Pioneer 2010 Annual Report Download - page 37

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4. Inventories
Inventories at March 31, 2010 and 2009 consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
Finished products ¥25,218 ¥45,169 $271,161
Work in process 10,211 14,699 109,796
Raw materials and supplies 19,621 25,018 210,978
Total ¥55,050 ¥84,886 $591,935
5. Long-lived Assets
The Group reviewed its long-lived assets for impairment as of
March 31, 2010 and 2009. As a result, the Group recognized
an impairment loss as other expenses for certain processing
machinery groups related to plasma display panels, DVD
recorders, organic EL and idle assets due to decline of market
value and the prospect of future profit.
In principle, business assets are grouped based on man-
agement 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 indepen-
dent of each other.
For the year ended March 31, 2010, the Group recognized impairment losses of ¥7,932 million ($85,290 thousand), as
summarized in the table below:
Millions of Yen
Thousands of
U.S. Dollars
Application Type Location Impairment Loss Impairment Loss
Organic EL manufacturing facilities Buildings, machinery and
equipment, etc.
Yonezawa, Yamagata ¥ 697 $ 7,495
Assets to be disposed Land, buildings, etc. Meguro, Tokyo 2,417 25,989
Assets to be disposed Buildings, machinery and
equipment, etc.
U.K., Australia, etc. 364 3,914
Idle assets Land, buildings, etc. Tsurugashima, Saitama 2,443 26,269
Idle assets Land, buildings, etc. Fukuroi, Shizuoka 1,709 18,376
Idle assets Land, buildings, etc. Tendo, Yamagata, etc. 302 3,247
Total ¥7,932 $85,290
In 2010, the group of business assets relating to organic
EL was reduced to the value in use since the book value of
the group was above the expected future cash flow. As for
the group of assets 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 discount rate used for computing the value in use of
the organic EL business asset group was 4.48%. As for the
group of assets to be disposed and the idle asset group, the
market price information was obtained on the basis of values
provided by real estate appraisers and other specialists.
For the year ended March 31, 2009, the Group recognized impairment losses of ¥4,132 million, as summarized in the
table below:
Millions of Yen
Application Type Location Impairment Loss
Plasma display-related facilities Machinery and equipment, etc. Fukuroi, Shizuoka, etc. ¥1,585
DVD recorder-related facilities Machinery and equipment, etc. Kawasaki, Kanagawa, etc. 1,089
Assets held for sale (idle assets) Buildings, machinery and equipment, etc. California, USA, etc. 300
Idle assets Land, buildings, etc. Adachi, Fukushima 363
Idle assets Land Minami Alps, Yamanashi 795
Total ¥4,132
35
PIONEER CORPORATION Annual Report 2010