Yamaha 2009 Annual Report Download - page 63

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Method of grouping assets
The Company and its consolidated subsidiaries group fixed assets based on business segments, which are regarded as the smallest units
independently generating cash flows.
Background leading to the recognition of impairment losses
Regarding the valuation of assets related to the semiconductor business and the recreation business as well as goodwill, the Company recog-
nizes impairment losses on the assets in those businesses that report continuing losses in their operations or are forecast to report losses.
In addition, the Company recognizes impairment losses on idle assets that are not expected to be utilized.
Method for computing the recoverable amount
The recoverable amounts for the semiconductor and recreation business segments are measured with use value, which is computed using
future cash flows discounted at a rate of 10.0% and 7.5%, respectively. The recoverable amounts of goodwill related to NEXO S.A. and
Steinberg Media Technologies GmbH are measured based on the latest business plan for groups of assets of the related goodwill. The
present values of future cash flows are calculated using discount rates of 11.9% and 11.8% respectively.
The recoverable amounts of idle assets are measured according to their net realizable values based on independent third party appraisals.
10. R&D EXPENSES
R&D expenses, included in selling, general and administrative expenses and cost of sales for the years ended March 31, 2009 and 2008,
amounted to ¥23,218 million ($236,364 thousand) and ¥24,865 million, respectively.
11. BUSINESS RESTRUCTURING EXPENSES
These expenses include costs accompanying the decision to dissolve overseas manufacturing subsidiaries Taiwan Yamaha Musical Instruments
Manufacturing Co., Ltd., and Kemble & Company Ltd.; expenditures incurred for the realignment of the distribution centers in Europe; expenses
in connection with the withdrawal from the magnesium molded parts business; expenditures related to the cancellation of activities in the silicon
microphone business; and expenses incurred in connection with the withdrawal from the water heater business.
12. SPECIAL RETIREMENT EXPENSES
Additional retirement payments were made due to the implementation of a special early retirement program.
13. OTHER INCOME (EXPENSES)
The components of “Other, net” in “Other income (expenses)” for the years ended March 31, 2009 and 2008 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
(Note 3)
2009 2008 2009
Reversal of provision for business restructuring expenses ¥ — ¥ 260 $ —
Loss on valuation of investment securities (277) (263) (2,820)
Loss on sale of investments in capital of subsidiaries and affiliates —(21) —
Loss on valuation of stocks of subsidiaries and affiliates (163) (63) (1,659)
Other, net 67 1,130 682
¥(373) ¥1,042 $(3,797)
Annual Report 2009 61