Fujitsu 2010 Annual Report Download - page 133

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4. Amount of Goodwill; Reason for Recognition; Amortization Method and Period
Yen U.S. Dollars
(millions) (thousands)
Amount of goodwill: ¥2,914 $31,333
Reason for recognition: The acquisition cost exceeded the fair value of the net assets of the acquired company at the time of the
business combination, and the difference between these values is recognized as goodwill.
Amortization method, period:
Straight-line method over 5 years
5. Assets Acquired and Liabilities Assumed in the Business Combination
Current assets ¥29,943 $321,968
Non-current assets 18,432 198,193
Total assets: 48,375 520,161
Current liabilities 46,113 495,839
Long-term liabilities 14,078 151,376
Total liabilities 60,191 647,215
[Transactions under Common Control and others]
n Conversion of Consolidated Subsidiary into Wholly Owned Subsidiary of the Company Through a Share Exchange
1. Names and Business Description of the Combined Businesses; Legal Form of the Business Combination and the Name of the Business
Subsequent to the Combination; Overview of the Transaction Including Its Objectives
1) Names and Business Description of the Combined Businesses
Names of the combined businesses: Fujitsu Limited and consolidated subsidiary
Fujitsu Business Systems Ltd. (“FJB”)
Business description (Fujitsu Business Systems Ltd.): Comprehensive services including consultation, network integration, software
development, installation and maintenance
2) Legal Form of the Business Combination and the Name of the Business Subsequent to the Combination
Legal form of the business combination: Share exchange
Name of the business subsequent to the combination: No change in corporate name
3) Overview of the Transaction Including Its Objectives
To meet customers’ diversifying ICT needs in a timely fashion and strengthen the Technology Solutions business, including platforms
and ICT solutions, for medium-size businesses in Japan, the Company allotted treasury stock to shareholders of FJB in exchange for
common stock of FJB on August 1, 2009. As a result, FJB became a wholly owned subsidiary of the Company and the common stock
of FJB was delisted from the First Section, Tokyo Stock Exchange on July 28, 2009.
2. Summary of Accounting Procedure
As the share exchange falls under the category of transaction with minority shareholders based on “Transactions under common control
and others” described in Japanese accounting standards, the interest in the additional shares of the subsidiary acquired through the
transactions was deducted from minority interests, and the difference between that amount and the additional investment amount was
treated as goodwill.
3. Information Concerning the Additional Acquisition of Shares in the Subsidiary
1) Acquisition cost and breakdown
Yen U.S. Dollars
(millions) (thousands)
Acquisition cost: ¥21,464 $230,796
Value of Fujitsu shares: ¥21,449 million ($230,634 thousand); Direct acquisition costs: ¥15 million ($162 thousand); All shares used in
exchange were treasury stock
131
FUJITSU LIMITED Annual Report 2010
Notes to Consolidated
Financial Statements