Fujitsu 2010 Annual Report Download - page 123

For the year ended March 31, 2009, impairment losses related mainly to the LSI business. The Group recognized impairment losses of
¥49,944 million on advanced logic LSI-related assets (Mie Plant 300mm Fab No. 2 buildings and production machinery) due to the change in
their future planned use. Specifically, the loss was caused by a more cautious appraisal of the future return on assets due to a significant
decline in customer demand, and a change in cash-generating asset classification in the LSI business, which resulted from the business
model shift to outsourced production of 40nm generation advanced technology products.
Additionally, the Group recognized impairment losses of ¥8,979 million on assets used in the electronic components business, whose
profitability had significantly declined, and lease property and other businesses whose projected return had been revised downward.
As “Restructuring charges,” the Group recognized impairment losses of ¥16,269 million in relation to the HDD business, which will be
transferred to companies outside the Group.
Impairment losses stated above totaled ¥75,192 million.
The impairment loss consisted of ¥41,250 million for machinery and equipment, ¥18,256 million for buildings, ¥9,558 million for tools,
furniture and fixtures, ¥2,850 million for land, ¥2,215 million for construction in progress and ¥1,063 million for the other assets.
Loss on revaluation of inventories at the beginning of period
Loss on revaluation of inventories for the year ended March 31, 2008 consisted of write-downs on inventories booked at the beginning of
the period in conjunction with the adoption of “Accounting Standard for Measurement of Inventories” (Accounting Standards Board of Japan,
Statement No. 9 dated July 5, 2006).
There were two types of revaluation loss. One type was a loss of ¥16,235 million regarding write-downs of inventories for parts held for
maintenance and related services incurred due to changes in the method of expense recognition from one upon use or disposal to one over
the period for which maintenance and related services were provided. The other type was a loss of ¥8,810 million related to inventories
written down to net realizable value, and obsolescent inventories generated out of the ordinary course of business.
18. Supplementary Information to the Consolidated Statements of Cash Flows
For the year ended March 31, 2010
[Proceeds from acquisition of subsidiaries’ stock resulting in change in scope of consolidation]
Net proceeds consist of ¥42,912 million ($461,419 thousand) and ¥7,504 million ($80,688 thousand) from acquisitions of shares of Fujitsu
Technology Solutions (Holding) B.V. (FTS) and FDK Corporation, respectively.
The following breakdown provides details on the amount of assets and liabilities resulting from the acquisition of shares of FTS, as of the
date of its consolidation, along with the acquisition cost of the FTS shares, and the net proceeds generated from the FTS acquisition.
Yen
(millions)
U.S. Dollars
(thousands)
2010 2010
Current assets ¥ 276,694 $ 2,975,204
Non-current assets 79,047 849,968
Goodwill 62,468 671,699
Current liabilities (256,679) (2,759,989)
Long-term liabilities (101,797) (1,094,592)
Minority interests (193) (2,075)
Acquired net assets 59,540 640,215
Investment value using equity method 4,974 53,484
Share acquisition cost 54,566 586,731
Share acquisition cost (54,566) (586,731)
Expenses not recognized in current fiscal year 788 8,473
Expenses for share acquisition in current fiscal year (53,778) (578,258)
Cash and cash equivalents of FTS 96,690 1,039,677
Net proceeds from acquisition 42,912 461,419
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FUJITSU LIMITED Annual Report 2010
Notes to Consolidated
Financial Statements