Impairment Loss | 3 Months Ended |
|---|---|
Sep. 30, 2011 | |
| Impairment Loss [Abstract] | |
| Impairment Loss |
Note 14 – Impairment Loss The Company periodically evaluates the carrying value of its assets whenever events or changes in circumstances indicate the carrying value of those assets may not be recoverable. The Company believes that increasing its core solar technology’s sunlight-to-electricity conversion efficiency is a strategic imperative. As such, the Company has adjusted its technology roadmap to speed commercialization of higher conversion efficiency products, reduce execution risk and improve manufacturability. To that end, the Company has ceased development and optimization of its HF technology to focus greater resources on the commercialization of its patented Nano-Crystalline™ technology. Modifications to existing capital equipment are underway at its Greenville, Michigan plant and the upgraded line is expected to begin pre-production and optimization in mid 2012. With the successful implementation of this new technology, the Company expects to improve its products’ sunlight-to-electricity conversion efficiency by up to 50%, thereby creating opportunity for higher value and better marketable solar products. Due to this adjustment in the technology roadmap, the Company concluded that the carrying values of certain of these assets may not be recoverable. Accordingly, the Company commenced with an impairment analysis of these assets included in its United Solar Ovonic business as of September 30, 2011. The Company’s assessment utilized quoted market prices and fair value appraisals. The impairment analysis is highly judgmental and involves the use of significant estimates and assumptions. These estimates and assumptions have a substantial impact on the amount of any impairment loss recorded. The estimates and assumptions used in the impairment analysis are consistent with the Company’s business plan; however, actual valuations in the future may differ significantly from those previously estimated. Based on the results of the analysis, the Company recorded an impairment loss of $34.3 million in carrying value of the Company’s property, plant and equipment. The Company recorded previous impairments to its long-lived assets, including goodwill and development loans of $228.8 million and $359.2 million for the fiscal years ended June 30, 2011 and June 30, 2010, respectively. |