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Notes to Consolidated Financial Statements
14. CONTINGENT LIABILITIES
Contingent liabilities at March 31, 2012 and 2011 are as follows:
Thousands of
Millions of yen
U.S. dollars
2012 2011 2012
Notes receivable discounted...................................................................... ¥ — ¥ 187 $ —
Notes receivable endorsed......................................................................... 470 543 5,718
Guarantees:
Guarantees for debt of employees, unconsolidated subsidiaries and
affiliates................................................................................................. 4,357 4,899 53,011
Contingent guarantees for debt of unconsolidated subsidiaries and
affiliates................................................................................................. 209 430 2,543
Keepwell agreements and letters of awareness for debt
of unconsolidated subsidiaries and affiliates.......................................... 3,798 1,350 46,210
15. IMPAIRMENT LOSSES OF FIXED ASSETS
The Company and its consolidated subsidiaries did not recognize
any impairment losses of fixed assets in fiscal 2012.
Details of impairment losses of fixed assets for the years
ended March 31, 2011 are as follows:
2011 Millions of yen
Machinery, equipment and others............... ¥ 4,316
Buildings and structures.............................. 6,395
Construction in progress............................. 223
Intangible assets......................................... 381
Other.......................................................... 21
¥11,336
The Company and its consolidated subsidiaries grouped
long-lived assets into asset groups by business segment,
and conducted impairment tests with the conclusion that the
carrying amounts should be reduced by ¥11,336 million to
the recoverable amounts in fiscal 2011.
The recoverable amount is the net selling price or the value
in use, which is equal to net future cash flow discounted at
8.3%.
Figures of impairment losses of fixed assets for each reportable
segment are disclosed in Note 18 b), for the year ended
March 31, 2011.
16. LOSS ON DISASTER
Loss on disaster which has been accounted for caused by
the Great East Japan Earthquake and Flood in Thailand for
the year ended March 31, 2012, consist mainly of extraordinary
loss in operations and others.
Details of loss on disaster which was accounted for caused
by the Great East Japan Earthquake for the year ended
March 31, 2011 are as follows:
2011 Millions of yen
Loss on disposal of inventories.................... ¥ 926
Loss on disposal of property,
plant and equipment................................. 108
Restoration expense and others*................ 7,811
¥8,845
* Including the amount of provision for loss on disaster, ¥4,114 million.
17. PROVISION FOR SURCHARGE
In fiscal 2012, the Company recognized a provision for
surcharge (¥2,102 million, US$25,575 thousand) as a result of
an order for payment of surcharge from the Japan Fair Trade
Commission, regarding the investigation of the Company’s
trade in automotive wiring harnesses-related products.
18. SEGMENT INFORMATION
a) Reportable Segments
The reportable segment of the Company is regular consideration,
whose divided financial information is available for
the President, the supreme decision-making body, to make
decisions regarding management resources allocation and
evaluate each business result.
The Company has adopted a business unit system based
upon the similarity in product’s category, method for manufacturing
and sales markets, etc., and devises comprehensive
strategies of the Company and its affiliates by dividing
businesses such as product development, manufacturing,
sales and supplementary services into the following five classifications:
“Automotive,” “Information & Communications,”
“Electronics,” “Electric Wire & Cable, Energy” and “Industrial
Materials & Others.” Therefore, the Company considers the
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SUMITOMO ELECTRIC Annual Report 2012