Yamaha 2008 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 2008 Yamaha 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 96

  • 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
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

74 Yamaha Corporation
8. LOSS ON IMPAIRMENT OF FIXED ASSETS
The following table summarizes loss on impairment of fixed assets for the year ended March 31, 2007:
Millions of Yen
Group of Fixed Assets Location Impaired Assets 2007
Assets in recreation business Four recreation facilities (Kiroro, Haimurubushi, Toba Buildings and structures ¥4,316
Hotel International, Nemunosato) in Akaigawamura, Land 412
Yoichi-gun in Hokkaido and other locations
Total ¥4,728
Method of grouping assets
The Yamaha Group classifies the assets of the recreation segment with individual recreation facilities as the basic unit as these
are the minimum cash flow generating units.
Background for recognition of impairment losses
The Yamaha Group concluded a basic agreement with Mitsui Fudosan Co., Ltd., on March 23, 2007, for the sale of commercial
real estate of four recreation properties. Among its operating assets in the recreation segment, the Company recognized impair-
ment losses on those assets of the four properties to be sold that were appraised at values below book value.
Method for computing the recoverable amount
The recoverable amount of assets in the recreation business was computed based on the estimated transfer price of the assets
which were transferred to Mitsui Fudosan Co., Ltd.
9. R&D EXPENSES
R&D expenses, included in selling, general and administrative expenses and cost of sales, for the years ended March 31, 2008
and 2007 amounted to ¥24,865 million ($248,178 thousand) and ¥24,220 million, respectively.
10. STRUCTURAL REFORM EXPENSES
Expenses were incurred in connection with the determination to dissolve the following overseas manufacturing subsidiaries:
Kaohsiung Yamaha Co., Ltd., Yamaha Music Manufacturing, Inc., and Yamaha Musical Products, Inc.
11. SPECIAL RETIREMENT PAYMENTS
Additional retirement payments were made due to the implementation of a special early retirement program.
12. OTHER INCOME (EXPENSES)
The components of “Other, net” in “Other income (expenses)” for the years ended March 31, 2008 and 2007 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
(Note 3)
2008 2007 2008
Reversal of reserve for structural reform expenses ¥ 260 ¥ — $ 2,595
Loss on revaluation of investment securities (263) (14) (2,625)
Loss on sales of equity investments in subsidiaries (21) —(210)
Loss on revaluation of investments in subsidiaries and affiliates (63) (119) (629)
Loss on revaluation of equity investments in subsidiaries and affiliates (66) —(659)
Other, net 1,130 1,681 11,279
¥ 975 ¥1,547 $ 9,732