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68 SHARP CORPORATION
Financial Section
These restructuring charges for the year ended March 31, 2012
are related to the LCD business restructuring, etc. Those mainly
comprise depreciation and maintenance charges of ¥37,717
million concerning plants that were suspended in the Company
and its consolidated subsidiary, Sharp Display Products Corpora-
tion (its corporate name was changed to Sakai Display Products
Corporation on July 17, 2012) to improve production to meet
the increasing demand for high value-added products, and costs
of ¥68,125 million incurred to reinforce business foundations
(inventory write-down, etc.) in preparation for promoting estab-
lishment of strategic vertical integration of the large-size LCD
business.
These restructuring charges for the year ended March 31,
2013 are as follows:
(a) This concerns LCD business and comprises costs of
¥12,056 million incurred for maintenance of inactive fixed as-
sets caused in the Company and its consolidated subsidiary,
Sharp Display Products Corporation (its corporate name was
changed to Sakai Display Products Corporation on July 17,
2012), along with improving production to meet the increas-
ing demand for high value-added products.
(b) This mainly concerns reduction of production of the Com-
pany’s Large-size LCD panels and comprises the loss on valua-
tion of inventories of ¥53,468 million.
(c) This mainly concerns a structural switch of Solar Cells busi-
ness and comprises costs of ¥31,526 million incurred to im-
pairment loss on fixed assets.
The Company and its consolidated subsidiaries categorizes
assets for business use in view of business facility, type of busi-
ness and others in a comprehensive manner. Idle assets are
categorized by each asset.
The Company and its consolidated subsidiaries reduced
the book value of idle and unused-in-the-future production
equipment of thin-film solar cells to an estimated recoverable
amount, and recognized the decreased amount of ¥31,526
million as a restructuring charge included in other expenses.
Details are as follows: ¥17,568 million, for buildings and
structures; ¥4,963 million, for machinery, equipment and
vehicles; ¥4,007 million, for lease assets; ¥2,247 million, for
long-term prepaid expenses; ¥2,741 million, for other.
(d) This comprises the loss on cancellation of lease contracts,
etc. by structural switch of Solar Cells business, of ¥14,249
million.
(e) This comprises the costs of restructuring of consolidated
subsidiaries of, ¥6,602 million.
(f) This comprises the costs of the voluntary retirement pro-
gram for employees of the Company and its domestic consoli-
dated subsidiaries, of ¥25,496 million.
15. Restructuring Charges