Pioneer 2009 Annual Report Download - page 35

Annual Report 2009 33
4. INVENTORIES
Inventories at March 31, 2009 and 2008 consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Finished products ¥45,169 ¥ 54,404 $460,908
Work in process 14,699 21,818 149,990
Raw materials and supplies 25,018 28,654 255,286
Total ¥84,886 ¥104,876 $866,184
5. LONG-LIVED ASSETS
The Group reviewed its long-lived assets for impairment as of
March 31, 2009 and 2008. As a result, the Group recognized
an impairment loss as other expenses for certain processing
machinery group related to plasma display panels, DVD
recorders and idle assets due to decline of market value and
the prospect of future profit.
For the year ended March 31, 2009, the Group recognized impairment losses of ¥4,132 million ($42,163 thousand), as
summarized in the table below:
Millions of Yen
Thousands of
U.S. Dollars
Application Type Location Impairment loss
Plasma display related facilities Machinery and equipment, etc. Fukuroi, Shizuoka, etc. ¥1,585 $16,174
DVD recorder related facilities Machinery and equipment, etc. Kawasaki, Kanagawa, etc. 1,089 11,112
Assets held for sale (idle assets) Buildings, machinery and
equipment, etc.
California, USA, etc. 300 3,061
Idle assets Land, buildings, etc. Adachi, Fukushima 363 3,704
Idle assets Land Minami Alps, Yamanashi 795 8,112
Total ¥4,132 $42,163
In principle, business assets are grouped based on
management classification. However, idle assets whose
disposal is planned or whose future use is not forecasted are
grouped individually in the smallest cash-flow generating unit
independent of each other.
The Group determined in the year ended March 31, 2009
to withdraw from the display business by March 2010 as part
of its Business Restructuring Plans. In the DVD recorder
business, the establishment of a new joint venture in the
optical disc business field is being considered.
In light of the above, concerning the group of business
assets relating to plasma displays and DVD recorders to be
disposed, the group of assets held for sale to be disposed
and the group of idle assets whose land value is falling,
each individual asset group was reduced to the net selling
price and the amount of decrease was recorded in other
income (expenses) as loss on impairment of property, plant
and equipment.
The book value of the business-use asset group and
for-sale asset group was reduced to nominal value. As for the
idle asset group, the market price information was obtained
on the basis of values provided by real estate appraisers and
other specialists.