Fujitsu 2012 Annual Report Download - page 119

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For the year ended March 31, 2012
Restructuring charges
Restructuring charges are in relation to the LSI device business, the car audio and navigation systems business and the services business
outside of Japan. In the LSI device business, as part of structural reorganization to optimize the manufacturing capabilities, the Group
reached an agreement to transfer ownership of its Iwate plant, one of the front-end manufacturing plants, to DENSO Corporation. As a
result of this agreement, the Group recorded a loss of ¥5,992 million ($73,073 thousand), including impairment losses on fixed assets
agreed to be transferred and expenses associated with transferring employees to DENSO Corporation. In the car audio and navigation
systems business, the Group is restructuring its manufacturing operations in order to strengthen cost competitiveness. As a result,
¥5,236 million ($63,854 thousand) was recorded, which includes provisions and charges for reassigning employees in Japan. In the
services business outside of Japan, ¥3,971 million ($48,427 thousand) was recorded on rationalization in Europe and North America.
The restructuring charges under the LSI device and the car audio and navigation systems businesses include impairment losses of
¥2,465 million ($30,061 thousand).
Loss on disaster
Referred mainly to fixed costs associated with temporary plant shutdowns due to aftershocks following the Great East Japan Earthquake
and customer-related factors.
Loss on changes in retirement benefit plan
Referred mainly to the costs related to changes from qualified retirement pension plans to lump—sum retirement plans within consoli-
dated subsidiaries in Japan.
Impairment loss
Referred mainly to losses on the following asset groups;
Purpose: Production facilities for the LSI device business
Category: Land
Location: Iwate Prefecture, Japan
Purpose: Production facilities for car audio and navigation systems business
Category: Machinery and other assets
Location: Tianjin, China, and other areas
In principle, the Group’s business-use assets are grouped according to managed business units, and idle assets are grouped on an
individual asset basis.
In the LSI device business, in order to optimize the manufacturing capabilities, the transfer of the Iwate plant, one of the front-end
manufacturing plants, to DENSO Corporation was agreed in the fiscal year ended March 31, 2012. The asset group of the Iwate plant,
scheduled to be transferred during the next fiscal year, was impaired by ¥1,300 million ($15,854 thousand) and the impairment loss is
included in “Restructuring charges” classified within “Other income (expenses)” on the income statement.
In the car audio and navigation systems business, the Group has shifted to outsourced production of car audio products due to a
decline in customer demand. As a result, the assets were impaired by ¥1,165 million ($14,207 thousand). The impairment loss is
included in “Restructuring charges” classified within “Other income (expenses)”.
117
FUJITSU LIMITED ANNUAL REPORT 2012
Facts & Figures