Pioneer 2012 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2012 Pioneer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 58

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58

Millions of Yen
Thousands of
U.S. Dollars
Application Type Location Impairment Loss Impairment Loss
Organic light-emitting diode
manufacturing facilities
Machinery and
equipment, etc. Yonezawa, Yamagata ¥ 8 $ 98
Assets to be disposed of Land, buildings Fukuroi, Shizuoka 418 5,098
Assets to be disposed of Land Miura, Kanagawa, etc. 84 1,024
Total ¥510 $6,220
Millions of Yen
Application Type Location Impairment Loss
Organic light-emitting diode
manufacturing facilities
Buildings, machinery and
equipment, etc. Yonezawa, Yamagata ¥ 50
Assets to be disposed of Land, buildings, etc. U.K., Germany, Mexico 352
Assets to be disposed of Buildings Fukuroi, Shizuoka 116
Idle assets Land, buildings, etc. Miura, Kanagawa, etc. 347
Idle assets Buildings, etc. Tendo, Yamagata 459
Total ¥1,324
5. Long-lived Assets
The Group reviewed its long-lived assets for
impairment as of March 31, 2012 and 2011. As a
result, the Group recognized an impairment loss as
other expenses for certain processing machinery
groups related to organic light-emitting diode and
idle assets due to a decline of the market value and
the prospect of future profit.
In principle, business assets are grouped based
on management classification. However, idle assets
whose disposal are planned or whose future use
are not forecasted are grouped individually in the
smallest cash-flow generating unit independent of
each other.
For the year ended March 31, 2012, the Group
recognized an impairment loss of ¥510 million ($6,220
thousand), as summarized in the table below:
In 2012, the group of business assets relating to
organic light-emitting diode was reduced to the value
in use since the book value of the group exceeded
the expected future cash flow. As for the group
of assets to be disposed of, 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 value in use of organic light-emitting diode
business asset group was determined to be zero.
As for the group of assets to be disposed of, the
projected selling price was used as the basis of values.
In 2011, the group of business assets relating to
organic light-emitting diode was reduced to the value
in use since the book value of the group exceeded
the expected future cash flow. As for the group of
assets to be disposed of 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 value in use of organic light-emitting diode
business asset group was determined to be zero.
As for the group of assets to be disposed of 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, 2011, the Group recognized an impairment loss of ¥1,324 million, as summarized in
the table below:
35
Pioneer Corporation Annual Report 2012