Annual Report 2008

ANNUAL REPORT 2008increased, the Company decided to include the expenditures in selling and general administrative expenses fromthe year ended March 31, 2007 to improve the usefulness and comparability of financial statements. This changehas had little impact on net income. Moreover as a result of this change, cost of sales was ¥18,008 million lessand selling and general administrative expenses the same amount more than what they would have been withthe previous method.In addition, the amount of the expenses included in cost of sales in the year ended March 31, 2006 was¥14,417 million.11. Other Income(Expenses):Other, NetOther income (expenses): other, net in the consolidated statements of income comprised as follows:Thousands ofMillions of yenU.S. dollars2008 2007 2006 2008Gain on contribution of securities to the pension trust (a) ..... ¥ 1,375 ¥ — ¥ 12,901 $ 13,722Gain on sales of marketable securities and investmentsin securities ........................................................................ 465 884 4,380 4,640Gain on sales of investments in affiliates .............................. 292 — — 2,914Gain on sales of subsidiaries’ shares ..................................... — — 277 —Foreign exchange loss, net ................................................... (11,549) (13,391) (8,901) (115,260)Loss on impairment of fixed assets (b) .................................. (2,763) — (3,008) (27,574)Loss on damages suit (c) ....................................................... (2,245) (2,398) — (22,405)Loss on environmental measures (d) ..................................... (2,167) — — (21,626)Loss on sales of investments in affiliates ............................... (408) — — (4,071)Loss on breach of the Antimonopoly Act (e) ......................... — (1,387) (731) —Loss on the restructuring the commercial aircraftmanufacturing business (f) ................................................. — — (15,816) —Loss on cleaning of ground pollution (g) ............................... — — (1,054) —Loss on sales of subsidiaries’ shares ...................................... — — (155) —Other, net ............................................................................ (6,522) (7,433) (4,039) (65,090)Total .................................................................... ¥(23,522) ¥(23,725) ¥(16,146) $(234,750)(a) “Gain on contribution of securities to the pension trust” resulted from additional contributions of investmentsecurities to the pension trust.(b) Loss on impairment of fixed assetsBecause the profitability or market prices of some asset groups declined, the Company and its consolidateddomestic subsidiaries reduced the book value of such assets to the recoverable amounts.Assets are grouped mainly by units of business and significant assets for rent or those which are idle aretreated separately.Recoverable amounts were determined by net sales value, and net sales value was estimated by appraisal orproperty tax assessment.Asset groups for which the Company and its subsidiaries recognized impairment losses for the year endedMarch 31, 2006 were as follows:Function or status Location Type of assetAssets for golf links Tomakomai City, Hokkaido Golf course and buildings, etc.Idle assets Chuo-ku, Kobe City, etc. Land, etc.Impairment losses for the year ended March 31, 2006 consisted of the following:Thousands ofMillions of yen U.S. dollarsLand ........................................................................................................................... ¥ 618 $ 5,261Golf course ................................................................................................................. 1,086 9,245Buildings, etc. ............................................................................................................. 1,304 11,101................................................................................................................................... ¥3,008 $25,607Asset groups for which the Company and its subsidiaries recognized impairment losses for the year endedMarch 31, 2008 were as follows:Function or status Location Type of assetOperating property Sodegaura City, Chiba LandIdle assets Sodegaura City, Chiba Land, etc.Operating property Inami-cho, Kako-gun, Hyogo LandImpairment losses for the year ended March 31, 2008 consisted of the following:Thousands ofMillions of yen U.S. dollarsLand ........................................................................................................................... ¥2,277 $22,725Buildings, etc. ............................................................................................................. 486 4,850................................................................................................................................... ¥2,763 $27,57547