Pioneer 2009 Annual Report Download - page 36

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PIONEER CORPORATION34
For the year ended March 31, 2008, the Group recognized impairment losses of ¥22,692 million, as summarized in the
table below:
Millions of Yen
Application Type Location Impairment Loss
Plasma display related facilities Buildings, machinery and equipment, etc. Fukuroi, Shizuoka, etc. ¥21,344
DVD recorder related facilities Buildings, machinery and equipment, etc. Kawasaki, Kanagawa, etc. 1,117
Patent rights of plasma display panels Patent rights 231
Total ¥22,692
In principle, business assets are grouped based on
management classification. However, patent rights of plasma
display panels for production were grouped individually in the
smallest cash-flow generating unit independent of each other.
The Group anticipated difficulty to restore the profitability in
the plasma display and DVD recorder businesses. As to patent
rights of plasma display panels, on March 7, 2008, the Board
of Directors decided to cease inhouse production of plasma
display panels as soon as the production runs for the next
model series are completed.
In light of the above, concerning the group of business
assets, each individual asset group was reduced to the value
in use and the amount of decrease was recorded in other
income (expenses) as loss on impairment of property, plant
and equipment.
The impairment losses of ¥21,344 million of plasma display
related facilities are comprised as follows: ¥7,285 million of
buildings, ¥13,526 million of machinery and equipment, and
¥533 million of others.
The book value of the business-use asset group was
reduced to nominal value because negative net future cash
flows were expected. The discount rate used for computing the
value of patent rights of plasma display panels was 18.59%.
6. SHORT-TERM BORROWINGS AND LONG-TERM DEBT
Short-term borrowings at March 31, 2009 and 2008 are comprised as follows:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Short-term borrowings:
Weighted-average interest rate of 2.70% at March 31, 2009 and
1.50% at March 31, 2008
Collateralized ¥ 99,814 ¥ 276 $1,018,510
Uncollateralized 10,186 14,536 103,939
Total ¥110,000 ¥14,812 $1,122,449