Toshiba 2011 Annual Report Download - page 110

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44
Notes to Consolidated Financial Statements
Toshiba Corporation and Subsidiaries
March 31, 2011
Thousands of U.S. dollars
Year ended March 31, 2011 Hedge funds Real estate Total
Balance at beginning of year $ 1,102,771 $ 275,554 $ 1,378,325
Actual return:
Relating to assets sold 615 (21,807) (21,192)
Relating to assets still held 71,615 (8,470) 63,145
Purchases, issuances and settlements (9,651) (36,711) (46,362)
Balance at end of year $ 1,165,350 $ 208,566 $ 1,373,916
Certain of the Group’s subsidiaries provide certain health care and life insurance benefits to retired employees. Such
benefits were not material for the years ended March 31, 2011 and 2010.
14. RESEARCH AND DEVELOPMENT COSTS
Research and development costs are expensed as incurred and amounted to ¥319,693 million ($3,851,723 thousand) and
¥311,751 million for the years ended March 31, 2011 and 2010, respectively.
15. ADVERTISING COSTS
Advertising costs are expensed as incurred. Advertising costs amounted to ¥32,299 million ($389,145 thousand) and
¥29,354 million for the years ended March 31, 2011 and 2010, respectively.
16. OTHER INCOME AND OTHER EXPENSE
FOREIGN EXCHANGE GAINS AND LOSSES
For the years ended March 31, 2011 and 2010, the net foreign exchange impacts were ¥3,113 million ($37,506
thousand) loss and ¥6,574 million gain, respectively.
GAINS AND LOSSES ON SALES OR DISPOSAL OF FIXED ASSETS
For the years ended March 31, 2011 and 2010, the sale and disposal of fixed assets resulted in net impacts of ¥19,001
million ($228,928 thousand) gain and ¥21,794 million loss, respectively. Gains on sales of fixed assets were ¥33,098 million
($398,771 thousand), and losses on disposal of fixed assets were ¥14,097 million ($169,843 thousand) for the year ended
March 31, 2011. Gains on sales of fixed assets were ¥7,968 million, and losses on disposal of fixed assets were ¥29,762
million for the year ended March 31, 2010.
For the year ended March 31, 2011, the amount of losses related to the Great East Japan Earthquake of March 11, 2011
was not significant.
17. IMPAIRMENT OF LONG-LIVED ASSETS
Due to general price erosion and severe market competition, the Group recorded impairment losses of ¥19,023 million
($229,193 thousand) related primarily to the manufacturing facilities of the System LSI for the year ended March 31,
2011, and ¥3,203 million related primarily to the property, plant and equipment of the LCD business for the year ended
March 31, 2010. The impairment loss is included in cost of sales in the accompanying consolidated statements of income.
For the year ended March 31, 2010, the Group recorded impairment loss of ¥15,817 million related to the stock transfer
agreement of AFPD PTE., LTD. (“AFPD”), a manufacturing subsidiary in Singapore. The Group reduced book value of
property, plant and equipment of AFPD in accordance with the transfer price of AFPD stock. This impairment loss is
included in other expense in the accompanying consolidated statements of income. As of March 31, 2010, the carrying
amount of property, plant and equipment in AFPD is ¥10,618 million. The Group transferred AFPD stock on July 1,
2010.
These impairment losses are both related to Electronic Devices.