006, 2007 and 2008
totaled ¥974 million, ¥699 million and ¥919 million ($9,190
thousand), respectively.
27. Subsequent event:
In March 2008, the parent company decided to cease in-
house production of plasma display panels as soon as the
production runs for the next model series are completed. In
connection with this decision, the Company’s Board of Direc-
tors resolved at their meeting held on May 30, 2008 to enter
into “The Agreement on a Comprehensive Plasma Display
Business Alliance” with Matsushita Electric Industrial Co., Ltd.
Such agreement was executed by the parties on June 2, 2008.
This alliance is part of the restructuring of the Company’s
plasma display business with the intent of enhancing and
developing this business.
Certain elements of this agreement are related to new
development and strategic production and supply of the plasma
display panel modules. Based on this agreement, the parties will
conduct joint product development in this field. The Company
expects to source the plasma display panel modules from
Matsushita Electric Industrial Co., Ltd. from the summer of 2009.
The discussions regarding the details of the business
alliance are ongoing.