Hitachi 2009 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2009 Hitachi 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 100

  • 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

8. GOODWILL AND OTHER INTANGIBLE ASSETS
Intangible assets other than goodwill acquired during the years ended March 31, 2009, 2008 and 2007 amounted to ¥168,911
million ($1,723,582 thousand), ¥167,397 million and ¥181,226 million, respectively, and related amortization expense during
the years ended March 31, 2009, 2008 and 2007 amounted to ¥178,164 million ($1,818,000 thousand), ¥146,136 million and
¥149,823 million, respectively.
The main component of intangible assets subject to amortization was capitalized software. Amortization of capitalized costs for
software to be sold, leased or otherwise marketed is charged to cost of sales. The amounts charged during the years ended
March 31, 2009, 2008 and 2007 were ¥85,841 million ($875,929 thousand), ¥49,180 million and ¥58,043 million, respectively.
Intangible assets other than goodwill included in other assets as of March 31, 2009 and 2008 are as follows:
Millions of yen
2009 2008
Gross carrying
amount
Accumulated
amortization
Net carrying
amount
Gross carrying
amount
Accumulated
amortization
Net carrying
amount
Amortized intangible assets:
Software . . . . . . . . . . . . . . . . . . . ¥ 659,097 ¥ 549,079 ¥110,018 ¥ 511,091 ¥402,858 ¥108,233
Software for internal use . . . . . . . 445,098 311,220 133,878 537,258 346,812 190,446
Patents . . . . . . . . . . . . . . . . . . . . 103,489 75,456 28,033 120,429 70,990 49,439
Other . . . . . . . . . . . . . . . . . . . . . . 132,926 92,834 40,092 120,168 83,951 36,217
¥1,340,610 ¥1,028,589 ¥312,021 ¥1,288,946 ¥904,611 ¥384,335
Indefinite-lived intangible assets . . . . ¥ 8,644 ¥ – ¥ 8,644 ¥ 8,428 ¥ – ¥ 8,428
Thousands of U.S. dollars
2009
Gross carrying
amount
Accumulated
amortization
Net carrying
amount
Amortized intangible assets:
Software . . . . . . . . . . . . . . . . . . . $ 6,725,480 $ 5,602,847 $1,122,633
Software for internal use . . . . . . . 4,541,816 3,175,714 1,366,102
Patents . . . . . . . . . . . . . . . . . . . . 1,056,010 769,959 286,051
Other . . . . . . . . . . . . . . . . . . . . . . 1,356,388 947,286 409,102
$13,679,694 $10,495,806 $3,183,888
Indefinite-lived intangible assets . . . . $ 88,204 $ – $ 88,204
The following table shows the estimated aggregate amortization expense of intangible assets for the next five years.
Years ending March 31 Millions of yen
Thousands of
U.S. dollars
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥93,628 $955,388
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,111 735,827
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,639 557,541
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,113 317,480
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,786 222,306
The changes in the carrying amount of goodwill, which is included in other assets, for the years ended March 31, 2009 and
2008 are as follows:
Millions of yen
Thousands of
U.S. dollars
2009 2008 2009
Balance at beginning of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥159,039 ¥148,431 $1,622,847
Acquired during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,859 26,154 90,398
Impairment loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24,560) (7,448) (250,612)
Translation adjustment and other . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,908) (8,098) (90,898)
Balance at end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥134,430 ¥159,039 $1,371,735
59
Hitachi, Ltd.
Annual Report 2009