Fujitsu 2013 Annual Report Download - page 123

For the year ended March 31, 2013
Restructuring charges
Restructuring charges of ¥90,308 million ($960,723 thousand) were recorded relating to structural reforms in the LSI device business.
These include ¥33,146 million ($352,617 thousand) in losses relating to the transfer of production facilities, ¥28,685 million ($305,160
thousand) in impairment losses and other losses for the standard logic LSI devices production line, and ¥28,477 million ($302,947
thousand) relating to personnel-related expenses attributed to implementation of an early retirement incentive plan. Losses relating to
the transfer of production facilities consist of two items. One is ¥20,895 million ($222,287 thousand) of guarantees, for a set period of
time, on a portion of the operational costs of the Iwate Plant and the LSI assembly and testing facilities that were transferred. The other
is ¥12,251 million ($130,330 thousand) of personnel-related expenses and impairment losses in accordance with the transfer of the LSI
assembly and testing facilities. Impairment losses and other losses of the standard logic LSI devices production line are mainly related to
200 mm lines of Mie and Fukushima regions, for which capacity utilization rates have been declining.
In addition, restructuring charges related to the business outside Japan in the amount of ¥20,074 million ($213,553 thousand) were
recorded mainly for personnel-related rationalization charges related to the European subsidiary Fujitsu Technology Solutions (Holding)
B.V. Other than the above, ¥5,839 million ($62,117 thousand) of restructuring charges was recorded mainly for the personnel-related
charges incurred for an early retirement incentive plan targeting managerial levels in Japan.
The restructuring charges include impairment losses of ¥28,266 million ($300,702 thousand) from mostly the LSI device business.
Impairment loss
Referred mainly to losses on the following asset groups;
Purpose: Production facilities for the LSI device business
Category: Buildings, machinery and equipment, land and other fixed assets
Location: Fukushima, Mie and Kagoshima prefectures, Japan
Purpose: Assets used in European business
Category: Goodwill and other intangible assets
Location: Germany and other countries
In principle, the Group’s business-use assets are grouped based on units that management uses to make decisions, and idle assets
are grouped on an individual asset basis.
The Group has continually promoted structural reforms of its LSI devices business, as the LSI devices business has been confronted
with an extraordinarily difficult operating environment, such as fast-deteriorating market conditions and an increasingly severe competi-
tive situation, resulting in the declining sales. The Group transferred the Iwate Plant to DENSO Corporation in October 2012, and also
transferred the LSI assembly and testing facilities to J-Devices Corporation in December 2012. In February 2013, the Group made deci-
sions to establish a new fabless company in system LSI business, in which capital participation from outside investors will be accepted,
and transfer the business to the new company. Furthermore, the Group decided to transfer 300 mm line of the Mie Plant to a new
foundry company.
In conjunction with transfers stated above, the Group reviewed the grouping of assets within LSI device business. As a result, the
Group recognized impairment losses on assets group of standard logic LSI devices production line, such as 200 mm lines in Mie and
Fukushima regions, and assets group of the LSI assembly and testing facilities. The losses of ¥28,123 million ($299,181 thousand) are
recorded as “Restructuring charges” and included in “Other, net” under “Other income (expenses)” in the consolidated income statement.
Impairment losses for the Iwate Plant were already recognized in the year ended March 31, 2012.
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FUJITSU LIMITED ANNUAL REPORT 2013
FACTS & FIGURES