Fujitsu 1998 Annual Report Download - page 43

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14. Supplementary information to the consolidated statements of income
16. Commitments and contingent liabilities
Yen U.S. dollars
(millions) (thousands)
1996 1997 1998 1 998
Foreign exchange gains (losses), net . . . . . . . . . . . . . . . . . . . ¥ 6,212 ¥ 22,524 ¥ (9,44 5 ) $ (71,55 3)
Loss on disposal of property, plant and equipment. . . . . . . . (9,824) (11,656) (12,866) (97,47 0)
Expenses for issuance and offering of securities . . . . . . . . . . (1,948) (1,264) (1,81 8 ) (13,773)
Loss on devaluation of marketable securities . . . . . . . . . . . . (1,290) (5,283) (1 3 ,200) (100 ,000)
Gain on sales of marketable securities . . . . . . . . . . . . . . . . . – – 14,593 11 0 ,553
Amortization of goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,010) (10,896) (33 ,909) (256,886)
Restructuring charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31,618) (4,964 ) ––
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,895 (6,550) (5,87 1 ) (44,47 7)
¥(40,583) ¥(18,089) ¥(6 2 ,516) $(473,606)
Restructuring charges related mainly to the reorganization of
manufacturing and office facilities a nd the disposal of assets through-
out the Group in order to streamline its business structure. The
amount of ¥ 4,964 million for the year ended March 3 1, 1997
Commitments outstanding at March 31, 1998 for purchases of
property, plant and equipment were approximately ¥ 20,636 mil-
lion ($156,333 thousand) in the aggregate.
Contingent liabilities for guarantees given in the ordinary course
of business and for loans to employees amounted to approximately
¥ 66,659 million ($504,992 thousand) at March 31, 1998.
17. Segment information
The following segment information is prepared in accordance with the regulations under the Securities and Exchange Law of Japan.
Research and development expenses charged to selling, gen-
eral and administrative expenses for the years ended March 31,
1996, 1997 and 1998 amounted to ¥ 346,389 million, ¥ 352,818
million and ¥ 3 87,129 million ($2 ,932 ,795 thousand), respectively.
Other income (expenses) – other, net for the years ended March
31, 1996, 1997 and 1998 consisted of the following:
15. Leases
related to the restructuring of FDK Corporation. The amount of
¥ 31,618 million for the year ended March 31, 1996 included an
exceptional charge incurred to facilitate the re-engineering of ICL.
At March 31, 1998 future minimum lease payments of the con-
solidated subsidiaries outside Japan amounted to ¥ 17,611 million
($133,416 thousand) for within one year, ¥ 60,457 million
($458,007 thousand) for over one year and within five years, and
¥ 35,279 million ($267,265 thousand) for over five years.
At March 31, 1998 future minimum lease payments of the
Company and its consolidated subsidiaries in Japan amounted to
¥ 2 1,265 m illion ($1 61 ,0 98 thousand) for within one year, ¥ 3 9,5 96
million ($299,969 thousand) for over one year and within five
years, and ¥ 15,356 million ($116,333 thousand) for over five
years. Total lease payments for the years ended March 31,1997
and 19 98 amouned to ¥ 21,993 million and ¥ 23,118 million
($175,136 thousand), respectively. The persentation of 1 996 in-
formation was not required by the regulations under the Securities
and Exchange Law of Japan.
Industry segm ent information
In the information technology industry, the Group operates in
one business segment. The Group, as a total supplier, supplies
products and services which satisfy customers’ needs by incorpo-
rating leading-edge technologies.
Geographic segment information
The following is a breakdown of net sales, operating income and
total assets at March 31, 1996, 1997 and 1998 by geographic
segment (presentation of 1996 and 1997 breakdown information
on overseas segments was not required).