Pioneer 2015 Annual Report Download - page 19

5. Long-lived Assets
Short-term borrowings as of March 31, 2015 and 2014, consisted of the following:
7. Short-term Borrowings and Long-term Debt
The Group reviewed its long-lived assets for impair-
ment as of March 31, 2015. As a result, the Group
recognized an impairment loss as other expenses for
certain processing machinery groups related to organic
light-emitting diodes and idle assets whose disposal is
planned due to a decline of the market value and the
prospects for future profit.
In 2015, the group of business assets relating to or-
ganic light-emitting diodes was reduced to the value
in use since the book value of the group exceeded
the expected future cash flows. 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.
In November 2008, the ASBJ issued ASBJ State-
ment No. 20, “Accounting Standard for Investment
Property and Related Disclosures” and ASBJ Guid-
ance No. 23, “Guidance on Accounting Standard for
Investment Property and Related Disclosures.”
As of March 31, 2015, the Group held certain idle
properties in Yamanashi and other areas in Japan.
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 value in use of the organic light-emitting di-
ode business asset group was estimated based on
the memorandum value. As for the group of assets to
be disposed of, the projected selling price was used
as the basis of recoverable values for machinery and
equipment, etc., and the value in use of zero as the
basis of values for software.
As of March 31, 2014, the Group held certain idle
properties in Shizuoka and other areas in Japan.
Gain on sales of idle properties for the year
ended March 31, 2015, was ¥1,473 million ($12,275
thousand).
There were neither losses on sales nor impairment
on those properties for the year ended March 31, 2014.
For the year ended March 31, 2015, the Group recognized an impairment loss of ¥1,331 million ($11,092 thousand),
as summarized in the table below:
There were no impairment of long-lived assets for the year ended March 31, 2014.
Millions of Yen
Carrying Amount Fair Value
April 1, 2014 Increase/Decrease March 31, 2015 March 31, 2015
Idle property ¥5,259 ¥(2,184) ¥3,075 ¥5,398
Total ¥5,259 ¥(2,184) ¥3,075 ¥5,398
Millions of Yen
Carrying Amount Fair Value
April 1, 2013 Increase/Decrease March 31, 2014 March 31, 2014
Idle property ¥5,260 ¥(1) ¥5,259 ¥15,392
Total ¥5,260 ¥(1) ¥5,259 ¥15,392
Thousands of U.S. Dollars
Carrying Amount Fair Value
April 1, 2014 Increase/Decrease March 31, 2015 March 31, 2015
Idle property $43,825 $(18,200) $25,625 $44,983
Total $43,825 $(18,200) $25,625 $44,983
Notes: 1. Carrying amount reported in the consolidated balance sheet is net of accumulated depreciation and accumulated
impairment losses, if any.
2. Decrease during the fiscal year ended March 31, 2015, principally represents the sales of idle property of ¥2,182 million
($18,183 thousand).
3. Fair value is principally based on the values provided by third-party real estate appraisers.
The carrying amounts, changes in such balances and fair value of such properties as of March 31, 2015 and
2014 were as follows:
6. Investment Property
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Short-term borrowings:
Weighted-average interest rate of 3.88% as of March 31, 2015
and 2.80% as of March 31, 2014
Collateralized ¥ 4,892 ¥ 9,400 $ 40,767
Uncollateralized 12,979 12,778 108,158
Total ¥17,871 ¥22,178 $148,925
Millions of Yen
Thousands of
U.S. Dollars
Application Type Location Impairment Loss Impairment Loss
Organic light-emitting
diodes manufacturing facilities Machinery and equipment, etc.
Yonezawa, Yamagata,
Japan ¥ 4 $ 33
Assets to be disposed of Machinery and equipment, etc. China 1,245 10,375
Assets to be disposed of Software Brazil 82 684
Total ¥1,331 $11,092
Long-term debt as of March 31, 2015 and 2014, consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Long-term debt:
Collateralized ¥ 6,367 ¥52,270 $ 53,058
Uncollateralized 10,000 13,000 83,333
Long-term capital lease obligation, due principally in 2018 2,704 3,725 22,534
Total 19,071 68,995 158,925
Less—portion due within one year 8,135 67,476 67,792
Long-term debt, less current portion ¥10,936 ¥ 1,519 $ 91,133
34 Pioneer Corporation Annual Report 2015 35
Pioneer Corporation Annual Report 2015