Integrated Report 2020

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2. Commitments and Contingent LiabilitiesThe Company and its consolidated subsidiaries had unused lines of credit for short-term financing aggregating ¥27,099 million (U.S.$249,007 thousand) and ¥26,192 million at March 31, 2020 and 2019, respectively.3. InventoriesMerchandise and finished goods, work in process, and raw materials and supplies as of March 31, 2020 and 2019 were as follows: Millions of yen Thousands ofU.S. dollars202020192020Merchandise and finished goods¥15,345 ¥15,027 $141,008Work in process14,97114,604137,571Raw materials and supplies10,11711,08592,961Total¥40,434¥40,717$371,5414. Notes Maturing as of the End of the Fiscal YearNotes maturing as of the end of the fiscal year are settled on the clearing date. In addition, accounts receivable and payable with due date that is the last day of the fiscal year are also settled on the clearing date. As the last day of the current fiscal year was a non-business day of financial institutions, the following amounts of receivables and payables maturing as of March 31, 2020 and 2019 were included in the ending balance. Millions of yen Thousands ofU.S. dollars202020192020Trade notes and accounts receivable¥―¥5,269$―Trade notes and accounts payable―8,902―5. Selling, General and Administrative ExpensesMajor items included in selling, general and administrative expenses for the years ended March 31, 2020 and 2019 were as follows: Millions of yen Thousands ofU.S. dollars202020192020Transportation and warehousing expenses¥ 5,328 ¥ 5,536$ 48,959 Provision for allowance for doubtful accounts27(9)251Salaries and allowances9,6699,54088,845Retirement benefit expenses5863365,393Provision for directors’ bonuses5970547Depreciation and amortization1,7791,21116,350Research and development expenses7,8608,31972,231Other17,68818,295162,531Total¥42,999 ¥43,300$395,1096. Research and Development ExpensesResearch and development expenses, all of which were included in selling, general and administrative expenses, for the years ended March 31, 2020 and 2019 were ¥7,860 million (U.S.$72,231 thousand) and ¥8,319 million, respectively.7. Gain on Sales of Noncurrent AssetsGain on sales of noncurrent assets was related to sales of land for the year ended March 31, 2019.8. Impairment LossThe Company recognized impairment loss on the following classes of assets for the year ended March 31, 2020:Millions of yen Thousands ofU.S. dollars2020Major useLocationCategoryImpairment Loss—Kentucky State, U.S.A.Goodwill¥545$5,013The Companies categorize goodwill into groups mainly based on each company in consolidated subsidiaries for the goodwill impairment testing.VDI, LLC recognized an impairment loss of ¥545 million for the goodwill as future operating results were expected to be lower than the business plan at the time of acquisition of VDI, LLC.The recoverable amount of the goodwill was measured at the value in use determined by future cash flows discounted at 19.0%.LINTEC Integrated Report 2020Financial Information80