Fujitsu 2008 Annual Report Download - page 120

U.S. Dollars
(thousands)
Years ended March 31
Technology
Solutions
Ubiquitous
Product
Solutions
Device
Solutions
Other
Operations
Elimination &
Corporate
Consolidated
2008
Sales
Unaffiliated customers $31,589,840 $10,565,200 $7,365,270 $3,788,340 $ — $53,308,650
Intersegment 1,132,730 1,324,350 602,340 1,479,730 (4,539,150) —
Total sales 32,722,570 11,889,550 7,967,610 5,268,070 (4,539,150) 53,308,650
Operating costs and expenses 30,920,680 11,363,740 7,784,900 5,125,370 (3,935,930) 51,258,760
Operating income (loss) 1,801,890 525,810 182,710 142,700 (603,220) 2,049,890
Total assets 17,597,000 3,525,520 6,980,840 4,167,840 5,948,430 38,219,630
Depreciation 1,010,500 251,490 964,610 121,440 223,230 2,571,270
Impairment loss 1,700 — 185,860 — — 187,560
Capital expenditure
(including intangible assets) 1,241,290 303,040 1,145,680 172,390 259,930 3,122,330
1. The business segments are classified based on similarity of products and services, and selling methods, etc.
2. The principal products and services of business segments are as follows:
(1) Technology Solutions ................................Servers (mainframes, UNIX servers, mission-critical IA servers, PC servers), storage systems, software (OS, middleware), network man-
agement systems, optical transmission systems, mobile phone base stations, consulting, systems integration services (system con-
struction), outsourcing services (one-stop information system operational management), network services (network environments
and networking-related services for information systems), system support (information system and network maintenance and
monitoring services), information system and network construction, custom terminal installation (ATMs, POS systems, etc.)
(2) Ubiquitous Product Solutions ..............Personal computers, mobile phones, HDD (hard disk drives), optical transceiver modules
(3) Device Solutions...........................................LSI (logic LSI devices), electronic components (semiconductor packages, SAW devices, etc.), mechanical components (relays,
connectors, etc.)
(4) Other Operations .........................................Audio/navigation equipment, automotive electronic devices, etc.
3. Unallocated operating costs and expenses included in “Elimination & Corporate” for the years ended March 31, 2006, 2007 and 2008 were ¥41,461 million, ¥54,965 million
and ¥59,541 million ($595,410 thousand), respectively. Most of these were strategic expenses such as basic research and development expenses and Group management
shared expenses incurred by the Company.
4. Corporate assets included in “Elimination & Corporate” at March 31, 2006, 2007 and 2008 amounted to ¥932,190 million, ¥940,397 million and ¥952,394 million ($9,523,940
thousand), respectively. The assets principally consisted of working capital (cash and cash equivalents and short-term investments), long-term investments and others.
5. Change in method of allocating operating expenses
Expenses for the Company’s general administrative divisions were previously accounted for primarily as unallocated operating expenses under “Elimination & Corporate.”
For the year ended March 31, 2007, the Group has changed the method of allocating operating expenses, assessing to each Business Unit (the “BU”) on a services-ren-
dered basis expenses that would be incurred if each BU were to operate independently.
The Group has been reforming its business performance management system to better reflect the position of various BUs as independent operating entities under
the consolidated framework and to delineate the responsibility of each to earn a return on investment. For the year ended March 31, 2007, further development of the
business performance management system allowed the Group to better identify and categorize the expenses by functional areas. The Group, therefore, changed the
method to allocating expenses to each BU on a service-rendered basis in line with those incurred if each BU were to operate independently to more clearly reflect the
actual business situation.
Strategic expenses to be recovered by the Group as a whole, such as basic research, are recognized in “Elimination & Corporate,” the same as before.
In addition, the method of allocating expenses attributable to the sales activities of sales and system engineering units was changed from sales-based allocation to a
services-rendered approach for the same reasons stated above.
Segment information for the year ended March 31, 2006 has been restated.
6. Accounting principles and practices were changed for the year ended March 31, 2008 as stated in Note 1. (d) Revenue recognition (g) Inventories (h) Property, plant and
equipment and depreciation and (l) Retirement benefits. As a result of these changes, for the year ended March 31, 2008, sales in “Technology Solutions”, “Ubiquitous
Product Solutions”, “Device Solutions” and “Other Operations” decreased by ¥821 million ($8,210 thousand), ¥3,151 million ($31,510 thousand), ¥2,741 million ($27,410
thousand) and ¥213 million ($2,130 thousand), respectively and sales in “Elimination & Corporate” increased by ¥1,173 million ($11,730 thousand) and operating income in
“Technology Solutions”, “Ubiquitous Product Solutions” and “Others Operations” decreased by ¥8,117 million ($81,170 thousand), ¥1,718 million ($17,180 thousand), and
¥1,708 million ($17,080 thousand), respectively and operating income in “Device Solutions” and “Elimination & Corporate” increased by ¥10,327 million ($103,270 thousand)
and ¥684 million ($6,840 thousand), respectively.
Segment information prior to and for the year ended March 31, 2007 has not been restated.
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ANNUAL REPORT 2008FUJITSU LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS