Fujitsu 2010 Annual Report Download - page 130

Download and view the complete annual report

Please find page 130 of the 2010 Fujitsu annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

3. Estimation method for fair value per share of stock options
The per share fair value of the stock options of Fujitsu Frontech Limited, granted during the year ended March 31, 2009 was estimated as follows,
(1) Valuation method: Black-Scholes model
(2) Basic factors and estimation method:
Expected volatility of the share price*1 39.031%
Expected life of the option*2 4.628 years
Expected dividend*3 14 yen per share
Risk-free interest rate*4 0.958%
*1 The volatility is calculated based on the share price over a period of 4.628 years (December 26, 2003 through August 11, 2008).
*2 The expected life of the options is based on the expected service years of board member after allotment date, which is estimated from past periods of serving as board
members and the period between the date that a person to be vested becomes a board member and the allotment date.
*3 The actual dividend on common stock for the year ended March 31, 2008.
*4 Interest on government bond over the expected life of the options.
The per share fair value of the stock options of Fujitsu Frontech Limited, granted during the year ended March 31, 2010 was estimated
as follows,
(1) Valuation method: Black-Scholes model
(2) Basic factors and estimation method:
Expected volatility of the share price*1 38.233%
Expected life of the option*2 4.623 years
Expected dividend*3 16 yen per share
Risk-free interest rate*4 0.664%
*1 The volatility is calculated based on the share price over a period of 4.623 years (December 28, 2004 through August 13, 2009).
*2 The expected life of the options is based on the expected service years of board member after allotment date, which is estimated from past periods of serving as board
members and the period between the date that a person to be vested becomes a board member and the allotment date.
*3 The actual dividend on common stock for the year ended March 31, 2009.
*4 Interest on government bond over the expected life of the options.
4. Estimation method for number of vesting shares
The number is based on past results of forfeited stock options because of difficulties in a reasonable estimation for future forfeiture.
22. Business Combinations
For the year ended March 31, 2009
No significant transactions.
For the year ended March 31, 2010
[Acquisitions Accounted for by Applying the Purchase Method]
n Conversion of Fujitsu Technology Solutions (Holding) B. V. into a Consolidated Subsidiary of the Company
1. Name and Business Description of the Acquired Business; Principal Reasons for Carrying Out the Business Combination; Date of the
Business Combination; Legal Form of the Business Combination and the Name of the Business Subsequent to the Combination; Per-
centage of Voting Rights Held
1) Name and Business Description of the Acquired Business
Name of the acquired business: Fujitsu Siemens Computers (Holding) B.V.
Business description: Development, manufacture, sale and maintenance of information systems
128 FUJITSU LIMITED Annual Report 2010
Notes to Consolidated Financial Statements