Toshiba 2009 Annual Report Download - page 93

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41
14. RESEARCH AND DEVELOPM ENT COSTS
Research and development costs are expensed as incurred and amounted to ¥378,261 million ($3,859,806 thousand) and
¥393,293 million for the years ended March 31, 2009 and 2008, respectively.
15. ADVERTISING COSTS
Advertising costs are expensed as incurred. Advertising costs amounted to ¥46,632 million ($475,837 thousand) and ¥53,201
million for the years ended March 31, 2009 and 2008, respectively.
16. OTHER INCOME AND OTHER EXPENSE
FOREIGN EXCHANGE LOSSES
For the years ended March 31, 2009 and 2008, the net foreign exchange losses were ¥38,128 million ($389,061 thousand) and
¥16,861 million, respectively.
GAINS ON SALES OF SECURITIES
The gains on sales of securities for the years ended March 31, 2009 and 2008 were ¥76,436 million ($779,959 thousand) and
¥33,953 million, respectively. For the year ended March 31, 2009, the gains on sales of securities were related mainly to
Toshiba building Co., Ltd. (NREG Toshiba building Co., Ltd.). For the year ended March 31, 2008, the gains on sales of
securities were related mainly to Toshiba-EMI Limited and Toshiba Machine Co., Ltd..
GAINS AND LOSSES ON SALES OR DISPOSAL OF FIXED ASSETS
For the years ended March 31, 2009 and 2008, the sale and disposal of fixed assets resulted in net gains of ¥7,307 million
($74,561 thousand) and ¥132,725 million, respectively. Gains on sales of fixed assets were ¥22,685 million ($231,480 thou-
sand), and losses on disposal of fixed assets were ¥15,378 million ($156,918 thousand) for the year ended March 31, 2009.
Gains on sales of fixed assets were ¥144,716 million, and losses on disposal of fixed assets were ¥11,991 million for the year
ended March 31, 2008. The gains on sales of fixed assets were related mainly to the Ginza Toshiba Building and the land
sale.
WITHDRAWAL FROM HD DVD BUSINESS
In response to the major changes observed in the business environment during the year ended March 31, 2008, the Company
decided to withdraw from the HD DVD business after conducting an overall assessment of the future business strategy. The
Company will continue market conventional DVD players and recorders, and accordingly there was no separate financial
reporting for the HD DVD business.
The Company anticipates that substantially all of the liabilities associated with the withdrawal from HD DVD business
were paid during the year ended March 31, 2008.
The costs associated with the withdrawal from HD DVD business for the year ended March 31, 2008 were ¥48,328 mil-
lion.
CHANGE IN THE M ETHOD OF DEPRECIATION
Effective April 1, 2007, Toshiba Corporation and its domestic subsidiaries changed the method of calculating depreciation of
machinery, equipment and other fixed assets, from the fixed-percentage-on declining base application to the 250% declining-
balance method with estimated residual value reduced to a nominal value. For the year ended March 31, 2008, depreciation
expense increased ¥76,519 million, of which ¥46,648 million is included in other expense.
17. IM PAIRMENT OF LONG-LIVED ASSETS
The amount of impairment charges, except for Mobile Broadcasting Business, was not significant for the year ended March
31, 2009.
The Company recorded impairment charges of ¥16,959 million related primarily to the HD DVD business, which are
included mainly under other expense in the accompanying consolidated statements of income, for the year ended March 31,
2008.